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Find out what makes loyalty programs like Sephora’s, The North Face, and Nordstrom successful. Get actionable takeaways on creating a tiered loyalty program with a benefits structure your customers will engage with and aspire to reach.
It is cheaper to retain existing customers than continually market to get new ones. A 2018 survey conducted by McKinsey & Company found that 40% of e-commerce subscribers had canceled, so it is vital to engage with your customers early and regularly in their subscription to increase the “sticky factor.” A loyalty program can help drive this retention.
Customers who have a genuine emotional connection to a brand are both more likely to share data and less likely to look elsewhere. The foundation of a customer relationship is trust, and companies must understand their customers’ attitudes about data sharing and privacy and build a sense of trust with those customers. Here are the steps companies can take to build consumer trust and encourage customers to share data.
There are several metrics for measuring customer loyalty, and marketers need to adjust their strategic approach in response to how consumers think about loyalty to a brand, what they care about, what they buy, and, more importantly, what drives their loyalty.
As a loyalty trend, we see a rise in brands recognizing the value of engaging belief-driven buyers, both inside their loyalty programs and beyond. There are essentially two types of social good campaigns. Some use the message itself to promote their products or services, while others focus on driving awareness for the message. Brands need to speak up about issues that matter to the company and customers.
Boosting customer loyalty is an ongoing challenge for marketers. From games to VIP perks, gamification, and social media engagement to personalization, when companies know what customers want and provide that to them, they will be more likely to reward them with a long and loyal relationship.
Customers are quick to jump to a competitor if they are offered coupons or other discounts, but restaurant customer loyalty programs can ensure that they keep coming back. Contests and sweepstakes, as well as savings, can build brand loyalty.
Consumers also use their phones at every stage of the buying process, from exploring what is available to using coupons, purchasing a product, and then continuing to engage with the company. Mobile technology offers unique opportunities to both retailers and customers to instantly add points and redeem personalized, location-based rewards. This, in turn, drives engagement and increased loyalty.
Companies can use gamification marketing to drive engagement, which is key to loyalty. In a recent study, nearly one-third of all participants and 40% of millennials say there should be games with loyalty programs. One advantage of using games to drive loyalty is that gamers are more likely to be active on social media. This means they can spread the word about their fun and engagement with others.
Future of Business and Tech – 10 Rights and Wrongs of Loyalty Programs
The Review – How To Overcome the Loyalty Program Participation Slump
The Review – Tips for Marketing with Facebook and Snapchat
The Review – New Data: Insights into the Evolution of Email Marketing
The Review – Study Reveals Email Marketing Best Practices for 2016
The Review – Designing Loyalty Program for Affluent Consumers
RMDMA: DirectLine – Loyalty Programs Increase Share of Wallet.
RMDMA: DirectLine – Marketing Relevance Imperative!
RCI Ventures – In Pursuit of Happiness!
ECommerce Times – The Retail Industry’s CRM Implementation Problem.
CRM Buyer – The 4 Cornerstones for CRM Retail Investment.
Caribbean Business – Search Engine Optimization Meets Social Media.
The Review – It’s Not the Channel. It’s the Relationship!
RCI Ventures – Innovate 2012: Sallie Burnett, Customer Insight Group
Rocky Mountain Direct Marketing Association – New year, big plans: How to leverage customer loyalty in your 2012 strategy
DenverPost.com – Denver-backed “cash mob” calls on small book shop.
Denver Metro Small Business Development Center – Busting the Top 5 Socail Media Myths
The Review – Social Media: What It Can Do For You
– Marketing 101: Social Media is Rooted in the Basics (1/2/13)
Gamification.com – Time to Overhaul Your Loyalty Program? 7-Steps to Long-term Success.