dma email lifecycle: retention - creating loyalty programmes
DESCRIPTION
When used effectively loyalty programmes can convert subscribers into loyal customers and advocates. Riaz Kanani of Alchemy Worx looked at what makes a great loyalty programme and inspire you with some great examples.TRANSCRIPT
Creating Loyalty Programmes
Riaz Kanani
Marketing Director, Alchemy Worx
About Alchemy Worx
153Years of experience
10We’ve been around for over a decade
60+Staff focused on email marketing
US/UKBased in Atlanta & London
Alchemy Worx
Setting the Scene
60+% of consumers think that they will be worse off in the next 12 months
71% of marketing directors felt loyalty schemes are more important since the credit crisis started.
Creating Loyalty Programmes
Don’t focus on the device
they don’t create loyalty..
The only way you create true loyalty is by your behaviour over time - do you in a transparent, reliable way, create benefits for people?
Sir Terry Leahy, former Chief-Executive of Tesco plc
Collect and Analyse Data
• Start small – and test• Quality is critical
– assign a confidence level to each data point
• Define customer types• Identify potential touch points• Don’t ask for too much!
VS
+
Touch points
• Weekly newsletter
• Milestone triggers
– birthday, renewals, points total
• Behaviour triggers
– purchase, reviews, website/store visit
• Statements
Tailored Emails
Tailored Emails
Content
• Content should draw members to the
brand by adding perceived value
• Interaction focused..
– but don’t forget the brand impact
• Incorporate member data into all your
emails
Aviva
Aim: Encourage
engagement with
email through
value-added
content
Audience:
Customers and
prospects
Focus: Brand
Subject Lines
Riaz. Here's this month's silver tier O2 Rewards update. Full of offers you won't want to miss
Short - Ambiguous or Misleading
“Summer starts here”
CTO Rate = 7%
Open rate 75%
Relevant Customers
10%
Click Rate 5.25%
Long - Multiple Proposition
“50% off Nike trainers; the latest from Wimbledon, Plus your chance to win a spa weekend”
CTO Rate = 28.5%
Open rate 35%
Relevant Customer Group A
10%
Click Rate 10%
Relevant Customer Group B
10%
Measure
• Remember loyalty metrics– Learning Curve– Frequency– Decay
• Track key email metrics– Reach and Frequency– Revenue
• direct and indirect
Reach vs Open
Market Research: Surveys
• Exchange value for more information
• Compare behaviour with response
• Filter results back into the programme
Leverage other channels
• Email is the glue
• Use to:– Drive offline traffic– Drive website interaction– Promote mobile apps– Promote Social Channels
• Use each interaction as an opportunity to learn more
Rewards
• Tailor rewards to your audience
• Understand which one is best
• Timely communication(test)
Rewarding email interaction
In summary• Clearly identify programme benefits• Identify key pieces of (accurate) data and
email touch points• Track your key success metrics• Use market research and behaviour to
iterate• Leverage all channels to both drive
interaction and engagement– but also to learn more and improve
• Adjust rewards messaging based on the individual
