Reward Customers Earlier

rewards just ahead

Customers should be rewarded earlier and more often in the relationship they establish with vendors.

This is true of any type of customer and any type of business. Keurig does a nice job of providing members with 10% off purchases. That’s not a ton of money when you’re buying coffee, but it’s something. More importantly, it’s an instantaneous and ongoing reward for being a member. On the flip side, Aeroplan is such a ridiculous program that you never feel like you’ll get anything (on top of which the experience with most airlines is painful.)

Discounts are an obvious way of rewarding customers, but there are other creative ways too. Everyone likes receiving presents. Hand-written thank you notes work too. Surprise ‘em and they’ll pay you.

If you build a reward program into your strategy, make the early rewards achievable and addictive. This is where a bit of smart gamification comes in handy. Some companies reward loyalty (or try to), but very few reward customers earlier on, after one or two purchases, before loyalty is proven. And I think that’s a mistake.

The reward sign picture is courtesy of Shutterstock.


Understand the Difference Between Marketing Tools, Tactics and Strategies

When it comes to marketing, you need to understand the difference between tools, tactics and strategies. A blog is a tool. Writing blog posts is a tactic. Google AdWords is a tool. Publishing ads across multiple keywords is a tactic. Combine a number of tools and tactics together and you’ve got the makings of a strategy.

A strategy is driven by the goals you’re trying to accomplish. You need to identify your goals and understand them clearly. Quantify them. “We want to increase revenue” is clearly a goal. “We want to increase revenue by 25% in 6 months through increased sales of products A and B” is much better. Attach specific, measurable targets to your goals as often as you can so you’re more equipped to make rational, fact-driven decisions.

Don’t get hung up on the tools. Should you use Twitter, Quora, Facebook or blogging? Use the tools that are right for the goals you’re trying to accomplish. Chasing the newest shiny tool and scrambling to use it as quickly as you can is a fool’s errand if you don’t understand the benefits upfront. Experimentation is one thing; there are lots of advantages to experimenting, but rushing to implement a “shiny tool strategy” is silly. Worse, ignoring “older” tools because they’re no longer as shiny is shortsighted and tells me very clearly that you don’t understand marketing.

Take a look at this Twitterverse diagram produced by Brian Solis and JESS3. If you ever needed a clear indication of the glut of tools available and just how confusing they can be, this is it. How can you just pick a tool and think, “We need a strategy for that tool!” Wrong. Match goals to tools and tactics to design a proper strategy. Don’t assume you need a strategy for a specific tool because it’s shiny.

Twitterverse

Using a tool well means understanding the tactics by which to maximize the use of said tool. Without an understanding of tactics, for all you know you could be using the wrong end of the hammer. Might still work, at least part of the time, or partially, but once you really know how to use a tool properly, with the right tactics, you can make real progress (or discover more quickly that the tool is the wrong one, not achieving your specific goals, and move on.)

When exploring how to improve marketing in your company, start at the very top with your goals. Define them. Write them down. Then investigate your marketing strategy, the tactics, and tools being used, and identify the problems. If you can’t figure this out, you’re in trouble. You won’t know what to change! Start by talking to customers, prospects and employees. Dig into how your company is perceived online. Take a look at the competition. A bit of analysis is a good thing. Get some analytics in place and start measuring what’s happening.

Jump down at this point and get right into the tools. List them all, with pros and cons, and do some research into what people are doing with them. So you’ve gone from the top (your goals and a 20,000 foot view of your current situation) to the tools of the trade. Pick the ones that you think are the best, and then get into the tactics you’ll use to maximize their value.

  1. Define Goals
  2. Identify Problems
  3. Pick Tools
  4. Implement Tactics
  5. Measure & Analyze
  6. Achieve Goals (or not)

Think of it more like a circle. Doing things in order doesn’t guarantee success but it significantly increases your odds. It gives you the opportunity to learn more quickly about what’s working and what’s not working, and adjust accordingly. Doing things out of order is absolutely like gambling; you may win occasionally, but your odds suck, and unless you’re one of the very few super-lucky ones, you’ll lose. And try not to mindlessly and rabidly chase the “shiny” tools for the sake of it. Tools are just tools. You need tactics and strategies for tools to be of any use.


The Art of Marketing in Montreal

The Art of Marketing is a conference being held in Montreal on September 30th. They’ve got a star-studded lineup, including:

It’s rare to get all of these folks (even the Montrealers in the group!) in Montreal at one time, so if you’re interested in marketing, social media, analytics, etc. it’s worth checking out.

Two important notes:

  1. Get a discount! Click this link to get $50 off the regular admission price. Cost will be $349 to sign up.
  2. Wait for the contest! The folks at Art of Marketing have agreed to do a contest with NextMontreal.com (when we launch) to offer 2 FREE tickets.. We’re working on the contest and it will get launched immediately after the site is launched (which will be at some point in August, to allow for enough time before the conference).

You can learn more about the conference and the speakers at The Art of Marketing.


About Ben Yoskovitz
I recently joined GoInstant as VP Product. GoInstant changes how we use the web, making it shareable like never before.

I'm also a Founding Partner at Year One Labs, an early stage accelerator in Montreal. Previously I founded Standout Jobs (and sold it). I'm a hands-on startup guy, helping companies grow successfully from the idea forward. You can reach me at byosko at gmail dot com.

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The opinions and commentary on this site are mine and mine alone. They do not necessarily reflect the opinions or positions of my employer, GoInstant.