7 Secrets of Loyalty Marketing

Making Loyalty Pay:
7 Proven Strategies
Customer Insight Group, Inc. All rights reserved. • www.customerinsightgroup.com • +1 303.422.9758

Customer Insight Group, Inc.
• Systematic New Loyalty Program
• Loyalty Audit
• Loyalty Navigator
• Custom Loyalty Workshop
• Cause Marketing Exploration
• Social Media Roadmap
• Social Media Navigator
• Custom Social Media Workshop
• Data mining
• Market research
• Modeling
• Profiling
• Response analysis
• Segmentation
• Social media monitoring
• Usage and attitudes
• Audience targeted creative
• Blogs
• Content
• Direct mail
• E-mail design
• Landing pages
• Manage online conversations
• Mobile marketing
• Program management
• Social media
• Website design and content
Insight Strategy Execution
Customer Relationships – Engage. Keep. Grow.

Your Presenter Today
Strategist. Leader. Innovator.
 President of Customer Insight Group, a
leading strategic customer relationship-
marketing firm
 Digital Marketing Professor
 2009 Direct Marketer of the Year

Q: What are the secrets
to creating a loyalty program
that pays?”
5

#1 Establish program objectives and
metrics to measure success.
6

…customer retention
…average profit per customer
…frequency of purchase
Increase
7

…in the number of profitable customers
…in the number of new customers
…in the number of brand advocates
Growth
8
2015 Customer Insight Group, Inc. All rights reserved. • www.customerinsightgroup.com • +1 303.422.9758

…number of product categories purchased
…in average transaction size
Lift
9

Fashioning Profitable Customer Loyalty

#2 Make the loyalty program part
of the corporate strategy.
11

Create an internal
communications plan.
 Objectives of the communication plan include:
 Increasing stakeholder understanding of what loyalty program
is doing for company.
 Educating stakeholders on customer insight that is available to
impact and improve strategy, planning and results in their
departments.
 Educating and engaging employees and stakeholders
regarding loyalty marketing activities being executed or
planned to optimize participation and feedback.
 Providing a customer dashboard of the company’s success
through customer metric including customer satisfactions,
retention, repeat purchase rate, conversion rate, migration,
value, etc.
12

#3 Treat different customers differently.
13

54.2% Customers, 0% Purchases.
0% Margin & 0% Visits
27% Customers, 30% Purchases
22.3% Margin & 44% Visits
Inactive
3.3% Customers, 21.4% Purchases,
26.2% Margin & 11.6% Visits
4.1% Customers, 16.9% Purchases
19.2% Margin & 13.2% Visits
11.8% Customers, 31.4% Purchases
32.1% Margin & 31% VisitsOccasional
Frequent
Loyal
Infrequent
Know the customers value to you.
2014 Customer Insight Group, Inc. All rights reserved. • www.customerinsightgroup.com • +1
303.422.9758
14
Teeing up to build customer loyalty.

Deliver value the way the
customer wants it delivered.
 Customer Experiential Benefit Strategy is a customer-centric
approach to align and deliver value that is meaningful, timely
and mutually beneficial to the customer and ultimately the
company as well.
 Initial participation and enrollment benefits
 Cumulative benefits
 Periodic benefits
 Instant benefits
15

Scoring Points with Loyal Customers

#4 Nurture
customer loyalty.
17

Value to the Customer/Member
ValuetotheOrganization
Unqualified
Customer
Prospective
Customer
Advocate
Member &
Customer
Repeat
Customer
18
Create strategy to manage
customer lifecycle.

Retain and grow new
customers.
 Goals
 Increase frequency of purchase
 Increase annual spend
 Get members to purchase a second time and sooner
 Increase number of departments purchased
 Increase in total retention rate of new members
 Increase in number of rewards issued and redemption rate
19

Leverage insight to create
relevant communications.
21

Relevance is vital component of
communications plan.
•Who are they?
•How often do they buy?
•What do they buy?
•When do they buy?
•What is their predicted purchase
behavior?
– Time messages for greatest
impact based on historical
patterns.
– Version messages by customer
segment to meet customers
needs and purchase motivation.
– Design segment based
promotions that feature product
the customers are likely to be
interested in purchasing.
– Identify high-growth customers
within segments to prioritize
efforts and allocate resources.
– Proactively manage customer
relationship to retain and grow
customer life-time value.
Analyzed Customer
Purchase Data
Communications Plan
Zealot
Seniors
Young Americans
Midlife Wealthy
Customer
Segments
22

Gaining profits through
customer insight.

#6 Monitor customer migration.
24

Monitor and proactively manage
your customer’s migration.
 Customer migration is measured by the changed in customer value over time.
 Migration is more powerful tool because it is broader than just defection.
25
Significant upward migration
expected.
Significant
downward
migration
predicted from
these high value
customers.
Forecasted as stable, but there is
room for improvement.
Increase share-of-wallet.

+Customer engagement, “repeated interactions that strengthen
the emotional, psychological or physical investment
a customer has in a brand,” supports loyalty goals.
27

Be responsive to your customers;
let them tell you what they want.
WHAT are people saying about your brand?
WHO are the influencers?
WHAT are they talking about?
WHERE are your customers interacting?
When you know what your customers are saying and what they
want and value, you can create a more meaningful connections.
28

Engaged customers buy more
and refer more.
 The attribute of an engaged customer seen
as most important “recommends product,
service or brand” (58%)
 Engaged customers are “more likely to
convert more readily (44%)
 Engaged customers “purchase regularly”
(36%)
 Engaged customers “less likely to switch
supplier” (30%)
29

Questions?
Sallie Burnett
Customer Insight Group, Inc.
303.422.9758
Email: sallie@customerinsightgroup.com
Website: www.customerinsightgroup.com
Twitter: @sallieburnett
LinkedIn Group: Customer Relationships — Engage. Keep. Grow

7 Secrets of Loyalty Marketing

Recomendados

Recomendados

Más contenido relacionado

Destacado

Destacado (8)

Más de Sallie Burnett

Más de Sallie Burnett (20)

Último

Último (20)

7 Secrets of Loyalty Marketing