Consumer reviews are used to find out which businesses are winners and losers in the process. According to a study by Michael Luca, Assistant Professor at Harvard Business School, restaurant reviews have a huge impact on the company’s revenue. When it comes to the relationship between ratings and product quality, he has concluded the following concepts:
- Individual, independent restaurants were most influenced by reviews posted by the diners because they were relatively less known to the people compared to chain restaurants.
- Besides reviews posted by the users, online marketplaces should work on multiple factors to build a good reputation
- For every star rated by the customers on Yelp, restaurants made 5 to 9 percent revenue per star.
Effects of Online Video Ads on People
If an online video ad appears on the viewer’s screen, it doesn’t mean that the ad reached the viewer. According to an experiment by Thales S. Teixeira, it was observed that ads can gauge viewers’ attention by creating an emotional impact on them. Some of the other key points concluded by him are:
- An experiment was conducted where participants watched different ads which evoked certain emotional responses through facial expression analysis and eye-tracking technology.
- The participants’ attention was captured the most by evoking surprise and that emotion was retained by evoking joy. These emotional responses indicated that the beginning of an ad should include a surprising factor to grab the viewers’ attention.
- Ads that included bits of feel-good emotion retained more attention of the viewers compared to those ads which constantly illicit a joyous response.
How to Make My Customer Loyalty Campaign More Successful?
Customer loyalty programs have proven to be very beneficial for most retailers. However, merchants are not benefiting much from these programs. According to Professor Jose Alvarez, retailers should think about their customers as their partners instead of taking them as nothing more than a transaction. Some of the other key concepts are as follows:
- Many retailers offer the most basic loyalty programs which are considered punitive by the customers.
- A successful retailer will engage with customers using loyalty programs. These programs are initiated with an introduction and proceed further with communication between the retailer and customer. Finally, it ends with feedback loops initiated by the retailer or the customer.
- Retailers need to think of new ways to build partnerships with their customers.
- Merchants can make more well-informed decisions by collecting data through these programs. They can learn about their customers’ behaviors and other details to know which stores need to shut down or where exactly they should open a new store.
Effectiveness of Online Coupon Programs
When retailers offer deals through e-commerce marketplaces such as Groupon, do they get enough profits through promotions? According to Benjamin G. Edelman, professor at Harvard Business School, the paper “To Groupon or Not to Groupon” presented the following key points:
- Discount vouchers lead to price discrimination because merchants will most likely attract those customers who won’t buy those products if they weren’t compensated by a huge price incentive.
- These vouchers are used to benefit merchants using ads, emails, or other marketing strategies to inform customers about merchants’ presence.
- Sometimes, merchants are less likely to benefit from discount offers when individual customers have access to multiple vouchers.
- When it comes to small businesses with low marginal costs, discount vouchers can be very effective.
All in All…
Now that you know how a marketing strategy can make or break your business, it’s time to create an effective online marketing strategy for your company. To run a successful customer loyalty program, you need to check out AT&T Internet plans. For more information about bundle packages, check out BuyTVInternetPhone.