Loyalty Pays: Hang On to Your Best Customers
Direct Mail Engagement Devices
Tried and true direct mail techniques like surveys, trigger communications and personalization enhance loyalty mailings. "Surveys can be a great way to get attitudinal information, which can then be thrown back into the segmentation strategy. And surveys measure engagement as well," says Walczyk.
Communications sent out surrounding customer triggers, like a specific purchase behavior or event, also improve loyalty. "The customer gets the sense that, ‘Wow! These people really know me, and they pay attention to me,'" Ferguson relates. Walczyk gives the example of a customer service interaction as a great opportunity to communicate. "Follow up and make sure you get the complaint to a conclusion," he says.
Similarly, smart personalization, not just calling out a prospect's name, but using variable printing to tailor an offer, can help move things along. "It's really about the offer itself and how that's relevant to the customer in terms of their purchase behavior, age, lifestyle or whatever type of information you have at hand," Ferguson notes. Walczyk agrees that personalization in loyalty marketing is not just about saying how many reward points the customer has, but recognizing and continuing the relationship with folks at every touchpoint.
Benefits and Results
Three of the biggest benefits of loyalty programs are their measurability, concrete results (behavior changes) and high response rates. "To the extent that you can make your messages targeted and relevant, the response rates for direct mail within the loyalty program membership tend to be a lot higher than direct mail that just goes out to the general population," Ferguson shares. Loyalty members have opted in to your program, therefore the open and response rates are much higher than those for regular mass mail campaigns. "If you're getting a piece of direct mail from your frequent flier program, you are more likely to open it ... because you know when you see the name of the airline on the envelope that it's got some value and relevance for you," Ferguson explains.