Loyalty Programs: Going Beyond Transactional Rewards
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Transcript of Loyalty Programs: Going Beyond Transactional Rewards
Loyalty Programs: Going Beyond Transactional Rewards
Lisa Evans
Vice President, Analytic StrategyKBM Group
of CEOs are looking for new ways to stimulate customer demand and loyalty this year.(PWC, Global CEO Survey 2013)
82%
“The actual shopping, interactions and flow…and rewards…all are supported with orchestrated media, providing the stories that people can gather around.” (Forbes, 1/3/13)
27%Enrollment
4%Participation
(COLLOQUY Loyalty Census 2013)
Financial Rewards Emotional Loyalty
Monetary rewards are expected but are not enough to build deeper brand loyalty.
• Maslow was right—people need achievements and respect.
• Behavior-based recognition is rising fast.
Constant Evolution is Required
Engagement has to constantly evolve to stay interesting• Changing reward
types• Surprising with
unexpected rewards
New Level of Customer Expectations
Expectations of experiences are determined by what have now become ubiquitous brands.
Customers are increasingly expecting the same type of experience regardless of their role as an individual (B2C) or organizational buyer (B2B).
Business to People (B2P)
Behavior Drives Loyalty
ProgramRecognizes
Program Rewards
Members Transact
Members Interact
Traditional Programs
Transact & Interact
Members Transact
Members Interact
• Purchase/spend• Save• Recycle
• Social referrals• Retail shop interactions–show
up• Play games• Watch videos• Take a quiz/poll• Social entertainment check ins&
Reward & Recognize
ProgramRecognizes
Program Rewards &
• Travel• Experiential• Merchandise• Gift Cards• Charitable Donations• Discounts• Cash
• Product Influence• Special Content Access• Social Currency• Status Rankings• Virtual Badges• Targeted
Communications• Thank You
Social Connectivity Increases Perceived Value
Source: Badgeville
Set a High Bar
InsightLoyalty
Experience
Online Experienc
e
Design Within the Customer Experience Ecosystem
Insight– • The core of the experience • Drives the insights for each
individual customer
Online Experience – • Tailored to user• Provides the single online
experience for all marketing programs and activities
Loyalty Experience – • Beyond awarding points• Experience associated with
being a loyal customer
Defined by marketing strategy and outlines the foundation for solution-geared
experiences
Experience Ecosystem
Experience Components
Loyalty
Recognize “Best”
Customer
Dialogue is Critical
Give the Customer
Control
Go Beyond
Financial Rewards
Know Your
Customers
Reward Engagement not
just Transacti
ons
Emotion Moves
People to Action
Loyalty Program Best Practices
Tier 1VIP
Tier 2Growth Customer
Tier 3Low Potential Growth Customer
Loyalty PathContentRewards
ConnectivityCommunications
Increasing Program Value
Low
Engagement Level
High
Key Program Pillars1. Content Provisioning (owned, access, earned)1. Content Provisioning (owned, access, earned) 2. Personal/Peer Connectivity2. Personal/Peer Connectivity
3. Surprising Content/Rewards3. Surprising Content/Rewards 4. More Loyal, More Willing to Pay4. More Loyal, More Willing to Pay
Solutions for emerging topics; surprise and delight “rewards”
Facilitate personal/peer connectivity; integrate social sign-on
Traditional Loyalty
Traditional:Give More
Away to BestCustomers
Price ofPerceived
Value
Modern Loyalty
LoyaltyProgram
Be Curious
Transaction
Social
Lifestyle
Digital
Seek and Apply Insight
Social Listening Inspires Program Innovation
Reward Portfolio Optimization
Media Targeting
Program Objectives
Member / Non Member Insights
Program StructureQuantitative Insights
• Hard Benefits / Currency• Social Audit• Engagement (social, mobile, email)
Program Design / ROI
Implementation Planning● Test Design● Communications Plan
Measurement
Concept DesignQualitative Insights
• Soft Benefits / Currency• Enrollment / Redemption Process
Program Design Process
How Does Your Program Stack Up?
Your Market
Your Business
Your Customers
Q & A
Lisa EvansVice President, Analytic [email protected]