Infrequent touchpoints

Today's consumers are more selective than ever before when it comes to choosing which brands they adopt. So, it's no surprise that we're seeing a rise in businesses approaching us with questions like this.

This query has become one of the biggest issues for brands who are restricted in how often they get in touch with their customers because the product or service they offer makes contact quite rare.

Let's look at the utility sector. Most people consider these purchases an essential commodity. They're often made annually, meaning chances for one-to-one contact are few and far between. In fact, consumers are thought to give utility companies just ten minutes of their time per year on average. That's hardly any time at all. So these brands need to look closer into how they can understand their customers' values and preferences to become more prominent in their daily lives.

What's at the root of solving this problem? Using customer engagement data to inform your strategies. And since the brands in question don't have many touchpoints to get this data, they've got to seek new and innovative ways of chatting and engaging with their audiences.

We've found that the most effective way of doing this is by offering relevant rewards that actually add value to their lives through entertaining experiences. Our research into customer loyalty revealed that being surprised with rewards is the favoured form of brand engagement (70%).

Think rewards like cinema tickets, restaurant discounts or tons of other lifestyle experiences and activities – earned for staying loyal to your brand. A digital-led reward experience is so important. It creates multiple touchpoints to collect priceless engagement data that lets you learn more about your customers' lifestyle habits, and it also boosts your brand's image as customers will constantly be reminded of your brand while saving money on the go.

This data allows brands to pinpoint trends and patterns to tweak their services and communications to guarantee their future rewards are more personalised and focused. By doing this, brands can target customers with relevant content that adds value in the right place at the right time, growing trust and brand loyalty. 

Interacting and engaging with customers in this way also stops a common pitfall that far too many brands fall victim to – competing with one another on price alone in a constant race to the bottom, often leading to the quality of product or service suffering as a result.

Our latest research suggests this is the case – revealing that 57% of consumers had switched providers in the past twelve months, with a staggering 80% saying that price had influenced a decision to leave their old provider.

Of course, it's important to remain competitive on price, but competing on this alone can be risky. Not only does it restrict margins, but it also invites and encourages consumers to keep switching providers time and time again until brands lose sight of the value of a loyal customer.

In contrast, regularly engaging with your customers to show off the experiences and rewards you offer that suit their lifestyles – as well as highlighting the money you've saved them – solidifies just how valuable interacting with your brand is.

This squashes concerns around sustained engagement and, if done well, will help you understand your customers' preferences and create a lasting relationship that adds value in a way that'll make them want to stick around.

So, to sum everything up, going beyond your core business offering to sweeten your customers' lifestyles is the golden ticket to ensuring they stick around. I hope that helps!

If you have a burning question for The Loyalty Line, no matter how big or small, fill out the form here and one of our team will be in touch.