On the Third Day of Loyalty Marketing Nirvana: Ideate and Validate

You didn’t think you could achieve loyalty marketing nirvana without ideating, did you?

Thinking is exactly what we’re doing on Day 3 of loyalty marketing nirvana—ideating and validating for effective event-driven marketing.

Effective customer engagement is all about good, creative, and clever ideas. Start by brainstorming as many good ideas as you can, using the no-idea-is-a-bad-idea approach. Really stretch the imagination to create new initiatives. Then, think through execution.

The ideation process has nothing to do with your finance team (unless they have some good ideas, in which case they might be in the wrong department), however you may need validation from finance before proceeding further with new initiatives.

Once you have selected your best ideas, it’s a good idea to develop a rigorous business case to support them. This will help you achieve early commitment from your financial stakeholders we discussed in step one—organize and commit stakeholders. Remember that?

When you think of marketing ideas, your mind probably shifts to catchy slogans and compelling messages, which are needed in this scenario. But to be effective, you need to take it further. What are the events that occur in your customer’s life on either a regular or random basis? How can you deliver value to your customers during these events? Answering these questions will help you create the processes that allow you to consistently deliver contextual, valuable messages with ease.

Event-driven marketing is all about identifying these events and creating meaningful customer experiences to go along with them.

Here are a few strategies you can use to help you ideate and validate:

Strategy session – The goal here is multiple concepts. Start simple and then stretch each concept out into more detail.

Focus groups – Use focus groups to enrich your strategy session ideas and narrow them down to what really matters.

Quantitative research – This will help you select and set base expectations for your initiatives.

For example, The North Face leveraged qualitative research to validate whether to offer points or perks for its VIPeak loyalty program. No guesswork needed.

Do you have questions about the ideating and validating process for event-driven marketing? Tweet us @TIBCO using the hashtag #LoyaltyLab.

Blurring of the Marketing/CRM Line

by Jeanne Roué-Taylor

There is a significant blurring of the line between marketing and customer relationship management.  This blurring has enormous impact on the way we operate our businesses and engage with our customers.

We need to stop thinking about functions and start thinking about fans.

Traditional silos

Traditionally, marketing has been about defining market segments and delivering offers while CRM was about knowing the fine-grained details of your accounts.

Even though we call it CRM, it has been, for most companies, about the sales funnel more than customer relationships; leads go in, revenue comes out.  Marketing sat above that funnel.

Expanding roles

Marketing is expanding and is less about segmenting the potential customers you don’t know and much more about finding prospects to know and interact with as marketers, before they enter “the funnel”. CRM, meanwhile, is being used to continually interact with customers in new ways of cross selling and upselling that used to look like marketing.  Where does marketing end and CRM begin? It’s very blurry.

Technology/strategy breakthroughs in recent years and changing consumer patterns allow each end of the marketing-to-CRM spectrum to continue to widen even as the difference between them blurs. This, in a nutshell, creates friction between applications, databases, departments, business owners, platforms, and ultimately prevents cohesive management of the spectrum.

Conflict

It manifests as battles over budget, politics over positioning, and conflict over control. It doesn’t have to be that way, and it isn’t for companies that recognize the benefit of seeing this spectrum as turning customers into fans.

Turning customers into fans must be the over-arching goal of any 21st century company that wants to stay relevant, build trust, open lines of communication and find success despite turbulence and a constantly evolving customer. Are you ready?

You Might Like:

The Power of Analytics to Drive Loyalty – Part 1: Desires vs. Capabilities in Analytics

TIBCO’s David Rosen recently presented at the Loyalty 360 Engagement Expo on a topic that we at Loyalty Lab find to be undeniably essential in today’s loyalty marketing landscape: the importance of analytics, and the ways in which more comprehensive reporting can grow the success of your loyalty program.

Marketing Analytics

We surveyed over 100 marketers to assess what analytics tools they are currently using; the types of metrics, or dashboards they have; and the capabilities they’re investing in to take their loyalty programs to the next level.

Ultimately, we found that there is a huge gap between the desire to be able to do more complex modeling — from a day-to-day analytics approach to the ability to analyze the success of a specific campaign on a per-customer basis — and the internal capabilities of various marketing organizations.

The survey was broken into three segments. In the first segment, in which we measured the success of loyalty programs, the biggest gap was seen in measuring specific campaigns using rigorous test and control. This refers to the ability to analyze any campaign down to the individual ROI by comparing a group that was subject to the campaign versus a control group of consumers, stores or products that did not participate in the campaign.

The other major gap in measuring success was using tools to measure social buzz and sentiment. This area is obviously ripe for investment over the next few years. Currently, about 40% of marketers are using test and learn from a scientific standpoint to analyze loyalty programs, but 80% of marketers think that everyone should be doing so.

The second segment of the survey measured the gap between the importance and efficacy of dashboards and reporting. Here, the most noticeable gap was in segment migration, or the ability to move profitable customers to higher tiers, as well as retain customers already in high tiers.

The final part of the survey measured the interest in and need for specific data analysis and analytics capabilities. Rosen cites a number of advanced analytics that can be beneficial, but one approach stood out to all of the marketers surveyed as an enormous boon for a loyalty programs: the ability to match members to specific offers, and to optimize these individual offers. As Rosen put it, “Marketers dream to be able to achieve this kind of relevance for the customer.”

In our next post, we will review the three types of segmentation models Rosen suggests deploying to optimize your loyalty program. Hear more from him and see “The Power of Analytics to Drive Loyalty” webinar in its entirety here

You Might Like: