For top brands that have found their hook as customer habits - think Amazon when you need anything quickly, Nike when you want to improve fitness, Walgreens when you want overall health - becoming a habitual part of a customer's lifestyle means bringing in revenue and building continuous growth.
Unlocking Customer Habit Behavior Can:
- Increase repeat purchases
- Drive high-margin spend
- Create opportunities for:
- Cross-store engagement
- Product upsell
- Triggered repurchase
- Increase customer interactions with your brand
- Customers who interact and transact with a brand spend 250%+1 more than those who only transact
- Promote customer advocacy
Becoming a habit starts with truly knowing who your customer is - behaviorally, emotionally, and transactionally. One of the most effective tactics for building a holistic view of the customer is through loyalty fundamentals. As customers become channel-agnostic, loyalty strategy keeps members opted in, allowing marketers to not only identify what is happening at each interaction, but who these actions are tied to. In exchange for this insight into their behavior, members ask for relevancy, value, and experiences that they want.
With this data, marketers know customers so well, they can anticipate their needs and wants. This makes the brand essential in customers' lifestyles when it comes to choosing where they will spend.
But using loyalty strategy doesn't mean having to take on the traditional loyalty approach, in which customers spend to get discounts, and brands face points liability and diminishing margins. Many of our recent clients are skipping the gamification that comes with points programs, and which tend to be lost to thin the masses of identical programs. Their approach to building customer habit is more organic. In the age of the empowered customer, each loyalty journey should be individualized to the experiences and engagement of the member. Essentially, it becomes "Me Loyalty," and each journey is unique, building the one to one emotional and behavioral relationship with the brand, at scale.
We've seen this method in action and it works. One client identified several top key segments of customers - including a complete perception change on who their highest value customers were. From there, they automated targeted messaging and offers to lift sales 14% in the first 90 days of their new campaign process - all this through using loyalty fundamentals, without the downsides of points and discounts. Insights from this retailer's member data allowed them to enhance the customer experience, which led to an unexpected reinvention as younger generations discovered the brand and started weekly visits to supply their hobbies and interests.