A good loyalty program necessarily involves all the services of the company and cannot be reduced to the discounts it offers. This requires, in addition to faultless and personalized communication with its customers, that theExperiential marketing consists of providing the prospect or customer with a memorable experience at each point of contact with a brand. be up to it. A seamless customer experience from in-store visits, purchases on the The B2B website is the digital showcase of your business. This is the easiest and most effective way to present your company’s products and services to your future customers., and of course, deliveries and customer support. It’s all of these things that can ultimately help build customer loyalty and even inspire them to become brand ambassadors. Vanessa Noppe, Solution Consultant at Emarsys shared with us her experience from setting up this type of program.
How Pizza Hut Tripled Conversion Rates With Its Loyalty Program
Customer loyalty at the heart of e-commerce
A loyal and satisfied customer will not only buy more often, but they will also talk about it around them. the Recommendations, word of mouth marketing and social networks to be essential. and reviews left on products or services will improve brand perception.
Transparency: this article is the last of a series of seven, produced by Visionary Marketing on behalf of Emarsys in a file entitled: “how to fail (or on the contrary, succeed) your digital marketing” and intended to highlight the bad and digital marketing best practices. Find this series on vismktg.info/mktgdigital
A loyalty program must go beyond discounts
Loyalty programs, commonly associated with discounts and rebates, must now fully invest in the customer experience, and offer other types of rewards.
A good loyalty program must be fully invested in the customer experience
“Access to exclusive sales, in-store experiences, samples, testing of new products, for example, will make the customer feel that he is unique, build loyalty and retain explains Vanessa Noppe.
In addition, customers belonging to loyalty programs, having an interest in the brand, will be more likely to share information about it: what inspires them, their use of the product, their buying habits, etc.
This declarative data will make it possible to expand the data we already have on them, and thus further personalize the experience, allowing relevant interactions.
Contribution of the loyalty program to company performance
The contribution of loyalty programs to business performance varies by industry or brand.
“In all cases, loyalty has a definite impact on turnover, on the value of the customer’s life cycle, on the average basket, on the time between purchases. The impacts are numerous,” adds Vanessa.
Customers no longer buy on a whim these days, especially in e-commerce. They ask about features, prices, service. It is even more important to be able to stand out to capture the customer
The cost of acquiring a new customer is significant. Investing in loyalty, benefiting from ambassadors, positive opinions, will have an impact on profitability, and acquisition costs, potentially, will drop.
What obstacles to implementing a loyalty program
The lack of data unification
Many loyalty programs fail. Sometimes the program itself is poorly thought out, for example with the same rewards for everyone, without customization
But the biggest reason for loyalty program failures is data silos.
Companies use many applications, each of which performs a specific function. One of them will manage online sales, another in-store sales, yet another the content of the website, an application sends pushes, another sends emails…
All these applications will produce data, which will be difficult to unify.
However, in loyalty, it is important to know your customer and to have an overview of all his points of contact (touch points) with the brand.
The lack of visibility on the value of the points
Another obstacle to the proper functioning of a loyalty program is sometimes his lack of visibility. A customer will know the number of points he has in his loyalty account… but he will have no precise idea of what he is entitled to with these points, for example
Communicating about the program is part of the success of the implementation.
This program must therefore be mentioned in all communications with customers who are not part of it, and for those who are part of it, communicate about its operation, the interest of accumulating points, the points which are about to expire and what ‘one must use.
Feedback on the Pizza Hut loyalty program
For Pizza Hut, one of the big challenges is the The very notion of the B2B or B2C market is at the heart of the marketing approach. A market is the meeting of supply and demand. competitive. “A bad experience on the delivery of a pizza will very easily switch the customer to a competitor,” explains Vanessa Noppe.
Pizza Hut had a totally siled data problem, with no unified view of the customer. They did not have precise information on customer preferences, eating habits, number of people in the household, etc.
Initially, the company sent the same communications to all of its customers.
Everyone received the same communication, and the same promo code
Vanessa explained to us the solution implemented by Emarsys with the famous American pizza brand.
“We started with a welcome program, the first program received by a new client,” she tells us.
The objective of the program set up was to collect information on dietary restrictions, preferences, family size
The message was adapted based on the information received from customers, and the impact was real:
Collecting food preference data drove twice as many conversions in the first month after implementing the welcome journey
Pizza Hut also worked on the concept of real timewith the implementation of a new program reacting within three minutes to an abandoned shopping cart or navigation.
In the 30 days following the implementation of this program on shopping cart abandonment, conversions were multiplied by 3
“Email was Pizza Hut’s preferred channel for communicating with its customers, but our data analysis revealed that some people were not responding on this channel,” Vanessa continued.
The brand then decided to “retarget” by SMS or other channels preferred by consumers, and immediately saw better conversions from new customers”.
What tools are necessary for the successful execution of a loyalty program?
“A customer loyalty program should be based on an onmichannel customer engagement tool allowing communication on the different channels, and on unified data from source data, all of which are different,” explained Vanessa Noppe.
A marketer to retain a customer must know him, as well as his appetites. The unification of data is crucial, whether it comes from the website, offline or online sales, engagement data, or loyalty data.
Then he must communicate with the customer on the right channel, at the right time and with the right message.
This goes through a Stricto sensu, to segment means to divide its market into subsets (segments) which constitute homogeneous and distinct groups relevant information, personalization of communications, and also product recommendation if necessary. There are very powerful technological tools but the mastery of these tools is not always perfect.
We sometimes see problems with our customers adopting the tools of the Digital marketing definition, a term used constantly and yet well misunderstood because poorly defined. Many features are at your fingertips but you don’t necessarily use them
Emarsys has thus set up tactics, that is to say pre-designed programs according to specific use cases.
“These tactics are based on customer cases and allow programs to be set up very quickly with program structure, segmentation, waiting nodes, etc. This helps improve customer lifecycle work, cart abandonment, browsing abandonment, and other loyalty-related functions.”
These tactics thus make it easier for customers to familiarize themselves with the advanced functionalities of these digital tools while enabling them to launch sophisticated loyalty programs more quickly.
Best practices for personalizing messages to loyal customers
The customer needs to feel that he can trust the brand, that the brand knows him, and that it will communicate with him according to what he likes
“Having the right data and using it in the right way to make relevant personalizations and recommendations is the key to success,” explains Vanessa Noppe.
Whatever the subject around digital marketing, everything ends up going back to data, which seems quite logical. A conclusion for this last post of our series, which is also valid for the whole file.