how to build a devoted customer base
TRANSCRIPT
How To Build A Devoted Customer Base
CARLY DEITRICH
LAUREN LICATA
DIRECTOR, PLATFORM BUSINESS DEVELOPMENT
SR DIRECTOR, PRODUCT MARKETING
Who The Heck Are We?
STREET FIGHT MAG80%of SMB Merchants said customer acquisition was their
main priority.
8%
Customer Loyalty vs. Customer Acquisition
said customer retention was a priority.
66% of small businesses don’t have a
loyalty program.
34% of small businesses do have a program.
SOURCE: BIA KELSEY
Customer Loyalty vs. Customer Acquisition
46% of those are digital.
54% of those are NOT digital. (paper, verbal, other).
Customer Loyalty vs. Customer Acquisition
Building loyalty with 5% more customers would lead to an increased average profit per customer of between 25% and 100%
(The Loyalty Effect)
Loyal customers make up roughly 20% of your total customer base, but they account for about 80% of total revenue.
(Entrepreneur)
VIP and loyalty program members are 70% more likely to spread the word about your business.
(Loyalty 360)
Customer Loyalty vs. Customer Acquisition
You need NINE first time shoppers
To reach the conversion of ONE repeat customer.
Types of Loyalty Programs
Southwest AirlinesBellyDiscover Rewards
Starbucks
Sephora
CVSWalgreens Barnes & Noble Petco
Panera Bread
Panera Bread
Best Buy
Papa John’s
Safeway
Target National Car RentalPlenti
PlentiPOINTS BASED
SPEND BASED
TIERED
DISCOUNT
COALITIONHilton HHonors
Types of Loyalty Programs
Southwest AirlinesBellyDiscover Rewards
Starbucks
Sephora
CVSWalgreens Barnes & Noble Petco
Panera Bread
Panera Bread
Best Buy
Papa John’s
Safeway
Target National Car RentalPlenti
POINTS BASED
SPEND BASED
TIERED
DISCOUNT
COALITIONHilton HHonors
Types of Loyalty Programs
Southwest AirlinesBellyDiscover Rewards
Starbucks
Sephora
CVSWalgreens Barnes & Noble Petco
Panera Bread
Panera Bread
Best Buy
Papa John’s
Safeway
Target National Car RentalPlenti
POINTS BASED
SPEND BASED
TIERED
DISCOUNT
COALITIONHilton HHonors
Types of Loyalty Programs
Southwest AirlinesBellyDiscover Rewards
Starbucks
Sephora
CVSWalgreens Barnes & Noble Petco
Panera Bread
Panera Bread
Best Buy
Papa John’s
Safeway
Target National Car RentalPlenti
POINTS BASED
SPEND BASED
TIERED
DISCOUNT
COALITIONHilton HHonors
Types of Loyalty Programs
Southwest AirlinesBellyDiscover Rewards
Starbucks
Sephora
CVSWalgreens Barnes & Noble Petco
Panera Bread
Panera Bread
Best Buy
Papa John’s
Safeway
Target National Car RentalHilton HHonors
Plenti
POINTS BASED
SPEND BASED
TIERED
DISCOUNT
COALITION
Common Loyalty Program Mistakes MISTAKE #1
Creating Rewards That Are Not Valuable To Customers
Common Loyalty Program Mistakes
A Poor Customer Enrollment Process
MISTAKE #2
Common Loyalty Program Mistakes MISTAKE #3
Not Optimizing Program Past Enrollment Phase
Common Loyalty Program Mistakes MISTAKE #4
Not Promoting Loyalty Program To Customers
Common Loyalty Program Mistakes MISTAKE #5
Not Identifying Who Loyal Members Are, Or What Is Driving Behavior
Common Loyalty Program Mistakes MISTAKE #6
Initiating A Program Without Understanding How To Track Effectiveness
How To Structure Your Rewards Program
CUSTOMERS REDEEM THE 10TH VISIT REWARD MOST OFTEN
HIGH VALUE REWARDS PROVIDE ASPIRATIONAL VALUE
OFFERING SIGN-UP INCENTIVES BOOSTS ENROLLMENT
OFFER A VARIETY OF REWARDS OF VARYING VALUE
How Loyalty Fits Into Your Overall Marketing Strategy
EMAIL MARKETING
SOCIAL MEDIA MARKETING
CUSTOMER ACQUISITION
ONLINE REVIEWS
MOBILE PRESENCE
COUPONS & DISCOUNTS
WORD OF MOUTH
CUSTOMER LOYALTY
PROGRAM
ONLINE MARKETING
How To Market & Manage Your
Loyalty Program
Send An Announcement Email
Engage Your Employees & Staff
Tweet, Post & Share It
Iterate Rewards Based On Customer Response
Give Customers What They Want
Market Your Program In-Store
How To Measure Effectiveness Of Your Loyalty Program
New vs. Returning customer %
Net Promoter Score
Customer Visit Frequency
Customer Engagement
Plan For Omni-Channel
Remember To Put The
Customer First
Consider A Digital Loyalty Program
But, What Next?
Focus on Customer Retention
