The purpose of frequency marketing is to build a loyal customer base by allowing recurring purchases through a standardized enrollment process. One type of frequency marketing is loyalty programs.
For your convenience, an article detailing the components of a marketing plan is provided below.
What is Frequency Marketing?
Frequency marketing is a form of discount strategy that rewards repeat customers and those who buy in quantity. Price cuts to actual things won as prizes might be among the incentives.
The basic goals of a frequency promotional program are to generate repeat sales and brand loyalty. Businesses may drive repeat purchases through a number of channels by using frequency marketing.
Understanding Frequency Marketing
Frequency marketing, which focuses on the development and implementation of marketing strategies and approaches that drive repeat purchases, visits, and orders from current customers, may optimize consumers’ contributions to a company’s bottom line.
Because the Pareto principle may also apply to customer profitability (e.g., 80 percent of the firm’s revenues may be ascribed to 20 percent of the customers), identifying the ‘best,’ or most valued, consumers may be a significant aspect of the frequency marketing process.
Many firms use formal loyalty programs as part of their frequency marketing strategy to enhance client retention and generate repeat transactions.
Understanding the benefits, drawbacks, and practical issues of frequency marketing may assist marketers that want to increase the number of times important customers make repeat purchases.
If a consumer reacts favorably to a marketer’s frequency program, for example, they may increase the frequency of their purchases, but this does not imply that they will become a loyal customer, Rival clients’ loyalty may not continue as long, especially if other organizations’ frequency marketing strategies become much more tempting to these consumers.
If you want to employ this marketing strategy successfully for your business, the best thing you can do is reward loyal customers who buy from you frequently with a discount or a free gift. To track consumers’ regular transactions, you’ll need the greatest customer relationship management system available.
Example Of Frequency Marketing
Several airlines operate frequent flyer programs to reward loyal passengers (FFP). Because many airlines travel to the same destinations, having a good frequency marketing incentive program may provide you an advantage over the competition.
AeroRepublica’s frequent flyer program in Colombia is called OnePass, whereas Vueling Airlines’ FFP in Spain is called Punto. The names are derived from the Spanish word meaning “point.”
Who Use a Frequency Marketing
Most frequent flyer programs provide points to clients who fly with the airline on a regular basis. After a certain number of travels, the points can be redeemed for free flights or other benefits.
Perks may include a seat in first class on the airline or free or reduced-rate accomodation at a nearby hotel. To improve customer frequency, airlines routinely enter into collaborative ventures with other travel-related businesses such as hotels, restaurants, and car rental firms.
Businesses frequently issue “scratch and win” cards to clients as a type of loyalty reward, particularly for those customers who frequently make repeat purchases from the firm. The majority of giveaways provide free items or a discount on a future purchase.
Customers’ purchase frequency may rise as a result of this type of card scheme, because the cards are frequently provided during one visit but not used until the next.
Customers in one type of frequency marketing receive a stamp on a card every time they make a purchase. After a particular amount of purchases, a free item is presented.
In supermarkets and other sorts of retailers, membership card systems are prevalent. When a consumer signs up, they are given a card on which they may accumulate points for free purchases.
When a member accumulates enough points, they may use them to purchase a range of items from a point catalog.
The ultimate purpose of the firm is client loyalty, which it intends to achieve through regular transactions, as many of the larger items may take years to save up for or require substantial expenditures.
What Are Loyalty Programs
A “loyalty program” can also refer to regular marketing initiatives. The sales tactic is to urge consumers to make recurring purchases so that they may receive the reward.
If a company has tough competitors, it may need to use focused marketing strategies to attract clients. The more devoted their customers are to their brand, the less likely they are to switch to the competitors.
Ad impressions divided by the number of unique people exposed to the ad may be used to calculate the estimated frequency of an ad.
This is simply an estimate due to the different frequency with which viewers would have seen the commercial. If you select a frequency restriction, the results will be quite exact.
The frequency calculation formula is as follows:
Frequency Mathematical Formula
Expansion is accessible by clicking on the image.
Frequency = Impressions ÷ Users (per timeframe measured)
You would write 10/24 if you received 30 impressions in 24 hours from three separate people. (Because each user viewed ten impressions)
Reasons For Increasing Frequency:
Your competitors are advertising … a lot
Remember that you are not the only one battling for your potential consumers’ attention. The greater the number of companies vying for advertising expenditures, the greater the frequency necessary to grow share of voice. This may need to be performed four or five times in a noisy, chaotic environment.
A large number of companies are advertising in the medium you selected
That channel was picked since it is very noticeable to your target demographic. Many other firms, both similar and dissimilar to yours, did the same thing. Your communications must be more frequent to ensure that your target audience notices and understands your message.
Your product/brand has lower recognition or loyalty than the competition
Customers must be exposed to a new product or brand on a more frequent basis, for example, before they will pay attention, build confidence in it, and begin to absorb the message.
You have a short window of time to generate the desired action
Marketers must shorten the path to purchase since they will have less time to influence the purchasing decision. The advertising message will reach more people in less time if it is presented more often over a shorter period of time.
Your message is difficult to understand
When things are intricate, they must be evaluated several times. Medical insurance companies are a good example of this tendency. Firms frequently boost ad frequency in the second and third quarters to improve message understanding as the health insurance market evolves in response to the Affordable Care Act.
Media engagement is low
Because of consumers’ proclivity to multitask, some kinds of media may experience decreased engagement in specific settings. If consumers can swiftly skip through your commercial (think DVR and television), you’ll need to run it more frequently to get them to notice and respond to it.
Frequent marketing basis is an excellent approach to keep clients returning. It’s general known that a company generates more money from regular customers than it does from new ones.
In terms of money and income, it is more advantageous to maintain an existing client than to try to recruit a new one.
As a result, before selecting whether or not to use a frequency marketing plan, a company must first examine its industry.
A corporation may not engage in frequency marketing if its business model is based on one-time transactions and does not anticipate repeat business from existing or future clients.
However, if it is a service that clients use repeatedly, the firm should do frequency marketing efforts on a more frequent basis.