How To Build A Successful Customer Loyalty Program for Your FMCG Brand
The FMCG industry is highly competitive in itself, and this is further complicated by the fact that companies cannot easily communicate face-to-face with their consumers. In fact, there are more than 40,000 items from different FMCG brands in an average supermarket. More than 40 percent of consumers also say they shop at multiple supermarkets. So, FMCG companies can’t just rely on supermarkets to carry their products to increase customer loyalty.
FMCG brands have always looked for ways to engage directly with their customers, but the reality has been that without the point-of-sale systems (POS) their ability to build direct relationships has been very limited. The lack of direct customer relationships has made FMCGs dependent on retailers to reach their customers and to obtain specific data and information about their customers’ consumption patterns. It also makes it almost impossible to build cumulative customer value over time to increase customer loyalty, which is necessary to maximise the customer’s lifetime value.
Without direct access to their customers, FMCGs face higher marketing costs. To sell their products in an ever-increasing competition for consumer attention, FMCG brands need to invest heavily in advertising. So, how FMCG companies can thrive in this competition and cut through the noises?
There are some obvious benefits to implementing a customer loyalty program that most marketers are already aware of:
- Customer retention
- More frequent purchases
- Increased referrals
Let’s see some other key benefits of implementing a customer loyalty program for FMCG brands.
1. Highly cost-effective targeted marketing
Since one of the biggest challenges for FMCGs is the inability to own customers and direct interaction channels, resulting in higher marketing costs, a well-executed customer loyalty program offers a solution here. With a loyalty program, FMCG brands can communicate their customers directly without retailers and media intervening. This leads to highly cost-effective, targeted marketing with higher return on marketing investment as FMCG brands can interact directly with their customers.
2. Build a more comprehensive real-time customer database
It is very important for brands to provide relevant value in exchange for their member’s loyalty, commitment and time. FMCG brands not only should reward and incentivise for making transactions but also for engaging in other activities like referring a friend to their brand, or participating in other activities like social media share, giving feedback or in gamification. This will bring cumulative value to customers over time, which in return will not only increase the sales but also increase customer life time value.
3. Reward and incentivise for all customer engagement activities
Setting up the best loyalty program for your hotel should not be a daunting task as there are many loyalty solution providers to set up your program easily. Just that it is important to understand your needs first and set your strategies.
4. Increase long-term brand loyalty
An FMCG Loyalty Program brings cumulative and highly relevant value to its customers, increases long-term brand loyalty and life time value and cost-effectively protects FMCG brands from intensifying local and global competition.
While it is easier for FMCG brands to focus on acquiring new customers through advertising, if brands do not take steps to build customer loyalty, they may be missing out on a significant source of revenue and sales. Take advantage of the new technologies in loyalty platforms to bridge the gap of direct communication and increase your sales.
Poket provides all the key features to engage, reward and build long-term customer loyalty that increases the bottom line and lifetime value of FMCG brands. From a comprehensive loyalty program platform to automated marketing campaigns, Poket offers a powerful membership program platform to stand out amongst your competitors.
What are your challenges as an FMCG brand? Contact us to learn more on how Poket can help your business.
