REAL (Rewards, Engagement And Loyalty). It may seem a little rhetorical and you might already know (or not) that these three concepts serve very different roles and have very different effects for marketing. Yet in today's myriad of advertisements and campaigns, not to mention the number of Social Media and user generated stuff going on, the correct application of each of these concepts to achieve the desired effect is could, though it should, be a difficult and often misunderstood. Here's a little personal take with examples on what's what and hope it will help you in conceptualising your marketing efforts for 2012.
Rewards - Yes as the term suggest, the use of rewards/gifts to induce a certain behaviour. Such as giveaways, lucky draws, freebies and to a large extend points and miles. What can this do for you in marketing? Like holding out a candy in front of a donkey, it allows you to attract and steer your audience towards a certain behaviour.
2 major considerations come into play here. First the candy and secondly the donkey. Well of course, you have to be holding out the right candy in front of the right donkey for the donkey to follow the candy. Simply put you've got to hold out a reward that your target audience wants. How far (hard/easy) do you put out that candy will also determine if your donkey will try for it. Make it too easy and you might find yourself out of candy before you get the donkey where you want. Make it too hard and the donkey might not be following you at all.
This however should not be mistaken with Engagement and Loyalty. You CAN'T make engaged nor loyal customers with Rewards. So up to this point your miles card, stamp for free coffee card, lucky draw DOES NOT make a loyalty program. As much as most use such their main thrust of their loyalty marketing. It's not. That's why people switch cards/companies once they find a better rewards program. However, appropriate rewards can allow you to induce (buying) behaviour, that you want to achieve.
In short rewards have a very short term view. I give, you want therefore you do. Think about and start noticing the use of rewards around you. Free gifts, free parking, white papers, FREE iPad!(The current hot favourite amongst audiences of all age groups and hence marketers). It's extremely effective in traffic spikes and attracting the attention of the audience who is really attracted by the reward, and distracting them from the point that you are trying to push sales. Afterall the bottomline of marketing is still sales. However... Once I don't give you don't do. Unless...
Engagement and Loyalty comes into play. Watch this space as I write about what Engagement is about, what Loyalty is about, how do we effectively combine the three into an effective customer capture campaign.
Now that you've read about rewards, discounts especially ridiculous discounts like Groupon is in fact Reward marketing. Why doesn't it work for some? Well because once the reward (ridiculous discount) is taken away, the customer is not buying. To effectively capitalise on the Reward behaviour, one has to also prepare an engagement and loyalty strategy.
If you are following this series please leave a comment below or like this post. Since we are on the topic of rewards, I'll give away 2x $5 coffee vouchers to 2 lucky winners. It's a small candy but it's appropriate for the exercise.
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