DMA Email Lifecycle: Retention - Creating Loyalty Programmes

Creating Loyalty Programmes

Riaz Kanani

Marketing Director, Alchemy Worx

About Alchemy Worx

153Years of experience

10We’ve been around for over a decade

60+Staff focused on email marketing

US/UKBased in Atlanta & London

Alchemy Worx

Setting the Scene

60+% of consumers think that they will be worse off in the next 12 months

71% of marketing directors felt loyalty schemes are more important since the credit crisis started.

Creating Loyalty Programmes

Don’t focus on the device

they don’t create loyalty..

The only way you create true loyalty is by your behaviour over time - do you in a transparent, reliable way, create benefits for people?

Sir Terry Leahy, former Chief-Executive of Tesco plc

Collect and Analyse Data

• Start small – and test• Quality is critical

– assign a confidence level to each data point

• Define customer types• Identify potential touch points• Don’t ask for too much!

VS

+

Touch points

• Weekly newsletter

• Milestone triggers

– birthday, renewals, points total

• Behaviour triggers

– purchase, reviews, website/store visit

• Statements

Tailored Emails

Tailored Emails

Content

• Content should draw members to the

brand by adding perceived value

• Interaction focused..

– but don’t forget the brand impact

• Incorporate member data into all your

emails

Aviva

Aim: Encourage

engagement with

email through

value-added

content

Audience:

Customers and

prospects

Focus: Brand

Subject Lines

Riaz. Here's this month's silver tier O2 Rewards update. Full of offers you won't want to miss

Short - Ambiguous or Misleading

“Summer starts here”

CTO Rate = 7%

Open rate 75%

Relevant Customers

10%

Click Rate 5.25%

Long - Multiple Proposition

“50% off Nike trainers; the latest from Wimbledon, Plus your chance to win a spa weekend”

CTO Rate = 28.5%

Open rate 35%

Relevant Customer Group A

10%

Click Rate 10%

Relevant Customer Group B

10%

Measure

• Remember loyalty metrics– Learning Curve– Frequency– Decay

• Track key email metrics– Reach and Frequency– Revenue

• direct and indirect

Reach vs Open

Market Research: Surveys

• Exchange value for more information

• Compare behaviour with response

• Filter results back into the programme

Leverage other channels

• Email is the glue

• Use to:– Drive offline traffic– Drive website interaction– Promote mobile apps– Promote Social Channels

• Use each interaction as an opportunity to learn more

Rewards

• Tailor rewards to your audience

• Understand which one is best

• Timely communication(test)

Rewarding email interaction

In summary• Clearly identify programme benefits• Identify key pieces of (accurate) data and

email touch points• Track your key success metrics• Use market research and behaviour to

iterate• Leverage all channels to both drive

interaction and engagement– but also to learn more and improve

• Adjust rewards messaging based on the individual

@alchemyworx @riazkanani

rkanani@alchemyworx.com

020 7025 2112

Thank You.

Questions?