Loyalty is a growing trend in Irish marketing, with 55% of Marketing Decision Makers saying that Loyalty is a strategic priority for them in 2013.
So whether you are a brand starting a loyalty programme or trying to refresh your current programme, there are three principles that prove the power of direct mail as a fundamental part of your loyalty strategy.
1. Direct mail used in a loyalty programme is the most trusted direct channel available.
2. 70% of Irish consumers prefer to receive their loyalty rewards by post.
3. Direct Mail is the number 1 channel, by a long shot, for making customers feel valued by your brand.
For more on Loyalty Marketing in Ireland, visit the Direct Debate, where you can find articles from senior Irish marketing leaders on the subject of loyalty, research reports, tools and resources to help you plan your own customer loyalty programme, and presentations from Doc Morris, Topaz and Chilli Pepper Marketing. Below, you'll find a selection of Irish case studies for both B2B and B2C loyalty marketing.
Brown Thomas: "How we delighted our loyalty customers" The relaunch of the Brown Thomas Loyalty Programme
In 2012 Brown Thomas re-launched the Brown Thomas Loyalty programme introducing anytime redemption and enhanced benefits for customers, making it the most desirable and exclusive loyalty club in Ireland. So, what makes a great Loyalty Programme? And how can you achieve true customer engagement? A programme that you can earn and redeem your rewards at any time and not be tied to time periods, or wait for vouchers to arrive. Rewards that you can use to treat yourself to a totally exclusive experience at a time that suits you or that you can use against purchases at any time? A new innovative approach was born, 'Delights'. Brown Thomas worked hand in hand with their international brands to create a bespoke menu of Delights that are exclusive to Brown Thomas Loyalty customers. Using loyalty rewards, 'Delights' meant you could now avail of a unique service or product that was not available to non-loyalty customers. Brown Thomas launched 3 phases of 'Delights' in 2012, with only 6 brands and 13 Delights in phase one, 13 brands and 18 Delights in phase two, and finally a phenomenal 22 brands on board and 26 Delights for phase three. The Delights menu has continued to grow and become extremely popular with loyalty customers. Overall key results: 28% of customers were lapsed (these customers were considered lost to the business) and were re-engaged as a result of the programme. 48% of customers were not due to purchase in store, i.e. they shopped sooner than their purchase cycle expected. The Not Due customers had the highest Average Customer Value over the period, followed by the Lapsed customers. This is considered incremental sales. With the introduction of these two key changes, Brown Thomas increased the number of customers redeeming their loyalty points by over 30%.
Hidden Hearing: Trade-In Reward Scheme
The launch of the Trade-In Reward Scheme was utilised by Hidden Hearing to re-engage with existing customers and provided a loyalty rewards platform that helped consolidate this relationship. Customers were rewarded with a discounted rate on hearing aids, depending on how old their current hearing aids were, to ensure that they had affordable access to the latest technology. The scheme was offered through direct mail to enable Hidden Hearing deliver simple, effective and highly targeted offers in a cost effective manner. Success of the tailored communications campaign far exceeded expectations and demonstrates the potential of a simple direct mail campaign. It was an unprecedented success for Hidden Hearing with a huge increase in sales and a return on investment of 135.9.
Eason and Son Ltd: Thank You Card Loyalty Campaign
The Launch of the ‘Thank You Card Programme’ was utilised to reintroduce the Eason brand and reconnect with the public while also helping to celebrate Eason’s 125 years in business. The programme provided a value added reward platform that helped Eason build (through engagement and recognition) the relationship they have with their loyal customers. The ‘Just a little thank you from Eason’ tagline acknowledged customers ongoing support and loyalty. The analysis of purchased data allowed Eason to profile and segment their base and helped them understand the needs of their customers better. It enabled them to deliver simple, effective and targeted offers. Success of the tailored communications revealed that members in ROI are spending on average 56% more than non loyalty customers. Increasing to 61% in Northern Ireland.
Coty Ireland: Coty Ambassador Programme
Agency: Chilli Pepper Marketing
Coty Ireland owns some of the largest cosmetic and fragrance brands in the world including Rimmel, Sally Hansen, New York Colour to name a few, and are constantly expanding their product range into pharmacies and retail outlets across Ireland. As their products are sold in pharmacies, the cosmetic and fragrance counter staff are key to the success of their business. Building a relationship and driving loyalty from these customers is therefore imperative for Coty. These customers are asked for recommendations on products every day by consumers, so Coty needed to ensure they recommended Coty products over all others. Coty took a brave step and embarked on the development and implementation of a best in class B2B CRM strategy - The Coty Ambassador Programme, with the main objective being to build a network of Coty Ambassadors that would recommend Coty products over any other cosmetic and fragrance products in-store. This B2B CRM programme was the first of its kind in the cosmetic industry in Ireland. Coty started by identifying their most valuable customers, conducting research with them to find out more about their needs and then implemented a robust communications programme to start building solid relationships with these customers. The communication included member welcome packs, quarterly newsletters that were jam packed full of beauty news, gossip and tips from Coty's leading experts from around the globe. Additional rewards to the customers included invitations to exclusive events and member only Beauty Boot Camps. The results far exceeded the objectives initially set for year 1. This campaign attracted 3 times more members than initially targeted, it achieved a Net Promoter Score of more than 80%, and it increased customer satisfaction by 10% and awareness of products by 30%.
Vodafone: Cherry Points
Agency: Target McConnells
In its first full calendar year, Vodafone Cherry Points has become one of the largest loyalty programmes in Ireland. Through the prism of purposeful play, Cherry Points rewards customers for doing what they already do, reframing what value means in the sector. It’s a programme that was built on a single minded vision, executed in a highly targeted manner, and supported by world class technology. This delivered a seamless customer experience that is constantly active, consistently rewarding, always fun and perennially engaging. Cherry Points has driven key business metrics to a level above our very ambitious target in year one. Moreover; it has delivered us a ‘pay as you go’ property that will be a constant communication platform for a significant period of time. Cherry Points has been, and continues to be, an unprecedented success, and is considered best in class within the Global Vodafone Group.