Tom Treanor is the CMO for Snipp Interactive, a leading Consumer Promotions, Shopper Marketing, Receipt Scan and Loyalty solutions provider.
In my last article, I talked about how to get consumers excited about buying your company’s consumer packaged goods with dollar creation strategies. These strategies make consumers feel like they’re paying less for a product, but that approach doesn’t work for every consumer.
Today, I want to share two more strategies—perceived value and long-term relationship-building strategies—that can keep customers buying your brand even in a high-inflation environment where money seems tighter than ever.
Perceived Value
While dollar creation strategies make consumers feel like they’re paying less for a product, perceived value strategies make consumers feel like your product is more valuable. In a cost-conscious economy, perceived value strategies can help persuade consumers to pull out their wallets to take advantage of the increased value that you’re offering (often for a limited time).
Examples of perceived value strategies include:
• Sweepstakes: Enabling sweepstakes entries with the purchase of your product excites consumers, allows them to dream a little and adds value to your offering, increasing the value of your product without having to reduce price. Brands love sweepstakes because consumers opt into communications from the brand, allowing you to market to them directly, and the data you can gather is a goldmine of information for marketing and list segmentation.
• Contests: Unlike sweepstakes, contests aren’t random and require some sort of skill or action, such as submitting a picture of your product in action. Contests were big back in the ’30s, ’40s and ’50s, and they’re still popular today to build brand buzz and engagement. Want to see some examples of how contests work? Check out the Julianne Moore movie The Prize Winner of Defiance, Ohio. Similar to sweepstakes, the chance to win a prize increases the perceived value of your offering.
• Instant win games: Everybody loves instant gratification. In the old days, this meant finding out you won a prize by looking under a bottle cap. Today, instant win games are more likely to be held on a brand website or app. Customers input their information, upload a picture of their receipt from purchase and get a chance to win a prize by spinning a wheel or playing a game right then. Instant wins games are great for younger audiences.
• Layered promotions: Combining dollar creation and perceived value creation strategies, such as giving a cash-back rebate and running a sweepstakes at the same time, helps hesitant customers take action with double the deal that is just too good to pass up. Another example of a layered promotion is an instant win game combined with a sweepstakes entry, making this a very compelling offer.
Long-Term Relationship-Building
Another strategy is to focus on is long term relationship-building. To enjoy the ROI of enduring customer loyalty, first, you have to build a relationship with your customers. Brand-to-consumer relationships are all built on communication and providing value. Keep in touch with your customers with marketing, emails and promotions that situate your brand front and center in their minds. Make sure to provide rewards that they truly value and offers or experiences that those outside of your loyalty program don’t have access to. You want to show your long-term customers that they are valued and appreciated.
If you can, know their birthdays and send them a gift or freebie on their special day. Did their city just experience an unprecedented weather event? Have your marketing team send a tailored email to consumers in that area with a brand-specific deal that ties into whatever they’re going through.
Personalized, segmented marketing and omnichannel communication that seeks to build relationships (not just sell stuff) can help you create brand loyalty that lasts.
In addition to consistent communications, loyalty programs can also help build long-term relationships because they reward customers for interacting with your brand. Positive reinforcement such as punch cards, loyalty discounts, exclusive promotions and rewards programs can encourage customers to buy from your brand repeatedly and with greater frequency, further cementing the relationship through repetition and familiarity.
Promo Pitfalls
No matter how great your promotions, they won’t work unless you promote them. Use every resource at your disposal to spread the word about your current and future promotions, but beware.
Some bargain shoppers will buy because they got a good deal but never touch your brand again. These are not your ideal customers. Avoid capturing too many bargain shoppers with your promotions by advertising primarily on store apps, your own app, social media and bank apps. Deal apps tend to be a hangout for bargain shoppers, so advertise on those sparingly.
Customers Still Want To Buy
We may all be feeling the inflationary pinch in our wallets, but customers still want (and need) to buy. With a combination of dollar creation, perceived value and long-term relationship strategies, you can help carve out a bigger piece of the market share for your brand and build loyalty that pays dividends for decades to come.
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