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Study: 62% of Millennials Feel Online Content Drives Brand Loyalty

A recent study revealed that 62% of millennials feel online content drives brand loyalty and 32% find today’s brand communications helpful.

The study, called The Millennial Mind: How Content Drives Brand Loyalty, revealed that content must be educational, truthful and personalized to influence brand loyalty and purchase behaviors in this age group. The study surveyed more than 500 U.S. millennials in Oct. 2014, to obtain the results.

Millennials and Brands

When asked how much they read communications from brands:

  • 15% said always.
  • 31% said most of the time.
  • 30% said sometimes.
  • 16% said rarely and 2% said never.

As show in the chart below 77% of millennials credit a great product with determining brand affinity.

millennials and brands

 

Content Sharing Amongst Millennials

Millennials prefer content that is:

  • 54% tailored to their age.
  • 55% tailored to their location.
  • 63% tailored to their cultural interests.

When asked “What gets you to share?”

  • 72% it needs to be funny.
  • 62% it is thought provoking.
  • 51% it is relevant to their circle of friends.

Millennials consume content across a number of different platforms. Google and Facebook win when it comes to searching for content. Facebook also leads the
charge when it comes to sharing content for millennials.

content sharing

“Millennials today value quality over quantity when it comes to content marketing,” said Shafqat Islam, CEO and Co-founder, NewsCred, in a company report.

“Millennials don’t want to have to work to find the value in a sea of sales messages. Brands can earn millennials’ trust, loyalty and share of wallet with the right content – but they need to invest in being a helpful partner that respects the characteristics, interests and qualities that make each millennial unique.”

[Source: Newscred]

Engage, keep and grow your customer relationships.

Need some guidance and expertise in developing a loyalty program? Maybe a loyalty workshop designed just for your business would make all the difference in driving your program forward. Look to the experts at Customer Insight Group for the advice and experience you need.

Target Quietly Launches New Loyalty Program

target loyalty program

Target is testing a new rewards program that gives shoppers 5 percent off on a shopping trip, each time they spend $500 at the discount store. The loyalty program called REDperks is being tested is an app-based mobile program that is “currently available only by invitation in select markets,” according to Target’s REDperks website. Shoppers earn 10 REDperks points for every dollar they spend.

“We believe this loyalty program is a good addition to Target’s offering as it can help reach less frequent guests who are not interested in opening a REDcard account or who are unbanked,” according to Piper Jaffray analyst Sean Naughton. “We expect the company may talk about new efforts to drive store traffic, REDperks being one, when Q4 results are released next week and at the analyst day the following week in New York.”

[Source: StreetInsider.com]

Want to learn more about loyalty marketing? Schedule a loyalty marketing workshop. Here is a sample Loyalty Workshop agenda.

Want to learn more about loyalty marketing? Checkout these resources:

Loyalty Marketing Blog
Loyalty Marketing Infographics

White Papers & eBooks

 

 

Baskin-Robbins Updates Customer Loyalty Program

 Loyalty Program

Baskin-Robbins will unveil an online ordering system and digitally driven customer loyalty program this year.  The brand is integrating its current Club 31 member databases into the new platform. Members will have the choice of using a traditional card or the mobile app in-store, and can access an online membership portal.

The ice-cream brand’s local marketing manager, Geraldine Van Der Merwe, said, “We have a wide demographic and while we need a consistent message, we need to look at how to deliver that to target markets moving forward. We have data from our existing loyalty program but we want to widen the types of information we ascertain via digital channels, such as purchase behaviors and location.”

To growing and driving brand awareness Baskin-Robbins is making larger investments into social and digital channels as well as content to help consumers gain a clearer and more consistent understanding of the brand. The objective is to equally drive customer acquisition as well as retention.

Members of Club 31 will have the choice of using a traditional card or mobile app in-store, and can access an online membership portal. This digital capability, in turn, will give Baskin-Robbins more data points on its customers as well as the ability to target offers and information based on behavioral and location information.

[Source: CMO]

Engage, keep and grow your customer relationships.

Need some guidance and expertise in developing a loyalty program? Maybe a  loyalty workshop designed just for your business would make all the difference in driving your program forward. Look to the experts at Customer Insight Group for the advice and experience you need.

 

Key Elements of Successful Customer Loyalty Programs

Do loyalty programs really work? Can a loyalty program change customer’s purchase behavior and get them to spend more money with a company? Can loyalty programs reduce the likelihood that customers will move their business to a competitor? The answer to all three questions is yes. There is, as you would guess a caveat.

Marketers must first understand what loyalty marketing can and cannot do for a business. This article starts by defining loyalty marketing and then applies the definition to today’s current environment for loyalty programs and outlines the four key elements of successful customer loyalty programs.


Definition of Loyalty Marketing

First, let’s start with the definition of loyalty marketing. Loyalty marketing is defined as the, “Discipline of identifying and nurturing the yield of best customers through a long-term, reciprocity, value-added relationship. “

There are four key elements in the definition: discipline, nurturing, yield and reciprocity. 

Discipline: Loyalty is not about short-term promotional tactics or a points program that is launched today and forgotten. It is needs to be a set of ongoing customer interactions that consistently exceed the needs and expectations of the customers.

It sounds so simple, this idea of building a relationship, but in practice, it’s an ongoing evolution that requires constant diligence, care and reshaping along the way. Just as a brand begins to understand their customers through data, purchase behavior and ongoing shopping patterns, it never fails that the customer then evolves too. Understand right away that relationship building is a constantly moving target and will require resources and dedication to make it work in the long run.

Some see the chart below as a list of challenges marketers face. We look at them as a list of opportunities and mistakes to avoid.

Loyalty Marketing in 2015

Nurturing: Companies need to proactively engage their customers to grow more profitable (or strategically improved) long-term behaviors of customers. To often companies get bogged down with sales promotions and don’t stop to put the customer’s needs at the center of their strategy. According to Forrester’s research, State of Loyalty Programs, marketers are failing to engage members. Forrester’s study found that on average, only 45% of customers enroll in loyalty programs and only 35% of them redeem awards. This means about only 16% of the customer base is actually using the loyalty programs.

Marketers Need to Nurture Customer Relationships

Action Steps: There is a real opportunity in 2015, for loyalty marketers to:

  • Focus efforts and resources to gain the greatest ROI.
  • Version messaging by customer segments to meet customer needs and inspire incremental purchases.
  • Leverage customer insight to improve business process.
  • Communicate. Communicate. Communicate. Have a communication strategy to actively engage new member and to grow the customer relationship.
  • Create a differentiated value proposition and customer experience to engage customers and improve retention. Understand who is earning rewards, who is not and who earns and doesn’t redeem. Program benefits are not compelling if they don’t impact customer behavior.

Yield: By cultivating the customer relationship we expect that there will be a product of our efforts. This can be measured in growth, frequency of purchase, transaction size, profit per customer. Depending on your business goals, you may also want to measure customer satisfaction, retention, referrals, new member enrollment, active member participation and reward redemption.

Measure Success of Loyalty Program

Action Steps: If you’re developing a new loyalty program, define your business objectives. What do you want to achieve. Then, plan for how you will measure success. If you’ve had a loyalty program for a while, ask yourself, “Is my loyalty program strategy aligned with our business goals?” If not, start with clarifying business goals, given that loyalty programs can produce a variety of benefits. Next, reengineer your program’s reward structure, and create incentives powerful enough to change buying behavior but not so generous that they erode your margins.

Reciprocity: You have a mutual dependence, action, or influence. It is a give and take relationship. A customer spends money, provides personal data and hopefully becomes a potential advocate of the organization. The company gives the customer recognition, uses the information to better meet the customers needs and may reward them for their loyalty.

Action Steps: Deliver value the way the customer wants it delivered. Use a Customer Experiential Benefit Strategy  to align and deliver value that is meaningful, timely and mutually beneficial to the customer and ultimately the company as well. In developing your program, we recommend a mix of the five types of benefits.

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Who is Customer Insight Group?

Customer Insight Group, is a Colorado based loyalty marketing agency leading the way in helping companies engage, keep and grow profitable customer relationships.

Loyalty Programs Excel with Right Mix of Program Benefits

Bon Ton Loyalty Program Benefits

With more than 20 years of experience in developing and enhancing customer loyalty programs for companies like The Bon Ton, Dick Sporting Goods and others, we know how important it is to use 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.

When developing the loyalty program benefits strategy for a new loyalty program, Customer Insight Group uses a mix of the five types of benefits to achieve your business objectives:

  • Initial Participation and Enrollment Benefits: Create instant gratification and affinity with the company. These are the core set of benefits members enjoy upon applying for program membership.
  • Cumulative Benefits: The more a customer exhibits the desired purchase behavior the more he/she is recognized and rewarded. Often times, this type of benefit is associated with a points or rewards program where a customer accumulates points to earn a specified rebate or dollar off reward certificate.
  • Periodic Benefits: Strategically invest markdowns by targeting discounts and special offers based on the customer’s previous purchase behavior.
  • Instant Benefits: Unexpected “little surprises” that occur spontaneously from the customer’s perspective reinforce the sense of belonging and increase share of wallet.
  • Emotional Benefits: Explore and reinforce the customers’ emotional connections with the brand with benefits that are unique to the company and to the brand.

In addition to varying the benefits based on your business objectives, we also tailor the benefits based on your customers’ anticipated reaction.  A recent study that is soon to be published in the Journal of Consumer Research shows that consumer reactions vary widely across cultures to special recognition and free gifts associated with loyalty programs.

Learn more about the study published in The New York Times.

—–

Who is Customer Insight Group?

Customer Insight Group, is a Colorado based loyalty marketing agency leading the way in helping companies engage, keep and grow profitable customer relationships.

How Do You Define Customer Loyalty?

Many people associate the quality of loyalty with their families, close friends, even their dogs. Loyalty plays a part in most of our daily activities. The brand of toothpaste most of us use each morning probably is one we have used for years, as maybe our coffee, soap and cleaning solutions. We generally order from the same pizza delivery service, visit a dry cleaner whose face we know and whose reputation we trust.

As a result, when I looked up the word ‘loyalty’ in the dictionary, I wasn’t surprise by its definition: “Faithfulness; advocacy, devotion; constancy”.

Definition of Loyalty

Now, when you ask marketers how do you translate loyalty into business terms, there is a lot of confusion. Are you talking about a rewards credit card, or is it a grocery discount card? Or are you talking about a coalition program? Frequent shopper program? Or is it an email club? Punch cards? I don’t want you to get bogged down by these tactical descriptions of marketing programs. Instead, I want to give you a definition of loyalty marketing that provides you and your organization a strategic focus.

After helping over twenty-five Fortune 500 companies understand the drivers of loyalty and defection from the customers’ point of view, I define loyalty marketing as: “Discipline of identifying and nurturing the yield of best customers through a long-term, reciprocity, value-added relationship.”*

Definition of Loyalty Marketing

This definition speaks to your CFO as well as your customer experience manager.

Now that we have some common definitions, it’s time to concentrate on the hard stuff: nurturing customer loyalty. My upcoming blog posts will focus on five key elements of successful loyalty marketing:

  1. Insight — Create a competitive advantage
  2. Precision — Treat different customers differently
  3. Relevancy— Make it resonate
  4. Reciprocity — Deliver value in every interaction
  5. Yield — Gain an amount as a return on an investment

* Definition is trademarked to Customer Insight Group, Inc.

How do you justify a loyalty program?

Trying to justify a loyalty marketing program? Here are  8 major benefits, each a competitive advantage, only a loyalty program can provide.

Who is Customer Insight Group?

Customer Insight Group, is a Colorado based loyalty marketing agency leading the way in helping companies engage, keep and grow profitable customer relationships.

Rawlings Launches Loyalty Program

Loyalty Program

Rawlings Sporting Goods Company announced the launch of Rawlings Rewards, a rewards program designed to target some of its most loyal customers.

The loyalty program encourages repeat purchases, subsequently building a database of brand ambassadors for future marketing ventures.  Rawlings Rewards will be accessible via the e-commerce portion of the brand’s website at RawlingsGear.com.

“One of our key initiatives heading into 2015 is to invest in digital opportunities pertaining to our internal web properties and substantially grow our e-commerce business as a result,” said Mike Thompson, executive vice president of marketing for St. Louis-based Rawlings. “Rawlings Rewards is an avenue to help us achieve our fiscal goals while recognizing and rewarding our brand enthusiasts.”

The program is free to join and requires a minimum level of customer information to be submitted during the enrollment process. Consumers earn one point for every $1 dollar they spend on merchandise at the base “Red” level, and 1.25 points for every $1 dollar at the “Gold” level, a tier achieved upon earning 500 points. For every 250 points earned, a $10 dollar coupon is awarded which can be used for online purchases. There is no expiration of points issued in the program.

[Source: PR Newswire/Photo Source: Rawlings]

Want to learn more about loyalty marketing? Schedule a loyalty marketing workshop. Here is a sample Loyalty Workshop agenda.

Want to learn more about loyalty marketing? Checkout these resources:

Loyalty Marketing Blog
Loyalty Marketing Infographics

White Papers & eBooks

Krispy Kreme Launches Customer Loyalty App

krispy kreme loyalty program

Krispy Kreme recently introduced My Krispy Kreme Treats customer loyalty App. A loyalty app that allows customers to use their iOS and Android smartphone technology to earn reward points and redeem them for free food and drinks.

“The new My Krispy Kreme Treats App is designed as a complement to our existing guest engagement offerings,” says Dwayne Chambers, Chief Marketing and Innovation Officer for Krispy Kreme.

“The brand currently has a 900,000-member Friends of Krispy Kreme e-club, and its Hot Light App has had over 100,000 downloads since its launch. The My Krispy Kreme Treats App not only provides our retail guests faster and more convenient service at checkout, it also enhances our connection with our most loyal fans as we celebrate them with personalized surprises and delights throughout the year, and easy-to-earn reward points redeemable for their favorite Krispy Kreme products at their convenience.” says Chambers.

The App’s user-friendly functionality allows guests at shops in the initial test markets to store value and make mobile payments with a virtual gift-card, while earning reward points redeemable for free doughnuts, coffee and other beverages. App users receive a free doughnut for enrolling, a free doughnut and beverage on their birthday, and surprises and delights throughout the year.

[Source: Krispy Kreme]

Want to learn more about loyalty marketing? Checkout these resources:

Loyalty Marketing Blog
Loyalty Marketing Infographics
White Papers & eBooks

RiteAid Rewards Loyal Customers

RiteAid Loyalty Program

Rite Aid announced it’s offering members of their wellness+ loyalty program the opportunity to receive lifestyle and entertainment rewards for every $50 spent in stores on participating products through January 24.

Members of the free wellness+ loyalty program can look for the red “Buy & Earn” symbol on store shelves. Once wellness+ members purchase $50 of qualifying products, they will receive a Unique Reward Code on the bottom of the register receipt. Customers can make multiple visits and purchases to reach the reward thresholds of $50, $100, $150, $200 and $250 receiving a new code at each threshold up to a total of 5.  The codes may be used individually or added together to redeem for bigger and better rewards.

“We wanted to offer something special to our most loyal customers – wellness+ members – as we enter the New Year, as a way to thank them for their business,” said John Learish, Rite Aid senior vice president of marketing. “By participating in ‘Happy You Year,’ our customers have the opportunity to earn a reward of their choosing, and with rewards ranging from an evening out with the family to a fitness class or a day at the salon, there’s something for everyone.”

[Source: RiteAid]

Engage, keep and grow your customer relationships.

Need some guidance and expertise in developing a loyalty program? Maybe a  loyalty workshop designed just for your business would make all the difference in driving your program forward. Look to the experts at Customer Insight Group for the advice and experience you need.

Alaska Airlines’ Loyalty Members Get New Perk in January

 

Alaska Airlines Loyalty Members

This January Alaska Airlines is waiving its standard $25 bag fee to encourage new and existing loyalty members to experience the benefits of Alaska’s award-winning frequent flier program.

All checked bags come with Alaska’s baggage service guarantee. If a customer’s checked bag does not reach baggage claim within 20 minutes of the plane’s arrival at the gate, the customer is entitled to a $25 discount for use on a future Alaska Airlines flight or 2,500 Alaska Airlines Mileage Plan miles.

Alaska Airlines Mileage Plan, which ranked highest in J.D. Power’s 2014 Airline Loyalty/Rewards Program Satisfaction Report, stands apart from other airline frequent flier programs.

“We are excited to offer all Alaska Airlines Mileage Plan members a great perk when they fly with us during January – one free checked bag,” said Caroline Boren, Alaska Airlines’ managing director of loyalty marketing and customer care. “Starting the year by sampling Alaska’s award-winning loyalty program and beginning to earn miles toward a weekend getaway or the vacation of a lifetime is a great way to kick off 2015.”

[Source: PR Newswire/Photo Source: Alaska Airlines]

Want to learn more about loyalty marketing? Schedule a loyalty marketing workshop. Here is a sample Loyalty Workshop agenda.