The communication station: are you making your connections?

The communication station: are you making your connections?
Tags: Consumer Behavior, Loyalty Programs, Marketing
February 23, 2011

Savvy loyalty marketers know that deeper engagement and personalized communication are the biggest loyalty drivers for high-value customers, not mass e-mail blasts or gimmicky promotions. So it comes as no surprise that a new study on loyalty and e-mail finds that e-mail campaigns to loyalty program members have transaction rates that are nearly 30% higher than bulk mailings. And the fact that an e-mail announcing the arrival of a reward is five times more likely to be opened is also not a jaw-dropper.

But in the highly competitive landscape of loyalty programs, making the right connections and getting consumers engaged through relevant and personalized communications is more important than ever. And the best practices put forth in this study are spot-on:

First of all, are you engaging your customers throughout their lifecycle? Whether it's through reward statements, special promotions or status updates, keeping the connection going is key. Make account information easy to find and easy to track. With the next rewards program just around the mall corner, your customer doesn't want to have to work hard to earn and burn rewards. Clearly communicate reward benefits. Say it once, say it twice, and say it again and again. If your customer doesn't understand the true benefits of your program, he/she is not going to engage with your brand in an optimal way. Make sure your investment in loyalty speaks loud and clear.

But these best practices aren't the end of the journey towards relevant and engaging communication. Are you using your data to its best advantage in creating personalized offers and messaging? By knowing what your priority loyalty program members want and need through data you gather and segments you create within the program, you can provide timely and relevant messaging and communication that creates even more engaged customers. It's a win-win if you're making the right communication connections.

Reader Comments

Molly Griffin

about 15 months ago

I completely agree with your statement "If your customer doesn't understand the true benefits of your program, he/she is not going to engage with your brand in an optimal way." Many companies spend the time creating a customer loyalty program, but either fail to accurately maintain it or engage customers. This makes it ineffective, so it is important for companies to create an effective loyalty campaign the engages customers and if they find it is not working they should work to improve it, not ignore it.

Thanks for sharing.
Molly Griffin
Dydacomp
Http://www.dydacomp.com