MackCollier.com

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Does Your Company Need a Word of Mouth Accelerator Program?

Accelerator programs have become quite popular in recent years as a way to accelerate the growth of new companies. Typically, when a company is accepted into an accelerator program, the company is provided with mentorship, training, and often additional financing. The idea is to take a company that shows promise and growth, and accelerate that growth.

Clubhouse has taken an interesting spin on accelerator programs and the social audio app has created one for its users. In this week’s edition of Monday’s Marketing Minute, I briefly mentioned a new Creator Accelerator Program that Clubhouse is launching. In short, the program is designed to take promising creators (room as well as club hosts), and give them the tools they need to accelerate the growth of their rooms and clubs. This help and support can come in several forms:

  • Audio equipment to improve the quality of the shows
  • Creative and strategic instruction from Clubhouse’s team
  • Helping creators find guests for their shows
  • Helping creators design and create promotional materials
  • Helping creators promote their shows both on and off Clubhouse
  • Providing a monthly stipend to creators and helping to match them with brands on potential sponsorships, etc.

Overall, I think this is a fabulous idea, and it will go a long way toward further strengthening the loyalty that Clubhouse users already have for the social audio app.

 

What About A Word of Mouth Accelerator Program?

So this got me to thinking: If Clubhouse can create an accelerator program for its users, why can’t your company create one for its customers? What if your company created a Word of Mouth Accelerator Program? A Word of Mouth Accelerator Program would take customers who are already creating word of mouth around and about your brand, and it would accelerate their efforts.

Here’s an example: Let’s say Tim is a tech blogger, and a fan of Hewlett Packard products, and owns an HP laptop, which he loves. Tim’s blog is called Technically Speaking, where he writes about the tech industry and covers emerging products and technologies. While Tim loves his blog, it’s pretty much a weekend project for him, as he has a full-time job that takes most of his time during the week. When he has time on the weekends, he will write a new post or do a product review. He typically writes 2-3 posts a month.

Although Tim doesn’t have the time to create content regularly, his posts and YouTube videos where he reviews new products have developed a small following of fans who enjoy his style and delivery. And who identify him as an ‘HP fanboy’.

Tim would be an ideal candidate for a Word of Mouth Accelerator Program. He is already creating content that promotes the HP brand, and his content has proven to be popular with his audience. His audience also understands that he loves the HP brand, and as a result his audience has a more favorable impression of HP.

If HP launched a Word of Mouth Accelerator Program, here’s some of the ways they could help Tim:

  • Give Tim access to a design team that will help Tim brand his content across all his content channels, including his blog, YouTube channel, and all social media platforms he uses
  • Work with Tim to give him access to new products so he can review them on his blog. HP likely has a program now for press and publications to give them access to new products for reviews, so they could easily add Tim to this program
  • Give Tim a new HP laptop and all the audio and visual equipment he needs to create better content
  • Give Tim access to a Virtual Assistant who will work with Tim to schedule social media posts, maintain his content channels, and help with the content creation process
  • Work with Tim to connect him to HP’s SMEs (Subject Matter Experts) to secure interviews for both his blog and YouTube channels, or to simply provide advice on the tech content he creates
  • Work with Tim and HP’s partners to help secure sponsors for Tim’s content across all channels

All of these steps together would work to accelerate Tim’s growth and his ability to create content. It would also deepen his loyalty to the HP brand, so as his audience grows, that audience will be further exposed to the HP brand. In fact, as Tim’s audience grows, it’s easy to see a point at which Tim decides to quit his day-job and become a full-time content creator.  Sponsored by HP.

In short, a Word of Mouth Accelerator Program would take Tim’s limited ability to create positive word of mouth around and about the HP brand, and accelerate it. If you imagine taking such a program and having say 10 content creators, it’s easy to see how your brand could quickly amplify the positive word of mouth that these customers create about your brand. As the Word of Mouth Accelerator Program grows, you will have more content creators applying, and more promising candidates to choose from. Which further guarantees the success of the program.

 

Wait, isn’t this just a Brand Ambassador Program?

A Word of Mouth Accelerator Program would be similar to a traditional Brand Ambassador Program in such regards, but not the same. Remember that a brand ambassador program benefits your company in four main ways:

  1. By increasing brand promotion
  2. As a reputation management tool
  3. By helping with customer service and support
  4. By increasing customer feedback

A Word of Mouth Accelerator Program would help generate more promotion for your brand. So it could be a standalone initiative, or it could live within a larger brand ambassador program.

If you think about it, a traditional brand ambassador program has always been a way to accelerate certain behaviors that your customers are already engaging in.

For instance, happy customers are already promoting your brand. They are already defending your brand to other customers. They are already proactively helping other customers with support, and they are already soliciting and giving feedback to your company. A brand ambassador program is simply a way to give them better tools and support from the brand in order to accelerate their efforts.

A Word of Mouth Accelerator Program works on the same strategy. It takes a form of behavior (creating promotion for the brand via Word of Mouth) that’s beneficial to the brand, and accelerates it.

I love the idea of a Word of Mouth Accelerator Program as a way to support customers who are already creating positive Word of Mouth for your brand, and to give them the tools and support to accelerate their efforts.

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Monday’s Marketing Minute: Personalization Drives Revenue, Nike’s Founding Marketing Principles, WOM is Still King

Happy Columbus Day and Happy Monday! I hope everyone has a fantabulous week! I wanted to share a few marketing and business stories that caught my eye over the last few days:

My goodness, but my friend Kelly Hungerford finds so many great business and marketing articles. She’s a must-follow on Twitter. This study she shares found that businesses that personalize the marketing communications they deliver to customers see increased revenue from those customers. The study also found that the more customized the personalization, the higher the percentage of companies that realized increased revenue. So a more robust and customized personalization strategy works better, but of course will cost more. So there’s the fine line to walk between cost and benefit.

 

I love this list of the marketing principles from the first head of marketing for Nike, circa 1980. In particular, I love the first two rules:

1 – Our business is change

2 – We’re on offense. All the time.

This speaks to a leaders’ mindset. Nike is saying upfront that its marketing will be proactive, not reactive. It will set market trends rather than respond to them. I love that.

https://twitter.com/MohapatraHemant/status/1314818580198817792

 

Word of mouth is still the King when it comes to recommendations. A recent study from Bluecore found that Word of Month, Online Ads and Influencers were the top three drivers of recommendations. I did think this quote from the article was interesting: “However, when sorting by age, the results indicate that younger consumers are notably more impacted by the top three channels than older consumers. Comparing those younger than age 45 to those who are older, differences can be seen in the influence attributed to online ads (55% vs 30%), email (47% vs. 40%) and word of mouth (71% vs 59%).”  This suggests that as customers age, they are perhaps less receptive to recommendations from digital or younger sources, and more open to sources that they have had a longer exposure to?  Maybe, it’s interesting to ponder.

 

That’s it for this week, I hope yours is wonderful! Thanks for reading, see you back here in 24 hours!

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Here’s What Every Perfect Product Review Has

Think about what would be the perfect review for your product. Think about the elements it would include, what the customer would highlight.  I bet you have in mind a list of features you want the customer to mention in their review, right? Maybe you want the customer to point out that your product is reliable, right? Also add some general statements about how awesome and trustworthy your brand is, perhaps? Put all this together and you would have the perfect review for your product, right? The perfect mixture of highlighting all the right features, while also pointing to the reliability of your brand.

I can assure you that none of that comes close to defining the perfect product review.

When many companies think about what defines a great product review, they focus on what they want the customer to say about the PRODUCT. They have a list of all the features and attributes they want the customer to mention, maybe a couple of gushing compliments about the brand in general.

Instead, the perfect product review is one where the customer talks about THEMSELVES. But…they talk about themselves in the context of how your product made them BETTER at something.

Here’s a snippet from one of my favorite reviews for my book, Think Like a Rock Star:

“Second, more than any other I’ve read, the book inspired me to take action. These are practical ideas that you can implement right away, not well-meaning tips to put in your idea file, never to be seen again. I hadn’t even finished reading chapter one, and I already implemented one of his ideas.”

See the difference? This review isn’t talking about me or the book, it’s talking about how reading the book prompted a positive change in behavior FOR THE READER. This is what I want to see as a customer reading reviews, I want to know how the product IMPROVED the life of the customer that wrote the review. Because if it helped the customer who wrote the review, that makes me believe it can help me as well.

The perfect product review is one where the customer talks about themselves positively. The customer talks about how your product made a positive change in their lives.

 

Which review for an SUV do you think is better?

“This is the best car I’ve ever owned.” – Positive about the car.

“Driving this car made me feel safer.” – Positive about how the customer felt driving the car.

 

Which review for dog food do you think is better?

“It was a great deal, easy to serve portions, and the price was right.” – Positive about the dog food.

“I noticed that my dog was more active and seemed happier as soon as he started eating this.” – Positive about the change in behavior of the owner’s dog.

 

Which review for a camera do you think is better?

“This camera comes with all the bells and whistles you need to take great pictures.” – Positive about the camera

“This camera made me a better photographer.” – Positive about how the camera changed the behavior of the customer

 

If you think about it, we don’t buy products, we buy the change in our lives that happens when we own those products. When we buy a car, we aren’t buying the object, we are buying what the car allows us to do.  We aren’t buying the laptop, we are buying what the laptop allows us to do. We aren’t buying the mattress, we are buying a good night’s sleep.

Think about how your marketing helps influence the reviews your products receive. The features you highlight in your marketing are often the ones customers highlight in their reviews. What if your marketing helped customers understand how their lives would change as a result of owning your product? Customers would buy your product based on the promise of the change or changes it would make in their lives. Then if your product met the customer’s expectations, that would be shared in their product reviews.

Sell the benefit of your product, more than the product itself.

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Here’s How the Best Customer Loyalty Programs Create Happy Customers

Have you ever heard the saying ‘Money can’t buy you happiness’? It turns out, money CAN buy you happiness, depending on what you buy with it. Science has discovered that money spent on products does give you happiness, but it is short-lived, and decreases over time. For instance, think of how happy you were with your first smartphone purchase. It was likely a revolutionary change in technology from your boring flip-phone! Suddenly, you could browse the internet seamlessly on your phone. And the apps! Also, you could type on a semi-real keyboard, right on the screen of your phone!

It was all so magical, like something out of the movies. Then a few months later, a newer version of your smartphone came out. With new features that your smartphone didn’t have. Suddenly, your smartphone was obsolete. And so was your happiness with the purchase.

If buying products doesn’t give us lasting happiness, then what can we spend money on in order to make us happy?  Again, science has found the answer; If you want to buy happiness, spend your money on experiences. Here’s why this works; Let’s say you and you family have a trip planned to Italy for the Fall of this summer of next year. For all the time up till you leave for that trip, you and your family will plan out all the amazing sights and events you will enjoy while in Italy. Then while on the trip, you and your family will be experiencing Italy and all the wonderful sights and sounds. Then when you come home, and for all the years that follow, you and your family will relive the moments that you created while in Italy. As you and your family retell and relive the trip, your enjoyment of the trip will INCREASE over time. It’s precisely the opposite of when you spend money on products. Whereas your happiness with a product purchase decreases over time, your happiness with experiences such as travel typically increase over time.

So it stands to reason, if you want the members of your customer loyalty program to be happier as members, you should focus your loyalty program on offering members better experiences, as much as you offer products or discounts.

 

What does a customer loyalty program based around experiences look like?

You’re grocery shopping, and it’s time to buy cereal for your kids. They like Apple Circles and Honey Nut Loopies equally, so you typically grab whichever one is on sale.  But not today. Because you just joined the ‘loyalty’ club for Apple Circles, and they sent you a $1.00 off coupon, so today is an Apple Circles day! For most brands that offer a customer loyalty program, this is typically what it looks like. Members sign up, get some coupons, and go on their way.

Unfortunately, simply handing out coupons or giving a price reduction doesn’t build loyalty to the brand, it builds loyalty to the offer. The problem with competing on price is that as soon as another brand offers a cheaper product, you lose business.

But for many products, offering a lower price can actually hurt business. Let’s apply this same ‘coupon’ mentality toward loyalty programs for say…..a luxury brand.  Let’s say you just bought a new Ferrari for $400,000.  Next year when the new models come out, you are personally invited to join Ferrari’s Loyalty Program. Which offer do you think a Ferrari owner would be more interested in:

1 – A 10% discount on new models.

2 – A chance to buy one Ferrari from a limited production run of 50 cars that’s being offered strictly to members of the Ferrari loyalty program. Each of the 50 Ferraris will be signed on the dashboard by Piero Ferrari, son of Ferrari founder Enzo Ferrari. In addition, the owner will be flown to Italy to tour the Ferrari production plant and view his Ferrari as it is being assembled, then join other members of the Ferrari loyalty program for a private dinner at the Ferrari Estate.  The cost is one million.

If you’re buying a Ferrari, a lower price is likely a deterrent to purchasing the vehicle. Given this, Option B, even though it is almost three times as expensive than Option A, would likely be far more popular to Ferrari customers. Also note that with Option B, the experience is what’s so important.  You’re not just buying a Ferrari, you’re buying a Ferrari that only 49 other people in the world will own. In addition, you’ll get to go to Italy and personally watch your vehicle being assembled, then you’ll have dinner with the Ferrari family at their estate. If you have enough money to buy a Ferrari, the added experience of such a trip would be well worth the additional money to you.

But this extreme example also illustrates why it is so important to focus your customer loyalty program on offering a better experience than it is a better price. Let’s go back to the Ferrari example for a minute. Let’s say you wanted Option A, the 10% discount on a new Ferrari. That would likely save you $25k-$40k. A huge amount of money! But would even this massive savings really make you any more loyal to the Ferrari brand? On the other hand, if you took Option B, you would get a trip to Italy to Ferrari’s production plant. You’d get to talk personally to the engineers and craftsmen that were assembling your vehicle for you. Then you’d get to go to the Ferrari Estate and talk personally to the members of the Ferrari family, learning more about them and the brand all along the way.

Option B would give you a much better experience with the Ferrari brand, and as a result, it would do a much better job of making you more loyal to the Ferrari brand. Even if you took the 10% discount off a Ferrari in Option A, that wouldn’t make you more loyal to the Ferrari brand, it would only make you more loyal to the OFFER.  If Lamborghini came out with a loyalty program and offered a 20% discount on new models, well guess what you would do?

But when your brand creates a customer loyalty program based on giving members a better experience, it actually deepens loyalty to the brand. Let’s apply this thinking to our first example of shopping for breakfast cereal:

It’s a week later, and you and a friend are shopping together, and you’re on the cereal aisle. Since you are a member of the Apple Circles loyalty program, you have your $1.00 off coupon for Apple Circles in hand. You grab a box and smile to yourself, knowing that with this coupon, you’ll only be paying $1.86 for this box of Apple Circles. As you go to put the cereal in your buggy, you look over at your friend and notice she is buying a box of cereal that costs $4.57!  What is she thinking?!?  You decide it’s time to educate her.

“Why are you paying so much for that cereal?” You ask. “That’s almost $5, I’m paying less than $2 for mine!”

Your friend leans over and looks at what cereal you bought. “Honey, you couldn’t pay me to buy that stuff”.  “What?!?  Why not?”, you ask. Your friend then takes your box of Apple Circles and starts walking you through the ingredients, and how bad they are for your kids.  Artificial sweetener this, high-fructose corn syrup that, too much sugars, too much carbs, not enough vitamins, etc etc.  You can feel your face dropping as you learn that you were about to feed your children poison in a box.

“Wait a minute!”, you exclaim, “How do you KNOW all this!?!?”

You friend then tells you about her loyalty program. The one she’s involved with didn’t give her a coupon off that $5 cereal, instead, it gave her access to her own nutritional expert as well as a community of dietitians and online resources that educate her on what exactly goes into the foods she and her family eat. She receives education about ingredients and the effects they have on her health, so she can make more informed opinions when grocery shopping.

She points at two ingredients in your Apple Circles. “Just FYI, these have been shown to produce irritability and drowsiness in children under 10”.  On cue, your 9 year-old grabs your pants leg and starts tugging “Mooooommmmmm! We’ve been in here ALL DAY! I want to go home now now NOW!!!!!”  You look down at your watch, you’ve been in this store for 6 minutes. Your friend raises her eyebrows at you in a very “I told you so” way.

By offering a better experience, your friend’s program is able to generate more sales at a higher price-point. The reason why is because your friend’s loyalty program creates an experience for her that actually deepens loyalty toward the brand. Your friend appreciates the fact that her brand is giving her access to educational materials that allow her to better understand how the ingredients found in the foods she buys impacts the health of her family.

Your loyalty program saved you a dollar on a box of cereal.  Your friend’s loyalty program showed her which products to buy in order to have a healthier family. Which approach do you think does a better job of building true brand loyalty?

 

What are some examples of customer loyalty programs built around offering experiences to members?

Those were a couple of hypothetical examples, now let’s look at a couple of real-world examples of customer loyalty programs that offer better experiences for members. The first is Reebok’s Unlocked customer loyalty program, which launched in 2019. Unlocked is a tiered, points-based loyalty program. Meaning as you collect more points, you can move up a tier, and each tier has additional rewards. Starting with level 2, the program offers experiences as rewards, including access to special workouts, online access to personal trainers, access to cooks and recipes, and early access to new products.

Notice that these rewards are experiences, but more importantly, they are experiences that are consistent with the Reebok brand and how its customers would use its products. People that buy Reebok shoes and apparel are likely to be more active and more interested in healthy living and eating. So offering experiences based around activity, exercise, eating and cooking, is a perk that has value for members. Whether its a customer loyalty program, or a brand ambassador program, you should always offer perks that add value to the member. Give members access to advice, materials, even experiences that regular customers do not have. This creates excitement and interest in becoming a member. Which is what you want.

Sephora’s Beauty Insider loyalty program is another that has experiences and events as part of its rewards structure. At introductory levels of the program, perks are centered on shopping discounts, free shipping, etc. But as members accumulate more points, they unlock new benefits such as special events, in-person experiences with brand founders, etc.

Notice too that for both Sephora and Reebok’s loyalty programs, experiences are offered at higher levels, as a premium that members are encouraged to work for. This positioning suggests that in both cases, the brands understand that experiences can create a deeper connection with the brand, and also serve as a way to identify its most passionate customers.

Science tells us that money spent on experiences creates lasting happiness that increases over time. Knowing this, doesn’t it stand to reason that adding relevant experiences to your customer loyalty program will increase member happiness with not only the loyalty program, but with your brand as well?

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Baltimore Orioles Write Handwritten ‘Thank You’ Notes to Season Ticket Holders

Coming off an atrocious 108-loss season, the Baltimore Orioles decided to double-down on thanking the season ticket holders that stood by the team.

The players recently wrote handwritten thank you letters to season ticket holders. Orioles Director of PR Kirsten Hudak talks about pitching the idea to the players:

“I wasn’t sure what the reaction would be. The guys that I spoke to about it were immediately supportive. I saw many of them sit down and start writing right away. It felt like they had something on their minds or something they wanted to say and that was an opportunity for them to do it in a heartfelt way.”

Rewarding season ticket holders for their support is something many sports teams do at all levels. I’ve written before about how the Alabama Crimson Tide’s softball team (one of the top programs in the country), has its players and coaches hand-deliver season tickets to its fans.

As you can see, these two examples cover both ends of the spectrum from a fan support angle. The Orioles are no doubt scrambling for ideas to revitalize interest in a struggling team, and smartly thought of a way to reward their biggest fans with handwritten notes. On the other end, Alabama has been winning big for a while, and no doubt view the personal delivery of season tickets as a way to keep the momentum going with its fan support.

I think the word ‘fan’ has an interesting stigma around it. It seems like a special person who loves a sports team or rock star.

The reality is, a ‘fan’ is simply a customer. A passionate, loyal customer, but a customer nonetheless.

If you look at your customers in this context and overlap the above examples, you can easily see how ‘fans’ would be present in many businesses:

  • Frequent customers to your store that you recognize as soon as they walk in.
  • Loyalty club members
  • Subscribers to your company newsletter

All of these customers have signaled to you that they enjoy interacting with your company.  If you think of fans as being ‘people that love their favorite sports team or rock star’, why can’t you think of the above customers as being ‘fans’ or customers that love you?

In the previous post I talked about how rock stars have fans and companies have customers. Rock stars don’t have fans because they are rock stars, they have fans because they love their fans. They understand that having fans is a mindset, if you love and appreciate your fans, you deepen their love for you, and you act in ways that will encourage other people to become fans as well.

I shop a lot at WalMart and Publix. So much so that many of the employees at both stores will recognize me as soon as I walk in. Yet when I shop at Publix, the employees will always greet me with “It’s good to see you AGAIN’. They are communicating to me that they notice and appreciate my frequent visits. That’s one reason why I prefer to shop at Publix, because WalMart’s employees don’t bother to notice me, except for one cashier who always says “It’s good to see you AGAIN”. Guess whose line I prefer to go through at WalMart?

Creating and cultivating fans is about creating and cultivating a mindset that recognizes your fans and that communicates your appreciation to those fans.

Every business has loyal customers who are ‘fans’. The smart companies are the ones that reach out to their fans and let them know that they love them right back.

 

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Why Great Storytelling is So Important to Your Brand

I’ve been working with my friends at MarketingProfs this Summer to create a course for their Storytelling Summit for Marketers, which launches on September the 10th. As a way to give you a sneak peek at my course, Storytelling on Social Media, I wanted to talk a bit about why it’s important for your brand to tell stories.

Stories power Word of Mouth. By using story, you have a way to relate information to other people via a method (the story) which makes the information not only much more interesting, but you also increase the chance that other people will continue to pass that information along by sharing that same story.

I am an Alabama football fan, as most of you know. Recently, I was talking to a friend about the last two seasons, and Alabama’s starting QB, Tua Tagovailoa. If I had wanted to simply share information with this person, I could have said “Alabama beat Georgia the last two seasons.” While factually correct, both those wins were wrapped in incredible stories that make the information (Bama beat Georgia) far more interesting and memorable.

In 2017, Alabama faced Georgia for the National Championship. Jalen Hurts was Alabama’s starting QB, but Tua was the gunslinging backup that dazzled fans every time he played. Every time Hurts struggled, the fans clamored for Tua to come in, but he never did.

In the NC game against Georgia, the Bulldogs jumped out to a big lead by halftime.  Hurts was having a terrible game for Alabama. At halftime, the switch was made to start true freshman Tua in the second half, and he led Alabama to a come-from-behind victory, sealed by a 41-yard TD pass in Overtime.

The following year Alabama played Georgia for the SEC Championship and the roles were reversed. This time Tua was the starter and Jalen was the backup. And once again, Georgia jumped out to a big lead as Tua battled injuries. In the 2nd half, Jalen was put in and as Tua did the year before, he led Bama back to score a late win over Georgia. Jalen’s heroics led to a very emotional postgame interview with Nick Saban:

Now isn’t that a lot more memorable and interesting than saying ‘Alabama beat Georgia the last two seasons’?

Brand storytelling is about using story to communicate information to your customers. Ideally, that information will be both interesting and relevant to your customers, and relevant to your brand as well. When thinking about creating stories for your brand, think about what stories you can tell that will be both relevant to your customers, and also speak to what your brand stands for and is about.

A very simple way to do this can be by utilizing the stories of your customers, which you are probably already doing with testimonials. You can also let your employees tell what it’s like working for your brand, this can help streamline the hiring process, reducing hiring costs.

Also keep in mind when you are thinking about telling stories, that you can always use hypothetical examples in your stories. In fact, mixing real examples with abstract ones is one of the best ways to teach difficult concepts. You can tell a story about how one of your customers uses your product, then add a hypothetical “here’s how you could use our product” story to supplement the customer’s story.

Just remember that storytelling is a wonderful way to deliver information to your customers, and give them a way to easily relate that information to others, enhancing word of mouth.  Besides, who doesn’t love hearing and sharing a good story?

If you want to learn how to up your brand storytelling game, check out MarketingProfs’ Storytelling Summit for Marketers. Courses go live on September 10th, with additional live keynotes on the 17th and 24th.

 

PS: To wrap up the story with Tua and Jalen, at the end of the 2018 season, Jalen transferred to Oklahoma, where he won the starting QB job in the Spring. Last Saturday was the season opener for both Alabama and Oklahoma. Tua was amazing for Alabama, passing for over 300 yards and 4 TDs. But Jalen was the talk of the college football world, accounting for over 500 yards rushing and passing, and 6 TDs. After Week One, both are considered frontrunners for the Heisman trophy, given to the top player in college football.

 

BONUS: Well isn’t this awesome? Kerry at MarketingProfs has given me a $100 discount code to pass along to you, use code KERRYLIKESME to save $100 on the Storytelling for Marketers Summit!

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Research: How to Create Loyal Customers and Reduce Customer Churn Rate

Yotpo recently surveyed 2,000 American shoppers to learn their views on brands and brand loyalty.  The results gave some interesting insights into brand loyalty in 2018, so I wanted to highlight some of the findings:

Despite the growing importance of customer experience, product is still both the point of entry and departure for brand loyalty. 55.3% of consumers are brand loyal because they love the product, and poor product quality is the number one reason why a brand would lose a loyal customer (51.3%). This echoes the success of modern direct-to-consumer brands that rose to fame thanks to “hero products,” including UNTUCKit, Quip, and Away Travel.

Second to poor product, sub-par customer service will drive away 23.5% of loyal customers, meaning that even for brands with ground-breaking products, the surrounding experience is still paramount.

No big shock here, great products drive higher levels of loyalty. Or put another way, a great social media strategy will not save you if you have a terrible product.

However, I don’t think it can be overlooked that every touchpoint between the brand and customer impacts loyalty. The product may have the most bearing on driving loyalty, but if the customer also receives an exceptional brand experience along every touchpoint, that will also greatly impact how favorable the customer views the product.

88% of Customers Say They Need at Least Three Purchases Before They Feel ‘Loyal’ Toward a Brand

The survey further revealed that the bar for brand loyalty is high — a repeat purchase or two doesn’t mean you have a new brand fan. In fact, 37% of consumers say that it takes five or more purchases for them to consider themselves loyal to a brand.

Bringing back a customer five times is no small feat as consumer demands grow: 67.3% of shoppers expect 24/7 customer service, while 71.0%  anticipate more frequent discounting and 58.4% seek out free shipping in exchange for their loyalty.

Of the respondents:

  • 37% said five or more purchases were necessary before they were loyal to a brand
  • 33% said brand loyaty took three purchases
  • 17.67% said brand loyalty took four purchases

To me, these figures seemed a bit high.  I know from my personal experience, if any brand can get me to buy its product for the third time, I consider myself to be loyal to that product enough to continue buying it. On the other hand, if my first experience with a product is subpar, and very unlikely to buy it again if I have other options.

The Benefits of Loyal Customers

The survey also had three key findings for the value to brands of loyal customers:

1 – 60% of respondents will promote their favorite brands to friends and family (creating additional Word of Mouth)

One of the things I always advise clients to do is to give your advocates the tools and training to better promote your brand. When we find a brand we love, we want to share that love with others.  It’s like discovering something cool and wanting to share it with others, not only to help them, but to feel good about sharing something useful. Happy customers tell other customers about you.  Give them the tools to more easily do so.

2 – 52.3% of loyal customers will join a rewards program

This makes complete sense. Loyal customers want to be rewarded for their loyalty, so it follows that they would be more likely to join a rewards program. However, what most brands don’t realize is that reward programs members are often good candidates for your brand advocacy efforts. Whenever I work with companies who are interested in building a program for advocates, the first thing I ask is if they have a rewards program. That’s because the most active and passionate members of your rewards program are often good candidates to participate in a brand advocacy or customer advisory group that your brand may be considering. This also makes the whole issue of finding and identifying potential advocates much easier. So if you already have a rewards program, start there in your search for your brand advocates.

3 – 39.4% of respondents will continue to buy from brands they are loyal to even if cheaper options are available

Loyal customers are trusting customers. They trust their favorite brands and want to SUPPORT those brands. Price is less important to them, they are willing to pay a bit more for a product from a brand they trust and believe in. This is why it’s so important to create a situation where customers are more likely to become loyal. For instance, combine this with the above data concerning how many purchases are necessary for the customer to consider themselves ‘loyal’ to your brand. If you know that four purchases is the magic number for your brand before loyalty is attained, then you need to think about what you can do to convince the customer during those first three purchases to commit to another one. Think of it as identifying the point at which customers leave The Loyalty Funnel. Find the hole, and plug it!

 

A lot of interesting information and data from the study, which you can find here.

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The Secret to Creating Word of Mouth That Most Companies Completely Miss

When you think of ‘Word of Mouth’, you probably think of ‘building buzz’, right? This is what most companies think word of mouth is about, what can you do to get people talking?  Seth Godin has the classic example of a purple cow in a field.  No one would talk about a regular cow, but if you saw a purple cow in a field, well everyone would talk about that!

So the generally accepted idea behind word of mouth marketing is “What can we do to get our customers talking?”  In other words, what can we do or create to give our customers something to talk about?

But what if your customers don’t need anything to talk about?

I have a Ford Fusion. In many ways, it’s a very average car, but it’s my car. It has every feature I want, it’s the right color, it’s got bulletproof reliability, I love it. I am also into detailing my car, so there’s certain products from companies like Klasse and Poorboy’s World that I love as well. These products make my Fusion look gorgeous, and increases my satisfaction with the car itself.

So here I am, a customer who loves my Ford Fusion, as well as Klasse and Poorboy’s World products.  There’s likely thousands or hundreds of thousands of customers just like me across the country.

All of us would happily promote Ford, Klasse and Poorboy’s World products, but these companies aren’t connecting with us. We would happily create word of mouth, and positive word of mouth, about these companies, if they would only help us do that.  Years ago, I worked with a major brand on a customer advisory event. We brought in several customers and spent all day with them talking with and listening to them. At the end of the day, we asked them what they would like to see the brand do for them.

The first customer answered “You guys have to figure out how to give us better tools to help us better promote your products to other customers”. This is the secret to creating word of mouth that most companies completely miss. Your happy customers would LOVE to create word of mouth on your company”s behalf, but you have to give them the tools and the permission to do so.

The reason why most companies don’t do this is because they don’t make the time to do it. It would be very easy to identify these customers that would love to create word of mouth for your products. One simple way would be to track online sales. You know what the average order amount is, how often the average customer places an order, etc.

Let’s say I am the online manager for Poorboy’s World, and I see that the average customer places 2 orders a year, for an average of $35 an order. You could create a threshold for your customers where if they buy at a level predetermined by you, that they will be offered a chance to join the Poorboy’s World Fan Club. Say, if you place 5 orders a year, you flag that customer as being a ‘loyal’ customer, and then invite them to join your fan club. Part of that could be giving them discounts, education on how to better use Poorboy’s World products, and encouraging them to promote the brand both offline and online by being active on message boards and forums devoted to detailing.

Your brand could easily do this, track customer sales (which you are already doing), and when an individual customer hits a certain level, you invite them to join your program devoted to encouraging your happy customers to create more word of mouth for your products.

It’s that easy. BTW, if you want to try out Klasse products, this guide is a great start. The two products you want are ‘All-In-One’ and ‘High Gloss Sealant Glaze’. AIO cleans and preps the paint, HGSG protects it for at least 6 months, possibly as long as a year. Cost for both is around $50 shipped (shop around), and they will last you for years, only need to apply twice a year, I use them in the Spring and again in the Fall.  Enjoy!

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Research: Online and Offline Conversations Account for 19% of Sales

An exciting new study from Engagement Labs (Formerly Keller-Fay) had some very interesting takeaways for brands concerning the impact that online and offline WOM has on sales.  The study tracked the correlations between conversations (online and offline) and sales for 170 brands.  The research found 19% of sales resulted from both online and offline conversations.  Further, the study found that both sources contributed almost equally; 10% of sales resulted from offline conversations (Word of Mouth) and 9% resulted from online conversations (Social Media).

The study also looked at how a brand uses social media can impact sales: “By improving social performance by just 10 percent, the brands included in this study can realize a two percent increase in sales and large improvements in profit margins compared to business-as-usual figures. For example, the sentiment of conversations, both online and offline, were proven to be a big driver of performance. Therefore, by improving sentiment, a brand can experience a sales lift.”

The More Positive the Conversation Around Your Brand, the Higher Your Sales

So let’s unpack that previous paragraph a bit. If a brand improves the efficiency of its social media efforts by 10%, it realizes a 2% increase in sales. That alone is incredibly significant. But additionally, positive sentiment about a brand online and off leads to an increase in sales.

And what group is the biggest driver of positive sentiment about your brand online?  Your happy customers!  Your biggest fans are not only the biggest contributors of positive conversations around and about your brand, but they are also the group that is the most motivated to talk positively about your brand!

This is precisely why I am so dedicated to helping companies better connect with and empower their happy customers. Additionally, customers are more likely to listen to and trust a fellow customer than they are a marketing message that comes directly from a brand! You know this to be true from your own experiences: Which are you more likely to trust; A commercial for a brand, or an endorsement for that same brand from a customer you meet in a store? You’re going to trust the customer over the commercial, right?  Of course you are.

If you want to improve the sentiment of the conversation around your brand online, then make sure your happy customers are more active participants in that conversation.  That’s it.  If you don’t take a role in engaging your happy customers, they will be less likely to create positive content around and about your brand online.  Which will lead to fewer sales.

But we want you to have more sales. And as this study found, just a 10% increase in the efficiency of your social media efforts results in a 2% increase in sales.  For a small business with at least one employee, average annual revenue is $4.9 million.   So if a small business with one employee could improve its social media efforts by just 10%, it could realize an increase in sales of $98,000.00.

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Your Big Brand is Already Doing Influencer Marketing, Whether You Realize it or Not

airlines customer serviceLast week, I wrote about how social media isn’t hard, companies make it hard. The idea being that a lot of opportunities fall into the lap of companies every day in regards to their digital strategies, and often these opportunities aren’t capitalized on.

For example, right now there’s a mad rush by brands to get on the Influencer Marketing train. Brands want to know how they can work with influencers, and how they can get those influencers talking positively online about their brand. Big brands are paying millions of dollars to consultants and agencies to help launch Influencer Marketing campaigns.

And yet, they often miss capitalizing on free opportunities to interact with influencers that fall into their laps.

I was thinking about this as I read about my friend Ann Handley’s recent traveling nightmare with Delta airlines. The story was a breakdown in customer service that’s unfortunately all too familiar to those of us that fly frequently. But I wanted to pick this story up when Ann, after getting no help (or empathy!) from Delta reps at the ATL airport, decided to turn to Twitter and the @Delta account.

At this point, I want to back up for a minute. When a customer has a problem with a brand, they will typically try to contact the brand via offline or online channels BEFORE going to social media. I’ve been educating clients on this for 10 years, I’ve been blogging about it here for years, hell I even wrote a book about this. So when a company encounters what they might perceive as a ‘complaint’ from a customer on social media, they need to understand how the customer got there. Typically, as Ann did, they tried to contact the brand via other customer support channels, and did not get the help they needed. So they turned to social media, and at this point, they just want someone to LISTEN to them and show EMPATHY for their situation. In short they want the brand to say “I’m sorry you’re upset, help me understand what has happened so I can see what can be done to help you”. The point is, you have a customer that’s typically frustrated, who is upset with the treatment they have gotten from your brand, but if you show empathy for their situation and work with them to resolve it to the customer’s satisfaction, you have a chance to convert a ranter, into a raver.  Nothing creates an advocate faster than a brand that listens to the customer that has a problem, and who goes the extra mile to solve that problem.

Now that we’ve covered that ground, let’s turn our attention back to Ann’s situation with Delta. I’m not going to really comment on what happened with Ann at the ATL airport (because you should read the post) but suffice it to say that Delta’s customer service efforts in person at the airport were less than satisfactory as far as Ann is concerned.  So she’s upset, and a bit frustrated by the time she decides to try the hail mary of contacting Delta on Twitter for help.

And the second she did, whether Delta realized it or not, but they were engaging in Influencer Marketing. A quick click of Ann’s Twitter account tells you the following:

  • She has nearly 400k followers
  • She’s a bestselling author

In other words, she’s an influencer. And I’m not sure what the social media equivalent of a Q Score is, but Ann’s would be off the charts. Everyone loves Ann.

So Delta had a rare opportunity to interact directly with an influencer fall in its lap. According to Ann, here’s what happened: She tweeted to @Delta saying she needed help.  Approximately an hour later (see the problem?), she got a reply, and an exchange began. Ann was offered a voucher or free miles, but really wanted someone from Delta to explain to her exactly what had happened and how her situation was allowed to reach this point.  Delta told her on Twitter that they were dispatching a customer service rep to her location in the airport to talk to her.

Eighty-five mins later (see the problem?), she was still waiting for the CS rep to reach her when her name was called for standby for another flight and she left the airport. Still frustrated and upset, she squeezed into the back of her flight, and started writing what would become her blog post.

Again, brands like Delta will spend millions if not hundreds of millions on Influencer Marketing in 2017. Yet when they have a chance to connect with an actual influencer for free, they blow it.

And the great irony of this story? Ann is a professional speaker, and as a fellow speaker, I can tell you that one thing we love is new case studies to share with our audiences. So there’s at least one positive Ann can take from this last week.

The moral of the story is that there’s no sense in your brand chasing the Shiny Object of the day if you can’t nail basic customer service. Empower and train your employees to have understanding and empathy for your customers and 95% of your customer service issues will magically disappear.

And for extra credit: Understand that every customer is an Influencer to someone. Your brand is engaging in Influencer Marketing every day, whether you realize it or not.