Are Customers Loyal? The Emotional Framework Part 3

548
Photo by Tirachard Kumtanom from Pexels

By: Yayu Javier

Conversion Influencers

In my last article on The Emotional Framework Part 2, I have shared by Framework which I am showing again below as reference to those who were not able to read my last article.

Note: Loyalty Emotional Framework can only be used or re-published with the permission of the author, Maria Luz Javier.

As mentioned these modules have to work cross-functionally, in this article I want to cover Conversion and how to achieve better results.

We also mentioned in the last article on the importance of the Customer Journey.  It is therefore important to understand the specific touch points we can use so we can communicate with our customer or consumer at the right time, right place and right channel.

After the Search

When the customer already has the options in front of him whether via online, at the store, or attending an event, the frontliner or the online chat facility, the e-commerce site plays an important in making that last sales pitch.  For loyalty programs, the frontliner contributes to 70% of the decision making. A loyalty program is highly influential in upselling by enticing them to buy more to become a member or earn more points.

Campaigns by Touch Points for Better Conversion

The use of CRM campaigns is very important to seek every opportunity to upsell and cross-sell.  This can only happen if we know the interests or need of our customer or consumers and we have to provide every opportunity to fulfill that interest or need. Sometimes a need can be situational such as maximizing a Father’s Day celebration to increase purchase.

Create a Reason to Celebrate

In one of my talks, someone asked me how to increase the sales of a product which is only bought during Christmas and other special occasions.  A very simple answer to this is to create the occasions at every opportunity or even every day so that there is always something to celebrate and therefore a need to buy your product.  Some examples of celebrations are passing an exam, winning a pitch, learning how to bike, or simply seeing an old friend.

Own an Occasion

Another example to create triggers is to own occasions that can be attached to your product.  For example you can own Wedding Anniversaries and create a website that gives couples templates, gifts, parties, menus, best anniversary getaways, albums, and much more.  This would be a great occasion for products like gift shops, resorts, cameras, to name a few.

Cross –Sell and Upsell Based on Purchase

Data on purchase behavior is a very strong information to be able to upsell or cross-sell.   If your customer for instance has bought a beauty product for dry skin, it would be a great opportunity to cross-sell other products related to improving dry skin.  Many communications don’t work only because we are not sending the right offers to the right people.

Timing is also very important.  It would be great if your campaign management system will automatically send an offer the minute you happen to pass by the store and the offer is good if availed within the hour.  This is what we call geo-based triggers and can be implemented using blue-tooth or check-ins.

Touch Points Response

Response to a communications is ultimately measured not just by responding to a campaign but also how much the customer purchased versus investment in the communications.    This is what we refer to as the Acquisition Cost.  A simple formula below demonstrates this:

                                     CLV

Value   =                              ______________

                                              Acquisition Cost

If a customer purchased a camera bag for Php5,000 because of a cross-selling initiative through EDM and it cost Php1,000 per customer to implement the Electronic Direct Mail, your Value Ratio would be 5, which is very good as it suggests a high return of investment.

Measuring the Acquisition Cost per campaign is an effective way to determine which of your campaigns have actually worked and can do again or improve on or discontinue.

Creating Advocates through Campaigns

Providing the venue to have more brand advocates is another strategy you can implement.  Some of the campaigns that we have done in the past is providing perks or benefits to customers who post and whose post are shared or liked by the other members.  This will automatically make your customers your brand ambassadors and increase the authenticity of your brand.

Keep the love burning with your customers!

About the Author:

Yayu Javier is the President and COO of Avanza, Inc., who has acquired more than 20 years experience in loyalty and customer relationship marketing and has extensive exposure in various industries such as retail, consumer goods, banking, and institutional products.

 

*First published on Philippine Retailing newsletter.