Breeding LoyaltyThrough Smart Analytics
How do you define loyalty?
spend
frequency
volume
Profits
The Loyalty Funnel
Everything you do to build loyalty?
Loyalty Builders
gifts
discount
previews
loyalty card
Is this what delights customers?
…enough to make them love you exclusively!
Loyalty breeds loyalty
Some sterling examples
Why is Amazon such a loved brand?
provides an inexpensive, reliable storage option
focused on solving the specific needs ….allows us to have virtually unlimited capacity while only paying for what we use without upfront investments
Since implementing the on board Intranet, we have gained agility and improved time-to-market
Check out
customer speak
Why is Apple making incredible profits?
It means forever asking, “Why is it this way?” and “How can it be better?” It means rethinking every customer experience until the clutter has fallen away
Apple® announced iBooks® for iPad®, featuring iBooks textbooks, an entirely new kind of textbook that’s dynamic, engaging and truly interactive
Creativity from every corner
Simplicity isn’t simple
Every detail matters
HIRING POLICY
India’s most loved brands
available
aspirational
pioneer
guarantee
Knowing your customer’s perspective
YOU SAY
Special sales previews
Gifts
Reward points
Freebies/ Banded offers
Discounts
THEY SEE
Two different points of view
Nice but not useful
Claiming points can be a grind
Some are so irrelevant
First to get the best stuff
Only on select items
Mix of cynicism & joy = adulterated loyalty
The need to measure loyalty
Knowing the stepping stones to loyalty
know
like
love
adore
Aware
Consider
Use
Favorite
Exclusive Love
One of my Favorites
Will consider sometimes
Last option
Never Consider
How do you stack up? Engagement Funnel
Loyalty Drivers for You Skews in Profile
Bank That Works In Many Countries
Makes Me Feel Successful
Profile similar to general population. Suggests the communication have been equally well received by all demographic
segments
Would Trust My Money In This Bank
Makes Me Feel Confident
Older, less employed, marriedGeographically skewed towards
Geography 1, 2 ,4 & 7
Bank With 24/7 Access Via - Internet/Phone
Makes Me Feel In Control
Is Easy To Deal WithMakes Me Feel Optimistic
An example of how you drive loyalty?
EER^Engagement Erosion Rate
Aware
Consider
Use
Driver Analysis
To deepen engagement convey confidence & trust
Measuring customer endorsement Net Promoter Score: NPS
Detractors PromotersPassives
18-25 year olds 15% 44% 41%
26-35 year olds 45% 23% 32%
36-45 year olds 40% 33% 27%
The younger TG is more loyal
EXAMPLE
Actioning basis customer speak
Sentiment Analysis Overall You Competitor
Any Passives on hours of operation 10% 2% 8%
Positive Promoters on Range of products 2% 1% 7%
18-25 year old Promoters on convenience of locations 2% 1% 10%
36-45 year old Detractors on number of location 20% 9% 35%
26-35 year old Promoters on speed of service 3% 0% 10%
Your competitor has a clear edge in
terms of product range
Your loyal base is under threat from
your competitor’s locational
convenience
To safe guard your loyal base of 18-25 year olds relook locationsTo attract your less loyal 36-45 yr olds need to build product range
BFSI Growth Strategies: The BETS Framework
19
Financial BETSTM
Financial BETS Strategy
B Build Recruit new customersMarket where contribution of customers (accounts) under-indexes
E Engage MoreEngage customers to transact moreMarket where contribution of customers (accounts) over-indexes while Revenue contribution under-indexes
T TreasureFocus on safeguarding position against competitionHigh growth markets where contribution of customers (accounts) as well as Revenue contribution over-index
S SustainMaintain status quoStagnant or declining markets where contribution of customers (accounts) as well as Revenue contribution over-index
Sophisticated Non-Sophisticated
Products Overall Geography 1 Geography 2 Geography 3 Geography 4 Geography 5 Geography 6 Geography 7 Geography 8
Credit Cards E B E T E T B E S
Deposits B S T S E B S B B
Investments E E T B B E B B B
Loans B T T B B S B B S
Mortgages E S S S B B B B B
20
BETS Strategy Map for a Global Bank
Implications for Loyalty BreedersSumming up
Measure, Measure, Measure
Measure
benchmark
track
action
Lose loyalty
• Engagement Funnel• Driver Analysis• Net Promoter Score• Sentiment Analysis• Financial BETSTM
This is your customer number, a number that’s all your own and identifies you as a person to us.
Don’t lose the consumer perspective
Loyalty – Let’s stick with it!
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