Why do advertisers set loyalty goals?
- To drive repeat purchases and increase the lifetime value of customers.
- To steal market share from their competitors.
- To ensure that shoppers are loyal and make a significant purchase from their brand
Explanation:
- Driving Repeat Purchases: Loyalty goals focus on encouraging customers to make repeated purchases of products or services from the same brand.
- Increasing Lifetime Value: By fostering loyalty, advertisers aim to increase the amount of revenue generated from each customer over their entire relationship with the brand.
- Building Customer Relationships: Loyalty goals help in building strong relationships with customers, which can lead to higher customer satisfaction and advocacy.
Contrasting Options:
- To steal market share from their competitors: While increasing market share might be an indirect outcome of successful loyalty programs, the primary focus of loyalty goals is on retaining and nurturing existing customers rather than solely on gaining customers from competitors.
- To ensure that shoppers are loyal and make a significant purchase from their brand: This statement suggests a focus on immediate or single transactions rather than the long-term relationship and repeat business that loyalty goals aim to achieve.
In summary, advertisers set loyalty goals to establish and maintain strong relationships with customers, encourage repeat purchases, and ultimately increase the lifetime value of their customer base.