Edd WellerEdd WellerAugust 12, 2019
connect-20333_1280-1280x853.jpg

9min2111

The age-old argument tells us that retaining existing customers is cheaper, and more strategically sound, than acquiring new ones.

Retention strategies, however, are often a huge challenge for marketers, who find it easier to throw money at quick wins upon failing to crack the retention code.

Loyalty programmes show a brand’s investment in their customers through forming, sustaining, and rewarding brand loyalists. The power to influence preferred behaviours, gain deeper insight into consumers’ daily lives and remain front of mind during purchasing decisions is a major asset to brands.

Recent research revealed that 66 percent of consumers are more interested in experiences than price. So, in an increasingly fragmented market, the question is how can brands go about building their loyalty programmes?

Think of the times colleagues have sent an email around the office asking for an O2 priority code; it isn’t just the discount they’re after, but early or exclusive access to a particular event. Similarly, how many times has someone you know boasted about the number of air miles they’ve accumulated by spending on Amex? Loyalty programmes must now provide a wide range of access, benefits and privileges to keep customers engaged.

A great loyalty programme pulls data, audience insights, relevant partners, brand objectives, and creativity into an easy mechanic to use and understand. If you’ve hit this magic mix right, then signing new partner benefits and fuelling customer growth will be straightforward and crucially the programme will be both interesting and engaging.

Audience and relevance

Nowadays, a common bugbear is with banks and the relevance of their partner programme merchants that consumers are encouraged to use. Often these merchants are situated nowhere near where the banks know their customers live or shop, so taking advantage of these benefits immediately becomes impossible – and more importantly they tend to be somewhere the consumers in question don’t spend. Considering they have all the relevant data, what’s their excuse for not using it to construct an offering that is actually rewarding?

Knowing your audience to this degree may be reserved for the telcos and banks (if they look at the data) but there are some very basic demographic metrics any partnership manager should be comparing in the initial meeting point. This will help to establish what the target behaviour (and therefore offer) should be.

The smaller your audience, the more difficult it becomes to secure partners. As an initial step, really understanding your demographic and what triggers them to redeem, purchase or attend will help sign the right partner.

Quantity vs quality

The quality of the offers should be your first priority.

Even great partners with non-exclusive or generic offers divert audience because they’re better or more easily available elsewhere.

Try and keep to the right partner in the sector, if you’re a youth-oriented brand, Boohoo rather than John Lewis. DriveNow for a London audience vs Enterprise for the traveller; think about context or why they’ll want to use these partners when shaping the offer.

It’s also important to keep in mind that getting a quality offer from a partner brand takes negotiation, the best in the business will establish hard metrics for you to meet before unlocking the best bits. British Airways, for example, will need a spend metric hit from your audience before offering lounge access etc.

Without adhering to this, your programme becomes more Wowcher than Wow.

Mechanics

Over the last few years we’ve seen two big travel brands go opposite ways in loyalty. BA increased its premium offering, with a programme weighted to really reward the top spenders and crucially make it harder to reach that status. Hilton, on the other hand, has gone after the lesser value customer with as little as one stay before people can receive offers.

Making choices like these depends largely on where you want to position your brand. For Hilton this is repeat customer acquisition at large, but for BA its recognition and reward. Either way it is key that the mechanic matches your objectives.

When it comes to promotions has your brand asked the tough questions? Do you need points, or is that handing out liability unnecessarily? A prize draw isn’t actually rewarding anyone other than those that win – is that loyalty? If you’re driving spend to another brand, is that hurting your share of wallet?

Boosting loyalty programs through brand partnerships

At Ingenuity, we believe partnerships are one of the key ways to make a loyalty programme work. Consumers are more likely to care about your brand if it’s offering them something they want right now; easy if you sell vodka, not so much if you’re British Gas. If consumers use direct debit for your brand, they’re unlikely to think about it as often. So how can brands keep them engaged with a loyalty programme? By introducing them to things they would otherwise have no access to or helping them save money on things they’d be likely to interact with in the first place.

Clever mechanics, such as Netflix being paid by customers’ Amex points may add up to little ‘engagement’, but they do show up on bank statements every month, showcasing great loyalty benefit. Even better when consumers can use the rest to pay their Amazon purchase of laundry powder.

These integrations take much more work and this more broadly is the point. You have to invest in the programme and the partnership. You have to manage it, communicate it internally, and externally engage your customer service team as well as your partners’, and crucially deliver the media behind it that it deserves to ensure people actually know what they can get, with you!




Inform. Inspire. Include.
A free way to improve your business.

Customer Experience Magazine is the online magazine packed full of industry news, blogs, features, reports, case studies, video bites and international stories all focusing on customer experience.


CONTACT US

CALL US ANYTIME


UK Trademark UK00002648900

EUIPO Trademark 018131832

Contact Information

For article submissions:
Editor
Paul Ainsworth
paul@cxm.co.uk

For general inquiries, advertising and partnership information:
aleksandar@awardsinternational.com
Tel: 0207 1932 428

For Advertising and Guest/Sponsored posts:
jovana@cxm.co.uk

For Masterclass enquiries:
danilo@cxm.co.uk
Tel: +44 20 86386491

Customer Experience Magazine Limited
Company number: 12450532
International House, 24 Holborn Viaduct,
United Kingdom, London, England, EC1A 2BN

JOBS IN CUSTOMER SUPPORT

Find a job in customer support with Jobsora


Newsletter


weight loss: running weight loss brittany cartwright weight loss christian weight loss programs garcinia plus 100 swedish weight loss loss weight from walking weight loss cookbook weight loss kits sherry shepherd weight loss fda approved weight loss medication anemia weight loss 3 month weight loss programme celebrex weight loss weight loss diet vegetarians cpap weight loss quick diet pills lose weight fast gabourey sidibe 2016 weight loss 30 day diet for weight loss schwarber weight loss diet tablets dr oz weight loss pills 5 diet pills that work healthy weight loss foods best cooking oil for weight loss detox drink for weight loss belly fat pill thermo burn weight loss achieve medical weight loss dothan al scarlett johansson weight loss diet weight loss center los angeles 2019 weight loss calendar weight loss pills zantrex prozac 20 mg weight loss most effective weight loss pills 2016 is weight loss a symptom of pregnancy is topamax used for weight loss weight loss mckinney raisins weight loss divorce weight loss prune diet weight loss black rice benefits weight loss body cleanse pills weight loss 30 day vegan weight loss diet pills thyroid problem dr prescribed weight loss medication blender recipe for weight loss weight loss supplement program phentermine and topamax for weight loss aloe vera pills and weight loss extreme weight loss show truvision weight loss pills ingredients rosanna pansino weight loss top natural diet pills weight loss challenge for money quick weight loss sugar land tx carrie fisher weight loss

male enhancement: pill to last longer way to enlarge penis male erection pics herbs that increase estrogen erection cream that works increase penile blood flow naturally impotency pills yellow pill with m do penis enlargement pumps work best sexual performance pills corpus spongiosum exercise viagra priapism supplements for testicular growth viagra for dogs steel pills viagra professional 100mg prime male for sale herbal male enhancement pills best energy pills for men how to boost libido viagra for young men scientific word for dick viagra commercial actors what do viagra pills look like adempas cost healthy sexual relationship dr prescription online one more night pills online medication ordering adderall and libido natural erection foods strongest ed pill niacin erectile dysfunction how to improve erections icariin dosage for ed blue m 15 pill erectile dysfunction va claim louisiana law to ban sex with animals walmart sale ads epic male enhancement pill top male sexual fantasy amazon the red pill penis cleaning natural cure for erectile dysfunction lady rabbit sex sertraline erectile dysfunction hard on pills at gas stations best pill black mamba 2 pill do snakes have two dicks side effects of taking testosterone how much l arginine is too much black mamba enhancement pills how common is penile cancer number 1 penis pill erectile dysfunction physical exercise

vape: washington vape ban voopoo drag box swag vape dangers of vaping oil vandy vape kylin betty chill vape cbd oil vape pen kit blue ecig retailers leonardo dicaprio vape halo vape pen cloud vape pen reviews vape cheapest price oasis vape coupon voopoo drag 2 door can i vape after a tooth extraction crafty vape review is there a vape pen for weed uwell cornw 2 whats in vicks vapor rub vaping news 2015 the mamasan vape juice what happens to your lungs when you vape e cigarette belt holster sick clouds box mod e cigarette world cannabis wax vape pen who owns njoy vaping vape shops in sioux falls can your lungs collapse from vaping too much ecig compressed nicotine vaping medicine top vapes 2015 nicotine juice lokee vape vapes starter kit e cigarette amazon us big vape pens how to make vape smoother suorin blinking blue vaping law the mamasan guava pop smok gold tank steep juice snowwolf box mod best mechanical vape vape belly aspire sub ohm coils stig ecig smok xcube update vape tank coil uwell crown 2 tank test for formaldehyde how to adjust ohm on voopoo drag what coils come in uwell crown tank alien 220w coil crown 4 uwell coils ebay coils for tfv8

cbd oil: ctfo cbd oil cbd oil contact dermatitis synthetic cbd cbd oil for veterans nuleaf cbd oil reviews cbd living vape cartridge thc in cbd medical property cbd oil legal in illinois cbd financial services pty ltd cbd oil best value cbd strain cbd soda effects apoptosis cytochrome c cbd pineapple express pure encapsulations reviews acdc cbd vape is cbd oil harmful cbd causing insomnia need to know news best cbd oil for price google tablets review cbd oil and drinking alcohol cbd dose for nerve pain cbd vape oil liquid gold cbdt ke adhyaksh what does thc mean spectrum login dr layman youtube febrile seizures with cbd oil seizures definition medical sativa rose pic side effects of medical marijuana venlafaxine and cbd somebody that i used to know parody cbd for sex drive intoxicated synonym we have what you need study found how to take liquid cbd oil how many mg of cbd oil for seizures c4 healthlabs cbd oil cbd oil for vaporizer pen cbd side effects reddit smart organics advanced cbd oil with terpenes review where to buy cbd cream near me cbd hemp oil for focus vaping cbd oil for pain plus cbd oil review reddit professor snooks cbd oil benefits for women of cbd oil cbd chewing tobacco does mix rx enhanced hemp oil contain cbd relax cbd vape oil cbd oil llc how much is one gram of cbd oil