Why customer loyalty is beyond likes, tweets, and shares. And what marketers should refrain from doing.

1. Customer Loyalty: Beyond Likes, Tweets & Shares
Sumedha Chatterjee

2. Loyalty, Now? You Must Be Crazy!
•Marketing myopia—Loyalty is increasingly being interpreted as
“likes” “follows”, and “re-tweets.”
•Marketers need to step back and assess how many of these
metrics are actually adding to/creating business value.
•In the era of “fluid fingers”, how do marketers build loyalty?
•Here, we examine what works (most of the times!) and what
does not.
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013

3. Loyalty: Why Is It a Digital Dilemma?
•Instead of 1:1 conversations that matter, marketers chase
scalable, automated & impersonal loyalty models that contribute
more to the digital pandemonium.
•Focus should be on delivering a “people-centric” loyalty
experience on digital, & not a faceless/lifeless loyalty program.
•Conversions are easier to accomplish & track. Traversing the
path from conversions to loyalty is the marketing equivalent of a
Mount-Etna-esque walk.
Source: http://bit.ly/14aHxmL
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013

4. Lessons Learnt: The Hard Way & Otherwise
How digital helps build loyalty?
•Engagement
•Conversations
•Share -of-heart vs mind
How digital deceives?
•Tracking vanity metrics
•Economic value of a “like”
•Crystal balling
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013

5. How Digital Helps Build Loyalty?

6. How Digital Loyalty Helps—Engagement
Engagement First:
Social is good for:
― conversations
―initiating dialogue
― challenging viewpoints
―engaging audience
Marketing Memo: Extending the audience’s love for the brand on social to
extrapolation of their purchase probability, might be, in some cases, extreme.
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013

7. How Digital Loyalty Helps—Engagement
Your brand
story
Converse and
engage here
Refrain from “selling first,” help
people connect around a shared
idea or a brand that they love
Build conversations & dialogue,
quit social extrapolation
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013

8. How Digital Loyalty Helps—Influence
The Social Influencer:
Social is good for:
―a deep dive into the influencer sea
― identifying relevant product ambassadors & their sphere of influence
― golden triangle: 1-9-90 principle of social
Marketing Memo: Identify your best friends—your brand advocates , the 1-9-
90 principle helps in deciding the marketing consideration for each of them.
Source: http://slidesha.re/110oOoH
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013

9. How Digital Loyalty Helps—Influence
1
9 90
The Big Fish
•Popular on digital media
•Everyone covets them
•Hard to “acquire”
•Marketing consideration:
engage in 1:1 digital dialogues
The Niche Experts
•Wield considerable influence
among small focused circles
•Marketing consideration:
relevance
The Slient Majority
•Just there
•Marketing consideration:
visibility
Use each marketing consideration set to build loyalty online
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013

10. How Digital Loyalty Helps—Mind & Heart
10,000+ likes on facebook?
― what does that translate into for me?
― is it valuable at all?
― are these attitudinal loyalists? If yes, persevere, because share-of-heart
precedes share-of-wallet.
―but beware, don’t obsess over likes & re-tweets
Marketing Memo: Identify what does a “like” mean to
you—social PR, a good-to-have indicator of your brand image, a must-have
metric or digital drivel. If “likes” matter to you, focus on getting the heart first,
the mind and the wallet follows.
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013

11. How Digital Loyalty Helps—Mind & Heart
Source: http://bit.ly/11uUpQq
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013
versus
Millenials Trust People Over Brands
They buy with others’ inputs & seek brand
engagement
Therefore, your customer opinions are your headlines
& share-of-voice your marketing stories

12. How Digital Deceives?

13. How Digital Loyalty Tricks—Stop Tracking Vanity Metrics
Are you tracking vanity metrics?
― “100 shares doesn't necessarily mean 100 sales—and it certainly doesn't
measure the potential value of those 100 shares”
― Most marketers don’t have the tools to correlate these digital metrics to a
potential sales pipeline.
―Likes are good, but that’s what they just are. Good, not good enough.
Marketing Memo: Identify the incremental value generated versus the time
spent in tracking these metrics. Don’t invest resources in an activity with no
scientifically justifiable sales correlation.
Source: http://on.mash.to/16oj80s, http://onforb.es/13xUXs7, http://onforb.es/11b9vL0
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013

14. How Digital Loyalty Tricks—Stop Tracking Vanity Metrics
$$
Leads
Leads
Leads
Vanity metrics
What incremental value is being
generated by tracking these metrics &
how strongly are these correlated to the
sales pipeline?
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013

15. How Digital Loyalty Tricks—Economic Value of a “Like”
Beware of digital intoxication!
―Tetra-trillions of sub-optimal data is created purely through social media,
but there is very little assessment of the economic value of such data
―How strongly is loyalty correlated at all to the marketing metrics that we are
tracking?
―There is a tendency to find “cool “metrics to track, & some of the right metrics are
un-cool & un-digitized?
Marketing Memo: Pertinent is the answer to this question: How strongly is loyalty
correlated to the marketing metrics that we are tracking?
Source: http://bit.ly/ZvTcgq
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013

16. How Digital Loyalty Tricks—Economic Value of a “Like”
Average post engagement rate =
Likes +comments + shares on a given day
----------------------------------------------
# of wall posts made by a page on a given day
------------------------------------------------------------
-----x 100
Total fans on a given day
Sample trick metric; cool & not-so-useful
The Average user:
•May not even be connected
online to the brands he loves
•May be connected online to
the brands he doesn't love
Indifference needs to be
factored in., which affects the
economic value of such
metrics.
Based on metrics such as
these, how can marketers
make evidence based
decisions?
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013

17. How Digital Loyalty Tricks—Crystal Balling
Ultimate Acid Test? Conversions & Repeats
―present loyalty tools are generating volumes of data, reports, analytics, all of
which are contributing to gigabytes of trash
―all of these lead to never ending “what if” scenarios, a drain of marketing time &
investment
Marketing Memo: Align your activities to what matters to sales & sales
professionals (is it 50%+ qualified leads generated instead of only prospects?
renewals? or share –of-voice leading to an actual purchase?) Then build
metrics to map these very requirements.
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013

18. How Digital Loyalty Tricks—Crystal Balling
We need to get to 50,000 likes
by end of Q2.
Our post-re-engagement rate
needs to be higher than the
competitor!
Our fan base needs to be
vitalized to 1M+.
What matters to sales
professionals & what we lose
out on: conversions & repeats!
What marketing ends up
building & tracking;
pseudo-loyalty!
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013

19. Read the complete story at
digitalmarketingconclave@blogspot.com
Reach me at
sumedha.chatterjee@gmail.com
Loved it? Hated it? Differ? Agree? Care to Let Know
again at sumedha.chatterjee@gmail.com
Customer Loyalty: Beyond Likes, Tweets & Shares 10/06/2013