TRD Issue 36 - Insight: Three Steps to Elevate Your Brand Loyalty in 2023
Good morning,
As we present our latest issue of Insight, we'd like to extend a heartfelt greeting to all our community members — Happy Mid-Autumn & Moon Festival! May this auspicious occasion bring joy, prosperity, and closer ties with your loved ones.
This special edition focuses on the transformative power of effective brand membership management and loyalty programs, a critical success factor in today's competitive retail landscape.
We're committed to empowering you with the tools and knowledge you need to excel in this dynamic retail environment. So, as you celebrate the holiday with mooncakes, take a moment to explore the insights we've curated just for you.
The Retail Direct
About 91APP
Founded in 2013, 91APP, Inc. is the premier OMO (online-merge-offline) SaaS company, providing one-stop omnichannel retail solutions in Taiwan, Hong Kong, and Malaysia. It offers advanced Commerce Solution and Marketing Solution that enable retail brands to penetrate the D2C (Direct-to-Consumer) e-commerce market and drive their operational benefits to their full potential. In 2021, 91APP became the first SaaS company to be listed in Taiwan and has been named one of Taiwan's "NEXT BIG" companies by Startup Island TAIWAN.
For more information about 91APP (TWO: 6741), visit www.91app.com .
Introduction
Many brand owners understand the importance of membership and membership management. With a solid plan, businesses can retain regular customers and generate positive word-of-mouth. With the rise of price-cutting competition among e-commerce platforms, declining business district crowds, and expensive traffic advertising, the cost of each order is increasing, making it less cost-effective to operate a business.
In response to these challenges, retailers and brands such as POYA and Timberland , as well as other small and medium-sized brands in Taiwan, have begun investing in membership management and establishing loyalty programs. These efforts aim to develop a stable market foundation and ensure long-term success.
Creating a comprehensive membership system is crucial if you're looking to attract new customers and cultivate loyalty among your existing ones. In the following section, we will provide a step-by-step analysis of the best practices for membership management and building brand loyalty.
The Benefits of Membership Management for Your Brand
Effective member management involves analyzing data to identify members with the highest spending potential and likelihood of becoming VIPs. This allows targeted marketing efforts to encourage repurchasing and improve overall brand performance.
It is essential to prioritize VIPs and show them genuine appreciation, as they will likely continue supporting the brand.?
By providing a satisfying shopping experience and offering exclusive discounts and new products, brands can create a loyal customer base that generates significant profits.
According to Harvard Business Review , retaining just 5% of members can result in a 100% increase in profits, with up to 60% of new customers coming from member recommendations.
In today's expensive advertising landscape, cultivating a stable base of repurchasing members and positive word-of-mouth can be enough to turn a struggling brand into a profitable one.
Precise Digital Marketing by Data-Driven Member Management
Collecting and managing member data is crucial for brands and retailers to make informed business decisions and provide personalized services to their customers. Accurate and up-to-date data can help them tailor their offerings to meet individual needs and preferences, ultimately fostering more robust relationships with their members.
Here are four things a brand or retailer should consider when planning their member management strategy:
How Segment Marketing Can Cut Your Marketing Costs in Half
Earlier, we talked about being bold in treating your VIPs well. Let's focus on safeguarding your members while increasing your brand's revenue.?
The solution is to choose a select few members who make significant contributions and invest more in them.
Our analysis of client data shows that providing targeted discounts to "high contribution" members cuts costs in half compared to indiscriminate discounting.
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Based on the chart displayed, prioritizing the needs of your top 5% loyal customers can generate nearly 20% of your overall sales.
This percentage can even be higher than 20% for numerous brands since loyal customers make purchases for themselves and refer their friends for group orders.
Countless brands and retailers have already experimented with this strategy, which saves costs and boosts return rates.
Increase Conversion Rates and Screen out High-Potential Members with Ease
91APP's Commerce & Marketing Solutions offer a convenient "Audience Segmentation" function to help brands efficiently identify and communicate with high-potential members.?
With just a few clicks, you can select various criteria, such as membership level, purchase history, browsing behavior, and coupon usage, among others, from over 30 filters. This feature ensures accurate communication with the target audience, saving time and effort.
Brands can accurately communicate through their mobile app, email campaigns, and text messages by including/excluding members with various characteristics and behaviors in 91APP Marketing Cloud, which saves unnecessary communication costs and significantly increases conversion rates.
Member Management Tutorial - 3 Steps to Build Brand Loyalty
If your brand desires to build a loyal customer base, you can follow these three steps to enhance its membership management policy:
Step 1: Attract new customers to become members
In addition to offering high-quality products and services, customers can become members and enjoy exclusive discounts such as registration gifts, discount coupons, discount codes, and reward points.
To attract non-registered customers to become members, providing an exclusive privilege can be communicated through email, text messages, or a call by the store clerks. Even those who have made purchases but have yet to register can benefit from these offers.
Step 2: Set membership levels and exclusive rewards
If you have a significant number of members, it is essential to implement a membership grading system in your loyalty program. This will allow you to provide varying preferential rewards and exclusive gifts to members based on their purchase history or accumulated amounts within a year, ultimately enhancing their loyalty to your brand.?
The fundamental components of a loyalty program are as follows.
The Basic elements of a loyalty program
Step 3: Providing Valuable Member Services and Maintaining Good Communication
Membership programs are not solely focused on offering discounts.
Nowadays, numerous brands utilize content marketing to provide members with helpful information, enhancing brand awareness.
Clothing brands, for instance, use communities and groups on social media, live streams, and official blogs to promote dressing tutorials, maintenance tips, and product usage guidelines. This approach helps develop strong relationships with loyal customers and cultivates a positive connection between members and the brand.
Many brands use mobile apps to share practical content and communicate with their members. While Facebook has limited reach and producing EDMs can be time-consuming, mobile app push notifications have a 100% reach rate. With just two lines of text, all members can quickly receive updates about new products, live broadcasts, blogs, and other important information. This is a great way to attract inbound customers.
In addition, you can create a response channel exclusively for members to help you monitor any service errors. This will enable your most loyal customers to assess the quality of your brand's service and deepen the communication between your brand and its members.
Conclusion
Effective membership management is more crucial than ever in today's competitive retail landscape. The article we've discussed illuminates retailers' challenges, from rising customer acquisition costs to the need for personalized engagement.?
It also offers a roadmap for building a robust membership system that fosters brand loyalty. This is where 91APP's Commerce & Marketing Solutions come into play. With its advanced features, 91APP enables brands to segment their audience efficiently and communicate in a personalized manner, optimizing costs and boosting conversions.
So, what's the next step?
If you're a brand or retailer aiming for sustainable growth, it's time to act—leverage 91APP's comprehensive solutions to manage and enrich your customer relationships. Visit 91APP's website or contact our team today to transform your retail strategy from mere transactions to meaningful interactions.