Zig vs Zag? Communicating with your loyalty program members

In the email vs mail challenge who wins?

Zig (email) or Zag (mail)?

(I am only focusing on these 2 direct one-one channels with the knowledge that there are others including social, mobile, apps, in-store and face to face).

The answer will depend on your criteria of assessment including response/redemption rates, cost effectiveness, time-to-market, clutter cut-through, recall, availability of mail/email data, personalisation variables and messaging type. (Any others?)

Clearly there should be a role for both, however loyalty program marketers should consider zagging more when everyone is zigging.

Also, test more.

Just to prove a point, here is a case study provided to me by KnowItAll Loyalty Systems* on a test campaign they did for their pharmacy client’s loyalty program.

Test parameters:
Channel: email (zig) vs mail (zag)
Format of mail: postcard (zag jnr) vs letter (zag snr)
Offer: a guaranteed total points offer on a transaction vs points offer based on a transaction value
· Guarantee offer, no matter the spend: “Come into store for <50> reward points on next purchase” vs
· Value of points offer to the amount of next purchase: “Come into store for on value of next purchase”

Results:
· Overall 11% redemption rate
· Campaign generated 4.12 x net positive return on investment (after costs)
· Post card (Zag jnr) generated 4 x more redemptions than email (Zig)
· Post card (Zag jnr) beat it’s letter brother (Zag snr) by 25% in redemptions
· Mail (both of the Zags) generated 7.3x more redemptions than email (Zig)
· Mail (both of the Zags) generated 6.72x more revenue than email (Zig)
· A guaranteed total reward point offer on a transaction BEAT the points based on a transaction value by 1.9x in redemptions

So what?

1. Try zagging when everyone is zigging
2. Test, test and test again

I hope you find this insight useful and if you are interested to dig deeper into the 24 ingredients that make a loyalty program successful, then the full 80+ page report of ‘for love or money 2016’ is available to get into the details.

Have a happy loyalty day and plan to test a zag!

* Thanks to KnowITAll Loyalty systems for this case study

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