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Five Customer Loyalty Tips

Loyalty programs when leveraged to there fullest have the opportunity to drive revenue growth, brand advocacy and maximize customer lifetime value. Yet, marketers continue to barrage consumers with irrelevant messages, low value rewards and impersonal social media engagements. What’s worse – large percent of companies don’t have a strategy for identifying their best customers and building brand advocacy.

Five Tips to Build Customer Loyalty

50% Companies Don't Know Who Is Best Customer1. Know Your Best Customer

It’s a sad fact 50% of companies cannot identify their most loyal customers. I am sure you agree, all customers are not created equal. You need to define your best customers. Avoid rewarding “free riders” — loyalty members who join your program but give you nothing in return, and instead focus your efforts on truly profitable, loyal customers.

2. Build Relationships

Consumer expectations are high. In fact, it is not uncommon for a business to achieve high customer satisfaction ratings, but still experience customer retention problems. Customer loyalty cannot be assumed.  As a result, 85% of retailers are in search of ways to add value to their retail offerings outside of discounts, promotions and/or loyalty programs. Today, it’s how the purchasing experience makes the customer feel —that they’re not just faceless consumers, but highly valued individuals. Just as a friend feels delighted when you buy her a gift she’s long desired, so does a shopper feel an affinity to a store that understands her and caters to them.

3. Be Relevant

Mobile and Customer LoyaltyConsumer’s that have joined a loyalty program expect and want to receive value. 64% of retailers say their loyalty/rewards program is the best way to connect with consumers. But, remember, don’t bombard customers with messages. Develop a multi-channel communications plan that includes in-person, social media, mobile, website, email and direct mail. 57% of mobile users admitted that loyalty programs and points are the top feature in a mobile wallet. Make sure your messages are relevant to the season and customer purchase cycle and have a synergistic message across channels. For example, triggered and personalized email campaigns can ensure that the right content will be delivered to the customer at the most right time, optimized for a device that works for them (laptop, tablet, mobile etc.).

4. Leverage Customer Insight

I was surprised that only 46% of retailers say loyalty programs are the best sales drivers. I expected the number to be a lot bigger. Companies need to proactively engage their customers to grow more profitable (or strategically improve) long-term behaviors of customers. To often companies get bogged down with sales promotions and don’t tailor the benefits and message to meet the needs of the customers.

5. Add Value

By design, a loyalty program is a balancing act between low-cost, easily attainable short-term rewards that are redeemed early in the program, and more highly valued, aspirational (and more costly) rewards that can be redeemed once customers spend more. 61% of retailers use points or benefits through the company’s loyalty program as a means of adding value to the customer relationship. While the short-term rewards encourage enrollment and ongoing participation, the long-term rewards serve as an incentive for your customers to consolidate purchases and award you greater share of wallet.

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Looking for loyalty marketing trends and stats? Check out our loyalty marketing infographics

Kohl’s Integrates Loyalty Program Within Apple Pay

Loyalty ProgramKohl’s Department Stores recently announced it will bring Apple Pay, which has transformed mobile payments with the easy, secure and private way to pay, to customers in all Kohl’s stores nationwide this fall. Kohl’s will also be among the first retailers to integrate both its Kohl’s Charge private credit card as a form of payment as well as its successful Yes2You Rewards loyalty program within Apple Pay.

“Kohl’s is committed to offering an easy and inspiring shopping experience and we will soon bring Apple Pay to customers in all of our 1,164 Kohl’s stores nationwide, in time for the busy holiday shopping season,” said Kevin Mansell, Kohl’s chairman, CEO and president. “Supporting Apple Pay in Kohl’s stores lets us offer customers a convenient mobile payment option that allows them to use their Kohl’s Charge or other credit card while also earning points through Kohl’s Yes2You Rewards loyalty program.”

Apple Pay will be available to all Kohl’s customers including the more than 25 million active Kohl’s Charge card holders across the country. In addition, Apple Pay will be available to the 30 million members of Kohl’s loyalty program, Yes2You Rewards. To get the most out of purchases, Kohl’s shoppers can simply add Yes2You Rewards to the Wallet app in iOS 9 and seamlessly earn and redeem rewards at checkout with Apple Pay. When paying in stores, Yes2You Rewards members can simply hold their iPhone 6 or iPhone 6 Plus near the contactless reader with a finger on Touch ID to receive their individual rewards. On Apple Watch, they just double-click the side button, select their Yes2You Rewards card and hold the face of their Apple Watch up to the reader.

[Source: StreetInsider.com]

 

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.

Consumers Save With Fuel Rewards Coalition Loyalty Program

With the Fuel Rewards national coalition loyalty program, consumers are saving an average of 25 cents a gallon on fuel – nearly $15.5 million a month.

Consumers earn Fuel Rewards savings from 11,000 restaurants, 4,500 retail locations and more than 700 online merchants who participate in the Fuel Rewards loyalty program. Members redeem their rewards as cents-off-per-gallon savings on fuel at more than 12,000 Shell stations nationwide.

“Over the last three years we’ve seen our membership grow in size, frequency, recency, and depth of engagement, despite fluctuating gas prices at the pump,” said Scott Schaper, EVP Marketing and Program Operations of the Fuel Rewards program. “With this upward trend indicating how valuable fuel is as an everyday reward and how satisfied our members are, the question we get asked by merchants is no longer why fuel, but instead how best can we use fuel as a part of our marketing strategy.”

The State of Coalition Loyalty in the U.S. infographic illustrates:

  • Program demographics: Women make up the majority of the membership base at 59%, and 56% of Fuel Rewards households have 3+ members
  • National presence: Cities with the highest concentrations of program members are Chicago, San Francisco, Houston, Los Angeles and Dallas
  • Moving to mobile: Mobile is where it’s at: 56% of visits to the program’s website happen on mobile devices, and 60% of program emails are opened on mobile devices
  • Top online merchants: Members have shopped most at these online merchants to earn Fuel Rewards savings: Lowes, Homedepot.com, Staples.com, Groupon and QVC.com

Fuel Rewards Loyalty Drivers

 

[Source: Business Wire]

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

Southwest’s Rapid Rewards Program is Customer Favorite

rewards program

A newly released survey conducted by Airfarewatchdog names Southwest Airlines’ Rapid Rewards the customer favorite when it comes to frequent flyer programs.

Airfarewatchdog conducted a survey of over 1,500 readers asking them which was their favorite airline loyalty program. Southwest’s Rapid Rewards program earned 32% of the vote. That’s almost double the second-place finisher, Delta’s Sky Miles program, which had 17%.

Southwest awards frequent fliers based on dollars spent, not miles earned – a feature most airlines are adopting now, including United this year. Some perks of the program include no blackout dates for redeeming flights, as well as no change fees.

“Although Southwest can’t fly you to Paris, and it’s not as popular with the OneWorld/SkyTeam/Star Alliance fanatics, it has many advantages for the typical consumer,” Airfarewatchdog president George Hobica said. “Their frequent flier fees (such as change fees or cashing in points) are lower or non-existent. The majors charge $200 to change an award ticket unless you have status in the program.”

On April 17, Southwest will begin awarding flights based on factors such as destinations, time, day of travel and demand.

[Source: Yahoo]

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.

Kellogg’s Improves Family Rewards Program

rewards program

Kellogg’s has made changes to its Kellogg’s Family Rewards program. Members no longer need to enter codes found on the inside of packages, making it easier than ever for people to collect points and earn rewards.  Plus, more Kellogg brands are participating in the program, so more purchases than ever provide points which may be redeemed for high-value coupons, gift cards, sweepstakes and merchandise. Members can also donate to U.S. K-12 schools or a variety of hunger-relief charities.

Kellogg is the first consumer packaged goods company to use a combination of retailer frequent shopper integration and receipt scanning to collect points for purchase. With these technology enhancements, points for Kellogg foods purchased at U.S. retailers with participating frequent shopper programs will automatically be added to members’ Kellogg’s Family Rewards accounts, when shoppers link their retailer membership  number to Kellogg’s Family Rewards. For purchases at retail locations without participating frequent shopper programs, members can simply take a photo of their receipts with their mobile phones and text or upload them to Kellogg’s Family Rewards to collect their points. Members can also use a digital camera or scanner, and upload receipts from their computers, if they prefer.

Programs like Kellogg’s Family Rewards have become an important part of the U.S. retail landscape, driving consumer engagement with the companies whose products they purchase. According to AC Nielsen, more than 60% of U.S. households say loyalty programs are important in their shopping decisions. However, despite their popularity, one of the challenges people have with these programs is collecting and entering points tied to purchases.

[Source: PR Newswire]

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

Big Data Was All The Rage. What’s Next?

Now that marketers have so much more data, they want to use the data to become more customer centric. Fifty-three percent of marketers surveyed stated a need to be more customer centric and 9 in 10 say individualized marketing is a priority. See the 2015 Global Data-Driven Marketing Survey conducted by Teradata for additional information.

More and more marketers are concentrating on individualizing marketing campaigns and finding ways to relate more personally to their customers and prospects. However, a major road block for many organizations is data integration. While many marketers are able to integrate some of their data, few are able to fully-integrate the data available throughout their organization. Quite often valuable information that would make marketing smarter is just not available to marketers.Marketing Data

Data integration

Marketing data is generally located throughout an organization because different entities are collecting data through different avenues. Therefore, most companies have marketing data spread out within their organization in systems such as, transactional and operation systems, web tools, CRM tools, ESP’s and content management systems. Many of these systems have no way of sharing data, nor does the data in one system match up with the data in another system—making data integration extremely difficult.

Why is data integration necessary?

If marketers only have marketing data related to consumers’ online activities, they may miss valuable information about the inquiries or purchases made through offline entities or systems. For example, a marketer would have no idea that an individual tried to make a purchase through their web site, but had additional questions, problems with their transaction or didn’t feel safe putting their credit card information into an online system and decided to call the call center to purchase the product. Without the information from the call center, the marketer has no way of knowing the prospect actually is now a customer. Nor do they have the ability to help make the purchasing process easier for the individual by addressing their reasons for purchasing through the call center instead of the website.

To learn as much as you can about your customers and prospects, it is imperative to access all of your marketing data and roll the attributes up to an individual level to create a holistic view of your consumers. The illustration of your customer set provides knowledge that helps marketers develop strategic strategies and goals based on facts, not hunches.

Marketing data is the foundation for successful marketing and sales goals; and fully-integrated, pristine marketing data is no longer a nice to have, but a necessity to leverage marketing & sales systems in order to drive marketing programs, campaigns and sales.

Benefits of Integrated Data

 

Customer Insight Group Guest Blogger

 

 

Dovetail Marketing

Dovetail provides marketers with a marketing database solution that fully-integrates marketing data from across an organization into a scalable solution that will grow with your company. In addition, Dovetail performs routine updates and maintenance to ensure your data is always fresh and actionable, provides a variety of reporting and analyses options and leverages pristine, integrated data into other marketing and sales platforms. To learn more about Dovetail’s marketing data solution, visit us at http://www.dovetaildatabase.com/data-driven-marketing/.

Study: Are App Frustrations Loyalty Crushers?

While a slow checkout line, an awkward return process or a snarky sales associate can play havoc with consumer loyalty, a poor app experience can be equally detrimental, argues CA Technologies.

Declaring brand loyalty now has a “six-second shelf life,” the software maker concluded in a new report that brands not delivering a positive application experience risk losing as much as a quarter of their customer base.

The study, “Software: the New Battleground for Brand Loyalty,” surveyed 6,770 consumers and 809 business decision makers in 18 countries exploring the app user experience. It identified three characteristics that have the biggest impact on the consumer experience:mobile app chart

Quick Loading: 68 percent of consumer respondents who left a brand because of poor load times say a loading time of six or less seconds was acceptable. Slightly more than half of those respondents demand a load time of less than three seconds.

Simple Functionality: More than 70 percent of consumers ranked “perform tasks with little difficulty” and almost 80 percent ranked applications that have “easy to use features” as top drivers of their decision to utilize or purchase an application.

The Assurance of Security: Out of users who had a fair or poor experience, 10 percent said that they would leave a brand forever because of issues with security.

Specifically around retail, the survey found

  • 47.7% of respondents had used an app to shop at least once over the last six months.
  • 46.3% had made online purchases with an app over that period.
  • 44.2% had researched a potential purchase.

Showing the widespread acceptance of apps, more than half of respondents would be willing to use apps to perform tasks like paying taxes, managing healthcare and voting in elections.

“Consumers no longer view applications as nice-to-have novelties. They now have a huge impact on customer loyalty,” said Andi Mann, VP, strategic solutions, CA Technologies. “As businesses navigate a new, always-connected reality that produces vast amounts of ambient data, they must react by delivering a personalized, secure and engaging application experience.”

[Source: Retailwire, Read More]

Corinthia Hotels Announces Rewards Program

Corinthia Rewards Program

Corinthia Hotels rewarding customers who book their stays online directly through their website. Corporate and leisure guests booking through corinthia.com can earn rewards from free room upgrades and complimentary late checkouts to discounted meals and spa treatments at the European hotels.

Guests booking through corinthia.com will also be given the chance to ‘Win Back Your Stay’ by using Facebook connect upon confirmation of booking. The cost of the winners’ reserved room nights will be fully refunded upon their arrivals at the hotels.

This is part of the group’s efforts to reward customer loyalty, and attract customers to corinthia.com. Rewards vary depending on which Corinthia hotel guests are checking into. Learn more

“We’re thrilled to announce the launch of this new reward scheme across Corinthia Hotels. It’s our way of thanking our loyal customers booking through the website, as well as incentivising those not yet doing so. With hundreds of websites through which people can book a stay, we’re making it easier for Corinthia guests and giving them the best value on  – corinthia.com!” says Brian Pratt, Senior Vice President of Loyalty, Distribution, Partnership & MIS at Corinthia Hotels.

[Source: Corinthia Hotels]

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

New Loyalty Program Allows Players to Earn PUCK BUCKS

Canlan Ice Sports Corp. announced the launch of Puck Bucks, a mobile-based loyalty program for members of Canlan’s Adult Safe Hockey League (ASHL).

Loyalty program

Members can use their smartphone to flash their mobile loyalty card at any Thirsty Penguin Grillhouse location in Canlan ice rinks to earn a minimum of 5% of their purchase back in Puck Bucks. Members can redeem Puck Bucks on the ASHL website towards reducing their league fees.

“The PUCK BUCKS loyalty program is ideally suited to the Thirsty Penguin and its most important customer group, players in Adult Safe Hockey League,” said Ian Irving, Director of Food & Beverage at Canlan Ice Sports. “It is easy to use, doesn’t require carrying another card in your wallet, and provides a reward that is highly valued by its users. Canadians love loyalty programs and support the businesses that provide the best ones.”

“Up until now, the only way for Club Hockey Canada’s members to earn PUCK BUCKS was through the purchase of hockey-related items in our online store. Canlan’s program is providing a unique new approach for our adult members to earn PUCK BUCKS, when purchasing food and drinks at the Thirsty Penguin,” said Jonah McEachern, Director of Operations at Hockey Canada. “Plus the addition of mobile functionality to CHC means that there’s even more opportunities available for Hockey Canada to explore in our goal to help Canadians lower the cost of hockey.”

More than 800 ASHL teams have players that have participated in the program since the launch at the beginning of the 2014 hockey season, with almost $30,000 in PUCK BUCKS awarded in the first four months.

“From the outset, our goal was to create a loyalty program that was easy to use and provided significant value to the ASHL’s members,” said Steven Hoffman, President and CEO of Exchange Solutions. “An added benefit is that the data tracking and analysis capabilities of our customer engagement platform can provide Canlan the capacity to better understand their customers, allowing the company to be much more targeted in providing relevant offers and promotions to players and teams.”

ASHL players can download their mobile Club Hockey Canada Card from the Club Hockey Canada website at http://www.clubhockeycanada.ca.

[Source: Pressreleaserocket, ASHL]

 

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.

Marketing Segmentation Gives Marketers an Edge in the Market Place

Today, more than ever before, marketers recognize the need for targeted marketing. Consumers receive so many messages on a daily basis that they are forced to quickly identify and filter out irrelevant messages. Marketers are now left with the tough job of quickly enticing an individual before they decide the message is not worth their time.

The key to reaching your marketing goals and increasing sales is marketing to the right consumer, at the right time with the right message. Segmentation allows marketers to group individuals into specific targeted groups. When marketers know their audience, they are able to create targeted messages or offers that will resonate with their recipients—greatly increasing the odds that the individual will actually read the message and take action.

Marketing Segmentation

A fully-integrated, centralized marketing database solution is a necessity to support consumer segmentation. Valuable marketing data exists throughout an organization. Once all of the marketing data has been identified and put together into a central location, marketers have the ability to perform highly targeted segmentation. Using information such as, geographics, demographics, firmographics, lifestyles, lifecycle stages, purchase behaviors, purchase history, upcoming birthdays or anniversaries, marketers easily create finely tuned, targeted marketing lists.

Knowing the marketing campaign audience, marketers are armed to masterfully create offers that speak to their campaign recipients—offering products and services that will meet their needs. In addition, marketers have the ability to personalize messages and show their consumers that their organization perceives them as a person who has specific needs and wants. When marketers use a consumer’s name, recent purchases, upcoming events or special offers, an organization communicates to their customers that they care about them as an individual.

Segmentation empowers marketers to refine a marketing message for a set group of people to ensure the right consumers receive the right message, at the right time.

 

Customer Insight Group Guest Blogger

 

 

Dovetail MarketingDovetail provides marketers with a marketing database solution that fully-integrates marketing data from across an organization into a scalable solution that will grow with your company. In addition, Dovetail performs routine updates and maintenance to ensure your data is always fresh and actionable, provides a variety of reporting and analyses options and leverages pristine, integrated data into other marketing and sales platforms. To learn more about Dovetail’s marketing data solution, visit us at http://www.dovetaildatabase.com/data-driven-marketing/.