Brazilian defaults are an endless debate. According to Serasa, today in the country there are 72.04 million Brazilians who do not pay the bills within the maturity period. And delays are in several areas, from school fees, through health plans to basic consumption, such as water, electricity, gas, associations of football clubs and Class Entities.
For brands, default, coupled with possible failures in marketing and communication strategies, can trigger not only financial losses, but also reputation and customer relationships.
In this context, many companies are turning to benefit clubs to mitigate these problems. Such programs offer exclusive benefits to customers, ranging from discounts to cashbacks, adding value to the product.
The Brazilian Bar Association (OAB-BA) is a great example.The entity invests in a benefits program in partnership with Alloyal, a loyalty tech mining company, which offers a customizable tool for customers.
By offering benefits to associate lawyers, such as the possibility of paying the annual membership fee using cashbacks obtained from purchases, OAB-BA strengthened the bond with its members and reduced default.
Because local authorities involve paying an annual fee, OAB-BA took advantage of the benefits of its loyalty program and created the possibility of paying the fee through cashbacks obtained from purchases with discount coupons from the application.
The agile implementation resulted in a quick return in terms of cashback, demonstrated the effectiveness of the program for lawyers and for this, the “boca a boca” was fundamental.
“The benefits club associated with a monthly fee contributes to the reduction of default for two reasons: the cashback can be used to pay off the monthly fee itself, or else, when realizing the added value, the customer becomes more faithful and punctual in payments. In the case of OAB-BA there were cases in which customers even paid their annuities with the cashback received through the”, said Aluisio Cirino, CEO of Alloyal.
The motto is not to let the customer give up
The global trend points to an increase in investment in customer loyalty and retention programs. Companies from various sectors are recognizing the importance of building lasting relationships with their consumers, investing in technologies and strategies aimed at loyalty.
In the era of connection and customer experience, brands not only want to sell products, but retain customers on a complete, personalized journey to attract and retain customers.
According to the Global Customer Loyalty Report 2024 from Antavo, a recognized international loyalty program company, companies are increasingly interested in increasing their investments in customer retention compared to acquisition.
According to Gartner projections, it is estimated that one in three companies that do not yet have a loyalty program will implement one by 2027.In addition, Antavo reports that 9 in 10 companies with existing programs plan to reformulate them in the next three years.
Forrester research highlights that 59% of global B2C marketing decision makers planned to increase their spending on loyalty technologies by 2023.
“The fact is that we are in the era of connection. Brands no longer sell only a product, but also an experience. Within this, being present at the important moments of your customer is essential for him to become loyal to your brand. These savings are tangible, and loyalty programs also offer cashbacks, which are perceived by customers as” benefits, Cirino says.