Loyalty Customer Program with Tua
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Transcript of Loyalty Customer Program with Tua
HELLO, MY NAME IS / TUA/, AS IN TOUR GUIDE.
THE OTHER GUY IS HIEN LE, HE WILL TALK ABOUT THE TOPIC “CUSTOMER PROGRAM IN DIGITAL AGE”.
I WILL TRY MY BEST TO AMUSE YOU THROUGH THIS BORING TOPIC IN THENEXT 30 MINUTES.
What is customer program?
PARETO’S PRINCIPLE
"80% of your sales come from 20% of your clients."
First step: Collect your data
Primary data (YOUR data):- Customer survey- Transaction history, customer
database…
Secondary data (THEIR data):- Market research firms- Internet
Who are your customers?
Type: Hunter- “Price is everything”- Loyalty scheme: always discount/
the more you buy the higher discount rate we offer.
- Who: low income class such as students, blue collar workers…
Who are your customers?
Type: Achiever- “I am the best”- Loyalty scheme: gamification with
badges/ rewards.- Who: gamers, high achievers
Type: Luxury shopper- “Get me the most expensive”- Loyalty scheme: personalized
experience, VIP status.- Who: rich, brand conscious
consumers
Who are your customers?
Type: Creature of habit- “Let’s do something old”- Loyalty scheme: seamless
experience with minimum effort/ subscription
- Who: busy people, people who value convenience
Type: Experimenter- “Let’s do something new”- Loyalty scheme: promotion on new
arrival. Early bird program- Who: young and love new things,
maybe tech savvy
Tell them about these loyalty models already!!
Require joining fee (can offer together
with free trial)
Exclusive offers
M1: Upfront VIP fee
M2: FreemiumFree version with limit
Capacity limit. Ex: Soundcloud, Dropbox…
Feature limit. Ex: Spotify…
Student version/ Personal use. Ex: Microsoft Office, Teamviewer…
User limit. Ex: Slack, Mailchimp…
Effort limit. Ex: Candy Crush…
Customer service limit. Phone/ Email support.
Premium version Regular users with higher needs can purchase premium version to
unlock exclusive benefits
M3: Point-based model
77% transaction-based program failed in the first 2 years Offer non-transaction rewards, surprise points…
M4: Personalized model
• Birthday offer• Get to know your customer by name and by heart• Biggest target: luxury shoppers• New model: Subscription Box
M5: Tier-based Model•Umbrella plan (Spotify Family Program, Office 365 Home & Personal)
•Increase benefits by number of users in the same account (Netflix Screen sharing program)
•Pricing by the size of the organization (Slack) or need capacity (Mailchimp)
•Integrate with tier-based model (Bing Rewards program)
M6.1: Coalition network model
+ Easy to setup and join
- High cost
- Low bargaining power
- Uneven CX & data collection
- No loyalty toward brands
M6.2: Partner network model
+ Everything coalition model cannot do
- Require high bargaining power (banks,
insurances)
How to trap your customers
aka Customer Lock-in and Switching Cost
Common traps•Behavioral lock-in/ learning curve trap
• Data trap: Spotify playlists, Android/ iOS exclusive apps
•Switching costs/Exit trap: Early termination fee (AT&T, Verizon…)
Common traps• Network effect trap: Facebook
• Industry standards trap: HTML5, Facebook Ads
•Base products & consumable trap: Nespresso, Gillette…
Common traps• Network effect trap: Facebook
• Industry standards trap: HTML5, Facebook Ads
•Base products & consumable trap: Nespresso, Gillette…
1. Read full at bit.ly/Tua16
2. Happy shopping at Tiki.vn (I get 44VND for every 1,000,000VND you spend on Tiki.vn)
3. WAKE UP, his talk is finally over!!!
Now what?