How to build a profitable customer loyalty program · 5 How to build a profitable customer loyalty...

How to build a profitable customer loyalty program

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TABLE OF CONTENTS

Introduction

The customer loyalty strategy

Customer loyalty marketing

Building relationship with loyal customers

Loyalty program success guide

Set up your program for success

Defineandmeasureobjectives

Customerlifetimevalue(CLV)

Golden rules of customer loyalty

The power of staying in touch

Acquire loyal customers

Top customer-acquisition tactics

Growaprofitablesubscriberlist

Customer database segmentation

Howsubscriberprofileswork

Identify stages of communication

Databasesegmentationtactics

Customer-retention tools

Email: key retention tool

Integrate email with other channels

Measuresubscriber-databaseperformance

Automate your loyalty program

How email marketing automation works

Smart email tactics for loyalty marketers

Conclusions

About GetResponse

Contributing authors


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INTRODUCTIONHaveyouevernoticedhowskepticalandtight-fistednewcustomerscanbe?

Foronlinemarketers,it’saproblemthatcomeswiththe territory. And the attitudes of new customers andprospectsareperfectlyunderstandable.Afterall,yourbusinessprobablyisn’tontheothersideoftown,itmaybeontheothersideofthecountry—or of the world.

So each new customer wants to check you out. Test you.Makesureyouprovidevalue.

Findoutifyou’reoneoftheir kind of people.

Long-time customers are somuch easier to dealwith.Theyknow,likeandtrustyou.They’reconfidentthatiftheypayyoumoney,youreturnvalue.

Butcustomerloyaltydoesn’thappenovernight.

This is great news for you!

Why?Becausemanyofyourcompetitorslacktheskillsand thepatience tocultivatesolid customerrelationships.

So by studying this guide and implementing thetechniques, you can position your company miles ahead of the competition.

With this information you can:

Set up an online customer loyalty program that’saprofit center, not a cost burden.

Grow your marketing list with ideal customers who love to respond to your offers.

Tweak your marketing program for maximum performance and profitability.

Andbestofall,put the entire program on autopilot.

Wecover all the basics andprovideaction stepsalong the way. In no-time your loyalty program can beinplaceandautomatedtoserveyourcustomersandprospectswithminimuminvolvementfromyou.

So let’s get started …

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THE CUSTOMER LOYALTY STRATEGY

1. Customer loyalty marketing

Manymarketersfocustheireffortsonactivitiesthatbuild brand awareness and visibility, reach newaudiences, attract new customers, and acquire new leads — essential elements of every successfulmarketing strategy.

Yes, new website visitors and one-off purchasesare great revenue-drivers. But the real value isin your current customers and people you havealready made contact with. So in your marketing efforts, make customer loyalty a priority.

Brand experiences foster customer loyalty

Customer loyalty is an emotional bond with yourbrand.Itcanonlybefosteredbybuildinglong-termrelationships based on positive and consistent brand experiences.

Let’s takea real-life example.Whoare youmorelikely to trust: a friend you know quite well or a completestranger?Ifyou’relikemostpeople,you’dbemorecomfortablewiththefriend.

But to every new prospect, you’re a stranger. Bynature,newprospectsaren’topentodialoguewithyou and remain skeptical.What’smore, they arereluctant to recommend you to friends or family.

You must create and nurture customer relationships to gain trust.

Loyalty and rewards

Manybelievethatphysicalincentivesandrewardshelp gain loyal customers. In some cases this approach canbe successful, but formost it’s notenough.

A loyalty program is about giving your customers what they need AND making them feel noticed. It’s about listening to feedback AND nurturing relationships.

Apositiveattitude toward thebrandarisesbasedon rational thinking and emotional feelings: quality oftheproduct,goodprice,greatcustomerserviceand support, peer pressure, or simply fashion. So when establishing a customer loyalty program,makesureyouknowwhycustomersbondwithyourbrand,anduseittoyouradvantage.

2. Building relationship with loyal customers

Loyal customers are a true asset to your brand,as they are the ones who are likely to make repeat purchases, recommend your products and services to others, and become brand advocates.

Andit’slessexpensivetoretaincustomersthantoacquirenewones.Soinvestinginloyaltyprogramsandrelationshipmarketingisasmartmove.

Butlikesocialrelationships—businessrelationshipsdon’t happenovernight.So take the time toplan,useasystematicapproach,andbepatient.


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STATISTIC: According to Inc., it costs a business about 5-10 times more to acquire a new customer than to sell to an existing one — and on average a current customer spends 67% more than a new one.

Loyalty Loop (McKinsey Model)

The traditional sales-funnel model only considers the customer’s pre-purchase decision process.Marketers need a different model.

In 2009 McKinsey published a new customerpurchasing-behavior model called the LoyaltyLoop, in which great post-purchase experiencesdrive repeatpurchasesand loyalty. In thismodel,customer retention and relationship programs are important elements of your marketing strategy.

To reduce future marketing costs and multiply your revenues, keep your customers out of the brand-consideration phase. Know where and how to reach out to your audience, so you can guide them to the finalandmostdesiredstage:advocacy.

Here are the stages of the McKinsey Model.

AwarenessTo address a large and heterogeneous audience, youmustintegratemanymarketingchannels:blog,retargeting,onlinesearch,socialbuzzandothersthatexposeyourbrandtonewpeople.

This is themost-active stage for lead generationstrategies. So present sign-up forms in retargeting ads, Facebook apps, on your sites, in exchangefor downloads and coupons, and off-site at stores andtradeshows.Makesureeverynewsubscriberreceivesawelcomeseriestohelpmovethemtothenextlevel.

ConsiderationInthisstageit’sthetimetonarrow-downthetargetand customize the communication with action-basedcampaignsbasedonemail-openedor link-clicked.Thecontentneedstoberelevantandtimelyas interest can fade quickly.

This is also the right stage to provide detailedinformation about your offer. Content types thatworkbestincludealternativeproductversions,extrafeatures, free trials, quality proofs, case studies, expertopinions,anddemos.

PreferenceIn this phase customers like to compare brands,prices, and product features. So provide socialproof — recommendations, testimonials, priceguarantees and discounts— to help themmaketheir choice.

Again, send automatic communications based onconditions met, in order to reach the right prospects with themostengagingofferonan (almost)one-on-onebasis.

Picture 1. McKinsey Loyalty Loop

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ActionWhen the customer makes a purchase, your jobisn’tover. Inaddition tosystemnotifications,offercross-sells and up-sells, future-order discounts, transactionrewards,etc.This is the timetoboostcustomer loyalty.

LoyaltyThe ultimate result is a separate path for your most loyal customers: a loop from one transaction to the next without repeating the 3 initial stages(awareness, consideration and preference).This requires a customer bond based on trust,satisfactionandcredibility.

Atthisstageyouneedtodomorethanofferanextlogical product (NLP); you need to express yourappreciationandbuildtherelationship.Sorequestproduct feedback and offer tips and tricks andtutorials to help them make the most of the product. This is the time to clearly define the benefits ofloyaltytoyourbrand. AdvocacyYour best brand advocates are customerswhosedemands and expectations are 100-percentsatisfiedbyyourproductorservice.Thesebrandadvocates are key elements of your marketingstrategy,soencouragefeedback.

Now you can say that you really know yourcustomers and they really know you. So your communication should be personalized and

customer-oriented. Make it easy for the customer to modify their preferences, access resources and support, connect with you on social media, and receiveinterestingupdatesabouttheoffer—inaformatthat’seasytoshare.

What’s next?

Once your customers reach the loyalty stage, keep them in the “loyalty loop”. This means that when the funnel stages are completed, the customer need not goback to the“awareness” level.Thepath to thenextsaleshouldbeashortcutfromtheadvocacystage to the action stage.

Yourjobasmarketeristomakesurethecustomer’sexperience at the consideration and preferencelevels ispositive, interestingandvaluableenoughto build trust, satisfaction, confidence, and brandcredibility.

Apply: Brainstormabouthowyourbestcustomersinteractwithyourbusiness.

Haveyousetupaseparatecommunicationsloopforcurrentcustomers?

If not, how could you segment them for special attention?

WhatkindsofcommunicationdotheyNOTneedtoreceive?

What kind of gratitude emails could you add to yourbuyingcycle?

Gettoknowyourcustomerswithsurveys. Study their responses to your communications

andtheirbuyinghabits.Picture 2. McKinsey funnel


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LOYALTY PROGRAM SUCCESS GUIDE

1. Set up your program for successEvery business has different goals and differenttarget markets, so a single recipe won’t workfor everybusiness.Onesizedoesn’t fit all. Forabrandtoselecttherightapproach,it’skeytohavean in-depth knowledge of customer needs and preferences.

Planyourprogramwiththesestepsinmind:

Popularloyaltyprogramtypes

Pointssystem–awardpointstocustomersforeverytransaction

Tieredloyaltysystem–rewardcustomerswhospendmoreorhavelongertenure

Loyaltycards–offermemberexclusives Non-monetaryloyaltyprograms–reward

customerswithbenefitssuchasaccesstobetterfacilities,exclusivecontent,andpremium customer care.

Co-brandedloyaltyprograms–partnerwithotherbrandsforaddedvalue

Customerdelight–Encourageloyaltywithexcellentproductquality,customerexperience,andcustomerservice—notspecialincentivesor rewards.

Apply: When you start a relationship marketing program:

1.Establishclearbusinessobjectives.2. Answer these questions: Whodoyouwanttoaddtoyourdatabase? Howshouldyouestimatethevalueofeach

contact?

How long do you want to keep the contact in thedatabase?

Howcanyousegmentyourdatabase? What do you hope to gain with your

communicationstrategy?

3. Use these insights to create relevantcommunications.4. Alwaysmeasure the results and optimize yourapproach.

Picture 3. Loyalty program guide

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2. Define and measure objectivesWhenyoudesignamarketingprogram,establishclear expectationsandwell-definedobjectives forkeyperformance indicators (KPI).Definegoals tohelp you determine the right strategies and tactics.

Useful metrics


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3. Customer lifetime value (CLV)Allofthemetricslistedabovearecrucialindicators.But customer value is what’s most-influenced byyourloyaltyprogram.Gettoknowthisvaluebeforeyoudefineyourinitialbudget.

Customer lifetime value (CLV) is a formula forcalculating the long-term value of a customer—how much a customer is worth over a period oftime.It’sveryimportanttocalculateCLVbeforeyoustart any customer retention program or plan your acquisition spend.

CLV lets you determine how profitable yourcustomer relationships can be and how muchmoney to allocate to your loyalty program. Different customergroupshavedifferentvalues,soit’sveryimportant to know the spend-potential of each of your customer groups.

Sample CLV calculation

Calculation:(averagevalueofasale)x(numberofrepeat transactions) x (average retention time inmonthsoryearsforatypicalcustomer)

Based on this calculation you can easily determine how much you can spend to acquire and retain eachcustomerandstillremainprofitable.

STATISTIC: Compared to non-members, members of loyalty programs who respond to email had 40% higher open rates, 22% higher click rates, 29% higher transaction rates, and 11% more revenue generated per email.

Create a good first impression

It’s essential to deliver a positive brand imagefrom the start, when customer attention is highest. This is the perfect stage to initiate ongoing communications.

Remember: Their original appreciation and “leap of trust” earn you credits for future interactions. 74.4% of consumersexpect to receiveawelcomeemailwhen they sign up (BlueHornet: 2013 ConsumerViewsofEmailMarketing),butonly39%ofbrandssend one (Ciceron: The First Impressions EmailMarketing Study, 2013). If wasted – this potentialcanneverberecovered.

Apply:53%ofmarketersagreewelcomemessagesbesthelpthemachievetheirbusinessgoals(DMA:NationalClientEmailReport,2013).Usethemasanopportunitytodevelopasteady,regulardiscoursewith your audience:

Thank and reward your prospects and customersfortheirinterestinyourbrand.

Picture 4. Welcome message from RHYTHM Magazine

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Letthemlearnmoreaboutyouwithanoverviewofcompany,productandteam.

Buildasenseofexclusivityandbeing“inthecircle” from the start.

Raiseexpectationsthatyouareabletomeet. Planawelcomeseriesthatgraduallydelivers

usefulandinterestinginformationaboutyourcompanyandofferandbuildsacoherentpictureofyourbrand.

Picture 5. Wedding Wire message cycle. Email #1




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Be responsive

Tobuildone-on-onerelationships,youneedtosendtherightofferattherighttime.Butitmaybedifficulttofigure“what”and“when”tosend.Toanticipateaudience expectations, you can track their onlinebehaviorandrespondimmediatelyandaccurately.Oryoucaninviteyouraudiencetoadialoguethatengages them.

Remember: If you reach out to your customers for opinionsasawaytostartaconstructivediscussion,remember to treat it seriously. Even negativefeedbackcanbringpositiveresultsifyourespond,compensateforlossand—mostimportant–evolveandeliminatethepotentialproblemsources.

Apply: Personalized, customized content helpsyour customers feel that you know them really well. Morethan64%ofU.S.andU.K.Internetuserswantmarketers to demonstrate knowledge of the types ofproducts,servicesandofferstheylike.(e-Dialog:Manifesto for E-mail Marketers: Consumer Demand Relevance,2010).

Askyouraudienceabouttheirpreferencesearly in your relationship and make it easy for them to update their info.

Makeeveryinteractioncount.Don’tleavecontact attempts unanswered: comments on blogsandsocialwalls,emailrepliestoyournewsletter,phoneorlivechatinquiries.Yourresponse starts a dialogue and lets people feel anindividualconnection.

Getpersonal.Letyourcustomersgettoknowthepeoplebehindtheanswers.Use“human”email addresses, signatures and team photos and encourage customers to contact your reps whenevertheyneedthem.

Match your time settings to audience routines, andsetupone-to-oneaction-basedandevent-basedmessagestoaddresstheirinterests.

Reacttobehavior.Withemailautomationit’seasytoshowthemyourecognizetheironlineactions—suchasapurchase,downloadorclick—tomakecustomersfeelindividualandunique.

Listen when customers tell you what they want

Whether it’s behavioral data that triggersindividualized responses, demographic info forrazor-sharp segmentation, or survey stats thatgive you a bird’s eye view of expectations andbrand perceptions – data collection is one of themost important elements of customized contentand targeting strategies. This, in turn, can help you develop a closer and more personal relationshipwith your audience.

Picture 8: Smart Furniture preference center

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Remember: Segmented email campaigns produce 30% more opens and 50% more clicks thanundifferentiated messages (Monetate: IntelligentEmail Marketing that Drives Conversions, 2012).The effort is really worth it.

Apply:It’snoteasytolistentoindividualvoicesina heterogeneous crowd. How can you get through andencourageconstructivefeedback?

Startearlybyusingwebformstocollectdemographic info.

Offer a customer-managed preference center togivethemcontrolandensuremaximumrelevance.

Doyourownmarketresearch:runsurveys,andjustcustomersatisfactionpolls;overtlyaskyour customers what they need.

Derivebehavioraldatafromtransactions,engagement stats, and goal tracking.

Closely monitor the choices your customers makeontheWeborinemail,soyoucanfollowup with customer-oriented content.

Let customers get to know you

Attempts to increase customer retention and customer lifetimevalue(CLV)dependforsuccessonhowtheyperceiveyourbrandinthelongrun.

Remember: To really stand out in a highly competitive market, a great offer and excellentproducts need to be supported with a coherentcompany mission.

Apply: Use various communication channels topresent different aspectsof yourbrandandoffer.59%ofrespondentsaremorelikelytotrustbrandsthatintegratesocialmedia—MassRelevance:

The Social Hunger: Why Your Audience Feasts on SocialIntegration(2012).

Runablogorusesocialmediaprofiles(orboth)togiveyourbrandaninformalvoice,getmore direct contact with your customers, and createagenuinebrandcommunity.

Don’tbejustaboutoffersandpromos;tellyourstoryandrevealthepeoplebehindtheproduct.

Gatherateamofenthusiastsandexpertstorepresentyourbrand,commentonindustrytrends,andcreateinterestingcontent–labeledwithyourbrand.

Integrateyourofflineandonlinemarketing.Youraudiencemembersconstantlycrossfromone to another.

Reward your customers

Fromthecustomer’spointofview,loyaltytoabrandmeans bonuses – rewards and incentives thatstandard customers don’t get. This reinforces thesenseofexclusivity–oneofthemajormotivatorstostickwithabrand.

Remember:7in10peoplesaytheyusedacouponor discount from a marketing email in the prior week.(BlueKangarooStudy,2012).Ifyouregularlyreward customer loyalty, it increases your chances ofgeneratingnewsalesfromexistingcustomers.

Apply:Rewardloyaltyasalong-termstrategy.Yourcustomers need to feel that the longer they stay withyouthemoretheycanbenefit.

Create opportunities to offer rewards: anniversaries,birthdays,tieredlevelstocomplete.


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Definetherulesforearningextrabenefitsatthe start, so no one feels disappointed. This alsomotivatesyourcustomerstocompletecertain requirements.

Rewardcustomersforpurchasesandencourage them to take action to gain more —actionssuchasreferringyourproduct.

Bring excitement and delight

63%of consumers agree that social experiencesmake themmore interested in a brand’s product.—MassRelevanceTheSocialHunger:WhyYourAudienceFeasts onSocial Integration (2012). It’sjustasimportanttoofferexperiencesthatchallenge,engage or entertain as it is to offer the product.

Remember:Yourbrandreputationdependsontheemotions it inspires. Turn your customers into true brandenthusiastswithinitiativesthatexcite,amuseand surprise them.

Apply:Involveyourcustomersinthe“game”–letthembeapartofan interestingevent.Thishelpsyoucreateagenuinebondwiththem.

Runcontestsandchallengesthatinvolvebothparticipants and the audience.

Inyourcommunicationsprovideamusingorinterestingindustrytrends,events,stats,andtrivia.

Collaboratewithotherbrandstoacquirenewaudiencesandtogainareputationforbeingfriendlyandindustry-proactive.

Contentcreatesanexperienceforyourcustomers,too.Surroundthemwithvaluableinformation–it’sworthit:72%ofB2Bbuyersaremostlikelytoshareusefulcontentviaemail.(EarnestAgency).Soyougaintwo-fold.

Add value

Added value is the essential element of a loyaltyprogram.Sogobeyondstandardexpectationsandprovidecomprehensivesupportandassistancetoyour customers.

Remember:Theaddedvalueneedstomakeyourcustomersnotonly feelexclusiveandspecialbutalso visibly distinguish your offer from competingoffers. Apply:Expertadvice,educationalprograms,helpline,demosandexclusiveworkshopsarethebestwaystoensureyourcustomersthatthey’reingoodhands:

Talkabouttheextraservicesthatcomewithyourproductorservice,suchasqualitycertificatesandproductguaranteesordedicated assistance in emergencies.

Offervisualaidsandexpertise:demos,videotutorials, one-on-one consultation sessions, workshops.

Picture 9. Crocs: It’s been a while! The shoe manufacturer also offers a code for 20% off the next purchase

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Engageindustryexpertsandgurustotestyourproducts,giveadviceanddescribetheir“success paths”.

Remember to say ‘Thank you’

Useeveryopportunity to tell yourcustomershowmuchyouvaluethem.Nothingstrengthensabondmore than appreciation. And it’s not just aboutsaying “Thanks for the purchase”.

Remember: Spontaneous, neutral and disinterested gesturesmake your brand lookmore humanandfamiliar.

Apply:Inyour“thankyou”strategy,don’toverusethe phraseby squeezing it inwhenever possible.Use your creativity to show your customers howmuchyouvaluethem.

Sendoutpersonalized,“promo-free”greetingsonatleastoneimportantpublicholidayayear.

Rewardyourmostloyalandengagedcustomerwithgiveaways.

Add a short “Thank you” to your transactional emails.

Runa“Thankyou”campaigneverycoupleofyears,ortocelebratewithyourcustomerswheneveryoureachcertainmilestonesinyourcompany story.

5. The power of staying in touchAutomate to drive loyalty

Only 13% of B2B companies surveyed currentlyusemarketingautomation—andthemainreason?They simply don’t knowwhat it is (44%). - BuyerZone “The State of B2B Lead Generation: 2012Results”(2012).

And most companies are challenged with limitations onbudgets,timeandresources.Surprisingly,inthelong run, email marketing automation is the solution to all these obstacles, as it can savemoneyandtimeand let youbuild, rebuild,and reusecontentbasedoncustomerdemand. Where to begin?

If you’re starting your email automation programfrom scratch, take small steps and test all the possibilities.Allowtimetomonitorconstantly,trackresultsquickly,andrefinestrategies.

Try these simple trigger-mechanisms:

3-partwelcomeseriestopresentthespectrumofyourservices,practicalinfo,andyourbrandstory

2-steplink-clickoffers:promoemailwith2-3clickableoptions,eachwithalinkthattriggersa message that contains a special offer or incentive

Birthday coupon with a reminder to use it withinagiventimeframe


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These gradually unify the pieces into a coherent marketing program that reflects your audienceroutines, needs, interests and preferences.

At thisstage it’s important to learn to identifyandoptimize the marketing-funnel stages. Loyaltymarketing requires that you address their variousand evolving needs at every stage with differenttypes of content and offers. The funnel model gradually narrows your audience and grows their levelsofengagement.

Emailmarketingautomationcanhelpyouoptimizeyour results at each stage of the customer path andprovidethemwiththetypeofinformationthat’smostdesirable.

Awareness–time-basedautorespondershelpyoustay in touch and maintain regular communications tohelpcustomersgettoknowyoubetter.

Welcome series Step-by-stepprograms Product-rangeshowcase Inspirational newsletters Newsdigest

Consideration – use action-based messages toprovidetherightcontentattherighttime:

Targeted information upon email-opened and link-clicked

Testimonials and a product-opinions email whencustomerclicksa“Customerreviews”link

VideoemaillinkstoyourYouTubechannel Most-popular-resources list upon when

resource section link is clicked “Gotaquestion?”emailwithcontactdetailsfor

a support assistant

Preference – when your customer is close tomaking a decision, provide incentives to chooseyour offer. “Giveawayforfirstpurchase”witha

subsequentreminder Exclusivelimited-timediscountwhen

subscriberopensinitialoffer Final CTA for sales and special offers Notjustaboutsales:backupyouroffer

withcontentthat’srelevant,interestingandentertaining—suchasexpertopinions,producttipsandtricks,andbestsellerlists.

Action – don’t leave the customers on their ownonce the sale is complete. Show that their success is what really matters to you.

Picture 10. Birthday gift from NBA

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“Thank you” message upon completed transaction

Surprisediscountorgiveawayforfutureshopping

Up-sellideas–recommendationsontopadd-ons,extrafeatures,accessories

Loyalty – maintain frequent communication, notjust right after a sale. Let your customers knowyou’renow“goingsteady”.

Offerfreestuffexclusivelyforcustomers“inthecircle”:subscriptionsfortime-basedsequences, training programs, demos, one-on-one sessions, tips-and-tricks series.

Getmorepersonalwithbirthdaycelebrations,anniversarypurchases,holidaygreetingsandspecial offers.

Encourage use of the preference center and acknowledgechangeswith“customfieldchanged” messages.

Advocacy – actively seek customer support,involve them in discussions about your product,andexpressyourappreciation.

Create a referral program and reward successful recommendations.

Engageyourcustomersbyinvitingthemtojointhebrandcommunity.Thensendregularupdatesaboutevents,industrytrends,andopportunitiestoconnectoffline.

Useaction-basedautoresponderstosendfeedbackrequests.Makethempubliconyourwebsiteandsendoutinfowheneveranewreviewisavailable.

Thecombinationsarelimitlessfortime-,event-,andaction-basedmessages.Usethemaselementsofunique seasonal campaigns or create a complete program.

Triggered emails saw an averageCTR of 10.4%,more than double the general CTR for Q1 2012(eMarketer: Email Marketing Benchmarks: KeyData,TrendsandMetrics”,2013).It’sabenchmarkthat simply can’t be ignored, if your aim is anunthreatened market-leading position.

ACQUIRE LOYAL CUSTOMERSThe value of every successful loyalty programis in the quality and size of your emailmarketingdatabase.Asuccessful loyaltyprogramgivesyoutheabilitytoevaluatepotentialleads,buildstrong,lasting relationships with clients, and constantly growyourclientbase.

Ifyoubuildalistofsubscriberswhotrustyou,believeinthesamevaluesasyou,andactivelyparticipateinthedialoguewithyourbrand,yourperformanceresultsandresponseratesimprovecontinually.

1. Top customer-acquisition tacticsIt’s just as important to increase the size of yourdatabaseas it is tomanage your existing list. Todevelopyourbusinessandincreaseyourreach,youneedtogrowyourlistinareliableandresponsibleway. Just make sure you don’t squander yourmarketing budget on low-quality leads with notransactionalpotentialthatcanonlyloweryourROI.


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Herearethemostpopular,reliabletechniquesyoucan use to grow your marketing list.

Sign-up forms

Sign-upformsshouldbeeasilyaccessibleoneverypageofyourwebsite,blogandsocialnetwork.Tomakesurethey’reeffective,makethemvisibleandeasy to complete. When you attempt to persuade prospective clients to subscribe, you should beclearandhonestandaddressprivacyconcerns.

Landing Pages

Asqueezepageisaspeciallandingpagetypicallydesignedonlytobuildyouremaillist.Itshouldclearlyoutline thepromisedbenefits inacompellingandconvincingway.Anditshouldspecifytheexpecteduser action. The human touch is generally a helpful way to persuade prospects to sign up, so include testimonialswhenyouoptimizelandingpages.

Partnerships

Other newsletter publishers and vendors withcomplementing products or services tend to bereliable sources when you want to generate newleads.Reachout to(carefullyselected)ownersoflargerdatabasestobuildyourclientbase,increasebrandawareness,andenhanceyourbrandimage.Loyal customers need to be reassured that yourbrand shares the same values as they do, andassociateswithsimilar,respectedbrands.

Other content-distribution channels

Companies can promote their loyalty program through content distribution channels other thanemail marketing. If your company has a mailing list fromanofflinebusiness,youcancontacttheclientsandgiveaspecialrewardiftheysubscribetoyouronline newsletter.

Apply:It’seasytobeoverwhelmedbythenumberofwaysyoucanbuildyoursubscriberlistfromwhereyouaretowhereyouwanttobe.Butifyouusethissection as a checklist and tackle the techniques oneatatime,youcancreateanexpansionsystemto ensure growth.

Picture 11. DMA “National Client Email Report” (2013)

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2. Grow a profitable subscriber listEvaluateyourexistingemaildatabasewithgoalsinmind.Thinkofwaystooptimizeyouremailmarketingcampaignsandmaximizeleadgeneration.Typically,suchanevaluationincludesthesesteps:

Set up automatic list hygiene Specifythesubscriberprofile Measure the performance potential Identify the stages of communication with

current customers

Automatic email list hygiene

Internetserviceproviders(ISP),alsocalledmailboxproviders,tendtoactunfavorablytowardcompaniesthat don’t carry out list-cleaning activities on aregular basis. So list hygiene is one of themostimportantpracticestooptimizeemaildeliverability.For companies that run email marketing campaigns, poor listhygienemayresult in lowerdeliverability.This is because newsletters can be filtered tothe spam folder instead of the inbox and causeplummeting statistics for conversion, sales, andROI.

Listhygienemanagementshouldincludeattentionto these elements:

Bounces(removeinvalidemailaddresses) Complaints(removesubscriberswhomark

emailsasspam) Inactivecontacts(removethosewithnoactivity

inthelast90+days)

Apply: Be selective. Would you rather add onesubscriber who loves your business and buyseverythingyouselloronethousandcustomerswhocarenothingaboutyouandkeeptheircreditcardsafelytuckedawaywhentheyvisityoursite?

Email marketing is a numbers game… but notreally. A large subscriber count may gratify you,butonlytellshalfthestory.Evenmoreimportantiseachsubscriber’sloyaltytoyouandyourbusiness—andtheirspendinghabits.

Yourgoal is tobuilda large,responsiveand loyalcustomerbasethatgeneratesrevenueandprofits.

CUSTOMER DATABASE SEGMENTATION

1. How subscriber profiles workTheideabehindloyaltyprogramsisto locateandreward clientswho are themost active and loyaltoyourbrand.Soit’sessentialtoevaluateleadstotargettherightaudienceandmaximizetheROI.

Databaseprofilesletyousegmentsubscribersintogroups based on their behavior toward products,services,andoffers,sotheycanbetargetedmoreeffectively.Thegoalistorecognizedifferentclientneedsandbehavioralpatterns,soyoucanpreparecontent tailored to match the preferences of each group.


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Examplesofsubscriberprofiles:

Loyalcustomerswhomakerepeatpurchases Subscriberswhohavenotmadeapurchase Subscriberswhomadeapurchaseinthepast

andhavereturned Allothergroupsthatalignwiththecompany’s

businessmodel

2. Identify the stages of communication Whenyouprofileyourcustomers, it’sessential toidentify their current communication stage in the sales funnel. Depending on the stage, you should adjustcontentand tone to focuson the individualgoals that you set for each stage.

Each step in the McKenzie Loyalty Loop modelrequires different tools and points of focus:

1.Awareness2. Consideration3.Preference4. Action5.Loyalty6.Advocacy

To maximize the effectiveness of your customerloyalty program, youneed to distinguish betweenthesestagesandverifywhetheritistherighttimetoissueacall-to-action(i.e.makeapurchase)orfirstconvincethemthattheyhaveaneedthatremainsunsatisfied.

3. Database segmentation tacticsSubscribers are individuals with differentdemographics, preferences, and behaviors.Segmentation isanemailmarketingbestpracticethatcaninfluencethesuccessofyournewsletters.Afteryouhaveidentifieddifferentcustomerprofilesand communication stages, it’s essential tointroduceeffectivesegmentationtacticstoincreaseconversion rates. Use a different approach andcontentforeachaudiencetoincreaseconversion.Below are 7 savvy segmentation tactics tomakeyourcommunicationmorerelevantandengaging:

Psychographics

While demographic information such as age, gender, andcareerfieldishelpful,psychographicshelpyoutargetcustomersbasedonlikelybehaviors.

Think of psychographics as the flip-side ofdemographics. Psychographic data includeslifestyle,attitude,andbehavior information.Ifyourlistincludespeoplewhoenjoyhiking,youcantargetthosewiththatspecificinterest.

Use psychographics in conjunction withdemographics to pinpoint your audience.

Purchase history

Use purchase history to your advantage in twoways. First, offer similar items that might interest them. Second, upsell complementing products or servicesinafollow-upemailcampaign.

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Referrers

Animportantpartofyourcustomerbaseispeoplewhoregularlyreferbusinesstoyou.Yourbehavioralsegmentation strategy should include ways to showthatyouvaluecustomerswhobragonyourbusiness. Popular methods include discounts,loyaltyprograms,andaffiliateprograms.

Geography

Theadvantagesofgeographictargetingmayvarydependingonyourbusiness. If someproductsorservicesareofferedonlylocally,youdon’tneedtoemail information to people who are too far away to takeadvantage.Status

Segment subscribers by status so you can sendtargeted offers to each:

Activesubscribers(thosewhofrequentlyopenyour emails and click-thru to the promoted websitesandlandingpages)

Inactivesubscribers(thosewhohavenotopened any email for at least 90 days and did notclickanylink)

Targetbasedonproductsandservicespurchased

a. Customersb.Non-customersc.Customerswhoboughtmorethanonced.Prospectswhoabandonedtheregistrationform

Avoid over-segmentation

Asyoudevisesegmentationmethods,it’spossibleto do too much of a good thing. Your goal is to

personalizeoutreacheffortsandstillcreateinterestamong your customers. You can’t do that well ifyourcampaignsaretoospecific.Aballparkgoalof10segmentsisagoodplacetostart.

Keep track of your efforts and regularly evaluatewhichmethodswork. Inyoureffort topersonalizecampaigns don’t limit the size of your campaignbeforetheemailsareevensent.Ideally,findmarketsegmentsthatcanbebestservedbyemailstargetedto them as you continue to offer them products or servicesthatmightinterestthem.

Apply: Automation really pays off when it comes to segmentation.

Forexample,ifoneofyoursegmentsispeoplewhohaven’tmadeapurchaseinthepast90days,yourautomatedrulelooksatyourlisteverydayandaddsto the segment thosewho have crossed the lineinto 90-day territory, and drops from the segment those who responded to a special offer and made a purchase.

So let’s say you send your 90-day segment anoffer forbluewidgets that’s just toogood topassup. Those who buy the blue widgets can beautomaticallymoved toa list of peoplehowhavebought blue widgets, where you can tempt themwith an offer for red widgets.

Setupproperly,yoursubscriberscontinuallymovethemselvesuptheloyaltyladderbyrespondingtoyour offers.

Thesectionofthisbookonautomationcoversthisinmoredetail.Fornow,devisecriteriaforsegmentingyour audience, so you can serve up content andofferstheywanttoreceive.


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CUSTOMER RETENTION TOOLSThekey tosuccessofevery loyaltyprogramis tostay in touch with your customers. Email is the most effectivetoolforstayingconnected.

STATISTIC: “Email surpassed any other channel for repeat sales with 30% of transactions by repeat customers starting with an email from the retailer.” — Forrester: “The Purchase Path of Online Buyers 2012”

1. Email: key retention tool — by Kath PayEmail Marketing has finally come into its own withForrester research reporting that email marketing spend grows 10% year over year. Since its creation emailmarketing as a channel, has always been effective,however, the fact that it has been seen as being a‘cheap’ channel has actually hindered its positioningin themarketingmix,more thanhelped it.Becauseofitscheapstatusandstrangelyenough,becauseitisaneffective channel (with very little effort being investedintoit),brandshavepreviouslybeenreluctanttoinvestmoney into developing email into being the robust,necessarychannel that it is today.Recently theSmalland Midsize Business email Marketing Survey foundthat 56%ofbusinessessaytheyplantoincreasetheiruseofemailmarketingin2013.

Econsultancy’s Email Marketing Census 2013 foundthat 43% of marketers cited a lack of strategy as a key problem, followed by lack of time (41%) and poorsegmentation (39%).All of these canbe rectifiedwithincreasedbudget,anditseemsthat2013istheyearwesee this come into fruition.

Email Marketing has always delivered excellent ROI.Econsultancy’sEmailMarketingCensushas,forthelast4years,recordedEmailMarketingashavingdeliveredeitherthebestorsecondbestROIoutofallthedigitalchannels, with 70% of digital marketers rate email as the topmediumforROIin2013.

Consumersarealsowarmlyembracingemailmarketing,to the point where 44% of email recipients made at least onepurchase last year basedonapromotional email(Source: Convince and Convert) and other researchrevealed that consumerswho receiveemailmarketingspend 83% more when shopping. Not only that, buttheir orders are 44% larger, and they order 28% more often. Litmus found that 82% of consumers open emails frombusinesses andanother study reported astaggering 77%ofconsumerssaidtheyprefertoreceivepermission-basedmarketingthroughemail!

This of course, brings us to one of email marketing’smany strengths – retention marketing. Admittedly,retentionmarketingisn’tassexyasacquisitionmarketingandoftengetsforgottenorde-prioritisedwhenbudgetsand strategies are allocated and planned – but let’sface it– this iswherea lotof the lowhanging fruit is.Not only that, butweall know that it costs far less tokeep a customer than it does to acquire a customer. Retentionmarketingiswhereitiscomparativelyeasytoupsellandcross-sellusingemailtodrivemorerevenue.This is where relationship marketing steps in and email marketing shines.

Weall lovebeingrewarded,weall lovebeingmadetofeelspecial,beingmadetofeelasthoughwematter–and email is a perfect tool to do this with your customers. However,ifthetruthbeknown,asemailmarketers,wedon’tdoitenough.Wedon’tofferemailexclusiveoffers,wedon’tsay‘thankyouandhere’satreatforyou,’wedon’tsurpriseanddelightourcustomersasoftenasweshouldorcould.Andthat’softendrivenbyouroftenself-imposed concept that we should send less email.

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This is when testing comes in. Email is a perfect channel to test, improve and optimise – not only for our emailmarketingcampaigns–butalsotoleveragetheresultsthroughout our digital marketing campaigns as a whole. Considerthis,youknowyourbestcustomers,youcanidentify them and can track what they like, how often theywanttohearfromyou,whatsubjectlinestheyreactto,whatCTA’sinspirethemtoclick,whatoffers,creativeandcustomerjourneyworksforthem.

Take this knowledge and apply it to your other digital channels. Test whether the green or orange CTA buttonworksbest for thisselectsegmentofyourbestcustomers,andthenapplythattoyourwebsite.Youcanalsotestwhichimageworksbestforyouraudienceandthenusethatinotherchannels,bothofflineandonline-it’salotcheaperthanhiringexpensivetestpanelsordoingfocusgroups.Moreover,applytheselearningstoyour acquisition campaigns, so you can start to attract moreofyourbestcustomers.

EmailMarketinghasbeencitedbymanyonlineexpertsasbeing,notonlythebackboneofdigitalmarketing,butalso of customer engagement. Email is at the heart of everythingweasconsumers,do.Whetherwewant togain access to a forum, purchase a product online or set upasocialnetworkingaccount– theemailaddress isthekeytoyoubeingabletodothesetasks.

Which, in a nutshell is why email marketing is such a valuable channel. It is our access into our customersandprospectsworld.Not just simplyaccess into theirinbox–butaccess intowhat they likeanddislikeandwhattheyconsume–whetheritbegroceries,hardwareor news articles.

As emailmarketers we have an enormous amount oftechnology and metrics available to us, which are allapplicabletoanemailaddress–arealidentity–notjusta nameless cookie.

Itisbyleveragingthisdataandmaximisingthecustomertouchpointsalong their journey thatwestart to reallymake email marketing work. By identifying these key touch points we can then create triggered campaigns throughout the customer’s lifecycle according to theiractions or indeed, their inactions.

A recent study showed that open rates for triggered email were 60.8% higher than emails sent on a schedule. This is generally because thesemessagesareanticipated,requested and/or timely. And we, as marketers, as making the most of these wonderful opportunities bysendingtheseautomated,triggeredsequences–albeit,the customer is unknowingly the director in his own personalisedjourney.

So, to all email marketers I recommend a change in mind-set of two main factors. Firstly, consider email to be a cost-effective channel and not a cheap channel.Thiscanopenthegatesandletthebudgetflowintothechannel.

Secondly, I recommend that every permission-basedemail should be viewed as being a customer servicemessagenotamarketingemail.Yes,youmaybesellingthemsomething–butattheendofthedaytheyareonyourlistbecausetheywanttobe–soprovideavaluablecustomer service to them and don’t be apologetic fordoingso–beproud!

— Kath Pay


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2. Integrate email with other channelsInthecomplexdigitalworld,usershavepreferencesand online habits that constantly evolve. Theaverage consumer browses dozens of websites,blogsand forumseachday,getsknowledge fromcomparisonsites,connectswithfriendsonvarioussocial channels, and keeps up to date thanks to newsletters and news sites. Your ideal prospects probablydon’tcongregateinasingleonlineplacewheretheyareguaranteedtobefound.

So rather than force your audience to consume content on your terms, simply show upwhereverthey are. Whatever keep-in-touch communicationtools you choose, and whatever your contactstrategy,remembertocreateaconsistentmessageacross all online channels.

Althoughemailisthemosteffectivecommunicationchannelforretention,itcan’tbeasilo.Touseittoitsfull potential, integrate with other online marketing channelsandaspartofabroadercommunicationplan. If implementedcorrectly, itcanhaveahugepositive impact and increase the reach and theefficiencyofyourcommunicationchannelsoutsidesubscriberinboxes.

Email and website

The most common cross-channel integration is: emailmarketingandyourwebsite.

Simplyplaceasign-upbuttononyourwebsite tohelp you grow your email database. Then youremails can be the perfectway to drive additionaltraffictoyourwebsite.

Email and social media

The online world has become social. BrandsleveragethepowerofFacebook,Twitter,Pinterest,Linkedinandmanyothersocialchannelstostayintouch with their audience.

Social channels can become a great subscriber-acquisition tool, and your email database is themostcommonwaytointegrateallsocialchannels;emails can be sent to your audience to promoteyour social media channels and drive traffic andengagement.

Picture 12. Email Marketing Benchmark Survey 2013 Picture 13. Pottery Barn newsletter

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Socialsharingbuttonsinyouremailscanbeusedtospreadyourmessage.AnanalysisofGetResponsedatarevealedthatthenumberofuserswhoincludesocialsharingbuttonsintheiremailsincreasedfrom18.3%to29.4%in2012.What’sevenmorestrikingis the exceptionally high performance results fornewsletters that included social sharing buttons.Those emails had an average click-through-rate(CTR)158%higherthanemailsthatdidn’t includesocial sharing.

With so many other great ways to integrate email withother channels, it’sworth it toevaluateeachone and develop a fully integrated approach. Itdefinitely drives efficiency and multiplies yourmessage online.

3. Measure subscriber-database performanceCompanies need reliable metrics in order to runeffective loyalty programs, maximize ROI, andoptimize activities. Below are examples of keyperformance metrics used in email marketing:

Deliveryrate Open rate Click rate Bounce rate Conversionrate Revenueperemailsent

Twoofthegreatprivilegesofemailmarketingare:toactuallyseehowyournewsletterslookbeforeyouhittheSENDbuttonandtomeasureitsperformanceafterward.

Email marketing is considered the most reliablechannel of communication because of its directreach. It is also no place for slipups and mistakes. That’s why you should test and measure yourcampaigns.

How to perform tests

A/B tests

A common, well-known way to test is to compare the performanceofdifferentversionsofyournewsletterswithvariouselementsandcustomizations.

Picture 14. GetResponse Email Intelligence

Picture 15. GetResponse A/B test setup


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You can test unlimited scenarios, but the mostpopular elements are:

a)Subjectlineb)Graphicalcontentc)Elementsofpersonalization

Soanytimeyouhavesecondthoughtsaboutwhichimageortextworksbetter,testthem.It’saquickandreliableprocessthatdeliversimportantinformationtohelpyoudecideuponthefinalcontent.

Design-rendering test

The purpose of design-rendering tests is to make sure your newsletters look perfect in every emailclient,whetheryoursubscriberopensthemessageonamobiledevice,desktopemailclient,orweb-basedemailclient.Youresteasierwhenyouknowthat each reader sees what you want them to see, exactlyasyoucreatedit.

You can check different email clients, such as Microsoft Outlook and Apple Mail, and online inboxes,suchasAOL,Yahoo!,Gmail,etc.

According to industry research from Return Path(2012), users this year are more likely to openemailsonmobiledevicesthanonlaptopsandPCs.Sowealsorecommendthatyouoptimizeandtestdesign-renderingoniPhone,iPad,Androiddevices,etc.

Test message

An alternative to design-rendering rests is tosend test messages to your own email address. Thisallowsyoutoquicklysendapreviewforfinalapprovalofdesignandcontentorconfirmthateachpart of the message displays as you intend.

Thisisalsoagoodwaytocheckinboxplacement.We recommend that you send a test message to emailaddressesyouown,addresseshostedbyasmany ISPsaspossible, e.g.AOL,Yahoo!,Gmail,Outlook, etc.Youget quick the informationaboutdeliverability and design rendering and find outwhetherthenewsletterneedsworkonoptimization,IPreputationorIPcondition.

Spam tests

It’s important to know your IP performance andcondition.Luckily,thisinformationiseasytoaccess.Thanks to SpamScore check, your messages can be scanned for spam-filter risks. It is integratedwith SpamAssassin, so you can count on the most relevantdataandevaluationofyourdesign,content,fromfield,links,etc.astheSpamAssassindatabaseisupdatedconstantly.

We recommend that you perform these tests for every message to see if anything needs to beoptimizedbeforeyouhitthe“Send”button.

Measure your performance

The foundation of effective campaign planning isto analyze key factors, goals and performance.Knowledge of what works well and what needs moreattentionisthemostimportantassetofeveryemail marketer.

Thefactorswerecommendyoutoanalyzeare:

Open rate

Open rate is one of the most essential metrics for email marketing success. In practice, open rate representsthenumberofemailsopenedasaratioofemailssuccessfullydelivered(notsent).

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Accordingtothe“2013EmailMarketingBenchmarkStudy”, the average email open rate in 2012wasestimatedat19.7%industry-wide.

Bear in mind that open-rate tracking is availableonly in HTML emails. An open is counted whenthe subscriber clicks the “Display images” buttonanddownloadsthetrackingpixelalongwithotherimages.

Click-thru rate (CTR)

CTRisthemostprecisemetricinemailmarketing.Unlike open rate, it is 100-percent accurate anddoesn’tinvolveanyextrataskfromthesubscriber,suchasthedownloadofatrackingpixel.

CTR is thenumber of timesa link is clicked in anewsletterversusthenumberofemailssuccessfullydelivered(notsent).

According to “2013 Email Marketing BenchmarkStudy”, the average email click-thru rate in 2012was estimated at 5.4% industry-wide.We recommend that when you test calls-to-action, try hyperlinked text versus CTA buttons andgraphics to analyze audience preferences. Emailusersaremostlikelytoclickavisualrepresentationof the offer promoted in the email. However,Industrystudiesindicatethatspecifictargetgroups(teachers and B2B marketers) are more likely toreadtheentireemailcontentthenclickatextlink.

Subscription rate

With the latest tools, you can measure your list-acquisition channels. It is helpful to know the sourcesofsubscriberswhenyouplanandoptimizecampaigns. Identify the most successful sources for subscriberstocreateaneffectiveloyaltyprogram.

Apply:When you first start your emailmarketingprogram, statisticsmay not seem very important.But after you develop some history to use as abaseline,yourstatscanpaintaclearpictureofwhatworks and what you need to tweak.

Andwhenyoufirststartandyoursubscribercountislow,aslightimprovementinperformancehardlyseems worth all the effort of testing. But when your subscriberbasegrowstoasubstantialsize,asmallimprovementinperformanceratescantranslatetoalargeincreaseinactualincomeandprofits.

So even if you’re new to email marketing, checkyour statistics frequently and look for opportunities toimproveyourperformancemetrics.

AUTOMATE YOUR LOYALTY PROGRAM

1. How email marketing automation works Everwonderedhowcompaniesstay in touchwithand audience that grows constantly, maintain consistent email communication, provide unique,relevant and engaging content — all on whatseems likeaone-on-onebasis?That’s themagicof email automation. And the potential of modern autoresponders is almost unlimited:

Acustomersubscribes–thesystemfollowsupwith a welcome series.

Arecipientclicksthevideolink–thesystemoffersaccesstoavideolibrary.


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Acustomercompletesatransaction–thesystem responds with a thank you email or nextlogicalproduct(NLP)offer.

Andthat’sjustasampleoftheunlimitedportfolioofmarketing scenarios.

Email marketing automation lets you personalizeyour message, mimic one-on-one interactions, respondtosubscriberactions,customizeandtargetthe offer, and nurture relationships with consistent, regular communications. It allows you to automate all the processes, address large heterogeneous audience,andcatertotheirneedsandexpectationsonatimely,individualizedbasis:

Get personal Reacttowhattheydo Providewhattheyneed Listenandrespond Keepintouchonaregularbasis Encourage retention Expressappreciation

Companies that implement a complete email marketingautomationprogram—everythingfromcart abandonment programs to birthday emails— have seen conversion rates as high as 50%,with average CTR for triggered emails at 10.4%.—eMarketer “Email Marketing Benchmarks: KeyData,TrendsandMetrics”(2013).

Email automation can do it all. It can providegenuine customer experiences that help buildtrue relationships, increase retention and boostcustomerlifetimevalue(CLV).

In the modern digital marketing ecosystem, email automation is a tool that can help you build agreat brand experience for your customers, open

a dialogue, and truly respond to their needs and expectations.

Untargeted email programs are as much as 3.6times more costly than targeted programs. —Relevancy Group “Realizing the Value of EmailMarketing”(2010)

The best alternative to such inefficient budgetmanagement is a complete email marketing automation program.

2. Smart email tactics for loyalty marketersWelcome emails (event-based autoresponder)

Effective communication requires more thanstandardnewsletterssentatregularintervals(time-basedautorespondermessages.)

Thehighestratesofperformance(basedonopens,clicks)areearnedbyevent-based autoresponder messages.Deliveryistriggeredbyanactionoftherecipient, not when the sender clicks the “Send” button. Actions can be triggered when customer

Picture 16. Email Marketing automation scheme

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buysaproduct,completesthesubscriptionprocess,orabandonstheshoppingcartwithoutfinalizingthetransaction.

According to 2010 research by eMarketer.com,welcome messages (triggered when someonesubscribes to a mailing list) have open ratesalmost four times higher than standard promotional emailings. And click-through rates are more than fivetimeshigher.

Herearesomeofthebenefitsofinitialcommunicationcampaigns:

Developsarelationshipwiththecustomerfromthe start with a welcome message for each subscriber

Improvesthedeliverabilityofyouremails Increasesrepeattraffictothewebsite(through

incentivecouponsforpurchases,includedinthewelcomeemail)

These messages are fully automated and do not requirethereadertoclickthe“Send”buttonorany

manualactions.What’smore,theygooutassoonastheuserconfirmssubscription;(thesoonerthewelcomeemailissent,thegreateritseffectiveness.)

Newsletter updates

Another main pillar of email marketing is a periodic newsletter that focuses on current offers and promotionsavailablefromyourbrand.

Ananalysisofcurrentemailingpracticesbymanybrandsshowsthatcompaniessendtheirnewslettersdailyorseveraltimesperweek.

Multiple messages per day is not a generally-accepted best practice of email marketing. Too-frequentmessagescanleadto“databasefatigue.”We recommend that you send no more than one newsletterperweek—ageneralnewslettertotheentiredatabaseortargetednewsletterstospecificdatabasesegments.

Marketers also need to make a clear distinction between newsletters (sales emails) andautoresponders (education, information emails.)Simply design dedicated layouts for each type of message.Subscribersbegintorecognizethetypesofmarketingmessagestheyreceive.Inthelongrun,this procedure reduces the brand’s unsubscribeand churn rate.

According to a research by MarketingLive,weekly emails are the safest and most preferred frequency for commercial email campaigns. When researchersaskedhowoftensubjectswouldliketoreceivepromotionalemailsfromabrandtheywantto communicate with, the most popular answer was: once a week.

Picture 17. eMarketer study


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Educational content

Another breed of emails we recommend youimplement is automated autoresponders builtaround educational content. This can bringa significant improvement in ROI from emailmarketingandincreasetheoveralleffectivenessofemail campaigns.

Autoresponder messages are sent automatically and do not require the marketer to click the “Send” button.Themessage sequence is built basedonvariousactionscenarios thenactivated inside theaccount. This creates dialogue and builds betterrelationships with the subscriber. It’s friendlier tokeepintouchthattoemailonlywhenit’stimetosellsomething.

Automation

Balance is an important principle of email marketing. Togenerate high conversions, themarketermuststrike the right balance between pure sales andpure content. The difference is that pure content is usefulandvaluable to the recipientanddoesnotpresent a call-to-action to make a purchase.

A good proportion is:

60% pure sales messages, distributed through aweekly newsletter40% pure content, focused on customer education, usefulinformation,surveys,etc.

Emailmarketingautomationisaone-timeinvestmentof time and resources to prepare the design and content. After that, the emails are sent based onthespecificactionsofeachindividualsubscriber—withlittleornoinvolvementbythesender.

Thisinvestmentoftimeandresourcescanpayoffin customer loyalty and higher sales for years to come.

Birthday emails

To create a memorable impression and buildrelationshipswiththemembersofacertainloyaltyprogram, marketers can leverage the power ofbirthdayemailsdeliveredtoemailsubscribers.Birthday emails should be fully automated, andtheir deployment usually doesn’t have to behandled by the marketer. These triggered emailsarehighlyeffectiveforemailprogramsandreducethemarketer’sefforttotheminimum.

Picture 18. MarketingLive Consumer Shopping Survey 2011

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Email service providers (ESP) allow marketersto create evenmore trigger emails basedaroundcertaindates.Thesecouldbe:

Birthday emails Anniversaryemails(e.g.oneyearof

participationintheloyaltyprogram) Date of last purchase Date when the coupon was last redeemed

Date-driventriggeremailscouldbeusedsimplyasreminders (e.g. redeemyour code)orasbirthdaymessagesthatbothdrive loyaltyandsaleswithadiscount code or free shipping on their special day.

Apply: The time and effort you spend on automation can continue to pay off for many years. So create “automation assets” to reduce your workload and maximizeprofitability.

CONCLUSIONS

Overwhelmed? Sorry about that. Our goal wasto convince youof the valueof creating a loyaltyprogram. We hope we succeeded.

As you can see, there are countless ways to set up a loyalty program. Your imagination is the only limit.

Now what? Thebestwaytocombatthefeelingofbeingoverwhelmedistotakesomeaction.

Here’s the good news: the building blocks of acustomer loyalty are modular, stackable andexpandable.

Picture 19. Marketing Sherpa Email Marketing Benchmark Survey 2013: most-popular trigger emails

Picture 20. Birthday email example: great way to distribute coupons, build new sales and drive loyalty


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So it’sOK tostartsmallandexpand.OK tobuildjustonecomponentandfindouthowwellitworksinyourmarket.AndOKtobuildthenextcomponentand stack it on top of the first, knowing thatthese modular components can be adjusted andrearranged at any time.

To get started, spend some time on each of the majorareas—testing,measuring,andtweakingasyou go.

1.Beginbysettinggoalsanddecidinghowtomeasure progress.2.Developsolidnew-customeracquisitionstrategies.3.Usesegmentationandlisthygienetokeepyourlistresponsive.4. Integrate your communication channels to create a consistent marketing message.5. Automate each component of your loyalty process.

Yourworkpaysoffinamoreloyalcustomerbase.You spend less time chasing new customers and moretimeservingtheonesyoualreadyhave.Thismakes it more likely that your loyal clients will refer you to other ideal clients.

Your business grows organically from within.Customers enjoy how you help them. And yourbusinessismorefunforyoutoo.

GetResponse is designed to support all of thetechniquesdescribedinthisguide—andmore.Soremember:whenyouneedhelp,we’rereadytogiveyouahand.Letushearfromyou!

Good luck with your customer loyalty program.

GetResponse Team.

ABOUT GETRESPONSE GetResponse,World’sEasiestEmailMarketing,isa complete email marketing platform with a suite of innovative features, including drag-and-dropemail and landing page creator, advanced emailanalytics, email automation and smart list import.

Its user-friendly interface, best-in-class 99%deliverabilityand5-starCustomerService,makeitoneofthetopsolutionsavailableonthemarket,allatanaffordableprice.

The system is fully scalable and can handleeverything from small lists for solo entrepreneursto high-volume email campaigns delivered withsuperbreliabilityand24/7consultingservices.

Since its inception in 1997, GetResponse hasgrowntoservemorethan350,000Customersfrom183countriesandnowmanagesanddeliversmorethan12billionpermission-basedemailsperyear.

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CONTRIBUTING AUTHORS

Mac OssowskiDirectorofMarketExpansion

GetResponse

Mack GórskiProductEducationManager

GetResponse

Michael LeszczyńskiContentMarketingExpert

GetResponse

Magdalena PietrasEnterprise Marketing Manager

GetResponse

Hanna AndrzejewskaMarketing Manager

GetResponse

Kath PayDigital Marketing Speaker, Consultant & Trainer

Plan to Engage


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Questions? Get in touch!

Wearealwaysheretoinspireandhelp,sodon’thesitatetocontactusifyourunintoanyproblemsorhaveany questions along the way of your Email Marketing Success.

[email protected]

facebook.com/GetResponse twitter.com/GetResponse

www.getresponse.com

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