Zain Raj, CEO of Hyper Marketing Inc., spoke about loyalty marketing earlier this month at the annual Retail Customer Experience Summit in Chicago, which consists of interactive presentations between speakers and an audience of retail executives. The goal is to explore challenges they face in the marketplace. Raj focused on the techniques necessary to turn a first-time customer into a repeat customer and the various aspects of loyalty marketing that are unique to different types of businesses. The process involves making a product or service a “ritual” for customers as follows:
1. Getting the initial transaction by providing consumers with a new value equation – product features + customer service + added value, for a competitive price.
2. Magnifying customer attraction to your brand by creating engaging experiences
3. Building connections with relevant innovations. Here is where most companies stumble because they remain more focused on innovations for new consumer acquisition and don’t pay enough attention to the evolving needs of their existing customers.
4. Creating a bond by aligning on key values: The most sustainable bond is built when brands connect with their core customers through shared values.
Using Starbucks as a personal example, Raj spoke about how he starts each day at the coffee shop conglomerate (see video).