The week between Christmas and New Year’s is a busy time of year for many auto dealers. It can be challenging for salespeople to keep up with all the showroom traffic, but that’s no excuse to let extra revenue opportunities fall through the cracks! While the customer is still engaged at the sales desk is the perfect time for a salesperson to boost revenue with the following programs:

Pre-Paid Maintenance Program: What better gift to give than an entire year of worry-free driving? A pre-paid maintenance program is the perfect new vehicle “accessory.” These plans can be sold in both the F&I and service departments. To maximize revenue, dealers should look for PPM plans that require no third-party administration, no sharing of program revenue or forfeiture and no service claim submission requirements. Plans should be customizable and branded to your store.

Loyalty Card: If your customers accumulate enough rewards points, they may be able to redeem them for a gift (either for themselves or a loved one) next year! Rewards should be tailored to what your customers want, such as a free dinner at a local restaurant, spa service, or coupons to local retailers. A points-based rewards program is very appealing to most customers, with the majority of customers choosing to opt in when offered. It doesn’t cost them anything, and encourages them to return to your dealership for service and parts purchases.

What other ideas or recommendations do you have for maximizing revenue opportunities in your auto dealership during the busiest sales week of the year?

The week between Christmas and New Year’s is a busy time of year for many auto dealers. It can be challenging for salespeople to keep up with all the showroom traffic, but that’s no excuse to let extra revenue opportunities fall through the cracks! While the customer is still engaged at the sales desk is the perfect time for a salesperson to boost revenue with the following programs:

Pre-Paid Maintenance Program: What better gift to give than an entire year of worry-free driving? A pre-paid maintenance program is the perfect new vehicle “accessory.” These plans can be sold in both the F&I and service departments. To maximize revenue, dealers should look for PPM plans that require no third-party administration, no sharing of program revenue or forfeiture and no service claim submission requirements. Plans should be customizable and branded to your store.

Loyalty Card: If your customers accumulate enough rewards points, they may be able to redeem them for a gift (either for themselves or a loved one) next year! Rewards should be tailored to what your customers want, such as a free dinner at a local restaurant, spa service, or coupons to local retailers. A points-based rewards program is very appealing to most customers, with the majority of customers choosing to opt in when offered. It doesn’t cost them anything, and encourages them to return to your dealership for service and parts purchases.

What other ideas or recommendations do you have for maximizing revenue opportunities in your auto dealership during the busiest sales week of the year?

When a dealership offers a prepaid maintenance program (PPM) to its customers, what does the store hope to get in return? Customer affinity is one thing, but there are other benefits to this bottom line-driving F&I product.

Not only does a PPM plan deliver affinity, it provides dealers with profitable affinity. And experience shows that customers who use a dealer’s repair facilities are 17 times more likely to purchase their next vehicle from that dealer. As great as that is, the true long-term benefit is that PPM-plan customers frequently purchase additional customer-pay retail parts and labor services that boost repair order profitability.

To capture that opportunity, dealerships need to commit themselves to delivering a safety-and-reliability inspection to every vehicle owner. Doing so helps verify the needs that brought the vehicle into the shop. It also allows technicians to identify other legitimate maintenance and repair needs beyond those covered by the customer’s PPM plan.

Boosting a PPM repair order by upselling an additional $150 to $350 of retail customer-pay business will add serious money to the bottom line. When a PPM plan is built into used-vehicle prices, a dealer can bump after-sale service from about 15 percent to upwards of 50 percent.

A dealer who plugs a basic three-product PPM plan into every one of the 600 used units he or she sells each year can expect to generate more than $1.3 million in total incremental service revenue. This return is based on a $682 retail upsell per customer per service visit over the two-year plan term, even after factoring in a 55 percent utilization rate and plan costs.

PPMs Convert to More RO Dollars

Studies of current customers purchasing a PPM program reveal a remarkable statistic: While current industry stats indicate that roughly one in five customers return to the dealership for service, customers who opt for a PPM plan are visiting their servicing dealers at a rate of 72 percent.

Additionally, plan holders that return to the dealership to redeem their plan benefits purchase incremental retail service about 90 percent of the time. In addition to the increased visit frequency, those plan holders are spending an average of $128 per visit, which includes upsell products and services.

A dealer who writes 1,500 repair orders per month can easily sell 150 to 200 maintenance policies by simply asking customers visiting the service department. In the F&I office, it takes a 500- to 600-unit store to generate the same 200 maintenance policies.

Given these upsell profit opportunities, it’s difficult to fathom why some dealers have had disappointing experiences with PPM programs. Many have said that customers simply won’t buy these plans. But upon closer inspection, it becomes clear why customers wouldn’t be interested: the plans were loaded with services of low value to the customer yet priced quite profitably for the dealership. This is unfortunate, as the nature of these low-value plans – and dealers’ inability to sell the plans – result in lost service business for the dealer.

Newer, redesigned PPM programs help to eliminate those problems by offering a wider range of products and services. These programs – usually administered and managed to offer what is considered valuable to the dealership’s customers and market – seem to really work for both the consumer and dealer.

Next-Gen PPM Plans

Today’s PPM plans also are software-driven, handling once time-consuming chores like plan registration, service claims and premium submission. Because dealers control these programs, any reserve or forfeiture, or money remaining in reserve for plan services not redeemed by purchases, is immediate.

Every plan must also account for forfeiture, i.e., when a customer terminates the plan early or does not use the plan for whatever reason. For most traditional plans, the third-party administrator holds a dealer-funded reserve. It is from this reserve that the administrator could take up to 60 percent of the value of the cancelled services as part of its fee structure.

The new generation of self-administered, self-managed plans offers attractive advantages to today’s market and value-conscious buyer. Custom plan content really appeals to them, and it makes these plans more attractive. These plans also enhance the owner’s investment by having the vehicle maintained by the dealership that sold his or her plan. This, in turn, enhances opportunity for alert advisors to upsell additional services for healthier repair orders.

Originally Published in F&I and Showroom Magazine, October 2011

When a dealership offers a prepaid maintenance program (PPM) to its customers, what does the store hope to get in return? Customer affinity is one thing, but there are other benefits to this bottom line-driving F&I product.

Not only does a PPM plan deliver affinity, it provides dealers with profitable affinity. And experience shows that customers who use a dealer’s repair facilities are 17 times more likely to purchase their next vehicle from that dealer. As great as that is, the true long-term benefit is that PPM-plan customers frequently purchase additional customer-pay retail parts and labor services that boost repair order profitability.

To capture that opportunity, dealerships need to commit themselves to delivering a safety-and-reliability inspection to every vehicle owner. Doing so helps verify the needs that brought the vehicle into the shop. It also allows technicians to identify other legitimate maintenance and repair needs beyond those covered by the customer’s PPM plan.

Boosting a PPM repair order by upselling an additional $150 to $350 of retail customer-pay business will add serious money to the bottom line. When a PPM plan is built into used-vehicle prices, a dealer can bump after-sale service from about 15 percent to upwards of 50 percent.

A dealer who plugs a basic three-product PPM plan into every one of the 600 used units he or she sells each year can expect to generate more than $1.3 million in total incremental service revenue. This return is based on a $682 retail upsell per customer per service visit over the two-year plan term, even after factoring in a 55 percent utilization rate and plan costs.

PPMs Convert to More RO Dollars

Studies of current customers purchasing a PPM program reveal a remarkable statistic: While current industry stats indicate that roughly one in five customers return to the dealership for service, customers who opt for a PPM plan are visiting their servicing dealers at a rate of 72 percent.

Additionally, plan holders that return to the dealership to redeem their plan benefits purchase incremental retail service about 90 percent of the time. In addition to the increased visit frequency, those plan holders are spending an average of $128 per visit, which includes upsell products and services.

A dealer who writes 1,500 repair orders per month can easily sell 150 to 200 maintenance policies by simply asking customers visiting the service department. In the F&I office, it takes a 500- to 600-unit store to generate the same 200 maintenance policies.

Given these upsell profit opportunities, it’s difficult to fathom why some dealers have had disappointing experiences with PPM programs. Many have said that customers simply won’t buy these plans. But upon closer inspection, it becomes clear why customers wouldn’t be interested: the plans were loaded with services of low value to the customer yet priced quite profitably for the dealership. This is unfortunate, as the nature of these low-value plans – and dealers’ inability to sell the plans – result in lost service business for the dealer.

Newer, redesigned PPM programs help to eliminate those problems by offering a wider range of products and services. These programs – usually administered and managed to offer what is considered valuable to the dealership’s customers and market – seem to really work for both the consumer and dealer.

Next-Gen PPM Plans

Today’s PPM plans also are software-driven, handling once time-consuming chores like plan registration, service claims and premium submission. Because dealers control these programs, any reserve or forfeiture, or money remaining in reserve for plan services not redeemed by purchases, is immediate.

Every plan must also account for forfeiture, i.e., when a customer terminates the plan early or does not use the plan for whatever reason. For most traditional plans, the third-party administrator holds a dealer-funded reserve. It is from this reserve that the administrator could take up to 60 percent of the value of the cancelled services as part of its fee structure.

The new generation of self-administered, self-managed plans offers attractive advantages to today’s market and value-conscious buyer. Custom plan content really appeals to them, and it makes these plans more attractive. These plans also enhance the owner’s investment by having the vehicle maintained by the dealership that sold his or her plan. This, in turn, enhances opportunity for alert advisors to upsell additional services for healthier repair orders.

Originally Published in F&I and Showroom Magazine, October 2011

The holiday season is here – a time for free shipping and 20% off everything!

At least that’s what a bulk of the major retailers out there tend to focus on this time of year. For many of us – regardless of the holiday(s) we each celebrate – the focus of this holiday season is on family and friends, on creating memories and sharing traditions, on expressing gratitude and love. It is a season of goodwill and giving.

As a business, are you focusing on the steep rise in sales you can expect over the next two months or on the emotional aspects that impact so many this time of year? What do you think your customers are focusing on? Are the two one in the same?

These are questions that we need to ask ourselves as marketers, particularly in the medium of email marketing. With the barrage of emails that your customers are already receiving, how can you differentiate your email campaigns from all the competition – both in your industry and out? The following suggestions should help you start thinking of ways to make your email marketing efforts be more meaningful – and more successful – this holiday season.

1. Beware of Overkill

Over the last week, I have received at least one email each day from a major toy retailer. I expect that average to increase significantly over the coming weeks. When I initially signed up on the retailer’s mailing list, I read each email. Now, however, I honestly can’t remember the last time I opened an email from this retailer; if they don’t automatically filter to my junk mail, these emails are sent to my trash before I open anything I actually want to open and read.

This is classic email fatigue. When consumers receive emails with irrelevant content or too many emails in quick succession, they develop email fatigue. During the holidays, many retailers think that sending emails more frequently is a good thing; it keeps customers aware of sales, contests and other events. But consider that every other business is also amping up the number of emails they send, and eventually consumers just stop reading them. Fewer, highly targeted emails are more likely to give you the successful results you’re looking for than emailing every update to your entire distribution list.

2. “When” Matters

Are you planning to send out an email campaign on Cyber Monday (the first Monday after American Thanksgiving)? Several reports have estimated that consumers spent well over $1 Billion online on Cyber Monday in 2010. With such augmented consumer spending, it comes as no surprise that email marketing efforts increase significantly that one day each year. So perhaps it is a day you should avoid. Consider sending out any Cyber Monday promotions in advance to avoid getting lost in the glut of emails your customer will receive the day of.

Also, if you’re planning on sending out a holiday greeting to your customers (if not, you should), avoid sending it out on the actual holiday. Most of your customers won’t check their email inboxes on major holidays, increasing the odds of your greeting being read days after the holiday, if it gets read at all.

3. Go for the Open

The subject line is one of the most important aspects of your email marketing campaigns – in fact, it is the one single factor that most often determines whether or not your email gets opened. When email inboxes are full of ads and offers from countless businesses, you need to ensure your email’s stand out. A good subject line is the best way to catch your customer’s eye. Use personalization and humor. Appeal to your customers’ emotions. Brainstorming as a team is one of the best ways to develop solid subject lines, so don’t be afraid to run them past your coworkers. Use small A/B test groups from your database to see what works best. And be sure to use catchy header text to ensure your customers want to keep reading the email once it’s been opened.

4. Get Social

Remember all those “overkill” emails you’re not sending anymore? All that content is still vital to your holiday marketing; it just takes on a different form. Research reports are indicating that in the last year, social networks have surpassed search engines as the most visited batch of websites. Instead of creating new emails for each new promotion or event update, get social. Not only are social media sites like Facebook and Twitter great ways to reach large groups of customers, those posts can be shared and re-tweeted, increasing your visibility in ways that emails can never do.

Social platforms are also great ways to encourage involvement from your customers. An auto dealership in Texas that we work with is sending out an email campaign encouraging its loyalty club members to post their favorite cookie recipe on the dealership’s Facebook page. The members will not only receive loyalty club points, but this dealership will assemble each recipe into a cookbook that members will be able to download after the submission period closes. This is just one great example of using social media to engage your customers – and it’s something this dealership’s customers will not soon forget.

5. Don’t Sell

If every other retailer is offering free shipping and 20% off coupons, then you need to go against the flow. Find ways to differentiate your business from all the others out there competing for your customers’ attention – and purchases. Offer more than simple discounts and savings. The more unique your emails are, the more they’ll distinguish your business and the more likely they are to be shared with others.

We encourage our clients each year to significantly downplay sales and promotions this time of year, and we’re not the only ones. Constant Contact managing editor Martin Lieberman says, “Everyone is selling at holiday time. The more you can NOT sell, the more it will help you stand out from your competition. Shopping tips, gift-giving advice and entertaining content” are perfect examples of email content you can use to help differentiate your business from others. Many of our clients’ members wait anxiously for the email distributed right before Thanksgiving; these campaigns receive some of the highest open rates and best positive customer feedback. What are they sending? A recipe.

6. Be Meaningful

The holiday season is packed with emotion for many of your customers. Are you appealing to that emotion with your email campaigns? Express your thanks to your customers for their business and support during the past year. Share with your customers what you hope to accomplish in coming new year. Actively participate in local charities. Start your own annual food and toy drive. Most importantly, don’t ignore the significance that this season has to so many of your customers. Make your marketing efforts meaningful – and memorable. Give them a reason to share your business with everyone else they know.

This blog reprinted from www.drivingretention.com

, your one-stop customer loyalty resource.

The holiday season is here – a time for free shipping and 20% off everything!

At least that’s what a bulk of the major retailers out there tend to focus on this time of year. For many of us – regardless of the holiday(s) we each celebrate – the focus of this holiday season is on family and friends, on creating memories and sharing traditions, on expressing gratitude and love. It is a season of goodwill and giving.

As a business, are you focusing on the steep rise in sales you can expect over the next two months or on the emotional aspects that impact so many this time of year? What do you think your customers are focusing on? Are the two one in the same?

These are questions that we need to ask ourselves as marketers, particularly in the medium of email marketing. With the barrage of emails that your customers are already receiving, how can you differentiate your email campaigns from all the competition – both in your industry and out? The following suggestions should help you start thinking of ways to make your email marketing efforts be more meaningful – and more successful – this holiday season.

1. Beware of Overkill

Over the last week, I have received at least one email each day from a major toy retailer. I expect that average to increase significantly over the coming weeks. When I initially signed up on the retailer’s mailing list, I read each email. Now, however, I honestly can’t remember the last time I opened an email from this retailer; if they don’t automatically filter to my junk mail, these emails are sent to my trash before I open anything I actually want to open and read.

This is classic email fatigue. When consumers receive emails with irrelevant content or too many emails in quick succession, they develop email fatigue. During the holidays, many retailers think that sending emails more frequently is a good thing; it keeps customers aware of sales, contests and other events. But consider that every other business is also amping up the number of emails they send, and eventually consumers just stop reading them. Fewer, highly targeted emails are more likely to give you the successful results you’re looking for than emailing every update to your entire distribution list.

2. “When” Matters

Are you planning to send out an email campaign on Cyber Monday (the first Monday after American Thanksgiving)? Several reports have estimated that consumers spent well over $1 Billion online on Cyber Monday in 2010. With such augmented consumer spending, it comes as no surprise that email marketing efforts increase significantly that one day each year. So perhaps it is a day you should avoid. Consider sending out any Cyber Monday promotions in advance to avoid getting lost in the glut of emails your customer will receive the day of.

Also, if you’re planning on sending out a holiday greeting to your customers (if not, you should), avoid sending it out on the actual holiday. Most of your customers won’t check their email inboxes on major holidays, increasing the odds of your greeting being read days after the holiday, if it gets read at all.

3. Go for the Open

The subject line is one of the most important aspects of your email marketing campaigns – in fact, it is the one single factor that most often determines whether or not your email gets opened. When email inboxes are full of ads and offers from countless businesses, you need to ensure your email’s stand out. A good subject line is the best way to catch your customer’s eye. Use personalization and humor. Appeal to your customers’ emotions. Brainstorming as a team is one of the best ways to develop solid subject lines, so don’t be afraid to run them past your coworkers. Use small A/B test groups from your database to see what works best. And be sure to use catchy header text to ensure your customers want to keep reading the email once it’s been opened.

4. Get Social

Remember all those “overkill” emails you’re not sending anymore? All that content is still vital to your holiday marketing; it just takes on a different form. Research reports are indicating that in the last year, social networks have surpassed search engines as the most visited batch of websites. Instead of creating new emails for each new promotion or event update, get social. Not only are social media sites like Facebook and Twitter great ways to reach large groups of customers, those posts can be shared and re-tweeted, increasing your visibility in ways that emails can never do.

Social platforms are also great ways to encourage involvement from your customers. An auto dealership in Texas that we work with is sending out an email campaign encouraging its loyalty club members to post their favorite cookie recipe on the dealership’s Facebook page. The members will not only receive loyalty club points, but this dealership will assemble each recipe into a cookbook that members will be able to download after the submission period closes. This is just one great example of using social media to engage your customers – and it’s something this dealership’s customers will not soon forget.

5. Don’t Sell

If every other retailer is offering free shipping and 20% off coupons, then you need to go against the flow. Find ways to differentiate your business from all the others out there competing for your customers’ attention – and purchases. Offer more than simple discounts and savings. The more unique your emails are, the more they’ll distinguish your business and the more likely they are to be shared with others.

We encourage our clients each year to significantly downplay sales and promotions this time of year, and we’re not the only ones. Constant Contact managing editor Martin Lieberman says, “Everyone is selling at holiday time. The more you can NOT sell, the more it will help you stand out from your competition. Shopping tips, gift-giving advice and entertaining content” are perfect examples of email content you can use to help differentiate your business from others. Many of our clients’ members wait anxiously for the email distributed right before Thanksgiving; these campaigns receive some of the highest open rates and best positive customer feedback. What are they sending? A recipe.

6. Be Meaningful

The holiday season is packed with emotion for many of your customers. Are you appealing to that emotion with your email campaigns? Express your thanks to your customers for their business and support during the past year. Share with your customers what you hope to accomplish in coming new year. Actively participate in local charities. Start your own annual food and toy drive. Most importantly, don’t ignore the significance that this season has to so many of your customers. Make your marketing efforts meaningful – and memorable. Give them a reason to share your business with everyone else they know.

This blog reprinted from www.drivingretention.com

, your one-stop customer loyalty resource.

In September Groupon launched the first phase of Groupon Rewards, a new platform that tries to provide businesses with a way to build customer loyalty. Groupon Rewards’ release comes amid concerns from merchants that Groupon customers demonstrate no loyalty to the businesses offering deals.

What Groupon Rewards Does:

Groupon users who spend a merchant-determined fixed amount (at that same merchant) can earn a Groupon Reward, providing a deeper discount than a regular Groupon deal. For example, after spending $50 or $100 at a business over time, a customer might get a Groupon Reward to spend $4 and get $20 worth of food.

How Groupon Rewards Works:

Groupon Rewards are tracked using user credit cards. Once users have opted in to the program, they would need to consistently use the credit card which is already on file with Groupon in order to build their Groupon Reward. A spending goal, set by the merchant, can be met after multiple visits. Users will receive email or phone notifications after each visit alerting them that they just spent money at a merchant offering a Groupon Reward and indicating how much more they need to spend to unlock their Reward.

Pros & Cons for Businesses & Their Customers

While there is no cost for the Groupon Rewards program itself, TechCrunch indicates that “unlike a regular Groupon deal, the merchant will not keep half of the coupon amount. If the reward is a $4 coupon for $20 worth of goods, that entire $4 will go to Groupon.”

Businesses will now be able to track ROI – a feature that was previously unavailable through Groupon.

As the program is tied to the customer’s credit card, merchants and shoppers wouldn’t have to worry about a loyalty or membership card; however, in order for the program to work at all, customers must only use the credit card they have registered with Groupon.

How effective do you think this new program will be in generating repeat business? In generating loyalty? What is the difference?

How well do you think Groupon Rewards would work for businesses when compared to other loyalty rewards programs?

This blog condensed from www.drivingretention.com,  your customer loyalty resource.

In September Groupon launched the first phase of Groupon Rewards, a new platform that tries to provide businesses with a way to build customer loyalty. Groupon Rewards’ release comes amid concerns from merchants that Groupon customers demonstrate no loyalty to the businesses offering deals.

What Groupon Rewards Does:

Groupon users who spend a merchant-determined fixed amount (at that same merchant) can earn a Groupon Reward, providing a deeper discount than a regular Groupon deal. For example, after spending $50 or $100 at a business over time, a customer might get a Groupon Reward to spend $4 and get $20 worth of food.

How Groupon Rewards Works:

Groupon Rewards are tracked using user credit cards. Once users have opted in to the program, they would need to consistently use the credit card which is already on file with Groupon in order to build their Groupon Reward. A spending goal, set by the merchant, can be met after multiple visits. Users will receive email or phone notifications after each visit alerting them that they just spent money at a merchant offering a Groupon Reward and indicating how much more they need to spend to unlock their Reward.

Pros & Cons for Businesses & Their Customers

While there is no cost for the Groupon Rewards program itself, TechCrunch indicates that “unlike a regular Groupon deal, the merchant will not keep half of the coupon amount. If the reward is a $4 coupon for $20 worth of goods, that entire $4 will go to Groupon.”

Businesses will now be able to track ROI – a feature that was previously unavailable through Groupon.

As the program is tied to the customer’s credit card, merchants and shoppers wouldn’t have to worry about a loyalty or membership card; however, in order for the program to work at all, customers must only use the credit card they have registered with Groupon.

How effective do you think this new program will be in generating repeat business? In generating loyalty? What is the difference?

How well do you think Groupon Rewards would work for businesses when compared to other loyalty rewards programs?

This blog condensed from www.drivingretention.com,  your customer loyalty resource.

A good loyalty program consists of much more than simply rewarding your customers’ repeat business. In many ways, the repeat business generated by customer rewards is only scratching the surface of the loyalty and retention benefits available with such a program. A recent article published by ITC Infotech details how businesses can include customer-centric processes in implementing their customer loyalty programs to improve their tactical marketing efforts and the overall customer experience:

Collect & Organize Data

Adopt a customer loyalty solution that allows not just the collection of data but its organization into smaller and usable modules which will help in the accurate assessment of actual ‘market’ and locate existing and emerging trends. Organized data can be extrapolated not only with information on prevailing economic scenario but also to competitive landscape to fine tune a loyalty program that is future-proof. It goes without saying that the more detailed loyalty data repositories are, resultant reports generated would be more pointed making loyalty offers more attractive to its members.

Profiling Customer Segments

Psycho-social profiling of customer segments is integral to the analysis of the health of a loyalty program. Besides demographic segmentation, your solution should allow you to pull up data that displays attitude, behavior, spending and customer satisfaction. This helps in ongoing fine-tuning of the loyalty strategy.

Integrating Loyalty with Organizational Goals

Once insights are obtained, it is important to align them to organizational goals thereby drawing out a winning, fit-for-purpose marketing loyalty program. By identifying target groups and actionable touch points, it is far easier for organizations to get higher returns on loyalty programs. Research shows that when it comes to loyalty programs, one size does not fit all as customers are promiscuous by nature and thus heterogeneous in their preferences.

Adopt Tailored Tactics

While generic marketing is about broadcasting, loyalty marketing is the practice of narrowcasting thus its tactics have to be tailored to the needs of specific customer segments. These tactics may be based on regions, gender, spend, membership to specific social class etc. Specific customer insights go a long way in sharpening visual merchandizing, planning campaigns & promotions and ensure that spend on any media returns more bang for the buck!

By using properly segmented data collected through your loyalty program, you can ensure your marketing efforts are targeting the right people with the right message at the right time. Your customers are more likely to respond to offers that were intended specifically for them, rather than offers broadcasted to every individual in your database. And when your customers are responding to your marketing efforts at higher rates, organizational goals – and overall success – will be more easily achieved.

What other customer-centric processes have you found to improve your tactical marketing effort?

What methods have you tried for tracking the overall efficacy of your marketing efforts? What didn’t work? What worked best?

This blog excerpted from www.drivingretention.com, your one-stop resource for customer loyalty solutions.

A good loyalty program consists of much more than simply rewarding your customers’ repeat business. In many ways, the repeat business generated by customer rewards is only scratching the surface of the loyalty and retention benefits available with such a program. A recent article published by ITC Infotech details how businesses can include customer-centric processes in implementing their customer loyalty programs to improve their tactical marketing efforts and the overall customer experience:

Collect & Organize Data

Adopt a customer loyalty solution that allows not just the collection of data but its organization into smaller and usable modules which will help in the accurate assessment of actual ‘market’ and locate existing and emerging trends. Organized data can be extrapolated not only with information on prevailing economic scenario but also to competitive landscape to fine tune a loyalty program that is future-proof. It goes without saying that the more detailed loyalty data repositories are, resultant reports generated would be more pointed making loyalty offers more attractive to its members.

Profiling Customer Segments

Psycho-social profiling of customer segments is integral to the analysis of the health of a loyalty program. Besides demographic segmentation, your solution should allow you to pull up data that displays attitude, behavior, spending and customer satisfaction. This helps in ongoing fine-tuning of the loyalty strategy.

Integrating Loyalty with Organizational Goals

Once insights are obtained, it is important to align them to organizational goals thereby drawing out a winning, fit-for-purpose marketing loyalty program. By identifying target groups and actionable touch points, it is far easier for organizations to get higher returns on loyalty programs. Research shows that when it comes to loyalty programs, one size does not fit all as customers are promiscuous by nature and thus heterogeneous in their preferences.

Adopt Tailored Tactics

While generic marketing is about broadcasting, loyalty marketing is the practice of narrowcasting thus its tactics have to be tailored to the needs of specific customer segments. These tactics may be based on regions, gender, spend, membership to specific social class etc. Specific customer insights go a long way in sharpening visual merchandizing, planning campaigns & promotions and ensure that spend on any media returns more bang for the buck!

By using properly segmented data collected through your loyalty program, you can ensure your marketing efforts are targeting the right people with the right message at the right time. Your customers are more likely to respond to offers that were intended specifically for them, rather than offers broadcasted to every individual in your database. And when your customers are responding to your marketing efforts at higher rates, organizational goals – and overall success – will be more easily achieved.

What other customer-centric processes have you found to improve your tactical marketing effort?

What methods have you tried for tracking the overall efficacy of your marketing efforts? What didn’t work? What worked best?

This blog excerpted from www.drivingretention.com, your one-stop resource for customer loyalty solutions.