How to Use Loyalty Videos for Maximum Retention?

Loyalty Videos: A New-Age Solution to an Age-Old Problem

Customer Relationship Management, or CRM, is the focal point of retention strategists around the world. The pivotal question is What strategies should companies adopt to increase sales nowadays? There are 2 divergent options. The first requires increasing the advertising budget to boost traffic to the e-commerce site, and the second involves increasing sales from an existing customer base.

In the former option, it’s a volume game. Huge numbers of potential clients will be targeted, but the hit rate is low, and it is cost intensive. The second option is far more lucrative in terms of conversion, since you are dealing with an existing customer base. There is no need to convince these buyers to purchase your products and/or services. In effect, targeting existing customers is the most sensible and profitable strategy. For starters, these folks have already purchased from your company before. Half the battle has already been won, the other half is to convince them to do it again.

What Are Loyalty Videos?

Customer Relationship Management (CRM) is the broad term given to the technologies, practices and strategies employed by companies vis-à-vis their customer interactions. This includes the overarching objective of improving customer retention, driving customer sales, building relationships with the customer base, and maintaining positive interactions throughout the customer lifecycle.

There are many tools available to CRM managers, but the most effective and converting tools in their arsenal are loyalty videos. These are unique in that they are fully tailored to the individual customer. The personalized video email, a.k.a. the loyalty video directly communicates with customers. It is an effective way of engaging in conversation where the customer’s preferences, trends, habits, and needs are addressed.

Why Do Loyalty Videos Work?

Loyalty videos are fully tailored to the individual customer. They are highly engaging and converting tools to reach customers on their home turf. Customers are tired of run-of-the-mill pop-ups and banners, and they certainly abhor unsolicited content. Loyalty videos are the X-Factor that customers have been seeking. These videos target a customer based on what they have been browsing in the past.

They are engaging, immersive and converting. The personalization that is possible on multimedia-rich loyalty videos is extraordinary. Customers prefer customized content because it speaks to them directly and personally. It is not targeted at a mass audience – it is targeted at an individual. This is precisely the reason conversions are so much higher with loyalty videos. Multiple examples abound, suffice it to say that this form of marketing is the most effective to date.

What Results Can You Expect from Loyalty Videos?

Major companies have successfully used loyalty videos to boost their brand presence, increase retention and convert higher numbers of customers. Companies like Nike and even the New York Jets have used these videos to maximum effect. These videos are so effective that they invariably captivate the user’s attention within 5 seconds. In terms of their effectiveness, email marketing campaigns have shown real promise. For starters, it’s important to understand the user preferences with respect to devices used.

53% of emails are opened via a mobile device, and of Gmail’s 900 million user base, 75% of them view their email via a mobile smartphone or tablet. Here’s where it gets interesting though: personalized email messages have improved conversions on average by 10%, and click-through-rates by an average of 14%. The real clincher comes from CRM marketing experts: 74% of marketers agree that targeted personalization improves customer engagement. And, there is x 6 higher transaction rates with personalized email messaging.

Maximum traction is possible with personalized email marketing, and 20% increases in sales have been reported this way. While many folks believe that Twitter and Facebook are the most successful ways of acquiring new customers, email trumps them by a factor of 40. The return on investment for email is approximately 28%, while the return for direct mail is approximately 7%. The writing is on the wall: Loyalty videos transmitted via email have the highest likelihood of increasing the efficacy of marketing campaigns, boosting retention and converting customers.

How Can Loyalty Videos Be Used in Retailing?


Loyalty videos target customers who have already made a purchase, or shown an interest in a company’s goods and services. Once that first purchase has been made, it is much easier to offer cross-sell options to the customer. There are multiple examples of successful email marketing campaigns targeted at existing customers. EyeBuyDirect – an eyewear manufacturer – targets individual customers who have already purchased a pair of glasses. They fashioned their loyalty video off the concept of ‘One is just not Enough’, and it worked like a charm. The retailer offered existing customers 15% off their next purchase, as an added incentive to buy another pair.


Sinister Diesel is geared towards guys who are looking for a Badass experience with their trucks, turbos, and outdoor adventures. They opted for a loyalty video which targeted customers based on their prior purchase history. In the video, the customer was offered a free T-shirt when they purchased a turbo engine for their truck. The customized loyalty video gained traction with patrons because it generated a sense of camaraderie with the boys’ club.


Habitat, a popular furniture retailer, launched a loyalty video to great effect. The Habitat video congratulated the customer on her most recent purchase and suggested a cross-sell as a complement. This is one of the most successful forms of loyalty video marketing, as it builds on the base sale with additional items.

Loyalty Videos in Finance, Insurance, and Mobile Telecommunication Industries

When loyalty videos are used in banking, finance, insurance, mobile and related industries, there are a myriad of benefits to be gained. For starters, the loyalty videos make for easy explanations of bills, a comprehensive set of frequently asked questions (FAQs) and detailing of new services. Loyalty videos are effective at cutting costs in customer support, by removing the burden placed on call centers.


Numerous examples of loyalty videos abound, including AIG.  The AIG commercial blends humor seamlessly into the sign up and registration process, for an effective video marketing campaign. Another company used loyalty videos to explain why the bill may be higher than the customer expected. The Globe Video Bill sent via email to every customer on its database instantly decongested the customer service operation, and provided a 30-second explanation in a rich, personalized and friendly multimedia message.

Loyalty Videos in Gaming


The world’s premier online poker room, 888poker tailors weekly videos for individual players based on their performance. 888poker’s template listed the number of hands played, the biggest hand for the week, winnings, how many times the player went all in, and how much money was placed into the pot. To further customize the loyalty video, 888 poker listed the individual player’s ranking out of all the players at the poker room. The player was also ranked based on his performance in the entire UK, and this was listed in the loyalty video. The degree of personalization that is possible with loyalty videos far exceeds the mass messaging that marketing departments can punch out in newspapers, banners, or other generic forms of communication.

Loyalty Videos in Loyalty Clubs 


Loyalty videos can be used to great effect with loyalty clubs. In fact, it’s the perfect symbiosis since regular players are loyal patrons of a company and they get to see exclusive offers with the loyalty videos. Two examples of popular loyalty videos have been making their rounds, the first of which is the LeumiCard. Cardholders were informed of special deals available to them when using their LeumiCard. The El Al demo loyalty video offered personalized deals to frequent flyers, with options like tourist destinations, luggage options, and so much more. The personalization in loyalty videos is the most effective medium for boosting ROI, retention, and sales.