7 Things Your CPG Brand Can Do to Boost Customer Loyalty

Posted by Greg Keating on Dec 29, 2021 8:05:28 AM

Drawing an upward loyalty line.

Customer loyalty drives a significant percentage of a brand's sales, whether it comes from a natural outgrowth of operations or there is an intentional loyalty program in place. When you pitch a sale to an existing customer via an ad, social media, or another method, your success rate will be around 60-70%, rather than the 5-20% success rate for a new customer.

Here are some things your CPG brand can do to boost customer loyalty.

1. Build a community.

Customer loyalty programs that offer rewards are great, but what will really build loyalty is if customers feel like they are special to your brand because they have a personal connection to it. Content and forums can be part of your loyalty program and will create a community without much cost to administer or supervise. 

2. Offer discounts.

Everyone likes discounts, and there are few better ways to encourage people to buy something than to offer them a discount to do so. Even 10-20% off will drive a significant increase in sales, particularly if you also offer free shipping for orders of a certain size. 

3. Reward referrals.

People naturally like sharing their love of a favorite product or brand, but they may not remember to do so as often as they will if they can get a reward for doing so. The best loyalty programs reward both the new customer and the referral source, so they can both feel good about their shopping experience. 

4. Ask for feedback . . . and respond.

Your loyal customers are some of the best sources of feedback about what customers generally want from your CPG brand. And they are also among the most likely to give feedback that is generally positive and constructive. If you can, respond to or reward customer feedback to keep it coming. 

Making an online purchase with a phone.

5. Personalize sales.

Most CPG marketing software now has the functionality to break your core customer base down into subgroups to which you can offer different items or sales. The same software can also automate your offerings to add a name to emails, texts, and even mailings so that your customers feel like they are getting a personalized experience.

6. Add tiers to your loyalty program.

Your most loyal customers should be rewarded the most, and a tiered program will accomplish this for you. The tiers can be based on how much someone spends, how many friends they refer, or other criteria that are important to you. 

7. Remember their special days.

Sending a gift or special discount on a customer's birthday, Christmas, or another important date can help create loyalty because it shows you care and you want them to feel special. And since most special days like birthdays and anniversaries are different for each person, you won't typically be flooded with sales all at the same time, which could cause a hardship to your business.

Want to learn more? Download our free guide, "Creating a Customer Loyalty Strategy for Your CPG Brand."

Hangar12 offers help with marketing to CPG businesses that struggle with marketing or want to improve. Subscribe to our blog for the latest information and trends. 

Topics cpg, Digital branding

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