Less than 25% of people think loyalty programs offer value

It is common practice these days for business owners to consider adding a loyalty/card scheme to try to attract and retain customers. But do they work? Are loyalty programs worth running?

In most cases I would say NO. And research says that less than one in four consumers felt that loyalty programs offered excellent value.

Conflicting information is all around us. Even in this article about providing good service at Christmas, it is suggested businesses should offer a loyalty program. Then it goes on to say how it is important to be different (which is a great challenge), and that less than 25% of people think it is good value anyway. So why should you even consider it?

My own previous investigations in this area have shown there is plenty of evidence that for service businesses, success relies on much more important factors than a loyalty program.

In fact if people trust you and get good results from your service, you don't need a loyalty program to reward them (which is usually just a discount scheme under another name). They will come back to you anyway.

Bottom line: Don't assume a "loyalty" program will make clients more loyal.

Top tips to make your email marketing more effective in 2007

Some great tips on New Years resolutions for your email marketing strategy at this report from BtoB Online. In my view, two of the best ones are:

1. Make it personal - from an individual in your company
2. Keep it simple - don't overcomplicate design and email strategy

Does multi-tasking reduce the impact of your message on clients?

Researchers are starting to focus on the impact of the 'multi tasking' phenomenon. The younger you are, the more multi-media-oriented you are. And the more likely it is you will mutli-task, especially when it comes to media. See the chart here for how Teens are now spending their time.

Even if your clients are not teenagers, you know the same situation is occurring, more and more often.

For business people it can be mobile phones, office phones, computers, PDA's, paper diaries, desktop PC, laptop, faxes etc. How many things can be done at once?

Does this mean your clients/prospects will have more difficulty in staying focused on your message?

Will it be harder for your message to break through the barrage of information faced by those multi-tasking?

I reckon it will.

What to do when you can't call prospects

In a recent post I talked about how 'time shifting' could have an impact on your marketing decisions. Today I read this case study from Marketing Sherpa that specifically mentions time shifting as the reason for creating podcasts.

[A podcast is and audio recording/presentation designed to be downloaded and listened to at a later time. Derived from: Pod, as in iPod; cast, as in broadcast.]

The company featured in the case study found that key influencers for the purchase of their software were consultants who travelled or were out of the office more than they were in it. So traditional marketing, sales messages, and phone calls were not suitable to reach them and get the message understood.

In the case study article, Steve Andrews, IFS Marketing Director says:

We started thinking about the life of these influencers. We realized we have to let them be able to time-shift our messaging so they can listen to us on their terms, not on our terms and timing.

The future is here. Don't miss your opportunities to impact prospects. Avoid using 'old' tactics that don't suit the lifestyle of your prospects today.

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(Note: the case study article mentioned above is available from Marketing Sherpa for free until Dec 24)

Old ways are no longer needed

I just can't avoid reading about how technology is changing the way we do business. And how business oppoortunities can be pursued. The Australian newspaper group Fairfax is planning to launch new news titles in cities they dont have a major presence (Brisbane, Perth, Adelaide).

But they are doing it with online newspapers. Not the old-fashioned, black-ink-on-your-hands, printed version.

Editorial staff in Brisbane. Production staff in Sydney. What a streamlined system. Now they can get up the competitors noses from a distance!

News is a competitive field. The internet is driving many changes there. It is disruptive technology. How is the internet affecting your industry? What are your competitors planning now, that they couldn't do in previous years? What are you doing to stay ahead?

Why your clients wont wait for you anymore

Time shifting. Have you heard of that. It's where people (mainly using technology) take control of their evironment and do things when it suits them. Shifting the pattern of time to suit their own needs. And a report today about free to air TV losing out shows it is happening here, and now. From the report:

According to Zuchetti, people are tired of watching shows when it's convenient for the networks, instead of when it suits them.

What does this mean for you, and your clients?

It shows us that people are getting more restless. More inclined to say... "Hey, I want to do it this way, not YOUR way!"

This can have a dramatic impact on general attitudes. Now you dont have to wait. And you can change the system to suit what you want. Combine these attitudinal shifts with lifestyle changes where the 9-5 job continues to account for a smaller percentage of jobs, and people have less structured time (as we used to know it).

The end result... clients who are not happy unless they get the right result, when they want it, and expecting to be able to influence they way the service is delivered. After all... they are used to timeshifting. Why not expect you to do it for them?

The bar continues to be lifted on performance standards for service providers in all industries.

To maintain client satisfaction make sure you continually educate your clients on why you follow the process you do (explain why it is best for them), and help them participate where ever possible.

The human touch is often preferred.

It can be easy to think that everything has to be online these days to be successful. I know I often push the virtues of online marketing tactics (websites, email, newsletters, blogs etc). But not everyone prefers online information.

A recent study by Targetbase of 300 people (online shoppers) reported at BtoB Online, shows that when it comes to sources of ideas for giving gifts, window shoping (46%) and the 'traditional' catalogue (45%) rank the highest. Other results:
* Websites 32%
* Online advertisements 15%
* Emails 14%

And... 67% said they would simply ask the recipient what they wanted. How simple is that!

So don't assume that traditional marketing is dead. It isn't.

It is a matter of finding the right tactics, for the right situation, to get your message to the right audience.

3 things you MUST do to get media interested in your story

You know, the principles of how to get covered by the media haven't changed much. The internet makes distribution of news easier. But the people writing the news are still looking for you to do 3 things, as outlined in this interview at MarketingSherpa.com. (available no charge until Dec 18).

In the interview New York Times editor Stuart Elliott (his beat is media and technology) points out the 3 things you need to do to get him interested in your story:

1. Read the NY Times, so you know how he usually covers stories. Make it relevant for him.
2. Email your pitch to him, so he can print it out. No attachments. Put your press release in the body of the media. (Note from me, Stuart Ayling: this basic tip is ignored so many times by excited business people trying to get attention. Don't worry about attaching a fancy document/letterhead. Just stick to the story and get it written properly.)
3. Offer an exclusive. News gets old very quickly with the internet. Make it worth their while to take time on your story.

The same pointers apply to other media outlets, not only the NY Times. Getting media coverage takes preparation, and that takes time. Time well spent if you ask me.

Does your website fail you?

Another straightforward article today about creating a website that supports your positioning and provides a consisent message to your target audiences. Check it out here... from the Product Management Association in the USA.

Just this week in my Client Attraction Master Plan program we discussed this same concept - how to structure your website for maximum performance - that means, getting more leads and direct sales.