BRING BACK LONG-TERM LOYALTY

© 2014. All Rights Reserved.

1 // THE CUSTOMER IS NOW IN CONTROL

Technology has enabled customers to access a greater degree of media, content and information. And they now decide what marketing messages they choose to read and respond to — and which ones they ignore.

It is more easy than ever for consumers to switch brands and be susceptible to short-term messages that focus on deals and discounts.

2 //CUSTOMERS ARE CONSTANTLY DISTRACTED

Most customers live in the “always-on" world of real time marketing which focuses on the here and now.

Texting, having a second computer screen, and a variety of instant communication apps have put a premium on instant gratification.

3 // MARKETERS HAVE RESPONDED BY FOCUSING ON SHORT-TERM RESULTS

The distracted consumer provides marketers with an attractive target for short-term marketing tactics.

Marketers have begun to "buy" customers rather than "earn" them with superior products and services. This is compounded by the short-term incentives companies have always faced, like sales quotas to quarterly earnings reports.

4 // DIGITAL ADVERTISING GROWTH FEEDS “SHORT-TERMISM"

According to IAB Canada, digital ad spending rose 14 percent last year and now makes up 31 percent of overall ad spending in Canada.

According to eMarketer, less than 30 percent of the U.S. digital marketing spend was focused on building long-term relationships and brand building.

The drive to digital advertising contributes to an environment where short-term results are often valued over the long-term

5 // AN INCREASE IN LOYALTY SPENDING SIGNALS POSITIVE TRENDS

An Aimia survey of 71 CMOs found that loyalty marketing spend is now approximatelyequal to the marketing spend on digital elements such as online ads.

Together, loyalty spending and digital are outpacing what is spent on traditional marketing because it is more effective.

That said, there has never been a more difficult environment to focus on long-term brand building and relationships…. but help is on the way…

6 // LOYALTY DATA SETS THE STAGE FOR A LONG-TERM RELATIONSHIP REVIVAL

Companies are beginning to collect and analyze a vast amount of data on customer profiles and buying behavior.

They now have more insight into buying patterns and can develop predictive models that enable personalized communication to your best customers.

7 // PERSONALIZATION LEADS TO BETTER RESULTS

Major retailers are finding that personalization increases engagement and helps build long-term loyalty. New tools are available that allow marketers to deliver custom content and offers to consumers based on relevant data.

They have found success with customizing website home pages, creating original content, and curating email offers based on both past and predictive data intelligence.

8 // CUSTOMER PERSONAS HELP WIN HEARTS AND MINDS

Smart marketers are building personas of their key customer segments to develop a full view of the consumer.

The profiles look at the motivations, pain points and needs of each group to enable marketers to craft messages with an emotional impact that drives sales.

Once you have personas, the next step is to build consumer journey maps that cover initial and post-purchase activity.

9 // CONTENT MARKETING IS FUEL FOR BUILDING LONG-TERM RELATIONSHIPS

Compelling original content helps increase the utility and efficiency of online communications and builds affinity and trust between the company and customers.

Digital content also establishes expertise and thought leadership, which has a direct impact on creating long-term relationships with customers..

10 // THE PROLIFERATION OF DIGITAL CHANNELS ENABLES CLOSER CUSTOMER RELATIONSHIPS

While these channels can contribute to “short –termism", they also empower marketers to communicate with consumers on a more personal level.

Companies can surround their customers with content, offers and messages on the platforms they prefer and in the proper context, creating a seamless, delightful experience from channel to channel.

11 // MOBILE PLATFORMS HELPS BUILD THE OMNICHANNEL EXPERIENCE

Mobile is becoming the primary way customers access the web and interact with companies as they have developed an emotional attachment to their smartphones: it is always on and with them nearly 24/7.

The intimate nature of this mobile interaction helps companies build long-term customer relationships.

12 // COMPANIES ARE FINDING SUCCESS BY FOCUSING ON THE LONG-TERM

Companies such as Air Canada, Sainsbury's, Home Depot, and Taj Hotel are all winning by focusing on the long term while still utilizing the right tools to optimize the short term.

13 // A NEW MANDATE FOR LONG-TERM GROWTH

Companies that do not focus on long-term brand and relationship building will be at a significant disadvantage in the new media landscape, caught in an endless cycle of short-term promotions and price-cutting.

By embracing consumer data and an omnichannel approach, marketers can build the foundation for a loyalty plan that takes the long view to customer relationships.

For an extended view of our perspective see Putting the Long Term Back into Loyalty at

www.aimiainstitute.com

© 2014. All Rights Reserved.