How To Measure Your Loyalty Program’s Incremental ROI – vía @cmo_com


Prior to launching a loyalty program, smart marketers build ROI models…

Vía CMO.com
…that forecast incremental profits based on anticipated lifts across three key customer revenue variables: average order size, yearly purchase frequency, and yearly retention rates. These models make assumptions on funding, breakage, and participation rates to estimate results.

ARTICLE HIGHLIGHTS:

  • How can you tell what loyalty members would have spent if no program existed?
  • New customers are a particularly good segment to break out for high-level comparison.
  • The purest way to measure incremental lift is to randomly assign every existing and new customer to a control group.

    Full article 🙂

For example, “Compare Members versus Nonmembers” section, we performed the following analysis:

• Identified every shopper, loyalty program member and nonmember that made at least one purchase over first three months of loyalty program. For the member group, the purchase had to be made within 24 hours of registering for the loyalty program.

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CMO Wake-Up Call: Actionable Insights Await In The Contact Center – thnxz @incontactCMO


Marketers are abuzz over numerous new ways to reach out and engage with customers“.

by Mariann McDonagh. Follow Mariann @incontactCMO

Social media is becoming a mainstay, mobile marketing is surging, and voice-of-the-customer (VoC) research programs are in vogue. Marketers are even setting up command centers to track and analyze online customer feedback. We’re learning how to listen, relate, adjust, and respond to customers in ways we never imagined.

ARTICLE HIGHLIGHTS:

  • The contact center presents a unique opportunity to hear the real voice of the customer.

  • Actual customer conversations are potentially more authentic than research gleaned from controlled studies.

  • Your contact center is on the front line of customer service

    Full article? here 🙂

Happy Campers – Customer Satisfaction & What it Means for Your Business Happy Campers – Customer Satisfaction & What it Means for Your Business

In a recent survey, consumers were asked about important factors in deciding whether or not to do business with a certain company. 98% of respondents said that customer experience was among the top 3 factors.

Investing in customer satisfaction has the potential to produce enormous dividends. In this graphic, we’ll briefly cover customer satisfaction, what happens when you get it wrong, what happens when you get it right, and what you can do about it.


http://blog.kissmetrics.com/happy-campers/

In a recent survey, consumers were asked about important factors in deciding whether or not to do business with a certain company. 98% of respondents said that customer experience was among the top 3 factors.

Investing in customer satisfaction has the potential to produce enormous dividends. In this graphic, we’ll briefly cover customer satisfaction, what happens when you get it wrong, what happens when you get it right, and what you can do about it.

Happy Campers - Customer Satisfaction & What it Means for Your Business

View an enlarged version of this infographic »
Click here to download a .pdf version of this infographic.

Fastest Way to Lose Customers

# 9.5 minutes are spent on average trying to reach a human when trapped in an automated phone system »tweet«
# 61% of consumers take their business to a competitor when they end a business relationship »tweet«
# 71% of consumers have ended their relationship with a company due to poor customer service »tweet«
# Globally, the average value of a lost customer is $243 »tweet«
# $83 billion is the cost of poor customer service in the US »tweet«
# Rookie mistakes on @Twitter can push a customer away »tweet«
# 65% of Fortune 100 global companies utilize @Twitter to engage with the world »tweet«
# Companies focus on acquisition more than customer retention, even though it can cost 7x more to acquire new customers »tweet«
# 63% of marketers felt that new customer acquisition is the most important advertising goal »tweet«


Any business owner will tell you that retaining your customers is low-hanging fruit. Understanding how to create loyal customers so you can retain them is one of the most important things for a business. For starters it’s critical to know the fastest ways to lose customers so you stop making these mistakes and start retaining customers. This graphic highlights the fastest ways to lose customers…Stats You Should Tweet: Leer más “Fastest Way to Lose Customers”

Tainted Love | [Abstract]

In fact, it increasingly feels, to the average person at least, like Corporate America is one giant shell game. If nothing else, there is certainly the perception that obfuscation is generally being practiced, and that few of the activities are to the benefit of the average person on the street. Ultimately, as with any relationship, once the trust disappears, so does the love. Whether its banks, mortgage lenders, insurance companies or oil companies, to name just a few examples, the consumer just isn’t feeling the love at the moment.

Perhaps what’s needed to inject some trust back into the system is a new type of service innovation, one that turns the traditional, business as usual attitude that corporations have on its head. There are already companies that are taking this tack, usually with impressive results. These companies put a premium on the customer experience, at any costs. Employees never need to say, “I’ll have to speak to a manager before I can authorize that”, rather they are empowered to do whatever it takes to fix a situation and to make customers feel valued.


(…)
In fact, it increasingly feels, to the average person at least, like Corporate America is one giant shell game. If nothing else, there is certainly the perception that obfuscation is generally being practiced, and that few of the activities are to the benefit of the average person on the street. Ultimately, as with any relationship, once the trust disappears, so does the love. Whether its banks, mortgage lenders, insurance companies or oil companies, to name just a few examples, the consumer just isn’t feeling the love at the moment.

Perhaps what’s needed to inject some trust back into the system is a new type of service innovation, one that turns the traditional, business as usual attitude that corporations have on its head. There are already companies that are taking this tack, usually with impressive results. These companies put a premium on the customer experience, at any costs. Employees never need to say, “I’ll have to speak to a manager before I can authorize that”, rather they are empowered to do whatever it takes to fix a situation and to make customers feel valued. Leer más “Tainted Love | [Abstract]”

Repeat Business: There’s More of You to Love

Are you familiar with the following concept? It is much easier and more cost effective to sell to existing customers than it is to acquirer a new one. Which one would you rather have? Sell 50 items to 5 people or 50 items to 50 people. When you are designing and tweaking your marketing campaigns, be sure to include your current customer base and maximum their profit potential. Here are several ways to do just that, give your customers a reason to come back for more.

Special Discount Offers

I recently purchased something from an online retailer. When I received my package, I noticed there was a discount coupon inside that I could use on my next purchase. I’m a sucker for coupons and many consumers are. It is a great way to encourage and entice your customers to order again. For best results, the coupon should have a higher discount value than what is normally offered to the general public on sites like Retailmenot.com. The discount should also be a one-time use coupon. This will prevent others from sharing it online and reduce the perceived value.


Post image for Repeat Business: There’s More of You to Love

Curtis Stevens

By Curtis Stevens

Are you familiar with the following concept?  It is much easier and more cost effective to sell to existing customers than it is to acquirer a new one.  Which one would you rather have?  Sell 50 items to 5 people or 50 items to 50 people.  When you are designing and tweaking your marketing campaigns, be sure to include your current customer base and maximum their profit potential.  Here are several ways to do just that, give your customers a reason to come back for more.

Special Discount Offers

I recently purchased something from an online retailer.  When I received my package, I noticed there was a discount coupon inside that I could use on my next purchase.  I’m a sucker for coupons and many consumers are.  It is a great way to encourage and entice your customers to order again.  For best results, the coupon should have a higher discount value than what is normally offered to the general public on sites like Retailmenot.com.  The discount should also be a one-time use coupon.  This will prevent others from sharing it online and reduce the perceived value. Leer más “Repeat Business: There’s More of You to Love”