The Role of Live Events in Fostering Customer Loyalty
Customer retention stands as one of the most pivotal aspects of marketing and is even more pivotal for brand awareness. Acquiring customers is important but having them continue to return as a buyer has proved difficult for many brands in recent years due to the competitive landscape. Recent studies offer new ways to improve customer retention – including leveraging live events as a reward for customer loyalty.
Why Customer Retention Matters
Loyal customers are more important than mere transactions; they can be influential brand advocates and team members. It can be debated that their enthusiasm holds as much – or more – power than traditional marketing strategies and methods that companies use daily.
Retaining customers also proves financially beneficial as it’s often more cost-effective than acquiring new ones. According to a study by Optimove, bringing on new customers costs almost five times as much as retaining existing customers. Customer retention gives brands the opportunity to maximize the value of each one of their customers, increasing the customer lifetime value (CLV).
Live Events as a Customer Reward
One of the main attractions of offering live events as a reward for consumers is the emotional connection established with the brand; this is a powerful and influential tool in marketing. These events can serve as incentives for unique and memorable experiences that enhance customer loyalty and build a brand’s image through the intrinsic value of exclusivity.
Live events are so sought after that a recent study from The Harris Poll on behalf of TFL found that 70% of consumers value experiences over material things.
Whether it’s in the world of theater, a concert or someone’s favorite sporting event, the in-person nature of these events provides a sense of realism and community that resonates with individuals who value personal connections and engagement.
The same study found that most Americans (64%) want to attend more live events in the next year. This provides brands an opportunity to stay top-of-mind for their customers by offering live events as part of their loyalty programs. Consumers will start to attach and remain loyal to brands that offer memorable experiences over tangible rewards like coffee cups or stocking hats.
While live events are a compelling strategy and one way to retain customers, it is not a one-size-fits-all approach. Brands that offer loyalty programs with incentives and rewards in the future will be set up for success. Besides offering meaningful rewards, having exceptional customer service, actively listening to customer feedback and committing to evolving with the customer is beneficial for growth within a brand.
Long-Term Consumer Loyalty
Long-term loyalty goes beyond short-term gains and establishes a foundation for success. When customers exhibit loyalty over an extended period, it shows an emotional connection and trust within the brand. Loyal customers often act as brand advocates and will endorse brands they believe in.
Loyal customers become an important part of a brand’s journey, providing valuable insights and feedback that helps a brand continuously improve over time. That retention contributes to a brand’s adaptability for innovation with changing customers’ needs.
The competitive landscape for consumers to choose the brands they want to stay loyal to might be the highest we’ve ever seen. It’s become clear that long-term loyalty and customer retention will become pivotal going forward, and harnessing the potential of live events and other meaningful incentives will prevail. Doing so will create the foundation for brands, as well as sustained relationships and trust from consumers.
