According to eMarketer, only around 46% of customers claim that the overall price is the number one reason why they buy gifts from a particular retailer. This leaves plenty of room for other forms of customer retention that don’t involve ridiculous price drops, which compromise your company’s profit margin.
On top of that, more and more companies are realizing that brand loyalty cannot be gained through discounts. Private White, a British outerwear brand for men decided to launch a Black Friday campaign that offers 0% off. See James Eden’s LinkedIn post for more details on why they left the price wars for the competition.
Here are the three most powerful practices that ensure shoppers stay with you – even after the holiday craze has quieted down.
1. Personalized emails
If there is something customers like, it’s being treated like a VIP by their favorite company. Sending your customers a message or newsletter that is tailored to their shopping persona will no doubt make them feel appreciated.
Make sure to craft an email template that reflects relevant information. Don’t stop at simple data such as the name, spice up the message with product recommendations that match their purchase history. Pay attention to subtle additions as well, such as changing the backdrop to match the recipients favorite color or showcasing a tier-specific logo. The possibilities are endless, so be creative!
It goes without saying that your emails should reflect the atmosphere of the current season. To add more spice to your campaign, consider assigning different pictures and content to male and female customers, or creating higher quality designs for top-tier members.
2. Loyalty program
Launching a loyalty program is a valuable way to increase customer engagement, especially during the retail rush.
- A loyalty program elevates your existing customer retention strategies
- Reward additional actions that aren’t related to the buying cycle, such working out or referring friends
- Use points, or scrap points altogether; both systems work
- Add alluring bonuses, like discounts or free shipping, or take the concept to the next level and use experiential rewards to give customers personal treatment
On the other hand, loyalty programs can help you better understand your customers because you can reward customers for taking part in surveys or completing their profile. Doing so provides valuable information that could be later used for personalization. Think about the rich data you could acquire, such as birthday, gender, sizing, favorite color or brand preference.
It’s also worth mentioning that the concept of Recognition Loyalty further expands the possibilities by introducing the concept of membership tiers.
To give you an example, Represent, a shared client of dotmailer and Antavo, has six tiers. Each tier offers incremental benefits. Participants are ranked according to their overall spending value, which motivates them to increase their purchase frequency throughout the year, so they can climb the ladder and unlock more rewards.
3. Memorable experiences
My final piece of advice for improving customer retention during peak retail seasons is to focus on surprise and delight elements. People love to receive gifts, and the gesture is even more impactful when the recipients aren’t expecting it.
So, what should be in your gift box? Sweepstakes are a good start because they have a game-like feeling. During Christmas, a calendar that offers limited-time bonuses each day would amaze your customers, no doubt about it.
Of course, no one can resist a great deal, especially if there is a time limit attached to it. Granting double or triple points for products during the holidays has the power to mobilize shoppers.
To illustrate the power of surprise and delight, look at the email campaign of one of Antavo’s clients, LuisaViaRoma. Their birthday emails not only increased the active members of the Privilege Program by 50%, but these emails ended up among the company’s Top 3 highest netting campaigns.
Maintaining Engagement Requires Constant Effort
If you really wish to stand out from the competition and keep the customers you gather during the peak season, then you need a constantly-evolving strategy that implements the latest innovations.
The time of ‘set it and forget it’ or ‘one size fits all’ solutions are over; customers want a more personalized experience that constantly gives them new opportunities to interact with your brand –not just when they open their wallets, but also when they’re living their lives, outside the buying cycle.
Interested in learning more about customer retention and engaging your customers in a meaningful way? Here is the Definitive Guide to Creating a Successful Loyalty Program that dives even deeper into the topic.Reblogged 3 months ago from blog.dotmailer.com