Companies in Romania are investing 25% more than last year and 37% more compared to 2020 in customer loyalty, having budgets between 2,000 euros and 30,000 euros on average, to prevent a decrease in sales, in the context in which more and more Romanians are becoming prudent due to increased inflation, according to White Image data, the first and largest email marketing service company and other marketing solutions in Romania.
Almost 69% of White Image‘s customers invest in loyalty programs this year, especially companies in automotive, banking, retail, insurance, and tourism, the demand for the development of loyalty programs increased by 25% in the first months of 2023 compared to the same period in 2022.
“2023 is the year of investments in customer retention in the Romanian market. With inflation high and Romanians more cautious about spending, loyalty becomes an important component of the marketing strategy to retain customers and get them to buy more regularly. In fact, it is much cheaper for any company, maybe even five times cheaper, to retain existing customers than to attract new customers. In addition, the current ones are easier to convince to buy repeatedly and recommend the products or services to other people”, says Andrei Georgescu, co-founder of White Image.
Through customer loyalty, companies in Romania obtain both a reduction of up to 15% in marketing expenses and a 15%-25% increase in sales from customers who are part of the loyalty programs. In addition, up to 50% of consumers can change their purchasing habits if the loyalty program is communicated correctly. According to international studies, companies that sell services, especially utilities, insurance, and personal care services such as cosmetics and fitness, have the highest rate of customer loyalty.
“Against the background of the increased demand for loyalty programs, at White Image we have a very challenging period for finding the most effective methods to make Romanians become loyal to brands. Thus, the most used and, moreover, preferred loyalty rewards by Romanians are the accumulation of points for discounts on purchases, the receipt of free services or products, personalized offers depending on the value of purchases or the customer’s age, maintaining the quality of services or products, quick resolution of situations/problems and quick response at the customer support department”, explains Grațiela Lupu, co-founder of White Image.
White Image recommendations – The most effective methods of loyalty among Romanian consumers in the context of inflation
1. Loyalty Rewards Program: a loyalty rewards program can be an effective way to encourage customers to come back for more purchases. These programs may include discounts, points, or other benefits that customers can earn based on how often they shop.
2. Effective communication with customers: effective communication with customers can be essential to remind them of the brand and inform them of new offers or discounts, but especially to try to make firms connect with the problems/interests manifested by each customer. Thus, to increase sales, companies can use email or SMS to send targeted, individualized messages and encourage customers to come back for more purchases.
3. Promote the value and quality of the company’s products or services: with inflation high, customers may be less willing to spend money on products or services. Therefore, it is important for firms to demonstrate to them that their products or services are of superior value and quality compared to those of their competitors.
4. Personalized offers: based on purchase history, companies can create personalized offers for customers that will show them that they know their preferences, interests, and problems. These personalized offers may include discounts, promotions, or gifts.
5. After-sales service and support: another way to encourage customer loyalty is to provide excellent after-sales service and support. By offering support and advice on products or services, businesses can demonstrate to customers that they care about their satisfaction and want to maintain a long-term relationship.
6. Quality of products and services: in times of high inflation, customers are more careful about spending and less willing to make impulse purchases. Therefore, it is important that the products or services of the companies are of quality so that they retain customers through trust and satisfaction. That is why it becomes essential to have a communication in which you highlight as clearly as possible all the advantages of the products or services you sell.
7. Feedback and continuous improvement: customer feedback is important in any period and can be a good way to identify and fix problems in a timely manner. It is important for companies to constantly monitor and improve their products and services to retain customers and attract new ones.
