Have you seen The Customer Experience Factbook?

In this 180+ page report, you'll find all the information and support you need to build a profitable, effective CX Improvement Program that spans every part of your business. You'll be able to implement and manage meaningful and profitable change, and grow your bottom line despite a slowing economy.

Get it on Amazon (Kindle/Print)

Consumers spend more for 'valuable rewards'

When Tesco launched its Club Card programme back in the mid-1990s, one of the top priorities of this major marketing innovation was that it should be used to bring the supermarket chain closer its customers. And, in today's super-austere economic climate, consumers demand real value from their favourite brands: if they're going to choose your brand and your loyalty programme, they expect to be totally 'turned on' by its benefits.

But what do consumers really want from a loyalty programme? Well, "high profile rewards" are top of the list, 79% of consumers tell us that they want to feel like they're getting the best benefits from a brand possible. Second, 75% of consumers said they were lovers of the "feel-good factor": they want to initiate a little envy among their peers, getting exclusive extras just because they are members of the loyalty programme. This is all about spoiling customers with discounts at other brands that might touch their day-to-day lifestyles, or adding value to your products or services by providing programme-exclusive access to advanced services (such as free gift-wrapping).

Consumers also said that they love a bit of "surprise and delight", with 72% saying they want to feel that a brand could surprise them at any moment with a so-called 'Random Act of Kindness'. Incorporating seemingly random (unpredictable) gifts into your loyalty programme gives you the chance to 'go viral' on the internet within minutes, and could provide an almost unlimited capacity for brand exposure while your main marketing spend is still only going on your most loyal customers.

Interestingly, consumers generally don't subscribe to the "points make prizes" reward strategy, saying that they just aren't as excited by programmes that involve the collection of points (50%), and only 11% said that "ollecting points to receive a gift from a catalogue would turn me on". It is therefore the immediacy of redemptions - or rather, the lack of it - which customers feel is the key problem with the points-mean-prizes model. One respondent commented: "I want something that gives me immediate value; I don't want to accumulate loads of points to get little back."

And there are other problems with points. Consumers are smarter than ever about points games, and their response to a points-based loyalty programme could lead to a "points war". For example, one respondent observed: "Last weekend, Superdrug offered me a similar scheme to Boots, although it was quite difficult to build up points as £1 = 1 point, whereas at Boots £1 = 4 points."

Loyalty programme communications were also found to be crucial, not only in their content but also in their timing and frequency. With one respondent saying "They're great offers but the emails are too frequent, so now I often just delete them," communication has become a very delicate balancing act. Consumers do not want to be hassled by over-frequent communications, with 29% being happy to be contacted by a brand weekly or more, while 64% prefer "twice per month". And of course the final step is keeping the communication relevant. Consumers said that they "like relevant, tangible, good communication that doesn't seem invasive", and that "loyalty is about generating goodwill through customer service".

Money off vouchers get consumers most excited about a loyalty programme, with 64% saying that this is what they love to see - but be careful not to devalue your brand. Customers said they want to receive "vouchers for a decent amount", and they know they've got to show their loyalty to qualify for those benefits. Many said that offering a "recommend-a-friend scheme with a large percentage discount off your next purchase" was a key reward for them. This is good news for the marketer: the customers themselves have confirmed that money-off rewards will successfully drive profitable behaviour.

"When we got consumers thinking about rewards, they gave more support still to the idea of redeeming benefits at other synergistic brands that weave through their lifestyles," said Cross. For example, 62% said they would be more likely to sign up with a programme which offered discounts and benefits at other favourite brands: "Just like flashing your exclusive credit card to receive extra benefits at a retailer or bar, your customers want to receive little treats just because they are loyalty programme member. It supports their love to 'involve multiple retailers' so they can 'redeem on lots of different things'," concluded Cross.

But, for consumers, what really came through as a crucial aspect of customer loyalty was the level of personalisation of the programme. Almost three quarters of consumers said they are happy to provide additional personal information to a brand so they can be contacted personally with reward offers on special occasions, whether it's for things like a nice gift or card for the customer's birthday, or communications involving their children or pets. Another surprising example of an area in which several consumers said they would like to see greater personalisation is for apparel retailers to remember their clothing sizes, and styles that they are fond of, making it easier for them to search through clothes online.

Have you seen The Customer Experience Factbook?

In this 180+ page report, you'll find all the information and support you need to build a profitable, effective CX Improvement Program that spans every part of your business.

You'll be able to implement and manage meaningful and profitable change, and grow your bottom line despite a slowing economy. Grab this goldmine of easily adaptable and up-to-date strategies, walk-throughs, trends, technologies, research, suppliers and partners, plus all the supporting arguments you need to build a solid CX strategy.

While most marketers could list maybe a dozen key points for improving their brand's Customer Experience (CX), the researchers and writers at The Marketing Factbook have identified FORTY main 'CX Keys' which will help you drive your customers to new levels of delight, loyalty, advocacy and profitability.

The areas in which customers have direct contact with your organization are perhaps the most obvious places in which CX improvements can be made, and this report addresses all 24 of these 'Direct CX Keys', applicable to offline and online businesses alike.

At the same time there are many other areas that indirectly affect CX (such as the supply chain, policies and processes) in which every business can make simple but far-reaching improvements. This report guides you through the problems and solutions for all 16 of these 'Indirect CX Keys', many of which are often forgotten or under-played even in the best CX strategies.

Get it on Amazon (Kindle/Print)