PHILIPPINE RETAILING
Cover Story
1ST QUARTER 2019
Column
1ST QUARTER 2019
PHILIPPINE RETAILING
Are Customers Loyal?
The Emotional Framework
Part 3
BUILDING
LOYALTY
YAYU JAVIER
[email protected]
Yayu Javier is the President and COO of Avanza, Inc., who has
acquired more than 20 years experience in loyalty and cus-
tomer relationship marketing and has extensive exposure in
various industries such as retail, consumer goods, banking, and
institutional products.
a need can be situational such as
maximizing a Father’s Day celebration
to increase purchase.
Create a Reason to Celebrate
In one of my talks, someone asked me
how to increase the sales of a product
which is only bought during Christmas
and other special occasions. A very
simple answer to this is to create
the occasions at every opportunity or
even every day so that there is always
something to celebrate and therefore
a need to buy your product. Some
examples of celebrations are passing
an exam, winning a pitch, learning how
to bike, or simply seeing an old friend.
Own an Occasion
Conversion Influencers
In my last article on The Emotional Framework Part 2,
I have shared by Framework which I am showing again
below as reference to those who were not able to read
my last article.
As mentioned these modules have to work cross-
functionally, in this article I want to cover Conversion
and how to achieve better results.
We also mentioned in the last article on the importance
of the Customer Journey. It is therefore important to
understand the specific touch points we can use so we
can communicate with our customer or consumer at
the right time, right place and right channel.
After the Search
When the customer already has the options in front
of him whether via online, at the store, or attending
an event, the frontliner or the online chat facility, the
e-commerce site plays an important in making that
last sales pitch. For loyalty programs, the frontliner
contributes to 70% of the decision making. A loyalty
program is highly influential in upselling by enticing
them to buy more to become a member or earn more
points.
Campaigns by Touch Points for Better
Conversion
The use of CRM campaigns is very important to seek
every opportunity to upsell and cross-sell. This can
only happen if we know the interests or need of our
customer or consumers and we have to provide every
opportunity to fulfill that interest or need. Sometimes
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Another example to create triggers is to own occasions
that can be attached to your product. For example you
can own Wedding Anniversaries and create a website
that gives couples templates, gifts, parties, menus, best
anniversary getaways, albums, and much more. This
would be a great occasion for products like gift shops,
resorts, cameras, to name a few.
Cross –Sell and Upsell Based on Purchase
Data on purchase behavior is a very strong information
to be able to upsell or cross-sell. If your customer
for instance has bought a beauty product for dry
skin, it would be a great opportunity to cross-sell
other products related to improving dry skin. Many
communications don’t work only because we are not
sending the right offers to the right people. Timing is
also very important. It would be great if your campaign
management system will automatically send an offer
the minute you happen to pass by the store and the
offer is good if availed within the hour. This is what we
call geo-based triggers and can be implemented using
blue-tooth or check-ins.
Touch Points Response
Response to a communications is ultimately measured
not just by responding to a campaign but also how
much the customer purchased versus investment in
the communications. This is what we refer to as the
Acquisition Cost. A simple formula below demonstrates
this:
Value
=
CLV
Acquisition Cost
If a customer purchased a camera bag for Php5,000
because of a cross-selling initiative through EDM
and it cost Php1,000 per customer to implement the
Electronic Direct Mail, your Value Ratio would be
5, which is very good as it suggests a high return of
investment.
Measuring the Acquisition Cost per campaign is an
effective way to determine which of your campaigns
have actually worked and can do again or improve on
or discontinue.
Creating Advocates through Campaigns
Providing the venue to have more brand advocates
is another strategy you can implement. Some of the
campaigns that we have done in the past is providing
perks or benefits to customers who post and whose
post are shared or liked by the other members. This
will automatically make your customers your brand
ambassadors and increase the authenticity of your
brand.
In my next article, I will be talking about measures
which is an important exercise in determining
the success of your crm and loyalty programs and
creating the emotional attachment for them to buy
and continue to buy. You can also email me anytime
if you wish to talk more at [email protected] or
visit our website at www.avanza.ph. I also welcome any
feedback on topics you may wish to discuss on crm,
customer experience/journey or loyalty.
Keep the love burning with your customers!
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