Little has been said about Progress Marketing as a multifunctional tool, yet it allows brands to collect data transparently and generate loyalty through incentives that are not merely based on purchases, thus, creating solid relationships with consumers and expanding the target audience.
How does Progress Marketing work and how can I implement Progress Marketing strategies in my company? Advice CEO and Founder Fulvio Furbatto explains to P&M how Progress Marketing is implemented and how the brand-consumer relationship can benefit from it.
Loyalty is built throughout the entire customer journey, not only in sales.
Traditional loyalty programs are exclusively based on purchases. Think of airlines miles, or discounts on purchases over a certain amount, or point collections. These strategies may work on regular customers, but how about the rest of the target audience?
This is where Progress Marketing comes into play. Progress Marketing strategies target occasional customers and offer them incentives in exchange for interacting with the brand.
As Furbatto explains, such customers are extremely valuable because, in addition to the purchases that they make, they provide the brand with vast amounts of information. From sharing content on social media, to taking surveys, including recommending products to friends, and watching educational content, every customer action offers valuable insight into consumer behavior and allows the brand to collect data transparently to generate new value, both for the customer and for the brand itself.
Who can implement Progress Marketing strategies?
Progress Marketing serves all company departments, and it allows brands to leave the traditional purchase-oriented approach behind to embrace a new approach that prioritizes user behavior. Such shift also benefits companies that sell low-frequency purchase products and services, e.g. insurance companies. “In the food sector, loyalty is based on the fact that consumers buy products regularly to meet their needs. However, when it comes to insurance, banking or phone company products, the purchase frequency is lower, therefore loyalty must be generated by offering users sets of benefits”, Furbatto points out.
A transparent and mutually beneficial relationship
Progress Marketing campaigns also allow for the transparent collection of data. Users give brands explicit permission to track their actions and receive direct communications, in exchange they are rewarded with different types of benefits. This is something that typically happens without explicit consent from users.
“Due to a strict European legislation, we have a solid experience in the processing of personal data. The loyalty programs that we design comply with the conditions for the lawful processing of personal information and allow brands to collect data in a direct and transparent way. When you opt for transparency, you are saying to your customers that their information is valuable to you and you are going to reward them for having shared that information with you”, Furbatto adds.
Value for money
Typically, traditional loyalty programs return to consumers a percentage of what they buy. Instead, Progress Marketing supports a more comprehensive approach: it is an investment to learn more about the entire target audience – not only high spending customers – as it engages all users throughout the customer journey.
“Tracking consumer behavior and rewarding consumers for interacting with the brand on a daily basis has a positive impact on sales. Engaging both regular and occasional consumers and encouraging them to take targeted actions is more profitable than increasing the value of the average receipt of a small group of regular customers.” explains Furbatto.
Not surprisingly, loyalty programs based on consumer behavior have been the most successful in the midst of the pandemic. Although consumers have been asked to stay at home for their own safety, brands have maintained regular communication with them and encouraged them to take surveys, watch educational videos etc.
User behavior on social media, surveys, emails etc. are the drivers of loyalty programs, which is the reason why they did not suffer any disruption during lockdown, unlike all other programs. This is particularly important because in times of crisis brands and consumers need to stick together.
In confirmation of this, it is no wonder that when sales take a downturn, traditional loyalty programs that are merely based on sales never work.
Advice Group will help Latin-American companies adopt this approach. “We operate in Mexico, Colombia and Peru. We have conducted a comprehensive analysis and we have found out that in these 3 countries, just like in Europe, there are the right conditions for loyalty programs to work. This is an advanced region, Latin-American users behave similarly to European users, they master technology and trust innovation, yet companies are not ready. Our goal is to equip them to respond to the needs of their customers”.
“In conclusion, – Furbatto says – there is a widespread lack of information and the people who should be implementing behavioral loyalty strategies in the Latin-American market are not sufficiently prepared. To close this gap, we are creating and sharing content to build a new loyalty culture”