How reimagining customer journeys can build brand advocacy and customer loyalty
How To Build A Devoted Customer Base
Transcript of How To Build A Devoted Customer Base
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How To Build A Devoted Customer Base
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CARLY DEITRICH
LAUREN LICATA
DIRECTOR, PLATFORM BUSINESS DEVELOPMENT
SR DIRECTOR, PRODUCT MARKETING
Who The Heck Are We?
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STREET FIGHT MAG80%of SMB Merchants said customer acquisition was their
main priority.
8%
Customer Loyalty vs. Customer Acquisition
said customer retention was a priority.
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66% of small businesses don’t have a
loyalty program.
34% of small businesses do have a program.
SOURCE: BIA KELSEY
Customer Loyalty vs. Customer Acquisition
46% of those are digital.
54% of those are NOT digital. (paper, verbal, other).
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Customer Loyalty vs. Customer Acquisition
Building loyalty with 5% more customers would lead to an increased average profit per customer of between 25% and 100%
(The Loyalty Effect)
Loyal customers make up roughly 20% of your total customer base, but they account for about 80% of total revenue.
(Entrepreneur)
VIP and loyalty program members are 70% more likely to spread the word about your business.
(Loyalty 360)
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Customer Loyalty vs. Customer Acquisition
You need NINE first time shoppers
To reach the conversion of ONE repeat customer.
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Types of Loyalty Programs
Southwest AirlinesBellyDiscover Rewards
Starbucks
Sephora
CVSWalgreens Barnes & Noble Petco
Panera Bread
Panera Bread
Best Buy
Papa John’s
Safeway
Target National Car RentalPlenti
PlentiPOINTS BASED
SPEND BASED
TIERED
DISCOUNT
COALITIONHilton HHonors
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Types of Loyalty Programs
Southwest AirlinesBellyDiscover Rewards
Starbucks
Sephora
CVSWalgreens Barnes & Noble Petco
Panera Bread
Panera Bread
Best Buy
Papa John’s
Safeway
Target National Car RentalPlenti
POINTS BASED
SPEND BASED
TIERED
DISCOUNT
COALITIONHilton HHonors
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Types of Loyalty Programs
Southwest AirlinesBellyDiscover Rewards
Starbucks
Sephora
CVSWalgreens Barnes & Noble Petco
Panera Bread
Panera Bread
Best Buy
Papa John’s
Safeway
Target National Car RentalPlenti
POINTS BASED
SPEND BASED
TIERED
DISCOUNT
COALITIONHilton HHonors
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Types of Loyalty Programs
Southwest AirlinesBellyDiscover Rewards
Starbucks
Sephora
CVSWalgreens Barnes & Noble Petco
Panera Bread
Panera Bread
Best Buy
Papa John’s
Safeway
Target National Car RentalPlenti
POINTS BASED
SPEND BASED
TIERED
DISCOUNT
COALITIONHilton HHonors
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Types of Loyalty Programs
Southwest AirlinesBellyDiscover Rewards
Starbucks
Sephora
CVSWalgreens Barnes & Noble Petco
Panera Bread
Panera Bread
Best Buy
Papa John’s
Safeway
Target National Car RentalHilton HHonors
Plenti
POINTS BASED
SPEND BASED
TIERED
DISCOUNT
COALITION
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Common Loyalty Program Mistakes MISTAKE #1
Creating Rewards That Are Not Valuable To Customers
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Common Loyalty Program Mistakes
A Poor Customer Enrollment Process
MISTAKE #2
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Common Loyalty Program Mistakes MISTAKE #3
Not Optimizing Program Past Enrollment Phase
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Common Loyalty Program Mistakes MISTAKE #4
Not Promoting Loyalty Program To Customers
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Common Loyalty Program Mistakes MISTAKE #5
Not Identifying Who Loyal Members Are, Or What Is Driving Behavior
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Common Loyalty Program Mistakes MISTAKE #6
Initiating A Program Without Understanding How To Track Effectiveness
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How To Structure Your Rewards Program
CUSTOMERS REDEEM THE 10TH VISIT REWARD MOST OFTEN
HIGH VALUE REWARDS PROVIDE ASPIRATIONAL VALUE
OFFERING SIGN-UP INCENTIVES BOOSTS ENROLLMENT
OFFER A VARIETY OF REWARDS OF VARYING VALUE
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How Loyalty Fits Into Your Overall Marketing Strategy
EMAIL MARKETING
SOCIAL MEDIA MARKETING
CUSTOMER ACQUISITION
ONLINE REVIEWS
MOBILE PRESENCE
COUPONS & DISCOUNTS
WORD OF MOUTH
CUSTOMER LOYALTY
PROGRAM
ONLINE MARKETING
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How To Market & Manage Your
Loyalty Program
Send An Announcement Email
Engage Your Employees & Staff
Tweet, Post & Share It
Iterate Rewards Based On Customer Response
Give Customers What They Want
Market Your Program In-Store
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How To Measure Effectiveness Of Your Loyalty Program
New vs. Returning customer %
Net Promoter Score
Customer Visit Frequency
Customer Engagement
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Plan For Omni-Channel
Remember To Put The
Customer First
Consider A Digital Loyalty Program
But, What Next?
Focus on Customer Retention