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Brand Loyalty Programs Are a Big Hit for U.K. Brands

Brand Loyalty Programs Are a Big Hit for U.K. Brands

Brand loyalty programs are traditional marketing tactics that never go out of style. Consumers always love to feel like they’re getting something in return for brand purchases that they’d probably make even without receiving rewards.

Of course, the goal for the brand is to use the loyalty program as leverage to ensure those consumers make those brand purchases again and again.

A study by Promise and Lightspeed Research conducted in late 2011 shows that every U.K. internet survey respondent in the survey belonged to at least one brand loyalty program, and 50% of respondents belonged to three or more brand loyalty programs.

Promise and Lightspeed Research found that brand loyalty programs that offer frequent and tangible rewards are the most attractive to consumers. For example, programs that reward points that members can convert into cash are extremely popular.

Following is the breakdown of brand loyalty program membership among U.K. internet users by type as found in the study:

  1. Points-based loyalty program = 92%
  2. Credit card-based loyalty program = 28%
  3. Mobile phone-based loyalty program = 27%
  4. Coffee shop loyalty program = 26%
  5. Air miles, frequent flyer, and other airline loyalty program = 19%
  6. Hotel loyalty program = 12%
  7. Independent, local business or organization loyalty program = 6%
  8. Other loyalty program = 3%
  9. Car hire loyalty program = 2%

Based on these study results, it’s incredibly obvious that point-based programs that translate to cash are the most popular by a landslide with U.K. internet users. They are more than three times more likely to be a member of a points-based brand loyalty program than the next most popular option — credit card-based programs.

Interestingly, some brand loyalty programs are more likely to be favored by specific demographic audiences. For example, 27% of the entire survey respondent population belonged to mobile phone-based loyalty programs, but 43% of the 18-34 year-old demographic group belong to mobile phone-based loyalty programs.

One of the main complaints U.K. consumers have about brand loyalty programs is the need to carry around so many membership cards in order to gain and use accrued points and rewards. Mobile phone-based loyalty programs remove that problem and make program participation much easier. It’s safe to assume that the biggest loyalty program growth rates in the coming years will come from mobile phone-based schemes.

Are you ready to create a points-based loyalty program that operates on the mobile phone-based loyalty scheme? There are clearly some opportunities and synergies to be leveraged!

Image: Marcelo Moura

In-App Mobile Purchase Revenue Predicted to Jump 477% by 2015

Mobile applications are one of the hottest marketing opportunities for brands today, but companies are still trying to figure out how to best use mobile applications to drive revenue.

According to a study by IHS Screen Digest, in-app purchases are the way to go. Revenues from in-app mobile purchases are going to jump by over 477% from $970 million in 2011 to $5.6 billion in 2015. In other words, if you’re not already investigating ways to offer your brand products and services through in-app mobile purchases, you need to bump it up the priority list.

eMarketer paired this research data with information from an ABI Research study, which found revenues from mobile applications (including in-app purchases, in-app advertising, subscriptions, and pay-per-downloads) reached $8.5 billion in 2011. The study reports that number is expected to skyrocket by over 440% to $46 billion in 2016. Putting the numbers from both studies together, eMarketer reports that in 2011, in-app purchases made up 39% of total mobile app revenues. By 2015, that percentage will increase significantly to 64% of total mobile app revenues coming from in-app purchases.

Taking it a step further, eMarketer notes that 44% of mobile app users don’t make in-app purchases until at least the tenth time they’ve used the app. This data comes from a separate study by Localytics. 33% make an in-app purchase between the second and ninth time they use the app, and just 22% make an in-app purchase the first time they use an app.

These statistics do more than just raise a big red flag if you’re not already planning ways to offer your products and services through mobile in-app purchases. Within the next few years, mobile app users will be very willing to make in-app purchases. The trick for marketers is to come up with great offers that are available to the right audiences.

Even more tricky is trying to find ways to get mobile app users to make purchases earlier rather than waiting until their tenth use or later. Power mobile app users have demonstrated they’re comfortable making faster in-app purchase decisions, but convincing the rest of the mobile app user population to reach the same comfort level will take some time and effort.

Now is the time to get started.

What do you think about the future of mobile in-app purchases? Leave a comment and share your thoughts.

Image: jhaymesiviphotography

LinkedIn Company Follow Button is Good News for Brands

Big news from LinkedIn this week — it just got a lot easier for companies to increase the number of followers on their LinkedIn Company Pages! LinkedIn announced the launch of the LinkedIn Follow Company button on the LinkedIn blog this week, and companies like AT&T, Sony Electronics, and American Express OPEN are lining up to install it on their websites and blogs. With 2 million companies in the LinkedIn network, it’s safe to assume consumers will start seeing the new LinkedIn Follow Company button across the web very soon.

LinkedIn is hyping the benefits of following Company Pages as a great way to keep up with company news, job openings, and industry trends. A distinct effort is being made by LinkedIn to position Company Pages as very different from Facebook Pages for brands and companies. For example, AdWeek reports the following from the LinkedIn announcement this week:

  • LinkedIn members are professionals and have high expectations for the companies they follow on the site.
  • 60% of LinkedIn members expect Company Pages to offer industry insights and news.
  • Approximately 1 out of 2 LinkedIn users who already follow Company Pages claim they are more likely to buy products or services from a company that is more engaged and interactive with its followers.

As LinkedIn’s director of corporate communications, Hani Durzy, told AdWeek, LinkedIn members are, “more strategic in their decisions to follow companies here as opposed to other networks.”

Companies that recognize the difference between audience expectations on LinkedIn versus Facebook or other social destinations will experience the highest levels of success through their Company Page activities.

It’s easy to get the code for the LinkedIn Follow Company button and to add it to your company website, blog, and other online destinations where your company or brand have a presence. When LinkedIn members follow your Company Page, your status updates appear in their LinkedIn home pages giving you more exposure and more opportunities to engage with them. In other words, if you haven’t gotten the LinkedIn Follow Company button yet, get it now. It can only help your company and brand grow.

Real CSR progress on Slavery & Human Rights

Most people know the London railway station Fenchurch Street because it was once important enough to be included on a Monopoly board.  Today, and quite bizarrely, it’s the only railway terminus in Central London which isn’t directly connected to The Tube.

Fenchurch, for those who are not Douglas Adams fans, is also the name of the lady who “finally knew how the world could be made a good and happy place” but was sadly blown up (along with the Earth) to make room for an interspace bypass before she could tell anyone.

I have a certain sympathy with Fenchurch the lady.  I know how CSR can be used to make the world a better and happier place, but my solution has nothing to do with profits or the creation of wealth.

Thankfully I’ve not yet been blown up to make way for a bypass, but the way business continues to ignore human rights (as opposed to social engagement) is self defeating, This is why a new law in California, the eighth largest economy in the world, makes such a huge difference. [Read more…] about Real CSR progress on Slavery & Human Rights

Generation C Redefines Media Consumption

Americans born between 1978 and 1994 are now between the ages of 18 and 34. This is a generation of people that grew up with VCRs and may never have seen a black and white television let alone a television with a dial instead of a remote control. Even the oldest members of this generation spent most of their lives with mobile phones and Internet access. Many have never had the need to use a pay phone and have never seen a corded telephone with a rotary dial.

According to a new study by Nielsen, this generation has been dubbed Generation C — the Connected Generation, and they’re changing the world of media consumption in ways previous generations saw only in Star Trek episodes and James Bond movies.

As Nielsen explains, this generation “is taking their personal connection—with each other and content—to new levels, new devices and new experiences like no other age group.” Members of Generation C make up 22% of the population of the United States, and their preferred media consumption habits are changing the way brands communicate with consumers.

This generation of people might only make up approximately one-fifth of the U.S. population, but they represent a large segment of consumers who watch online video (27%), visit social networking sites and blogs (27%), own tablet devices (33%) and use smartphone devices (39%). They truly are “always connected” and they expect everyone else in their world to be connected at all times, too.

Brands have to find new ways to stand out in the clutter of media messages that members of Generation C filter through each day, and brands have to learn how to break through that clutter through new media opportunities.

The need to redefine marketing for a new generation of consumers isn’t new. Advancing technology and communications and evolving social and political views play a large role in redefining each generation and marketing has to change as a result. If your brand wants to connect with Generation C, you need to start thinking and living like them. They’re unique, just like every generation before them.

You can get more details in the complete report: Nielsen and NM Incite’s U.S. Digital Consumer Report.

Image: Martin Abegglen

Celebrity Brand Endorsers Can Still Give Brands a Positive Sales Lift

sofia vergara cover girlResearch has shown again and again that celebrity brand endorsers don’t typically drive brand sales, but there are always exceptions to every rule. In a recent study, Women at NBCUniversal determined that several celebrity endorsers are making a positive impact on a number of brands. What will surprise you even more is who those celebrities are and which brands they’re pitching.

Women at NBCU used its Brand Power Index (BPI) to track 500 brands between August to December 2011 that are most talked about by women. The results of the study are based on a compilation of online search data, social media buzz, and person-to-person interviews. The celebrity endorsers and the brands they pitched that had the biggest impact on female consumers and got the most buzz from women were:

  1. Maria Aragon for Gap: Gap jumped up 49 spots on the Brand Power Index with the help of the 11 year-old YouTube star singing “I Want Candy” in the company’s holiday commercial.
  2. Selena Gomez, David Hasselhoff, and Cookie Monster for Kinect for Xbox 360: With this ensemble cast of diverse celebrity endorsers pitching a variety of Kinect products, the brand climbed 119 places on the Brand Power Index.
  3. Sofia Vergara for Diet Pepsi, Kmart, and Cover Girl: Sofia Vergara endorsed three brands during the holiday season and all three of them moved significantly up on the Brand Power Index — Diet Pepsi jumped 49 places; Kmart increased 29 places; and Cover Girl experienced a 37 spot increase.
  4. Ty Burrell for Minute Maid: In a continuation of Minute Maid’s “Beta male persona” commercials that began in 2010, Ty Burrell helped the brand jump 121 places on the Brand Power Index.
  5. Jon Bon Jovi for Advil: Sharing his personal story of chronic pain and how Advil helped him relieve some of that pain, the rock star helped the Advil brand rise in the Brand Power Index.

While these brand experienced a positive lift in buzz among the important female consumer audience in late 2011, the question is whether expensive celebrity endorsements drive the required ROI and whether that lift can be sustained. Every brand wants to raise awareness, increase positive sentiment, and drive buzz, but if that buzz doesn’t translate into sales at some point, then additional investments will need to be made to turn buzz into sales.

The lesson to learn from the Women at NBCU study is simple. Celebrity endorsers can have a positive effect on brand buzz and sales. However, this is an area where you need to tread carefully. Celebrity endorsers aren’t cheap and their reputations can change in a split second. Just ask Pepsi who learned that lesson when it ended its relationship with Madonna. That’s not the first or last time a celebrity endorser and brand had to part ways at the brand’s expense, and that’s not a road you want your brand to have to travel.