How to launch a customer loyalty program that boosts your bottom line
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Transcript of How to launch a customer loyalty program that boosts your bottom line
Customer Loyalty Programs
BOOSTING YOUR BOTTOM LINE WITH
FOLLOW ME ON TWITTER @DARRENDEMATAS
BY DARREN DEMATASDarren DeMatas has 10+ years of professional marketing experience working with large corporations and small businesses.
In addition to having an MBA in Internet Marketing, Darren is a Copyblogger Certified Content Marketer and Google AdWords Certified.
Reasons Why Customer Loyalty Programs Matter7
There are 3.3 BILLION loyalty program memberships in the US, an average of 29 per household. (Colloquy)
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More than 71% of those making $100,000 OR MORE a year are enrolled in a loyalty program.(Software Advice)
85% of retailers are in search of ways to add value outside of discounts. (Colloquy)
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It is 6-7 TIMES more expensive to acquire a new customer than it is to keep a current one.(White House Office of Consumer Affairs)
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75% U.S. companies with loyalty programs generate a return on investment. (Experian)
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83% of members agree that programs make them more likely to continue doing business with certain companies (Bond)
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Increasing customer retention rates by 5% increases profits by up to 95%. (Harvard Business Review)
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Big Reasons Why Customer Loyalty Programs FAIL4
97% of loyalty programs are based on spending money to earn money (transactional rewards) (Cap Gemini)
77% of transaction-based programs fail in the first two years. (Cap Gemini)
Overall, ONLY 25% of companies reward any form of engagement.(Cap Gemini)
56% of people don’t join a loyalty program because of privacy. (Bond Brand Loyalty)
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Learn How To Launch A Customer Loyalty Program
Types of Customer Loyalty Programs5THAT WORK
POINTS PROGRAMS
REWARD CUSTOMERS WITH REDEEMABLE POINTS FOR MONETARY OR NON-MONETARY ENGAGEMENT.
POINTS FOR ENGAGEMENT (NON-TRANSACTIONAL)
POINTS FOR ENGAGEMENT (NON-TRANSACTIONAL)
SPEND PROGRAMS
REWARD CUSTOMERS WITH STORE CREDIT BASED ON DOLLAR AMOUNT SPENT.
EARN POINTS FOR TRANSACTIONS ONLY
EARN POINTS FOR TRANSACTIONS ONLY
TIERED PROGRAMS
INCENTIVIZE CUSTOMERS WITH STATUS BASED REWARD LEVELS
BRONZE SILVER GOLD
FreeProducts
Birthday Gifts
Birthday Gifts
Free Shipping
Free Shipping
Free Shipping2X
Points3X
Points
ExclusiveItems
THREE TIERED PROGRAM
#VIBROUGE TWITTER SEARCH = ENGAGEMENT & EXCITEMENT
GOLD MEMBERS GET FREE SHIPPING
PAID PROGRAMS
CHARGE AN UPFRONT FEE FOR VIP BENEFITS
PUNCH PROGRAMS
CUSTOMERS MOVE TOWARDS A GOAL WHEN PURCHASING CERTAIN ITEMS
BUY 5, GET 1 FREE
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Learn How To Launch A Customer Loyalty Program
Tips For Launching A Loyalty Program11
SIMPLEstart1
start with your EXISTING EMAIL LIST 2
JOIN make it simple to3
LIKE THIS
NOT LIKE THIS
EARNINGmake
rules simple
EARN 1 POINTSPEND $100
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100 POINTS IS WORTH $1
SPENDINGmake
rules simple5
launch in digestiblechunks 6
Don’t OverwhelmCustomers’With Options 7
Coupons
POINTS
Tiers Fees
Punch Cards
END GOALhave your8 in mind
IMPROVE CUSTOMER ACQUISITION?
DECREASE CUSTOMER CHURN?
INCREASE ORDER SIZE?
EMAIL AUTOMATION
use 9Automated Emails Get
119% HIGHER CLICK RATES Than Broadcast Emails (Epsilon)
make it about your customer10 not about money
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