Tag Archives: customer loyalty
On September 29th, 2011, Bank of America disclosed plans to collect a fee for standard checking accounts. The fee sparked an outcry among Americans threatening to close their bank accounts and move to other institutions.
Americans rallied together for November 5th, Bank Transfer Day (BTD), as an opportune time to make the switch. Community banks and credit unions capitalized by encouraging customers to move their money to the institutions that don’t charge such fees.
In the final week of October leading up to BTD, eight major financial institutions one-by-one decided not to charge debit card fees, falling to the threats made by consumers.
We’ve seen the power of Americans rallying together to stand up and protect their financial needs. When consumers stand as one, even some of the most powerful corporations in the world will listen.
Consumers stood as one on Bank Transfer Day. In the aftermath, Credit Unions picked up 650,000 new customers – more than all of 2010 combined – totaling $4.5 billion in deposits. Big banks stand to lose more. Their reputation is so thoroughly tarnished among the masses that the ten biggest US banks could collectively lose $185 billion in deposits over the next year if they don’t do more to please their customers.
A Changing World: Consumers Gain Control
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Critical Mass recently launched a redesigned website for United Mileage Plus®. The site features a new look and feel, and offers a more personalized, intuitive experience for members of the United Mileage Plus loyalty program.
The Ask
“There are a lot of loyalty programs out there. Our challenge for United Mileage Plus was to create a uniquely compelling experience that would help us drive acquisition and engagement,” said Dave Anderson, Managing Director of Product Development, United Mileage Plus. “If members can easily use their miles, they are more inclined to stay engaged with the program. Mileage Plus is the program that wants you to use your miles and we needed our new website to encourage that,” Anderson added.
The Insight
Drawing on segmentation studies, qualitative research and stakeholder interviews, the Critical Mass team isolated key customer pain points in the existing United Mileage Plus experience. Members often found it difficult to navigate the site and find relevant information on how they could optimize their membership, such as all the different ways they could earn and use their miles, as well as the benefits of elite status. The experience was frustrating for both savvy and new members alike.
If you’re in the working world, you’ve probably sat through a 401(k) benefits meeting and heard the spiel:
“Saving for retirement is really important. And if you just set aside a little bit per day, you won’t even feel the contributions coming out of your paycheck. For example: think about how many times you go for that morning coffee at Starbucks. Now do the math. $5 per day x 7 days a week x 52 weeks in a year…”
When it’s framed like that, it’s hard to argue that a daily Starbucks fix can add up to a pretty hefty dent in your bank account. Yet interestingly, roughly a week ago, Starbucks became the first brand to surpass the 10-million-fan mark.
From a Luxury Brand to a Listening Brand
In these tight, recessionary times, with unemployment rampant and people everywhere feeling the financial pinch, Starbucks, once an icon of edible luxury, has emerged as a winner, warming consumers’ hearts like a peppermint latte on cold winter day.
It wasn’t too long ago that Starbucks was dubbed a brand in crisis with eroding sales, rampant store closings and plummeting stock prices. But now, in August of 2010, they are firmly on the rebound and own boasting rights as part an elite group: the 10 million fan club, which includes such social media superstars as Lady Gaga and President Obama. So how did they do it?
Continue to Starbucks’ 6 Tips to Inspire Action with Social Media.
Chris Wells | Critical Mass Chicago
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Consumers have a myriad of choices in today’s rapidly changing digital environment. As a result, digital marketers have to work harder to deliver extraordinary experiences that resonate with customers. Why is this important? Because it’s the extraordinary experiences we create for customers that allow us to build lasting and meaningful relationships with them.
In order to meet this challenge, it can be a worthwhile exercise to take stock of the terrific brand experiences we’ve recently encountered. To gain some outside perspective on capturing customer loyalty in the new digital social age, I asked a few friends to share their recent experiences with brands.
One friend recounted a recent direct mail piece he received from Southwest airlines and how it produced a significant and lasting positive brand effect for him. He explained that after coming home from a long workday, he opened his mailbox to find a birthday card from Southwest. It was personalized with his name and arrived a few days before his actual birthday. It was a simple birthday card that included a discount on an upcoming flight and a drink coupon. The message was also very simple and direct and included a statement to the effect of “Happy Birthday! Have a drink on us!” According to my friend, this simple gesture went a long way towards building a lasting relationship between he and the airline. Now he always checks for flights on Southwest before any other carrier.
Upon asking another friend, she recalled a recent experience with ProFlowers, an online flower delivery company. She received an email reminder about 2-weeks before her mother’s birthday. The subject line of the email was personalized with her mother’s name, saying, “Remember, Evelyn’s birthday is coming up soon!” Again, not a very complicated message, but a valuable one that made an impact with my friend and helped to ensure she’ll always think of ProFlowers each time she orders flowers for her mom’s—or anyone else’s–birthday.
Both of these are examples of simple but great customer experiences. The mere fact that my friends were able to remember the messaging, timing and impact of these interactions suggests they are the kind of brand experiences most marketers strive to achieve with their customers.
What do these two customer experiences have in common?
- They delivered VALUE and/or convenience.
- They were RELEVANT.
- They were PERSONAL.
We could all take these insights as lessons learned and call it a day. However, as digital marketers we are continuously challenged with how to take these kinds of customer experiences from “great” to “extraordinary” in order to build deeper customer relationships and brand loyalty. Forrester Research wholeheartedly supports this notion. Their 2010 Customer Experience Index indicated that favorable customer experience correlates highly to loyalty — especially when it comes to consumers’ plans for making additional purchases.
Read more about how to take these experiences from Good to Extraordinary
