Loyalty Solutions and their Impact on Businesses

by Natasha Ambavle |

Loyalty Solutions and their Impact on Businesses

loyalty solutions

What do Reebok, Starbucks, and IKEA have in common? All are leading players in their respective industries, and each has a strong brand following. That powerful brand loyalty distinguishes them and puts them way ahead of their competition, giving the brand an almost cultlike status in some markets. Thanks to their highly efficient loyalty solutions, … Read more

Everything You Need to Know About Loyalty Applications

Loyalty Applications

Brand loyalty, customer loyalty, and loyalty programs are commonly mentioned terms in modern-day marketing. Loyalty programs, overall, are based on incentive theory, which suggests that behavior is motivated by a desire for reinforcement or incentives. The psychological effect loyalty and reward programs have on customers is one of the prime reasons these remain valid and … Read more

Building Customer Loyalty in 2021-22

In a fast-changing world, where customers are exposed to numerous brands and products each day, surviving and thriving in this competitive era has become a bigger challenge. While customer acquisition may help with business expansion, loyal customers will help the brand sail through the sea of rivals and create a distinct identity of the brand … Read more

Customer Loyalty Cards Encourage Customers to Return Back

Customer Loyalty Cards

Visit any coffee shop or a book store, and they will offer you customer loyalty cards at the checkout as a souvenir gift. They label it as a token of appreciation for visiting the store or chain, of course, but they are a very important piece of the puzzle in the marketing strategy. Your wallet … Read more

A Comprehensive Guide To Bank Loyalty Programs : Best Features & Examples Included

Bank Loyalty Program

Bank Loyalty Program, or bank rewards program, enables banks to effectively reward and incentivize customers. As per a study, 81% of modern banking customers expect incentives either in form of bank loyalty programs or as signup bonuses. It clearly indicates the sheer essence of having a bank loyalty program in place for your customers to … Read more

5 Best Restaurant Loyalty Programs to Seamlessly Draw Customers

restaurant loyalty programs

A restaurant’s revenue growth primarily depends on the number of its returning customers as these loyal customers spend more, thereby generating larger revenue for the restaurant business. However, keeping the customers coming back to your restaurant demands a little extra effort, the most logical move being implementation of well-structured restaurant loyalty programs. In this blog post, … Read more

Kroger: the Grocery, Retail, and CPG Powerhouse

Kroger

When you think of mass retail powerhouses, behemoths like Walmart, Amazon, and Target tend to be top of mind, ubiquitously associated with everything from groceries, apparel, beauty and home goods. One name that might not pop up as readily? Kroger. Kroger is arguably America’s most underrated grocery store with an estimated 2,764 stores nationwide. Reporting $121.2 … Read more

Watch Chief Strategist Al Lalani Present Key Insights on Mobile & Omni-Channel

etail west 2019

Annex Cloud’s Chief Strategist Al Lalani as he presents on Omni-Channel Moments at eTail West 2019 This last week the Annex Cloud Events team went on the road to eTail West 2019 in Palm Springs! As usual, our chief strategist Al Lalani was heavily involved in speaker discussions and thought leadership. On Day 2, he … Read more

Have You Planned Your 2019 Customer Loyalty Strategy Yet?

customer loyalty 2019

They say the sales results you see in Q4 come from the work you do in Q1. With the new year right around the corner, retailers everywhere are finalizing their strategy. Perhaps you’re considering a customer loyalty program or you have one but want to see more growth. Have you and your team implemented a … Read more

Inside the Industry’s Best Customer Loyalty Programs

Best Customer Loyalty Programs

Are you looking to implement a Best customer loyalty programs within your business or improve your existing Best customer loyalty programs? You may be scratching your head at how industry-leading companies like Costco, Verizon and Sephora can maintain outrageously high customer retention rates while simultaneously keeping customer satisfaction high. There may seem to be a great … Read more

How to Add Artificial Intelligence to your Customer Loyalty Strategy

artificial intelligence

It is becoming increasingly difficult to reach incentive program customers through ecommerce. Consumers are being bombarded by messaging across every conceivable channel. Even the smallest and most distant competitors can challenge your business with fewer barriers to enter the marketplace. To make matters worse, consumer trust in brands and institutions is at an all-time low. In … Read more

White Paper: How to Surprise & Delight Your Customers with Loyalty

surprise & delight customer loyalty

Every retail and ecommerce brand has asked themselves the same question at one point: How do we surprise and delight our customers? The answer isn’t a simple one, as consumers are becoming savvier about which marketing tactics are being used to pique their interest. In fact, economic trends show that overall consumer trust is declining among institutions … Read more

Ask an Expert: MacKenzie-Childs’ CMO Speaks Customer Loyalty

mackenzie-childs marketing

Welcome to our new segment, Ask an Expert! With this series, Annex Cloud interviews some prominent figures in ecommerce and retail to gain insight on industry trends. This week, we interviewed Larry Shaw, Chief Marketing Officer of MacKenzie-Childs. Since 1983, MacKenzie-Childs has designed home decor and artisan furnishings in their quaint farmhouse in Aurora, NY. Every teapot is hand-painted and each clay cookie jar is carefully molded. We worked with Larry on building their trulyMC customer loyalty program, and this is what he had to say:

What is the single greatest inspiration behind the trulyMC loyalty program?

Every year we have a live barn sale where over 25,000 of our most devoted customers visit our farm in Aurora. These people have so much passion for what we do so we wanted to take that experience and apply it on a grander scale. By implementing trulyMC, we were able to begin building and shaping that community.

Larry has over 25 years of retail experience and has implemented many creative initiatives since joining the MacKenzie-Childs team as CMO in 2016. Their branding is built on the quality and craftsmanship of the pieces they sell. They built a powerful marketing strategy behind their products with three retail stores, an ecommerce site, and a strong social media presence. However, adding a tiered customer loyalty program has been a total game changer for them.

What effect has loyalty had on your customer retention efforts?

After only eight months of implementing our omni-channel loyalty program with referral marketing, we’re already seeing a 9-10% increase in our customer retention rate. To see those numbers so quickly has been remarkable for us.

In addition to the increase in retention rate, they also saw major increases in average order value, new content subscribers, and purchase frequency. So much so that we decided to co-author the MacKenzie-Childs Loyalty Case Study with them, which dives into how we built the program and why we saw so much success.

mackenzie-childs trulymc loyalty programHow do you think Annex Cloud has helped you reach your goals?

Annex Cloud has been willing to customize their platform and processes to accommodate our specific program needs. It being a tiered customer loyalty program, we knew it would require some customized features. But instead of seeing it as a negative, Annex Cloud saw it as good challenge.

To dive more into how we helped MacKenzie-Childs build more loyalty with their customers, check out our case study! Annex Cloud’s unified platform with customer loyalty, user-generated content, and referral marketing functionality allows brands to customize their programs to their unique specifications. To learn how Annex Cloud can help you with your customer loyalty needs, contact us for a free consultation!

 

Why Your Ecommerce Sales Strategy is Incomplete Without a Customer Loyalty Solution

Customer Loyalty

Once upon a time, an ecommerce company could get away with just a simple website that sold products. Then one day the industry progressed to the point that we all needed to incorporate an email service provider. And now, we have Amazon, Walmart.com, and the other retail powerhouses creating new standards for ecommerce fulfillment, price, and service. According to TechCrunch, Amazon accounts for 49% of all ecommerce sales. The closest competitor is eBay with 5% of total ecommerce transactions. This chaotic battle for market share has forced other retailers to get creative with how they use customer loyalty to incentivize their customers.

Ecommerce SalesThe Amazon Effect:

In 2017, Amazon saw $177 billion in sales revenue. This year, they’re projected to clear $258 billion. Features like Q&A, item comparison, and peer reviews have forced smaller retailers to get creative with their own user experience.

They also built one of the most unique customer loyalty programs in retail history. With its innovative paid loyalty model, Amazon Prime has changed the way millions of us shop each year. It’s also very diverse in scope, as Prime subscription benefits can range from free two-day shipping to streaming thousands of movies. And now that Amazon has acquired Whole Foods, it’s become that much more convenient for the customer. And to think it all started with books…

The Issues:

With the dominance of the third party aggregators like Amazon, Google Shop, and Walmart.com, it’s becoming harder and harder to keep a consumer’s attention. So many factors come into play on why this is such a problem.

Distractions:

When your products are being advertised on third party sites, they’re being compared apples-to-apples against hundreds of similar products. Google Shop’s comparison tool places the most relevant goods with the best price right next to your products. Not only that, but customers are channel-hopping across various ecommerce sites, social media, and other sources to get as much information as possible about your product. According to a study done by CommerceHub, 86% of purchasers change channels when buying online. So if your reviews, Q&A, and product descriptions don’t check out, your potential customer has a lot of other options to choose from.

Trust:

customer loyaltyThe cost of acquisition is currently higher than the cost of inflation, a detrimental stat for marketers and ecommerce professionals. This is attributed to lack of trust in retailers and institutions in general. “The trust that consumers have in brands is going down tremendously,” stated Al Lalani, Chief Strategist of Annex Cloud. “Customers are researching more and looking for peer reviews across many channels, thus increasing the acquisition cost of that customer.”

The Solutions:

Though there is no one simple solution to this problem, there are a few strategies that can help your brand better position itself against the competition.

Omni-channel:

It’s so vital for a brand to have a strong presence across all industry-related platforms. That includes a great ecommerce store, third party aggregators, mobile devices, and social media. Once a customer is acquired through a good omni-channel campaign, it’s important to incentivize them to return for future purchases. This is done with omni-channel loyalty. Say you’re a shoe manufacturer and a customer just purchased your shoes on Amazon. Because advertising on Amazon means more cost to you and more distraction to your customer, it’s in your best interest to convince the customer to purchase from you directly in the future. This can be done by incentivizing the consumer with offers like $10 off their next shoe purchase or offering free socks with each purchase.

Retention Through Customer Loyalty:

No matter how you acquire a customer, it’s important to make them want to buy from you again. The cost of acquiring a customer is greater than the cost of retaining a customer, so incentivizing right after the initial point of purchase is your best chance of nurturing that relationship. According to Ciceron, a satisfied customer will contribute on average 14x more revenue to a business compared to a dissatisfied customer. It’s about not only rewarding after a purchase, but incentivizing them when they take actions like posting photos with your products. It’s about breaking out of the points-for-purchase model and building a real community around your brand. When you cater to your customers, they gain a sense of inclusion and are more likely to purchase in the future.

Annex Cloud helps bridge the gap between retailer and consumer. By working with the retailer and creating a custom loyalty solution, we generally see an increased average order value and decreased cost of retention. The old days of getting by on an ecommerce site alone are behind us. It’s an absolute necessity for retailers to incentivize their customers with customer loyalty. If you either don’t have a loyalty program or you just want to get more out of your program, contact us and we’ll be sure to help you out!

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