The internet boom in the early '90s brought a new interactive channel for marketers -- new possibilities for outreach, brand awareness and loyalty -- beyond the established print, radio, and TV channels. Now, interactive is an essential element of nearly all campaigns and smart marketers know that simply being online is not enough.
An effective interactive marketing campaign reaches consumers wherever they're spending time online. A mix of viral marketing, targeted websites, email marketing campaigns, and consumer incentives can build a highly-engaged audience -- and though every brand has its own objectives and approaches to successfully reach them, they all share a common goal: brand awareness, and eventually, loyalty.
While trying to keep up-to-date on the latest interactive tools, some marketers have lost track of how powerful incentive and loyalty programs can be. They have an outdated view of them as generic or unsophisticated, with the "free iPod with purchase" program as a perfect example of a primitive reward program.
The incentive is untargeted, any spike in traffic rarely results in a return shopper, and this type of campaign typically does not result in sustained brand awareness. It lacks understanding about how narrowly marketers can target an audience to help ensure return shoppers with deep brand loyalty. Marketers also claim fear of a new model, and concerns about customer and corporate privacy issues as reasons for slow adoption of loyalty programs.
To counter some myths, and provide a few tips for the best return on investment, there are essential elements for integrating incentives or rewards into your program:
Narrow your target market
Whether it's online dating or selling auto insurance, knowing in precise measure who you are trying to target is key to a successful marketing campaign. According to Eric K. Clemons, Wharton professor of operations and informational management, "Loyalty is based on learning enough about customers to respond to what it is they need most and then inducing them to buy more."
Know who your audience is, where they go to make decisions, and what factors they consider when buying a product. Construct your message to fit defined needs, and deliver it to the right audience at the right time. Selling to women? That's one definition. Women over 35 with two kids, who own their homes? That's a narrower niche -- and if you're able to target them directly without paying for other eyeballs, you're getting more bang for your buck.
Broaden your use of web tools
Banner ads might get your brand in front of millions of people, but to convert them to customers, marketers need to leverage newsletters and postcard-style emails, surveys, promotions, and use other tools to not only get in front of, but to impact the behavior of, potential buyers.
Incorporate surveys and questionnaires when looking to reach a hard to reach or highly segmented audience.
An effective way to get surveys in front of your target audience is to simply ask them. We ask members if they would like to participate in a panel where they are rewarded for any survey they take and qualify for. This keeps habitual survey takers out of the program and keeps our response quality high.
If you are looking to reach a certain target, specific survey tools drive the right audience right to you. If an audience member responds "yes" to "Do you suffer from allergies?" the tool will then take them to a site for Zyrtec or Claritin. If the response is "no," the survey will take them elsewhere. This further qualifies responses and makes your survey efficient and direct.
Additionally, postcard emails are about sending a quick and informative message to generate interest and increase response. Creative changes make it look like a quick poignant message instead of a lengthy email. This works well in situations where the story to tell is not complex and easy to understand.
Pay to reach your target (and only your target)
It's important for marketers to have a plan or a clear client profile before engaging your audience. The vital question is, "Have I chosen a viable target?" meaning, is it actually worthwhile to market to these people?
For example, if you are a marketer for a leading migraine relief medicine, and only want to pay to reach people who suffer from migraines -- a comprehensive program lets you do that. People who do not qualify are eliminated from your list and you never pay for those.
Marketers can have all the focus, drive, and good intentions to target a group of people, but if the group isn't easy to reach, in large numbers and inexpensively, it's going to make the attempts much more difficult. Locating hard-to-find consumers online using the tools available will drive pre-qualified consumers to your doorstep. Again, no need in this technological age to pay for those you don't want to reach.
Thanks to dramatic changes in online marketing, the loyalty program has evolved. Instead of using broad, one size fits all initiatives, marketers who know how to correctly target their audience, and use the latest in online tools to get in front of them, have a much higher success rate in establishing loyal customers who come back time and again.
Loyalty programs provide clear value to the consumer. By incorporating them into a strategic series of initiatives, marketers can get the most return for their spend -- and for best results, having a narrowed, targeted audience, a portfolio of web tools, and strategic ways to reach their target will drive the most success.
Stefan DeCota is a senior vice president at MyPoints.
