Formally put, precision marketing is, using highly evolved data bases of customers to reach the target audience and ensure that they spend towards the brand’s service or product. It is supported with substantially increased spending levels to understand and forecast consumer behavioral trends. Companies are identifying micro-segments of customers, developing specific products for these segments, and using the most appropriate marketing communication and a multitude of channels (brick-and-mortar retail stores, the Internet, catalogues, telemarketing, door-to-door selling, etc.) to reach out to these micro-segments.
The tools that are required to achieve such precision marketing strategies are aplenty. Companies are adopting various methods to identify the accurate micro-segments of consumers and consequently woo them. In India specifically, one highly underestimated and understated tool of precision marketing is the loyalty programme. Since loyalty programmes are at such a nascent stage in India, their value in precision marketing has not been realised yet as opposed to the West.
In India, loyalty programmes have been traditionally single point programmes pertaining to an entity or a company. Restricted to metros, the concept of loyalty is still at its budding stage in the country, and to create awareness of the benefits of a good loyalty programme, is the need of the hour.
Indian brands will soon come to realise the immense benefits that a loyalty programme has to offer to their brand. Simply put, a loyalty card holder is none other than a consumer in himself. Once he obtains the loyalty card, his spending habits, preferences, cycles etc. all of them get automatically mapped by the loyalty programme provider. It is literally like an investment in a market research firm made easier. Loyalty programmes can attain over a short span of time, what market research firms may only hope for. They can provide exact data coupled with precise analysis as opposed to guesstimates about that particular consumer. Their records within a short span of time can amount to exact information on a set of like-minded consumers and can thus identify several consumer groups at one go.
If at this point, a brand enters, it achieves only benefits. It has not only a ready and accurate consumer base to work with for its existing product, but also has accurate data and evidence of consumer trends of various sets of consumers that may help them in developing better services and products in the future.
India Inc is booming and industries are growing by leaps and bounds. We are no longer a country that is far behind in technology or strategy. There are thousands of Indian brands that have made a foray into worldwide markets. Thus, it is time that Indian brands recognised this valuable tool of loyalty programmes in their precision marketing strategies to ensure that their businesses flourish even more.
Bringing loyalty through precision marketing will aid the merchants manifold. Segmentation becomes crucial for lifestages, lifecycles, and spending habits. Here, marketing in the widest sense, can be used to create value benefits in price, production and distribution. For example, creating a discount coupon facility is a great value proposition for the unorganised sector to generate customer loyalty.
By utilising the right set of technology platforms and data analytics capabilities, and by taking a specialised approach to marketing campaign design and execution, companies – no matter how large in size or how far removed from the end customer – can tap into a new source of power.
Once the programme is established, you can move from performance reporting to building a basic customer language. Precision marketing is not the same as one-on-one marketing, but its more like customising.
Customer loyalty and distribution channel sales reward programme
Engage in an effective loyalty programme to reward and retain your best customers and channel partners. The end-to-end dealer, distributor, reseller, end-user and customer loyalty programmes are proven to:
• Strengthen channel partner (dealer, distributor, agent, reseller) relationships
• Motivate the profitable behavior of channel partners and end-users
• Reward and build customer loyalty
• Drive channel sales and profits
• Establish a competitive edge
• Capture customer / end-user data
• Encourage new product adoption
• Build valuable customer insight