#78 Roshelle from Yotpo Talks Engagement - The New Way to Improve Customer Lifetime Value
The Ecom Show · Daniel Budai
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Show Notes
#78 Roshelle from Yotpo Talks Engagement - The New Way to Improve Customer Lifetime Value
Is your brand-customer communication a bit lackluster? Are you struggling to build a close relationship with your customers? This episode is all about customer retention: establishing, building, and maintaining trust.
Roshelle Savdie is the Associate Product Marketing Manager of Yotpo, an e-commerce marketing platform that offers a full suite of solutions for customer reviews, visual marketing, loyalty, referrals, and SMS marketing. Following a Bachelor’s degree in Psychology and a Master’s in Economics, Roshelle sought a role in the study of human behavior. She found her calling at Yotpo. As a specialist in loyalty and referrals, Roshelle knows what customers care about.
Tune in to hear Roshelle and our podcast host and CEO Daniel Budai discuss:✔️ Zero-Party Data: What is it and why is it important?
✔️ Why do e-commerce brands need engagement-based programs?
✔️ How to create a VIP program
✔️ Roshelle’s advice for Q4
✔️ Roshelle’s marketing idols
Zero-Party Data: What is it and why is it important?
Zero-party data (otherwise known as permission-based marketing) refers to data that customers voluntarily give brands about themselves. It’s not information that brands can acquire from different sources.
Roshelle identifies two advantages to using zero-party data:
- Brands don’t have to guess
Collecting data directly from the source means that targeted marketing does not have to be based on assumptions or guesses. This allows brands to better communicate with their customers and personalize their shopping journey.
2. Develops trust in your brand
No one likes it when their data is collected and used without their explicit permission. Being clear about data collection and opting for zero-party data is great for building trust.
“You may ask yourself, ‘Why do they give this information so freely?’ It’s because they want to be part of your brand, and they trust your brand.”
Zero-party data reject invasive marketing tactics and instead focuses on creating a better experience for the customer.
Why do e-commerce brands need engagement-based programs?
Engagement-based programs are evolving. Roshelle stresses that engagement-based programs differ from rewards-based programs in that they’re not transactional.
Instead, engagement-based programs focus on relationships. It’s not enough to give away discount codes once in a while. Customers want experiences that make them feel part of the brand.
Gen Z consumers in particular engage with emotional rewards. Princess Polly, one of Yotpo’s clients created a VIP tier system. If a customer is in a certain tier and buys a certain amount, they’re featured in Princess Polly’s social media. Another reward included exclusive access to a VIP Facebook group, encouraging customers to buy further into the brand. Their best reward so far was backstage tickets to a music festival.
Roshelle recalls another brand that gives customers in their highest VIP tier early access to products and sales. This is great for building that brand-customer bond and providing an exclusivity incentive.
How to create a VIP program
So when should e-commerce owners begin setting up VIP tiers? Roshelle says “early on”, even if they’re not going to implement it right away. VIP tiers and loyalty programs require a lot of strategic planning.
Consider:
- What do your incentives mean to your customers?
- What does it mean for your brand to give away these incentives?
- Do your incentives make financial sense?
- How are you going to make sure that your customers feel valued?
- How are your incentives going to develop an emotional customer-brand connection?
VIP tiers are fantastic for increasing engagement, brand community, and customer lifetime value (CTV). Therefore:
“It’s never too early to have VIP tiers. They power your business much faster than if you don’t have them.”
Roshelle’s advice for Q4
Roshelle’s number one piece of advice is: Build a strategy for Q1.
You’re going to acquire lots of new customers during Q4, that’s great. Now you need to focus on retention.
Roshelle’s marketing idols
In two words: authentic marketers.
“I really admire anyone who is on top of all the new trends, people, technology, but are keeping the essence of their brand and who they are. Anyone who has figured that out has all my respect. It’s really, really hard.”
Follow Roshelle on LinkedIn and visit Yotpo.comfor more advice on increasing customer lifetime value and taking your brand to the next level.
Follow Daniel Budai:
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