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The Core Concept of Customer Experience

April 4, 2012

Posted by Steve Deckert

  • While reading one of my favourite blogs, I had an amazingly simple, but profound, experience.

    I was reading an article titled “Only One Half of Brands Can Identify Their Most Loyal Customers” on one of my favourite blogs, Marketing Profs. Just as I had finished scrolling to the bottom and finish up reading, something absolutely astounding happened: a pop out appeared. A small, white and blue pop out containing a link to another article showed itself in the lower right hand corner of the blog. Amazing, right?

    Since most of you reading this won’t find a pop out, in itself, amazing, I should probably go into a more detailed explanation.

    I had just finished reading another great article that I believed to be valuable. The article summarized the relevant findings from a much longer winded (but still great) report from Loyalty360. I didn’t have to enter in my contact information on Loyalty360’s blog to get the (free) report, I could simply read the most relevant content on this blog post instead. Not having to enter in my contact information was something that I found value in.

    The pop out only appeared once I hit the bottom of the article, right before the comments. If it appeared earlier, it would surely interrupt my reading and I most likely would have bounced the website and valued the experience significantly lower.

    The pop out’s colours matched the website. They weren’t distracting or over-the-top. They didn’t steal my attention so I could continue reading the article. Similarly, the size of the pop out was appropriate - not too big to steal the screen and interrupt my reading. If the pop out was anything close to modern call to action buttons, it would have stole my attention and reduced the value of my experience.

    The article that the pop out was linking to was actually an article that I had previously read. In fact I had read it, thoroughly enjoyed the content, and decided it was worth tweeting to my followers, forwarded the article around the office and posted it on Facebook. The article was based on a Forrester report which claimed that new corporate roles dedicated to customer experience were gaining popularity. But back to the pop out; knowing what I’ve just read, the content suggestion was spot on - this was another article that I (coincidentally already had) found value in.

    So what does all of this have to do with customer experience and loyalty?

    You may have noticed a recurring word I used while recounting my experience: value. It is the core concept of customer experience and loyalty!

    In order to create a loyal customer, we need to deliver an experience that they find valuable. That valuable experience can be brought about in many ways: making them feel special or appreciated, engaging them to make the process more interesting, giving them status based rewards such as VIP shopping events, giving them a reward just because it’s their birthday, or something as simple as giving them a small discount because they’re loyal customers.

    When we are designing our loyalty program, we need to keep this value in mind. It isn’t enough to just give our customers the ability to interact with our store - we need to make sure we’re asking them to interact with us the right way, at the right time and for the right reason.

    Try to view your loyalty program from your customers’ point of view. When designing your program, try to take into account where your customer has been, where they are and what they’re trying to do, and what an appropriate next step is. We can’t just throw points at customers and expect them to all respond - we need to be empathetic in loyalty design.

    If you’re considering implementing a loyalty program keep this in mind when you’re initially designing your program. If you already have a program, take a second look at it - this time with your customers’ eyes. Consider the pop out, and the various ways it fit my experience perfectly in order to augment- and not interfere with - a valuable experience.

    Do you think about your customers when you design your program? What are some things that you do to make sure your customers find your eCommerce experience more valuable than your competitors?


    This post was posted in Sweet Tooth, Tutorials & Tips

Convert New Visitors Into Loyal Customers

March 27, 2012

Posted by Jay El-Kaake

  • We’ve found that merchants spend a significant portion of their budget on (expensive) customer acquisition. eMarketing is now at a point where, if you have a large enough budget, you can get customers to visit your site and purchase. Most merchants have a strategy for getting customer attention on their website. But surprisingly they don’t have an effective strategy for making these new potential customers into loyal customers who will make repeat purchases and refer new business.

    Here we’ll show you how to take a new visitor and turn them into a frequent purchaser and source of new customers.

    First, let’s determine what our customer process is, and rank customers in each stage according to how valuable they are to us. Once we do this, we can observe our customers as a funnel from least to most valuable over a lifetime:

    Sweet Tooth Loyalty Funnel Customer Experience

    Visits the site once

    Visits the site often - but doesn't buy

    Makes one purchase

    Makes one purchase, considering second purchase in the future

    Makes multiple purchases

    Makes multiple purchases and refers other customers


    Now that we are able to rank the value of a customer, our goal should be to take a customer from the top of the funnel to the bottom of the funnel. How do we do this?

    By giving an exceptional reward for their first interaction, you can significantly increase the probability of a second purchase.

    By immediately giving your customers a reward that they perceive as exceptionally valuable, you are increasing the likelihood of a customer moving from Stages #1-4 to Stages #5+, and are therefore increase the value of that customer.  This may seem trivial at first, but this simplicity sometimes gets lost in a loyalty program’s initial planning phases.

    Here are some examples of how you can create an exceptional initial reward and increase the value of your customers:

    Reward for sign-ups

    How much would you pay to develop your email list? How much is a gold lead worth to you? By acquiring customer information you gain some powerful remarketing options. An anonymous guest user is nowhere close to the value of a customer with an account - even if neither have purchased. So capturing this information is extremely important. You can reward for sign-ups with Sweet Tooth by creating a customer behavior earning rule that gives customers points when they sign-up to the store. Make sure your visitors know about this rule by actively promoting it somewhere prominent on your website so every new visitor sees it. Make it a flashy with a great call to action and watch your customer accounts skyrocket.

    Multiply the amount of points for the first purchase

    You can advertise to your new vistors a 10X bonus points for their first purchase at the store. Your customers perceive that they are being exceptionally rewarded for their first purchase. While these kind of multiplier campaigns are usually used to promote the initial purchase, they can also give customers interest in making the second purchase - in order to spend their newly acquired points balance. Make sure that you give them something that they can almost purchase with their new points. With Sweet Tooth, you’ll need to set up two rules to do this. First, set up your base rewarding rule. This will be the rule that every customer gets every time they purchase. Then create an Earning Rule that earns 9X the regular points amount (this is the bonus), make sure you set the maximum customer uses to "1" to reward only the first purchase. Now your customers will earn 10X points on their first order and 1X points on every subsequent order, and feel exceptionally rewarded.

    Show a dollar amount value for the first purchase

    Your new visitors might not the value of points. One technique we've seen many stores using is to actually display a dollar value of the points being earned on first transactions. This might look like "Earn $20 in store reward dollars when you make your first purchase". You can accomplish this with Sweet Tooth by creating an earning rule, then modifying the design templates to display monetary currency instead of points. Alternatively (and less expensively), you can just advertise the dollar value of the credit they are going to receive. Either way, if you effectively communicate the value to your new visitors, you will see an increase in purchases.

    Try rewarding for the first AND second purchase more

    Instead of just exceptionally rewarding customers for their first purchase, why not reward them more for their second purchase as well? That might be just enough to get the customer in the habit of buying at your store. In fact, you can set up a tiered earning system so that your more regular customers, who already love your store, aren’t taking too much away from your margin. With Sweet Tooth, this type of campaign can be configured by creating Earning Rules and setting the maximum customer uses to "2", then “3”, etc. Note: don’t just set up linear points earning rules and forget about your loyalty program - make sure that you keep things interesting by having special points promotion weekends, and double points items, for example.

    Decrease the spending points cost for the first purchase

    Once we have customers purchasing multiple times, we need a boost in customer experience in order to get them to our #5 position. To do this, we will give them a full customer experience - one that includes spending their points. Give customers 2x the discount the first time they spend their points, and ensure that the first full customer engagement (discovery>purchasing>rewarding>spending) they have is a positive, enjoyable experience. This will incentivise customers to come back to the store a second time to spend their points on another purchase. Sweet Tooth can allow for an increased first spending discount by creating a spending rule and setting the maximum customer uses to "1", similar to the way we set up the earning rules.

    Ask your customers for referrals

    Now that our customers have had a full experience, and are completely satisfied with our products and services, it’s time to motivate them to become the most valuabe customer: #6 (a referring customer). 75% of customers trust recommendations from their friends & family more than any other type of advertising. This means that an effective referral is the most effective type of marketing. Setting up a referral program is easy to do with Sweet Tooth. Make sure that you not only reward for a referral’s first purchase, but also for a referral simply signing up (remember what we said in “Reward for sign ups”). If you want to create a full affiliate program (where every referral purchase is rewarded), you can also do this here. Regardless of how you choose to reward referrals, they’re important. This brings us back to where we started with this article: customer acquisition. Organic growth via referrals and word of mouth are an underused tool for most eCommerce websites. If we invest in a positive & complete customer experience, we can reap the rewards of a growing customer base. Companies like Zappos are perfect examples of organic growth by turning their existing customers into promoters.

    There are several other ways you can reward customers for their initial interaction. If you can think of any other creative ways, be sure to share with us by commenting below. It's clear to see that the initial interaction is an important one, and if it's handled correctly by the merchant, it can result in a long term, massively valuable customer.


    This post was posted in Sweet Tooth, Tutorials & Tips

What's the Most Important Factor in a Loyalty Program?

March 14, 2012

Posted by Jay El-Kaake

  • At Sweet Tooth, we've seen thousands of retailers implement loyalty programs. We've seen them all; some big, some small. Regardless of their size or budget, the most successful loyalty programs always have certain elements in common. One element that seems to boost a loyalty program from okay to highly successful is Customer Engagement!

    What does high customer engagement for a loyalty program mean?

    When designing a loyalty program, you need to make it an integral process of your customers' experience. It isn't enough to simply give your customers the ability to earn & spend points; you need to put it in the front of their mind.

    When we say an integral process in customer experience, we mean it! Don't just make your customers see your loyalty program, make them want to interact with it. Make it fun and desirable. Make it so that a brand new customer notices it, and a returning customer would miss it if you removed it.

    Where can we see this kind of high engagement success?

    At some gas stations in the USA, loyalty members can roll-back the cost of the gas right at the pump. That's right, they can swipe their card to spend their points, and the cost of gas actually decreases on the pump. What's great about this loyalty program is that customers are reminded of it every time they buy gas. The positive feeling of spending points to receive a discounted rate on gas is transferred to every purchase at the gas pump that customer makes. So even when the customer doesn't have enough points to discount their gas, they still feel excited about the future - when they be able to. While it sounds simple, it is surprisingly effective; this loyalty program has displayed significant lifts in customer spending & satisfaction.

    What can I do with Sweet Tooth to engage customers more?

    One of our most successful features that works just like the gas pump discount is our "Points Slider." The point slider allows customers to play with their points before they've even earned them. When a customer - even a new one - sees the point slider they can actively engage with your loyalty program and instantly see its benefits (a decrease in product price). By making the discount an engaging and fun process, customers will be more than happy to get to know, and participate in, your loyalty program.

    Sweet Tooth Rewards Point Slider

    Another way to make your loyalty program engaging is to tell customers when they have earned points. A simple notification is all it takes! With Sweet Tooth, you can always display a (customized) message to your customers when they earn points. Make it positive and tell them what they have just earned. "You've earned 30 points for Liking this on Facebook - 200 points gets you a free tshirt!"

    If you've got any other ideas about how customers can be engaged more and suggestions for features to add to Sweet Tooth, be sure to let us know! We'd love to hear from you!


    This post was posted in Sweet Tooth, Tutorials & Tips

Five Article Friday

February 10, 2012

Posted by Steve Deckert

One of our Favourite Loyalty Programs!

December 5, 2011

Posted by Steve Deckert

  • In this quick post we’d like to outline one of our favourite customer loyalty programs: Canadian Tire “Money”!

    For the majority of those reading this blog post who won’t know what Canadian Tire is, or what Canadian Tire “Money” represents. I’ll go into detail about both. Canadian Tire is a large Canadian retailer that offers everything you need to fix something, make something, or do something outdoors; tools, automotive parts, hardware, patio furniture and sporting goods. It was founded in 1922, and created one of the most innovative loyalty programs for its time: Canadian Tire “Money”.

    Depending on how much you spend, you’ll receive coupon vouchers that look like paper bills. These coupons never expire, and several can be used in one redemption. You can save your Canadian Tire money to redeem for the value of any product, or simply reduce the subtotal of your purchase.

    Canadian Tire money was first introduced in 1958 and has become somewhat of a Canadian cultural icon. The program was a revolutionary concept in its time, and has been one of the contributing factors for Canadian Tire’s success.

    So how has Canadian Tire updated its iconic loyalty program?

    The company leveraged its banking and credit card services from its Canadian Tire Financial Services division to offer customers MasterCard credit cards that offer customers Canadian Tire money on all credit purchases.

    It will be interesting to see how this iconic loyalty program will translate to Canadian Tire’s eCommerce operations.

    If you’d like to offer your customers a similar loyalty program, contact us and we’ll show you how to replicate this using Sweet Tooth.


    This post was posted in Sweet Tooth, Tutorials & Tips

The Ascent of eCommerce Infographic

November 28, 2011

Posted by Steve Deckert

New Birthday Points Video!

September 23, 2011

Posted by Steve Deckert

  • Sweet Tooth can now reward your customers on their special day! Send your customers an email with some bonus birthday points that will make their day. In the video we show how to configure Magento so your customers record their birth dates, set up a birthday customer behaviour rule, and even give a secret tip for any Sweet Tooth Platinum users...

    Check out the quick 3 minute video below!

    Sweet Tooth Birthday Points Video


    This post was posted in Sweet Tooth, Tutorials & Tips

Great New Sweet Tooth Instore Video!

September 20, 2011

Posted by Steve Deckert

How To Give Points for Facebook "Liking" Using Sweet Tooth

September 12, 2011

Posted by Steve Deckert

  • As many of you know by now, we've recently released a cool new feature in Sweet Tooth 1.6: points for Facebook "liking". Here's a quick video demonstration on how to set up a Facebook point rule, and how it looks for your customers. If you have or know of any requests for our next video in our "how to" series, let Steve Deckert know at sdeckert (at) sweettoothhq (dot) com

    Reward Customers For Facebook Liking


    This post was posted in Sweet Tooth, Tutorials & Tips

Replay Our Free Webinar: Cross Channel Customer Loyalty

August 30, 2011

Posted by Steve Deckert

  • On Tuesday August 30th, the Sweet Tooth team, along with Rich from Lyons Consulting Group, held a free webinar titled: "Building Cross Channel Customer Loyalty with Sweet Tooth". In the webinar, we discuss Lyons, customer loyalty metrics and best practices, show some great examples of customer loyalty programs, and discuss how Sweet Tooth, and our new product Sweet Tooth Instore, play a critical role in all of it.

    We highly recommend every ecommerce/click & brick retailer watch the video here.

    Topics covered include:

    • Lyons CG
    • eCommerce Strategy
    • Magento Powered Commerce
    • Net Promoter Score
    • Word of Mouth Marketing
    • Brand Promoters/Detractors
    • NPS & Your Bottom Line
    • Customer Loyalty
    • Types of Loyalty Campaigns
    • Brand-Specific vs Whitelabel Loyalty
    • Loyalty Best Practices
    • Agile Commerce
    • x.Commerce
    • Social Media
    • Persistent Shopping/Rewards
    • Sweet Tooth Online
    • Sweet Tooth Instore
    • POS System Integration

    A big thank you to everyone who attended the webinar, especially to those who had some great questions. See you at the next free webinar!



    This post was posted in Sweet Tooth, General Announcements, Tutorials & Tips

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