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Socialisation Game Mechanics on Loyalty Cards

In our last blog I wrote about achievements such as points or rewards and the appointment dynamic. Another aspect that is very powerful is socialisation. There are many aspects to this including profiling, recommendations and forums and using the appointment dynamic to get more people in the same place.

There are many for and against aspects to profiling and it is happening from a Google level down to individual retailers. It is very important if you are profiling to correctly interpret information and to ensure that if you are doing it in a loyalty environment that the loyalty members understand what you are doing and that they have given their permission.

I have said on many occasions that done in the right way, combining educated opt in, location, interests and open to buy is very powerful. As I’ve said before, if Borders (I have  VIP Card on my key ring) sent me a notification saying that the new Stephen King Book 11/22/63 is in store and they will hold a copy for me with a special promotional offer for the next half hour, knowing that I am in the neighbourhood, I will probably go and buy it.

However, if they sent me the same message about the latest top 10 recommendations of a certain radio host were in stock, I would probably opt out of their service, even though I may at some stage have bought one of those books as a gift for my wife.

There are many ways to mine data about what people are buying and it doesn’t have to be down to product level, category level would be very powerful, and it amazes me that retailers don’t use this as a tool.

Profiling needs to be relatively smart and needs Business Analysts able to interpret information and look for trends and not make assumptions on the basis of one or two retail or other destination visits. Buying a hammer doesn’t make me a handyman, but buying tools on a regular basis would constitute a trend. Of course where someone lives can also be a valuable pointer and our new BIonaMAP application that I’ve blogged about before can provide valuable information in looking at trends from multiple people, especially when combined with data from the Department of Statistics Census which the application supports and Mesh Block and Area unit level.

Recommendations are powerful. In 2009 Nielsen’s released the results of a study that said that 90% of consumers trusted recommendations from people they know, 70% trusted recommendations from people who post them online and 24% trusted text ads that appeared on their mobiles. There are many ways to encourage people to comment on products or locations in a mobile environment. Some organisations worry about what people will say about them, but if that is the case, perhaps they have some work to do and better to know what they are saying and be able to engage with them, or as was agreed at the last Social Media Club meeting in Auckland, the common scenario is that if someone criticises a business in an online forum, others very quickly come to its defence. In a closed environment it is of course much easier to encourage the behaviour you are looking for from participants by providing them with the value they want. This can be done by rewards such as points for participation, bribes such as prizes and by engaging and showing an interest in them.

It has been expressed to me that social media requires additional resources and expertise often not available within destination businesses, particularly retail. Yes it does, the key cost is time and you do need someone who knows what they are doing, but what does traditional advertising cost. If you buy a reasonable sized advertisement in a newspaper, or get an agency to generate letter box mail, what does it cost for creative, artwork, printing and distribution? How many hours of a person’s time would that buy? It’s just another tool and the great thing is that to test the market using services like Foursquare, Facebook and Twitter is that you can try them for free. Add location in an app or mobile web site does involve cost, but done well the return can be huge.

Socialisation offers many more exciting opportunities, but to find out what I am talking about, you will have to come back for the next blog. Please feel free to add your comments in the meantime.

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September 27, 2011 - Posted by | Business Analytics, Business Intelligence, Data Mining, Loyalty Card, proximity based marketing, Retail, Social Media | , , , , , , , , , , , , , , ,

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