Your loyalty member: CRM strategist or promiscuous consumer?

Do we, as marketers, business owners, loyalty experts, forget to view our customers of our loyalty programmes just as they are…customers? 

Definition of a customer: “A party that receives or consumes products (goods or services) and has the ability to choose between different products and suppliers”*

Looking at the first part of this definition, “A party that receives or consumes products (goods or services)", you are reminded about how little you understand about your customer other than that they chose you to “receive or consume products” from.  Only after a thorough data analysis do you begin to define this type of customer a lot better (shopping habits, frequency, basket size, preferences etc.). However, without delving into too much detail about data and how to use it (read the Iceberg effect), I’d like to touch on one of the fundamental reasons why we find your customers are not redeeming the full benefits of your programme and in turn, losing interest in your programme.

Being in the loyalty industry, I am the owner of over 35 loyalty cards. I know this collection is more than what the average person would possess but the rate at which loyalty is growing in South Africa, the man on the street will soon start (or has started) to compete with my collection.

I also know I redeem way more than my peers by studying, interacting & fully “exploiting” the full benefits of these programmes as part of my day to day job. There may only be a very small percentage of us like minded loyalty folk out there…but what about our customers that do not have the same level of interest, time or patience to investigate how to reap the full benefits of a programme? How do you get them to find your programme worth while?

As mentioned above, the loyalty industry in South Africa is quickly catching up with the global loyalty landscape and with so many companies entering the loyalty playing field it is critical for one to realise this fact about your members and help them get the best out of your programme so that you become their first choice when it comes to choosing which card, of many, to use. Your customers, as defined above, have the “ability to choose between different products and suppliers” so give them reason to choose you, first.

·         Keep your loyalty programme simple, understandable and easy to use.

·         There is a serious lack of consistent communication about HOW to earn redeem.  All we seem to be communicated about is WHAT you can earn. Encourage ways for them to earn & redeem rewards faster.

·         Have a communication strategy that consistently informs your members on how to earn the broader benefits of your programme and this communication must be delivered in such a manner that is easily understood by your customers.

·         Make rewards obtainable – do not make your member feel that the rewards are out of reach.

·         This is just a smattering of considerations….there are so many more in a comprehensive list. 

It is time to stop assuming they (your customers) are members around your boardroom table but are normal people who promiscuously choose difference brands at different times. 

Ros Siddle, Marketing & Loyalty Research Manager, Truth

*definition of customer, source: www.businessdictionary.com

Everything Communicates

There are several reasons why quality content matters both online and offline. However, there is one factor which I think is vital and worth highlighting - Understanding just “who” is following your brand in the online space.

Are you aware of the type of person who is observing your brand on social media? Yes…you may make the assumption that they have similar interests to you or work in similar industries to you because, why else would they have chosen to like or follow your brand, right?  Well, one may never understand the true reason why people follow your brand, it may simply be that they are interested in what you have to say & offer to them. However, we often under-estimate the power and impact these “fans” may have on your brand once these fans get talking.

I believe that there are typically two types of social personas navigating your social media platforms:   

Persona 1: “Social engagers”. These are your socially active bunch. By active I mean that they ask, tell, listen therefore engage with your brand and spread the word of your brand to their social network. 

These are also known as your story tellers. You (the brand) share content to your community, which will reach about 10-20% of your online base and they (the fans) do the rest. Your fans spread the word to +- 80% of your remaining base via their social media platforms or through word-of-mouth (offline). I could go as far to say that these are usually your ambassadors or brand breakers (both opinionated with lots to say about your brand whether positive or negative).

Persona 2: “Social observers” – they follow several brands and they (themselves) have fairly high following and follower rates, friends etc. but do not socially engage with the brands they follow. They do not share opinions but read everything there is to read about a brand. They read what others say about your brand too. They create an impression about your brand without having engaged with you...you could call them quite judgmental actually. The most engaging thing they have done online is clicking “like” and scrolling through your fan page. 

However, your content is what matters to them, there is a reason they read your posts and continue to follow you and their opinion of you is determined solely on that. Do not under-estimate the power of these social observers. Their offline actions are vastly different to their online behaviour. When anything is to be said about your brand offline, they have no hesitation to share their thoughts & opinions about your brand, based on what they read about you or observed what others had to say about you…reiterating the power of word of mouth. 

You never truly know which people are just passively watching your brand (without engagement) and just how influential these people may be of your brand simply by what you have been saying online. Therefore, a constant need for consistent, quality, value adding content must be achieved. 

Ros Siddle, Marketing & Loyalty Research Manager, Truth