Public Relations & Social Marketing Insight
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Public Relations & Social Marketing Insight
Social marketing, PR insight & thought leadership - from The PR Coach
Curated by Jeff Domansky
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Scooped by Jeff Domansky
June 29, 2016 4:21 PM
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The State of Loyalty Strategies 2016

The State of Loyalty Strategies 2016 | Public Relations & Social Marketing Insight | Scoop.it

Forrester’s data shows that marketers have their sights set on improving loyalty in 2016. In fact, 80% of marketing decision-makers at large organizations call it a top marketing priority for the next year. And, my recent conversations with loyalty marketers reveal a desire to shift from transactional loyalty to more emotional loyalty. Marketers want a deeper, lasting relationship with customers that tugs on both emotions and purse strings. But are they actually executing on it? We surveyed 60 loyalty marketers from North America to find out.

From a strategy perspective, the marketers we surveyed aspire to, and are investing in, evolving their loyalty programs and initiatives. They turn to loyalty to drive multiple business outcomes, including retaining existing customers (of course), engaging customers, improving customer lifetime value, enriching relationships and even acquiring new customers.

Plus, they are invested in their current approach: literally and figuratively. Nearly 80% of survey respondents indicated that their programs and initiatives are effective at retaining existing customers, and a majority thinks they are effective at boosting customer profitability, improving share of wallet, enriching relationships and enhancing the customer experience. And, the majority of respondents plan to increase investments in important components of advanced loyalty, such as customer experience, analytics,...

Jeff Domansky's insight:

Deeper relationships are a key to successful loyalty programs in the future.

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Scooped by Jeff Domansky
May 10, 2016 9:20 PM
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For free or a fee? Why more retailers are launching premium customer loyalty programs

For free or a fee? Why more retailers are launching premium customer loyalty programs | Public Relations & Social Marketing Insight | Scoop.it

Gary Friedman has a pronounced distaste for discounts. The outspoken Restoration Hardware chairman and CEO blames the retail sector’s reliance on sales and pricing promotions for many of the problems facing the upscale home furnishings chain.

“Much of how we behave promotionally is left over from the Great Recession,” Friedman wrote in a February letter to shareholders published ahead of Restoration Hardware’s disappointing Q4 2015 earnings report. “The multiple sale events and email communications do not reflect the brand we are building, nor are these promotions aligned with how our customers shop with us.”

Restoration Hardware is eliminating traditional promotions altogether in favor of introducing a premium customer rewards program. Priced at $100 per year, its new RH Grey Card offers shoppers a flat 25% savings on all regularly priced merchandise across all of Restoration Hardware’s brands, along with 10% savings on clearance merchandise, complimentary interior design services and reduced interest rates on its RH credit card.

“Our lives are filled with complexity—and we long to break through the clutter to find simplicity,” Friedman said in a press release announcing the RH Grey Card program. “We want to shop for what we want, when we want and receive the greatest value. So rather than navigating countless promotions, we’re changing things… because time is the ultimate luxury.”...

Jeff Domansky's insight:

Keep an eye on the trend to premium customer loyalty programs in retail and e-commerce.

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Scooped by Jeff Domansky
June 1, 2016 5:19 PM
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The Problem With Starbucks' New Loyalty Program | PYMNTS.com

The Problem With Starbucks' New Loyalty Program | PYMNTS.com | Public Relations & Social Marketing Insight | Scoop.it

So why fix something that not only isn’t broken, but which has been the most significant driver of Starbucks’ top and bottom-line growth, according to their CEO (see one of numerous Howard Schultz quotes here)? Because some clever users figured out a way to optimize their spending to get over rewarded.

Starbucks does sell some items priced at around $1, so a user could have spent as little as $30 over 30 visits to achieve Gold status. After reaching that Gold status, that user would be entitled to any of the most expensive drinks on the menu, like a venti Frappuccino, for free — after only 12 more visits totaling a spend of only $12. So in response, the brilliant change Starbucks made to the loyalty program was to make it spend-based. And they also increased the stars-gathered requirement for a free item to about a bazillion stars.

This is broken on so many levels, but there are already enough rants out there about the new loyalty program. What really bugs me is how they missed a few simple points:...

Jeff Domansky's insight:

Good look at how Starbucks broke its leading loyalty program and angered tens of thousands of loyal customers.

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Scooped by Jeff Domansky
March 18, 2016 11:07 PM
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Report: Amazon Prime continues march to world domination | Marketer

Report: Amazon Prime continues march to world domination | Marketer | Public Relations & Social Marketing Insight | Scoop.it

In a recent Investor’s Business Daily article, author Max Cherney outlines how Amazon’s new Prime Now is poised to help the retailer’s Prime loyalty programme “destroy the advantage that Walmart, Target and others hope to gain by offering online orders, in-store pickup and stores as warehouses for online deliveries.” Long considered one of retail’s most effective loyalty programmes with a purported 54 million members, the addition of Prime Now in 26 US markets may put Amazon yet another step ahead of the competition in the multichannel retail wars.

Cherney references a recent Wells Fargo report by analyst Matt Nemer that describes Prime Now as “a move to dominate ‘Need it Now’ shopping. Prime Now, available only to Amazon Prime members in those 26 markets, offers free two-hour shipping on over 30,000 products and one-hour shipping for a $7.99 delivery fee. Money quote from Cherney:

Amazon’s push may eliminate a key advantage of physical retailers — the last-mile convenience of being able to get something immediately. As that advantage disappears, so do other advantages touted by brick-and-mortar stores, such as the ability to pick up an online order quickly at your local store… In the research note, Nemer says that Prime Now, though not currently profitable, helps Amazon retain Prime member loyalty and will, with scale, become profitable.

Wells Fargo isn’t the only analyst bullish on Amazon’s Prime investment. In a recent anal...

Jeff Domansky's insight:

Amazon has built e-commerce's smartest loyalty program and leveraged Amazon prime into huge revenue.

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