Customer Loyalty Marketing: An Ultimate Guide for Brands in 2021

The coronavirus pandemic was a huge disruptor for customer loyalty programs in 2020. Whether due to restrictions, economic hardships, social distancing, or discomfort with public settings, shopping patterns and behaviors have shifted and will continue to shift well into the next year. While many are excited for a fresh start in 2021, America’s health experts are still unsure of when our country could see some normalcy again—predictions now forecast the end of 2021’s third quarter. This means that brands will need to remain vigilant into 2021 and approach their customer loyalty marketing with careful thought and strategy.

Here’s what we know about customer habits in 2020:

  • Shoppers are trying new brands. A McKinsey report found that 75% of consumers have tried new brands and retailers. Top reasons for defection include lack of product availability, as well as better prices and promotions. Brick-and-mortar retailers and brands should adopt the latest technology and strive for better synchronicity across all channels, from brick-and-mortar stores to web to wholesale.
  • Shoppers value convenience. While lack of availability was the most common disruptor, other harmful issues affecting loyalty, according to another study, are difficult returns processes and clunky apps or websites that are not user-friendly. Loyalty best practices include optimizing the customer experience with: free and simple returns policies, click-and-collect, priority pickups, multiple modes of communication, app personalization, and an above-and-beyond digital experience. Making a meaningful effort to show you care about consumers’ common pain points and are working hard to resolve them is a key pillar to creating an emotional connection that translates to deep-rooted, long-lasting loyalty.

How the Ultimate Guide to Customer Loyalty Marketing Will Look in 2021

If 2020 taught us anything, it’s that the customer experience does not always go perfectly. But mobilizing an efficient response can significantly increase brand affinity and smooth over any bumps that may have arisen. This ultimate guide to customer loyalty marketing looks at best practices to take away from 2020 and trends to look out for in 2021, including communication strategies, location-based marketing, click-and-collect, premium perks, and strategic partnerships that add value.

Timely, Relevant Communication

Fifty-eight percent of customers will remain loyal to a company that keeps them informed with timely, relevant information. Reaching out is important, but the expectation is that your marketing will be targeted to a specific individual’s past browsing and purchasing history, wishlist, demographics, location, and stated preferences.

Keeping the messaging pertinent to consumers’ present time lets consumers know that you are paying attention, listening, watching, and are invested in their happiness.

Apps have become an essential communication and data collection tool for loyalty programs, since nearly all consumers are using mobile devices on their shopping runs. Going one step further, beacon technology allows brands to connect with shoppers on-the-go in the most timely, personalized manner possible.

When a shopper passes a certain aisle, walks past a competitor’s store, or spends a certain amount of time in a particular part of the store, brands can send specific messages relevant to that activity, capturing shoppers at the most opportunistic time for conversion.

There are many ways to effectively engage with customers:

  • Send a series of onboarding welcome messages to educate and assist new customers with loyalty program features.
  • Test different promotional messages to see which drive more sustained engagement and transactional behavior.
  • Automate texts based on consumer behaviors, like signing up for an event, passing a store, or creating a wishlist.
  • Personalize offers based on past purchase history, offering greater rewards for frequent buyers and VIPs.

While email, social media, and in-store promotions have their place, focusing on mobile is more timely than ever, since 60% of U.S. loyalty program members between the ages of 18-34 use a mobile app to manage and redeem rewards.

Customer-First Focus

Earning loyalty involves a simple strategy: Put the customer first. Loyalty is an emotional state more than a rational choice. When you provide significant value and express your dedication to the customer’s best interests, the reciprocal enthusiastic devotion will follow.

Loyalty doesn’t derive from discounts, but from feeling attended to, cared for, and significant. If shoppers feel like the business doesn’t care about them, especially in this day and age where competition is abundant, they’ll take their valuable dollars elsewhere.

Expectations are ever-rising as thoughtful innovators raise the bar of customer service. As a result, companies are increasingly implementing new conveniences that attract and maintain their customer base.

Local-First Marketing

Consumers are largely dispersed due to COVID-19. Some urban workers are now spending the majority of their time in the suburbs, working from home; others who have lost their jobs are shifting into new roles and neighborhoods.

Proximity marketing tools like beacons and GPS-based apps give brands the ability to target smaller communities on a hyper-local level, rather than sending out sweeping marketing messages across mass markets.

Personalized mobile marketing on a local level involves:

  • Greeting shoppers upon entering a store to stay top-of-mind.
  • Guiding consumers to products.
  • Sending helpful, timely information.
  • Providing motivating local deals.

Given that 89% of companies who implemented location-based marketing saw an increase in sales and 84% saw higher engagement rates, it’s no surprise that this successful tactic is used to cultivate long-term loyalty.

Click-and-Collect Convenience

Buy Online Pickup In-Store (BOPIS), otherwise known as Click-and-Collect, had a big year in 2020, with nearly 70% of consumers taking advantage of this convenient new service. 

Even as widespread fears of virus contamination peaked, shoppers proved their commitment to brick-and-mortar. They may have consolidated more shopping into fewer trips, but only 1 in 4 shoppers replaced the traditional shopping experience with eCommerce. 

Modern shoppers operate in an omnichannel environment, where they interact with brands through various channels throughout a single shopping experience. BOPIS removes shipping wait times for shoppers who want their goods right away, alleviates wait-in-line bottlenecks with advance payment, and provides the sort of personal attention that drives loyalty.

Premium Perks

Traditionally, brands thought the most valuable incentive they had was a price-based offer. However, research indicates that 87% of loyalty members who are satisfied with the program’s special perks and benefits will remain faithful to the brand even if competitors are offering lower prices. Trust, convenience, and comfort can go a long way.

So what do “premium perks” look like in 2021? Free shipping is the most desirable perk cited by premium loyalty members.

Other premium perks include:

  • VIP privileges like “first to know” about new product launches, sales, and events.
  • Special savings or double-point days for the most dedicated loyalty club members
  • Status perks like premium parking spots, skip-the-line benefits, and exclusive event invitations.
  • Social media shoutouts
  • Complimentary upgrades
  • One-to-one customer support
  • Flexible returns
  • Birthday gifts

Strategic Partnerships

How can your brand offer greater value in 2021? The answer could be found in a strategic partnership. Brands have always joined forces with other equally successful companies to better serve their existing customers and reach out to new audiences.

For instance, a leading winery partnered with Shopkick, a mobile reward shopping app, to drive awareness, consideration, and trial of their products through an inventive “Spring Entertaining” campaign. Shopkick first leveraged engaging lookbook content, branded in-app videos, and promo units that emphasized the products’ ability to pair well with recipes, inspiring users with ways to use the products.

Once consumers were in-store, Shopkick incentivized them to engage with and purchase the winery’s products through “kicks” (reward points) that can be redeemed for a gift card of their choosing once enough are accumulated. To drive incremental purchases, Shopkick awarded more kicks to shoppers who made unplanned purchases of the winery’s products. 

The results were significant—there was an 83% lift in awareness; 78% of shoppers never heard of the products before; and 49% of purchases were incremental.

In 2021, Compassion and Convenience Will Go a Long Way

Now more than ever, companies need to focus on extending compassion and convenience. While offering great deals and enticing promotions cultivate goodwill with customers, they are not effective long-term strategies for increasing loyalty. Brands that consider alternate methods of rewarding their loyal shoppers with free sample surprises, reward points, gift cards, contests, and differentiating VIP services will find that brand affinity and long-term loyalty come naturally.

Thank you for reading this ultimate guide to customer loyalty marketing in 2021. Shopkick is a mobile rewards shopping app that helps cultivate long-term customer loyalty. Brand and retail partners use Shopkick to drive repeat sales and solicit market share—all while ensuring a significant ROI. Contact us to learn how you can drive greater loyalty in 2021.

Posted in b2b

3 Goals You Can Achieve: Part 2

We’ve almost officially reached the middle of January! So, how are you doing with your goals? Have you set goals for the year, or are you still working through what you would like to accomplish this year? Keep in mind, there truly isn’t anything magical about January 1. You can set a goal and start taking small steps toward achieving it at any time!

Last week, we shared the first part of our goal setting series where we’re walking through some of the most popular goals people set each year. The fun part is we’re sharing simple steps you can do today to start working toward reaching each goal, rather than solely having them written down without a game plan. Today, we’re digging into how to read more, how to stick to a budget, and how to spend time with family and friends (yes, even during COVID-19; stay with us!). Keep reading, and make sure to tune back in next week for the third – and final – part of our series!

Read More: 

If books are on your mind, we’re here to help! This goal definitely relates to spending less time on screens, but we thought it deserved its own section. 

Consider starting slow by setting a goal to read 1 book/month. Then try to read 10-20 pages per day or set aside 15-30 minute windows of time to read. The best thing to do is to find a consistent window of time each day to carve out this routine! 

Another idea is to read books that have been turned into movies or TV shows (we compiled a list that you can find here!). Knowing you can experience how a creative team took a book from the page to the screen can be a great motivator to finish a book.

If you’re looking for great books to enjoy throughout the year, Good Housekeeping released a list of the most anticipated books of 2021!

Stick to a Budget: 

There are plenty of articles and tips about how to create and stick to a budget, but we’re here to share simple ways you can stay on track! 

One place to easily spend more each week than you may have originally intended is at the grocery store. So, make a list before you shop. Then stick to your list even as you wander down the aisles. Another idea? Don’t shop when you’re hungry! Because we’ve done it, we can confirm the rumors are true: you do, in fact, purchase more if you shop while dreaming about your next meal or snack.

Another simple thing to do to keep your budget on track is to use Shopkick to your advantage! In between interacting with us on Instagram and Facebook, pop onto the app and explore the Discover page – glance through lookbooks, watch videos, and see how you can earn kicks on your next shopping trip. Once you reach your chosen kick goal, redeem your kicks for a gift card that you can use when you next pick up the essentials on your list. Shopkick is free to use! What budget tip could be better?   

Spend More Time with Family & Friends:  

COVID-19 has definitely changed how we spend time with family and friends and, of course, how often we can gather together. But, that shouldn’t stop you from checking in on your favorite people! Many of us are suffering from Zoom fatigue once we reach the end of the day or week, so we highly recommend taking what some might call an “old fashioned” approach: pick up the phone. 

Plan a time to catch up with a friend or family member, and make it a weekly date! To feel even more connected, you can both plan to engage in the same activity, whether that’s talking while you’re taking individual walks, driving home from work, or catching up on chores (a phone call makes laundry more fun!). A call with someone you love will brighten your day!

We’re here to cheer you on! Keep sharing your progress with us on Facebook as we all work toward achieving our goals (and more) in 2021.

Rimmel London

Cutting through the clutter at the beauty aisle to launch new products

Campaign Goals

Rimmel London was looking to drive awareness of the Rimmel London products suite and encourage shoppers to seek them out at shelf, cutting through the clutter of the beauty aisle to drive purchase and gain consumer insight.

Shopkick Solution

Shopkick first leveraged in-app content to build awareness of Rimmel London products and influence perception of Rimmel as a top beauty brand. Next proximity messaging drove to store and kept Rimmel London products top of mind while consumers were out shopping and when they entered the store. Finally, Shopkick drove ‘trial-in-aisle’ direct product engagements with multiple Rimmel London products while shopping, driving proven incremental conversion through purchase validation.  

Results

Rimmel London built awareness, drove users to discover its products in-store at crowded shelves, stayed top-of-mind and captured major share of wallet from other beauty brands.

38%

of purchasers had never used Rimmel London products

14%

Share stolen from a competitor

5:1

ROI

Details

Goals

Drive Awareness

Drive Trial

Steal Share

Capture Consumer Insights

Retailer Distribution

Walmart Target Drugstores Ulta K-mart

Products Used

Lookbooks, Own the Trip, Promo Unit, Scans

Barilla

Leveraging video to build awareness, increase in-store engagement, and motivate sales

Campaign Goals

Barilla had launched a new type of Pasta, Pronto, but it had relatively low awareness with consumers.  Pronto is not like other pastas, it is prepared in one pan – no need to wait for water to boil, and no draining required. Pronto also had no packaging differentiation from other Barilla product, so communicating benefits had to primarily be done outside of the store. This required a great deal of consumer education to make its features and benefits understood. Barilla engaged Shopkick to drive awareness, engagement and sales of Pronto pasta.

Shopkick Solution

Shopkick engaged consumers throughout their entire purchase journey, from planning and inspiration, to in-store product engagement, and finally purchase conversion and sales. The first step was to introduce the product and build awareness before shoppers even went to the store. We rewarded consumers for engaging with in-app native video and lookbook content. The goal of the video was to grow awareness of Barilla Pronto Pasta, explain its unique benefits, and then encourage consumers to seek out the product in-store. After consumers were made aware of Pronto and could see it in action through the video, we rewarded store traffic and in-store product engagement. We led consumers to the aisle, and then incentivized physical product engagement in aisle, where users picked up the product off the shelf, scanned the barcode, and made a purchase decision.  

Results

Barilla successfully engaged consumers throughout their purchase journey, and was able to understand how behavior out of store and engagement with branded content impacted in-store activity. By using video on a native advertising platform like Shopkick, Barilla was able to reach consumers who were in the context of shopping: such as product discovery and trip planning and then connect that engagement to behaviors down the funnel like aisle visits, product engagements and purchase conversion.

66%

of users first became aware of Pronto through Shopkick

1/2

of video viewers converted to purchase

68%

lift in future purchase intent

"To have such a rich, experiential connection to customers before they even enter a store is powerful; add a rewards structure that encourages physical brand engagement and you see the kind of lift we experienced: significant sales growth"
-Debbie Zefting, Director of Shopper Strategy and Engagement

Details

Goals

Drive Awareness

Drive Awareness

Drive Awareness

Retailer Distribution

Target, Walmart, National grocery chains

Products Used

Lookbooks, Video, Scans, Kicks for Receipts

How to Jumpstart Your 2021 Goals: Part 1

The first week of the new year often provides many of us with a much-needed boost of energy after a relaxing week and a half of family time and never quite knowing what day it is. We’re excited to embrace schedules again, and many of us are also ready to start tackling our goals.

We’re more than optimistic about everything we hope 2021 has in store, but we’ve also been feeling a bit more cautious as we set our intentions for the new year. If you’re feeling uncertain about planning big things for the year ahead due to Covid-19 or you’re not quite sure how to start working toward your goals, we thought we would break down some of the most common goals or resolutions so often set on January 1 in a two-part series. 

Today, we’re detailing ways to travel, lessen screen time, or workout more in 2021. And, we’ll be back next week with our second installment of our goals series! 

Let’s kickoff 2021 with positivity and put your goals into action together! 

Travel:

Throughout 2020, travel looked different for many of us, and we have a feeling that will continue for much of 2021. However, that doesn’t mean you can’t explore! 

Look into hiking trails to experience, nearby towns you have never explored, museums and zoos that have long been on your list to visit, and lakes and beaches to frequent as the weather warms up again. Although each option may be close to home, we do believe you can still create plenty of memories with your family! 

If you’re still missing your favorite city or attraction, take a peek on tourism websites to see which museums and sites are offering virtual tours (here + here for ideas!)

Lessen Screen Time:

Our days are spent on Zoom, and we’re reaching for our phones more than ever before. Many people have a desire to lessen screen time for themselves and their kids, and it’s definitely possible!

Consider creating specific windows with start and end times for being on a screen. You can set limits on your smartphone for specific apps, and your phone will notify you when you’ve hit your limit. The key is then walking away! Another idea is to cultivate a new hobby that’s away from your screen – reading, crafting, or working on a home improvement project are all popular. Lastly, think about schedule game nights with your family.

The best way to start a new habit to stop an old one is to find things you are more excited to do than anything you can experience on a screen. It’s possible! 

Workout:

Many people set fitness goals as a new year begins, so the key is to get moving! But, sometimes the next question is how?

One idea is to start simple – create a window to take a 15-30 minute walk outside. Even if the temperatures are less than ideal (it’s winter after all!), wrap up with a coat, hat, and gloves. Once you get moving, you will warm up; we promise! Create a playlist, find a podcast you enjoy, or choose an audiobook to listen to while you walk. 

If your goal is to take workout classes, search for ones you might enjoy on YouTube (here’s a list of great online classes). You can also sign up for an app, like Peloton, for less than $15/month to take a variety of classes.

Think about asking a friend (or many!) to join you on your fitness journey. Then, text each other to check in to see who has completed their workout for the day. Accountability groups can work wonders to keep you on track!  

What step can you take today to start working toward your goals? Keep the encouragement going on Facebook!

eBay

Mobile shopping drives sales and a new native audience to eBay

Campaign Goals

eBay was looking to increase exposure to mobile users, given that about 61% of eBay’s transactions are touched by mobile in some way.  eBay was therefore eager to reach Shopkick’s loyalty program and valuable audience, as eBay does not have its own loyalty program but being a part of other loyalty programs is a large part of its sales model. eBay’s partnered with Shopkick to reach a new audience and drive sales on mobile.

Shopkick Solution

Shopkick first built intent to shop by curating products and showcasing top offers to drive awareness of product assortment and special promotions. 

Shopkick then drove site traffic, app installs, and purchases by motivating with kick rewards. 

Results

eBay saw positive results across all key metrics including new user acquisition, frequency of purchase, and overall sales volume. 

6%

App install rate

62%

New audience (had not purchased in past 12 months)

18%

Repeat purchase rate

Shopkick is an opportunity to get in front of a captive audience that wouldn’t necessarily be native to us—we’re reaching a new audience
-Marie Langhout-Franklin, Head of Partner Marketing

Details

Goals

Acquire New Consumers

Drive Mobile Sales

Drive Repeat Purchasers

Retailer Distribution

eBay

Products Used

Lookbook, Kicks for Purchase, Mobile Shopping

11 Fun Family Activities for Winter Break at Home

In between celebrating the holidays this week and counting down to the new year next week, many families will be spending time at home together. We always enjoy the final two weeks of the year because they feel both fun and relaxing at the same time. Even though we have spent more time at home than ever before this year, there are still fun ways to make your time off feel like a true staycation. So, we’re detailing 11 fun family activities you can do at home with kids of all ages! 

Build a Fort:

Kids (and adults!) love building and spending time in forts, so gather pillows and blankets together and start building. You can even add string lights inside! Think about naming your fort and drawing a sign to make things official. Cozy up inside and watch a movie, read a book, play a game, or tell stories together.

Write a Story:

Your kids likely have books they love to read and reread again and again. To spark their imaginations, ask them to write their own story complete with words and illustrations. Computer paper is perfect for this because you can easily have the pages bound together at an office supply store. You can also tell stories aloud or write a family story together. Whatever you and your kids create will become a new favorite!

Do a Scavenger Hunt:

We know many of you love to spend time outside! One of the easiest activities to do is to take a walk. To keep kids entertained, think about doing a scavenger hunt in your neighborhood while you stroll. Decorations will likely still be on display for much of this week and next, so consider giving Studio DIY’s scavenger hunt a try!

Make a Calendar: 

Rather than purchasing a calendar, create your own with photos you have captured this year! Sites like Minted and Shutterfly have great easy-to-use options to create desk and wall calendars to use in your home or work-from-home office spaces. Ask your kids to help you to choose the photos and design each month together! You’ll love looking back on past memories throughout 2021. 

Do a Puzzle: 

Puzzles are a great activity you can complete all in one sitting or return to throughout an extended period of time. Working on a puzzle on the floor always works well because there’s plenty of space. If you’re working on a larger puzzle, however, you will likely want to house it in a spot that it can stay until it’s complete. A card table, desk, or dining room table works wonders for this purpose! Then you can add a piece or two whenever you walk past or settle in for a longer session. Stores like Target and Walmart have puzzles, and you can also find them at bookstores. If you want to make your own from a photo you captured, look into Zazzle!

Play Board Games:

If you can’t quite remember when you last played a board game together or you play them frequently, choose one to play together! You can even create a tournament where you play multiple games throughout the week or weekend, and the person with the most wins gets a prize.

Send Mail:

During the holidays, many of us are sending and receiving holiday mail. But, once January arrives, the “fun” mail tends to stop. So, ask your kids to draw pictures or make cards for friends and family. Their January days will be brightened instantly!

Make a Wrapping Paper Craft:

Before you throw away the wrapping paper that’s tossed aside after opening holiday gifts, think about saving it. We spotted this article from Buzzfeed that details plenty of crafts you and your kids can make from wrapping paper as a way to reuse it! 

Play with Water:

Even though it may be a little cold in many areas to go swimming in a pool or the ocean, that doesn’t mean your kids can’t play with water. Young kids love to “help”, so have them wash their toys in the bath or sink. You can also play with water beads! Another simple idea? Add bubbles to a bath. 

Donate Toys:

The holidays typically mean adding more toys to your collection. If your kids have toys they no longer play with or you simply want to create more space in your home, why not spend time choosing toys to donate. Think about placing a number around the donation, like 5-10 toys, and then asking your kids to review what they love and what they really don’t play with as much anymore. Giving old toys a new home means they can keep being enjoyed, which is the goal!

Have a Spa Day:

The week in between Christmas and New Year’s Eve is one we hope is relaxing. To enhance the relaxation and fun, host a spa day at home! Purchase face masks you have yet to try, do manicures and pedicures, soak your feet, and enjoy a bubble bath. This is also the perfect time to officially wear sweatpants and leggings! After your day at the “spa”, read a book, catch up on a TV show, or watch a movie…and order takeout.

A quick tip: bookmark these ideas for the winter and rainy days! Most of these ideas aren’t holiday specific, so refer back to them whenever you need an idea for something fun you and your family can do inside together. As always, make sure to keep the conversation going on Facebook!