Transactional, points-based loyalty programs are no longer (or perhaps never were) enough for customers – and brands are starting to catch on. According to a Harvard Business Review Analytics Service report 58% of executives believe their customer loyalty programs are ineffective.
Tackling customer loyalty is more complex and requires a focus that goes well beyond collecting points. Brands need to develop new approaches that focus on developing a deep understanding of customers and their needs and providing highly personalised experiences based on these insights.
Here are five ways you can give your customer loyalty approach a quick refresh and start transforming your customers into advocates.
1. Profile your best customers
We often focus on churn modeling to understand the reasons for customer churn and estimate individual customer risks. But the same techniques can also be applied to understand the attributes and behaviours of your best customers. You’ll then have a more in-depth understanding of what behaviours to incentivise in order to increase stickiness.
2. Not all customers are created equal
Some shop with you weekly, some on the rare occasion. Using value based segmentation will help you clearly define and target your best prospects through a high value customer strategy – and reward those customers that are most likely to become your advocates.
3. Bring your brand proposition to life
You don’t just want your customer to buy your products – you want them to buy into your values. By breathing life into your brand proposition you’ll create something your customers can be proud of and experience first hand. This is where true advocacy is born.
4. Be useful
Relationships don’t grow if we only communicate when we need something. Talk to your customers regularly and prove that your brand can be useful. Make service messaging a part of your communications.
5. Show that you listen
When you can demonstrate that you understand and appreciate your customers and their needs, great things can happen. Use personalisation to show that you know your customer – recognition is a powerful emotional driver of loyalty.
Want to get some serious retention and loyalty skills? Enrol now in our Retention Marketing Strategy course .