The Corporate Marketing and Sales Spend Landscape is an infographic about publicly traded companies and how much revenue they spend on sales & marketing. The general rule of thumb, based off of a 2014 Gartner Research study, is that a company should invest 10% of their revenue into marketing. However, a 2014 CMO survey, published by the American Marketing Association and Duke University, came to find that the 10% rule isn’t true for all types of companies.
Like a fine Vino
Over 60% of Italy’s national income comes from tourism, which makes sense given that it is the 4th most visited country in the world. The country ranks high on Pornhub’s list too, in that they rank 7th for most visitors to Pornhub. It’s nice to see that Pornhub is so popular in the country credited for bringing us game changing inventions like pizza or the piano. Speaking of which, it should also be noted that Italian is widely known as the language of music in that words like lentissimo and staccato are used for music direction. In regards to the amount of time that the average Italian user spends on Pornhub, the 8 minute and 19 second session is rather rapido when compared to the international 9:16 average length.According to our anonymized demographics data provided by our analytics software, 20% of Pornhub visitors in Italy are female, which is 3 percentage points below the international 23% proportion. Seems like a bit of a pepperoni party, join the fun ladies of Italy! The birthplace of pizza does impress us with their top viewed category, which is a nod towards their ability to appreciate that things tend to get better with age. The Mature category tops off the list, followed by Teen and then a little further down in 5th, Big Tits, inspired perhaps by the fact that 80% of the country’s terrain is hilly or mountainous. Comparatively, nearby Croatia also appreciates a slightly older crowd with regards to their top viewed categories, with MILF coming in first and Mature coming in second, though in countries like theCzech Republic and the USA, Teen reigns supreme. Let’s jump back to Italy’s affinity with age for a second though.As we reported on our post pertaining to age demographics, as people grow older, they tend to watch porn that is more representative of themselves. Depicted above is a breakdown of Italy’s Pornhub viewers by age, compared to the worldwide proportions. As we can see, Italy has higher numbers of viewers in older categories, which likely has to do with why the Mature category is so popular. Comparatively, in countries like India which has a much higher proportion of younger viewers, the Teen category ranks considerably higher than Mature.
We’ve seen it before and we’ll see it again; in virtually every country Pornhub has profiled, the top searches tend to relate to that country’s nationality. People in countries like Croatia, the Czech Republic and Brazil tend to search for their own countrymen (and women) the most, and Italy very much follows suit. ‘Italian’ tops the list as the most searched term, followed a little further down by ‘italiana,’ ‘italia’ and ‘italiano’. We also see some mature themed searches towards the top of the list like ‘milf’ and ‘mom’ in second and third place respectively, which again likely has to do with the nation’s higher proportion of older viewers. The real kicker here is the prevalence of podiatry-related searches like ‘footjob’ and ‘feet’…then again the country is shaped like a giant boot so the fetish is understandable.Italy is famous for it’s fashion houses. Labels like Valentino, Armani, Versace, Gucci and Prada are known for outfitting the world’s A-listers, but we’re a little more interested in which XXX-listers Italians most prefer to admire sans clothing. Industry goddess Lisa Ann (NSFW) claims the number one spot but Italy is one of the key European hubs for porn production and as such, is home to many popular performers who also rank highly. Take for instance stunner Valentina Nappi (NSFW) in at 2nd place or Sara Tommasi (NSFW)in third, with the most notorious Italian stallion of all, Rocco Siffredi (NSFW) taking 4th.
There are vast cultural differences from one region to another in the country, a fact which is also reflected in the considerable differences in lasting time from one area to the other. For instance, in Campania, the national 8:19 average time drops by a whopping 40 seconds. The region is however home to some of the most breathtaking sites in the world, namely the famed Amalfi Coast, Mount Vesuvius and the Island of Capri so it’s very well possible that the inhabitants are spending a little more time taking in the sights elsewhere than on Pornhub.Over in Friuli-Venezia Giulia, visits to Pornhub actually last an average of 14 seconds longer than 8:19, perhaps due to the fact that the region is understood as being a primary socioeconomic connector to Central and Eastern Europe due to it’s border-sharing location. That’s a lot of pressure, but there’ s no better way to beat stress than by an extended visit to Pornhub! Let’s take a look now at how the Holidays affect Pornhub traffic in the country.As we saw in our 2014 Year in Review, New Year’s Eve is a major interrupter in terms of the effect that the holiday has on Pornhub traffic. The effect was especially prominent in European countries like Sweden and the Netherlandswhich each saw near 70% dips in traffic on average, though Italy isn’t very far behind with it’s considerable 59% drop. In our recent report on Pornhub traffic during Easter, Italy was proved to be one of the countries most affected by the holiday with it’s notable 27% drop, though it seems that Italians prefer to celebrate Liberation Day by spending a little more time on Pornhub as made evident by the slight 3% increase in traffic on this day.
Veni Vidi Device
We’ll close off with a look at which devices Italians prefer to peruse Pornhub with. Italy is on the same page with most of the rest of the world in terms of tablet use, in that they match the international 11% traffic proportion rate. They’re a little less into watching porn on their smartphones than the rest of the world as demonstrated by their higher rates for desktop usage and the lower proportion of traffic deriving from phone use. Overall, Italian traffic proportion rates closely resemble those of Spain, also in the Mediterranean.With that we’ll say arrivederci to Italia! We’ll be back soon with more Insights, but feel free to give your two cents in the comments section below.
[Source: Pornhub Insights]
The award for longest Pornhub sessions on average for an American city goes to Mountain View, CA where they somehow manage to last a marathoning 21 minutes per session
I still wonder why Cupertino’s cousins shows only a disappointing 8:58 stamina… maybe a side effect of “one Apple a day”?
Lets’ warm up this freezing traditional Xmas time with a brand new article from my XXX World section.
Who last the longest? And yes, there’s plenty of date for countries and cities all over the world!
Don’t be scared about the topic, it’s absolutely SFW.
Ever wonder how your lasting time compares to others around the world? The Pornhub statisticians have got you covered. As a part of a special collaboration with Gizmodo, we’ve got the dirt on the longest and shortest comings and goings on the world’s biggest porn site. The following infographic allows you to click through and see how long on average Porhub users around the world spend on the site by country and US state, as well as by city again on both the international and individual state levels. The data used was compiled over the Fall of 2014.
Who lasts the longest of them all? That honor goes to The Western Sahara up in North Africa, where visits last an impressive 16 minutes and 16 seconds on average. China and the Philippines also have some admirable lasting power, clocking in with 14:34 and 14:22 minute long sessions on average. Session lengths drop by around 60% comparatively when we head over the the Middle East, home to some of the shortest Pornhub visits in the world. Bottom 3 worldwide are Palestine, Iraq and Antarctica each only last around 5 minutes.
If you’ve ever been curious about how long some of the world’s major metropolises masturbation sessions tend to last, look no further than to this relevantly themed section of the interactive infograph. Sessions span a leisurely 13:58 minutes over in Kingston, Jamaica, and over in the US, Los Angeles lasts around 10 minutes and 44 seconds per session. The good times continue to last in Johannesburg, South Africa with visits lasting around 10:35, outlasting Canada’s capital of fap, Edmonton, clocking in at 10:27. Efficiency rules in Baghdad where sessions are the shortest on average in the world, generally lasting only 5:32. Tokyo only goes for around 6 and a half minutes while Istanbul lasts a mere 7:21 on average.
Over in the land of the free, visits to Pornhub never really dip under 9 minutes on average. In Arizona, where sessions are the shortest in the country on average at 9:21, they still have a noteworthy near 4 minute gain over Baghdad. Pornhub visits span the longest in Hawaii, where they go for around 11 and a half minutes on the regular as is the case in the Southeastern states of the country such as Georgia, Arkansas and Mississippi, where they tend to last around 11 minutes on the site. The award for longest Pornhub sessions on average for an American city goes to Mountain View, CA where they somehow manage to last a marathoning 21 minutes per session, which blows New York City’s average of 10:05 right out of the Hudson. NYC’s average time still more than doubles Plainview, Nebraska’s mere 4:37 average session duration.
That’s a wrap! Let us know what you think of these findings in the comments section below.
[Source: Pornhub Insights]
Continuing our tour of what gets people going around the world, I headed to the Mediterranean to take a look at the porn viewing habits of Italy, my homecountry.
This time our data comes from YouPorn.com, one of the most popular sites in the PornHub Network.
The Italians are coming
One thing’s for sure, Italians do love YouPorn! Italy ranks number 4 worldwide for the most visitors to YouPorn each day.
Monday’s are the most popular day to rack up those visits, particularly between 3pm – 4pm. Sunday is the least popular day, and traffic to YouPorn is lowest between 4am – 6am.
Italians are known for their sexual prowess, and according to our data the reputation is well-deserved. They spend an average of 10 minutes and 43 seconds on the site (compared to a world average of 8 min 56 sec), making them the European nation with the most stamina.
The Lombardy region pulls slightly ahead of the rest of the country, averaging 12 seconds longer per visit.
What turns Italians on?
Every nation has its own predilections where porn is concerned, and Italy is no different as you can see from the charts below. Italian actress-cum-pornstar Sara Tommasi takes the top spot for popular searches, keeping in line with the country’s clear preference for local talent.
Italy’s favorite devices
How do Italians like to look at YouPorn? 60% opt for a desktop PC, with mobile and tablet traffic trailing at 29% and 12% respectively.
If you like this article, dont’ forget to chek the previous posts in the XXX World Series:
Considering the huge success achieved by the first post “XXX World: Most Searched Porn Terms By Country and State & Average Daily Impressions“, I can definitely say that this is a true HOT topic.
So, here we are with some brand new infographics to better understand the topic, thanks to Vincenzo Cosenza aka @VinCos… enjoy!
What are people looking for, when they are looking for sex? Speaking of web searches, Google knows a lot about this stuff, obviously, but doesn’t tell. PornMD, instead, has decided to share some information about sex searches related to PornHub properties (PornHub is the most visited porn website of the world). A new section called PornMD LIVE shows what users from all over the globe are searching for, in real time.
Another section shows the top 10 most commonly searched terms on the network over a 6 months period, for each country.
So I have decided to aggregate these data in order to visualize similiarities and differences among sex searches from different countries.
Sankey diagram allows to easely see countries on the left and searches on the right. Common keywords are represented by bigger boxes.
Overall there is a tendency to search for themselves: for example, the top search term for Italy is “Italian”, Germany’s is “Germany” and so on.
Common sex fantasies in Europe are related to: amateur, mature, massage, casting, MILF, teen, anal.
But there are countries like Ireland, Romania, Hungary, Finland, Ukraine, that have peculiar, and sometimes weird, porn tastes. For example, Irish are looking for “drunk” people, Romanians and Hungarians for “mom and son” scenes.
Expanding the work to all the globe, I have identified the most common terms for each continent. In the data visualization below you can see the most shared keywords worldwide. MILF, teen and anal seem to be the most recurring ones.
In 2012, Google along with Jim Lecinski published a fantastic book that explored how digital customers made decisions in what Google refers to as “The Zero Moment of Truth.” The ZMOT as it’s abbreviated, helps strategists discover relevant strategies and tactics on how to show up at the right place, at the right time and with the right content in a digital ecosystem.
In a world where consumers “Google it” to begin their digital journey, ZMOT revealed that brands need to re-think the connected experience and the resulting click path. But what happens when the web sites that appear in traditional Google search results no longer suffice for someone so connected that impatience becomes a virtue? This is after all someone who begins the journey on a smart phone or tablet tapping review sites and social networks to make information come to them before conducting formal research. Some call it the lazy web. Others refer to it as the social web. In the end, it’s just how people make information come to them. Once they do, it becomes the norm.
Even though web sites technically work on smaller screens thanks to adaptive and responsive design, they’re still web sites. In the very least, they go against the very nature of how someone interacts with the screen and what it’s designed to make possible. Here, it’s less about clicks and scrolls and more about pinching and swipes. That’s not all of course. The intention of a web page is called into question, or should be, in a time of connected consumerism. Step back and think about it for a moment. The information included on web sites isn’t written for you and me, it’s written for the person approving it. When you consider context in addition to the screen in the Zero Moment of Truth, you learn that people aren’t seeking marketing copy, they’re seeking the experiences of others to help humanize information and apply it to their state of mind, needs, and aspirations. Let that sink in because I’ll wager it’s not where a majority of your investments are allocated right now.
So, the truth unfolds…
In my latest book, “What’s the Future of Business”, I introduced the Ultimate Moment of Truth, that moment where people who convert an experience into discoverable content in any one of the countless social platforms people use to stay connected these days. And in this connected economy, the Ultimate Moment of Truth, or UMOT, becomes the next person’s Zero Moment of Truth, over and over again.
In addition to web sites, landing pages and corresponding SEO and SEM strategies, businesses now must consider how to create experiences in every moment of truth that aren’t just meaningful or remarkable, but also shareable. The future of brands now lies in how UMOT meets ZMOT throughout the customer life cycle. See, without design, these experiences are left to chance. Instead, marketers must begin to architect, foster and optimize positive experiences in each moment that’s native to each screen, efficient in steps, and tied to desirable outcomes.
When Google learned of my work around UMOT, the team reached out to consider how me might work together to help marketers better connect the dots to enhance the ZMOT. Our first collaboration resulted in a whitepaper that’s free to download, “Give Them Something to Talk About: Brian Solis on the Art of Engagement.” I’ve included parts of our discussion below.
Give Them Something to Talk About
What does engagement mean for you?
Engagement is really about Actions, Reactions and Transactions; something that I refer to as A.R.T. Engagement, for me, is something that locks in an interaction or exchange. Thinking about engagement in that way inspires a different approach for content creation; you want somebody to feel something, not just see it.
If you think about engagement in this way, is it measurable?
Absolutely. You define your desired outcome and that outcome becomes what you measure. It’s the relationship between cause and effect. Unfortunately, most marketers don’t consider the outcome to be more than some low-level engagement measure — a ‘Like’, a ‘Share,’ a comment — when in fact you could introduce an emotion. If you love something, you share it. This isn’t just about impressions; this is about expressions. You want people to share it and do something and that should be designed into your engagement strategy.
How can you enlist ‘shares’ to support a campaign objective?
No content should be designed today that isn’t inherently shareable. Take the Jeff Gordon Pepsi MAX commercial on YouTube. It comes from that same thinking that goes into Super Bowl commercials, where you stop and go, ‘Oh my god, that is the best commercial I’ve ever seen!’ For some reason marketers only get that creative once a year, but YouTube and the social web are unlocking that type of thinking. Everything you introduce to the social web should have the same caliber of creativity that goes into a Super Bowl commercial.
Is there a tendency for marketers to feel so overwhelmed by technology that they lose sight of their basic instinct for how consumers behave?
Look, I’m a consumer, you’re a consumer. When we talk about the brands we love, it’s very human and natural. But when we try to talk to people like us, we blank out and turn into ‘Marketing Man.’ We lose that human nature, that empathy. If you take a technology perspective, you are forever reacting. The minute you take a step back and say, “What’s the bigger mission?” you start to realize what you are trying to do is change behavior. This relationship between cause and effect is very human. Once you articulate that vision, technology becomes an enabler. It starts to work for you.
Consumers share brand experiences, whether the brand is listening or not. Do brands listen enough to those conversations?
Author Maya Angelou said: “People will forget what you said, people will forget what you did, but people will never forget how you made them feel.” Take Twitter, Facebook, YouTube — what is shared is experiences. Somebody is eating a delicious dinner; that picture is published and shared. Somebody spots a product that makes them feel fantastic; it too becomes a shared experience. There are shared experiences that represent every step of the customer journey. These conversations existed before technology, but now they are searchable, retrievable and building on each other. Shared experiences, in aggregate, become the brand.
What happens when a brand’s marketing doesn’t reflect its image among consumers?
You may say: “This is our brand, this is what it represents, this is what we want you to feel, say, share.” But always ask yourself: “What is the collective experience that is published across the social web?” If you compare the two, many times there’s a disconnect between promise and real world experiences. I refer to this as the ‘experience divide.’ In many experiments I’ve found the brand promise and the experiences that are felt and shared are not even close to being aligned. That’s a problem.
How can brands close that gap?
If we spent less time ‘talking’ about our brand and brand promise and more time designing how we bring it to life, the experience divide would naturally narrow.
What can brands do when online consumers’ first impressions are being shaped by other consumers’ experiences?
These conversations — these shared experiences — they don’t self destruct. They build upon each other, creating a collective index. Search engines plug into this cloud of shared experiences and that Ultimate Moment of Truth, or UMOT for short, of shared experiences becomes the next person’s ZMOT. Experiences form impressions. Impressions become expressions as they’re shared. Expressions form new impressions. The link between UMOT and ZMOT is the future of branding and relationships.
This is a new way of thinking. As a brand you have to create the experiences you want people to have and share, and reinforce that through positive conditioning, so those are the things people find — over and over again. To get people to share more positive things, you have to first make sure they have a positive experience. This is a renaissance opportunity for brands to look back: ‘Why did we start this company? What are we trying to do?’ Because in the social web, it is those experiences that become your brand.
According to Inc., it costs a business about 5-10 times more to acquire a new customer than it does to sell to an existing one — and on average those current customers of yours spend 67% more than a new one. So, what are you doing to keep your customers coming back to your business? If you’re like 65% of marketers, your company has implemented a loyalty program.
But is it working? According to the 2011 Colloquy Customer Loyalty Census, of the $48 billion worth of perceived value in reward points and miles distributed by American businesses annually, one-third goes unredeemed by consumers. Companies lose money on time and effort, and customers get no more value from the businesses to which they are “loyal.”
So how do you keep your business out of that one-third segment? How do you convey enough additional value in your programs to keep your customers coming back? It’s time for marketers to look beyond convoluted rewards systems and offer actual value to customers using their loyalty program. To get you started, here are some ideas for customer loyalty programs that might work for your business.
7 Customer Loyalty Program Ideas for Your Business
1) Use a Simple Points System
This is the most common loyalty program methodology. Frequent customers earn points, which translate into some type of reward. Whether it’s a discount, a freebie, or special customer treatment, customers work toward a certain amount of points to redeem their reward. Where many companies falter in this method, however, is making the relationship between points and tangible rewards complex and confusing. Fourteen points equals one dollar, and twenty dollars earns 50% off your next purchase in April! That’s not rewarding, that’s a headache. If you opt for a points-based loyalty program, keep the conversions simple and intuitive.
One example of a company using a points-based loyalty program well is Boloco. They speak the language of their audience by measuring points in dollars, and rewards in food items. Customers swipe their stylish Boloco card at every purchase and the card tracks the amount of money spent. Every $50 spent earns the customer a free item. Doesn’t matter if they choose a super jumbo burrito or an extra small smoothie – it’s free after $50. This is an example of a company simplifying points with an accessible customer reward system.
Although a points system is perhaps the most common form of loyalty programs, it isn’t applicable to all business types — this type of loyalty program is most appropriate for businesses that encourage frequent, short-term purchases.
2) Use a Tier System to Reward Initial Loyalty and Encourage More Purchases
Finding a balance between attainable and desirable rewards is a challenge for most companies designing loyalty programs. One way to combat this is to implement a tiered system. Offer small rewards as a base offering for being a part of the program, and encourage repeat customers by increasing the value of the rewards as the customer moves up the loyalty ladder. This helps solve the problem of members forgetting about their points and never redeeming them because the time between purchase and gratification is too long.
Virgin Airlines’ Flying Club inducts members at the Club Red tier, then bumps them up through Club Silver and Club Gold. Club Red members earn miles on flights and get discounts on rental cars and hotels. Club Silver members earn 50% more points on flights, expedited check-in, and priority stand-by seating. Club Gold members get double miles, priority boarding, and access to exclusive clubhouses where they can grab a drink or get a massage before their flight. The key is to offer benefits in the early stages to hook the customer into coming back. Once they do, they’ll realize that “gold” status isn’t unattainable, and offers really cool benefits.
The difference between points and tiered systems is that customers extract short-term versus long-term value from the loyalty program. You may find tiered programs work better for high commitment, higher price-point businesses like airlines, hospitality businesses, or insurance companies.
3) Charge an Upfront Fee for VIP Benefits
Loyalty programs are meant to break down barriers between customers and your business — are we seriously telling you to charge them a fee? In some circumstances, a one-time (or annual) fee that lets customers bypass common purchase blockers is actually quite beneficial for business and customer alike. By identifying the factors that may cause customers to leave, you can customize a fee-based loyalty program to address those specific barriers.
In 2011, eCommerce shopping cart abandonment hit a record high of 72%, and is still rising. This abandonment is often caused by “sticker shock” after tax and shipping prices have been applied. ECommerce giant Amazon found a way to combat this issue in their loyalty program called Prime. For $79 annually, Prime users get free 2-day shipping on millions of products with no minimum purchase, among other benefits.
This program is innovative because it charges loyal customers while providing enough in return for those frequent shoppers to realize the benefits. Analysts estimate that Amazon actually loses about $11 annually for each Prime subscriber, but makes up for it in increased transaction frequency that would not have otherwise happened without their exclusive benefits.
Clearly this system is most applicable to businesses that thrive on frequent, repeat purchases. For an upfront fee, your customers are relieved of inconveniences that could impede future purchases. Amazon has mastered this for eCommerce, but this loyalty program model also has potential to work for B2B businesses who deliver products to businesses on a regular basis.
4) Structure Non-Monetary Programs Around Your Customer’s Values
Really understanding your customer means understanding their values and sense of worth. And depending on your industry, your customers may find more value in non-monetary or discounted rewards. Every company can offer promotional coupons and discount codes, but businesses that can provide value to the customer in ways other than dollars and cents have an opportunity to really connect with their audience.
Patagonia, an eco-friendly outdoor apparel company, realized that their customer needed more than just points and discounts from a loyalty program. Late last year, the company implemented its Common Threads Initiative. In it, they partnered with eBay to help customers to resell their highly-durable Patagonia clothing online through the company website.
This program builds on their brand of sustainability and creating a high-quality product, and it matches perfectly with the company’s customer persona by providing a value that they really care about. So before implementing a loyalty program of this nature, be sure you’ve researched and designed an in-depth customer persona!
5) Partner With Another Company to Provide All-Inclusive Offers
Strategic partnerships for customer loyalty, also known as coalition programs, can be extremely effective for customer retention and company growth. Again, fully understanding your customers every-day lives and their purchase process will help determine which company is a good fit as a partner.
American Express has a huge partner base with companies across the country. Their recentTwitter Sync campaign rewards customers for tweeting about them by syncing discounts and deals with Twitter #hashtags. According to Visibli.com, cardholders have redeemed over $2,000,000 in rewards. Participating companies that are benefitting from their coalition with Amex include Whole Foods, Staples, and Zappos.
For example, if you’re a dog food company, partner with a veterinary office or pet grooming facility to offer co-branded deals for mutual benefits for your company and your customer. The target audience obviously owns a dog, so any services that dog will require offer added value from your company. Providing customers with value beyond even what your company can offer will show that you understand them, and grows your network to reach your partners’ customers, as well.
6) Make a Game Out of It
Who doesn’t love a good game, right? Turning your loyalty program into a game is a fun way to encourage repeat customers and, depending on the type of game you choose, help solidify your brand’s image.
GrubHub, an online food ordering and delivery website, started Yummy Rummy late last year. Once customers place three unique orders through GrubHub, regardless of price, they get to play a game for a chance of winning free stuff. Players choose one of four cards and have a 25% chance of winning a free dessert, drink, gift card or other cool stuff.
It’s important that customers understand you’re not duping them out of rewards, though. The odds should be no lower than 25% and the purchase requirements to play should be attainable. This type of loyalty program has potential to backfire if customers feel like your company’s jerking them around to win business. Executed properly, however, this type of program could work for almost any type of company, even an off-the-beaten-path B2B company. If your audience enjoys having a little fun and purchases frequently, this type of program can make the buying process fun and engaging.
7) Scratch the ‘Program’ Completely
Considering how many marketers are offering loyalty programs (whether they are effective or not is another story), one innovative idea is to nix the idea all-together. Build loyalty by providing first-time users awesome benefits, hooking them, and offering those benefits with every purchase.
The concept sounds simple, but one of the most innovative companies on the planet implements this strategy: Apple. Even the most loyal Apple customers don’t get special rewards or discounts … because they don’t offer them to anybody. Apple “enchants” customers by delighting them with a product or service the first time. The loyalty is voluntary and long-lasting, according to Apple evangelist Guy Kawasaki. Apple has plenty of supporters, both online and off, ready and willing to rave about their product. For them, loyalty happen organically.
This minimalist approach works best for companies whose products or services are unlike any other. That doesn’t necessarily mean that you offer the lowest price, or the best quality, or most convenience — I’m talking about redefining a category. If, like Apple, your company is pioneering a new product or service, a loyalty program may not be necessary. Customers will be loyal because there are few other options as spectacular as you, and you have communicated that value from your first interaction.
Measuring the Effectiveness of Your Loyalty Program
As with any initiative you implement, there needs to be a way to measure your marketing success. Customer loyalty programs should increase customer happiness and retention; and there are ways to measure these things besides in rainbows and sunshine. A lot of ways, actually. Different companies and programs call for different analytics, but here are a few of the most common metrics companies watch when rolling out loyalty programs.
Customer Retention Rate: This metric is an indication of how long customers stay with you. With a successful loyalty program, this number should increase over time as the number of loyalty program members grows. Run an A/B test against program members and non-program customers to determine the overall effectiveness of the loyalty initiative. According to Fred Reichheld, author of the Loyalty Effect, a 5% increase in customer retention can lead to a 25-100% increase in profit for your company.
Negative Churn: Churn is the rate at which customers leave your company; negative churn, therefore, is a measurement of customers who do the opposite — upgrade, or purchase additional services. These help to offset the natural churn that goes on in most businesses. Depending on the nature of your business and loyalty program, especially if you opt for a tiered loyalty program, this is an important metric to track.
Net Promoter Score: NPS is a customer satisfaction metric that measures, on a scale of 1-10, the degree to which people would recommend your company to others.
NPS is calculated by subtracting the percentage of detractors (customers who would not recommend your product) from percentage of promoters (customers who would recommend you). The fewer detractors, the better. Improving your net promoter score is one way to establish benchmarks, measure customer loyalty over time, and calculate the effects of your loyalty program. A great NPS score is over 70% — your loyalty program can help get you there!
Customer Effort Score: CES asks customers, “How much effort did you personally have to put forth to solve a problem with the company?” Some companies are vying for this metric over NPS because it measures actual experience rather than the emotional delight of the customer. A Harvard Business Review study found that 48% of customers who had negative experiences with a company told 10 or more people. In this way, customer service impacts both customer acquisition and customer retention. If your loyalty program addresses customer service issues, like expedited requests, personal contacts, or free shipping, this may be one way to measure its success.