News and PR Insights from 5W Public Relations CEO Ronn Torossian

Category: 5WPR

Brands are Using Loyalty to Cut Acquisition Costs

The ongoing battle among brands today is the one raging over customer loyalty. The environment of digital marketing is shifting, and this causes competition in various forms. As more brands become aware of the importance of building a loyal customer base — while also keeping their new customer acquisition costs low — some creativity is needed to entice those customers not only to stay loyal, but to bring more people into the fold via referrals.

This challenge has led to an increase in loyalty and rewards programs. For example, the recently announced Target Circle is one of the latest iterations of loyalty programs promising perks and benefits for those who choose to spend their money in Target stores. Another way brands are trying to find a permanent home in a customer’s rotation of needs is to offer increasingly more convenient options such as low-cost or free home delivery of groceries.

And other brands have built loyalty on a referral model, understanding that the CPA goes down exponentially when customers are referring in new business on their own. By incentivizing the referral process — offering exclusive discount codes, free gifts for a certain number of referrals,  etc. — brands can essentially recruit existing customers as salespeople eager to share the value of the product. This reduces the CPA to virtually zero and allows for current customers to act somewhat as influencers. This creates a reliable system for referrals, as customers are more likely to convert their friends than a standard ad might.

Building out a strong loyalty and referral program can accomplish many goals on a marketer’s list. Loyalty is a strong currency in today’s marketing environment, but the program must be strong with robust perks and incentives for staying in. A strong loyalty program will also encourage organic referrals from happy customers who feel strongly enough about something that they’ll promote it on their own.

A referral program can also bolster the sense of community associated with a brand. This is another up and coming metric that is beginning to hold more value for businesses. Community is something that consumers actively seek out. Whether it’s the dedicated Facebook page for the New York Times Cooking section or a group of exclusive club members for the Morning Brew who have referred in the most new subscribers, consumers love to gather in places where like-minded individuals exist.

This sort of environment creates a more organic feel of promoting products and services that accomplishes more than a paid search ad or a television ad. It is good to remember that consumers are more trusting of the opinions of people they know. Not even a customized ad can have as much converting power as the endorsement of a trusted friend or acquaintance.

Businesses looking to reduce their acquisition costs while also bolstering consumer loyalty would do well to take a page out of the playbook of companies such as Target, The Skimm, or Morning Brew. Brands such as these that have capitalized on the fierce brand loyalty of their customers will find new avenues opening up that lead to increased conversions and happy, satisfied customers.

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Boeing: A Case Study in How Not to Manage Your PR

As one of corporate America’s most recognizable brands, you would think Boeing would be well-poised to deal with public relations crises of all shapes and sizes. Indeed, as a major exporter and military contractor, Boeing has deep pockets when it comes to lobbying in Washington; you would think this kind of spending would carry through to the firm’s PR department.

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Apple v. Qualcomm: A PR win

The scene is this: The opening arguments for Apple vs Qualcomm are well underway in the Southern District of San Diego, with the US District Court Judge Gonzalo P. Curiel first disallowing, then reversing his decision and allowing live tweeting. Included in the passionate arguments are allegations of double-dipping, talk of KFC and its secret recipe, debates over chicken and potatoes. Who says the world of corporate law is a dull one?

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Unconventional Management Tips to Boost Team Performance

Strong and effective teams are usually the driving force behind a successful company. It has been shown time and again that when team member support each other and work cooperatively, they perform better than groups where the members are focused on their individual interest.

Every single person in the team from the CEO to intern has an important part to play when it comes to having an positive impact on team performance.An exceptional manager is able to understand this and the importance of a cooperative group dynamic. They find ways to piece together different pieces of a team to create a cohesive and functional unit working towards a common goal.

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“Papa” John Schnatter Delivers Defiant Message

John Schnatter is firing back at the company he founded, which has taken steps to distance their brand from the guy who, not that long ago, was the, face of the operation. “Papa John” was on everything, from the branding to the TV commercials to the radio spots.

All that was true for years, until a few weeks ago, when reports surfaced that Schnatter made some remarks on a conference call that some considered racist. Once those allegations  surfaced, Schnatter was quickly wiped away from the company’s branding. Schnatter maintains both that what he said, in context, was not inappropriate, and he says the company would be better off keeping him as the center of its brand.

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Crafting a B2B PR Strategy to Help Grow a Business

Crafting a B2B PR Strategy to Help Grow a Business

Your B2B PR strategy happens to be a vital piece of an all-inclusive marketing program. If planned and implemented effectively, PR is a great lead generation, awareness and credibility tool for every B2B organization.

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Dan Palmier: Boston Renaissance Man in Action

Daniel Palmier

Boston entrepreneur and philanthropist Daniel Palmier faces no shortage of challenges in his life, and doesn’t back down from any one of them. He’s managed to find a strong balance between his work life and his social life, by bringing his knowledge and skills together with members of his family to not only build business’ but to help local and global charities as well.

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McDonalds’ Twitter Account Hacked

McDonalds’ Twitter Account Hacked

These days, it seems like, sooner or later, everyone gets hacked. Big box stores, department stores, discount retailers and credit card companies. It seems no one is safe. But McDonald’s? Did anyone really expect black hat programmers to sneak into the cyber home of the Golden Arches? Well, they have … at least on Twitter.

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USA Gymnastics Head on the Hot Seat

USA Gymnastics Head on the Hot Seat

Look back at nearly every Summer Olympics in a generation. Who’s the hero for the United States? With the possible exception of the “Dream Team” basketball squad and swimmer Michael Phelps, it’s been the gymnastics team. USA Gymnastics not only maintains a massive national fan base, it dominates headlines during the Games and creates overnight sensation superstars, especially out of scrappy young women who captivate our senses and wow us with incredible athleticism and courage each and every Olympiad.

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Uber Fighting with Drivers Again

Uber Fighting with Drivers Again

Uber had a great business plan that met a huge felt need, especially for younger urban dwellers who loved technology, didn’t have cars and were tired of having to depend on taxis for transportation. The app-based service has exploded in popularity in nearly every place it’s opened for business … and, in most of those places the company has had to fight for its business life.

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