DMA Email Lifecycle: Retention - Creating Loyalty Programmes


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When used effectively loyalty programmes can convert subscribers into loyal customers and advocates. Riaz Kanani of Alchemy Worx looked at what makes a great loyalty programme and inspire you with some great examples.

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  • .. Times like this when loyalty programmes come into their own.
  • Email is another. They may indicate a wish to be loyal but over time, they are devices through which you can create loyalty by collecting and interpreting customer data and communicating the programme itself. Never lose sight of that when creating loyalty email programmes.
  • Papa Johns example – clearly communicating the key benefit to their programme. But already there is complexity: Explicit vs Implicit programmes Understand and map out the difference between your on-going email engagement programmes and your loyalty programmes. Loyalty programmes should give greater rewards for both the marketer and the member. OK so where do you start..
  • You can ask for more when registering for a loyalty programme when compared to your email programmes – but if the new member is also from your email list – good practice to pre-fill fields. - And asking for more data later is still a good thing
  • Renewal Time – brand reminder Clear messaging in header and continuing into main text. Use of navigation bar to direct users to other potential areas of interest Used information from a year ago to drive information of value – helps stop the auto renewal On brand.
  • Welcome Email Next steps – moving along a defined communication path Show benefits – not that clear in this email
  • Added value – seasonal home security.. Winter driving.. Using content gained through other channels (sponsorship).. competitions
  • Use of first name in subject line 12 month offer and a new phone sooner would have caught my eye – subject line would have worked fine in first email after joining but fatigue sets in quickly.
  • Learning Curve: How quickly does the user understand the reward and change their behaviour? Frequency shows how often the user interacts with the brand – often as the reward nears frequency increases whilst it dips after. Decay describes the subject's behaviour once the reward ends – does it retain customers not just ramp up frequency when the promotion is on.
  • Email is the only channel to give you direct access to the consumer and persistence.
  • Use dynamic content or unique messages to tailor rewards to your audience
  • DMA Email Lifecycle: Retention - Creating Loyalty Programmes

    1. 1. Creating Loyalty Programmes Riaz Kanani Marketing Director, Alchemy Worx
    2. 2. About Alchemy Worx 153 Years of experience 10 We’ve been around for over a decade 60+ Staff focused on email marketing US/UK Based in Atlanta & London
    3. 3. Alchemy Worx
    4. 4. Setting the Scene
    5. 5. <ul><li>60+% of consumers think that they will be worse off in the next 12 months </li></ul>
    6. 6. <ul><li>71% of marketing directors felt loyalty schemes are more important since the credit crisis started. </li></ul>
    7. 7. Creating Loyalty Programmes
    8. 8. Don’t focus on the device they don’t create loyalty..
    9. 9. <ul><li>The only way you create true loyalty is by your behaviour over time - do you in a transparent, reliable way, create benefits for people? </li></ul>Sir Terry Leahy, former Chief-Executive of Tesco plc
    10. 11. Collect and Analyse Data <ul><li>Start small – and test </li></ul><ul><li>Quality is critical </li></ul><ul><ul><li>assign a confidence level to each data point </li></ul></ul><ul><ul><li>Define customer types </li></ul></ul><ul><li>Identify potential touch points </li></ul><ul><li>Don’t ask for too much! </li></ul>
    11. 12. VS +
    12. 13. Touch points <ul><li>Weekly newsletter </li></ul><ul><li>Milestone triggers </li></ul><ul><ul><li>birthday, renewals, points total </li></ul></ul><ul><li>Behaviour triggers </li></ul><ul><ul><li>purchase, reviews, website/store visit </li></ul></ul><ul><li>Statements </li></ul>
    13. 14. Tailored Emails
    14. 15. Tailored Emails
    15. 16. Content <ul><li>Content should draw members to the brand by adding perceived value </li></ul><ul><li>Interaction focused.. </li></ul><ul><ul><li>but don’t forget the brand impact </li></ul></ul><ul><li>Incorporate member data into all your emails </li></ul>
    16. 17. Aviva Aim: Encourage engagement with email through value-added content Audience: Customers and prospects Focus: Brand
    17. 18. Subject Lines Riaz. Here's this month's silver tier O2 Rewards update. Full of offers you won't want to miss
    18. 21. Measure <ul><li>Remember loyalty metrics </li></ul><ul><ul><li>Learning Curve </li></ul></ul><ul><ul><li>Frequency </li></ul></ul><ul><ul><li>Decay </li></ul></ul><ul><li>Track key email metrics </li></ul><ul><ul><li>Reach and Frequency </li></ul></ul><ul><ul><li>Revenue </li></ul></ul><ul><ul><ul><li>direct and indirect </li></ul></ul></ul>
    19. 22. Reach vs Open
    20. 23. Market Research: Surveys <ul><li>Exchange value for more information </li></ul><ul><li>Compare behaviour with response </li></ul><ul><li>Filter results back into the programme </li></ul>
    21. 24. Leverage other channels <ul><li>Email is the glue </li></ul><ul><li>Use to: </li></ul><ul><ul><li>Drive offline traffic </li></ul></ul><ul><ul><li>Drive website interaction </li></ul></ul><ul><ul><li>Promote mobile apps </li></ul></ul><ul><ul><li>Promote Social Channels </li></ul></ul><ul><li>Use each interaction as an opportunity to learn more </li></ul>
    22. 25. Rewards <ul><li>Tailor rewards to your audience </li></ul><ul><li>Understand which one is best </li></ul><ul><li>Timely communication (test) </li></ul>
    23. 26. Rewarding email interaction
    24. 27. In summary <ul><li>Clearly identify programme benefits </li></ul><ul><li>Identify key pieces of (accurate) data and email touch points </li></ul><ul><li>Track your key success metrics </li></ul><ul><li>Use market research and behaviour to iterate </li></ul><ul><li>Leverage all channels to both drive interaction and engagement </li></ul><ul><ul><li>but also to learn more and improve </li></ul></ul><ul><li>Adjust rewards messaging based on the individual </li></ul>
    25. 28. @alchemyworx @riazkanani [email_address] 020 7025 2112 Thank You . Questions?