Rekindling Customer Loyalty: How to Maximize Results using Free Competitions

When you take a look at the current state of the nation, it is no surprise that brand loyalty is on a rapid decline. The on-going cost-of-living crisis has forced many households to re-think their spending habits and leave behind their favourite brands in order to hold on to their hard-earned cash.

Don’t just take our word for it, let’s take a look at the statistics: in 2023, 61% of people are feeling less loyal to brands now than they did a year ago, which is a 20% increase from 2022¹ . On top of this, it is reported that 81% of consumers spend time comparing prices before making purchases (up from 67% in 2022)² and view price promotions as one of the most important factors when making a new purchase.

These trends show that consumers are becoming more price sensitive, and they’re not afraid to leave your brand behind and jump ship if they feel there is a better bargain to be had. Obviously, the last thing you want for your business is to be losing your loyal consumers to your competitors, so how can we rebuild the trust and bring back their loyalty?

We believe that competitions could be the answer.

A survey of 536 UK adults who had all switched from their usually brands were asked what would convince them to go back to the brand they used before. 56% of those adults stated a financial reason, and 27% stating that an exclusive deal or offer would convince them to reunite with their previous trusted brand³. In our opinion, the best kind of offer is the offer of a free prize!

Competitions and giveaways provide disengaged consumers with a clear incentive to re-engage, as people are naturally drawn to the prospect of potentially winning something for free. During this current economic climate, who wouldn’t want the chance to win some free goodies from their favourite brands? The competition may encourage the returning users to visit your site, follow your social media accounts or even sign up to be part of your email database.

When it’s done correctly, competitions can be an effective way to improve the perception of your brand amongst your disengaged users. Your audience may begin to view your brand as generous and customer-centric, which can work wonders when trying to win-back or strengthen the loyalty and trust of your consumers. If you work with us at The Competition Platform, our dedicated Content Team are here to make sure that your competition is done correctly, in order to maximise the effectiveness of your promotion.

If you’re looking to win back some of your lost consumers and rebuild your customer loyalty, we believe that running a competition is definitely worth a shot! You can get in touch with our team by sending an email to enquiries@dmri.co.uk, or give our office a call on 0114 399 0828 to get started and discuss competition slot availability. We have a variety of titles to choose from, so there is a publication that fits every brand.

Sources:

1. The DMA Customer Engagement research. Base: 2497 UK nationally represented adults (16+)
2. The DMA Customer Engagement research. Base: 2497 UK nationally represented adults (16+)
3. The DMA Customer Engagement research. Base: 536 UK nationally represented adults who switched brands (16+)