Wilco de Bie, 26 March 2015

The four building blocks of a mobile loyalty programme

Regarding campaigns, many brands commit themselves to generating free trial sales. However, the conversion to repeat purchases is often too low. Solution: a mobile (online) loyalty programme. Effective, cost-efficient and flexible.

Four Building Blocks
Online loyalty agency Magneds develops loyalty programmes by using Magneds Milestones. This model of Magneds consists of four pillars: learn – earn – burn – learn. A model in which the process repeats itself. Results taken from your loyalty programme serve as food for re-evaluating your customers, their behaviour, and methods of stimulating and rewarding. Every loyalty programme starts with ‘learn’.

Learn
 A mobile loyalty programme starts and ends with the same thing: learn. The first phase focusses on identifying and getting to know your customer. Who is actually buying your brand? Where? And how or when do they use it? This valuable data is given to you by your customers when they sign up for your online loyalty programme (data collection) and during use (data enrichment). One condition: earn your customer’s trust and don’t betray it. Find your way to the head and the heart of your customers and make sure to take their privacy seriously. It sometimes helps to give your customers a little something in exchange for information.

Earn
After recording customer behaviour, you want to connect your brand to your customers. In order to do so, you need to map out what kind of behaviour you want to stimulate and reward. This means connecting the touchpoints you already have (for example stores, website and folders) and potentially creating new touchpoints (for example packaging or an app). One question many marketers are struggling with, is how to bring the buyer from a physical product to a website or an app. Unique codes could be a solution to that, such as FrieslandCampina’s Eurosparen. Examples of mobile earn-techniques are sound recognition, (instore) location recognition, and scanning. Burn How can you ensure that you continually stimulate the desired behaviour of your customers? Your burn-methodologies form a balance between hard and soft benefits. Discounts, coupons and vouchers are all examples of the former category and are all mobile-friendly. Soft rewards include privileges, status and badges. Gamification plays an important role in this: stimulate your customers to use your app more often in a playful manner in order to strengthen the bond. For instance, with achievements: fill up your car during the early-bird hours and get a free coffee with a croissant!

Learn
The real added value to a mobile loyalty programme: measuring and understanding. In this ‘learn’-phase, you look at the results. How did your sales develop? Which earned media have arisen and how do they score? Who are your brand lovers? The data from your programme will provide important insights. You are now able to segment and target your customer groups. More importantly, you can engage in one-on-one communication in order to receive more appreciation for your brand and to strengthen the bond with your customer.

Magneds Milestones
In many of the mobile and/or online loyalty programmes we develop for our customers, we apply these four building blocks: the Magneds Milestones. Curious to how we can implement these in your brand? E-mail us at hello@magneds.com or call one of our magnets: 013-5230000.

Also published on Adformatie.nl