In a previous post, we talked about the 5 steps to effectively building consumer relationships. Now, let’s talk more about the marketing tools. Before we design any marketing programs, we start with a goal. An easy place is to start with a welcome program. Avoid the tendency to start by saying “I need a welcome email”. Rather, commit to the idea that I should have a welcome message with a goal. Let’s say that the goal of the welcome message is to get consumers to try the product. Let’s be bold and say we want a 30% order rate.
Now we can start thinking about what offers to create that might entice the consumer to try. Is cents off the right offer and what is the optimum value? Maybe offering a premium with purchase is the way to go? Remember your goal and create compelling offers!
Next, start thinking about how many messages are needed to reach the goal. Is five the right number of touches to explain the product or proposition? Can it be done in three? At a minimum it should be two: the initial welcome and a reminder because consumers open marketing messages and intend to participate but then get sidetracked. Sending a reminder allows those consumers another chance to engage.
Notice, we’ve avoided saying email, direct mail, text message so far. The channel we use to deliver the message should ideally be dictated by the consumer. You can start with the contact variables you have the most complete. No sense in designing an SMS program if you have no mobile numbers.
Also, some channels are better for delivering some messages. Maybe a mix of emails followed up with a direct mail piece that drives them to retail is the best way to go? Maybe a social media message is the right way to start a conversation and follow up with an email offer?
Create Compelling Conversion Programs
For most companies, getting the consumer to purchase the product the first time is just the start. We need consumers to purchase our product regularly instead of our competitors. To do this we need to understand how consumers form preferences for brands. Is it solely a functional benefit of the product or service? Or does using a particular brand say something about who I am and how I want to be perceived? There is no right or wrong answer here. Pick one. Then decide what a loyal consumer looks like.
Next, set a goal. Why not 30% conversion rate? Not high enough? Make it 50%.
Now you are ready to build a conversion program. Reinforce at least four to five purchase decisions. The frequency of purchase decisions determines the length of the program and the time between messages. One great message isn’t enough. You need steady reinforcement. Think about telling a story with several chapters. Establish the characters at first by focusing on product benefits. Next move on to how this product is better for the environment or better for the consumer. Next talk about developing a community by showing that we are listening. Talk about how we developed our latest line extension after learning something from our customers.
Every communication should have ways for consumer to engage. After all, this is a relationship and good relationships are based on listening and understanding.
Again, notice that we’ve avoided specific tactics and channels and are focused on messaging. Think about making the earlier offers more lucrative and the later ones more relational. Once you’ve designed what you want to say and what offers you want to present, then you are ready to overlay the right channels and tactics to optimize the conversion.
Hold On To Your Loyal Consumers
Most brands lose money trying to attract new consumers and make money on their existing customers. But let’s not forget that it is much more expensive to get a new customer than it is to keep one you already have.
The keys to retaining your loyal consumers are:
· make sure that you are truly dedicated to a quality product (or service),
· back up your products or service with great support
· look for opportunities to show your appreciation
With our clients, we have been able to prove that investing wisely in customer retention programs reduces the defection rate dramatically.
Having great products is obviously most important. If your offering exceeds customer’s expectations you will continue to build brand equity with each interaction.
When we talk about providing great support we mean having easy ways for customers to reach you (800 numbers, customer service email, text support). It also means have people managing those contacts with the purpose of addressing customer issues and not committed to getting off the phone as quickly as possible. It also means admitting when you’ve done something wrong and committing to making it right.
The best way to show appreciation is to periodically thank customers for their loyalty and encourage them to share their ideas on how to make the product better. Sending thanks with a token offer is also a great idea on birthdays, first purchase anniversaries, holidays or whatever works with the personality of your brand. You don’t have to spend much, but what you spend here keeps loyal folks purchasing.
Check out this post to learn more about the 5 Steps to Build Consumer Relationships.