Tag Archive for: customer loyalty

There are TWO keywords for your post-COVID marketing strategy: Trust and Retention

2020 won’t be a year any of us forgets anytime soon. Social distancing brought us personal and economic uncertainty that’s sure to last through the remainder of the year. We won’t fully appreciate the full impact on this global pandemic for a very long time. Now IS the time to think about your post-COVID marketing strategies though.

Right now, businesses are having to make decisions that will determine whether they’re company survives or even thrives in a post-COVID-19 world.

Let’s face it, post-COVID marketing and PR will be very needed. It’s not a question of “if,” it’s a question of “what” and “how.”

From past recessions, we know customers steer towards familiarity during times of uncertainty. With this in mind, it’s important for brands to cherish their customers, keep in touch with their customers and tap into and enhance brand loyalty.

Even in a recession, consumers will still splurge, they will STILL treat themselves, but emotional triggers take on outsized importance because consumers actually DO want to feel good about their purchases and when consumers are watching their expenses closely, they have more to lose from a lousy brand (product, customer service, communication) experience. When consumers are watching their pennies, they aren’t taking as many risks with their money.

Get Emotional With Your Customer Retention

Now is a great time to reinforce the brand relationship with existing customers. Think about customer loyalty programs and branding & PR initiatives that strike right to the heart of your existing customers. Discounts and sales are easy, but do nothing for loyalty, so look at reinforcing customer loyalty right now. Now, understand, no consumer says “I want a relationship with a brand,” instead the relationship resides in their subconscious. Our work with Captivation Motivations means we deeply understand how consumers act, even when they don’t understand why they act.

Not only does post-COVID marketing to existing customers cost less than acquiring new customers, but it also pads the bottom line for years to come:

1) Customers with an emotional relationship with a brand have a 306% higher lifetime value and will recommend the company at a rate of 71%, rather than the average rate of 45%. (Motista)

2) Emotionally connected customers stay with a brand an average of 5.1 years vs. 3.4 years (Motista)

3) Emotionally connected customers recommend brands at much higher rates: 30.2% vs. 7.6% (Motista)

Grab Share of Voice While It’s Available

Brands who maintain or even increase ad spends are able to thrive in the years after recessions, the same will be true for post-COVID marketing. There are several reasons for this, first is branding confidence.

While the Edelman Trust Barometer of 2020 addresses the lack of trust in advertising, the strategy behind advertising isn’t trust itself, it’s exposure which leads to familiarity, which leads to increased trust. Also, the ROI will improve because fewer competitors will be advertising so your message will come across more strongly.

Plus, consumers know that marketing decreases during recessions, so by advertising you’re sending a message of your own confidence and strength to both customers and competition.

That said, expect PR, specifically earned media, to take an outsized influence as earned media leads in trust. Brands using PR to refine and focus their commitment to their existing customers will score extra bonus points in customer retention.

4) Companies who maintained or increase ad spend during a recession saw a 256% increase in sales over those who cut back (Innovating Through a Recession: Professor Andrew J. Razeghi Kellogg School of Management)

5) 92% of consumers say they trust earned media over purely promotional content. (PR Daily)

6) 70% of consumers prefer getting to know a company via articles rather than ads (Content Marketing Institute)

Maximize Happy Customers


Celebrate your existing customers, because customer retention is the name of the game. But go the extra mile too, ask for and encourage your customers to give you reviews and feedback AND show that you appreciate their willingness to do so. The reason for this is simple, the more engaged a customer, the more likely they are to be in the habit of referring you to others.

For the last decade, we’ve witnessed one of the most incredible consumer shifts in marketing: the traceability of consumer referrals. We now know that for certain that when a friend recommends a product or service, that product or service immediately benefits from a trust boost. This trend will be on supercharge throughout 2020.

During the boom economy, you probably spent the majority of your marketing budget on the acquisition of new customers. In the post-COVID marketing world, now it’s time to turn your funding away from acquisition funnels and into emotional connections and reinforcing trust with your existing customers, pivoting your marketing budget towards this strategy will increase revenues (yes, even during a recession).

7) Happy American customers will share their positive experiences with and refer about 11 people. (American Express)

8) It’s 5-25X more expensive to acquire a new customer than it is to retain an existing customer. (HBR)

9) A 5% increase in customer retention can increase company revenue by 25-95%. (HBR)

10) 80% of an organization’s future revenue will come from just 20 percent of your existing customers (InsightSquared)

 

Social Media Is Your Partner in Travel Branding

It’s no secret that today more than ever, digital branding in travel and tourism matters.

According to Google, only 9% of travelers know the brand they want to book with when they start their digital travel search.  This is both an opportunity and a challenge for hotels, airlines and even destinations.

Does this mean consumers have no loyalty? Well, yes and no. It’s well documented that increasingly, people want experiences over things and travelers today lead that trend. Today’s travelers need one of at least two things: a unique experience (for which they will usually pay more) and on-demand information about pricing. It’s more important than ever that your brand is front and center during all phases of research. It also means that your brand needs to reinforce the experience using digital.

Social Media Throughout The Customer Travel Experience

Social media is useful in all phases, but especially the exploratory phase. The exploratory phase is where initial budgets expand as experiences cement themselves. For example, a traveler may be thinking of going to Hawaii, and every airline flies there. But what airlines make the journey even more special? What location has the most unusual once-in-a-lifetime experiences? And how are real people experiencing those experiences? Integrating the day-to-day experience of the visitor on social media helps the travel shopper see themselves in the experience.  Moreover, today’s traveler wants to see a blend of “glossy” travel pictures combined with unfiltered real life.

But it’s more than that. Once the experience is over, what is your brand doing to reinforce their experience? Do you have a program in place which allows them to easily share their experience via social media? Do YOU share their experience back to them? That’s the cementing of brand loyalty and word of mouth almost all travel brands miss. How are you engaging your customers using digital while they are on-site? What can you do to turn complaints into delightful experiences? How can you show you’re engaged with their entire experience?

The other reason this is important is that the mobile experience is front and center. eMarketer predicted that in 2017, mobile bookings would surpass 40% of digital travel sales. Mobile is social and social is mobile. According to Expedia, 27% of Millennials have posted a potential trip on social media to canvas opinions before booking! Obviously, your website needs to be mobile-friendly, but how on-par is your social branding and advertising?

Does it provide a direct experience for booking?

Are you using chatbots on social to improve customer service?

How can you radically improve the investigation and booking phases using digital?

Convenience is exceptionally important to today’s traveler, who have embraced single-site travel booking experiences. BUT, today’s traveler is ALSO looking for boutique experiences, something particularly unique and for that, it’s almost better if it isn’t on a single-site because it gives the air of uniqueness. So balancing the booking trends with experience demand is important, and social media leads in this regard, because you have the change to meet the consumer where they are.

Millennials Don’t “Own” Social Media Travel

These technologies, like chatbots and mobile-friendly booking, are no longer for just the largest brands. They accessible and important for today’s traveler of all ages. It’s easy to think only “millennial” travelers are using these tools, but it’s simply not true. Consider that GenX’ers are in their mid-to-late forties already and their perfectly comfortable on Instagram and Facebook as well. According to Nielsen, Adults 35 to 49 were found to spend an average of 6 hours 58 minutes a week on social media networks, compared with 6 hours 19 minutes for the younger group.

If you’re looking to engage your potential and current audience in social media and digital branding for travelers, please contact us. We have ideas and most importantly the resources, to step up your digital travel branding in every phase of the experience.

What exactly IS brand trust and how do we measure it?

Brand trust is measured in many ways, sometimes we use a metric like a net promoter score. Sometimes the value of a brand is incorporated into EBITA, and we infer higher brand-value equals trust.

But really, what IS brand trust?  In a global environment where, according to the 2018 Edelman Trust Barometer, trust in institutions and media is at an all-time low, it’s more important than ever for brands of all sizes to keep ahead of the trust curve.

Neuroscientists have been researching the effects of our brains on trust with interesting results.  Neuroscientists have been researching the effects of our brains on trust with interesting results. In the book Brand Seduction-How Neuroscience Can Help Marketers Build Memorable Brands, Daryl Weber reveals how the unconscious mind is constantly picking up cues from our environment, including cues from brands, most of us don’t even realize our brain is doing this monitoring on our behalf. What this means though, is that every single subtle brand cue sends a message.

So how should we interpret trust in everyday execution and metrics analysis?

THE BRAIN ON FEAR

Think about the last time something you saw on social media enraged you. Chance are, just reliving that moment has your blood pressure spiking.  “Flight or fight” response, makes our brain neurons fire like mad. This, in turn, creates an emotional response. In contrast, our brain on trust is relaxed, open, I compare this state to homeostasis in the body. It’s the place our brain WANTS to be, but it’s also the place where triggers are not as emotional.

What this means is that emotional responses may NOT be positive for a brand trust. Take, for example, Facebook reactions. Content that triggers the most “viral” response is often content that creates anger, fear or other negative sentiments. But social media platforms (and their algorithms) aren’t yet evolved enough to understand that highly emotional reactions may not mean a piece of content is valuable for trust.The most viral content may do nothing to enhance trust. This does not mean that good never goes viral, but it DOES mean that computers don’t yet really grasp the difference,  even if humans (subconsciously) do.  But, humans are imperfect, and we’re often not even aware of our own reactions to messages.

This is to say, that in trust building, messages or ads that are viewed, but without huge emotional responses may actually be better for building trust. If you track reactions or sentiment on social, it might be disappointing at times to see that trust messages or messages built with trust intentions don’t get a lot of “lift.” But I would argue, that is exactly what you want from trust messaging.

LOW RESPONSE BUT MORE OF IT?

Imagine you’re making a special chocolate cake.
You create the first layer and ad the frosting.
It’s a good cake. It will taste good.
But it isn’t very impactful. So you add another layer. And another.
And before you know it, you have this impactful cake with layers of goodness inside. And when you finally EAT the cake, you enjoy it, even more, knowing there are multiple layers of goodness.  Trust is like that. The first layer of trust is good. It’s acceptable. But multiple layers of trust are better. Multiple layers of trust take time. The emotional response to trust is not “at the moment,” trust building is a front-loaded proposition. The payoff comes at the end. The payoff comes when the brand’s experience matches the anticipated trust. The brain remembers THAT satisfaction. Perhaps more subtly than an outraged response. But the brain DOES remember it at buying time. When you ate your beautiful chocolate cake, you enjoyed it. The next time you make a cake you’re more likely to make a chocolate cake over say, vanilla. This is how brand trust works.

The thing is, you need to reinforce that positive experience and positive response over and over. The subtle cues build up over time. But they can be replaced by constantly good experiences of vanilla cake too – because, you know, vanilla is equally yummy. Consistency is the key.

Have you ever known a brand one way than seen an ad that completely shifts the message? It’s jarring. Just today I was watching a conversation about a brand whose messaging, packing, product and ads were all luxury-level classy. Then they ran an ad showing a woman in panties with a pretty vulgar statement written on the panties. WOW! It got the attention of everyone, but overwhelmingly, their current customers were outraged, they thought they “knew” the brand, in some cases, people actually expressed betrayal.  These customers related to what they thought the brand was, a luxury-level classy product.  The brand’s trust has been shattered in the eyes of some. This particular ad may get high virality, but will the sentiment be overwhelmingly positive? And even it works, with what I call “a sugar spike” of sales, will those new customers be as loyal as the old ones? Will the old ones stick around?

Consistency is key. In branding trust, slow and steady wins the race. Look for consistently growing results, not “sugar spikes.” Sugar spikes mean you’re appealing to a specific audience over a short period of time, but not building any loyalty. That’s an even more expensive proposition than branding.

 

HOW DOES THE BRAIN BUILD TRUST?

We’re conditioned to trust our tribes.  Our brains attribute trust to brands who our tribe use. That’s why influencer marketing and customer reviews are so powerful. The person doesn’t even have to comment about using the product, they simply have to be seen using it.

One of the more brilliant examples of this is Jennifer Aniston’s water. This campaign works for two reasons: I KNOW Jennifer Aniston’s face already AND it’s consistent.  If you read any of the “celebrity” publications at all, you have seen Jennifer Aniston leaving the gym, getting out of her car or shopping with a bottle of water in her hand. SmartWater (and it’s parent company Coca-Cola) tapped into the inherent trust that Jennifer Aniston brings and then they gave her enough water to last a lifetime. Yes, Jennifer Aniston also appears in ads for this water, but the most memorable (to me, at least) are the pictures of her going throughout her daily life using the water. Every single time I open a magazine and there is a picture of Jennifer Aniston going about her daily life, she has SmartWater. This has been going on since 2015. Every single time I’m at the airport, I grab SmartWater, and I’m not even a particularly huge fan of hers, but somewhere in my brain I say “if it’s good enough for Jennifer Aniston, it’s good enough for me.” It’s not a conscious thought – it’s the brain operating and choosing based on those many layers. My hand just reaches for SmartWater, I don’t even really think about it. That’s what I mean by trust being a front-loaded proposition.

Zappos is another great example of brand trust. When Tony Hsieh started Zappos, he didn’t double down on ads, he doubled down on customer service. When the company was acquired by Amazon for $1.2 billion, 75% of its customers were returning customers.

 

BRAND ACTIONS OUTWEIGH ALL OTHER MESSAGES

If your water brand hires Jennifer Aniston and does all the same things as SmartWater did, but if it’s revealed that the water isn’t what it says it is, none of this will matter. Experience trumps all in trust. Worse, trust takes a long time to build, but it’s easily shattered. If you’re going to invest in trust, you must invest in an authentic way.

Above when I mentioned the jarring change of tone from classy to trashy, this also indicates that the brand isn’t clear on who it is and creates questions about the brand. “What other brand values are negotiable?” asks the brain. If this brand has built up trust with its existing customers, those customers now (even if subconsciously) question that trust.

An example of brand trust that does work is Red Bull. They’ve built their entire brand around adrenaline-fueled messaging. They went so far as to sponsor Felix Baumgartner when he jumped from space in 2012.  While this kind of stunt is absolutely designed to attract your attention, it’s also building brand trust – Red Bull’s customers know exactly what Red Bull stands for and they love it. Brand trust doesn’t have to be boring. 

IS BRAND TRUST WORTH THE INVESTMENT?

I suppose that depends on whether you’re in it for the long haul or not. Brand trust makes it easier for your customer to buy, creates triggers at the exact buying moment and that’s huge. But what else? Brand trust actually adds value to your company, makes it easier to attract talent and decreases costs because the product is easier for salespeople to sell. In the long run, brand trust saves money by also retaining customers.

In the end, brand trust is accessible to businesses of all sizes, but it takes commitment and consistency and yes, authenticity. You don’t need to be the biggest player on the block, just the most trusted.

In a world where trust in organizations is diminishing, building trust can be your most valuable asset – and because suspicion is so high for known brands, smaller niche brands who really do what they say and are consistent about it, have lots of room to develop that trust.

So what can you expect when you invest in brand trust? You might not see “sugar spikes,” and huge social media shares, instead you should see brand value reflected by consistent sales, repeat customers and even a stronger valuation that you’d have without it.

If you’re ready to invest in your brand, we are here to help you develop and execute your vision with aggressive elegance, contact us today.

Imagine your advertising and marketing becoming 2X more effective overnight. Using emotions in marketing and branding is the key to more effective campaigns

According to Roger Dooley, emotional ads work TWICE as well as rational ads. So it’s important your campaign incorporates emotion from the start. You can deploy these emotions through copy and creative in all formats, analog and digital.

Before you create your next campaign, check in with these powerful emotions in marketing and branding.  Be sure you’ve considered your strategy, both long and short term before deciding which emotion works best in your marketing.

Fear
Fear comes in many forms, and it creates a sense of urgency.

Fear also heightens any other emotion created alongside it and it drives us to make deeper connections with those we share the fear with-this is why scary movies create deepen relationships. 

There are several different kinds of fear, but two common types include:
“Fear Of Missing Out” (FOMO): This particular fear tends to work well on younger people in social media. This works particularly well for items with time sensitivity.
“Fear of Isolation”: closely connected to FOMO, fear of isolation, used in connection with health products, deodorant for example: “use this so you don’t smell, because when you smell, you become a social pariah.”

When to Use Fear in Emotional Marketing/Branding:

  • To drive leads
  • You have a specific and actionable solution
  • You have an easy, no stress way to buy

Happiness/Joy
What happens when we feel happy? You might be surprised.

It’s a fine line because if we’re too happy, we might not be motivated to purchase. But happiness DOES make us want to share. It seems good news travels fast. According to a study by Fractl these are the Top 5 emotions which drive viral content:

  • Amusement
  • Interest
  • Surprise
  • Happiness
  • Delight

When to Use Happiness in

in Emotional Marketing/Branding:

  • You want others to share your message
  • You want to build trust and loyalty
  • You can commit to happy content as a brand

Inclusion

One of our oldest motivations is the need to be part of a tribe, included in a group. For our earliest ancestors, it was a requirement for survival, today, that need is still a powerful motivator and when we have it, we feel safe which leads to loyalty.

When to Use Inclusion in

in Emotional Marketing/Branding

  • To attract or retain customers
  • When you can also utilize the fear of missing out
  • When you have the processes and platforms to create and sustain community

Anticipation

We’re hardwired to anticipate outcomes. We’re not always right, but we are always anticipating. You can use anticipation in a couple of different ways, to attract and retain customers.

Attracting customers with anticipation typically comes with a stimuli and an outcome. The faster the outcome, the more likely we are to repeat the stimuli. Once we’re hooked on the stimuli, the outcome frequency can become variable (you might have learned about Pavlov’s dog, this is the same theory). Gamification uses anticipation brilliantly.

Keeping customers with anticipation requires a product commitment (free sample with every order) or an anticipation experience connected to the product (why subscription boxes are so popular). You can create variables in the anticipation (products, frequency) that will actually heighten the anticipation.

Something else about anticipation: it DECREASES when we’re stressed and change can be stressful. This is why consistency in branding is so very important and why big changes for big brands are big-time risks. Can you think of a brand whose big change created major negative upheaval for them?

When to Use Anticipation in

in Emotional Marketing/Branding:

  • You have the willingness to keep the anticipation fresh
  • You want to build loyalty and repeat buyers
  • Your brand is elevated and/or lifestyle oriented

Expertise/Leadership

Making your customer feel like they’re the smartest/sexiest/most influential is a great way to get people’s attention. People love to be the most “something” of their friends and people will work to achieve this effect.

This marketing emotion is closely connected with our need for mastery and our innate value of time. Because of these two addition motivations, the harder you make it the more committed they will become to the process. It’s all about our emotional triggers again, we’re hardwired to commit more time to something we’ve already committed time to – this is the same theory behind the test drive and keeping you at the dealership during a car purchase.

Again, games do this quite well. Successful fitness trainers do this quite well.

When to Use Expertise and Leadership in your Marketing/Branding

  • When you have a unique process people can move through and see improvement
  • As a relationship builder, such as influencer marketing or tips and tricks your customers can use

Good luck and I look forward to hearing how you’re using emotion in your marketing and branding.