Does Loyalty Really Exist?


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The customer and the marketplace has changed. The customer loyalty strategies you need deploy have to change too.

There are common mistakes that businesses make when implementing a customer loyalty programs that can have an significant impact on the success of the program. The three most common mistakes are outlined in this presentation By avoiding these three pitfalls, your business can leverage customer insight customer to increase profits, reduce churn, increase frequency of purchase, spend, and share of wallet.

Who is Customer Insight Group, Inc.?
Customer Insight Group is a leader in building brand loyalty for the world’s most influential and valuable brands. We help companies engage, keep and grow more profitable customer relationships. We leverage customer insight to deliver the right message to the right customer via the right channel at the right time. The bottom line is we focus your marketing dollars to get the biggest bang for your buck. The result? Long-term customer relationships and maximized margins.

More Loyalty Marketing Resources

Loyalty Blog:

Loyalty eBooks:

Loyalty Workshops:

Systematic New Loyalty Program Development:

Who is Customer Insight Group, Inc.

Customer Insight Group, Inc. leads the way in the evolution of how companies engage their customers, positively motivate them and earn their long-term loyalty. Our extensive client work is testimony to our depth of knowledge and ability to apply strategic insight and solutions to a wide variety of business objectives. Our team’s client experience includes: NHFA, Thomasville Furniture, The Maxim Group Carpet Franchise, Ashro, A&P, The Bon Ton, Crate & Barrel, Dick’s Sporting Goods, Edwin Watts Golf, GE Consumer Finance, Monroe and Main, Swiss Colony, Midnight Velvet,, The Great Indoors, G.H. Bass, Golf Galaxy, Helzberg Diamonds, HSBC, Kohl’s, La-z-boy Furniture Franchise, MCI, Payless ShoeSource, Pier 1 Imports, Petco,, Regis University, Ruby Tuesday, S&K Menswear, Sierra Trading Post, Stein Mart, Tommy Hilfiger, Ulta, as well as various other leading companies.

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  • #4 Proactively Manage Customer’s Lifecycle to Generate Incremental Sales and Profit
  • Does Loyalty Really Exist?

    1. 1. Does Loyalty Really Exist?
    2. 2. Website: Phone: 303.422.9758 © Customer Insight Group
    3. 3. We define loyalty marketing: Discipline of identifying and nurturing the yield of best customers through a long-term, reciprocity, value-added relationship. Website: Phone: 303.422.9758 © Customer Insight Group
    4. 4. What could a loyalty program do for your business? Retain Customers Target Marketing Increase Spend & Frequency Build Brand Loyalty Build Customer Relationship Differentiate vs. Competition Acquire New Customers Gain Customer Insight Increased Revenue Website: Phone: 303.422.9758 © Customer Insight Group
    5. 5. Website: Phone: 303.422.9758 Common Mistakes to Avoid • Me to value proposition • Not Investing in the members you have • Treating all customers equal 3 © Customer Insight Group
    6. 6. Website: Phone: 303.422.9758 • Create a value proposition that will differentiate you in the market place • Use short-term “perks” to reward the behavior you want • Consider the value of strategic alliances to add greater value to your program MISTAKE: Me to Value Proposition © Customer Insight Group
    7. 7. Website: Phone: 303.422.9758 “When you overuse discounts, you actually encourage disloyalty because the customers will come back only when you offer the best price.” - Matt Griffin, Associate Editor of Catalog Success Discount prices can back-fire because low-price shoppers often do not become loyal, profitable customers. © Customer Insight Group
    8. 8. • Customer Experiential Benefit Strategy is a customer-centric approach to align and deliver value that is meaningful, timely and mutually beneficial to the customer and ultimately the company as well. – Initial participation and enrollment benefits – Cumulative benefits – Periodic benefits – Instant benefits • Mix of hard and soft service-related benefits • Spend/earn rate, bonuses, capped/uncapped, transferable points and rewards • Flexibility for redemption, burn rate, channels • Tiers and requalification • Partners for earn/burn and special offers Website: Phone: 303.422.9758 : Deliver value the way the customer want it delivered.SOLUTION © Customer Insight Group
    9. 9. Website: Phone: 303.422.9758 • FIRST 90 DAYS CRITICAL to building customer relationship • Create a new customer development communications plan • Use social media to create organic word-of-mouth growth MISTAKE: Not Investing in the Customers You Have © Customer Insight Group
    10. 10. Website: Phone: 303.422.9758 Value to the Customer ValuetotheOrganization Unqualified Customer Prospective Customer Advocate Customer Repeat Customer Proactively Manage Customer’s Lifecycle © Customer Insight Group
    11. 11. Website: Phone: 303.422.9758 • Create a value proposition that will differentiate you in the market place • Use short-term “perks” to reward the behavior you want • Consider the value of strategic alliances to add greater value to your program MISTAKE : Treating All Customers Equal © Customer Insight Group
    12. 12. Website: Phone: 303.422.9758 Give them appreciation that non-loyalty-program members don’t receive to make them feel valued. To keep customers happy, treat them well: Treat them as individuals. Communicate. © Customer Insight Group
    13. 13. Website: Phone: 303.422.9758 54.2% Customers, 0% Purchases. 0% Margin & 0% Visits 27% Customers, 30% Purchases 22.3% Margin & 44% Visits Inactive 3.3% Customers, 21.4% Purchases, 26.2% Margin & 11.6% Visits 4.1% Customers, 16.9% Purchases 19.2% Margin & 13.2% Visits 11.8% Customers, 31.4% Purchases 32.1% Margin & 31% VisitsOccasional Frequent Loyal Infrequent : Double Down on Profitable CustomersSOLUTION © Customer Insight Group
    14. 14. Website: Phone: 303.422.9758 Steps to Creating Successful Loyalty Program 1. Identify: Created a unified view of customers across all channels and programs 2. Differentiate: Identify most profitable and most growable customers 3. Customize: Act on what you’ve learned to tailor services, process, products and messages (all customers are NOT equal) 4. Communicate: Leverage every customer touch point to create relevant and engaging communications 5. Measure: Track and measure success at a customer level 6. Interact: Ask customers for feedback 6 © Customer Insight Group
    15. 15. Website: Phone: 303.422.9758 You inspire loyalty, creating within them a reaction to your name that is so positive it evolves into a strongly rooted sense of connection. © Customer Insight Group
    16. 16. Customer Insight Group is a strategic marketing company that uses customer information to help its clients engage in successful and profitable long-term relationships with each and every customer. Loyalty Marketing & Social Media Marketing Services: • Strategy • Design • Implementation • Program Management • Program Refinement Website: Phone: 303.422.9758 About UsAbout Us Customer Relationships – Engage. Keep. Grow. © Customer Insight Group
    17. 17. Connect With UsConnect With Website: Phone: 303.422.9758