Why Digital Agencies Should Adopt an Automated Loyalty Solution as Part of Their Offering


As an internet savvy and generally curious person who works in the tech industry, I come across a lot of marketing-related content.

A recurring topic in these articles is customer acquisition strategies: defining the right audience for your product, generating awareness, creating the right funnel, understanding the right platforms, and more.

There is no doubt that busy business owners understand the power of digital marketing and its ability to generate new leads and customers. Acquiring new users online has been the strategy for most of the 21st century.

However, I very rarely come across articles that emphasize the importance of customer loyalty and have a clear customer loyalty strategy. So I wonder if marketers are unfamiliar with their loyalty options. Or are you not aware of the many benefits a company can bring to having customer loyalty?

Customer acquisition vs. Customer loyalty

As studies have repeatedly shown, increasing customer loyalty by just 5% increases profits by a whopping 25% to 95% as returning customers spend more money.

It has been shown that returning customers are far more valuable than new customers to any business, although acquiring a new customer can cost up to five times more than keeping an existing one. Even so, agencies are still much more focused on customer acquisition, despite clear data showing they are getting a much lower ROI.

Why don’t digital marketing agencies deal with customer loyalty problems and expand their service portfolio to include methods for customer loyalty optimization? For two main reasons:

  1. Work Overload – Loyalty management has traditionally taken valuable time and effort and is considered a huge hassle for busy business owners.
  2. Tracking Results – Unlike user acquisition, understanding the ROI of a customer loyalty investment can be a little tricky because it is more difficult to gauge exactly how much your business has gained from these efforts.

Automation as the future of loyalty

With Glue’s fully automated loyalty platformthose concerns are now gone. Glue helps busy business owners set up a customized loyalty program that runs automatically for the business owner – and communicates individually with each of their customers.

Using the platform’s clear business dashboard, they can then easily track the results of their loyalty program and understand how it has contributed to sales growth. In fact, most Glue business owners make it a daily habit to check their loyalty scores through their mobile devices.

The power of local communities

Since COVID-19 hit our lives earlier this year, small local businesses have struggled to keep their heads above the ground. Small business sales have declined sharply in most industries, and entrepreneurs are desperate to retain their customers to keep the business alive.

On the other hand, shopping in the neighborhood stores has become a necessity as people stay closer to home. In addition, initiatives to support local businesses are on the rise, and have actually become a movement that emphasizes the importance of local shopping and community support.

Digital agencies can take advantage of this movement and assist local businesses in nurturing their local clientele to unlock the full potential of their clients’ nearby community and customers. I contend that a paradigm shift – from attracting new customers to realizing the full potential of your existing customers – is urgently needed these days.

Participating in these “Shop Local” initiatives also means encouraging local businesses to bring their customers special offers, thereby motivating customers to continue their support for local businesses in their community.

It is basically an agreement based on trust between local businesses and their communities. Consumers shop locally while business owners in turn reward their customers for their loyalty. The cycle repeats itself.

The perfect way for digital agencies to achieve this goal is to incorporate a digital loyalty solution as one of their services.

Traditional marketing is expensive, difficult, and time consuming. Given how difficult it is for businesses to maintain successful marketing campaigns, an automated, hassle-free loyalty solution is an additional service that your customers will surely find useful.

Loyalty programs create goodwill, help get the word out there for free, and encourage existing customers to spend more, much to the delight of your customers.

As a result, an automated loyalty program like Glue can be a valuable weapon in your arsenal. Glue allows you to create reward programs that are specifically tailored to your customers’ customer base. In fact, you can create multiple loyalty programs, each tailored to specific segments of the customer base.

This helps to arouse and maintain an interest in the target mark over a longer period of time. Additionally, people are automatically drawn to brands that provide positive reinforcement. Rewards, also known as positive reinforcement, have a powerful psychological function and repeatedly trigger desired behavior.

A good loyalty program understands the psychographics of your customers’ customer base and creates reward programs that are most attractive to them. This creates a strong emotional bond between customers and customers’ brands, while timely rewards continue to serve as a seal.

You can easily track and analyze customer behavior and the success of loyalty programs. You can also use data and insights to tweak and change your loyalty programs so customers can get better results quickly.

Loyalty programs combine consumer psychology with modern technology

In conclusion, an automated loyalty program is a powerful weapon in your marketing arsenal to help your customers out. Using operant conditioning, based on behavioral psychology, modern data analysis, and business intelligence, you can create campaigns that support and promote your existing customers.

In the long run this will be much cheaper for your customers than expensive marketing and advertising campaigns. And customers who save money and see results are happier than those who end up spending a lot more on traditional marketing campaigns.