Where Does Snapchat Fit in The World of eCommerce?

snapchat

Earlier this week, Snapchat announced it is seeking a new round of funding that would value the company at $19 billion. This is a huge increase from it’s 2014 round of funding that valued the company at $10 billion. To put this new potential value in perspective, if the deal goes through it would make Snapchat the third most valuable venture-backed company in the world.
With only 12% of snaps being shared with more than one person, Snapchat maintains it is not a social networking service, instead emphasizing it is a messaging app. 100 million monthly active users, 400 million snaps per day, and 29.4 percent of Apple iPhone users engaging with the  messaging app, demonstrates Snapchat’s massive growth. And this growth begs the question, how can retailers use Snapchat to engage and advertise with their customers? And is it worth it?

Organic reach is still an option on Snapchat, possibly giving it some traction with marketers above other networks like Facebook. However, the nature of its organic advertising is very different. It is a 1:1 messaging service so there is no room for growth in terms of utilizing a consumers network. It also requires active engagement because in order to watch the content, a customer has to hold a button down.

This presents both challenges and benefits for advertisers. It forces retailers who utilize Snapchat to work harder on their content because to make it successful they have to make their customers want to see their advertisements. However, for the consumers they do manage to engage it is reasonable to assume they are more valuable because they are demonstrating an interest by opting in instead of just scrolling past it on their newsfeed.

Snapchat has also started to offer paid advertising, but the jury is still out on its success. It offers little in the way of analytics and ROI and in some instances seems ridiculously overpriced. However, the release of the “Discover” feature in January may bring some traction. By introducing content from reputable sources like National Geographic, Yahoo News, Comedy Central and CNN, Snapchat seems to be moving away from its messaging app branding. This might give it more flexibility in working with retailers and companies and displaying advertising.

Snapchat is a new and strange player in the world of mobile apps and social media. It gained a lot of popularity very quickly and is looking to monetize on that. But it still has some work left to do if it really wants to become more than a fad. It needs to figure out what it wants to be; a messaging app, a news curation source, a social network? And in order to make retailers and brands stick around it needs to find a way to bring in more user data and analytics.

10 Reasons To Choose Annex Cloud Loyalty Programs

Customer Loyalty Icon

A robust, full-featured, complete Social-enabled customer loyalty program helps to increase your customer’s lifetime value, build brand recognition, increase conversion rates, and grow your brand advocates. Below are the top ten reasons to choose Annex Cloud Customer Loyalty suite for your business.

Reasons to choose Annex Cloud Customer Loyalty

Loyalty Calculator determines point & incentive structure for optimal success

The Loyalty Calculator uses aggregated data from comparable Annex Cloud loyalty customers and your company’s current KPIs to create a predictable, profitable loyalty program. Be confident your loyalty investment yield a positive ROI in month one.

Omni-channel solution across all marketing channels

Designed to reach customers consistently at every level, Annex Cloud Customer Loyalty solution provides customers with unique and rewarding experience while they shop online, check out in store, speak with customer service over the phone, connect on mobile apps and across Social networks. Whether points are being redeemed at a brick and mortar location, a customer service representative is awarding points over the phone, or when a fan comments on Facebook. Annex Cloud will track all these actions and many more to ensure the loyalty rewards are managed properly.

Fully managed services keep your program optimized

A dedicated Client Success Manager and an Implementation Architect share best practices to form a strategic plan, keep your loyalty programs from getting stalled in your development queue, and provide regular reports and updates. A Design Lead ensures all Loyalty dashboards and tools have correct branding across the board. A Social Media Manager ensures that social engagement remains high and one step ahead of your competitors. A true fully managed solution keeps marketers a headache free and in the driver’s seat.

Customized Loyalty solution for a personalized user experience

From rewards, perks, badges, incentives, to onsite and offsite actions, Annex Cloud Customer Loyalty programs are 100% customizable. No two loyalty strategies are identical because no two companies are the same. Run double point days, create discrete badge and rewards systems, associate points with product SKUs and use Annex Cloud’s design resources to create fully branded customer facing dashboard.

Customizable customer actions ensure that you continue to differentiate your business

Don’t be confined to preset actions with other standard loyalty programs. The Annex Cloud RESTful API allows companies to create unlimited actions based on purchase behavior, engagement, social actions, offsite actions, in-store actions and more. Reward your customers for valuable actions at every level.

Pre-built with advanced segmentation strategies & multiple action triggers

Annex Cloud Customer Loyalty easily integrates with existing Email Service Providers (ESP), CRM systems and Marketing Automation systems for deeper segmentation based on loyalty actions as well as triggered emails based on purchase behavior, inactivity, and more. Continue to strengthen your customers’ loyalty with user-based and product segmentation. Easily schedule advanced double point events to coincide with seasonal promotions or to advertise specific products or a brand..

Create actionable re-marketing campaigns with Social data

Feed data from your Customer Loyalty program and social commerce tools into your marketing analytics software to keep reporting and strategy unified. Seamlessly integrate with existing email service providers including ExactTarget, Silverpop, MailChimp, as well as analytics software, including Google Analytics, Disqus, and Salesforce.

Expand beyond Customer Loyalty and enhance your Social shopping strategy

Customer Loyalty exists within the Annex Cloud social commerce ecosystem, containing more than 27 other tools designed to drive revenue from Social. Offer loyalty rewards to customers for referring friends, for registering and logging in using Social Media integration, or for entering a photo upload contest. The possibilities are limitless. The Annex Cloud analytics dashboard aggregates reporting from various products, so you can see the entire customer journey from start to finish and easily assess the true value of every aspect of your social commerce platform.

Powerful dashboard with ROI focused reporting and analytics

Good reporting should highlight how your loyalty program has affected repeat purchases, conversion rates, average order values, referral orders, and ultimately customer lifetime value. Know exactly how much incremental revenue is the result of your investment in your customer loyalty program.

Take advantage of Annex Cloud’s years of experience and knowledge of eCommerce best practices

Annex Cloud has compiled eCommerce best practices from implementing client loyalty programs across a wide variety of customers demographics and products. Every customer loyalty engagement starts with clear goals set by our clients and is guided with eCommerce best practices. Companies innovate in their loyalty programs as a differentiating factor. Annex Cloud’s customer implementation and success teams work with each of our clients to design a Loyalty program just right for their business model, customer base and revenue goals.

Best Practices for Loyalty Programs in Ecommerce

loyalty program for ecommerce

An effective loyalty strategy will offer the customer plenty of choices  in order to learn more about what their personal preferences are. Providing points based on signing up for a newsletter or sharing your experience on social media can generate a wealth of insights.

Should Be About The Customer

Organizations should manage their loyalty programs around their customers and not their products. Organize your loyalty programs based on around data collected around certain customer segments. Measure the impact of these programs and use them to help improve the loyalty program of the customers in each segment.

Create A Simple Earning Structure

It is important that that the earning structure should be easy for your customers to understand. a simple earning structure doesn’t have to be only about points. It should also be about earning badges or collecting buttons. Once they earn enough badges they can earn some type of reward, whether a percentage of money or a product or service.  Consider adding bonus opportunities to earning structures such as trying out new products or reaching a threshold of purchases. Bonus opportunities should be done on a limited basis to keep it fresh and exciting for your customers. Another benefit is it facilitates ongoing customer engagement.

Facilitate Brand Engagement

Loyalty programs offer a mix of watching videos, leaving reviews and interaction between other members. The important thing is to make it fun for members and allow your customers the opportunity to interact as well as learn more about your brand. Simple engagement opportunities can be more appealing to certain customers than earning discounts or rewards.

Triggered Communication Plan

Have a targeted communication strategy in place for your customers such as a message that a customer receives upon doing something specific such as achieving a higher level or tied to a specific event such as a birthday.  A targeted message to a specific customer carries much more weight than a typical mass market message. By recognizing the achievement or the anniversary of the customer is a great strategy that helps your customers feel that they are important to your brand.

Provide Status Updates

Status updates are one of the most effective ways to keep customs engaged in your loyalty strategy. This is similar to the emails we all get from our credit card loyalty programs that present our current points level. Customers will appreciate being updated on the program or the brand. Not only does this keep your brand in their mind, it also leads to some type of interaction where they can redeem rewards or end up making a purchase.

 

Creating a Powerful Loyalty Platform in 10 steps

Developing online loyalty programs that ensures a successful outcome can be hard, but at Annex Cloud we’ve determined 10 crucial steps that help our clients build out a powerful, customer-centric loyalty solution. Segment for maximum effectiveness Loyalty programs are not one size fit all; treat your customers differently based on their engagement level, demographics and … Read more

Top 6 Most Common Loyalty Mistakes Marketers Make

loyalty

Customer loyalty programs can be extremely successful with huge benefits to your brand as well as your customers. But loyalty programs are complex and can fail when not executed properly. We’ve rounded up the top 6 most common mistakes marketers make when developing a customer loyalty program and solutions for avoiding them. Treating all customers … Read more

The Secret to Consistent Growth: Churn Management through Loyalty

A more crowded online marketplace with less barriers to entry and shoppers who are more comfortable buying from new online retailers make continued growth and maintaining market share more difficult than it has ever been. Growing traffic and increasing new customer acquisition are obvious factors to growth, but managing churn can be easier and have … Read more

Overcoming the Discount Addiction with Loyalty

Discounts are not a win-win. Customers may be drawn in and business may boom, but it’s very short lived. The conversions come at high costs and retention is basically non-existent. eCommerce has been democratized by discount giants like eBay and Amazon. Consumers are increasingly comparison shopping, even while they are instore. How can you combat … Read more

Why Every Business Needs a Loyalty Program

loyalty programs

It costs 6-7 times more to acquire a new customer than retain an existing one. You may have heard this already, but not every business is taking advantage of this well-known fact. From 2008-2012, loyalty programs grew by 10% each year. Steadily gaining popularity, loyalty programs benefit businesses of any kind. Whether you are an … Read more

Build Lifetime Brand Advocates [Infographic]

brand advocates

Conversion and acquisition are key metrics to any lucrative business, but mastering the art of retention is the ultimate indicator of success. Why does retention matter you ask? 80% of future revenue comes from just 20% of existing customers! While it certainly can be a challenge, it is possible to transform customers into brand advocates in 3 steps with the … Read more

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