April 17, 2014 Leave a Comment
By now, most merchants know that consumers expect to shop across touchpoints. And they also recognize the importance of improving loyalty. After all, it costs 6-7 times more to acquire a new customer than to retain an existing one. Perhaps that’s why from 2008-2012, loyalty programs grew by 10% each year.
But it’s not enough to award shoppers points for purchases; to meet the needs of the always-connected consumer, merchants must develop an omnichannel loyalty strategy that caters to customers – and entices them to make repeat purchases — wherever they interact with the brand. We’ve come up with a four- step plan to help you develop and implement your loyalty strategy across all channels for a seamless experience for your shoppers.
1. Create a seamless mobile experience. As of last year, more than half of all American adults own a smartphone (Pew). More and more consumers are starting to shop online either through a mobile device or tablet, with the time spent on mobile surpassing time spent on desktops last year (eMarketer).Of those mobile users, nearly three-quarters say it’s important that websites are mobile-friendly (Search Engine Watch). So the first step in moving toward an omnichannel experience is creating a mobile experience. Make your site mobile friendly, with large visuals and simplified navigation to help mobile users quickly find what they are looking for. Integrate loyalty across all channels, including mobile apps, to ensure that customers are receiving points and rewards no matter how they shop.
2. Focus on the customer experience first. Forty percent of consumers buy more from retailers who personalize the shopping experience across channels (Internet Retailer). So merchants should ersonalize the experience at every step possible. Utilize a social login tool in order to gather insights and create a more complete customer profile. Collect data from social network APIs for structured data, such as verified email addresses and birthdates, and unstructured data, such as interests, likes, friends, and more. Use this information to structure your loyalty program. Find out which rewards and perks will resonate with your shoppers and how active your users are on each social network. This information can help build your loyalty program with a focus on Facebook contests or “Pin to Win” Pinterest campaigns.
3. Manage user data. Fifty-four percent of marketers revealed that the biggest inhibitor in establishing a consistent omnichannel customer experience is not having a single view of customers across channels (Retail Systems Research Institute). Gathering data is only half the challenge; still more important is sorting through and organizing the ‘big data’ so merchants can actually derive useful strategies from the information. Standardize all information gathered from a variety of social networks in order to maximize the full potential of personalization. Ensure you have the right infrastructure in place to store massive amounts of data and the ability to access it quickly as well. Organized data makes it easier to scale marketing efforts and target the right customers, at the right time. Leverage this data to inform email marketing efforts, to target new buyers, repeat buyers or inactive buyers. Remind inactive buyers of their expiring rewards to drive them back onsite. Reward repeat buyers with bonus loyalty points or rewards for making their third purchase. Motivate new buyers to sign up for loyalty with large first-time incentives. Keep your loyalty program segmented with staggered rewards to keep your members excited about exclusive access to sales and perks.
4. Engage with customers across all channels. Actively engage with users to foster user generated content, boost SEO, increase referrals, time spent onsite and ultimately conversions. Implement loyalty across all channels and reward users for shopping on each one. Once the channels are in place, engage with users on each channel with social media to boost your loyalty program. Run social contests within social apps or onsite. Interact with users and build a branded community with ratings and reviews. Fully 90% of consumers would recommend a brand after interacting with it via social (IAB, 2013). Furthermore, 64% of Twitter users and 51% of Facebook users are more likely to buy the products of brands they follow online (Business2Community). Reward users for cross promotion to further drive engagement to every channel. Use point incentives to motivate shoppers to download mobile apps, or shop in store for bonus perks.
Leverage customer data and insights to personalize the omnichannel user experience and create an authentic, immersive customer experience that is sure to increase brand loyalty and lifetime customer value. All businesses and customers are unique; loyalty programs should be too.