Market research RE: loyalty programs

Serious Business 34 replies 972 views
justincredible's avatar
justincredible
Posts: 32,056
Sep 14, 2012 3:17pm
Say you're a loyal customer of product X. It's something you buy one or two times a month. For the sake of the discussion we'll say it's deodorant.

If the brand had a loyalty program, what features/perks would you expect or hope to see when joining? Let's say that free product after so many purchases is a given. Anything else you would like to see or expect to see?
Raw Dawgin' it's avatar
Raw Dawgin' it
Posts: 11,466
Sep 14, 2012 3:45pm
justincredible;1271011 wrote:Say you're a loyal customer of product X. It's something you buy one or two times a month. For the sake of the discussion we'll say it's deodorant.

If the brand had a loyalty program, what features/perks would you expect or hope to see when joining? Let's say that free product after so many purchases is a given. Anything else you would like to see or expect to see?
Sample of new products they come out with.
Fab4Runner's avatar
Fab4Runner
Posts: 6,196
Sep 14, 2012 3:48pm
Raw Dawgin' it;1271045 wrote:Sample of new products they come out with.
That was going to be my suggestion, too.
justincredible's avatar
justincredible
Posts: 32,056
Sep 14, 2012 3:49pm
Good suggestion. Unfortunately the product line is pretty set as it is.
mcburg93's avatar
mcburg93
Posts: 3,167
Sep 14, 2012 3:55pm
Discounts on the product.
Heretic's avatar
Heretic
Posts: 18,820
Sep 14, 2012 3:58pm
mcburg93;1271059 wrote:Discounts on the product.
Yeah, that'd be it. Kind of like how if you use the Kroger card a lot at Krogers, you get coupon books tailored towards things you frequently buy. That sort of thing.
sleeper's avatar
sleeper
Posts: 27,879
Sep 14, 2012 3:58pm
A quality product is most important. No one really cares about gimmicks; well no one with money cares.

What is your target audience? Women? If so, all they care about is getting a sale regardless if the product sucks. If men, you'll have to aim for their cost to benefit ratio, which is subconscious.
justincredible's avatar
justincredible
Posts: 32,056
Sep 14, 2012 4:07pm
sleeper;1271063 wrote:A quality product is most important. No one really cares about gimmicks; well no one with money cares.

What is your target audience? Women? If so, all they care about is getting a sale regardless if the product sucks. If men, you'll have to aim for their cost to benefit ratio, which is subconscious.
Current website stats are as follows:

Active males: 3,000
Active females: 6,000

34 and under: 500
35-45: 1,100
46-55: 2,500
56-65: 3,000
66 and over: 2,000

The 9,000 members have entered almost 60,000 codes. Each product the buy has one code on the packaging so each member has averaged about 7 purchases over the course of ~21 months. A lot have entered one code. A lot have entered the max of, I think, 25 codes.
sleeper's avatar
sleeper
Posts: 27,879
Sep 14, 2012 4:29pm
Definitely market heavily towards sales/discounts. EZ money.
justincredible's avatar
justincredible
Posts: 32,056
Sep 14, 2012 4:41pm
The way the current system works is you enter 3 codes and you get a BOGO coupon. There is a current max at 10 BOGOs (set by the client). It has worked well but the client would like to expand the program.

Now that I type that I realize the max codes is 30, not 25. Learn to math.
justincredible's avatar
justincredible
Posts: 32,056
Sep 14, 2012 4:42pm
Also, this is all obviously made up because I'm unemployed.
Glory Days's avatar
Glory Days
Posts: 7,809
Sep 14, 2012 6:39pm
justincredible;1271080 wrote:Current website stats are as follows:

Active males: 3,000
Active females: 6,000

34 and under: 500
35-45: 1,100
46-55: 2,500
56-65: 3,000
66 and over: 2,000

The 9,000 members have entered almost 60,000 codes. Each product the buy has one code on the packaging so each member has averaged about 7 purchases over the course of ~21 months. A lot have entered one code. A lot have entered the max of, I think, 25 codes.
old people dont use the internet, this hypothetical scenario sucks!
W
WebFire
Posts: 14,779
Sep 14, 2012 7:21pm
justincredible;1271107 wrote:Also, this is all obviously made up because I'm unemployed.
And have two iPhone 5s. Typical.
S
Sonofanump
Sep 14, 2012 9:47pm
justincredible;1271080 wrote:Current website stats are as follows:

Active males: 3,000
Active females: 6,000

34 and under: 500
35-45: 1,100
46-55: 2,500
56-65: 3,000
66 and over: 2,000

The 9,000 members have entered almost 60,000 codes. Each product the buy has one code on the packaging so each member has averaged about 7 purchases over the course of ~21 months. A lot have entered one code. A lot have entered the max of, I think, 25 codes.
Looks like you need to get younger customers, unless it is a produce that one uses inherently more as the person gets older. Is the two to one ration between males and females due to use or who does the shopping for the household?
justincredible's avatar
justincredible
Posts: 32,056
Sep 14, 2012 10:02pm
Sonofanump;1271208 wrote:Looks like you need to get younger customers, unless it is a produce that one uses inherently more as the person gets older. Is the two to one ration between males and females due to use or who does the shopping for the household?

It's not a product that young people need, generally. There is no way to target towards them. And the 2:1 ratio is due to who does the shopping, I'd guess. I have no idea what the split is for use but I'd guess it's close to 50/50.
S
sportchampps
Posts: 7,361
Sep 14, 2012 11:37pm
The best loyalty programs are the ones that are personalized. Not knowing exactly what the product is I would suggest a bogo coupon for a birthday. This gives a perception of a personalized touch. Another great tool to gain sales is to reward your most loyal customers with discounts on other products. For example maybe the deodorant company also makes shampoo. This will give the perception of a reward while also getting them to try another one of your company's products. Lastly, the more someone buys the more they should be rewarded. I wouldn't cut off my most loyal customers from earning rewards as this will give a perception that less loyal customers are more valuable. As always in marketing perception is reality.
M
Manhattan Buckeye
Posts: 7,566
Sep 14, 2012 11:49pm
"The best loyalty programs are the ones that are personalized."

100% correct. The best way to get customer support is to make your customers think they are part of the company.

This happens with automobiles (and pretty much funds NASCAR), and other service providers. It isn't as easy with products but can happen. I've never been an auto loyalty guy but will do so with airlines. I won't fly Delta if at all possible but will take a Sing Air flight at any opportunity. The latter makes me think I am part of the company, they address me by Mr. MB at the gate, they know what beverage I want when I take my seat and all around make me think I am more than just a passenger. It also doesn't hurt that the flight attendants are ridiculously hot.
password's avatar
password
Posts: 2,360
Sep 15, 2012 12:01am
Are you marketing vitamins?
Glory Days's avatar
Glory Days
Posts: 7,809
Sep 15, 2012 4:41am
password;1271293 wrote:Are you marketing vitamins?
probably centrum silver
W
WebFire
Posts: 14,779
Sep 15, 2012 10:30am
Manhattan Buckeye;1271285 wrote:"The best loyalty programs are the ones that are personalized."

100% correct. The best way to get customer support is to make your customers think they are part of the company.

This happens with automobiles (and pretty much funds NASCAR), and other service providers. It isn't as easy with products but can happen. I've never been an auto loyalty guy but will do so with airlines. I won't fly Delta if at all possible but will take a Sing Air flight at any opportunity. The latter makes me think I am part of the company, they address me by Mr. MB at the gate, they know what beverage I want when I take my seat and all around make me think I am more than just a passenger. It also doesn't hurt that the flight attendants are ridiculously hot.
Maker's Mark's ambassador program is one the best at doing this. Really makes you feel like you are special and part of the company. You're not really though.
I
I Wear Pants
Posts: 16,223
Sep 15, 2012 12:37pm
WebFire;1271143 wrote:And have two iPhone 5s. Typical.
No, the iPhone 5s will likely come out next year. He is getting two of the iPhone 5.
I
I Wear Pants
Posts: 16,223
Sep 15, 2012 12:38pm
justincredible;1271217 wrote:It's not a product that young people need, generally. There is no way to target towards them. And the 2:1 ratio is due to who does the shopping, I'd guess. I have no idea what the split is for use but I'd guess it's close to 50/50.
So it's a product where people enter codes online that's targeted at old people.

I'm sure that'll work out swimmingly. :rolleyes:
justincredible's avatar
justincredible
Posts: 32,056
Sep 15, 2012 1:54pm
I Wear Pants;1271495 wrote:So it's a product where people enter codes online that's targeted at old people.

I'm sure that'll work out swimmingly. :rolleyes:

It's been going well for almost two years, did you not read the stats? Almost 60k codes have been entered so far by roughly 9k members.
I
I Wear Pants
Posts: 16,223
Sep 15, 2012 2:58pm
justincredible;1271590 wrote:It's been going well for almost two years, did you not read the stats? Almost 60k codes have been entered so far by roughly 9k members.
Of course I read the stats, I do not allow facts to get in the way of mediocre jokes.
Glory Days's avatar
Glory Days
Posts: 7,809
Sep 15, 2012 4:03pm
[h=1]“Facts are meaningless. You could use facts to prove anything that's even remotely true.”[/h]