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How to Enhance Customer Loyalty Programs with Proximity Marketing?

  • Posted on April 8, 2024 by Robert
  • Reading time about 6 minutes
Proximity Marketing

Making your customers stay for the long run is one of the most difficult tasks that every business is dealing with. With non-stop competition for customer trust and loyalty, businesses across several industries are continuously looking for innovative ways to enhance the customer journey and keep it relevant.

Gone are the days when brands had to do with some discounts and vouchers to make their customers stick with them for life. A report by Salesforce shows that 91% of consumers are more likely to purchase after a positive experience, and 71% buy based on experience quality.

In this blog, we will find out how your brand can stay relevant and fulfill customer expectations with a customer loyalty software solution aligned with proximity marketing that will not only make your program promote better but also boost customer experience in the long run.

Understanding Basics of Proximity Marketing

Proximity marketing can be defined as a hyperlocal marketing method with the localized wireless distribution of promotional content in a particular geographical area. Beacons act as the prime tools for proximity marketing. They are Bluetooth-based hardware devices that transmit signals to mobile phones, tablets, and other electronic devices in nearby locations. Other local technologies that can be used are Wi-Fi and QR codes that help to streamline your proximity marketing efforts.

Some of the other ways in which proximity marketing can help your business are-

· Seamless Geotargeting

· Boost App Engagement

· Increase Customer Retention

· Achieve Immediate Conversions

· Offer a Personalized Experience

· Gain a Competitive Edge

How Can Proximity Marketing Enhance Your Loyalty Program?

After understanding what proximity marketing is, we will now learn how proximity marketing can enhance your enterprise loyalty management program with data enrichment and better targeting strategies.

· Laser-Focused Targeting

One of the best things about using proximity marketing is that it enables businesses to precisely target their potential customers. With the help of proximity marketing which works in a defined geographical area, businesses can target potential customers whenever they are close to their stores.

This means they can narrow down their marketing campaigns and make them more targeted towards their customers. On the other hand, customers will be more attracted or feel valuable as they will be receiving contextualised communication when they are nearby stores rather than receiving emails and messages that are sent to thousands of customers who may not be in the position to take any action.

As we can see proximity marketing can be a great way to engage customers in different locations like events, hospitals, metro stations, museums, public transport, restaurants, airports, etc. By making use of location-based technologies, businesses can personalize communications. For instance, let’s consider a retail store owner who is offering a loyalty program through its mobile app. When the customers who have signed up for the same loyalty program walk by the store, they can send them customized discounts and offers, enabling brands to leverage impulse buying and generate instant sales.

· Enhance Customer Experience

We all know the significance of a positive customer experience, which is one of the important cornerstones of a successful loyalty program. If a customer loyalty program doesn’t offer a seamless customer experience, they will receive negligible engagement leading to the failure of the program in the long run. One way to boost in-store customer experience and engagement is through the help of QR codes.

All you need to do is make use of a QR code generator to create a coupon QR code and link it to the discount for your loyalty program members. To target customers, put up the code inside your store allowing your loyalty program members to scan the code using the business’s mobile app to get the benefit of an instant discount during purchase.

Apart from that, QR codes can be used in multiple ways such as linking the code to the loyalty program page on the website. This will enable in-store customers to scan the code, visit the website and sign up for the loyalty program instantly to unlock benefits, thereby increasing customer engagement as well as experience.

· Get In-Depth Customer Data

We all know how important it is for brands to have more information about their customers, as this data helps to streamline marketing efforts. Making use of geolocation marketing enables brands to unlock critical insights into their customers, helping them better understand their customers’ behavior and decision-making process. Take advantage of this customer data to deliver a more personalized experience to your loyalty program members.

Additionally, brands can also expand their knowledge about their customer’s behavior and habits. By using location-based techniques like beacons, it is easy to figure out how often customers visit a location and for how long they stay there. Based on the information collected, brands can promote their loyalty programs and highlight their unique benefits in a way that customers will appreciate.

For instance, the global hotel chain, Marriott International has leveraged beacons into its loyalty programs to boost customer experience. As the hotel deployed beacons in various areas in their hotels, the beacons helped in transmitting in-hotel discounts and offers to loyalty program members through the hotel app.

· Provide Time-Sensitive Deals

Another use of beacon-based proximity marketing is that it delivers time-sensitive offers and discounts to loyalty program members. If you are running a spa and salon business, you can make use of proximity marketing with time-limited offers to send promotional messages to members staying nearby by highlighting the deals and encouraging them to grab offers while they last.

The best thing about proximity marketing is that it is highly accurate, which means the chances of consumers overlooking the notifications are quite low. Not just that, proximity marketing enables brands to extract valuable customer insights, which helps them deliver personalized deals and offers later.

Final Takeaways

As we can see, building a customized loyalty program is essential to boost customer retention and long-term brand love. However, it is essential to make sure that your customers participate in your loyalty program and remain engaged. With the help of strategic implementation of location-based marketing techniques and technology like beacons, QR codes, and more, businesses can promote their loyalty programs and boost customer experiences for enhanced loyalty.

If you are planning to build a customer loyalty program based on proximity marketing or enhance your existing program with better data enrichment and targeting, Novus is a reliable Loyalty Solution Provider that can help you achieve your KPIs and boost customer engagement. Book a demo with our experts to see how Novus can help your business unlock new value and gain a competitive edge.

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