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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/.

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.

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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.

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.