January 2, 2018, 11:00 AM EST
Defining Loyalty for Your Brand
Tips for Building the Foundation of LoyaltyDOWNLOAD
CMO Synchrony Financial
Table of Contents
1. Define what a loyal customer looks like Engagement Frequency
Loyalty looks different for each brand—for some, it means customers shop weekly, for others, the brand is in the top 3 brand choices of the purchase decision.
Analyze the behaviors of your loyal customers. Which channels do they prefer? Do they primarily make large purchases? Are they shopping all categories within the brand or limiting their spend to specific categories?
The more a customer engages with a brand the more likely they are to be a loyal customer. Do they engage via social media? Are they recommending your brand to friends? Are they helping to create brand buzz?
2. Understand the value of loyalty to your brand
- 81% say loyalty programs make them more likely to continue doing business with a particular brand1
- 73% are more likely to recommend brands with good loyalty programs1
- 66% modify spend to maximize loyalty benefits1
- 50% of consumers say if a favorite retailer sent relevant offers to a mobile device, they would shop there more often2
Leverage segmentation to identify who the most loyal customers are and what their channel, communications and shopping behaviors are.
Understand the value of the most loyal customers and invest in those with the greatest potential for loyalty.
Once you know who your most loyal customers are, you can quantify the value they provide to your business. Are they worth an incremental $20 or $50? Use this number to calculate the potential value of marketing to the next tier of customers, to encourage higher engagement and brand loyalty.
3. Determine the factors important to you and your customers
- 84% of customers feel quality is more important than brand
- 71% of shoppers select retailers for their excellent customer service
• Repeat patronage
• Increased sales/share of wallet
• Purchase of ancillary services
• Non-price based differentiator
• Insights from consumer data
• Recognition and reward for their patronage/loyalty
• Assurance that they are getting the optimal deal
• VIP and insider services
• Personalized offers
4. Build a deeper relationship with your best customer
The initial reason a customer engages with a brand or signs up for a program can be a discount or a special promotion. But a customer stays engaged because of the product, experience and the relationship they maintain with a brand. The more a customer engages with a brand, the more the brand should look to acknowledge them. Providing special and exclusive customer access and experiences can serve as a brand differentiator in the market.
• Spend and get
• Cash back
• Product recommendations
• Personalized communications
• Private in-store events
• Concierge service
Loyal customers are the most valuable. Before creating a strategy to engage customers, have a clear definition of brand loyalty. The four steps outlined here are the starting point to developing long-term customer relationships and ultimately driving more customer loyalty to your brand.