01Nov

Using Loyalty To Motivate Customer Retention

Our ‘KEEP’ campaigns are designed to make your ‘best’ customers feel like VIPs. These campaigns are all about getting to know your customer better. Encourage them to build their profile, provide data on the
share of wallet they give you and provide feedback on your product and service.

The Objective
Understanding your customers better allows you to gauge your audience’s needs and design your
products, services and strategies to better suit the customer you want. In B2B you often find that the
customer you deal with every day isn’t the person making the decisions.

 

Top Tips To...Motivate Customer Retention


We all know the old adage that it is 10x easier to keep an existing customer than it is to win a new customer, so you need to make sure you are looking after your best customers.


1. Keep It Simple
Don’t try to focus on changing multiple behaviours at once. Keep the earning metrics simple. Focus on getting customers to build their profile so you know how to best service them or focus the campaigns on gathering feedback and reviews.



2. Keep it Short
Keep your campaign period short and make the benefits appear more tangible. Customers are able to
visualise achieving the rewards if they are within shorter time periods. Our recommendation would be to run 6 to 9 month campaigns.

 

3. Communicate
Make sure that the people in your business who hold the customer relationships understand the campaign. They need to be able to articulate exactly how each customer will earn, what rewards are available to them and identify the benefits.

 

4. Make it Personal
‘KEEP’ campaigns are designed to focus on your VIPs and for this reason the earning metrics, the rewards and the communication has to be personalised to each customer. Before starting you need to identify your VIPs, understand what behaviour you want to target and work out what that is worth to you. You can then identify the potential for each customer and personalise the finer details to suit.


5. Reward the Right Person
Once you better understand the customer through the data that you have gathered, you should be able to target the rewards correctly. Not all businesses are able to accept physical rewards, the person you are speaking to day-to-day might not be the decision maker. You can reward your VIPs with tiered reward levels, bonus points and higher earning metrics. Your VIP rewards might include bonus services that aren’t available to other customers.

 

Putting It Into Practice...

Making Partner - The Campaign


We helped a client in the plumbing and heating sector to introduce a loyalty programme designed to make life easier for their customers. The programme was designed to reward customers for consumer referrals. The programme focussed on helping the installer by completing the CAD designs and making the ‘sale’ of the products on their behalf. Every time an installer referred a consumer they earned an enhanced points percentage on their spend. Through the programme referrals could be attributed to the installer meaning that the client now had visibility and tracking on over £6million of cash sales.


Customers who achieved a specific sales value within a 12 month period were promoted to Partner Rewards which unlocked new rewards, prize draws and increased earning potential. Customers remained on the top tier for a 12 month period, enjoying the enhanced benefits and rewards available
to them.


The Results
The increased awareness of where cash sales were being driven from allowed the client to better understand their customer and tailor their service. The programme delivered an increase of 20% sales of qualifying products. Membership of the Rewards programme has driven 300% increase
in referral sales, resulting in increased revenue for the client and the installer. Membership of the programme rose dramatically and engagement now stands at 91%.

 

About the Author

Melanie Parker

Melanie Parker

Stream’s co-founder, Melanie, became the first British woman to become accredited with the CLMP from The Loyalty Academy. Passionate about all things loyalty, Melanie cuts through the technical jargon and gets to the real business issue. Melanie loves to develop engaging digital solutions that appear simple whilst creating long lasting partnerships that add value to all.

Attachments

Related

How gamifying loyalty can encourage engagement and sales

How gamifying loyalty can encourage engagement and sales

Gamification is a loyalty technique used worldwide to increase both customer retention and overall c...

Read More
Your September Monthly Streamspiration

Your September Monthly Streamspiration

This month's Streamspiration takes at look at our new partnership with The Wise Marketer, the la...

Read More
Why I love working for Stream

Why I love working for Stream

Alice's latest article reflects on the last 18 months and how the pandemic has made her think ab...

Read More
A Busy Start to The Year

A Busy Start to The Year

It was a busy start to the year at Stream HQ (and satellite WFH locations!) last month, for which we...

Read More
Team Meet Ups

Team Meet Ups

Laura discusses the joys of the whole team being back together for the first time in 15 months.

Read More
Empty
Click + to add content