Keeping the excitement with your customers
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Transcript of Keeping the excitement with your customers
Keeping the Excitement with your Customers
Global Loyalty Solutions
28.09.12
Copyright 2012 © - Welcome Real-time
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Loyalty Landscape
Maritz Loyalty Insights (2012)
1,673,000,000 members
5.4 / person
Colloquy
14 (6 active) / household
are members of at least one program92%
6.4 / person
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Loyalty Programs are now a Commodity
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Raising Perception NOT Costs
“Price is what you pay. Value is what you get.”Warren Buffett
Loyalty is driven by ‘emotion’ not ‘rationale’
The right types of reward have a perceived value that far outweighs the underlying cost
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Drive Excitement by Giving More?
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Rewards must be Attainable
"69% of the people surveyed said they left a loyalty program because it took too long to earn enough points to get a reward”
Maritz Loyalty Track Survey (Nov 2003)
Maritz Loyalty Track Survey (Oct 2004)
Rewards if not attainable, will lead to reduced engagement and ultimately defection
1 2 3 4 5 6 7 8 9 10 11 12
Reasonable months-to-earn average:
20% 37%1,000 respondents
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Experiential Rewards
“We don’t remember days; we remember moments.”Cesare Pavese
Reward program members who have redeemed for experiential rewards are 30% more likely to be WOM
Champions than those who have redeemed for discountsColloquy
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Lucky Draws
Excite customers by giving them the chance to win something ‘desirable’
Fixed reward cost!
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Auctions
Stir up competition, by auctioning off highly sought after rewards that ‘money cannot buy’
Stand a chance to win EXCLUSIVE VIP backstage passes
We’re auctioning off a PRICELESS F1
driving experience
Dramatically increase the perceived value with rewards that
‘money cannot buy’
Increase customer engagement by creating a competitive environment
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Selfless Rewards
Harness ‘causal’ drivers to give customers a community-based collective goal
Leverages on social pressure to encourage continued participation
More appealing to customers who do not see the value in traditional loyalty rewards
HSBC Green Roof for Schools
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Differentiated Rewards
Originally the exclusive domain of airlines, ‘Status Programs’ are now common place in other sectors
Flat Tieredvs.
‘Status Tiers’ are an effective way of introducing ‘Soft benefits’ for premium customers, whilst at the same time
creating ‘aspirational drivers’ for lower-tier customers
“A three-tier program (e.g. Gold, Silver, and no-status) is more satisfying to all involved than a two-tier program (Gold and no-
status), even to those who do not qualify for elite status”Dreze and Nunes (2009)
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Perception of Status Programs
Dreze and Nunes (2009)
ranked ‘Chain C’ as the most popular
of the ‘No Status’ participants prefer the program that has 2 elite tiers!
82.5%
71.4%
“If you create an elite tier, it is better to create two”
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Status Programs by Industry
Airlines
Hotels
Car Rental
Others
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Reward Timing: Immediate vs. Delayed
“With a scheme based on rewards-on-demand you may get an increase in behavioural-loyalty but it won’t go any further;
there’s no opportunity to extend emotional loyalty.”
Scoring Points: How Tesco Continues to Win Customer Loyalty (Clive Humby)
“delayed rewards in a loyalty program have a significant impact on customer loyalty, whereas one-shot promotional features do not”
Leenheer and Bijmolt (2008)
“delayed rewards work better than immediate rewards only if customers are satisfied with their experience”
Hu et al. (2010)
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Engage Customers Socially
Harness social networks to open rich and diverse two-way communication channels with customers
Actively encourage customer interaction
Avoid the tendency to over-promote
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Help Customers Share Their Excitement
People are more likely to trust a recommendation from a friend
Colloquy
AHAlife / Twitter
Self-described WOM Champions 55%Likelihood of an
‘active’ member being a WOM Champion
3x
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Social Media is not a Quick-Win Solution
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The Power of Postcards
How a UK-based Charity slashed donor attrition rates using Postcards
Rapidata Case Study
Attrition rate after 6 months halved!
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Communication: Old is New
Sometimes it’s the little things in life
that count the most
Johnny the bagger
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Look for compelling Quick Wins
Stay ‘front-of-mind’ by giving your customers easy
and up-to-date access directly from PassBook
Loyalty Card (Balance)
Coupons / Vouchers
Welcome Real-TimeOverview
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15 Years of Experience in Loyalty
2011 live projects
Sao Paulo
Singapore
Aix-en-Provence (France)
300,000 daily loyalty transactionsbetween 1+ Million Retailers and50+ Million consumers.
> 20 live projects across 5 continents.> 14 different spoken languages> Local presence in 30+ countries (direct or via partners)
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Products Overview
MerchantPortal
Application used by Merchants
ePOS
POS
Real-time customer interaction@ Payment
AnalyticsPortal
Loyalty SchemeManagement
Portal
Internet payment
Loyalty scheme App
PC & tablets version Smart phone
version
Online redemption Push offers
Applications used by the loyalty scheme operator / the issuer
Media Integration
+
Welcome LoyaltyEngine
E-Wallet integration
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Sample References
Retail Banking
Partners and OperatorsPayment Processors
© 2012 Welcome Real-time. All rights reserved.Content in this presentation is provided for general information purpose only and is owned by Welcome Real-time. It does not constitute a contractual document and may be amended or updated by Welcome Real-time from time to time. This content shall not be copied or reproduced or otherwise used for any reason, except for your own business purposes and/or personal use.
Thank youfor your attention
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