Customer Loyalty is Like a Box of Chocolates | Loyalty Marketing
Customer loyalty is like a box of chocolates, you never know what you’re going to get. Find out why and get four strategies to up your customer loyalty marketing game.
In the iconic American film, the film’s main character Forest Gump offers up dozens of profound truths, perhaps none so often quoted as this one, “My mama always said, “Life is like a box of chocolates. You never know what you’re gonna get.” Not only is this phrase often quoted, but it is also often adapted, as in this case.
Like life – customer loyalty is like a box of chocolates. You never know what you’re gonna get. While you might not know exactly what your customer loyalty marketing programs will produce, there are actions loyal customers take that you should use to guide outcomes and get more marketing ROI out of your loyalty marketing efforts.
Four out of ten marketing professionals listed improving customer acquisition and retention as their biggest challenge in 2015 (TeraData whitepaper). Despite an abundance of data and consumer behavior science and statistics, the art of acquiring customers and increasing customer retention and customer loyalty rates remains puzzling. For instance, 78% of marketers say they are using data systematically now compared to just 36% in 2013. Marketers who participated in the survey said they were using at least six different types of data to find answers:
- customer service data
- customer satisfaction data
- data usage and behavior
- customer engagement data
- device data
- digital marketing interaction data
Maybe the real insight for marketers is that there is no one answer when it comes to increasing customer loyalty. There is no one motivator, reward or pay off that will resound with each and every customer. Likewise, it’s important to remember that customer loyalty is like a box of chocolates; you never know what you’re gonna get.
Customers demonstrate loyalty to brands in different ways. The key for marketers is to define a variety of actions that are likely a result of increasing brand loyalty among patrons, and use those indicators to guide their loyalty marketing actions.
4 Ways Consumers Demonstrate Customer Loyalty (and 4 Ways to Respond)
Patronage
It’s easy to identify these individuals as loyal customers, because they return again and again. From Amazon Prime shoppers who search amazon.com for products and reviews before shopping anywhere else to the local diner who turns up at the same local café every Tuesday for lunch, these shoppers don’t need to be sold, they need to be appreciated.
Referrals
These individuals might not return as frequently as our first segment, but they do return on a fairly regular basis and often bring other people with them, or are responsible for recommending your business to others who list them as the person you should thank.
Identification
These shoppers are willing to have their name associated with your brand. They are the ones taking selfies, screenshots, pictures of their food, and so on. They are also the people going to online review sites to reward your business with a favorable review or rating. As people who are rewarding your business with recognition, it is something they value, so find ways to recognize them, in return.
Assertion
Customers can be loyal even if they don’t return very often. Examples of this might be people who return infrequently but choose your business for special occasions or when there is risk involved— such as customers who turn to your business when the solution they need is imperative to their life or business. They might not shop frequently, but if asked, readily assert their affinity for your business and will provide social proof, customer feedback and testimonials that can help you win new business. For customers who demonstrate loyalty in this way, consider programs or offers that would result in more frequent visits, especially if you know that cost or distance are impediments to patronage.
4 Customer Loyalty Lessons for Marketers
Customer loyalty is like a box of chocolates. You never know what you’re gonna get. And just like that box of assorted chocolates, marketers can achieve better customer loyalty marketing ROI when they make a customer loyalty diagram that helps them get more of the customer loyalty ‘flavors’ they like the best.
Identify which actions demonstrate customer loyalty.
There could be dozens of actions that shoppers take that indicate they like your brand. By identifying more of these actions, you can then create more individualized marketing campaigns that both reward customers for loyalty and encourage their customer journey to the next level, toward complete brand advocacy and long-term customer loyalty.
Customize loyalty marketing programs around the customer’s love language.
Instead of offering one-size-fits-all loyalty rewards, recognize that customers demonstrate loyalty in different ways, largely because of their own values. It’s like learning what love language your significant other ‘speaks.’ Customers often give in the same way that they value receiving. They are giving you what they perceive to be the best ‘thank you’ they have to offer, because it is the same type of ‘thank you’ they like to receive.
Map next level customer loyalty journeys.
Customers who only return once a year may never become customers who return every week, but there are many other actions you might be able to get them to take that also help with customer acquisition and customer retention strategies. Just as you identify various actions that constitute loyalty, you can also map out customer loyalty journeys with multiple options, and create individualized loyalty marketing campaigns to motivate different types of loyal customers to move to the next level on their loyalty journey.
If you don’t pay attention, someone else might come along and swipe the ones you like most.
Ignoring customers who are demonstrating affinity and brand loyalty is dangerous and leaves the way clear for competitors to come along and take your favorites right out of the box, so to speak. Knowing that customer loyalty and customer retention marketing tactics cost a fraction of customer acquisition marketing tactics should be a strong motivator for you to understand and reward customers for loyalty behaviors, whatever their flavor!
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Elizabeth Kraus is the author of the 2015 Small Business Marketing Calendar, featuring 12 Marketing Ideas Your Mom Would Hate and hundreds of ideas that can help you increase acquisition, retention and loyalty rates among your clients and customers.
This article is a must read for every owner and marketer, especially those that are offline where customers are a face not a data point. The struggle comes from gathering the right type of data; there is raw data that can come from POS systems, online ordering, UBER eats etc and then there is individual data that comes directly from the customer in the form of feedback, online reviews and social media. The former is invaluable as a business tool, the latetr as a platform that allows the business to listen to, and engage with the customer directly.
We now live in a customer-centric economy where the loudest voice is the customers voice and the most successful companies are listening.
Thanks, Marcy – I appreciate your kind words and insights!