Loyalty and trust are two such elements that have pinned down every U.S customer for over years. While trust establishes faith in a brand to do business, loyalty on the other hand rewards customers for returning. It also balances and strengthens demand and supply chains that can in turn increase revenue over years. Incentivising customers is the main motto behind any smart business and further satires them by offering freebies. Such small ideas of marketing can never get rejected or denied and as a result, as a customer is drawn to a brand or store, they can be lured to buy some more expensive items.
Approximately 12-18 incremental revenue growth is generated by any such loyalty programs every year as per a 2017 study based on Accenture. Due to this ongoing Covid-19 pandemic, there have been multiple changes in the terms of the type of incentives that a customer desire for. In today’s scenario, new budding business people show their interest in trust and incentives and how they help other consumers choose their brands.
Generally, people trust the brand that their family or friends rely upon. However, earning trust in a situation of this pandemic and that too on online brands is very difficult. The pandemic and work from home situations have made consumers depend digitally for their every need.
According to a July 2020 McKinsey survey, 34 % of respondents did online shopping from Instagram. Several consumers have turned to new brands while shopping over this lockdown period based on their trust on a respective brand. 93 per cent trust their family brands while 38 trust other advertisers according to a 2020 survey by Kantar Media.
To increase customers trust, companies need to redesign their eCommerce process, marketing strategies and partnerships to boost reliability. Blockchain company UTU believes the way to get more customers is to develop a trust-based infrastructure on the web. This means delivering Oracles, SDKs and APIs that supply trust signals evaluated dynamically. Nowadays parallel with online shopping, fake reviews and rankings are also on lease. And they mislead consumers highly. Thus, the purpose of cheating and obfuscations get valued and so business needs to be more proactive with possible plans and outcomes in mind.
Around 82% were misled reading a deceptive view according to the research of 2019 by marketing firm of Bright Local. In eCommerce platform trust and loyalty both creates an umbrella of frictionless transactions. But since people’s privacy are hacked, important data’s are leaked, safety gets violated and reputations of a brand are sold to bidders.
Consumer preferences must have adherence to loyalty programs. These help consumer trust and adhere to a brand forever. Modern loyalty incentives were made popular by U.S. airlines in the 1980s. Since then several changes have been made in the discounts and free goods competitive consumer-facing industries mainly in credit cards, retails, hotels, electronic goods, entertainment and groceries. Enhancement of enterprise value is further aided through discount and free goods. Developed companies have started to turn to cryptocurrencies to award tech-savvy customers for their loyalty. The loyalty points on blockchain-based platform represent an advanced platform of customer reward that never expires or is never restricted on any grounds.
According to McKinsey’s COVID- 19 Global Consumer Sentiment survey, the value, availability and quality for organic products are the main drivers for consumers trying new brands. The value, availability and convenience are the three main [prospects of building customer- rand relationship. People want value purchases for essential goods due to this recession. They buy products that are easily available and switch to that business that offer them online order and curbside delivery. Consumers also value freebies more these days and focus on online services for banks, gas booking, medical services and restaurants. So attracting new customers by giving away offers, building brand trust, giveaways, rewards and incentives not only boots eCommerce platform but also has led to people making more savings in their account for online access. As a result, budding banking entrepreneurs have been challenged to keep banking services smooth for error-free transactions.