Shifting Customer Behaviour Post Covid – Part 1

“Sitting in the virtual boardroom, we watched as eyes started darting across the Zoom to see who had answers. Covid-19 had thrown us a curveball and the business we had run like clockwork for years, was instantly different.”

At igo we have seen it all over the last 20 odd years, and this opening statement from one of our recent client conversations, reminded us that while the disruption can come from anywhere. We must review and reassess constantly, and work through these seven key considerations that can be applied to solve brand and business concerns in this post-Covid world. 

Join us in part one of two, as we unlock insights from what we have learned from running over thousands of promotions and campaigns over the years. 

What we know for certain is that almost every conversation we have leads to a consistent desire – motivating change. Shifting behaviour. Driving growth. And that’s why our clients come to igo

Looking for loyalty? Start with what you already know.

An analysis of 2,000 businesses found loyal customers drove 80% of Revenue.2

Brand trust counts for a lot, but it counts even more when the world you know is suddenly different. The math stacks up when you consider that while loyalty might only drive 20% of your business sales, it can count for 80% of total revenue2. So while the cost of acquiring new customers can sit between 5 and 7 times higher than activating a loyal customer1, being clear on the objectives and opportunities that exist in the balance between acquisition and loyalty engagement tactics is key.

Knowledge is power

How we act on this at igo, is that we turn to a combination of first and third-party data to understand trends and behaviours in customer transactions. By starting with what we know and implementing solutions that act on signals of loyalty, means we can help our clients maximise value out of their loyal customer base – quickly, and efficiently.

There are patterns in behaviour.

Don’t just look for signals of loyalty, look for signals of high value loyalty.

Loyalty comes at a (heavily discounted) price and we see all too often the competitive nature of the market today driving persistent and competitive switching of customers between brands. In fact, customers are quicker than ever to swap brands as they chase that next deal. Brands that are winning the war on switching, have leveraged customer experience signals to create sticky moments. Moments that help customers feel safe and choose to stay with the brand they have aligned with.

Not all patterns are positive patterns

As we design solutions for our clients, we really focus on driving positive changes. Repetitive positive interaction and changes in behaviour help us build a wealth of knowledge in the right type of behavioural data.

By planning and collecting data that can shape and inform the behaviours we want to learn from, we can find more meaningful patterns. And what we learn from these meaningful engagements help set up short- and long-term strategies for both nurturing and growing loyalty.

Consumers want relationships with relevant and relatable brands.

There is only one way to be relevant and relatable, and that is to be empathic.

Blast tactics are increasingly a thing of the past. However, the marketing and media mix is increasingly fragmented. Marketing automation and personalisation are both to a degree meeting consumer expectations for more meaningful messages, but creating new, increased demands for meaningful engagement in ways that are harder for a brand to facilitate and nurture. 

We must listen and understand first

Businesses are facing pressures from the marketplace, this creates simultaneous urgency and panic. At igo we work efficiently, but with empathy - we need to slow down and listen closely to what it is we are trying to solve before we rush and act. Identifying the right business goal first can inform the right marketing objective. This allows us to comprehend and construct the role of data, message and tactic that can drive the change we are really after.

Money Money Money

Carrots and stick pay for mortar and bricks.

Cashback offers? Incentivised purchases? If Money could walk the talk in the 70’s with enough pizazz that hit-makers Abba could coin a song from it, we should’ve known by then that money matters and can buy that final decision.

At that point of sale moment, or a final offer presented in the digital checkout, Cashback offers are a fantastic mechanic for acquiring customers. The mechanic isn’t new at all but is often used to solve short-term goals.

Incentivising the sale of your product works incredibly well, and we’ve seen significant results from this over the years. These last-minute ‘carrots’ work well in store too. A wobbler on a shelf lets you know you’ll get $100 back on a microwave – Sold! This incentive takes the pain out of choosing the final product or brand you want to take home with you. But all too often we see this mechanic as an acquisition tactic on its own. What we know is that this tactic or mechanic set up in a framework of solutions can that that acquisition through an incentivised and rewarding brand experience beyond just the start of the journey.

We see the excellent results when clients think of the experience beyond just the sale. Planning for a series of communications that really nurtures the new customer and brings them closer to the brand. In itself this has immense potential in building loyalty early in the relationship. It’s the gateway to important data that can shape your business.

$2 in, $10 out.

Affordable growth is a strong theme at the moment. The uninformed reaction is to rush out and find new customers. However, the value that can be extracted from existing and loyal customers remains largely underestimated – and most often this is due to a lacking data and segmentation strategy.

Our ability to work with a business to extract (or even create) first party data that is useful to the business is only the first step in creating a roadmap for affordable growth. We have access to a lot of data that can help us improve what you think you know about your customers, or what you perceive to be their triggers of loyalty. It’s when we marry the right data sets that we start seeing patterns, behaviour shifts and opportunities for growth.

Join us for part two of this insightful perspective next week.

Working with prestigious Australian brands like ANZ and Qantas, igo is the go to for the design, implementation and measurement of bespoke Loyalty Programs.

1. CMO Loyalty Stats 
2. Marketing Profs Customer Loyalty Facts
3. Hays Marketing Study