Loyalty trends and best practices

Quick Primer - Why Customer Retention is Key to Growth

by Tiffany Go
November 10, 2012

Tiffany GoYou have likely heard the stats: a new customer costs five times as much as keeping an existing customer, and the average cost of a lost customer is $243 globally and $289 in the US. So how much d... Read more

Why Referral Programs Dont Work For Everyone

by Tiffany Go
November 02, 2012

Let’s take a step back and look at the factors that drive referrals:... Read more

Are Your Facebook Fans the Best, or the Worst?

by Matt Ellinwood
October 31, 2012

How well do you really know your Facebook fans? Sure, Facebook Insights gives you basic demographics, but it leaves most questions unanswered. Do you know whether your fans are good customers? Could they be bad customers? Many brands and retailers have learned how to use their Facebook fan pages as a customer retention tool. In fact, 84% of a typical brand's Facebook fans are existing customers. As marketers have learned through trial and error and crunched the numbers, proof has emerged of the real results marketers can achieve by tapping into Facebook fan bases. ComScore published research that translated the social amplification effects of reaching fans and friends of fans this past winter, and the research showed spending lifts reaching 30% among fans and friends of fans against a control group not exposed to Facebook content.... Read more

3 Customer Experience Lessons For Online Retailers

by Tiffany Go
October 26, 2012

As ecommerce sales continue their meteoric rise, the competition between online retailers is following a similar trajectory. The retailers edging out the competition are those most successful at creating extraordinary customer experiences to encourage customer loyalty. Here are three customer experience lessons and three retailers using these methods to stay ahead of the competition.... Read more

2 Top Steps to More Profit from Your Best Customers

by Matt Ellinwood
October 25, 2012

Tim Suther, the CMO of Acxiom, recently wrote in Ad Age about the keys to and benefits of customer centricity. This caught our eye, because loyalty programs must be customer centric in order to drive lifetime value and profitability. Mr. Suther calls out two critical steps that a marketing organization must follow in order to reap maximum benefit... Read more

3 Quick Reminders for Retail Email Marketers

by Matt Ellinwood
October 17, 2012

A recent flurry of research reports and news stories about retailers' success with email marketing campaigns is a great reminder of the importance of this "old" technology and its effectiveness at driving engagement with your customer base. At 500friends, we are believers in email marketing as an engagement, advocacy, and promotional vehicle, and email is deeply embedded into LoyaltyPlus' functionality. Email is a critical component of keeping in touch with your loyal customer base, communicating the value of your loyalty program, and sharing great offers to drive repeat business--all fundamental to driving increased lifetime value.... Read more

Put Data about Social Engagement in the Right Context

by Matt Ellinwood
October 10, 2012

Last week, Internet Retailer published an article called Consumers Seek Discounts that summarizes the data in a report on consumer purchasing habits and social media put out by Hybris, an eCommerce technology provider. The results of the survey lead, at first glance, to the conclusion that social media engagement has an extremely weak effect on purchase behavior and that the effect it does have is not optimal. For example, the survey found the primary reasons for engaging on Facebook and Twitter to be keeping up with discounts and sales--hardly the ideal way for a retailer win more profitable business from customers who should be among their most engaged and valuable. 500friends has some insight on this point--we've seen the same phenomenon. In fact, upon inspecting the Social Dashboards for our clients, we found a case where a retailer's worst customers, i.e., their least profitable... Read more


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