In this four minute video, Thanx CEO Zach Goldstein explains how to eliminate marketing failure — including 4 best practices to ensure the highest customer retention rates possible.
Marketing, at its core, is about one thing: customer engagement. Every single piece of marketing has the goal of producing a new, desired customer behavior.
However, most customer engagement strategies need significant improvement — 58% of marketing programs aimed at increasing customer loyalty fail. To that end, we put together a brief video explaining exactly how to prevent marketing program failure. By implementing the 4 best practices outlined by Thanx CEO Zach Goldstein, brands will see increased customer retention rates, sales, and satisfaction.
The key analogy to understand for those worried about marketing failure
Remember, marketing and customer engagement has one goal: to change customer behavior (e.g. earning an incremental visit or increasing average spend). Customers have to do something that they aren't currently in order for marketing to work.
And it's for this reason that there's one analogy better than all others that explains how to address marketing failure: successful consumer marketing is exactly akin to getting a friend to run a race around a track.
Watch the video now to learn more, or read on.
Four best practices to prevent marketing failure
Think about what it would take to get a friend to run a race around a track. First, you'd have to make the race worth your friend's while. If the incentive is too low, your friend won't start running. If it's too high, you won't see any incremental benefit yourself once your friend completes the race — exactly like marketing and loyalty program incentives.
Second, your race cannot be too challenging. Here's where hurdles become a huge problem. The minute your friend trips over a too-high hurdle, they're going to bail on the whole thing and not complete the race.
Again, marketing works exactly the same way. Understanding what is retention and how it works comes down to figuring out how to make marketing more effortless for consumers. If a consumer has to scan a QR code every time they enter a store to earn credit for a visit, that's too many hurdles. Only a miniscule amount of consumers, if any, will ever complete the entire race. By stripping out hurdles, more and more consumers will complete the goal (earn the incentive), which ultimately benefits your business.