Customer Loyalty: Beyond Likes, Tweets & Shares
Sumedha Chatterjee
Loyalty, Now? You Must Be Crazy!
•Marketing myopia—Loyalty is increasingly being interpreted as “likes” “follows”, and “re-tweets.”
•Marketers need to step back and assess how many of these metrics are actually adding to/creating business value.
•In the era of “fluid fingers”, how do marketers build loyalty?
•Here, we examine what works (most of the times!) and what does not.
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013
Loyalty: Why Is It a Digital Dilemma?
•Instead of 1:1 conversations that matter, marketers chase scalable, automated & impersonal loyalty models that contribute more to the digital pandemonium.
•Focus should be on delivering a “people-centric” loyalty experience on digital, & not a faceless/lifeless loyalty program.
•Conversions are easier to accomplish & track. Traversing the path from conversions to loyalty is the marketing equivalent of a Mount-Etna-esque walk.
Source: http://bit.ly/14aHxmL
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013
Lessons Learnt: The Hard Way & Otherwise
How digital helps build loyalty?
•Engagement•Conversations•Share -of-heart vs mind
How digital deceives?
•Tracking vanity metrics•Economic value of a “like”•Crystal balling
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013
How Digital Helps Build Loyalty?
How Digital Loyalty Helps—Engagement
Engagement First:
Social is good for:
― conversations―initiating dialogue― challenging viewpoints―engaging audience
Marketing Memo: Extending the audience’s love for the brand on social to extrapolation of their purchase probability, might be, in some cases, extreme.
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013
How Digital Loyalty Helps—Engagement
Your brand story
Converse and engage here
Refrain from “selling first,” help people connect around a shared idea or a brand that they love
Build conversations & dialogue, quit social extrapolation
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013
How Digital Loyalty Helps—Influence
The Social Influencer:
Social is good for:
―a deep dive into the influencer sea― identifying relevant product ambassadors & their sphere of influence― golden triangle: 1-9-90 principle of social
Marketing Memo: Identify your best friends—your brand advocates , the 1-9-90 principle helps in deciding the marketing consideration for each of them.
Source: http://slidesha.re/110oOoH
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013
How Digital Loyalty Helps—Influence
1
9 90
The Big Fish•Popular on digital media•Everyone covets them•Hard to “acquire”•Marketing consideration: engage in 1:1 digital dialogues
The Niche Experts•Wield considerable influence among small focused circles•Marketing consideration: relevance
The Slient Majority•Just there•Marketing consideration: visibility
Use each marketing consideration set to build loyalty onlineCustomer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013
How Digital Loyalty Helps—Mind & Heart
10,000+ likes on facebook?
― what does that translate into for me?― is it valuable at all?― are these attitudinal loyalists? If yes, persevere, because share-of-heart precedes share-of-wallet.―but beware, don’t obsess over likes & re-tweets
Marketing Memo: Identify what does a “like” mean to you—social PR, a good-to-have indicator of your brand image, a must-have metric or digital drivel. If “likes” matter to you, focus on getting the heart first, the mind and the wallet follows.
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013
How Digital Loyalty Helps—Mind & Heart
Source: http://bit.ly/11uUpQq
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013
versus
Millenials Trust People Over BrandsThey buy with others’ inputs & seek brand
engagementTherefore, your customer opinions are your headlines
& share-of-voice your marketing stories
How Digital Deceives?
How Digital Loyalty Tricks—Stop Tracking Vanity Metrics
Are you tracking vanity metrics?
― “100 shares doesn't necessarily mean 100 sales—and it certainly doesn't measure the potential value of those 100 shares”― Most marketers don’t have the tools to correlate these digital metrics to a potential sales pipeline.―Likes are good, but that’s what they just are. Good, not good enough.
Marketing Memo: Identify the incremental value generated versus the time spent in tracking these metrics. Don’t invest resources in an activity with no scientifically justifiable sales correlation.
Source: http://on.mash.to/16oj80s, http://onforb.es/13xUXs7, http://onforb.es/11b9vL0
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013
How Digital Loyalty Tricks—Stop Tracking Vanity Metrics
$$
Leads
LeadsLeads
Vanity metrics
What incremental value is being generated by tracking these metrics &
how strongly are these correlated to the sales pipeline?
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013
How Digital Loyalty Tricks—Economic Value of a “Like”
Beware of digital intoxication!
―Tetra-trillions of sub-optimal data is created purely through social media,but there is very little assessment of the economic value of such data―How strongly is loyalty correlated at all to the marketing metrics that we are tracking?―There is a tendency to find “cool “metrics to track, & some of the right metrics are un-cool & un-digitized?
Marketing Memo: Pertinent is the answer to this question: How strongly is loyalty correlated to the marketing metrics that we are tracking?
Source: http://bit.ly/ZvTcgq
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013
How Digital Loyalty Tricks—Economic Value of a “Like”
Average post engagement rate =
Likes +comments + shares on a given day----------------------------------------------
# of wall posts made by a page on a given day ------------------------------------------------------------
-----x 100Total fans on a given day
Sample trick metric; cool & not-so-useful
The Average user:
•May not even be connected online to the brands he loves•May be connected online to the brands he doesn't love
Indifference needs to be factored in., which affects the economic value of such metrics.
Based on metrics such as these, how can marketers make evidence based decisions?
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013
How Digital Loyalty Tricks—Crystal Balling
Ultimate Acid Test? Conversions & Repeats
―present loyalty tools are generating volumes of data, reports, analytics, all of which are contributing to gigabytes of trash―all of these lead to never ending “what if” scenarios, a drain of marketing time & investment
Marketing Memo: Align your activities to what matters to sales & sales professionals (is it 50%+ qualified leads generated instead of only prospects? renewals? or share –of-voice leading to an actual purchase?) Then build metrics to map these very requirements.
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013
How Digital Loyalty Tricks—Crystal Balling
We need to get to 50,000 likes by end of Q2.
Our post-re-engagement rate needs to be higher than the
competitor!
Our fan base needs to be vitalized to 1M+.
What matters to sales professionals & what we lose
out on: conversions & repeats!
What marketing ends up building & tracking;
pseudo-loyalty!
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013
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Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013
