Building and maintaining customer engagement is more challenging than ever today. With an abundance of choices available at their fingertips, customers can easily switch brands with a simple swipe or click. This makes gaining and retaining their loyalty a daunting task for brand owners. One crucial element that many brands overlook in their customer engagement strategies is product authentication. Companies such as PepsiCo have successfully integrated authentication solutions with customer engagement strategies, significantly enhancing the overall customer experience, which in turn leads to higher retention rates and increased loyalty.
The Importance of Customer Retention
Retaining existing customers is not just about maintaining a steady revenue stream; it’s also a cost-effective strategy. Acquiring a new customer can be up to five times more expensive than retaining an existing one. Moreover, a modest 5% increase in customer retention can lead to a 25-30% increase in revenue. These statistics highlight the value of focusing on existing customers to maximise profit margins with minimal costs.
So, what drives customers to make repeat purchases? Several factors come into play, including product quality, pricing, accessibility, and the online shopping experience provided by the brand. However, above all, customers want to be treated as individuals rather than just numbers. According to studies, over 84% of customers desire personalized interactions and engagement.
Enhancing Customer Engagement Through Product Authentication
When you shop, are you always certain that you’re buying an authentic product? Product authentication provides that essential peace of mind. Verification of product authenticity is increasingly becoming a necessity rather than a recommendation. Customers are more concerned than ever about the authenticity of the products they purchase, and they prefer brands that offer clear and verifiable proof of authenticity.
Addressing Sustainability and Ethical Practices
From December 2024, the EU Deforestation Regulation mandates that products in 30 different categories must furnish their transparency reports to prevent deforestation and other environmentally hazardous practices. But it’s not just about regulatory compliance. Consumers are increasingly becoming more ethically conscious, questioning the sources of ingredients and the ethical standards of brands. They are more likely to engage with and remain loyal to brands that demonstrate a commitment to sustainable practices. Product authentication allows brands to transparently share information about the origin of their ingredients and the ethical practices involved in their production processes.
Choosing the Right Authentication Solutions
It’s essential to select authentication solutions that best suit the specific needs and requirements of your brand. QR codes are a widely used solution, that is easy to scan using a smartphone, providing instant verification and can link to additional product information or direct customers to a designated page for enhanced engagement. Tamper-evident holograms leave behind residues if the label or product is tampered with, offering clear and visible proof of authenticity. To further authentication solutions, Blockchain technology offers a decentralized and tamper-proof method of tracking products ensuring every step in the supply chain is recorded and immutable.
Prioritizing Authentication to Restore Trust
Counterfeits can easily erode customer trust in your brand. Keeping the market and your customers away from fakes is essential for your brand’s reputation and functioning. Beyond combating counterfeits, employing authentication solutions demonstrates your commitment to protecting customer safety and interests. This, in turn, benefits your audience in numerous ways; building customer satisfaction by providing them a tangible proof of genuineness that they can cross-verify. Plus, they can look at the transparency and sustainability practices employed in manufacturing the product.
Motivating Customers to Verify Product Authenticity
Motivating customers to verify a product’s authenticity can be challenging, but brands can encourage this behaviour by making the process simple and rewarding. Offering incentives like discounts, exclusive offers or loyalty points for verification is effective. Amalgamating authentication with rewards programs significantly enhances engagement. Analyzing customer behaviour data from authentication allows for gaining insights into preferences and purchasing patterns to inform marketing and product strategies.
Case Study: Acviss Solution for Sturlite
Sturlite, a leading electrical company, employed Acviss to enhance its user base and customer loyalty through Acviss solutions. This enabled Sturlite to constantly engage and understand customer behaviour enabling them to refine their product and marketing strategies. The collaborations resulted in an improvement in Sturlite’s customer satisfaction and loyalty
Building Brand Through Engagement
While there are challenges to implementing these solutions, the benefits far outweigh the difficulties. Brands that successfully integrate authentication measures into their customer retention strategies will not only enhance customer trust and loyalty but also gain a competitive edge in the market. If you are wondering where to start with your product authentication strategy, get in touch with us at Acviss. With over eight years of experience in devising and implementing brand protection and customer engagement solutions, we can help you join the league of global brands and secure your growth today