Outbrain defines customer engagement as encouraging your customers to interact and share in the experiences you create for them as a business and a brand. When executed well, a strong customer engagement strategy will foster brand growth and loyalty. And TechTarget defines it as the means by which a company creates a relationship with its customer base to foster brand loyalty and awareness. While fostering brand loyalty and sharing experiences are valuable outcomes of customer engagement, a vital–and often overlooked–component for businesses is customer service.
Consumers today have high expectations of brands to deliver an up-to-date technological experience. The way consumers interact with brands has shifted from a one-way broadcast to a two-way conversation. Factors that contribute to brand loyalty have evolved as well; digital disruption has pushed companies into a perpetual state of transparency. Companies built on agile business models equipped with innovative listening technology and armed with comprehensive consumer data are those best poised for a successful loyalty program. Here are some changes in consumer loyalty in today’s digital age:
The Consumer Expectation
One survey found that the percentage of consumers who say they take advantage of discounts or coupons has steadily declined since 2012. Coupons aren’t as appealing to today’s consumer as ecommerce eclipses traditional purchase methods; free shipping is a purchase driver. According to research by Accenture Strategy, 71% of loyalty program members claim that loyalty programs do not engender loyalty, and 77% admit that they retract their loyalty more quickly than they did three years ago. This research demonstrates brands’ lack of understanding of rapidly evolving consumer behavior.
Traditional business models prevent brands from making agile marketing decisions to adapt to the rapid pace of change in the digital marketing space. Businesses must make strategic changes to consumer research and marketing strategy to effectively communicate with an evolved consumer.
Data and Social Media
84% of marketers identified making data-driven decisions as one of the most important capabilities, yet only 10% believe they are effective at applying that data to make more effective decisions. Social media contains a wealth of insights and data on consumer behavior, preferences, and purchase decisions, yet 70% of companies are not collecting data from social channels according to DMA. Accenture’s research found that more than half of loyal customers actively recommend brands to others, and 14% express their loyalty publicly through social media.
Understand Consumer Behavior
Technology has allowed consumers to access information in seconds, and has created a demand for responsive communication between the brand and the customer. Cloud computing and artificial intelligence have elevated customer experience to allow for personalized information exchange, which consumers now expect with every brand interaction. A Red Dot Research study found that twice as many 18-24 year olds than 45-55 year olds have higher expectations of retail delivery performance compared to two years ago. Marketers are encouraged to study their prospect base and identify customized buyer profiles based on behavioral characteristics which are then used to develop highly targeted positioning strategies.
Make Loyalty Simple
Loyalty programs should be made simple to encourage adoption and frequent use. From the first touch point and enrollment to reward redemption, the process should be a clear, simple, and even enjoyable one for the customer. Complicated points systems can be perceived as a sneaky way to encourage mindless purchases with no real benefit to the customer. In fact, 51% of US consumers are more loyal to a brand that innovates and provides up-to-date technology to enhance the brand experience.
Brandmovers can design digital loyalty programs which are highly affordable, while still being extremely effective at boosting loyalty/motivation and providing you with great actionable data. Contact us today to learn about all your options!
Nowadays, customers can extensively research products or services before buying. In addition, they can purchase what they need with a single click. Because of this, how you interact with your customers online is only becoming increasingly more important.
- Increased use of smartphones and other personal electronics
- Consumers are more likely to purchase or review items on the go on their phones than ever before
- Today’s customers actively engage with brands and demand customized services
- The internet has shifted from being a primarily text-based source of information into one that is now over 70 percent video traffic.
- By August 2017, nearly 16 million people are utilizing smartphones
- 96% of American customers shop online 65% of their shopping budget is spent in-store
- What makes customers avoid shopping online?
- Shipping costs
- Not being able to try product
- Do not want to wait for delivery
- Difficult return process
- Online privacy concerns
- What makes customers avoid shopping online?
- Activities people are doing while online are changing
- Consumers have a greater desire to feel like they are apart of a community and that the company values them as a customer.
- For example, customers enjoy being rewarded for behavior they enjoy doing (I.e., sharing a video, liking a post, leaving a review for other customers, which makes them feel part of a community)
- Loyalty programs are increasingly more important for this reason
- As a bonus to companies, loyalty programs also help track your customer’s behavior and allow you to gain more insight on who they are
- When customers are loyal to a brand, 57% spend more. While 43% spend around the same or less
“With endless options for communication, entertainment, and content consumption, it’s no surprise that consumer behavior is changing on a daily, even hourly, basis.”Hannu Verkasalo, CEO of Verto Analytics
How can you attract customers as consumer behaviors change?
- Put your focus into social media marketing.
- Be sure to engage with customers online. Having a two-way street of communication helps customers feel connected to brands.
- Ensure that your social media profiles have a personality behind them, it makes it easier for consumers to connect with your brand. Avoid only sharing press releases and marketing offers
- Post special offers that are just for customers that follow you such as a discount code. This will help them feel as if they are special and will make them want to continue to be a follower.
Harnessing the Data-Mining Potential in Receipt Processing
Every day, millions of businesses give away an absolute goldmine in customer data without even realizing it – one tiny paper strip at a time. Customer receipts are abundant, frequently ignored, and often discarded before the customer has even left the store. Yet with the right receipt processing system, you can take advantage of this data to get deep insights into customer purchase habits involving your brand.
If you haven’t looked into the potential for collecting customer data via receipt processing and making use of the information collected, you might be surprised at just how much actionable intelligence is on those little white slips.
All the Data You Can Pull Off a Receipt
Receipts may vary somewhat depending on the retailer, but generally, all this and more can be collected:
- Specific retail location information
- Dates and times
- Quantities purchased
- Minimum and maximum spends
- Product purchase counts
- Repeat purchases (by geography, quantity, or spend)
- Brand specific purchase patterns
That’s a lot of raw data! Of course, that’s just the tip of the iceberg when it comes to drawing more data out through analysis. From there, you can easily derive even more hard data, such as:
- Most common dates and times for shopping
- Products commonly purchased together
- Mean and median spends
- Per-store sales tracking
- Most popular vs most profitable retail outlets
- Broad geographic purchasing data
- Your share of their cart vs other brands
In turn, this can be translated into pure actionable intelligence, allowing you to improve your marketing, outreach, and retailer-specific policies. For example, you could:
- Push cross-promotion for frequently-paired purchases. (I.e., “Ice cream tastes best with Acme chocolate syrup!”)
- Create better-targeted regional promotions, based on local buying habits.
- Arrange retailer-specific deals or support.
- Better understand your competitive landscape and strategize accordingly.
- Create timed offers centered around most popular purchase times.
- Target product R&D based on derived customer preferences.
Best of all, a receipt processing program can often be paired with customer loyalty programs. You get more data, while increasing customer loyalty and brand awareness as well. It’s a win-win scenario.
Brandmovers Brings You the Data You Need
We are one of the industry’s top choices for customer loyalty programs and data capturing systems, allowing you to quickly and easily amass massive amounts of hard data on your customers’ behavior. Contact us today to learn more about what Brandmovers can do for you!
What is customer loyalty?
- Customer loyalty reflects a customer’s willingness to interact with an organization or brand again and again.
- Loyalty is the result of a positive customer experience, customer satisfaction, and the value of the products or services.
- Loyal customers interact with and spend with brands they like more often, they spend more, and they utilize word of mouth to share their positive experience.
- Just because a customer continues to buy from you, does not necessarily mean they are loyal. Being truly loyal means standing by a brand even when a problem arises, and they do not seek out competitors.
Did you know it costs a business about 5-25 times more to acquire a new customer than it does to sell to an existing one?
- Existing customers spend 67% more than new customers.
- Customer loyalty programs truly pay for themselves, as they keep customers coming back again and again.
- In the U.S., 40% of online shopping revenue comes from repeat customers.
- 69% of consumers said their choice of retailer was influenced by the business having a loyalty program
How can you measure customer loyalty?
- Likelihood to recommend your products and services to others
- Likelihood to continue purchasing your products and/or services
- Likelihood of purchasing other products and services you offer
- 83% of consumers said loyalty programs make them more likely to continue doing business with a particular company
- Believing your products and services are preferable to others offered within in the marketplace
- Not actively seeking out competitors to replace you
- Providing your company with opportunities to correct problems and not using these as a basis for compromising the relationship
- Did the consumer change their behavior because of a loyalty program?
- 49% of consumers agreed they spent more at a business after joining their loyalty program
Why do customers join loyalty programs?
- 57.4% of customers join to save money, 37.5% join to receive the rewards.
How to customer loyalty programs add value?
- Use a point system
- Ensure it is easy for the customer to understand the relationship between points and tangible items
- Surprise gifts
- 67% of customers surveyed said surprise gifts are a very important part of loyalty programs
- 76% of consumers believe that loyalty programs are a form of a relationship they have with a brand
Is it time for your business to set up a loyalty program? Without a program in place, your organization could be missing out a large piece in what drives 83% of consumers buying decisions.
Typically, bearing the burden of prize fulfillment presents a challenge for brands looking to boost customer retention with customer loyalty programs. Customer loyalty programs, with the correct planning, implementation, and promotion can not only boost customer retention, but also attract and retain potential customers.
Run a simple search for “prize fulfillment services” and you’ll be greeted with lots of agencies specializing in prize fulfillment for marketing programs. Employing a fulfillment-specific agency for a customer loyalty program can create a fragmented initiative, putting more pressure on marketers who should be focused on program communication and analysis.
Brandmovers has the size, scope, and industry connections to easily handle prize procurement and fulfillment in your customer incentive programs as just one element of its customer loyalty services. We take the burden off you, so you can focus on reaping your own rewards from your customer reward offerings. Our end-to-end prize fulfillment services include:
- Full fulfillment center capabilities: From sourcing, to warehousing, to shipment, we can handle all the logistics involved in sending physical rewards out to your customers.
- Extensive prizing partners: Thanks to our extensive list of existing clients and contacts, we can offer you partnerships with major name brands to offer prizes with true appeal, not just generic knock-offs.
- Coupon fulfillment: We can work with you to create physical or digital coupons that integrate into your own systems seamlessly. This includes envelope-sized mailers and related packaging.
- Digital rewards: Looking to offer movies, music, games, or other electronic rewards? We can design delivery systems that protect your content from piracy/copying while remaining easy for customers to utilize.
- Turnkey travel planning: Are you going high-end with your rewards? That’s no problem. If you want to send a customer halfway around the world, we can make sure they get there and back again safely.
- Communication systems: No matter how you or your customers wish to communicate it, we can facilitate it. There’s no more need for “wait six weeks for response” messages. This also includes promotions that mix communication outlets, such as Facebook- or Pinterest-based promotions.
No other provider of customer incentive programs can offer the same range of features, services, and extensive industry integration as Brandmovers. That’s why we’re a leading choice for brands around the world looking for a consumer loyalty program partner who can offer simple, robust, customer-pleasing solutions.
Contact us today for a full consultation on your next customer loyalty project.
By the year 2020, the millennial generation will make up 30% of total retail sales in the United States, and they currently collectively spend about $600 billion per year. This fact means this age group has, and will increasingly have, a large economic impact. The question business are asking, is how does this generation differ in terms of loyalty to brands?
For years, buyer rewards programs really boiled down to two basic implementations: Either discounts such as coupons, or real-world physical gifts. While even in this form, loyalty programs were highly effective and virtually always showed superior ROI, the field has evolved significantly with the development of digital rewards programs.Read More
When a company begins to consider implementing loyalty programs, there are many questions they’re likely to ask themselves, including matters of cost and how to handle receipt processing or purchase validation. However, at some point in the process the lawyers are bound to get involved and start raising questions about compliance and liability. After all, virtually every country, state, province, etc., on Earth has separate regulations covering contests and other customer-participation programs.
The idea of trying to guarantee universal legal compliance can be a daunting one, and potentially a deal-breaker.
At Brandmovers, we wanted to eliminate that concern among clients utilizing our receipt processing and loyalty programs. That’s why we have an entire legal team specializing in local regulations regarding promotions, contests, giveaways, and other similar efforts. When you partner with Brandmovers for your next customer loyalty program, you can rest assured that you can make your customers happy while keeping yourself protected.
Brandmovers Legal Compliance Assistance Adds Immeasurable Value
The Brandmovers legal compliance team can help you:
- Develop official rules
Designing a contest or other promotional programs in ways which are fair to customers and legally-compliant is no simple task. Our experts can take your goals for the project and translate it into a ruleset which keeps everyone happy.
- Procedural filings
Many states and territories require contests and promotions to be registered with local authorities for oversight. We’ll handle the paperwork on your behalf.
- COPPA compliance
Is your promotion going to potentially target children under 13? In the US, this requires complying with a much stricter set of regulations called the Children’s Online Privacy Protection Act. We can advise you both on how to maintain COPPA compliance, and when it’s a better idea to simply exclude young children from participating.
- Overseas legal expertise
We aren’t solely US-focused. Our team can help you comply with laws around the world, including Canada, Latin America, Europe, and Asia. If you want a global promotion, we can make it happen.
- Fair winner selection
Your contest must be run in a fair and reasonably transparent manner that prevents accusations of partiality or favoritism. Our team will even help manage winner selection to ensure you’re protected from retaliation from upset losers.
With Brandmovers, it’s all handled: program design, receipt processing, contest management, and legal issues. Contact us today to learn more!
Year after year, for decades, brand loyalty marketing programs have demonstrated their potential to be extremely effective drivers of sales, word-of-mouth, and brand awareness. However, merely having a loyalty program by itself is not a guarantee that it will be successful. This is not a situation where “if you build it, they will come.” At least not necessarily.
In our decades of experience at Brandmovers, we’ve found that much of the time the key is entanglement. This means getting a customer/buyer so caught up in your program, through both action and messaging, that it’s hard to avoid or escape it.
So, we wanted to talk about entanglement, and how we apply it to brand loyalty marketing campaigns.
How to Successfully Entangle a Buyer in Your Loyalty Program
1 – Clear messaging alignment.
A loyalty program must always by an organic extension of its brand, preferably to the point of inseparability. Consider, for example, how entwined “McDonald’s” and “Happy Meal” are. (After all, Happy Meals are a very simplified form of a loyalty-builder.) This is such a successful example that it’s hard to imagine McDonald’s without Happy Meals!
2 – Consistent co-branding.
Along with that, the branding for the loyalty program should be omnipresent. If “Delta” is mentioned, “SkyMiles” probably isn’t too far away – particularly on promotional materials. This co-branding helps create that organic\inseparable feel. We made use of this concept in our own Nerf Perks program.
3 – Multi-channel messaging.
The more channels mentioning the loyalty program, the better. Packaging. Billboards. Websites. Social media. Pop-up ads. TV ads. Trade shows. Even emojis. The brand and the loyalty program should be side-by-side everywhere.
4 – Action, Action, Reward
There’s a key bit of psychology behind brand loyalty marketing. Rare exceptions aside, the buyer should always take TWO actions before getting a loyalty reward: buying the product, and interacting with the loyalty program. The two actions should become closely linked in the buyer’s mind. A) buy, B) redeem points, C) get reward. Make it a learned habit.
5 – Their work is never done.
There’s always a higher tier to achieve. There’s always a reward that’s just outside their reach. There’s never a point they can say, “Well, I’ve finished this loyalty program.” There’s always something they can achieve with one more purchase, luring them back.
Brandmovers Loyalty Programs Work