Loyalty the World Over: A Practitioner’s Perspective

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Loyalty the World Over: A Practitioner’s Perspective. Loyalty the World Over: A Practitioner’s Perspective. November 25, 2011. November 25, 2011. Can You Ride the Wave of Change?. Let’s Go Surfing …. Insert Tow In Surfing Video. The Four Forces of Loyalty. Where We Focused. - PowerPoint PPT Presentation

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Loyalty the World Over:A Practitioners Perspective

November 25, 2011

November 25, 2011Loyalty the World Over:A Practitioners PerspectiveLoyaltyOne | Loyalty the World Over: A Practitioners Perspective | November 25, 2011All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.1Can You Ride the Wave of Change? 2Insert Tow In Surfing VideoLets Go Surfing

LoyaltyOne | Loyalty the World Over: A Practitioners Perspective | November 25, 2011All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.Lets go surfing.The north shore of Oahu is known as a surfers paradise, but even here there are waves so great they exceed the skills of even the most experienced surfers.These waves, some more than 50 feet high, were long a force that both beckoned to and bedeviled the best surfers in the world. Surfers knew that simply attempting to catch these monsters meant extreme danger and possible death. And so, for decades, the untamed waves rolled in, until technology and creativity inspired a manmade solution. That solution, called Tow-In Surfing, requires a Jet Ski, which is fast and maneuverable enough to launch the surfers into these waves while assuring the safety of the driver. To see something as small as a surfer taming these giants is a testament to our resourcefulness and drive to conquer challenges in the face of adversity. Today, we find ourselves in a similar dilemma as these extreme surfers. Our oceans are changing, and the waves are growing bigger and more challenging to ride. Powerful forces in our market conditions are altering the landscape in which we compete, combining in a way that will either yield incredible creative energy or sink our shareholder value.

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The Four Forces of Loyalty 3

LoyaltyOne | Loyalty the World Over: A Practitioners Perspective | November 25, 2011All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.1) Rise and Fall of the CFOManaging the cost side of the ledger has always been effective for driving profit and shareholder value, and for many organizations, this has become a crusade. The problem is it is mathematically impossible for every organization to enjoy a cost advantage if competitors are approaching the problem the same way. In addition, most of these initiatives automation, offshoring, supply chain management and enterprise software management have been implemented over the same period. The cost-cutting mindset of the past 20 years has certainly created improved earnings and corporate profitability. However, few companies have turned these advantages into meaningful and sustainable long-term growth. Todays leaders are being pressed hard by the question: How do I create profitable growth?2) The Fragmentation of Media and the Challenge of the Attention EconomyToday, the average consumer is racking up almost twice as much TV, computer and mobile screen time as he or she did five years ago The same challenges apply to print media as tablet devices like the Apple iPad proliferate. It is estimated that the average consumer faces 5,000 to 10,000 brand messages every day, but pays attention only to those messages that strike a resonant chord. The real challenge is that, thanks to the CFO mindset, marketing budgets have not increased proportionately to cover the expansion of media. The result is marketers are jumping from channel to channel, potentially missing a substantial portion of the consumers attention economy. Which leads to..3. Consumer to the Power of TenWord of mouth has always been a powerful force in marketing, and the Internet has increased this power exponentially. Anyone can blog or Tweet product preferences or like a favorite brand on Facebook, and consumers are more likely to take the recommendation of a friend before a brand. Take, for example, the YouTube video called United broke my Guitar. Dave Carroll, songwriter for the band The Sons of Maxwell, says United baggage handlers broke his $3,500 custom-made guitar, and repeated attempts to get United to take responsibility failed. So he performed a song about the incident on YouTube. United made things right, but not before over 11million people watched the video. Social media has completely changed the dialogue between brand and consumer, so there is now a trialogue of customer-to-community discussion. 4. The Capability RevolutionAchieving this level of authenticity requires a brain fine-tuned to the capabilities of measured marketing and one-to-one communications on a mass scale. Thanks to advanced analytical tools, the Internet and digital media, we can now track much more consumer data and better segment and customize our offers at dramatically improve delivery costs and turnaround. Additionally, variable content and specials can be offered live, as the customer interacts with a website or a smartphone. Smartphones also enable location-based targeting, and as this technology improves, so will the level of marketing specificity. But many organizations have yet to take full advantage of the customer information they possess, which may prove to be the eventual downfall of many a great enterprise.Undertow of PrivacyThen, in addition to the confluence of the four forces, concerns about privacy are creating a powerful undertow that makes the waters even more treacherous for marketers. For instance, almost one-third of North American consumers -- 32% -- say they have been notified that their personal information has been compromised.

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EMERGING ECONOMIESDEVELOPED ECONOMIESCAUSAUBRINCHWhere We FocusedLoyaltyOne | Loyalty the World Over: A Practitioners Perspective | November 25, 2011All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.We saw this confluence of unprecedented change as a call to action, a signal that the world is irrevocable changing with or without us. Unless we understand the sentiments that are encouraging this change, we not only will be unable keep pace with it but also to help shape it to be a part of it. So we commissioned a study to take a much deeper look at the outlooks and attitudes of consumers in both developed and emerging economics, across the globe, and including India.

Today, Ill share the top findings from CQYs most recent global research study on consumer loyalty attitudes & preference. And, to wrap it up, Ill provide 5 action items you will want to consider based upon our research findings.

Our in-depth research is the 1st of its kind. We have studied the attitudes & perceptions of consumers in 6 different countries spanning the globe. We selected 3 Developed Economies Canada, Australia and the U.S. Then, we selected 3 Emerging Economies from the BRIC nations including Brazil, India and China.

4Gen Pop + Segments: Affluent, Young Adults, Seniors

Gen Pop + Segments: Affluent, Young Adults, Seniors

Gen Pop Only

SEC Classes A, B, and C Only

SEC Classes A, B, and C Only

SEC Classes A, B, and C Only

Study Samples Surveyed

1100

1151

510

508

627

518Sample Size Demographic Segments DetailedLoyaltyOne | Loyalty the World Over: A Practitioners Perspective | November 25, 2011All information contained herein is confidential and/or proprietary information of LoyaltyOne, Inc. and any unauthorized use and/or any disclosure is strictly prohibited.First, let me just brief you on our methodology.

The 2011 COLLOQUY Cross-Cultural Loyalty Study was fielded via an online survey in July 2011. Though the presentation today will concentrate on Indian results, with brief comparison to U.S. results, the overall study was conducted in 6 countries. Approximately 1,000 responses were collected in both the U.S. and Canada, while a minimum of 500 responses were collected in India, Australia, China and Brazil. The online survey was run in English in all countries, but also translated to French in Canada, Simplified Chinese in China, and Portuguese in Brazil

CQYs research included some of the hottest socio-economic segments that companies are trying to better understand. For instance, we researched consumers with the greatest buying power the Affluent A&B socio-economic classes as well as the burgeoning middle class (SEC class C) in India, Brazil and China.

Our research targets specific to India break down as such: SEC Classes A, B, and C only; n = 508 For SEC classification, the current urban SEC system was used. This system takes into account theoccupation and education of the head of household to determine SEC.Note: A new SEC system is coming out in India that uses education of head of household and thenumber of consumable goods owned by family, but this new classification was not fully rolledout at the time of this research. Regions represented by respondents include Mumbai, Delhi, Hyderabad, Bangalore, Chennai, Pune,Kolkata, Ahmedabad, and other regions.Specific to the U.S. General Population + Affluent, Young Adults, Seniors: n = 1,100

SPEAKER MANDATORY READING: Read white paper in advance to get familiar with all of these details.US & CAN Affluent = HHs with incomes of $125K+ -- Young Adults = M/F aged 18-24 -- Seniors = M/F aged 60+ 5

Global Differences, Global CommonalitiesLoyaltyOne | Loyalty the World Over: A Practitioners Perspective | November 25, 2011