From Customer Loyalty to Brand Advocacy
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Transcript of From Customer Loyalty to Brand Advocacy
Customer Loyalty 2013 Nicholas Kontopoulos | Senior Global Marketing Director 26th of March, 2013 | Singapore
From Customer Loyalty to Brand Advocacy
A little bit more about me…
@Nicholask71
and what makes me tick.
@Nicholask71
@Nicholask71
@Nicholask71
@Nicholask71
Passionate about my customers
My objective today is to…
Fire-up your brain juices
By taking a look at the imapct that the age of the “Digital Customer” is having on your
businesses
The Impact that the
Digital Customer
Enterprise is having on the
@Nicholask71
A man without a smiling face must not open a shop.
Chinese Proverb
“
Raise your hand of if ever bought goods or services from an online retailer
Amazon, Zappos, HSBC, Sachs
WHAT’S THE POINT?
© SAP AG 2009. All rights reserved. / Page 18 Internal
Customer Experience leaders OUTPERFORM the laggards
+22% -46%
Source: Forrester Research 2012
Over a recent five-year period during which the S&P 500 was flat, a stock portfolio of customer experience leaders grew 22%. During this time, Forrester found that those companies who performed poorest in the Customer Experience Index also performed poorest in terms of stock performance.
MOBILITY RICH CONTENT SOCIAL APPS
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We live in a world of ‘DIGITAL IMMERSION’
MORE CHOICES
LESS RESOURCES
DECISION MAKING
EVOLVING FAST
Source: http://www.youtube.com/watch?v=W-Yf1u3xD_I&feature=share&list=PL289DF6F734E11CD2
The Good Old Days
TOO HARD TO MOVE
NO ALTERNATIVE BETTER THE DEVIL
GOOD EXPERIENCE
The Problem
Customer Loyalty is Dead – Image of loyalty cards Text “As we know it”
AS WE KNOW IT
Are you more loyal to your brands than 10 years ago?
The Problem
RelaJonship between buyers and sellers have changed
Relationship CHANGED
DIGITALLY EMPOWERED CUSTOMERS
Customers are DRIVING the conversation
Search Information PURCHASE
Customers are looking to be RESCUED
The COST of customer acquisition versus customer retention could reach as high as 700%
Source: ‘The Loyalty Effect’ by Frederick Reichheldof Bain & Co.
A 5% increase in customer retention results in a 25% to 100% increase in PROFITABILITY
Source: ‘The Loyalty Effect’ by Frederick Reichheldof Bain & Co.
RISING customer EXPECTATIONS reflect a higher degree of likelihood to SWITCH brands
HOSTAGE waiting to escape
The simplest customer service frustration question of all? “Why isn’t this as important to you as it is to me?
Seth Godin
“
The SoluJon
Customer Experience!!!
Give the customers a GREAT EXPERIENCE
Customer Experience “The customer's perceptions and related feelings caused by the one-off and cumulative effect of interactions with a
supplier's employees, systems, channels or products”
Source: Gartner
“Or, the aggregated memories of every touch a customer has with your company”
Customer Experience Management “The practice of designing and reacting to customer
interactions to meet or exceed customer expectations to increase customer satisfaction, loyalty and advocacy”
Source: Gartner
“Or, delivering a consistent customer experience across the entire enterprise”
The SoluJon
Key ingredients – Image from file
INGREDIENTS
Where to start?
7 Steps to get started with CEM
Source: 1to1 Media 7 Steps to Get Started With Customer Experience
§ Build a cross-functional work team § Define key elements of a strategy § Map the customer journey § Consolidate customer data collection/VoC § Create a governance mechanism § Map the customer experience ecosystem § Select Projects that build momentum
CRM is not about soQware…
CRM is not about soQware…
…it is an
ideology
It is about connecting people…
Employees Customers
it is about delighting
your customers
CUSTOMER LOYALTY MANAGEMENT
?
Integrate loyalty thinking across the consumer experience. Loyalty isn't a program or a function in your org chart. It the combination of your customer-facing efforts.
Mike Linton
“
ALIGN program to CEM vision
Companies have built OUTPOSTS
Remove SILOS Interaction History
Order Information
Billing
ecommerce
Mobile
OMNICHANNEL strategy is required
STRUCTURED approach
View of the PAST
CAN MARKETING LIFT STOCK PRICES?
5 years of data was crunched for two Fortune 1,000 companies (B2B & B2C).
9 month field experiment using specific marketing strategies based on the “customer lifetime value” of each customer or customer segment.
90% of both companies profits were being generated by 20% of their clients.
Used analytics to determine “Customer lifetime value”
B2B company stock increased 33% nine months after experiment. Top 3 competitors stock increased 12%.
B2C company stock increased 58% nine months after experiment. The top 3 competitors stock increased 15%.
Social Media Data at your finger tips
Segmentation at Speed of thought
WHERE DO YOU START?
If you keep on doing what you've always done, you'll keep on getting what you've always got.
W L Bateman
“
THINK BIG
START SMALL
DIFFERENT PERSPECTIVE
INTEGRATE CEM, CRM and
Loyalty Management
MONTREAL
Claire
Phillip
The STM are Montreal's transit provider - moving more than 1.2M passengers every day day through 250 bus lines and 68 subway stations in the Montreal area.
2020/40%
Three million cards in circulation, one-third of which are used on a daily basis.
“We want to untap the potential of those Opus cards and the potential of this eco-system of customers that take public transit every day.”
Pierre Bourbonniere, Director of Marketing
“
We wanted to reward our customers on the spot, we wanted to be able to surprise and create excitement for our customers, and we wanted to generate loyalty to the STM.
Pierre Bourbonniere, Director of Marketing
“
STM customers will provide information about their interests and preferences for
activities
Retention program for customers
Click here for Story
Real-Time Insight
Real-Time Interactions
Real-Time Execution
You’ve got to start with the customer experience and work back toward the technology.”
Steve Jobs
“
The Problem
Customer Loyalty is Dead – Image of loyalty cards Text “As we know it”
More than just a
Points & Cards SYSTEMS
Do you drive value at each touch point?
Do you understand your customers?
Are your customers hostages or fanatical brand advocates?
I have the power to drive
transformational change
Customer Journey
CEM Vision
Core team
Platforms Brand Advocates
Do what you do so well that they will want to see it again and bring their friends.
Walt Disney
“
© 2011 SAP AG. All rights reserved. 85 Public
VISIT our booth
© 2011 SAP AG. All rights reserved. 86 Public
Feel free in connecting with me @
#nicholask71
http://cn.linkedin.com/in/nicholaskontopoulos
Thank You!
© 2011 SAP AG. All rights reserved. 87 Public
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