Articles Tagged with: Loyalty Marketing
Is your rewards program drowning you in loyalty debt?

Is your rewards program drowning you in loyalty debt?

Is your rewards program drowning you in loyalty debt?

Is your rewards program drowning you in loyalty debt?

Grace Alexander

MarTech Blogger | May 19, 2022


Has your customer loyalty program been giving out points to customers who don’t redeem their rewards. This all-too-common scenario represents a breakdown of the way rewards and engagement strategies should work.

Traditional loyalty programs built on earn-and-burn models of point accumulation are particularly susceptible to loyalty debt. Due to a weakness in the system — a weak rewards slate, or an unoptimized redemption process — people are earning points and never burning them.

Something has to give. The real appeal of a rewards program comes when customers get to actually earn their rewards. If your audience isn’t reaching that step, your loyalty strategy isn’t living up to its potential, and this could be a sign to upgrade, providing hyper-personalized and relevant rewards, alongside nudges to action that will remind users to spend what they’ve earned.

Loyalty debt: Among the biggest issues with rewards programs

Where does loyalty debt come from? Typically, it begins when a company starts issuing reward points without performing in-depth research into what customers want. This leads to a disconnected experience where people are piling up points and building loyalty currency but not finding any way to convert them into rewards.

Simply giving points an expiration date might seem like the simplest way to get out of this situation. This will wipe out the debt, but it’s not a satisfying resolution. After all, the value of a rewards program really comes from people using it. The simple promise that customers can earn points will lose its appeal over time if they always hold onto the points until they expire.

A customer rewards and loyalty program that people actively use and enjoy is an ongoing benefit for your company. An earn-and-burn system where nobody ever burns can’t deliver that level of advantage. After all, PricewaterhouseCoopers’ audience preference research revealed that 65% of U.S. consumers find positive experiences more influential than advertising, and 54% think most company experiences could be improved.

By using a management platform that delivers improved analytics on what customers want from your brand, you can craft a loyalty and engagement program that people are excited to use. Better aligning reward options with customers’ wishes through hyper-personalized offerings is a far better way of reducing loyalty debt than simply causing points to expire. This way, your audience gets what it really wants: a great experience.

Turn liabilities into strengths

Keeping a close eye on the way customers interact with your brand is at the crux of designing an improved loyalty program. While still using the basic model of earning and redeeming points, you can transform the way people interact with your brand — making sure that every part of the program is optimized.

Creating more opportunities to redeem points is a great starting point for increasing a program’s appeal. If your audience is focused on dealing with your brand in physical stores, integrating redemption into point-of-sale terminals should be a priority. In cases where a mobile app is a major touchpoint, that app should interact with the loyalty point system.

In addition to introducing new redemption options, your brand can create other triggers associated with loyalty debt. For instance, you can mitigate point expiration, using this as a reward in itself. Customers may be happy to have retained their points and more likely to use them to engage with the brand. If the points had been left to expire, those positive experiences and interactions wouldn’t have happened. Gamification features make this process fun for customers to engage with, encouraging them to keep participating in earn-and-burn loops and opening opportunities for easy upsell and cross-sell transactions.

A sufficiently evolved rewards program can work hand-in-hand with overall business objectives. PYMNTS recently reported on post-2020 success stories from the quick-service industry where loyalty programs at restaurants such as McDonald’s, Taco Bell, Chipotle and Starbucks have made their rewards programs into key digital sales drivers. This kind of tangible progress can only come from customers actively using rewards and cashing in loyalty currency, not simply building a brand’s loyalty debt.

Open programs to partners

When you look beyond the walls of your own business, you gain more ways to expand the usefulness of your loyalty program. Point earning and redemption can extend to partner businesses, creating a more valuable custom rewards system for your customers, while potentially promoting all the companies involved.

There’s more chance that customers will redeem their points and less risk of them building up or expiring when they’re usable across a spectrum of partnered companies. The integration between your business and partners should extend behind the scenes, with the businesses connecting their tech platforms and sharing data.

A joint loyalty rewards program delivers not just a bigger experience but also a smarter, better tuned one — the extra data can help you perform advanced analytics and offer more relevant rewards. Customers who may not be interested in a limited loyalty offering may engage more deeply in a partnership program.

As customer loyalty specialist Adam Psner explained in a LinkedIn blog post, building partnerships has become a common approach for businesses hoping to build optimized loyalty strategies. There are a few ways to make the partnerships happen — either a full integration between the companies or hiring a partner to provide rewards as a value-add. No matter which you opt for, the expanded scope could trigger a major reduction in loyalty debt.

Perx can power ideal, optimized point systems

If you’re eager to build an optimized custom rewards system that will cut down on loyalty debt while increasing positive customer experiences, you need the right technology at the heart of the program: Perx Lifestyle Marketing Platform.

The platform’s Impact Dashboard gives you real data-driven insights into what your customers care about. That in turn allows you to create point-earning triggers, redemption opportunities and corporate partnerships that match what your customers really want.

A more accurately targeted loyalty program is the perfect tool for creating value, by delighting customers instead of simply giving them points. The basic framework of a point-earning system remains the same, it’s simply been revamped to match your customers’ interests and lifestyles.

The platform’s ability to enable smooth integration with any and all rewards merchants is another feature that will help you build a truly appealing custom rewards program. When a solution is easier for both you and your customers to use, there’s nothing standing in the way of a great loyalty experience.

Request a demo to see the platform for yourself.

CUSTOMER SUCCESS STORIES

How a Personalized Customer Experience Increases Revenue and Loyalty

How a Personalized Customer Experience Increases Revenue and Loyalty

Grace Alexander

MarTech Blogger | April 14, 2022


You know what your customers want, what they’re interested in, and how they like to communicate. That is, if you’re using data effectively. But how can you turn that information from points on a graph into real-time actionable fuel for top line growth in loyalty and revenue generation?

The key lies in the kinds of customer experiences you create. In an era of constant digital communication between people and companies, having hyper-personalized and meaningful interactions with consumers is what stands out.

Surprise and delight your customers by proactively acknowledging and fulfilling their asks.

Building revenue and brand loyalty with personalization

One of the first points to understand about personalized customer experiences is that shoppers have come to expect this level of custom treatment.

McKinsey reported that personalization has moved from nice-to-have to need-to-have. People expect customized content, and they may devalue companies that don’t offer it. In retail, personalization can lift brand loyalty while lowering marketing expenses by 10-20%. Even in the grocery space, where companies deal with large customer bases and must launch all their programs at scale, a customized experience can lift sales by 1-2%.

Personalization is tied to a few of the other concepts that have powered retail in recent years, namely the increasing use of data and the development of effective rewards schemes for a brand’s most loyal shoppers.

McKinsey’s report added that personalized interactions aiming at customers who are already repeat buyers can drive powerful return on investment, at three times the rate of efforts that target all customers. From there, these customers repeatedly provide data as they return and interact with the company multiple times, making purchases or redeeming rewards. That information further fuels personalization and deepens the bond of loyalty.

Creating truly unique experiences with hyper-personalization

While companies have been using limited forms of customized outreach for years — segmenting their audiences and tailoring experiences based on interests and demographics — modern personalization is different. The era of hyper-personalization is here, where each individual has unique brand interaction experiences.

What’s the fundamental difference between doubling-down on segmentation and adopting real hyper-personalization? According to Deloitte, a real commitment to modern customized customer experiences means changing the entire way a business thinks about the customer journey and its relationship with its audience.

A hyper-personalized experience could start with a recommendation engine powered by advanced analytics categories, such as artificial intelligence (AI). This allows companies to create truly unique suggestions from each individual. From there, the use cases become more advanced, from personal pricing to products designed for a single person.

Example: Cadbury’s social media success

As a real-world example of its customer experience research, Deloitte reported that the confectioner Cadbury created highly personalized display ads based on customer data, provided with consent through Facebook. These custom marketing messages earned click-through rates of 65% and conversion rates just over one-third.

Probing the psychological link between personalization and brand loyalty

Personalization has the power to deepen the loyalty of existing shoppers and even, as in the Cadbury example, to win over new prospective customers. The key to getting these reactions, rather than making customers uneasy with the level of data companies are using, is to focus on positive experiences.

When personalization goes right

When are people most likely to willingly share their data and get customized experiences in return? According to PricewaterhouseCoopers, the key is to provide products or services that people truly value. In those cases, 63% of consumers are more willing to give companies personal information. This is significant, as 43% of people are generally opposed to data collection by businesses.

When a brand is closely aligned with a person’s lifestyle and interests, there is room to create a deep and lasting relationship. A customer who feels a brand appreciates them is willing to pay up to 16% more for that business’s services and goods, and will stay more loyal over time, according to the PwC data.

When personalization goes wrong

Just as there are companies that use customization effectively, there are those that make mistakes. Psychology Today noted some of the tactics consumers don’t like. Sometimes, a business can attempt to create a connection with audiences but fail, because they’ve gone too far. People who feel manipulated by a business, or who did not realize how much of their information a marketer has, may feel unhappy about losing control of their data.

While trying for a deep connection can backfire, so can shallow efforts at personalization. When a business makes a recommendation that is seen as stereotypical, that can drive customers away. The same goes for trying to give people information they already have. These surface-level efforts at customization don’t suit the preference for real understanding and mutual trust.

Taking customer engagement and personalization to the next level

How do companies get started personalizing their interactions with customers? A separate McKinsey report recommended that brands can begin their efforts sooner than they may assume. Rather than launching new efforts to organize or rethink data, businesses can use existing interaction data from their customer relationship management (CRM) systems.

Early efforts to personalize the customer experience should reach consumers through many different communication channels, rather than just one. There should be mechanisms in place for the business’s teams to collect real-time data on their new, personalized interactions and adjust on the fly based on their findings.

Personalizing customer experiences with Perx

If you’re hoping to join the many companies embracing personalization as a pillar of customer engagement marketing, Perx is the perfect customer engagement platform for you. Perx is a lifestyle marketing platform, meaning that customizing offers based on customer data is in the technology’s DNA.

The crux of the Perx customer loyalty management system lies in using data to generate rewards, experiences and interactions that will delight loyal customers. This, in turn, gives your organization further data to deepen your connection with your audience.

To see this cycle for yourself, request a demo.

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Leveraging the Critical Stages of Customer Loyalty Marketing

Leveraging the Critical Stages of Customer Loyalty Marketing

Grace Alexander

MarTech Blogger | April 14, 2022


When does the work of customer loyalty building take place? For companies that have achieved best-in-class retention and customer experience, the process starts before someone has made a purchase and continues for as long as that consumer is interacting with your brand.

Starting early means you can gather the maximum amount of data on your prospective customers and continue presenting them with experiences that will delight them. This creates a positive feedback loop, as each time you deal with that individual, the interaction can be better tailored, utilizing all the data you’re collecting.

Defining the stages of interaction

Though customer loyalty marketing is an ongoing process, it doesn’t always proceed at the same speed. Rather, there are important points on the timeline. First, there’s the preliminary work that goes on before a consumer buys from you. Then, there are the everyday activities as they become part of your customer ecosystem. Finally, there are the outreach opportunities to keep people from disengaging from your brand.

With the right strategy and technology, your brand can master all these stages and create a loyal, ever-growing customer base to support your bottom line. By breaking down each of the three key phases of customer contact, as well as demonstrating how a lifestyle marketing platform can assist you at these moments, it’s possible to envision a better approach to loyalty marketing.

1. Focusing on pre-acquisition steps for loyalty and retention

Is it possible to build loyalty before a prospect has even become a customer? If you take a modern approach based on positive customer experiences, you’re well on your way to winning people over before their first purchases.

Pre-acquisition prep work to stream prospects into loyalty programs starts with customer engagement. By running the data on your prospective customers’ wants and needs — the components of their lifestyle — you can create offers that will match their deeply held long-term goals.

Once you’ve segmented your prospective audience based on your current customers’ profiles, it’s time to generate incentives and offers that will bring in business. These should involve no-strings-attached benefits for first-time engagements. Follow these gifts up with gamification and positive, enjoyable interactions and you’ve captured new customers for your lifestyle marketing ecosystem.

Gamification is a critical element, as these enjoyable and digital experiences have been proven to keep users more engaged. Gartner stated that gamification can boost both customer retention and new business acquisition.

Why use Perx to create your loyalty ecosystem?

Perx’s recently launched lifestyle marketing platform is the perfect technology tool for brands hoping to capture business through the power of customer experience. How does it work?

The Perx Lifestyle Marketing Platform enables brands to lead with engagement and not loyalty, innovate beyond their core business models and create monetizable lifestyle ecosystems around their closed-loop network of consumers, partners, and merchants. This approach not only allows brands globally to better address and solve customer lifestyle wants and needs but also builds a moat around those customers by drastically increasing brand touchpoints. With advanced gamification and campaign automation capabilities, hyper-personalized and instantly gratifying incentives, the platform has proven to be an effective enabler of the digital lifestyle ecosystems for enterprises and digital natives.

Anna Gong, Perx CEO and founder

2. Leveraging a customer loyalty program for first time and repeat buyers

Customer loyalty programs work best when they encourage consistent engagement between your audience and your brand. This means rewards and incentives should exceed the traditional “earn and burn” points model, which could leave consumers unable to accomplish anything worthwhile for long periods of time.

Personalization is key, as users are less likely to disengage from your ecosystem if you keep offering them meaningful incentives. Continuous engagement starts with the bonus you use to attract first-time buyers and proceeds from there, welcoming these consumers into your loyalty ecosystem.

Generation Z customers, growing up as digital natives, can be especially demanding when it comes to brand experiences. Give these young shoppers generic or non-engaging interaction and reward options and they may not pay attention.

How does the Perx platform bring customers from intake to loyalty?

The Perx lifestyle marketing platform supports consistent meaningful interactions designed to delight customers and keep them deeply engaged.

In our recent execution with Perx, we drove over a million customer actions, targeting a specific test segment, in just 100 days from the point of onboarding, and over 70% of them were actions that contributed to the top-line growth of the brands.

Stephanie Kubota, RUSH CEO

3. Rescuing customers from post-action disengagement with loyalty retention

After you’ve captured customers, you need to make sure they never have a reason to desert your ecosystem. What drives people away from companies? In short, the issue is negative experiences.

According to PricewaterhouseCoopers research, 59% of consumers in the U.S. will stop dealing with a brand they love if that company has given them several bad experiences. For 17% of customers, all it will take is one bad interaction to destroy the brand-client bond.

When your lifestyle marketing, customer experience and retention efforts are based around accurate, up-to-date data, you can adjust in real time to make sure you’re on the right track. If consumers are unhappy, you can detect the issue and respond right away. If they’re even becoming ambivalent, it may be time to offer up reminders of the rewards available.

How does the Perx platform help brands keep their customers loyal?

By using data to help companies build customer relationships around valuable, high-impact interactions, the Perx platform delivers consistent positive experiences.

Unlike other solutions, Perx’s Lifestyle Marketing Platform actually drives meaningful customer engagements and is built to digitally engage better. An outcome of that is more customer stickiness and real customer actions that contribute to the top-line.

Maneesh Verma, Starhub VP of customer lifecycle management

Customer Loyalty Marketing Enabled by Perx

When your brand wants to commit to every step of the customer journey, from pre-purchase offers to everyday interactions and churn-stopping outreach, Perx is the ideal platform for you.

Learn how the increased number of touchpoints and focus on continuous engagement can help our brand: watch a video overview or request a demo.

CUSTOMER SUCCESS STORIES

What Metrics Are Critical to Measuring Customer Loyalty?

What Metrics Are Critical to Measuring Customer Loyalty?

Grace Alexander

MarTech Blogger | April 13, 2022


The stakes are high when it comes to identifying the right customer loyalty metrics. These measures are essential for benchmarking your customer relationships and measuring the impact of your retention strategies. To get the most out of a customer loyalty program, you need a reliable way to measure the effort’s impact.

There are many ways to measure customer loyalty, but not all of them provide equal value. If you want to truly understand your brand’s relationship with customers, it’s important to progress beyond superficial “vanity metrics” and drill down on more relevant, revealing key performance indicators.

As a definitive Bain & Company survey on customer retention explained, companies almost never recoup their acquisition costs on a customer’s first purchase. That means you need to understand how retention works to achieve optimal value. Tracking the most important metrics is key to that understanding.

Measuring customer loyalty: The 6 metrics that count

When you’re setting up a dashboard to measure customer loyalty and retention, you don’t need to include dozens of metrics. As long as you focus on meaningful behavioral factors that truly reflect customers’ interests, intentions and engagement, you’re on the right path.

With the following six impactful metric types, you can get a clear view of your campaigns’ performance and the resulting return on investment (ROI):

1. Net Promoter Score

Net Promoter Score (NPS) uses the customer experience to predict your company’s potential for growth. It is based on rating your customers from 1-10 depending on how likely they are to recommend your company to friends. The scale provides clarity on your future prospects by dividing your current customer base into detractors (not likely to recommend), passives (not enthusiastic but satisfied) and promoters (brand advocates).

2. Upsell ratio

In the same vein as your company’s repurchase ratio, your upsell ratio is a valuable descriptor of your customers’ relationship with the brand. If people are willing to spend more money to engage with your products and services on a deeper level, this is good news for your customer experience. If you’re only selling base-level items, it’s time to consider new incentives.

3. Customer lifetime value

Getting maximum value out of each customer relationship is a core objective of retention and loyalty marketing strategies. Your dashboard should therefore include a clear measurement of how much return on investment each individual is providing. These calculations can provide useful intelligence on the relative success of outreach efforts.

4. Repurchase ratio

Getting someone to buy from you once is a triumph of marketing. Twice is the start of loyalty and real customer lifetime value. Considering the fact that a single purchase will likely not recoup acquisition costs, you need to pay close attention to what percentage of your clients buy again. A low repurchase ratio may be a clear sign of a weak customer experience.

5. Customer Loyalty Index

Customer loyalty index is a score used across the marketing space. It combines several of the other scores, such as NPS, repurchase intent and upsell intent to create a unified view of loyalty. A customer who is willing to spend more on your products, buy multiple times and refer others is a valuable asset, so it pays to directly measure how close consumers are to this ideal.

6. Customer Engagement Score

A customer engagement score (CES) is a measurement of the types of interactions your audience members have with your company. If people are actually using your products, communicating with your brand or engaging with your mobile app experience, that raises their CES. It can be valuable to understand which of your outreach efforts are convincing people to engage further and which have a more shallow impact.

With a reliable tracking method for these six metrics, you can stay aware of fluctuations in customer loyalty. That, in turn, will help you shape your outreach and retention tactics for years to come.

Mistakes brands make with customer loyalty and retention

Not every company maximizes ROI with an adaptive, data-driven customer loyalty and retention strategy. Some businesses end up going halfway in these attempts, launching programs that seem effective but are slightly misaligned. What are some of the defining features of these non-optimized attempts?

  • A lack of relevant rewards: When the MIT Sloan Management Review laid out important concepts of rewards programs decades ago, it established the variables customers use to judge the value of rewards: How valuable do the offerings seem? How many choices are on offer? How easy will it be to earn those benefits? Is the reward program user-friendly? Failing to consider these issues could lead to weak customer benefits.
  • Limited channel options: Companies that don’t make their customer retention and loyalty programs available on users’ platforms of choice may quickly lose audience attention. Lack of a mobile application interface may be especially devastating today. What’s worse, brands that fail to track effective metrics may never realize if they are missing customers’ preferred platforms.
  • Focus on the most loyal: Customer loyalty and retention programs shouldn’t be limited just to customers who are already committed to a brand. Businesses that neglect to open their rewards programs to new and recent customers may miss out on opportunities to collect and use data. Processing data on these shoppers can create fruitful new relationships.

Good dashboards help businesses avoid these pitfalls and more by sending clear signals about which efforts are having a positive effect on ROI — and which aren’t working.

Lifestyle marketing for an emotional connection with customers

While modern customer retention strategies are driven by data, they aren’t cold or robotic. In fact, the end result of these programs should be to create a kind of loyalty Harvard Business Review calls “emotional and irrational“.

People who have committed to such customer relationships don’t just keep redeeming rewards because it makes economic sense. Rather, they are happy to keep engaging with the brand because they feel like part of a club. The experience of interacting with the brand and their fellow customers feels good, and the incentive to stay reaches beyond their wallets.

Do you know if your brand is creating this bond? To understand where you are on the path to loyalty, you need a comprehensive dashboard that tracks the right metrics. This is what you get as part of the Perx Lifestyle Marketing Platform. Request a demo to see how this technology can help you.

CUSTOMER SUCCESS STORIES

Know your customers, so they say no to your competitors

Know your customers, so they say no to your competitors

Sundeep Keramalu

Director, Marketing Content | January 20, 2022


When comparing conventional influencers to everyday social media users, according to recent research from Bazaarvoice, 56 percent of social media users choose to follow “everyday” social media users, such as friends, family, and peers.

It’s not about paying influencers to sell your product; it’s all about paying attention to your end customers so that they can sell your product for you without having to pay for it.

Covid has continually reshaped consumer behavior. There is no longer any distinction between online and offline transactions. When all touchpoints and experiences are interconnected, the best results are achieved. Customers want everything, and brands must provide it. Shopping is expected to be quick and efficient. Experiences are expected to be rich and immersive. Payments are expected to be intuitive and straightforward.

That’s not all, though. What brands used to believe people wanted is no longer what customers wanted. More than 1,000 U.S. consumers polled by First Insight and Wharton’s Baker Retailing Center indicated that 68 percent were willing to pay more for sustainable products. What’s more surprising is that 94 percent of retailers believed customers preferred brand names to sustainability!

Want repeat business? Don’t repeat your mistakes.
Is your solution a problem?

If your solution is intended to solve a specific problem but fails to do so, the customer will no longer buy from you. However, even if your product does not meet their needs, if they continue to use it, it is just until they find a better alternative.

Your support sucks?

Poor service will drive 96 percent of your customers away.

God help you if you have a lousy product and poor support customer service!

However, if your product is subpar but your customer service is excellent, you have a chance to retain the customer and enhance your product.

But if your service is terrible and your product is awful, your consumers will not put up with such nonsense. https://www.destinationcrm.com/Articles/CRM-News/CRM-Featured-Articles/72-Percent-of-Consumers-Will-Switch-Brands-After-One-Bad-Experience-Study-Finds-135838.aspx” target=”_blank” rel=”noopener noreferrer”>Eighty-six percent of consumers will tell others about a horrible experience they had with a product.

If you want to be top-of-mind, don’t put your customers at the bottom.
Sell a relationship, not a product.

The most important indicators for assessing new-age organizations are customer lifetime value and customer acquisition costs.

According to a Bain & Company research, 60-80 percent of satisfied consumers do not return to conduct further business with the company that first satisfied them.

Having a solid relationship with your customers is a great way to build brand equity. This is a substantial part of brand equity, but it is also the hardest to achieve and sustain. As a result of their emotional attachment to your brand, customers are more likely to buy from you again in the future. As a result, they may serve as brand ambassadors by participating in social media discussions on social media and brand community forums.

To be in touch, increase touchpoints.

Robert Zajonc, a social psychologist, came up with the Mere Exposure effect in the 1960s. It says that when people are used to something, they like it more. And if they have two choices, they’ll choose the one they’ve been exposed to the most, even if it’s not as good as the other one.

Designing a customer experience that promotes sales, retention, and referrals requires a thorough understanding of brand touchpoints.

Know your customers before they want you to stop knowing about them.
Build trust; don’t ask them to adjust.

Ninety percent of Americans consider customer service when selecting whether or not to do business with a company. Eighty-nine percent of customers say they are more inclined to make another purchase after having a good customer service experience.

Additionally, note that 70% of shoppers base their purchasing choices on brand trust.

Customers find you reputable and want to do business with you when they trust your company. Customers will be more vocal, loyal, and engaged due to this. This sets the tone for your company, and as consumers advocate for you, you’ll be able to attract additional customers who are willing to invest in your product.

Zero-party data – the real hero.

Understanding and experiencing your current customer’s journey firsthand is the first step towards changing consumer behavior.

Brands may acquire zero-party data – information that a consumer voluntarily provides a brand, such as purchase history, product preferences, size, and other relevant features – and then use that information to deliver tailored content such as product suggestions and special offers.

Perx was used by a top telecommunications company, to improve customer engagement. With Perx’s dynamic interactions, the telecom company achieved a 99 percent engagement rate in just 100 days after being live.

After slicing and dicing customers into the company’s audience personas, Perx began by investigating actions that customers had previously undertaken but went unreported. Next, we identified appropriate rewards based on customer data to incentivize these customers to repeat these actions. Then, using unique engagement mechanics, Perx merged several of these activities. Finally, on the Perx platform, all of this was wrapped in a gamified in-app experience layer that users interacted with.

Know your customers, so they say no to your competitors

Your most significant influencer is your customer. However, unlike endorsers and influencers, you cannot pay your way with the consumer. Instead, you must establish a connection with your consumer and get to know them. Take one step forward, and they will take two steps towards you.

CUSTOMER SUCCESS STORIES

4 Ways to Leverage Customer Loyalty Rewards Programs During the Annual Post-Holiday Sales Slump

4 Ways to Leverage Customer Loyalty Rewards Programs During the Annual Post-Holiday Sales Slump

Grace Alexander

MarTech Blogger | January 19, 2022


The holidays are upon us, but the joy and excitement is dimmed a little for retailers, who know that after the high comes the low of the post-holiday sales slump.

While estimated holiday retail shopping by EOY 2021 is $1.147 trillion, it’s all too easy for brands to lose sight of the importance of customer experience once the holiday season has come and gone. Customer loyalty programs are perfect for boosting revenues in January and beyond, but you have to take the right approach and understand your customers psychologically.

Post-Holiday Spending Guilt Is Real – Exploit It!

Traditionally, retail spending takes a dive after Christmas sales as people see credit card bills coming due and promise to be more financially responsible. So they tighten their belts, resolve to save money, and feel good about purchasing through your loyalty program.

Some retailers may find it difficult to launch new campaigns in January. Once the holiday season is over, all of that large marketing money spent on attracting and maintaining clients to boost sales in November and December will be gone. So what will give you the best bang for your marketing buck? Focusing on your most loyal customers, of course.

4 Ways to Keep Customer Loyalty On Track in 2022
Stay connected with your customers

Use your customer loyalty program’s capabilities to keep customers engaged and active through carefully curated touchpoints and opportunities. Connect across different channels (in-app messaging, email) to keep the interest alive.

A study of 46,000 shoppers showed that customers who used 4+ channels spent 9% more in the store, on average, when compared to those who used just one channel. So by spreading your net wide, you can increase brand awareness and stickiness and customer retention during a time of year that typically sees a slowdown.

Support good spending habits

Use messaging that connects smart spending with saving — which customers can do if they are part of your loyalty rewards program! Around 95% of customers say trusting a company increases their loyalty, and 91% say their trust in a company makes them more likely to buy more frequently.

If your customers trust you and tell them you will help them spend smarter, they will believe you. So focus on messaging that reiterates how much they will save by staying active in your rewards program and keep this message consistent across all platforms and campaigns.

Tap into those New Year’s resolutions

If your brand supports common resolutions, leverage that in your customer rewards program by providing actions that customers can take that make them feel they are contributing towards that goal and rewards that also help support their mission. Consider after-Christmas holiday sales that focus on products that hit typical pain points, like health, fitness, and fiscal responsibility.

The failure rate for New Year’s resolutions is about 80%, and most lose their resolve by mid-February. Offering to help customers keep their resolutions can be a way to increase brand loyalty and participation in your rewards program. However, don’t stop there.

While you should make sure to congratulate your customers when they step up and do something good for themselves, if they quit, you don’t want them to feel judged. So make sure you tailor your program to prompt a feel-good reaction from customers even when they may fail at their New Year’s resolutions. Be ready to give them something else to focus on that prompts them to continue their journey with your brand.

Have a special rewards promotion in January

Spending spiked in January 2021 thanks to government stimulus checks in the United States, but typically January is a slow month for sales and a higher one for returns. However, you can find ways to leverage your best customers into coming back and spending more even during the holiday slump.

Odds are, customers using your loyalty rewards program racked up points with holiday spending. So offer to help them capitalize by providing extra perks like a free shipping coupon on purchases over $50 placed by January 31st.

How a Digital Loyalty Marketing Platform Can Help

How do you keep customers engaged with your brand in the post-Christmas sales slump? It’s crucial to prioritize customer experience through interaction even after the holidays are over. It’s never a bad time to work on your customer engagement methods, and while your competitors are slacking is a great opportunity.

The Perx Lifestyle Marketing Platform (LMP) makes it easier to maintain contact with customers after Christmas holiday sales are over by keeping the journey going through high-quality interactions and high-value rewards.

One of the newest features on Perx LMP is the ability to build and launch time-bound campaigns. So instead of simply having a 9-5 presence, your brand can precisely target consumers on a specific day, for a specific duration (or even during multiple time slots) on any given day of the week.

Find out when your most loyal customers are most eager to make a purchase and develop customized journeys for them that culminate in a reward that can be redeemed inside a tight window to create a sense of urgency and excitement. Target off-peak times, peak times, and any other time.

Using time-bound campaigns in January or any other time creates a lifestyle experience of engaging with your brand that can lead to even more trust and future engagement. Your customers are always “on”, and you too can be “on” and present for them with personalized micro-experiences that delight them and gamification that draws them in and keeps them constantly and consistently engaged.

Ready to start leveraging gamification and rewards to drive customer engagement in the months to come? Watch our video now to learn how Perx can help your brand barrel into the new year without missing a step.

CUSTOMER SUCCESS STORIES

The 5 Loyalty Rewards Program Engagement Tactics Your Customers and Brand Need This Holiday Season

The 5 Loyalty Rewards Program Engagement Tactics Your Customers and Brand Need This Holiday Season

Grace Alexander

MarTech Blogger | December 29, 2021


Is your loyalty rewards program going to deliver on expectations this holiday season — on both sides of the relationship?

5 Ways You Can Up Your Rewards Program Game
Reevaluate Your Scoring Systems

Many rewards programs are generic. They look, feel, and work the same – like a ledger that keeps a basic record of points earned and spent and does not really do anything else.

Take Starbucks: long known for their brand stickiness and impressive customer loyalty, the big brand took a belly flop back in 2016 when they decided to ditch their intuitive and straightforward 1 purchase = 1 star, and 12 stars = 1 coffee rewards program model.

They changed to a 2 stars per dollar spent-based model and required 125 stars to redeem a free coffee. This meant the average customer who liked regular coffee had to spend $62.50 instead of $48.00 to get their free cup of coffee, and the core customer base was enraged.

The coffee conglomerate took a while to recover but eventually added tiers to their rewards program, stopped stars from ever expiring, and added gamification and personalized rewards for loyal customers.

A simple scoring system is not enough, so it is time to learn a lesson from Starbucks’ stumble and recovery and learn how to truly engage with gamification and long-term relationship-building strategies.

Make Things Personal By Leveraging Customer Data

Customer loyalty and customer retention are inextricably linked, and big data and analytics are driving both — the importance of personalization in a good rewards program and tracking loyalty marketing metrics.

Customers that are actively engaged with brands and their loyalty programs make 90% more frequent purchases, spend 60% more in each transaction, and are five times more likely to choose the brand in the future.

You can use big data and analytics to ensure the rewards and opportunities offered to match a customer’s spending habits – whether they customarily spend on travel expenses, entertainment tickets, fine dining, or expensive electronics.

Perx’s rules engine makes all this possible by identifying the best incentive to drive consumer action, weaving the offer and experience into a seamless mobile-first journey, and surpassing customer expectations with experiences and rewards that fit their lifestyle.

Ensure Every Reward Is Exciting Enough to Be Memorable

38% of consumers are not interested in joining loyalty programs due to their lack of perceived value. People value their time, and they will opt out unless you make it worth their while to participate in your loyalty program. So, you must figure out how to keep them consistently looking for the next chance to participate and receive a reward.

Use gamification to keep them moving and plan “free” bonuses at intervals to prevent stagnation along the customer journey. Make every reward high-value enough to make it worth the customer’s time to engage with each touchpoint and remind them frequently about the bigger prize at the end of each segment of the journey while teasing the next round of experiences.

Double Down on Instant Gratification

Instant gratification resonates with consumers, particularly the millennial and Gen Z audience, and 45% of consumers say they will switch brands if a company does not actively anticipate their needs. These customers crave immediacy and have become fast adopters of click and collect, needing that hit happiness that comes from getting a reward.

Start your customer journey with actions and rewards that offer immediate gratification. Then, slowly build to longer experiences with bigger rewards at the end to increase trust and belief in your program’s value. Provide nudges and assistance in reaching goals to prove your loyalty to your customers is as strong as you want their brand loyalty to be.

Beat Out Your Competition By Going the Extra Mile

What is your competition doing? It is time to investigate. If they are offering a discount on a loan or an increased interest rate to members of their loyalty program, find a way to sweeten the deal with an extra, personalized reward on top of the main offering to differentiate yourself.

Brand Loyalty Programs Designed For Maximum Engagement

Capital One’s “Purchase Erasure” recognizes it can be easy to forget to use bank card-associated air mile points during an impulsive travel planning session. As a result, customers can submit air mile point-eligible travel purchases up to 90 days after the fact for reimbursement. This makes customers feel like their bank is sincere about benefiting from their earned points.

One of Asia’s top three banks needed a creative and efficient solution to increase overseas spending of their high-end credit card customers. Perx identified a segment of existing overseas customers who were credit card users with a higher propensity to spend and leveraged real-time analytics and valuable customer insights into immediate, impactful business decisions and outcomes. As a result, the bank reached out to 21,000 of their existing customer base and 91% of targeted customers engaged with the campaign. Over 500,000 Instant Rewards were delivered in real-time, including 10M KrisFlyer miles, and the campaign achieved $24M in incremental spend for the bank.

Bonus Tip: Make it EASY

Perx rewards program for another bank used stamps culminating in a free high-value prize, with a QR code scannable at any participating outlet to redeem the reward and even a scheduling option for picking up the reward, propelling the customer through that last-mile to achieve their reward.

Conclusion:

The Perx Lifestyle Marketing Platform (LMP) is ideal for brands looking to build real and meaningful relationships with their existing and prospective customers and create customer experiences that engage and excite them. Brands can use a digital loyalty marketing platform to drive meaningful behaviors that result in personalized rewards.

Read how Perx and Mambu teamed up to redefine core banking, drive last-mile customer engagements, and ask for a demo today.

CUSTOMER SUCCESS STORIES

Want To Be A Super Brand? Be Super Nice To Your Customer

Want To Be A Super Brand?
Be Super Nice To Your Customer

Sundeep Keramalu

Director, Marketing Content | December 21, 2021


The red light green light game killed 255 players in Netflix’s Squid Games. Players in the first game didn’t know what they were getting into. They didn’t have a chance other than to play the first game. But before the second game could begin, the contestants had a chance to back out from playing any more games. Some took that chance to walk out, and some remained. Then something interesting happened.

The players who opted to stop playing saw that getting out of the game had changed nothing. They were back to their miserable lives. In contrast, the players who wanted to continue playing had a chance of getting out of their misery. But when the ‘I-want-to-stop’ players got a second chance to return, they did. 93% of players returned. They knew that death was certain if they didn’t win a certain game. Yet this was them making an informed decision.

When your audience is desperate, and you give them what they are desperate for, they come. They come not for the love of you; they come for the love of what you are offering. And if you provide it enough, you might get them to fall in love with you.

Customers love brands that love their customers.

There is nothing taboo in brand-customer love. It needs to be the right kind of love, though. Nothing crazy. Nothing weird. The wrong type of love will chase them away.

Let me give you an example.

The 90s Bollywood movies worshipped this plot. So, the male lead stalks and harasses the unsuspecting female lead. He then tells her that he loves her and cannot live without her. He also tells her that if she says no, he will jump off a tall building or cut his wrist or jump in front of a speeding bus and die. When the female lead tells him point-blank that she is not interested in him, he thinks she is playing hard to get. He tries harder. He begins to harass her in every unimaginable way until she decides to give in. She decides to give in not because he has persuaded her to give it a shot. She decides to give in because she doesn’t have a way out of all the harassment.

78% of millennials are willing to switch to a company that offers better loyalty programs. Only products may not be sufficient to maintain customer loyalty. Customer experience over products has a better chance of drawing customers. Amazon sells products. But what it sells over products is convenience. The convenience of having the product delivered to your doorstep. Hassle-free. That convenience is a reward in itself.

Some brands don’t know where to draw the line. Some brands see where the line is, but they don’t know how to stop themselves from crossing it. The line between what brands can do and cannot do is thinning. At the same time, that very line is broadening. A brand’s motive behind pursuing a customer defines whether a line is thin or broad.

The line is thin for a brand that wants to listen to its customer before it can make an attempt to be heard.

Customers love brands that love their customers. But you know what customers love even more? Customers love brands that try to understand what their customers love.

Brands spend millions of dollars on product research. But they don’t spend even a quarter of it researching what their customers love.

Privacy regulations are getting tighter than strings in an action movie. But editors get to remove the strings in post-production. Likewise, brands can remove the strings attached to privacy concerns. And today, customers are willing to let brands remove those strings. All they expect in return are transparency and better offerings. And, of course, a little something for their efforts.

That’s fair, though, right?

That’s the beauty of zero-party data. You don’t have to stalk your customers. You don’t have to worry about getting caught with your hand in the damned cookie jar. No guesswork from tons of behavioral analytics!

Zero-party data is milk from the cow’s teat. As pure as they come.

I know a friend who shops on an e-commerce website for protein supplements. It seems three out of five times he placed an order, he got vouchers for baby food and baby diapers. He is single and doesn’t have kids. He told me he has never browsed anything related to “baby” stuff on the app. He stopped placing orders on the app and switched to another e-commerce company. He tells me he is happier with the second company for his protein supplements needs. This is despite the fact that the second company does not offer as high discounts as the first one. The second company offers him scratch cards with gym wear discounts. Now that is a company that understands him better.

Brands have an obligation to understand customers. When they don’t know what customers want, customers feel obligated to look elsewhere.

Offering an app alone with random discounts to unrelated products is not enough. Offering the right kind of products and rewards around the customer’s lifestyle matters.

Zero-party data doesn’t cost zero. It costs a lot more, but a lot less than one can imagine.

To get closer to customers, brands must pay attention to what customers are closer to. You can do that as easily as ABC with super-apps.

Super-apps are not blind rage. They are a meaningful rage designed to engage customers at every stage.

Take a look at what one of our clients is doing. Siam Piwat, Thailand’s leading mall operator, is revolutionizing the shopping experience.

They were ahead of the curve in reinventing their retail business. They are now pivoting to new business models through strategic partnerships. Perx Lifestyle Marketing Platform (LMP) will help co-create the transformational ONESIAMP SuperApp.

The super-app will build communities around customer interests. This will create effective marketing campaigns, promotional activities, and loyalty programs.

Super-apps are super effective when it comes to delighting and exceeding customer expectations. It’s a way to give them what they want in the way they want so you can get what you want — better data. And as you already know, data is the new oil!

Take a look at Tencent’s WeChat. It started as an empathetic messaging service. Soon, it was the “app for everything.” You could chat, pay, book tickets, open up a store – it gave the consumer the power — to do, create, and empower. In 2018, it was the ‘world’s largest standalone app’ with 1 billion monthly active users (MAU).

Super-apps may not bring down customer acquisition cost (CAC) to zero, but they can lower CAC. With the ability to cross-sell and upsell, you can make out like a bandit in the long run.

Perx Lifestyle Marketing Platform is a brand that helps you harness zero-party data. It can help you strengthen your bond with your customers.

You can immerse users, exhilarate them, and amplify connections in the evolving universes. Give the right rewards to your customers with our integrated advanced gamification elements. Hyper-personalize rewards that match customers’ lifestyles with rewards and merchants management. In short, Perx enables you to transform customers into super fans!

Want To Be A Super Brand? Be Super Nice To Your Customer

It all boils down to offering rewards that matter to your customers. When you do that, you can drive customer actions that matter to your brand.

CUSTOMER SUCCESS STORIES

The real cost of standalone loyalty programs

The real cost of standalone loyalty programs

The real cost of standalone loyalty

The real cost of standalone loyalty programs

Martech Influencer, CEO of Esco Media | June 29, 2021