1 Customers for Life: Developing Loyalty Through Marketing Wendy Lowe Regional Development Director Protus
2 Agenda What is loyalty marketing? The importance of loyalty to your business. Loyalty driving s: Welcome s Trigger Campaigns Drip campaigns Transactional messages Newsletters Understanding your customers to personalize and segment your messages Other loyalty tactics with Referral Programs Periodic Thank You s Reward Programs Using social media Testimonials Transparency
3 What is loyalty marketing? An approach to marketing in which a company focuses on growing and retaining existing customers. Exceptional service Exceptional products Exceptional communication Information Gifts Rewards programs Invites Other
4 It s far less expensive to retain a customer you already have than to find and acquire a new one.
5 Loyalty is: bond reliability dependability truthfulness faithfulness devotedness fidelity support integrity allegiance honesty honor truth attachment sincerity
6 Arnold Molder, Tridac Corporation Limited my mortgage broker loyal to his services for almost 10 years is the only brand that I can say I m truly loyal to my business mentor
7 Why am I so loyal to Arnold? Brilliant business person! Educated me. Got me the best deal. Provided added value not necessarily related to a mortgage. General financial advice Education advice Keeps in regular contact. Rate Watch s Mortgage Monitor Monthly letter, signed personally, encourages referrals Blog Recognized me as a unique and valued customer. Home Depot, coffee and movie gift certificates 3 subscriptions to home and garden magazines Piggy Bank = many, many business referrals!
8 I ve referred 19 people (and growing) his way Wendy Brother Mom and Dad Cousin, Jodi Friend, Anil Friend, Julie Friend, Kevin Jordan Steve M. Kirsten Kris Ken Kevin s Parents Smiths Pinckards Shelly Brother, Steve Haynes Catharine Forsbreys
9 In Arnold s words, on how to develop true customer loyalty: The most important aspect is to be honest, truthful and do it from a level of integrity.
10 Only 15% of companies provide the kind of Wow service experience that is predictable and distinctively valuable to serve as a foundation for loyalty. Forum Corp.
11 Customer loyalty is determined by three factors: 1. Relationship strength New customer versus old? How well do you know your customer? Number of interactions Number of memorable experiences Perceptions of quality Customer commitment to the relationship Source: Kaj Storbacka, Tore Strandvik, and Christian Grönroos (1994), The Service Quality Model
12 Customer loyalty is determined by three factors: 2. Perceived alternatives How many competitors are in your space? Are you the market leader? How does your service or product stack up against the competition? Source: Kaj Storbacka, Tore Strandvik, and Christian Grönroos (1994), The Service Quality Model
13 Customer loyalty is determined by three factors: 3. Critical episodes Positive: Negative: You send a gift certificate out of the blue to your most loyal customers for a free coffee. A customer calls customer support and is on hold for 30 minutes. Source: Kaj Storbacka, Tore Strandvik, and Christian Grönroos (1994), The Service Quality Model
14 Do all interactions with customers need to be 100% positive? No!
15 The Emotional Bank Account Steven Covey People make deposits into your emotional bank account. Occasionally, something goes wrong and a withdrawal is made. It s okay as long as the overall balance is positive. Businesses have an emotional bank account with their customers. The trick is to stay in the black! Source: The Seven Habits of Highly Successful People
16 Why are loyal customers important to your company? Loyal customers are more profitable! Less inclined to switch to competitors Less price sensitive Initiate free word of mouth promotions and referrals More likely to purchase ancillary products Are less expensive to service Make your employees' jobs easier and more satisfying happy employees feed back into higher customer satisfaction. Source: Buchanan and Gilles (1990)
17 If you don t already have one, now is the time to put a customer loyalty strategy into place!
18 How do you develop loyalty through marketing?
19 Agenda What is loyalty marketing? The importance of loyalty to your business. Loyalty driving s: Welcome s Trigger Campaigns Drip campaigns Transactional messages Newsletters Understanding your customers to personalize and segment your messages Other loyalty tactics with Referral Programs Periodic Thank You s Reward Programs Using social media Testimonials Transparency
20 Before you get started Know your customers! Periodically call your customers or talk to them in store Do quarterly or annual customer surveys Zoomerang.com Online newsletter sign up forms ask basic questions First name, last name Geography Telephone number Date of birth
21 Before you get started Know your customers! Ask for feedback in your s campaign analysis If you have the systems in place: Track what they purchased Track when they purchased Track if they abandoned their shopping cart
22 Understand your customers pain points! One of the secrets to gaining true brand loyalty through interactivity is to offer to solve a recipient s particular pain point. Marketing Sherpa Best Practices in Marketing Handbook
24 Always segment for a more impactful message Segmentation: the process of dividing your contact list into special groups for a more targeted message. Former customers versus existing customers Loyal customers versus new customers Male/Female Birthday Age Past Purchases etc.
26 Agenda What is loyalty marketing? The importance of loyalty to your business. Loyalty driving s: Welcome s Trigger Campaigns Drip campaigns Transactional messages Newsletters Understanding your customers to personalize and segment your messages Other loyalty tactics with Growing your contact list Periodic Thank You s Reward Programs Referral Programs Using social media Testimonials Transparency
27 Welcome s Welcome customers How to get started How to use the product How to get the greatest value from the service Contact info for follow up Past newsletter issue or other content Video, podcast or game Share your brand s story Survey Coupon * Make sure you send the welcome in a timely fashion! Source: Marketing Sherpa Best Practices in Marketing Handbook
28 Trigger Campaigns s sent based on behavior or absence of behavior May be sent manually or automatically More relevant than other campaigns because catching them at a critical time. Efficient Plug and play should monitor them on a regular basis for effectiveness but are a great alternative for busy marketing departments. Competitive Advantage get a leg up on the competition addressing your customers unique pain points. Increased customer lifetime value
29 e.g. Empty Shopping Cart
30 e.g. Sorry we missed you
31 Drip Campaigns A communication strategy that sends, or "drips," a prewritten set of messages to customers or prospects over time. the timing of the messages follow a pre determined course the messages are dripped in a series applicable to a specific behavior or status of the recipient. 1: Day 1 2: Day 4 3: Day 14 4: Day 21 Source: Wikipedia
32 e.g. Campaigner Drip Campaign 1, Day 1 Sent to new trial customers Automated program Sent over 30 days If trial customer purchases product, they no longer receive trial s.
33 e.g. Campaigner Drip Campaign 2, Day 2
34 e.g. Campaigner Drip Campaign 3, Day 3
35 e.g. Campaigner Drip Campaign 9, Day 30
36 Transactional s Provide recommendations for the customer s next visit Great cross sell opportunity Referral program, points program, contests, contact info
37 Newsletters Using information to drive allegiance to your business Industry trends Tips Product launch details Events Discounts Cross sell Referral program Contests Archive online Link to them from social media sites * Can include a balance of information and promotions
38 Agenda What is loyalty marketing? The importance of loyalty to your business. Loyalty driving s: Welcome s Trigger Campaigns Drip campaigns Transactional messages Newsletters Understanding your customers to personalize and segment your messages Other loyalty tactics with Referral Programs Periodic Thank You s Reward Programs Using social media Testimonials Transparency
39 Referral Programs Using loyal customers to help grow your list Integrate forward to a friend functionality in your s Online form Can provide incentives, or not Refer a customer and get 1 free month of service
40 Send Periodic Thank You s Recognize your loyal customers! Send special discounts, offers or coupons Doesn t have to cost you a thing could be just a simple saying thank you for being a loyal customer Use the information you have: e.g. You ve been a loyal customer for 5 years
41 Reward Programs
42 Use Social Media to complement your marketing programs 58% of consumers say regular communication with a business via social networking sites improves their loyalty to that business. Yankee Group, June 2010
43 Use Social Media to complement your marketing programs In the beginning, use your s to promote and drive people to your social media sites. Remember Social Media is a 2 way dialogue! Encourage feedback and use it to learn about your customers Then use what you ve learned in your s If you monitor your social media pages for customer support or customer service issues or comments, tell your customers via that you re listening! Make sure your messages are consistent across all channels Use sign up forms to build your contact list! Blog, Twitter link to online form Facebook sign up form on profile Link to video content on YouTube from your s
44 The importance of Testimonials Use testimonials to encourage cross sell or up sell to your other products or services Your loyal customers will appreciate hearing from your other loyal customers Include short quotes or links to case studies "I have been very pleased with the service and have recommended it to several friends."
45 Transparency We want to give you a few more details about our site upgrade and why it s taken longer than we originally anticipated Ross, CrowdSPRING Hi guys! The site was worth the wait! Congratulations! Wrapups are now easier and more manageable. Toast to all of you cs guys and creatives who made everything possible in such short time. Happy holidays! loopdloop on December 16, 2009 at 10:49 am CST
46 Customer Loyalty In Sum: Loyal customers are more profitable Customer loyalty is determined by three factors: Relationship strength Perceived alternatives Critical episodes stay in the black! Make sure your intentions and interactions reflect: Reliability Integrity Honesty Truth
47 Developing Customer Loyalty through Marketing Many tactics to try! Welcome s Trigger Campaigns Drip campaigns Transactional messages Newsletters Periodic Thank You s Reward Programs Referral Programs Using social media Testimonials Remember: Only 15% of companies provide the kind of Wowservice experience that leads to loyalty Great opportunity to develop a customer loyalty strategy! Facilitate it through marketing!
48 Thank you! Wendy Lowe Regional Development Director Campaigner:
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