Loyalty Programme Marketing (LPM) Overview
The basics; LPM 101
You have heard it before; getting customers to buy more and more often is the key to sales growth. There is however and importand third dimension that we cover below in the advanced discussion on enhancing a simple solution.
This boils down to boosting order frequency and order size.
Prercentage off campaigns need to be well thought through to assess the consequences on brand value.
Think through to the sales drivers. More consumption or utilization could be driven by the product being used for a wider variety of purposes. Knowing why, when, where and how the product is used by customers will help the research needed to find innovative new uses for the product.
By way of illustrating the thinking one could promote the use of cheese by supplying awesome recipes that use your cheese. Your promotion around “delight your family with a fresh approach to everyday cooking” could just do it. A couple of thousand consumers could boost local sales by a ton a month. Getting your new twist on macaroni cheese into a household menu cycle is the trick.
We could help by linking say, 500 recipe pages to a list on an App that offers consumer reviews on the recipes.
In simple terms, there are economies and efficiencies to volume purchases. The cost of delivering ten or twenty items is likely to be the same. Given economies in the overall cost of a bulk buy the opportunity arises to encourage bulk buys by offering bulk buy pricing incentives.
Offering, managed BOGOF (Buy One Get One Free). 6/4/4, 2/4/1, etc. coupon marketing campaigns is one of the services that we offer.
Bulk buy campaigns are less likely to create pricing expectations than % off campaigns. Consistently marketing % off coupons or in store promotions tends to establish pricing expectations.
As an example, a well know high end coffee brand that is priced at double the standard product has, over the last 3 years been offered by one or another local supermarket on a special at about 40% off. Consequently, I now stock up and have not, in years, paid the regular price. While I appreciate the value and am loyal to the brand, at the discounted price, there is no way that I can see myself paying the regular price.
We suggest that % off campaigns need to be irregular and short term. Bulk buy campaigns are less sensitive and may be preferable in certain circumstances.
We can support both % off and bulk buy coupon sales. We can measure performance and offer analytics in that we can glean insights from who purchased what and when. In addition, we can control coupon issue and redemption. Coupon issue can be set to a maximum number per customer and validity (exclusion dates) can be set so as to reject redemption during high seasons, certain days of the week, etc.
Advanced LPM: Get Creative but Keep it Quick & easy
“Advanced” need not be another word for “complex”.
Success will require that complexities be hidden behind a simple solution, no matter how complex the hidden engineering may need to be. Loyalty programs need to be easily understood and they need to be easily and quickly executed.
The user experience needs to be seamless and any next steps need to be obvious and only a click away.
Simply put, users will not jump through hoops mor be left to wonder through a maze!
Where is the value?
Our insight is that customers will grow your business if you provide them with value to share and if sharing is quick and easy.
Value may be a bulk buy coupon, a percentage off coupon but we suggest that you explore what your customers would value. Perhaps it is an exclusive offer, a sought-after servicing eBook on an App on a phone. A handy contact list of niche suppliers, etc.
The Power of Social Media lies in being Social!
Our Apps, product showcases, blog topics and more are fully interfaced with social media sharing and our viral sales loop will guide you to getting your customers to grow your business.
You need to differentiate your product around non-price criteria. In our ever-expanding smart phone internet era consumers are checking price alternatives which are only a few taps away. What will separate you from others are the value drivers and if these drivers are given to customers in a way that they can be quickly and easily shared they will be.
Advanced LPM = Social Sharing
We all have an urge to be social. We will work with you to find the value that will drive the growth in your market share. We stand to add to the LPM basics; buy more and more often becomes; getting more people to buy more and more often.
When local businesses share customer networks to form a networked customer community the result will stagger most as to how wide the reach into the community is.
Advanced LPM = Networked Customer Communities
Creating online networks allows users to share comments and to link up to share knowledge and support each other.
Many businesses do not maintain customer records and they do not engage with their customers outside the point of sale touch point.
We offer opt-in communication channels and in addition create a framework that allows customers to be introduced to each other through referrals and comments shared across social media networks.
Having a connected or networked customer community is an outcome that stands to have a huge impact on your growth potential. The power of community reviews should not be underestimated. Showing that there is no buyer’s remorse or regret adds comfort to new buyers who are risk averse.
Advanced LPM = Social drivers & the pressure to be seen doing the right thing
When you offer something that can easily be shared users will share for many reasons one of which is that they do not want their friends to lose out.
Sharing an opportunity for gain is a strong social driver that falls squarely within the domain of a social media marketer.
Advanced LPM = Reporting success stories
You must establish and celebrate success.
Consistent customer satisfaction has huge value but if it is not measured and reported upon the good news cannot be shared. Knowing that the customer experience was rated at five stars by ninety nine percent of users offers a competitive advantage. Again, if satisfaction is not reported it cannot be shared.
Consistent customer satisfaction has more value than a short term discounted price campaign.
Tell your story - Sometimes a 6.5 minute video (now viewed 2,700 times) is more popular than a 58 sec video - it depends on the audience and the topic. In this video the female audience over 40 yrs of age have selected the longer video, nearly every time, as they are interested in modern anti-aging treatments.
Advanced LPM = Active CRM
Customer Relationship Management (CRM) may be viewed as a desire to engage and maintain a conversation with customers on a mutually beneficial basis. This makes it essential to the success of any LPM.
We enable this multiplier which gives a collective boost to the reach of the networked partners.