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Fact time: Did you know that over 50% of your business’ revenue comes from just the top 20% of your customer base?  

Having a solid brand community is key to long-term revenue and growth. The best way to do it? Loyalty programs. Whether it’s a good ol’ fashioned mailing list or an exclusive online ‘club’, there is a plethora of ways to build a customer foundation for the success of your business. Want to hear the best news yet? Facebook Ads will help you get there.  

Let us explain…

Why are Loyalty Programs Essential?

Loyal customers have the highest lifetime value. They are far more valuable to you and your business than your one-time shoppers, as they have built a relationship with your brand that they know and trust. It’s far easier to encourage them to spend more regularly, and it’s why a loyalty program is a worthy investment for your business.  

A loyalty program helps to build brand community, and also gives you direct access to communicate with your most tapped-in audiences. Mailing lists, user accounts, social media groups – they’re all ways to generate a loyal following to benefit the longevity of your brand.

It all sounds too good to be true, right?

Whilst the benefits of a Loyalty Program sell themselves, there is one hurdle to leap before reaping the benefits, and that is establishing your database. Here’s how Facebook Ads can help…

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How do Facebook Ads help to build my Loyalty Database?

Facebook ads, in all their glory, have the potential to reach your ideal audience through a series of targeting measures.  

By developing a campaign centred on incentives for customers to sign-up for loyalty programs, you have the power to drive traffic and make connections with new, long-lasting consumers.  

To ensure success in your loyalty campaign, implement these key considerations into the set-up:

  • Avoid wasted ad spend by excluding existing members
    This is relevant at every stage of your advertising campaign – from excluding existing program members from your initial ads, to ensuring that you’re continually removing those that sign up as a result of your campaign from your target audience 
  • Increase campaign reach by encouraging organic engagement
    Remember that your program members are often your biggest advocates, even when they’ve only just joined. Ask people to share their sign-ups or tag friends to do the same and you’ll start to reach more people for less ad spend 
  • Double down on your investment with lookalike audiences
    Once you’ve established that Facebook ads deliver a return, keep testing different approaches with new target shoppers by building lookalike audiences from those that have already responded positively to your campaign by sending up.

Want to learn even more about Loyalty Programs and Facebook Ads?

If you’re a tad unsure on where to start with your loyalty program, we suggest getting in touch with our pals at LoyaltyLion. You can learn more about them and what they do here https://loyaltylion.com/ or, you can listen to the Bright Minds of eCommerce Podcast with Dahna and LoyaltyLion’s Head of Marketing, Fiona Stevens https://www.brightredmarketing.com.au/shownotes/episode10.  

 

You can also read a Case Study on how we achieved 9537 sign-ups for a shoe retailer in just three months, generating nine-times ROI on every dollar spent, here: https://www.brightredmarketing.com.au/case-studies/loyalty-program-facebook-campaign

Dahna Borg

Author Dahna Borg

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