Digital rewards increase engagement & loyalty

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By: Wise Marketer Staff |

Posted on April 14, 2011

Digital rewards increase engagement & loyalty

An important part of making an advertising campaign successful is being different, and this is something that ad agencies are good at. One growing trend that has caught the attention of those seeking differentiation in the eyes of the consumer is the use of downloadable digital content to build brand loyalty and engagement, according to a report by The First Club.

The company's own research has shown that digital rewards for the 'digitized consumer' are increasing as marketers shift their budgets from traditional advertising and promotions to online, digital, and interactive 'new media' channels. Another recent study predicted that digital revenues will grow rapidly, reaching an estimated US$20 billion in 2015.

"It's easy to see that the digital channel will be a very important one for brands throughout 2011 and beyond. But by implementing a digital rewards programme alongside a digital ad campaign, agencies can create more value for their clients' customers, and therefore, more value for their clients," explained Jill Goldworn, co-founder and president for The First Club. "In fact, 48% of consumers spend more with a company whose loyalty programme offers digital content that is relevant to them personally,whether that be downloadable music, movies, books, games, software or other information."

Digital content can be used to reward loyalty throughout the selling process, right through from supply chain partners to end users, as well as to drive sales promotions and incentive campaigns. Agencies can also collect consumer data for up-selling and cross-selling purposes, and then use that data as an efficient way to track consumer response to each digital campaign.

At the same time, digital rewards offer endless promotional opportunities through both social media and other online distribution channels. And, because the channel is digital, unique up-selling and cross-selling opportunities can be implemented in minutes rather than days or weeks, and the market's reaction to changes and market trends can also be measured in real time.

The First Club asserts that instant digital content provides brands with a very cost-effective solution to reward their loyal customers. While offering downloadable rewards such as music, games, software, and books, the first club also customizes programmes for both ad agencies and client organisations. These programmes offer controllable message content and instant measurability and CRM functionality.

A white paper detailing the growing trend of digital rewards, entitled 'Loyalty: Looking Forward: The State of the Loyalty Industry and its Digitized, Instant Future', has been made available for free download from The First Club's web site - click here (free registration required).

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