From the advent of social media, users have shared their favorite findings; now, it only stands to reason that we’re witnessing the rise of the consumer/influencer hybrid. The power of influence – previously synonymous with KOLs (key opinion leaders) like celebrities, public personalities, media and high profile influencers – is becoming more democratized, making room for KOCs (key opinion consumers). In the race to capture consumer attention, these KOCs are becoming powerful brand voices and it’s a phenomenon that’s only just taking off.
In this competitive market, brands are actively boosting their creativity by developing engaging, effective loyalty programs to retain their hard-earned customers. So – why not tap these existing customers and transform them into full-fledged ambassadors?
Here are bicom’s 5 reasons to invest in a digital loyalty program:
1. Motivated Superfans
We all have a friend, colleague or family member who we look to for their trusted recommendations. These superfans aren’t shy about sharing their favorite brands with their entourage – so let’s celebrate them! A study by bicom, in partnership with the survey firm Callosum, showed that peer recommendations have 10x more impact on purchase intent.
2.The Opportunity at Hand
A recent BDC article confirmed that retaining an existing customer costs up to five times less than acquiring a new one. It’s therefore exponentially easier to convince a repeat customer to buy again. Generally, 20% of customers bring in 80% of a company’s revenue; all the more reason to reward them!
3. Authentic Content
Social media users often organically create content, dubbed user generated content (UGC). Authentic and often high quality, it’s a readily accessible asset and a no-brainer for brands to capitalize on and repost. In so, a verified customer lend a brand their credibility and endorses the product/service for future potential buyers.
4. Conversion and Increased Sales
In addition to increasing brand loyalty, the relationships created through a loyalty program encourage conversion. According to a recent article published on Forbes.com, 78% of consumers say they’re more likely to buy from a brand that has a loyalty program.
5. An Engaged Community
In an era where consumers are solicited from all sides, it’s essential to develop relationships beyond the preliminary transaction. Loyalty programs not only offer monetary benefits to customers, but they create an emotional connection between brands and shoppers. When fostered, this relationship can be reflected in consumers’ activity and engagement on brands’ social networks.
About bnation Powered by Spitche
The “neo-loyalty” platform, bnation x Spitche, is a loyalty program digitally energized by the power of influencer marketing. Existing consumers become nano-influencers and have the opportunity to not only promote brands on their personal social networks, while simultaneously reaping rewards for their engagement, ultimately harnessing consumers’ inherent power and strengthening the brand/consumer relationship.
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