Tag Archives: rewards

Four Factors That Create Compelling Loyalty

While we have seen a significant expansion of loyalty and rewards initiatives in recent years, the core elements remain pretty basic which needs to be changed. Here are four key elements  essential to making just about any brand’s marketing and loyalty strategies more relevant, more compelling and more personal.

1. Unified- Consumers are using any and all channels to go through their decision journey. Customer data across channels and touch points must be integrated and used consistently to inform decision-making. Most marketing interactions must reflect anytime, anywhere, anyway perspective. One brand, many channels should be the guiding mantra.
2. Individualized- To pay attention in the first place – much less act on a company’s marketing messages – the consumer needs to feel that “this brand knows me, it consistently shows me it knows me and it regularly shows me it values me.” Unique customer identification and distinctive treatment and offers need to be dialed up in most brands’ marketing mix.
3. Localized -With more and more consumers using mobile devices to enhance their shopping experiences, there is a huge opportunity for what I like to call “right-time marketing.” Geo-location technology, employed judiciously, adds an element of context that increases the odds that offers will be meaningfully more customer relevant.
4. Amplified – It’s been years since Seth Godin reminded us of the value of finding our “Purple Cow.” Godin’s admonitions have never been more relevant. The only way to stand out in a sea of sameness is to amplify a dimension of the business model that is meaningful to core customers and that a brand can ultimately own. Stated differently, brands must choose and distort a signal to break through the noise. If strategic, and perhaps a bit lucky, an organization can tap into the essence of remarkability by inspiring customers to advocate for the brand and amplify its message.

The promise of personalization has been around for many years. Until recently, the technology did not exist to scale most of these approaches. Moreover, there was not a compelling business case to invest in the incremental cost and complexity that robust personalization requires.

Marketing science and technology have advanced to the point where pragmatic and affordable solutions are becoming readily available. Most importantly, market dynamics require most brands to re-evaluate much of what they are doing. Mass marketing programs are becoming less effective literally by the minute. One-size-fits-all strategies are getting diluted in the ether. If you’re not relevant, the customer stops listening. Any measure of trust that may have been built up is easily lost.

In a competitive world that looks like a zero-sum game for many companies, the only chance for success is to become meaningfully more relevant than the next guy. So this time it’s not about who is bigger, faster or cheaper. It’s about who gets closest to the customer. This time it’s personal.

Source : www.colloquy.com/loyalty-strategies

5 Mandates for B2C and B2B Loyalty Programs

Whether you’re developing a loyalty program geared to consumers or business buyers, there are critical factors you need to consider. Here are five ways to make sure your program hits the mark.

1. Deliver Clear Value

It’s not enough to offer VIP or Gold Star status to customers; it has to be crystal clear what those things mean.You might want to offer incentives for enrolling, but whatever you do, make it very evident what customers get for taking part. A gift certificate? Miles? Points toward specific goals? According to COLLOQUY, 93% of people rate the types of rewards offered as either “very important” or “somewhat important” when deciding to engage in a program. But if they don’t know what they’re getting, they’ll drop out, and re-engaging them can be difficult.

For example,American Eagle Outfitters makes it simple for customers to sign up for their loyalty program, and they do a great job of explaining the value proposition to prospective participants. They also send an email welcoming members to the program with a temporary card, a recap of the benefits and an opportunity to earn points by joining the mobile alert program.

2. Keep it Simple

Rewards quickly become unrewarding when people find it hard to participate. Does your program have tiers? What are the benefits of each, and what does it take to achieve each level? What are the limitations and exclusions? Don’t leave the rules for the fine print. If people understand what they need to do in order to take part in your program, they might actually do it. If it’s confusing, they won’t.

3. Make it Relevant for Both B2C and B2B

Don’t just focus on adding members. To get results, you need those members to actively participate. And that means making sure the bonuses and benefits you offer are tailored to the needs and interests of your participants. Once you’ve figured out what appeals to your most valuable customers, you’ll be able to customize rewards to specific segments of your audience. If you were a paper goods manufacturer, for example, you would want to consider the needs of different types of customers. Are you reaching out to consumers who buy greeting cards? Small business owners who sell stationery? Corporate clients who buy envelopes in bulk for 200 locations? Each group has different need and goals, and different motivations.

B2B loyalty programs are becoming more common, and with good reason. In the most successful programs, the benefits are tailored to the business audience. MasterCard addresses B2C and B2B in distinctly different ways. They provide a number of different credit cards, some better for consumers, others tailored for business. Each has its own rewards. For consumers, MasterCard took advantage of their sponsorship of Beyonce’s world tour and offered people the chance to experience “VIP Priceless” events such as front row seats at the concert and backstage access. For small business owners, MasterCard offers discounts and rebates on products and services that their business-minded customers want, including shipping, fuel, travel, and recruiting solutions.

4. Provide Seamless Experiences

In today’s channel-hopping world, it’s important to provide streamlined interactions with customers, and that includes giving them a variety of ways to participate in your program. A punch card for “buy 10, get one free” doesn’t do much good if people are buying online. A robust multichannel loyalty program is coordinated across online, mobile, social, email, direct mail, in stores and on the phone.A recent study by Experian Marketing Services found that 34% of the U.S. population consider themselves to be loyal to at least one brand. The study also showed that these customers are more likely to respond to mobile campaigns and to purchase products that are advertised on social media sites. These findings underscore the importance of creating loyalty programs that span the customer journey. Cross-channel experiences can drive acquisition as well. For example, Starbucks promotes their loyalty program through social media with their Tweet-a-coffee program. It encourages customers to connect their Starbucks and Twitter accounts, then “tweet a coffee to a friend,” which gives that friend a $5 Starbucks Card. Right after the launch, Starbuck raked in $180,000 in purchases by 27,000 consumers, according to a report by Keyhole.

5. Measure the Value

In order to understand how well your loyalty program is performing, you need to be able to measure the results. Begin by defining what success looks like by setting key performance indicators. Here are some typical ways to measure results:

  • Look at the raw data: How often did customers use the program? What kind of feedback do you receive about it? How many customers shared the program with friends and family?
  • Study the sales numbers: How many customers purchased products or services because of the program? What was the cost of each conversion? What was the ROI?
  • Listen to sentiment: Are customers satisfied with the experience? How connected do customers feel with your brand?

In order to get a clear picture of the success of any loyalty program, it’s important to be able to track metrics across channels and to gain an in-depth understanding of online behaviors.

Source : http://www.business2community.com/brandviews/act-on/retention-drives-revenue-5-tips-customer-loyalty-programs

Liberty turns Instagram likes into rewards to nurture loyalty

Liberty is looking to turn Instagram likes into something more with the launch of an app that rewards customers based on their behaviour on the social network.The luxury goods retailer has launched a free loyalty “Tapestry” app that serves bespoke in-store offers based on their Instagram likes and purchasing history.

For example, if a customer is a fan of the Marc Jacobs Instagram page, then they will receive offers for the designer’s clothes.The app links to a users’ Liberty account and generates special gifts with purchase and reward points that can be redeemed at tills directly from their phones.Through iBeacons, the app also lets people unlock vouchers when they near certain products.The app, which has been developed by start-up Upside, is available to use until the end of the year.

Liberty is the latest luxury goods brand to experiment with mobile and social media in order to boost preference. Ralph Lauren is making its Harrods window shoppable so that fans can make purchases directly from their smartphones should they spot a must-have product. Meanwhile, Burberry has set up interactive windows at a Parisian department store and is also letting fans purchase clothes directly from Twitter using a “buy now” button.

The investments reflect a steady transformation around digital across the luxury goods market. Previously, the category has concentrated on older consumers but with an influx of new demographics marketers have looked to digital to enhance their desirability factor and charisma.

Source : www.marketingweek.com/2014/11/05/liberty-turns-instagram-likes-into-rewards-to-nurture-loyalty

Give Loyalty Members a Reason to Stay

It is no secret that customer loyalty is critical to business success. Consumers are inundated with programs and mobile apps that track their purchases and even their geographic locations to deliver offers that that encourage repeat purchases.

And to some degree, efforts to drive customer loyalty are working. The number of loyalty memberships in the U.S. is up to 2.6 billion and the average U.S. household is enrolled in about 22 loyalty programs, according to Colloquy, the research arm of marketing and transaction services provider Alliance Data.But not all memberships are active, since customers often sign up once to receive a discount and never use the program again. According to Colloquy, only about 10 memberships are active for every household.

More than half (55 percent) loyalty members drop out of a program within the first year, reports marketing research firm L2. And more than 90 percent of members want to receive communications from loyalty programs but only 53 percent receive relevant content, according to the survey.As a result, marketers are investing in solutions to drive higher engagement rates from loyalty members.

CRM data and Web analytics are the top two areas that marketers are investing in to improve loyalty engagement rates with social media management systems coming in last, according to L2′s survey of more than 100 retailers.Takeaways: Relevance and customer choice are essential. In addition to offering rewards or deals that meet the customer’s needs, allow customers to control the frequency and type of deals that they receive.

Source : www.1to1media.com