Work from Home – a term, a novelty, once a privilege, and now, the new reality.
When the pandemic broke out in March, most of the corporates made the switch to allow their employees to work from home.
It turned out to be a blessing in disguise for many who were struggling to find time to spend with their family, pursue hobbies or simply enjoy some ‘me-time’ due to extended work hours and long commutes.
But this is just one side of the coin.
The other side is the blurring of lines between home and work. For most people, work got stretched to impact their personal time and social life became non-existent since everyone was homebound. The WFH scenario also had a negative impact on mental and physical health with several people experiencing an increase in anxiety levels, mental stress, loneliness, and neck/back pains.
There exists a similar ‘two sides of a coin’ analogy in the marketing world – Customer Acquisition and Retention.
While stakeholder and investor opinions may vary on the importance of each, a marketer understands the subtle dynamics and balance that needs to be maintained between these two entities. It’s a well-established fact that 44% of companies have a greater focus on customer acquisition vs. 18% that focus on retention. But the truth is, if we don’t acquire new customers, we would not have any to retain. And if we don’t retain customers, we’ll continuously squander valuable marketing budget on acquiring new customers.
This month’s feature rollouts are inline with helping you find that perfect balance between customer acquisition and retention.
The most efficient purchase funnel starts from Awareness and ends at Advocacy with all other stages of Consideration, Evaluation, Purchase, and Loyalty lying in between. The focused goal of every business is to move the maximum number of people from Awareness to Advocacy. This is the stage where customers are not only happy with the company’s products and services but they also start evangelizing them, resulting in higher brand equity and mind share.
Capillary’s newly released feature – Funnel Charts, enables marketers to increase the number of people filtered through different funnel stages, to help achieve the end objective which could be conversions, retention or coupon redemptions, etc. Marketers can visualize the data flow from one stage to the next, identify the possible reasons for drop in customers/leads, and take the corrective steps with extensive analysis. The customer insights derived from transactional, behavioral, CRM, and demographics data is analyzed with Insights+ to understand the needs and motivations, possible bottlenecks in the journey, and steps to resolve them in order to increase the number at the bottom of the funnel.
Funnel Charts is integrated with the other Capillary products to perform deep-level analytics and trigger personalized and targeted campaigns. These Funnel Charts can be created for both Acquisition and Retention use-cases based on the needs of the marketer.
History books will mark 2020 as the year of change. Along with other things, customer purchase behavior has seen a drastic shift and the trend is here to stay. With 60% of global customers stating that their shopping behavior has changed due to Covid-19, and 13% seeing it as an opportunity to try new brands, customers are increasingly switching between retailers.
In such a scenario, the role of effective loyalty programs has gained more prominence than ever before. The plain vanilla programs will no longer suffice to get ahead of the competition and keep your customers coming back. Marketers need to dig a little deeper and strategize on new ways of customer engagement and loyalty.
Capillary has introduced supplementary memberships as a part of Loyalty+ to enhance the scope of loyalty programs and increase the customer lifetime value. The memberships can be offered over and above the existing loyalty programs to provide additional benefits to your customers. In the UK, 80% of retailers believe that subscription-based loyalty programs have grown in popularity during the lockdown. And let’s face it, everyone loves to feel special, important, and exclusive (94% of Americans reported that they would take advantage of an exclusive offer). This unique feature will help you enable that exclusivity by offering it to your top customers, or as a paid subscription. It will help marketers to retain customers, increase customer loyalty, and develop strong emotional connect. In fact, 80% of emotionally loyal customers will act as brand advocates, promoting the brand to their social groups.
Brands incorporate a lot of tactics to delight their paid subscription members – early access to new products, preference in check-out queues, more benefits and discounts, early entry to grab the products, etc.
One such example is Everlane, a clothing company that gives its members early information and access to their limited-edition products. It enables Everlane to gauge customer interest in specific products by tracking customer response data and optimizing their inventory.
Customer loyalty and retention is usually one of the top priorities for every business. Gartner states that 80% of your company’s future revenue will come from just 20% of your existing customers. In the current scenario, where almost every business is facing a slump in sales and revenue, it is essential to support each other and grow together. You can kill two birds with a stone with Partner Loyalty Programs – give your customers more options to redeem points and at the same time, build a strong partner network.
Capillary’s Loyalty+ product enables you to extend your loyalty program by adding partners and providing customers with the option to link and exchange points between the programs. Customers who are already part of multiple loyalty programs can easily unify their membership and redeem points across partners using this feature. It is a win-win situation for both brands and customers. While brands can increase customer retention and cross-sell opportunities, customers get more points at their disposal.
Here are some successful partner loyalty program use-cases:
Walmart: Walmart has a partner program with brands like Murphy USA Gas Stations, Neighbourhood Markets, Sam’s Clubs and MasterCard. Customers holding Walmart Money Card and Walmart Credit Card get 1-3% back on their purchases. The members of this program also receive monthly rewards and discounts on gas and other products.
Bajaj Allianz: A major insurance provider in India launched an innovative loyalty program – Jiyo Fit – by partnering with Yes Bank and Visa. Customers can opt for a health debit card when they purchase a medical policy and use it to avail discounts at gyms, spas, health clinics, chemists, restaurants, and retail chains. Bajaj Allianz also gives their customers an option to purchase Visa debit card from Yes Bank at Rs150 per annum and open a zero balance savings account with Yes Bank.
Both sides of marketing – acquisition, and retention – go hand in hand, and marketers have to prioritize the weightage based on business priority and organizational goals. While effective engagement and a delightful customer experience can help in acquiring new customers, providing a great after purchase experience can help you retain these customers for the long run.