Loyalty program Tag

[caption id="" align="alignright" width="239" caption="Image via Wikipedia"]Different customer loyality cards (airlines, c...[/caption]
When considering customer experience, the best model is that of an hourglass, not a funnel.  In a webinar hosted by Crowd Factory, Altimeter Group’s Jeremiah Owyang cited Joseph Jaffe’s book “Flip the Funnel,” which posits that many companies spend all their time and energy on trying to lure customers to the point of purchase — and then stop investing in those customers once the transaction has been made. Owyang said an hourglass model, which places value on customers both before and after the purchase, can help grow a company’s customer base by gaining customer loyalty and promoting customer advocacy. “Individual efforts result in an incomplete customer experience,” Owyang said, referring to a diagram that shows a seven-level customer life cycle. Some of his key points for each phase:
  • Use paid media to fuel awareness. If a pre-existing online community or social site can suit your needs, don’t waste time coming up with a new one.
  • Foster an environment for customer consideration. Many consumers swear

In its infancy, advertising was an interruption. Ads were part of the price of watching TV or flipping through a magazine. More recently, brands have experimented with ways to make their messages desirable in their own right, via social engagement and branded content. But at a Social Media Week event at the Time-Life Building in New York City this month, Gabe Zichermann argued that in the future, brands will use game mechanics to go beyond just getting a customer’s attention. Instead, they will make themselves a part of the rhythm of their customers’ lives. Games are “a process, not a destination,” Zichermann argued. Zichermann said he defines “gamification” as the use of game mechanics and game-based thinking to solve problems and create user engagement. But more broadly, he explains, a solid game-based marketing program is really just the final incarnation of the loyalty programs businesses have been using for almost 200 years. In the first phase of loyalty programs, customers were given free merchandise for buying a set amount of product. Think of those cards that promise you a free pizza after you buy nine pizzas at the regular price. These are still the most common form of loyalty program, he says, but they’re not the most effective. They tend to offer incentives