Today’s consumer is no stranger to the infinite web of e-commerce. Free shipping, coupon codes, and online customer reviews are the norm, not the exception. The vast world of online shopping certainly holds its advantages for businesses, but e-commerce also has the potential to be a giant roadblock for customer retention and loyalty. With infinite choices, instant brand and price comparison, and virtual anonymity, genuinely loyal customers are certainly hard to come by. However, customer loyalty programs when applied correctly can have a big pay-off in the form of fiercely loyal customers.
In order to gain insight into the latest trends governing loyalty reward programs, Zinrelo has been connecting with thought leaders in the customer loyalty space.
We interacted with Izi Singleton, who has written and run social media for a number of “named” B2C brands, such as Muller and Hardy’s Wine. She is now the Social Media Manager at Digital Leadership Associates, A Social Agency With a Difference, based in London, UK. Izi Singleton works alongside popular social media influencer, Tim Hughes.
The enlightening question and answer session with Izi provided great insight into running a loyalty rewards program like a well-oiled machine.
Q & A Excerpts
Zinrelo: What are the top three things to consider when implementing a customer loyalty program?
Izi: The three most important factors in a strong customer retention program are 1) WHO your customer is, 2) WHAT motivates them, and 3) TIMING is key. Let me explain.
WHO is your customer?
Knowing who you are talking to is the most important thing to consider with any marketing initiative.
WHAT motivates them?
To use an extreme example, there’s no point in offering £1 off repeat Audi purchases! Finding out what makes your customer “tick” is as important as knowing who they are. Would a donation to charity motivate them? Maybe a cash back incentive? Get under their skin, and find out what turns them on.
Make sure the reward program is timely. For example, people spend less at the end of each month and after Christmas. This is a prime time to hit them with a loyalty incentive. A valuable incentive to keep buying from you even through periods when purse strings are tighter will help to build a loyal following.
Once you know who your audience is and what is going to motivate them to be a loyal customer, you can hit them with incentive when it is most attractive. Easy, huh?
Zinrelo: How can a business best measure the effectiveness of a loyalty rewards program?
Izi: It all depends on the type of loyalty program in place. Measuring the success of the program could come from looking at the uptake or number of redemptions, measuring the frequency of relevant website visits, considering the time and money spent because of loyalty to you, or the rate of return against the click through rate (CTR). Sales of the incentivized product and number of loyalty credits or membership sign-ups could also measure the effectiveness of a loyalty program.
Zinrelo: Is Omni-Channel approach to customer loyalty program a key to success?
Izi: Not necessarily. You want to build a tribe. Tribes gather in one place. This way you can get to know their habits and target them better. Focus is key. A small number of followers spread across multiple platforms is not nearly as effective as a large number of followers following ONE platform.
Our interview with Izi once again highlights that the key to a successful loyalty rewards program is reliant on a comprehensive, 360-degree approach with customer engagement and retention at its core.
What are YOUR go-to strategies for fostering strong customer loyalty in your business? We’d love to hear your ideas!
More About Our Influencer: Izi Singleton
Izi has written and run the social media for a number of “named” B2C brands, such as Muller and Hardy’s wine and is now the Social Media Manager at Digital Leadership Associates, a social agency with a difference, based in London, UK.
Twitter profile: https://twitter.com/digitallead_iz