Does your brand focus on the overall efforts on attaining new customers and retaining old ones? Can FMCG loyalty programs works better? It seems a great advent that regular customers are much convinced to buy from you again. The only problem is to search for a proper way to increase customer loyalty, which proves to be even more challenging for FMCG brands. By using modern technologies, it doesn’t have to be in the previous order.
In the specific case of fast-moving consumer goods (FMCG), building traditional customer loyalty programs doesn’t always invest. Particularly if you are taking into account implementation and maintenance costs and balances them against the foreseeable revenue, it seems to be the reason why FMCG loyalty programs get huge profits and also they usually invest in B2B or affiliate-partner loyalty programs instead of building their schematics. However, there isn’t any harm in doing so. They are usually depriving themselves of the opportunity to monitor and analyze customer behavior in real-time usage, which leads explicitly to poorly optimized digital campaigns and lacks desirable results in prolonged execution.
What are FMCGs?
FMCG stands for ‘Fast-Moving Consumer Goods,’ are products that quickly sell at relatively low expense. These goods are known as consumer-packaged goods.
Due to higher consumer demands, FMCGs have a short shelf life, i.e., soft drinks, packaged foods, and beverages, or because they are unpreserved, i.e., baked food items, dairy products, meat. FMCGs are frequently purchased and rapidly consumed at a lower price rate and sold in large quantities. Moreover, they also have a high turnover time when they are on the shelf of a store, FMCGs are goods with a short lifespan, and they usually consume at a rapid or fast pace. The following are several categories of FMCGs:
Prepared meals – Easily Prepared and ready-to-eat meals.
Toiletries and Cosmetics – Soap, toothpaste, hair care products, and concealers.
Pharmacy Products & Medicines – Pain Killers, antidepressants, antibiotics, and additional medication that can purchase without a prescription.
Baked Food Items – Cookies, Biscuits, Beard, Toast, and Rusk.
Beverages – Energy Drinks, Juices, and Water Bottle.
Office Materials – Markers, Pencils, and Pens.
Benefits of Fast-Moving Consumer Goods (FMCGs)
Companies usually sell products that constitute a wide range of products, price rates, and profit margins in the retail sector. FMCGs or Consumer Packaged Goods are items that usually sell quickly at a relatively low-price rate. Although FMCGs or CPGs are easy to dismiss, they still play a versatile role in operating retail businesses. The following are some of the benefits of FMCGs as discussed below:
Cumulative Profit Margins
The foremost aspect of FMCGs or CPGs is the cumulative profit they usually provide. FMCGs have low-profit margins, which means that each sales unit’s small percentage level represents profit. Although FMCGs also sell in large quantities. It means that small profits add up and can build a substantial portion of a retailer’s total profits for a specific period. This profit serves any number of financial aspects of the brand.
Cross Merchandising Prospects
The retailers thrive when the customers buy multiple products on each visit. CPGs or FMCGs provide various opportunities for cross-merchandising, which provides when a business places multiple products from various categories closely related in strategic planning. For instance, an electronic retailer sells remote controls that constitute a high profit margin but don’t rely on the FMCGs or CPG category. A collection of batteries, including CPGs or FMCGs next to those remote, provides a chance to increase sales and generate an enormous profit on two items when the customer chooses to purchase the batteries they need to operate in their new remote areas at the same timeframe.
Whenever the retailer offers CPGs or FMCGs, it merely relies on the brand influence to generate increased sales and drive enormous ROI. The CPGs or FMCGs come from the brands that advertise at a high level, which means that customers witness CPGs or FMCGs on the store shelves. They consist of pre-built emotional relationships with these brands, which might not be correct regarding the other items apart from the retailers’ product sales.
The increase in the retailers’ revenue sources provides a broader spectrum of goods and products. Similarly, the products can help offset to decrease sales for other products during seasonal inclinations in demand or periods of decreasing rate of customers confidence. Within the category of CPGs or FMCGs, the retailers can select from an unlimited range of product types that includes beverages, household products, food items, and disposable items. The range of products is quite broad that some retailers, including conventional markets, grocery stores, stay in selling exclusive business.
What is a Loyalty Program?
The loyalty program or rewards program is a marketing strategy that rewards loyal customers for getting engaged with a brand frequently. Today, such programs cover several commercial products, each having various features and rewards schemes consisting of entertainment, retail stores, hospitality, and tourism.
Some of the incentives may include improved accessibility with the latest products, extra discounts, or sometimes free merchandising packages. The loyalty programs’ functionality often enables customers to register their personal information with the company. They are given a unique identifier such as membership card, numerical ID, and use identified when purchasing a product.
Types of Loyalty Programs?
There are two categories of loyalty programs, which are as follows:
Traditional Loyalty Programs
Traditional loyalty programs make the use of paper or plastic cards that are needed to get stamped or punched whenever a customer makes any transaction with you. Although it may seem like a simple task, there are certain restrictions in this method. The physical issuance of cards is a difficult task.
You always have to make sure that you have a sufficient amount of printed and available cards and available to be distributed among your loyal customers. Also, once the card is full of stamps, you’ll have to issue a new card to your potential customers. The old cards are collected back in exchange for gifts, rewards, or discounts. You don’t forget every third customer who complains about the lost card or forgets to take the card with them.
Digital Loyalty Programs
Instead of any doubt, physical rewards programs can be set-up effectively, but they don’t offer the flexibility and convenience of integrating with the digital reward programs. The digital card programs don’t involve the issuance of physical cards, such as the digital loyalty stamp cards stored in your potential customers’ mobile account.
Furthermore, rewarding customer points is easy and intuitive to earn credit points from your digital loyalty program accounts to their account in a rapid manner. Some of the essential benefits of digital loyalty programs are as follows:
The digital programs enable businesses to integrate a personal touch to their valuable cards. Whenever the customer logs into the online rewards console, they greet with their official name. Personalization patterns assist users in building a strong relationship with your customers and assist users in providing brand loyalty to them.
Assists Monitoring of Customer Behavior
The use of a digital reward program is beneficial to businesses as it provides them complete freedom to track customer behavior. After the customer purchases are associated with an online account, the businesses get a clear image of the customers’ shopping basis. Furthermore, the information used to design a special offer and scheme improves customer attention to improve your brand identity.
Real-Time Data Tracking
The information collected from each customer is in a real-time acquisition pattern. It intuitively becomes easy for businesses to track and adapt their marketing campaigns based on their behavior.
Artificial Intelligence and Machine Learning Patterns are essential to be ready with the futuristic development in technology. The digital reward program lets you upgrade your program and ensures you in modern technology trends. It is essential as every big organization are now ready or getting themselves ready for technological development. The same enterprise is also ready to take real advancements of their capability of technology improvement.
What is myCred?
myCred is an intelligent & efficient points management WooCommerce/ WordPress plugin that enables you to create points and manages rewards for an eCommerce store built with WordPress and WooCommerce-enabled websites.
You can build brand loyalty by rewarding your customers using a store reward system, community leaderboards, website content monetization, and many more. Furthermore, myCred is a simplistic method to develop a loyalty program marketing strategy or gamify your website so that you can increase your average customer satisfaction via consuming minimal marketing efforts.
How myCred Loyalty Programs can Help FMCGs Brands?
myCred helps SMEs, enterprises, businesses, and ‘FMCG Brands create loyalty programs’ or gamify your site to increase the average consumer satisfaction with a market-driven approach to sustain your business to the next level.
myCred is a toolbox that enables you to build all sorts of point-based features.
Similarly, the points can have various meanings, and it also has many typical usages, i.e., create store reward programs. Reward site interactions, use points as a payment method for WooCommerce, Easy Digital Downloads, WooCommerce, and others. It also offers community management or use points as analytical tools to get ahead in the market segment.
myCred comprises dozens of plugins that can become a sustainer of FMCGs to proceed in the consumer marketplace. Some of them are as follows:
- myCred Social Proof: Enables your site visitors to know about your registered users’ recent activities via real-time notifications. The notification pops up the site visitors of various activities such as posted comments, published content, and viewable videos. This add-on can help FMCGs brands to advertise their brand intuitively and effectively.
- myCred Social Share: Enables you to award points to your users every time you share your posts on social media platforms. You can set up and manage the criteria for awarding points via the site’s presentation method.
- cashCred: Enables users the ability to convert their myCred points into real money. cashCred is a built-in myCred add-on that enables users to redeem myCred points into real money at any time and place. Apart from giving them cash, you can reward them with points to get encashed anytime.
- myCred WooCommerce Plus: Enables you to award points to your WooCommerce store users via the myCred points management system. The most special instance of this add-on is that it automatically awards coupons to users when they reach a higher rank and badge.
Benefits of Executing Loyalty Programs for FMCGs
Loyalty Programs focus on marketing tactics that are meant to retain existing and past customers with exceptional initiatives and rewards. Before delving into the benefits of loyalty programs for FMCGs, let us discuss some of the types of loyalty programs.
- Point-Based Programs: Inevitably, a points-based loyalty program is the most efficient and executable loyalty program in the consumer-oriented business market. Customers that spend more obtain additional points. myCred assists you a lot to run points-based incentives for your online customers.
- Value-Driven Programs: Value-driven programs are a different approach to loyalty programs as you reward your customers by not rewarding them instantly. Instead, you can also pay for a charity on their behalf. When the customers spend a distinct amount or buy a specific product, a nominated amount gets donated to the charity. These loyalty programs develop a clear picture of your brand in the customers’ essence, and they feel adapted to your brand.
- Referral Programs: A referral program promotes products or services to new customers via referrals from their existing loyal customer base. This program usually promotes the ‘sales pitch,’ which is considered an effective method to advertise your products to the next level.
Now, Let’s dive into discussing the benefits of loyalty programs for FMCGs
Increases Sales and Generates Revenue
FMCGs brand owners and marketers can enjoy loyalty programs because they can improve customer retention and seamlessly reflect in generating better ROI and performance metrics. Seemingly, a well-organized marketing loyalty program, consisting of necessary rewards for your customers to perform well for your business.
Improves Brand Awareness & Better Reputation
FMCG Brands can benefit from the Loyalty Programs as they provide multiple benefits: Loyalty Plugins such as myCred rewards new clients to keep updated with the repeated buying process. It also ensures existing consumers to feel devoted as your company values them. When customers feel valued, they share their pleasure with others, resulting in an endorsement for their business.
Conducts Target Audience Research
The loyalty programs help you understand your target audience’s behavior, which makes them more triggered to spend more time and what they appreciate most as a reward. This information used to launch a new product or service, and it can provide you a clear image of up-selling / cross-selling.
In a nutshell, with digital loyalty programs, FMCG Brands can provide their potential customers with a unique and tailored brand experience entirely independent of the physical shop for which each customer is buying the products and services. Furthermore, loyalty programs are considered valuable marketing tools and resources to retain customers in a prosperous environment. Hence, loyalty programs build a result-driven approach to achieve a high reputation for your FMCG brand, resulting in increased growth & ROI. Thus, maintaining customer satisfaction at the highest pace.