There are four key reasons why direct marketing has become the most effective tool for building brand loyalty, particularly in the United States, according to direct sales and marketing firm The Plato Group.
Decades ago, customers would forge a bond with a brand and would be loyal to existing and new products, proving to be a walking talking billboard for the brand. Sadly amongst the American consumers, The Plato Group believes this no longer seems to be the case.
Brand loyalty has been falling as customers seek out competitive offers. The emphasis is now placed on getting a bargain regardless of the brand. Consequently, the company has outlined why it believes direct marketing encourages brand loyalty:
- Delivers a memorable experience every time
Delivering a service that is expected is great, but going beyond a customer's expectation is the first step in building brand loyalty. By offering a face-to-face service using direct marketing allows customers to identify and personalise a brand.
- Rewards loyalty
By offering existing customers rewards for remaining a loyal customer, and additional rewards on a customer's birthday allows the brand to make the customer feel valued as much as new customers.
- Asking customers what they think and act on it
Customers are a firm's best source of feedback about their products and services. Surveying customers is one thing, but actually implementing their feedback into the business, and letting that customer know that they have done so will help foster customer loyalty. Direct marketing allows the feedback to be generated instantly and can be used against the very next customer.
- Turning the negative to the positive
Some 49% of consumers state that they are more likely to visit a business after reading a positive online review, and 69% trust online reviews as much as personal recommendations. Customers have a range of options to voice their opinion of businesses and companies.