I'm talking to all the brand representatives.
You might think loyalty marketing is old school. Yes, it manifests itself as the usual collection of points or reaching the platinum tier. Yes, most of the points are left unused and represent a large liability to the company's profit and loss. Well, let's think again. Please think more carefully. Loyalty, when done right, is the foundation of any brand's performance. Here are some rules and tricks to help you step up your game.
No one cares about you.
People spend very little time with your brand, but we're optimistic. It's tough, I understand. But that's life. Indeed, the fact that people have lives drives Loyalty's most important marketing insight. That means it's a long game. It takes time to get someone to buy your product, and you need to advertise it prominently. What should we say? Long-term dialogue is effective when people's needs and interests are the only measure of any marketing effort. Shoppers don't think about a category unless they're in the market for it. When they do, try to only talk about how you can serve them.
so what? Advertising is important and needs to be consumer-centric.
You can never turn the fan 100% “on”.
Average loyalty, measured as the percentage of the user base that takes at least one action in a year, is approximately 30%. If you're good. It's natural for any brand manager to want to grow those numbers. You might think, “If only one more third of my users made just one more purchase this year.” Well, that won't happen. The current abundance of messages across social and traditional media has overwhelmed people on the street, creating a majority of consumers who are passive, silent, and apathetic. It is better to create a small number of super fans. Get them hooked on great quality and service so they become your best ambassadors. For example, a highly engaged 5% is enough to improve annual sales and bottom-line performance.
so what? Turn your best fans into great (uncompromising) Advocates and you'll reap the benefits of their exponentially amplified power.
There are many products that are better than a toaster.
The biggest reward for fans is usually the addition of products or services that they need. This is why Apple is offering people a generous 3% cashback every day on his Apple products. For example, rail brands are seeing fans redeeming points for more travel. The same goes for miles, which are mainly used for airline tickets. Even if it's a brand name toaster, few people will care. Personalization is key. The perfect loyalty catalog needs to be dynamic and highly personalized to move fans from a functional zone to an inspirational zone, from a practical zone to a joy zone.
so what? In addition to a solid cashback scheme, thorough personalization of rewards is fundamental. It's all a conversation.
How can I personalize my loyalty program? Technology can help. For example, artificial intelligence can transform loyalty schemes from static to conversational, providing information (FAQs and participation rules), support (progress tracking and quick actions), and interaction (daily assignments). You won't know what a particular fan wants until you ask. Until generative AI, we didn't have the technical ability to do that at a granular level. We now have the ability to inform, support and interact with everyone so that our loyalty programs feel designed for each consumer. Technology allows you to be both reactive and proactive. This will make you a better listener, smoother speaker, and even more able to pick up on the invisible signals of early engagement with a prospect.
so what? AI is your enabler and your fan's best friend. Let them talk.
carpe diem! Increased instant rewards.
Just because fans vote for you once doesn't mean they'll stick with you for years. Those days are over. Social media has changed us forever. We want “it” now. Take on daily challenges, quizzes, sweepstakes, games, lucky strikes and more to grab people's attention and get instant gratification. Yes, marketing needs to be personalized, but it also needs to be fun. Goosebumps from Tuesday's Las Vegas lottery win will be added to your collection as you win a set of wine glasses to impress your in-laws. If you sell products that are infrequent (like cars), instant rewards are also a way out of the loyalty puzzle. Yes, a loyalty program can trigger a “one time” purchase. Because it's not just about purchasing the object itself. You can build in additional services that make a difference (car washes, repairs, residual value guarantees) and keep the dialogue and doors open.
so what? Build two tempos into your loyalty marketing. It was short (now) and long. Fast and slow.
It's sales and ROI plus data collection.
Yes, it's about selling more of what you produce. And at the same time, it's not. Tell your CFO to “shut up,” at least until you hear this. Talking to fans is a great opportunity to learn more about them. Collecting and enriching data is just as important as selling more trombones. In fact, how can you sell more trombones if you don't know the needs of those who have already bought them? Starbucks sells drinks every day. And they are not. They also have the world's largest database of premium drinkers. Their bellies, hearts and minds are equally thirsty.
so what? Talk, collect, and trade to better serve your fans.
They never make it down the funnel.
Step-by-step progression down the consumer funnel will never happen the way you draw it on a PowerPoint or present it to a board of directors. Fans will encounter your communication activities randomly and in fragments. Make sure you're ready to tell every story, quickly, at every touchpoint. Don't assume they know or remember you. No one cares about you (Rule #1). At any level of your journey, prepare a 30-second pitch. It's speed dating. Make sure you are distinctive, consistent, and honest.
so what? Share what makes you different in seconds. Make sure it's true. Say it consistently across touchpoints.
Fans don't want endless options.
Fans seek practicality more than they seek unlimited freedom. Loyalty marketing starts with building functional and useful solutions. Endless options mean unused rewards last a long time, which will satisfy the few who pay attention to the details. If you're selling airline tickets, fans might also be looking for romantic dinners, as well as hotel and car rental services. Catalogs must be sharp. It's not necessarily long. Start from your own perspective and work on strategic alliances. It's no wonder that people traveling to Vienna are collecting points to buy Steinway pianos. Engage them closely with what will be the greatest service you can offer them on their way to and from their well-deserved vacation.
so what? A catalog is not a list. More is not necessarily better.
Fans are not loyal.
Let us honor the work of Professor Byron Sharp. As consumers, we are not loyal. Once we are in the market for something, we are only concerned with whether or not that product or service is available to us both mentally and physically. When you need to shop, especially for everyday purchases like groceries, you want to spend as little time and effort as possible. There's no guarantee that your fans will choose you just because they bought you in the past. Build unique brand equity, increase mental and physical availability, and users will start buying from you more often.
so what? Loyalty marketing is second only to the imperative of being there mentally and physically through long-term brand equity marketing and flawless execution.
Fans own the brand.
Whose brand are we talking about anyway? You don't own your brand. You never were. Your fans all have their own perceptions about you and come into your category from completely different angles. Understanding why your customers buy from you is a never-ending process. You have to be smart. And in a way, it's lazy. Let consumers help you understand and refine what you can do for them. Leverage technology to understand the data you collect and find patterns in what's happening in your database. If there's something you don't understand or need clarification on, talk to your fans, feature it, and celebrate it. Let them run the show. You are his DTC airline and he uses you to go shopping to London? Make sure you arrive on time. And if they allow it, stand by their side and make their experience unique and memorable by offering them a glass of French champagne in the VIP lounge while they wait for their return home after a wonderful weekend. Please give it to me. Hire the true owners of your brand: the spendthrifts, the loud and proud evangelists, the smart socialites, the bright and fun creators, the honeymooners, the family planning heroes, the unbiased feedback givers, the sick people. consigliere. You are the concierge for someone else's owner's suite.
so what? You'll be surprised. Fans will always help you if they can help you.
What do you think? What are the golden rules for attracting brand enthusiasts?
Written by Francesco Pagano.
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