Businesses can cultivate more brand loyalty and sales if they offer perks, report claims
Younger consumers are more receptive to perks, while targeting your customers with benefits that make them feel "special" could drive sales
Offering a range of perks and benefits to your customers is a good way to secure their loyalty, according to a research from BankingRefunds.co.uk.
23% of the 1,500 British consumers surveyed said that perks inspire greater brand loyalty, even if they are covered in the cost of a purchase (35%).
The research suggested younger consumers would be most receptive to perks: 29% of 18 to 24 year-olds said they “love perks” and would even invest in an extra basic product or service if it meant they would receive “something extra”, while 37% of those aged 18 to 30 believed benefits created brand loyalty.
With 35% of consumers aged over 65 saying they “see straight through” freebies and just 12% seeing perks as an viable method of building brand loyalty, it’s seems benefits targeted at younger consumers would be most effective.
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The study suggested that it’s important for the perks you offer to be relevant to your customers in order to effectively develop a connection; 36% agreed that tailoring benefits to make your customers feel “special” could drive sales for your business.
Respondents cited an Amazon Prime subscription (37%) as the most desirable perk, followed by a Netflix subscription (31%), exclusive discounts (30%), holiday insurance (27%), and cashback opportunities (24%).
Despite this, benefits such as mobile phone insurance, travel insurance, and breakdown cover are more commonly offered.
Forming brand partnerships with suitable companies is a good way to offer products and services at a discount, allowing businesses to benefit from shared resources, ideas and a wider customer base.
Find out how to forge a successful brand partnership in five easy steps here.
Carl Millar, managing director at BankingRefunds.co.uk, said: “Everybody loves a perk, and there is no better feeling than getting a freebie. Our research suggests that they are a great way for brands to cultivate brand loyalty especially with young consumers, which in turn could drive more revenue.
“However, our findings highlights the importance of any benefits needing to be tailored to the wants and needs of consumers.
“Millennials believe perks are effective in establishing a connection with a brand, and it can be strongly suggested that brands with a younger core demographic are likely to gain the most from investing in perks to drive revenue or acquisition.”
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