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DMA Email Lifecycle: Retention - Creating Loyalty Programmes

When used effectively loyalty programmes can convert subscribers into loyal customers and advocates. Riaz Kanani of Alchemy Worx looked at what makes a great loyalty programme and inspire you with some great examples.

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DMA Email Lifecycle: Retention - Creating Loyalty Programmes

  1. 1. Creating Loyalty Programmes Riaz Kanani Marketing Director, Alchemy Worx
  2. 2. About Alchemy Worx 153 Years of experience 10 We’ve been around for over a decade 60+ Staff focused on email marketing US/UK Based in Atlanta & London
  3. 3. Alchemy Worx
  4. 4. Setting the Scene
  5. 5. <ul><li>60+% of consumers think that they will be worse off in the next 12 months </li></ul>
  6. 6. <ul><li>71% of marketing directors felt loyalty schemes are more important since the credit crisis started. </li></ul>
  7. 7. Creating Loyalty Programmes
  8. 8. Don’t focus on the device they don’t create loyalty..
  9. 9. <ul><li>The only way you create true loyalty is by your behaviour over time - do you in a transparent, reliable way, create benefits for people? </li></ul>Sir Terry Leahy, former Chief-Executive of Tesco plc
  10. 11. Collect and Analyse Data <ul><li>Start small – and test </li></ul><ul><li>Quality is critical </li></ul><ul><ul><li>assign a confidence level to each data point </li></ul></ul><ul><ul><li>Define customer types </li></ul></ul><ul><li>Identify potential touch points </li></ul><ul><li>Don’t ask for too much! </li></ul>
  11. 12. VS +
  12. 13. Touch points <ul><li>Weekly newsletter </li></ul><ul><li>Milestone triggers </li></ul><ul><ul><li>birthday, renewals, points total </li></ul></ul><ul><li>Behaviour triggers </li></ul><ul><ul><li>purchase, reviews, website/store visit </li></ul></ul><ul><li>Statements </li></ul>
  13. 14. Tailored Emails
  14. 15. Tailored Emails
  15. 16. Content <ul><li>Content should draw members to the brand by adding perceived value </li></ul><ul><li>Interaction focused.. </li></ul><ul><ul><li>but don’t forget the brand impact </li></ul></ul><ul><li>Incorporate member data into all your emails </li></ul>
  16. 17. Aviva Aim: Encourage engagement with email through value-added content Audience: Customers and prospects Focus: Brand
  17. 18. Subject Lines Riaz. Here's this month's silver tier O2 Rewards update. Full of offers you won't want to miss
  18. 21. Measure <ul><li>Remember loyalty metrics </li></ul><ul><ul><li>Learning Curve </li></ul></ul><ul><ul><li>Frequency </li></ul></ul><ul><ul><li>Decay </li></ul></ul><ul><li>Track key email metrics </li></ul><ul><ul><li>Reach and Frequency </li></ul></ul><ul><ul><li>Revenue </li></ul></ul><ul><ul><ul><li>direct and indirect </li></ul></ul></ul>
  19. 22. Reach vs Open
  20. 23. Market Research: Surveys <ul><li>Exchange value for more information </li></ul><ul><li>Compare behaviour with response </li></ul><ul><li>Filter results back into the programme </li></ul>
  21. 24. Leverage other channels <ul><li>Email is the glue </li></ul><ul><li>Use to: </li></ul><ul><ul><li>Drive offline traffic </li></ul></ul><ul><ul><li>Drive website interaction </li></ul></ul><ul><ul><li>Promote mobile apps </li></ul></ul><ul><ul><li>Promote Social Channels </li></ul></ul><ul><li>Use each interaction as an opportunity to learn more </li></ul>
  22. 25. Rewards <ul><li>Tailor rewards to your audience </li></ul><ul><li>Understand which one is best </li></ul><ul><li>Timely communication (test) </li></ul>
  23. 26. Rewarding email interaction
  24. 27. In summary <ul><li>Clearly identify programme benefits </li></ul><ul><li>Identify key pieces of (accurate) data and email touch points </li></ul><ul><li>Track your key success metrics </li></ul><ul><li>Use market research and behaviour to iterate </li></ul><ul><li>Leverage all channels to both drive interaction and engagement </li></ul><ul><ul><li>but also to learn more and improve </li></ul></ul><ul><li>Adjust rewards messaging based on the individual </li></ul>
  25. 28. @alchemyworx @riazkanani [email_address] 020 7025 2112 Thank You . Questions?

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