Is Email Marketing Good Enough to Be Considered a Loyalty Program?
It’s far less expensive and difficult to keep an existing customer than it is to acquire a new one. Email marketing is a great way to keep in touch with your existing customers and keep your company at the forefront of their minds.
Email marketing allows you to collect data about your customers and send them targeted emails utilizing that information. For example, you can use email marketing to send your customers promotional offers and reminders. Email marketing also drives customers to your website, and encourages existing customers to buy more from you. But is email marketing good enough to be considered a loyalty program? Not quite.
You can use email marketing to complement your loyalty program, but you shouldn’t use it as a standalone program. Why? For one, spam filters make it difficult for promotional emails to always reach your customers’ inboxes. This obviously limits the effectiveness of your email marketing campaigns. Another issue with email marketing is that it provides you with limited data about your customers.
Loyalty programs enable you to collect significant amount of data about your customers, such as their addresses, phone numbers, demographic information, and buying behavior. With email marketing, on the other hand, you typically only know your customers’ names and email addresses.
Additionally, email marketing makes it harder for you to track the success of your promotional campaigns. Sure, you can measure open, click-through, and conversion rates, but it’s a lot more difficult to track people’s buying behavior. For example, if you email your customers printout coupons, it’s tough to determine if they redeemed their coupons and what for. It’s also a lot easier for fraud to occur when you send your customers coupons and rewards via email marketing.
How Email Marketing Benefits Loyalty Programs
Although email marketing isn’t comprehensive enough to serve as a standalone loyalty program, it can be used to complement your loyalty program. You can send customized emails to members of your loyalty program based on the wealth of data provided by your loyalty program.
Email marketing can also be used to strengthen relationships with members of your loyalty program. Email marketing allows you to stay in touch with your loyalty program members and send them special offers that are meant for their eyes only. There is loyalty program software available today that allows you to easily integrate your loyalty program data with email marketing solutions.
Why Use Loyalty Program Software?
Loyalty programs are complex. Fortunately, loyalty program software makes it significantly easier to launch and manage loyalty programs. Loyalty program software can be used to create a loyalty program that’s customized to suit your company’s specific requirements. Loyalty program software also provides you with a wide range of monitoring and reporting tools, so you can keep track of your customers’ behavior and tailor your marketing efforts based on their needs and preferences. Additionally, loyalty program software allows you to support various loyalty programs, including product-based, point-based, percentage-based, and frequency-based programs.
Email marketing certainly has its place, but its effectiveness is limited as a loyalty program solution. Not everybody uses email, and if an email doesn’t go through, there’s little you can do. To maximize the results of your loyalty marketing campaigns and ensure that they’re accessible to as many people as possible, implement a custom loyalty program with the help of loyalty program software. You’ll be glad you did!