how to understand your customers and make them loyal
Post on 21-Oct-2014
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The ubiquitous customer loyalty program – it’s hard to remember (retail) life without it. We’re sure most of you reading this have at least one or two loyalty program cards in your purse or wallet that are getting close to burnout from overuse, while there are no doubt three or four others lurking in the darkness that don’t ever see the light of day. In fact, it shouldn’t surprise you to learn that 88% of Australian consumers over the age of 16 are members of at least one program. But while there’s plenty of evidence that loyalty programs work, their prevalence means consumers are now far more familiar with how the good ones operate, and are therefore far more discerning about the perceived value they deliver – while program membership is high in this country, only 41% of consumers believe loyalty programs offer good benefits. So, amid the flood of offers and programs competing for the same retail dollar, what will keep your loyalty program top of mind for customers, while other programs are consigned to obscurity – only surfacing when membership cards are discovered during an intermittent quest to reclaim wallet or purse space, or during an overdue inbox email purge? Relevance. If offers are relevant and delivered via the right channels at the right time, the chances of your program grabbing a significant piece of the retail spotlight increase exponentially. So if you’re reviewing your current loyalty program or starting a new one, understand what makes your customers tick, and invest in the right ones in the right way. Your customers – and your bottom line – will thank you.TRANSCRIPT
Find out more at accumulate.com.au
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A loyal and satisfied customer base is more likely to repurchase, is less price sensitive, spends more money with your company and generates positive word of mouth advertising.
I want you to know me, understand what I want and give me something meaningful, and then you can share other information with me.
A LOYAL CUSTOMERI S U P T O
T O A B U S I N E S S
UNCOMMITTED ONET H A N A N
MOREVALUABLE20X
100%25%
8X
+5% + to
6X
The average consumer spends nearly 3X more when their relationship is built on customer preferences.
Targeted emails within customer loyalty programs
have a 40% higher open rate.
A R E YO U I N V E ST I N G I N T H E R I G H T P E O P L E ?
H OW TO K E E P ‘ E M C O M I N G BAC K
C A P T U R E A C O M P L E T E V I E W O F YO U R C U STO M E R
W H AT ’ S M O ST I M P O RTA N T TO A U ST R A L I A N LOYA LT Y P R O G R A M M E M B E R S ?
80%of Australian consumers buy more from companies
whose loyalty program they are a member of
41%only 41% of consumers feel that loyalty programs
offer good benefits to members
However,
And,
+40%
+3X
80%
81%
77% 67%
37%
instant discounts points for rewards surprise & delights
direct mailpersonalised email
social interactions
communication preferences
Companies operating in Australia spend an average of 6X more trying to attract new customers than they do looking after the ones they already have.
Existing customers spend up to 8X more
per transaction.
A mere 5% increase in customer retention can lead to a 25 ––– 100% increase
in profit for your company.
Sources: Customers matter, Survey Matters, Inc. Online, Maritz white paper, The Loyalty Effect, The Loyalty Marketer’s Association - Loyalty 3600, Survey by Oracle, Australian Bureau of Statistics, Directivity & Citrus - 2013 Consumer Study into Australian Loyalty Programs
U N D E R STA N D YO U R C U STO M E R TO D I R E C T T H E M TO T H E P R O D U C T S A N D S E RV I C E S T H E Y WA N T
W I T H I N T H E R I G H T C H A N N E L .