Keith BrodyKeith BrodyJuly 23, 2020
money-2696219_1920-1280x854.jpg

7min926

How to do cutting edge Customer Loyalty? For a question, the answer to which has long been a preoccupation of many enterprises, surprisingly few really get it right.

In fact, all too many companies pay little more than lip-service to loyalty and run outdated, unimaginative programmes that fall far short of surprising and delighting customers. So, how do you best address loyalty, how do you improve returns and reduce churn, how do you identify winning use-cases and suchlike?

A good starting point in answering those questions is defining what loyalty is. We’d propose this working definition: “Loyalty is when customers choose a particular brand more often than competitors, based on their belief that the chosen brand will be a better choice both rationally and emotionally.”

If we accept this, then we can see that loyalty has two aspects:

  1. Behavioural: This is reflected when customers stick with a brand, buying more of it than they do of competitors’ products.
  2. Attitudinal: This is reflected in the more abstract reasons why a customer might prefer one brand to its competitor’s offering.

So, if we’re looking to identify the components of an effective loyalty programme then the key question is “what drives behaviour and positive attitude towards a brand?”

The correct answer, beyond the transactional, might be that Loyalty is founded on something that’s hard to measure (which, perhaps, is also why a detailed definition is less straightforward than it appears). We believe that Loyalty can only be truly developed as an effective strategy if the basis of an offer (driven by price & service) is consistent in its appeal but we would also suggest that instead of creating an entire marketing strategy around what prices and services you want the customer to prioritise, you would to better to prioritise instead a strategy driven by how we want the customer to feel. In short, emotions and returns are not mutually exclusive.

Separating what we’ll call our humanity from your immediate marketing goals is important because real, lasting brand satisfaction is achieved through the application of different strategic parts, not just the obvious ones.  And in our years of experience as loyalty marketing experts, emotion lies at the heart of true loyalty more than anything else.

Emotion is the glue that binds together all the other elements (service, price, trust, reliability, empathy, rewards, timeliness etc.) that contribute to satisfaction and creates a compelling, desirable offer.

In simple terms, what really counts is how we make customers feel about the component parts of the offer we’re presenting them with, how we wrap and position everything and how/when/why we communicate our offer and brand. These are the steps that will really define the kind of relationship and associated emotions we try to build to represent our brand. Accept this as true, and we believe it is, then only brands that build more positive emotional relationships with their consumers will enjoy a higher rate of long-term profitable revenue growth.

Fig 1

So, accepting that brands which build this (more positive emotional relationships) with consumers enjoy a higher rate of returns over time then we need to understand the drivers of Brand Loyalty in some depth in order to build these lasting relationships. To do this, you have to take a structured, data driven approach built on the following elements:

Fig 2

  1. Total brand experience: This means excelling at every interaction with the customer by providing superior value. It involves anticipating problems and offering a relevant solution, tailoring personalised offers, pricing and experiences, and simplifying interactions to the point of eliminating any friction. The goal here is not to adequately meet your customers’ needs but to surprise and delight them.
  2. Customer recognition: Acknowledging what matters to customers rather than exclusively to you is vital: time together, special days and events, dedicated offers and experiences, recognition of usage patterns, profiles, changing behaviour, aspirations, beliefs all count.
  3. Rewarding experiences: You need to deliver tailored and curated brand benefits, gifts and offers; surprise and delight offers mean actions beyond that expected, such as exclusive and curated rewards, emotional and functional benefits, a proactive approach etc.
  4. Customer participation: We know that active customer participation leads to higher memory ranking; gamified mechanics like challenges, milestones etc. driving interaction and engagement deliver better results.

Follow these steps as a starting point and the results can be pretty significant. One of our clients who took this path now has more than 50 percent customer engagement rate – engagement defined as customers redeeming benefits in the last 12 months – far exceeding the industry average.

Typically, traditional points-based loyalty programmes achieve around a 20-30 percent engagement. The same customer’s Net Promoter Score, another of its KPIs, has moved from 3rd to 1st place in its market in both prepaid and postpaid segments.

Harnessing emotion means surprising and delighting your customers. In the Digital Age, that’s a good idea.

 

Written by Xabier Miqueo (pictured), Senior Marketing Consultant and Keith Brody, VP of Marketing at Evolving Systems.




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 Masterclass enquiries:
vuk@awardsinternational.com
Tel: +44 20 86385584

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


cbd oil: do cbd gummies get you high strain identifier age to buy cbd abacus cbd oil cbd ratio for anxiety linux phone 0 thc cbd oil can you eat the last bit of oil in a cbd vape pen buy cbd wholesale platinum cbd oil 500mg sprig cbd soda review cbd tea ingesting cbd cbd location does cbd oil affect birth control is acne a turnoff grubhub new orleans cbd neurology cbd oil free trial offer does ingesting cbd oil for osteoarthritis pain hemp benefits thorne cbd oil working on updates cbd oil distribution where to buy oil cbd e liquid reviews tk extracts cartridge j neuroinflammation potential definition science benefits of cbd bath bombs calm my anxious heart pdf cbd bookshop rix mix 1500 review cbd oil texas austin rat brain anatomy review of cbd oil any of them intoxicate meaning cbd 25mg softgels anxiety research does cbd oil work for headaches cbd oil did nothing for me lotion with cbd oil cbd dosing for kids cbd oil and vape pen combo where can i buy cannabis oil is black diamond cbd stronger than green diamond cbd oil wait staff melbourne cbd is selling cbd oil in massachusetts legal 2017 cbd oil in germany how ofgten can you take 350 mg cbd oil what does cbd really do is cbd best taken as oil a cbd vape strongest cbd oil pain relief pluscbd oil spray

vape: linx vape pen e cigarette legal indoors how to load a vape pen best vapor mod dave chappelle vape dot mod rda ohio vape laws voopoo charger godbox vape best iced vape juice tough vape mods danger e cigarette cloud booster vape cosmic fog nutz vape snapback best lemon vape juice country clouds ecig juixw making me feel lethargic vapor cigarettes reviews e liquid cheap nike vapor fly elite vapor buy ecig liquid with nicotine voopoo triple mesh coil how to use a solo ecig vaping black friday deals best site to purchase ecig mods jet vapor trails classic e cigarette voopoo drag 2 what does fit do psa vaping popular mods vape ti wire for vaping walmart ecig accessories vape burning lip al85 mod only smok drip tank ego t vape pen blinking mg of nicotine in 1 cigarette e cigarette to help stop smoking how much nicotine does a cigarette have vaping jobs yogi salt nic can ecig cause pneumonia smoke teck best vape for nicotine salts uwell crown rta how to fill thc vape cartridge crown uwell ni200 review blue ridge vapor uwell coils nunchaku ego c twist vape pen voopoo drag mod resin edition how to use smok alien vapor voopoo is xname the same as vaping

male enhancement: you tube girls sex what does sex mean medication used to treat depression best sex pills at walmart how much is cialis best medicine for ed cheap sildenafil citrate 100mg jym multivitamin men sex pills hormone supplements does priligy work viotren reviews viagra replacement over the counter how to make sex better for her over counter ed pills traction method penile extender increase bloodflow to penis viagra canada pharmacy average us male penis size diagnosis code for erectile dysfunction best mens supplements one simple trick to cure ed micro penia how do i get my dick bigger medium size cock things that look like penis jelqing progress penis pump ring is viagra available over the counter testosterone injection cost red ginseng for ed best male performance ginseng is good for mens hard penis problems keeping a erection best penis enlargement products natural cures remedies black dick head milking the penis yellow 5 pill how much blood does it take to get hard viagra savings card skin irratation on penis adempas side effects genitals doctor korean masculine names how to please a man sexually erection shot how to make sex exciting pandora login page boron examine powerzen pills review ron jeremy male enhancement pills libido vitamins sex vitamin for male is labdoor reliable

weight loss: prescribed weight loss pills best weight loss recipes weight loss for dumbies hypnosis near me for weight loss spark weight loss dotties weight loss weight loss diets menus suzanne somers weight loss body shaper weight loss best weight loss cleanse pills phil mickelson weight loss yoga weight loss stories hilary duff weight loss does garlic pills help with weight loss pickles weight loss gabourey sidibe 2016 weight loss 1500 calories a day weight loss mediterranean diet weight loss recipes speed weight loss does keto pills work does vitamin d help with weight loss cheap weight loss programs weight training and weight loss liquid diet weight loss in a week androgel weight loss eas protein shakes for weight loss designer whey protein weight loss diet pills by prescription supplements for beginners weight loss black and yellow weight loss pills weight loss from walking measures for weight loss celebrity weight loss show weight loss and pregnancy pills for weight loss fast cylapril diet pills lishou diet pills elliptical weight loss plan royal slim diet pills weight loss diets recipes diet pills green coffee seriously weight loss virginia beach va cet diet pills bible verses for weight loss ford diet pills diet guide for weight loss diet calendar for weight loss weight loss challenge pills to increase appetite protein breakfast for weight loss buy diet pill online alli diet pills reviews keto pills quick weight loss center utah kelly clarkson keto diet pills best classes for weight loss