I field a lot of inquires from clients in various stages of loyalty vendor selection projects. Some come with a tightly defined short list, but more often than not, they aren't even sure where to start. Customer loyalty initiatives take several forms including highly structured programs and loosely tied customer service, marketing, and product development tactics spread throughout the organization. As such, vendors of all types -- from loyalty-specific service providers and platforms to customer engagement agencies and analytics service providers -- bring loyalty strategy, management, and marketing chops to the table:
With so many different providers knocking on their door, it's no surprise that marketers feel overwhelmed by the selection process. My most recent report cuts through the clutter by organizing loyalty providers into categories based on their core offerings and delivery models. But, before you start dropping vendor names into a shortlist, you first must answer these three questions:
How does your company approach loyalty? Take stock of your existing retention tactics and how customers currently interact with your products, services, and brand. Outlining your organization’s approach will help you select new partners but also potentially enrich relationships with existing partners.
Product strategists in many industries (from CPG to consumer electronics to financial services) share a challenge with their marketing colleagues: how to leverage the power of brand. Product strategists have a number of strategic tools in their toolboxes for differentiating their products from competitors’ offerings: features (a different taste, a new technical capability, or a higher interest rate, for instance); channel, price, or brand (or based on some combination of these factors). For the moment, let’s think about brand, because some product strategists design and build their products based largely on the promise implied by their brand name.
Forrester’s new research report– leveraging a multi-year analysis of Consumer Technographics® data – shows that while brand is important, brand loyalty (defined as the propensity to repurchase a brand) has been waning. The new report, entitled “Brand Loyalty Isn’t Enough For Products Anymore,” reveals that:
· Brand loyalty is on the decline. Brand loyalty dropped in the U.S. from 2006 to 2010, our data shows. One reason? The Great Recession. Another? The strength of brands themselves: competing brands in the marketplace entice consumers to try new brands.