Transcript

How Brands Reward Loyalty

THROUGH THICK AND THIN HOW BRANDS REWARD LOYALTY A faithful customer is not only one who will stay loyal to a brand, they will also steer future business in the right direction. How does a brand thank such an individual? Let's take a look at how companies value their most treasured customers, and how they can improve their rewards programs to benefit both parties. +++ BENEFITS OFFERED IN LOYALTY PROGRAMS +++ 1 TOP DISCOUNTS AND SAVINGS PRODUCT OR FREE POINT FOR FUTURE THREE PREMIUMS MERCHANDISE 39 34 % PERCENT OF RESPONDENTS +++ CARD-CARRYING MEMBERS +++ THE LOYALTY PROGRAMS CUSTOMERS ENROLL IN THE MOST CREDIT CREDIT AIRLINE FREQUENT CARD FLIER CLUBS SUPERMARKET LOYALTY PROGRAMS INCENTIVE PROGRAMS 75% 69% 58% PERCENT OF RESPONDENTS +++ MARKETERS CAPITALIZE ON LOYALTY PROGRAMS +++ According to a CMO Council survey of brand marketers and customers: 65% of MARKETERS SEE LOYALTY PROGRAM 61% of MARKETERS BELIEVE THAT LOYALTY PROGRAM PARTICIPANTS ARE THE MOST PROFITABLE CUSTOMERS. INVESTMENTS AS ESSENTIAL. +++ LISTENING TO THE TRUE BLUES +++ WHAT CUSTOMERS DON'T WANT Not everything a brand does to reward its customers can go without scrutiny. Here are some perceived negatives associated with loyalty and rewards program membership from the loyalists themselves. PERCENT OF RESPONDENTS 44% G RECEIVE TO0 MUCH SPAM EMAIL AND JUNK MAIL 38% TOO MANY CONDITIONS OR RESTRICTIONS 37% 3 REWARDS HAVE LITTLE OR NO VALUE E) 35% HAD A HARD TIME REDEEMING POINTS OR MILES 32% 3: LITTLE OR NO ADDED VALUE TO BECOMING A MEMBER COMMUNICATION NOT TAILORED OR TARGETED TO ME PERSONALLY 19% 12% 3 FEES OR HIDDEN COSTS ASSOCIATED WITH MEMBERSHIP WHAT THEY DO WANT OF CONSUMERS WANT TO SEE MORE 70% DISCOUNTS AND SAVINGS. OF CONSUMERS WANT MORE PERSONALIZED 58% BENEFITS AND SERVICES. WANT BETTER PERSONAL DEALS 52% AND OFFERS. +++ BRANDS THAT ARE THE BEST +++ AT OFFERING REWARDS FOR LOYAL MEMBERS The CMO Council asked 700 consumers around the world to rank brands according to how satisfied they are with their loyalty and rewards programs. Here are the leaders who came out on top. AMERICAN EXPRESS Boots Marriott CVS AmericanAirlines +++ SOCIAL REWARDS +++ With the social web booming, the way companies reward their most loyal base is also transforming. CHECK-IN OUT! EVERY TIMEA MEMBER "CHECKS IN" TO AN ESTABLISH- MENT THROUGH AN APPLICATION, THEY RECEIVE COL- Go LECTIBLE BADGES OR POINTS THAT ADD A GAME-LIKE ELEMENT TO THE USER EXPERIENCE. DRIVEN BY THE SPIRIT OF COMPETITION, THEY CONTINUE RACKING UP THE ITEMS UNTIL THEY REACH A DESIRED GOAL. Think: Foursquare badges or Gowalla stamps USER-GENERATED COMPETITION USERS ARE ENCOURAGED TO CREATE CONTENT FOR THE BRAND IN SPECIAL COMPETITIONS WHEREBY WINNERS GET VS TO SEE THEIR PRODUCTS PUBLISHED AND SHARED. CON- TENT CREATORS GET FREE PUBLICITY, WHILE THE BRAND GETS MORE LOYAL CLIENTELE. VS VS Think: video contests for commercials CROWD SOURCING HOW BETTER TO MINE FOR INNOVATIVE IDEAS THAN TO GO DIRECTLY TO THE SOURCE ITSELF: THE CUSTOMER? CROWD SOURCING NOT ONLY REWARDS THE CONTRIBU- TORS WITH DISCOUNTS OR FREE SWAG, IT INDIRECTLY BENEFITS END USERS WHO GET TO SEE THEIR IDEAS IN MOTION. Think: Dell's ideastorm.com, where ideas from users are regularly implemented by the company. +++ GETTING THE MOST BANG FOR THEIR BUCK +++ HOW DO MARKETERS PLAN TO DERIVE ROI FROM LOYALTY PROGRAMS? ADDING NEW INCREASING PERSONALIZING HOW OFTEN BENEFITS USE THE INTERACTIONS WORD AND THEY SOCIAL WEB AND TARGET OF INCENTIVES SEND OUT AND MESSAGES MOUTH COMMUNICATIONS NETWORKING TOOLS 60% 51% 47% 39% 36% PERCENT OF RESPONDENTS CREATED BY COLUMN satisfaction SSOURCES: CMO COUNCIL 2010 | SOCIAL MEDIA TODAY | SOCIAL MEDIA EXAMINER FIVE www.getsatisfaction.com

How Brands Reward Loyalty

shared by ColumnFive on Oct 04
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A faithful customer is not only one who will stay loyal to a brand, they will also steer future business in the right direction. Let's take a look at how companies value their most treasured customers...

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