For Shonna Smith, Marketing Director & Experience Coordinator, Blue Spring Harley-Davidson in Missouri, she and her staff wanted to spark customer engagement, customer loyalty, and, ultimately, brand advocacy.
“We have a lot of competition,” Smith said during her session, “How Consumer Management Supercharges Harley-Davidson’s Success,” at the 8th annual Loyalty Expo presented by Loyalty360 – The Loyalty Marketers’ Association, which was held April 27-29, 2015, at the Loews Royal Pacific Resort at Universal Orlando in Orlando, Florida. “We want to maintain our customer base and keep them for a lifetime.”
The fundamental question Smith’s staff, and their partner, Clutch, wanted to answer was the following: How do Harley-Davidson franchisees differentiate their respective locations and expand customers’ lifetime value beyond a select set of core products (e.g., bike and helmet).”
With the help of Brad Marg, Chief Operating Officer, Clutch, Blue Spring Harley-Davidson transformed its customer loyalty/customer engagement process through a Consumer Management solution that focuses on these key elements:
Data centralization: Marketing and operational system unification
Customer Intelligence: Deep, real-time customer understanding
Targeted engagement: Personalized campaigns (e.g., points, punches, referrals, etc.)
Ongoing optimization: Continuous measurement and iteration
Marg told attendees that the Consumer Management platform:
Breaks down data silos
Integrates all data sources into one platform
Automates this process for rapid organization
Customer Intelligence:
Who are my best customers?
Average Customer Lifetime Value?
How many purchases in a year?
Average ticket?
What days of the week are you not profitable?
It has to be relevant to me (Developing strategic segments)
Complacency is death for brands:
As consumer behavior evolves over time, real-time data visibility is pivotal to understanding shifts in trends within the market.
Data-driven iterations empower brands to keep customers’ interests and preferences top of mind at all times.
Developing strategic segments and profiles allows brands to engage customers on an individual level.
Delivering relevant offers and experiences to customers increases brand interaction and advocacy
Real-time data visibility is pivotal to understanding shifts in trends within the market.
Blue Spring Harley-Davidson has an enrollment in the loyalty program of nearly 7,000 members:
23% made purchase in past year
Member spend: $16,745,000 across all products and services
Smith said the top 10% of her company’s customers drive 21% of total revenue. Here are some eye-opening statistics for the loyalty program:
460% lift with redemption
190% boost in gift card sales
29% increase in average ticket
Refer-A-Friend program (Maximizes networks for new business)
Customer Intelligence (Understanding multiple customer profiles)
Targeted promotions (Motivates customers with unique, but relevant offers)
Social capabilities (Builds brand advocacy)
“When you know more about a customer, it’s a powerful conversation,” Marg said.
Marg offered four keys for any successful loyalty program:
Identify unique customer behavior
Segment like tendencies to create profiles
Deploy targeted messages to influence action
Iterate and optimize for better results
Smith’s staff has grown from 12 to more than 40 since 1998.
Customer loyalty to the Harley-Davidson brand is typically very strong, yet can be sporadic at dealership level.
“Our big thing is customer service,” Smith explained. “We are catering to the customers. My boss calls it the wow factor. We make our customers family. I know the names of some of our customers’ grandchildren. Usually everyone who walks in, we know.”
Smith described what a Harley-Davidson means to someone.
“It’s an emotional purchase,” she said. “It’s not something you have to buy, but they dream about it. It’s a true lifestyle.”
Clutch’s program drives cross-channel customer engagement. To further clarify customer segmentation, Blue Spring Harley-Davidson created new customer ID segments: Big Time Biker, White Collar Rider, Weekend Warrior, and Retired Rider.