Why is Influencer Loyalty Program Critical for the Brand?

Influencer Loyalty Program for the business

Published on: January 23, 2024

An effective strategy for attracting and retaining influencers is to identify, engage and reward influencers.

Customer priorities, preferences, and sentiments have evolved at a faster pace in recent times. They are now open to recommendations based on reviews and feedback on the brand/product, especially from influencers who they trust and rely on. Hence, when it comes for brands to naturally reach end users/customers, influencers are pivotal.


Significance of Influencer Loyalty Program

Influencer recognition and retention could be increased through influencer loyalty programs, which in turn can help businesses earn revenue, boost referrals, and achieve overall growth.

Repeat business from loyal influencers is an important revenue stream for a brand’s overall income. The program also checks and balances the costs to acquire an influencer whose onboarding and maintenance are a lot higher. While it is important for brands to do their best for attracting new influencers, the existing influencer base has to be extremely well-nurtured and retained.


Who are The Influencers?

Depending on the product’s utility and purpose, influencers could be tradesmen comprising of electricians, carpenters, painters, mechanics, plumbers, fabricators etc..

In certain cases, especially in the area of real estate, even builders/developers, contractors, architect, engineers, interior designers/decorators etc. also play a role as an influencer.

Influencer Loyalty Program
For example, an architect’s recommendation to use a product of a specific brand can have a significant positive impact on volumes, value and quantities depending on the size of the project in question.

When these communities are closely associated with a brand for a long period of time through influencer loyalty programs, they turn brand ambassadors!


Using Loyalty Programs to Build Brand Influencer Loyalty

Such influencers seem more committed to remaining consistent, spread word-of-mouth, and induce strong recommendation, thus increasing their loyalty quotient.

Because influencers are the most authoritative in their areas of expertise, they have considerably better control over customers’ decisions and mental makeup. It is therefore wise for businesses to invest in influencer loyalty programs to stay ahead of the competition to drive more sales and loyalty revenues.

It is only fair that an inspired influencer who acts as a brand advocate be recognized and appreciated as a gesture of recognition and reciprocation. In the process, a influencer loyalty program, is imperative for brands to achieve their business goals.


Ways to Improve Influencer Engagement

A well-designed influencer loyalty program focuses on how to increase the frequency of engagement with the program through:

  • Invite to Contests
  • Periodic Performance Results
  • Star Rating / Badges
  • Gamification
  • Refer & Earn
  • Dream Gifts
  • Bonus Points
  • Club Benefits (Tiering)
  • Target vs Achievement
  • Survey and Questionnaire
  • Project Referrals etc.
Improve Influencer Engagement

# Communications

Members of a brand’s loyalty or rewards program are more open to marketing communications. Loyal influencers could be encouraged to engage with the brand adopting proactive communications such as special discounts and gifts on special occasions, schemes as well as access to exclusive sales and promotions etc. This can make them more interested and keep themselves abreast of the latest updates.

# Higher purchase frequency/value

When a brand’s marketing strategy includes influencer loyalty programs, the brand sees a direct and beneficial impact on the revenue made by the program as a result of higher purchase frequency.

# Analysis of loyalty data

Data is key to any business. An influencer loyalty solution provides companies with valuable data that can be analysed for their purchase behaviours and explore cross-selling and up-selling possibilities. A centralised data of loyalty metrics is a gold-mine to base and act their market strategies.

# Redemptions

The loyalty points influencers accrue over a period of time is their hard earnings as well. A influencer loyalty program gives transparent, quick and instant redemption possibilities. Redemptions can be cash, gifts or electronic vouchers. A gift thus ordered for redemption shall always be cherished and long-remembered, triggering an emotional connect.

Also the brands can publish a choice of their own products that will appeal to a particular user group. For example, a mechanic could opt for a tool-kit (of same brand) since it is used for professional purpose on a daily basis. Similarly cutting tools for a fabricator and so on.

# Cashback

The valued points could be converted back into currency value and be directly credited to their bank account (subject to statutory compliance). This helps them meet any emergency financial need especially during hard times like pandemic etc.


Final Words

A well-managed influencer loyalty program is a great marketing strategy a brand can count on. It needs to be considered as an investment rather than as an expense, and creatively managed to deliver fabulous returns on a mid-long term basis. Once program has matured and gained traction in the market, the returns through CLTV parameters can be significantly higher.

Creating a brand influencer loyalty program that fits your company’s image is a business strategy worth investing in. Loyltwo3ks has the knowledge and experience to help you create a unique loyalty program that fits your brand’s identity and keeps pace with your company’s goals.


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Author - ANand Gururaj

A seasoned management professional with over two decades of enriched experience, having worked in various capacities including Software License Sales (Enterprise Solutions & Services), sales operations, capturing new markets and conceptualizing solutions. Adept in go-to-market strategies, pricing dynamics, managing alliances and client relationship, he currently heads Global Sales at Loyltwo3ks with a passion to drive change constructively and collaboratively to ensure everyone wins.