Loyalty marketing is a concept in which a company tries to retain its existing customers. Product marketing, branding, loyalty marketing are all part of customer retention proposition. The concept of loyalty marketing has been around since a number of years and in the recent past a concept called “customer advocacy market” has been combined with the concept of loyalty marketing.
The terms of interaction of customers with companies have changed with loyalty marketing and what has changed is also the way in which the customers spend. The increase in income of customers is the primary cause for the evolution of loyalty marketing. The idea of loyalty marketing revolves around the training of employees and improving the quality of product to ensure customer satisfaction. Customer satisfaction leads to customer loyalty.
There is a rapid expansion in frequent-flyer programs and it is due to the fact that loyalty marketing basically depends upon customer loyalty and relies on the earned loyalty to attract new customers to businesses. Incentive benefits should be introduced that strikes the right chord between increasing the benefits for new customers and keeping customers from moving from new plans. Some of the recent loyalty marketing programs rely on viral marketing techniques to fetch desired results.