Assuming that your competitors are also providing great products, content and offers, the recipe for success over and above what they offer involves the following formula: Loyalty = Recognition + Trust
Once we have created this loyalty, then we can begin to leverage our customer’s natural inclination for inertia. Customers subconsciously recognize that, if they change to another brand, they will need to either teach the new company about themselves -- or worse still, never have the opportunity to teach them, as the new brand doesn’t personalize their customer communications. The old saying “If it ain’t broke, don’t fix it” applies here.
But how do we achieve the loyalty required? First, by implementing an email marketing programme that addresses their needs as humans to be recognised and treated as individuals, and personalising their experience accordingly.
The importance of Recognition
Charles Taylor’s “The Politics of Recognition” says that recognition constitutes a “vital human need.” Is it chance, then, that the House of Fraser’s loyalty newsletter is called “Recognition”? I think not.
Let’s look at some typical statements from customers when asked what they want from a brand:
- Treat me as though my business is important to you.
- Reward my loyalty and recognize me for who I am.
- Respect my preferences and the information that I share with you.
- Make it easy to do business with you, anywhere, at any time.
- Be relevant to my needs and circumstances.
Show them that you know them as an individual
But personalising emails isn’t always as straightforward as you may think.
A YouGov and Smartfocus study in 2013 found that 50% felt getting their name wrong was a reason to think less of the brand, and 40% remarked that getting gender wrong would have a negative impact.
Many brands rely solely on explicit data to personalize – but we have much more data available than just what our customers have provided to us. We can also use implicit data like click behavior, browsing behavior, or transactional data. It’s wise to ensure that the data you use to personalize will create the customer experience you want to provide.
Which brings us to trust
The DMA UK’s Email Tracking Report 2014 discovered that 36% of subscribers sign up to receive a brand’s offers because they like the brand, whilst 35% sign up because they’re a regular customer, and 35% sign up because they trust the brand. (Note: Consumers were able to select multiple reasons for signing up.)
Trust in today’s digital marketing is an issue. Customers don't trust brands to use their data wisely. They’re concerned that the brand will either not use it at all or share their data with third parties.
This means that we need to prove our trustworthiness by using their data wisely and creating a meaningful, personalised experience for them.
The bottom line is, if we have proven ourselves to be trustworthy with their data, and if we provide them with a holistic experience that makes customer feel recognized as an individual rather than just part of the mass, then they’re less likely to move to a competitor.
Originally posted on MediaPost