Driving customer loyalty without the loyalty card by Onur Ibrahim

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Seven ways to drive Loyalty without a points win prizes loyalty card model.
Get your fans to drive loyalty for you using engagements and interactions

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Driving customer loyalty without the loyalty card by Onur Ibrahim

  1. 1.   Special  Report  on  creating  Loyalty  to  win  the  Zero  Moment  of  Truth     @StrategyDigital,  January  2013                   Special  Report  on  using  Loyalty  to  grow  consideration  at   The  Zero  Moment  of  Truth   26/01/2013       Onur  Ibrahim   Content  Collective  LTD   Onur@OnurIbrahim.com   07730550347      
  2. 2.   Special  Report  on  creating  Loyalty  to  win  the  Zero  Moment  of  Truth     @StrategyDigital,  January  2013   Loyalty  without  the  loyalty  card   The  points  mean  prizes  model  of  loyalty  programmes  will  always  have  its  place  but,  this  era  is  now   coming  of  age.    Customers  now  want  a  more  engaging  relationship  with  brands,  there  will  still  be   space  for  rewards  and  points  are  one  way  of  delivering  these.  However  the  battleground  is  no  longer   for  share  of  wallet  but  for  ownership  of  the  digital  endpoint.    Customers  no  longer  care  how  they  get   the  product  as  long  as  they  feel  like  they  have  some  level  of  control  in  and  get  the  best  value  from   the  purchase.    Brands  are  moving  away  from  a  purely  transactional  relationship  with  customers  and   travelling  together  into  a  more  emotion  led  purchase  journey.      Google’s  ZMOT  study  illustrates  this   fact  really  well  in  terms  of  flight  paths:       I  would  like  to  expand  this  even  further  for  you.    Each  of  these  locations  contains  further  data  and   information  about  the  customer.  They  are  interacting  with  each  of  these  “data  points”  multiple   times  throughout  the  journey  and  through  agile  analytics  structures  we  can  harness  insights  and   decisions  that  they  are  making  along  each  part  of  the  journey.    This  enables  us  to  build  a  deeper   understanding  of  the  customer  and  also  serve  them  with  demonstrations  of  value  relevant  to  them   and  their  purchases  at  each  point.    The  true  value  of  this  additional  data  is  that  we  can  personalise   the  journey  to  an  individual  and  make  them  feel  special.      Every  shopper  is  unique  and  expects  to  be   treated  as  such,  shoppers  want  to  feel  like  they  are  buying  from  a  brand  they  relate  to  and  that  is   relevant  to  them  at  that  time.    There  is  a  level  of  computation  that  has  to  be  undertaken  around   capturing  and  translating  this  data  and  then  assigning  the  correct  response  to  each  individual.    This   can  be  simplified  through  clustering  and  profiling.    If  we  start  to  categorise  similar  journeys  and   personalities  using  techniques  learned  from  behavioural  targeting  and  information  retrieval  we  are   able  to  condense  many  millions  of  individual  journeys  to  a  smaller  group  of  persona  types  and   provide  relevancy  through  clusters  of  interest.       “We  have  to  tackle  the  issue  of  data  capture,  but  consumers  are  much  more   aware  of  the  value  of  their  data  and  the  numerous  things  that  organisations   can  do  with  it,  that  it’s  not  just  enough  to  ask  for  it,  but  data  capture  must  be   part  of  a  value  exchange,  one  where  the  consumer  is  treated  respectfully  and   honestly  (they  know  you  want  their  data  to  sell  them  more  stuff,  don’t  lie  or   deceive  them)”      
  3. 3.   Special  Report  on  creating  Loyalty  to  win  the  Zero  Moment  of  Truth     @StrategyDigital,  January  2013     So  how  do  we  talk  with  our  customers?   Each  customer  will  also  have  a  personal  communications  preference.  This  will  include  things  like   frequency  of  communication,  topic,  and  most  importantly  channel.    Bearing  this  in  mind  we  should   note  that  it  is  very  important  to  provide  as  many  communication  paths  as  possible  for  the  customer   to  choose  from.    They  may  want  to  interact  via  SMS  or  email  or  direct  mail  or  via  a  mobile  website.     And  the  purchase  journey  will  be  over  multiple  channels  and  multiple  devices  often  simultaneously   whilst  dual  or  triple  screening.    As  a  modern  brand  you  should  have  a  foothold  in  each  of  these  areas   and  maintain  some  level  of  communication  preference  for  users  in  each.    We  should  now  be  able  to   imagine  our  customer  flight  paths  with  an  additional  layer  of  ‘craft  type’  added  to  them  representing   the  communication  channel  used  to  carry  them  to  the  next  stop.     After  the  initial  purchase  we  should  now  start  thinking  about  what  earned  content  we  can  get  the   customer  to  create  for  us.    The  modern  customer  is  more  than  happy  to  contribute  product  opinions   and  reviews,  often  just  asking  them  for  these  post  purchase  will  yield  very  valuable  feedback  and   future  testimonials.    Another  by-­‐product  of  this  is  that  the  modern  customer  wants  to  feel   empowered  and  that  they  have  some  control  over  future  products  created  for  them.    By  asking  for   feedback  and  showing  that  you  are  implementing  ‘consumer  created  change’  will  make  that   customer  feel  closer  and  more  affiliated  with  the  brand.      Bonds  created  in  this  way  are  stronger  and   more  long  lasting  as  the  customer  is  now  not  only  a  user  of  the  product  but  a  brand  contributor  and   as  such  feels  part  of  a  larger  whole.    These  customers  will  advocate  your  brand  and  products  without   question  as  their  co-­‐contribution  has  made  them  part  of  your  brand.       This  might  sound  difficult  in  practice  but  with  a  few  tips  and  pointers  this  can  be  put  into  practice  in   a  straightforward  manner.    The  following  7  tips  are  a  good  starting  point.   Seven  ways  to  generate  engagement  that  drives  towards  loyalty     1. Always  provide  a  clear  call  to  action  and  never  rely  in  user  to  interact  of  their  own  accord.   Relying  on  users  to  interact  without  expressly  asking  them  to  is  like  ‘fishing  without  bait’  and   will  be  unpredictable  at  best.    You  should  try  to  influence  the  potential  outcomes  for  every   interaction  you  offer  or  at  least  measure  the  effects  at  each  stage.         2. Run  multiple  engagement  programmes  across  all  of  your  channels  simultaneously.  Provide   users  with  multiple  ways  to  engage  for  each  campaign  and  category.    Then  give  them  ample   reward  for  participation.    This  will  increase  the  time  they  spend  with  you  and  get  them   coming  back  for  more  rewards  and  getting  their  friends  to  also  participate.    Some  examples   of  these  rewards  could  be:   • Giving  them  something  relevant  to  their  purchase  or  interest  that  is  regularly  updated.     This  could  be  some  digital  content,  a  review  or  ‘money  off’  voucher.     • Allow  them  to;  ask  you  a  question,  create  and  update  their  profile,  or  subscribe  for  more   information   • Deliver  company  information  highlighting  your  company  values  and  positive  practices   that  they  may  align  with   • Link  to  your  social  media  hubs  where  they  can  interact  with  you  and  find  out  more  about   the  products  and  interact  with  others  who  are  either  at  a  similar  point  in  the  cycle  or  
  4. 4.   Special  Report  on  creating  Loyalty  to  win  the  Zero  Moment  of  Truth     @StrategyDigital,  January  2013   who  have  completed  the  cycle  and  are  leaving  positive  feedback.    (Pinterest  pages  are  a   great  and  unobtrusive  way  to  do  this.)     3. Extend  your  communities  cross  channel  and  cross  category.    Don’t  forget  to  cross  promote   and  also  to  keep  trying  to  engage  your  customers  at  different  ‘landing  points’.    By  bringing   customers  into  your  eco-­‐system  at  different  points  and  also  cross  promoting  product   categories  you  can  maintain  interest  and  test  new  ways  of  communicating  with  them.    A   sportswear  brand  may  find  that  they  get  higher  referrals  to  their  ecommerce  site  by   recruiting  participants  via  SMS  and  then  asking  them  if  they  would  prefer  email   communications.    This  shows  that  you  care  and  are  giving  them  a  choice,  it  might  not  seem   like  much  but  the  freedom  of  choosing  is  more  powerful  than  one  way  forced   communications.     4. Try  to  stay  real-­‐time.    There  are  many  real  world  and  timely  influencing  factors  that  should   be  considered  when  designing  these  journeys.    One  of  the  most  powerful  is  trend  hopping;  a   recent  example  was  the  2012  London  Olympic  Games.    With  the  heavy  sports  coverage  and   national  pride  at  stake  TV  sales  increased  due  to  people  wanting  to  have  the  best  possible   experience  of  the  games.    Granted  that  Olympics  licencing  rules  do  not  allow  use  of  the  logo,   name  or  other  assets  without  permission.  Nevertheless  this  was  a  massively  influential   factor  that  created  huge  purchase  intent.     5. Mix  up  campaign  types  and  create  new  offers  based  on  season  and  topic.    Some  marketing   campaigns  naturally  inspire  customers  to  participate  and  to  share  their  interactions  and   experiences.    Recent  research  by  social  app  creation  company  Wildfire  has  shown  that   campaigns  that  have  heavy  user  entries  do  not  perform  in  the  same  way  as  campaigns  which   are  heavily  shared.    It  is  better  to  promote  to  a  smaller  base  of  advocates  and  give  them  the   tools  to  participate  and  share  their  activity  rather  than  running  competitions  where   customers  might  be  hesitant  to  broadcast  the  fact  that  they  just  entered.    In  short  highly   shared  campaigns  will  generate  more  earned  media  per  participant.    So  you  should  have  a   healthy  mix  of  both  types  in  order  to  keep  a  steady  stream  of  new  entries  to  build  the  value   of  your  owned  media,  and  get  those  new  entries  to  start  sharing  and  participating  to  grow   your  earned  media.    The  infographic  below  highlights  this  quite  nicely:          
  5. 5.   Special  Report  on  creating  Loyalty  to  win  the  Zero  Moment  of  Truth     @StrategyDigital,  January  2013     6. Use  image,  video  and  testimonials  as  much  as  possible.  Users  want  to  see,  feel  and   experience  the  product  before  deciding  to  make  a  purchase  leveraging  their  passions  and   taking  them  across  the  journey  of  Dream,  Locate,  Explore  means  you  can  influence  how  they   purchase  and  the  factors  that  contribute  to  them  coming  back  for  more.     7. Stay  relevant.    It  is  ok  to  cross  promote  products  and  even  to  put  promotions  or  ‘wildcard’   topics  in  your  communications  but  keep  to  the  point  with  your  main  message.    If  you  have   categorised  a  person  as  an  influential  decision  maker  and  they  are  interested  in  buying  a   new  TV  then  make  sure  that  they  can  do  the  majority  of  their  research  with  you.    Provide  a   decision  journey  that  takes  them  to  your  affiliates  giving  them  your  voucher.    You  have  to  be   in  as  many  places  as  possible  and  remain  relevant  to  that  persona  in  each  location.            

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