Fast-moving consumer goods (FMCG) faced huge challenges over the past couple of months. Many experts have predicted that some of the changes in consumer behaviour, like favouring the digital world over the traditional one, are here to stay. But the future is uncertain. Now, as we get better at fighting COVID-19, and as we venture into the ‘new normal’, what could FMCG brands do to stay ahead of competition? We attempt answering that question by highlighting some of the top customer loyalty trends that FMCGs of Egypt and MENA should adopt.
1) Having a Direct Channel of Communication With Your Customers
Numerous notable FMCG and consumer packaged goods (CPG) brands around the world have started shifting to a more direct-to-consumer mentality recently. As an FMCG, that could be quite tricky if retailers always stand between you and your customers. At Dsquares, however, we fully handle digitized customer loyalty solutions that use cutting-edge technology to help you do that.
A digital customer loyalty program could in the shape of a website or a mobile application that customers can use to get perks. As they purchase the brand’s products to get those perks, it will additionally offer you a highly engaging means to interact with your end-customers directly while you’re sure you have their attention and interest. The same couldn’t be said for more conventional promotions and social media outlets.
2) Using Customer Loyalty Programs to Track Changing Consumer Behaviour
Faced with uncertainty about the changing consumer behaviour of the ‘new normal’ and capitalizing on the booming digital transformation of almost everything around us, FMCG brands now use digital customer loyalty programs to understand their customers better and continually stay updated on changes in their behaviour.
A digital customer loyalty program could provide comprehensive reporting tools and behaviour trackers supported by deep analysis, AI & machine learning. Through a customer loyalty program that utilizes cutting-edge technology, you can find out all the details you need about the purchases of your customers and more.
For a smooth customer experience, however, make sure you’re transparent with your customers about what data you’re collecting and for what purpose. To ease your worries, more than 75% of respondents in this recent survey by Accenture stated their willingness to share data for three reasons; a more personalized experience, efficient and intuitive processes, and competitive pricing.
3) Striking the Right Loyalty Program Partnerships
Striking the right partnerships in your loyalty programs can make your loyalty programs more valuable to customers, and a study published in the Journal of Service Research showed that your customers would feel more – and not less – fondness for your brand after cross-purchasing from a partner in successful loyalty program partnerships. This may have gone on for a long time, but it’s still definitely trending and can be easily overlooked.
The study’s authors put it this way, “The results suggest that customer usage of (and satisfaction with) the core service influences customer cross-buying from loyalty program partners. The cross-buying behaviour then reinforces the customer’s relationship with the core service, as cross-buying positively influences future purchases of the core service.”
When seeking your partners, make sure your pick ones that help you benefit your existing customers and perhaps even reach potential customers.
Here’s a recent successful example from Vodafone and Ariel in Egypt: