Affiliate marketing is an effective strategy to build customer loyalty and retention. In fact, according to Get Cake, 79% of marketers use affiliate marketing to engage existing customers. So, in this blog post, we’re delving into the affiliate strategies that can help to boost customer loyalty and drive more sales.
According to the Harvard Business Review, it costs a business between 5-25 times more to acquire a new customer than to reengage an existing one. So, it’s safe to say customer loyalty pays off.
What makes using affiliates to boost customer loyalty even more lucrative is that it’s paid on performance. So, you’re only paying for the customers successfully reengaged.
Five Ways Affiliate Marketing Can Boost Customer Loyalty
Choose the right affiliates
So, you’ve spent money to acquire a new customer, and they’ve shopped with you once. Now, they’re ready to buy again. However, as part of their customer journey, they do a quick Google search for current discounts and encounter an affiliate promoting invalid offers to drive traffic to your site. When they attempt to check out with the invalid discount code, it doesn’t work, and you lose the sale.
This is just one example of how important choosing the right affiliates is for customer loyalty. Regardless of where your customer is on their journey, weaving in reputable affiliates along the way is essential to providing a great experience and boosting loyalty.
When you’re conservative about your affiliate partners, the right affiliates can be used to incentivise sales. By working with a handful of high-quality sites that offer your audience valid discounts or perks, you’ll boost bottom-of-the-funnel conversions and reengage customers repeatedly.
Boost and track referrals
If you don’t have an in-house referral scheme, you can select an affiliate partner to manage it for you. By offering existing customers rewards for referring new customers, you’re not only acquiring new sales but re-engaging existing customers. For example, you could provide a loyal customer £10 off their next order for every new customer they refer. It’s a win-win!
Tap into influencer marketing
Influencer marketing is a great way to get your brand seen by new and existing customers. However, influencer marketing can come at a high cost, with no guarantees of results. Using an affiliate setup is a great way to combat the high costs of working with influencers. This way, you’re not paying huge upfront costs for exposure but sales.
Plus, with the rise of nano influencers, you can invite real customers onto your affiliate program so they can drive referrals and boost your bottom line.
Reward customer loyalty
As we mentioned earlier, customer loyalty is cost-effective for your brand. When you create loyal customers, you should reward them. Again, you can use an affiliate partner to develop bespoke loyalty rewards for your customers. Whether it’s a discount on their birthday or early access to your latest drops, affiliate tracking and tools can be instrumental in identifying and engaging your loyal audience.
Are you ready to explore further benefits of affiliate marketing? Our experienced team can build a bespoke strategy tailored to your brand, industry, and targets. Get in touch today to discover how Conversion can take your marketing strategy to the next level.