New Delhi (India), June 20: As a brand owner, you must be aware of the challenges involved in building and maintaining customer engagement. Especially in the market today, where customers can effortlessly choose from a wide range of options at their fingertips, capturing and retaining their attention and loyalty is particularly demanding.
Product authentication is a crucial but often overlooked element in strategies to enhance customer engagement and retention. Leading brands like Pepsico have successfully integrated authentication solutions with customer engagement to significantly improve the overall customer experience, leading to higher retention rates and increased loyalty.
The Importance of Customer Retention
Acquiring a new customer is five times more expensive than retaining an existing one. A 5% increase in customer retention can lead to a 25-30% increase in revenue, underscoring the value of focusing on existing customers to maximise profit margins with minimal costs. Over 84% of customers want to be treated as individuals and engage with brands on a personal level.
Enhancing Customer Engagement through Product Authentication
Product authentication brings customers peace of mind and verifiable proof of authenticity. Customers are increasingly concerned about product genuineness and prefer brands that provide clear proof of authenticity. Solutions like unique security codes enable easy product verification.
Addressing Sustainability and Ethical Practices Concerns
Sustainability and ethical practices are growing concerns. The EU Deforestation Regulation mandates transparency reports for products in 30 categories starting in December 2024. Consumers are becoming more ethically conscious and are more likely to engage with brands demonstrating commitment to sustainable practices. Product authentication allows brands to share information about ingredient origins and ethical production practices transparently.
Selecting the Right Authentication Solutions for Your Brand
When choosing authentication solutions, consider factors like product nature, target audience and business objectives. There are various solutions available for product authentication, each with its advantages and applications.
QR Codes, Holograms, and Blockchain
QR codes are a popular and versatile authentication solution. They offer the advantage of easy scanning using a smartphone and can link to additional information about the product or take customers to any designated page to enhance customer engagement. Holograms are another widely used product authentication solution. They offer a visually striking method of verification that is difficult to replicate. Tamper-evident holograms leave behind residues if the label or product is tampered with, providing a clear and visible indication of authenticity.
Blockchain technology takes authentication a step further. It offers a decentralized and tamper-proof method of tracking products. It ensures that every step in the supply chain is recorded and cannot be altered, providing a reliable solution to uphold transparency and traceability. Global brands like Walmart are using blockchain technology to track their agriculture products and food products from sources to shelves.
Restoring Trust through Prioritized Authentication
Counterfeits can easily break customer trust. Employing authentication solutions projects a brand's willingness to protect customer safety and uphold its interests. This enhances customer satisfaction, as the peace of mind of receiving authentic products fosters loyalty. Tangible proof of genuineness like QR codes gives customers confidence in authenticity and enhances the customer experience.
Encouraging Customers to Engage with Your Brand
Motivating customers to verify authenticity can be challenging. Brands can encourage this 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: Leading Electrical Company K-ONN
Leading electrical company, K-ONN, was able to improve its user base and loyalty using Acviss solutions. Bonus by Acviss created a seamless way to offer tiered rewards to customers and engage with customers. This also allowed K-ONN to gather valuable data on customer interactions, helping them tailor their marketing efforts and product offerings, resulting in enhanced customer satisfaction and loyalty.
Analyzing Customer Behavior for Improved Personalization
The abundant data collected through authentication can refine products and branding to better meet customer needs. Customization based on real-time insights ensures brands remain relevant and competitive. Satisfied customers are likely to share positive experiences, spreading word-of-mouth awareness about a brand's authenticity commitment.
While challenges exist, the benefits of integrating authentication into customer retention strategies far outweigh the difficulties. Brands that successfully implement these measures will enhance customer trust and loyalty and gain a competitive edge. If you are wondering where to start with your product authentication strategy, get in touch with us. Acviss has been instrumental in devising and implementing brand protection and customer engagement for over 8 years. Join a league of global brands and secure your growth today.