Use Targeting To Boost Loyalty

Josh GordonA recently published eMarketer report quantified the value of email loyalty programs for consumer packaged goods companies. The report revealed some amazing numbers that beg two questions. First, why are there still companies not using email as a loyalty and retention tool? Second, why aren’t companies doing more to expand email loyalty programs or extend the loyalty programs to different channels?
In response to the first question, the report revealed a whopping 91 percent of email recipients download or print a coupon from an email. Seventy-six percent of email recipients try a new product for the first time because of an email and 65 percent forward the coupon to a friend or share it. Not only is the value of the loyalty program proven with current customers and those already loyal to the brand (since they did sign up to receive emails, after all), but the viral value is as important as it is difficult to measure. Interestingly, nine percent of respondents shared that they even write a blog post on a CPG company’s website after receiving an email. The size of the loyal audience is large, but so is the devotion.

To answer the second question – why aren’t companies expanding loyalty programs – any response must begin with better use of targeting technology. Targeting technology, especially onsite targeting technology, takes any loyalty efforts from good to great. Whether a consumer is interacting with an email or visiting the website, when a company can demonstrate understanding of individual likes, dislikes, and buying habits, consumers respond favorably. The best targeting technology is even able to use real time database updates to drive content on websites or in emails. For example, using email open activity to decide which content is featured on the homepage is simple to setup and effective. Even a small behind the scenes change to a direct digital marketing program yields improved results. The successful online sellers are the companies that are not afraid to implement new technology.

A variety of targeting options are available, from types that consumers are not enthusiastic about like geo-targeting to favorably viewed types like onsite targeting.

Bottom line, the great thing about direct digital marketing is that better is always possible. New technologies – or new applications of older technologies – are always in the market ready to leveraged by the right company.

What new technologies are ready for review in 2010?

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