Loyalty Marketing Strategy & Why Every Interaction Counts
August 14, 2015
The following was excerpted from a post on Momentology that was published on August 5, 2015.
Looking at 2015 and beyond, loyalty is becoming increasingly valuable for digital businesses. A company’s most loyal customers, or “promoters” (if you are looking at Net Promoter Score), are more empowered than ever to recommend a business. On the flip side, “detractors” are also more empowered to voice their opinions to others.
Countless studies have proven the ways in which loyal customers impact the bottom line. For example, the White House Office of Consumer Affairs found that it is 6-7 times more costly to attract a new customer than to retain an existing one.
For digital businesses, the impact could be even steeper. Why? Because consumers are more empowered and more vocal than ever due to the rise of social networks and online review sites. If a customer has a bad experience with a digital business, they may post about it on Twitter, Facebook, an online review site, or a blog.
For digital businesses to develop loyalty among customers, they need to fully understand these online conversations and identify the areas of the experience that customers love and hate. Many digital businesses may feel like they are in less control of their brand reputation with the rise of social media and online reviews, but these outlets actually provide a fantastic opportunity to improve the entire experience – both online and off.
Many businesses have invested in technologies to understand the digital journey and increase conversion rates. But digital behavior only tells part of the story.
For companies to remain competitive and truly understand the customer journey, they need to also analyze the customer voice. Businesses that analyze social media conversations, call center recordings, inbound emails, surveys, online chat, review sites, and other sources of customer feedback in aggregate gain a clear picture of the drivers of customer loyalty.
Beyond loyalty is profitability. Loyalty doesn’t necessarily translate into profitability, according to Gartner Analyst Richard Fouts.
Understanding the voice of the customer from all channels and pairing that view with purchase history and demographic data can help businesses determine which customers are the most profitable. When businesses understand the drivers of loyal, profitable customers, they can make meaningful improvements tailored to that segment.
Elizabeth Clor is the Sr. Director of Content Marketing and Communications at Clarabridge. In this role, she is responsible for solidifying Clarabridge’s position in the marketplace as the leading Customer Experience Management (CEM) technology vendor. Elizabeth has 17 years of experience in high-tech marketing and communications, and is a regular contributor to various marketing publications. She holds a B.A. of English from the University of Virginia.