In the digital era we live in, it’s the little things count. With the continued growth of social interaction in business, there are many opportunities to build strong bonds. Customers may come and go, it’s up to you to entice them into coming back, time and time again!
It’s easy to see that social media and other digital mediums are making a huge difference in the way brands interact with customers while building their image. But its customer loyalty that entices business houses to reward the clientele for their allegiance. Rather than creating a customer loyalty scheme, it’s important to provide exceptional service.
One name that comes to mind immediately is Zappos, the online shopping company based in US that has built themselves into a hugely successful brand by making customer service their number one unique selling proposition (USP). With a department dedicated to customer loyalty, the brand makes it a point to encourage its users through old school mediums like sending handwritten notes an
d flowers for special occasions. A whole new level of customer care. And it definitely works – with 75 percent of Zappos business coming from repeat customers. To take it a notch higher, the site displays “Powered By Service”, reinforcing the idea of loyalty.
If you want to entice customers to bite the bait and come on board themselves, you need to be constantly proactive. Regularly upgrade your customers’ status and membership details. When considering various options, you may decide to develop your own creative rewards programme.
Most people, when asked, say they would refer a friend to a site or product, which they rarely do. To combat this problem you can offer rewards for referring.
Non-cash incentives are 24 per cent more effective at garnering responses than cash. If you have a web-based brand, a great way to boost the growth of your online community is to present online-focused offers. By doing so, you place the attention on your online customers while making your presence felt on the web.
Your company should have a little bit of data on your customers before deciding to start a reward programme. How much are your customers spending on an average? How often do they check your services? Targeting the most recent and highly frequent patrons and keeping them hooked with specifically designed programmes is essential. But don’t try to sell to them round the clock. If you find that your customers are scattered across a variety of networks, focus your efforts where they are most active. Not sure? Ask.
Give your customers more of what they want. There is nothing more satisfying than to have your suggestions taken seriously by a business you respect. That is exactly what Nordstrom did. It recognised that customers enjoy fashion, exclusivity and shopping, which is why their reward scheme offers exactly that. Through the medium of points, it offered concierge services, eligibility for early access to the ‘Anniversary Sale’, private shopping parties, and even your very own shopping party hosted at your local store! This guarantees a user base that will both grow and spend more!
Today, a loyalty programme is considered to be a product feature. When considering using this as your next move to engage users, be sure that your prize is worth the trouble.
When it comes to launching your loyalty programme, be sure to lay out all the rules and regulations in a clear, simple way.
Starbucks is a great example of utilising this form of customer relations in India,
helping increase revenue by 11 per cent. With the simple activation of a card, all other cards used in the country can be registered at ‘My Starbucks Rewards’, with an initial card load amount of Rs 200.
A “Star” given for purposes of rewards will notch you up to various levels like green, gold etc, with that many more perks like complementary beverages, size upgrades, birthday treats, free customisations, or the ultimate reward of a personalised Gold Card. It strives to endeavour and enhance the customer’s experience and take the relationship with their loyal customers to the next level.
Keeping your customers guessing is another way of expanding your network. Customers don’t know exactly what will be on sale or when, but they know they love the product and will come in to see what’s going on. The ‘Taj Inner
Circle’ caters to this format. With a simple point system, the hotel offers gift certificates, surprise room upgrades, salon and spa treatments, among others. Once you sign up for the loyalty programme, you can upgrade to the silver or gold tier according to your spends. What’s the best part? The services can be redeemed at all Taj establishments across the globe. In addition to these privileges, gold level members enjoy a discount on Taj Air plane charters. The hotel also offers a system to cash in your points earned for a discounted holiday at destinations all over India.
A hierarchy of loyalty can be established to secure customers in the long term. An effective loyalty programme increases the amount of repeat purchases, boosts customer life, and leverages your existing customers to market your products. No matter in which part of the world you are based, it’s evident that 90 per cent of customers agree that their buying decision is influenced by reviews. More than 70 per cent of customers will spend more with a company with a history of good service.
Social media is a key channel for mobilising customer engagement in this interactive economy. A small customer complaint can turn into a potential public relations disaster. With social media, engaged customers can – and do – endorse your company to tens of thousands of people instantly. Incorporating personalisation into programme messages, discounts and offers has become increasingly important as consumers hop between the store, web and mobile devices.
So reward programmes are not only growing, but also becoming more tightly integrated with the supporting brand and shopping feel, offering consumers a seamless experience across point of sale, the Internet, phone and mobile channels.
As one more important strategy that attracts consumers is CSR (corporate social responsibility) activity, make your marketing socially relevant. People love a feel-good story, and would go out of their way to support businesses which support the community, as well as causes they believe in. This creates a positive impression of your brand within the community, and can generate more business while helping a worthy cause. Doing that, it’s important to pay attention to customer perceptions of your CSR. CSR related to the customer experience — involving employees and products — inspires maximum loyalty, followed by community related activities.
Winning and retaining customer loyalty in the new era of retail requires a mix of personalisation, exclusivity and Omni-channel engagement. Loyalty programmes aren’t just used to keep patrons happy. Consumers know that by joining such a programme, they are letting the retailer track them.
Therefore, an optimal loyalty programme can help you gather important information on the buying habits of the customers, helping you shape your business strategy. Using Twitter, Facebook and other social media tools, you can thank your customers by reaching out to them, responding to their feedback, and following up on any suggestions they’ve made. People can instantly see what’s happening around the globe. Moreover, they can interact with the people with whom it’s happening- most definitely through Twitter.
The number one no-no when it comes to social media etiquette is not responding to customer feedback, regardless of whether it is positive or not. Your customers are your greatest asset and you want to retain them, so why not think outside the box and give them what they really want? Give them the commitment they deserve, and come up with creative ways to reward them for not only their loyalty, but encouragement as well.
The way we communicate has dramatically changed through social media. Social advocacy campaigns is one of the best new ways for brands to build loyalty. Giving your customers a smooth user experience is one way to organically increase brand sentiment.
