In an era of economic uncertainty and fierce competition for consumer spend, customer loyalty has become a crucial battleground for brands.
One way to consistently win customer spend is through a robust loyalty programme, with recent data from NIQ (NielsenIQ) Consumer Outlook Report showing that 59% of South Africans prioritise shopping where they can use loyalty and rewards programmes.
On average, South African middle-class consumers are signed up to nine loyalty programmes, and these initiatives have become powerful tools for retailers to influence spending behaviour and forge emotional connections with consumers.
Nicola Ashe, strategic business director at The Digital Media Collective (TDMC), has first-hand knowledge of the power of brand loyalty and recently worked with her team to implement a loyalty programme for a key client, FUTURELIFE. This isn’t the first innovative business strategy TDMC has implemented for the brand.
Award-winning strategy
Last year, TDMC won Gold at SA’s prestigious digital media awards, The MMA Smarties, for their work launching an e-commerce store for FUTURELIFE, helping to bring customers closer to the functional food brand.
“The online retail space is highly competitive with numerous brands vying for the same customers,” explains Nicola. “It made sense for our next step to be implementing a loyalty programme for FUTURELIFE, as we knew it would add impetus to ensure a steady stream of repeat business amidst this competition.
“Comparison shopping is fierce and online shoppers can easily compare products and prices online and switch brands with just a few clicks. Maintaining loyalty reduces the likelihood of customers moving to competitors, plus it can be bolstered by offering consistent value, making it less likely for customers to leave in search of better deals.”
In addition, the cost of acquiring a new customer is significantly higher than retaining an existing one. As she points out, “Loyal customers not only make repeat purchases, but often become brand advocates, bringing in new customers through word-of-mouth.”
Here Ashe shares her insights and the six key strategies TDMC utilised to build customer loyalty for FUTURELIFE®, including the implementation of their new FUTURETRIBE Loyalty Programme.
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Having an omni-channel presence
“When it comes to building a loyal customer base, the crux is to meet customers wherever they are, whether on social media, searching the web, or in physical stores,” says Ashe.
The key is to ensure that a consistent and convenient shopping experience is provided to increase both customer satisfaction and loyalty.
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Offering value
Brands must not underestimate the value of value, particularly in this economic climate. “By providing exclusive offers, bundle deals and access to products and benefits not available elsewhere to customers they feel they are getting more for their money, which encourages repeat purchases and fosters loyalty,” says Ashe.
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Ensuring a seamless customer journey
Core to building customer loyalty online is ensuring a frictionless customer journey from the minute they land on your page right through to check out. “Creating a smooth and enjoyable customer experience is imperative if you want repeat customers.
By focusing on user experience (UX), easy navigation, multiple payment options and efficient customer service, we ensure customers leave feeling satisfied and are encouraged to return,” says Ashe.
This is also why TDMC chose to use the Smile app for the loyalty programme. “We spent a lot of time trialling different plug-ins and selected the Smile.io because it integrates into the Shopify platform, is simple to use, easy to customise and intuitive for the end user,” says Ashe.
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Implementing an effective loyalty programme
Just like consumers around the world, most South African customers prefer to shop where they know they will be rewarded, which is why it made sense for FUTURELIFE® to implement its own loyalty programme to bolster its online and instore offerings.
“The loyalty programme enables us to reward customers for repeat purchases through point accumulation, special offers and exclusive access to new products. It provides an incentive for them to stay loyal to the brand and makes them feel valued,” says Ashe.
Just a few weeks after launch, Ashe says the sign-up numbers have been impressive. The loyalty programme is points-based, with members earning FUTUREpoints to redeem as vouchers, as well as for behaviour – for example liking and following social media platforms, or leaving a review for products.
“The programme builds loyalty and encourages increased engagement with the brand,” explains Ashe. “The Smile app makes it all very simple – customers know exactly how to earn points and how to redeem them.”
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Marketing through user-generated content
TDMC has helped connect the brand with new customers through relatable and informative user-generated content (UGC). Based on our learnings around the power of UGC, we have now implemented a robust strategy, actively using every day customers to share their own authentic brand moments, says Ashe.
“This relatable content from real users builds trust and community, fostering loyalty.”
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Utilising data insights
“At TDMC we know the value of data insights and actively leverage data analytics to understand customer behaviour, preferences and trends, which allows for personalised marketing that makes customers feel understood and valued,” says Ashe.
Utilising this data to create personalised deals for programme members will be an important next step for FUTURELIFE to implement and offer innovative rewards. “In the future we aim to build in a high level of personalisation to the loyalty offerings so that they match the customer’s lifestyle and life stage,” says Ashe.
TDMC’s strategic approach to building customer loyalty for FUTURELIFE demonstrates the power of combining digital innovation with customer-centric practices. By implementing these strategies, TDMC has positioned the brand to not only retain existing customers but also attract new ones in a highly competitive market.
