Motivating Riders & Advocates and Building Loyalty · 2011-10-21 · Motivating Riders & Advocates...
Transcript of Motivating Riders & Advocates and Building Loyalty · 2011-10-21 · Motivating Riders & Advocates...
-
Motivating Riders & Advocates
and Building Loyalty
CHOICE FIT REWARDSCHOICE FIT REWARDS
MARCH 2, 2011
Marketing &
Communications Workshop
-
Agenda
Loyalty, Engagement, and Changing Behaviors
What is Behavioral Economics?
Choice
Relativity
Anchoring
Decoys
Fit Fit
Connectivity
Expectations
Rewards Strategies
Indulgence guilt
Goals
Future Case Study
2 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Loyalty, Engagement, and Changing Behaviors
Loyalty, Engagement, and Changing Behaviors
CHOICE FIT REWARDSCHOICE FIT REWARDS
Marketing &
Communications Workshop
-
Loyalty
Occurs only after you have satisfactorily moved potential consumers through a labyrinth of mindsets and choices:
1. Awareness
2. Consideration
3. Intent to purchase3. Intent to purchase
4. Trial
5. Validation
6. Repeat purchase
7. Loyal Customer
8. Advocate, Influencer, Brand Champion
4 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Engagement
Engagement requires buy-in; it is a choice, not an expectation.
5 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Changing Behaviors
Whether your goals are to increase ridership, create more loyal customers, or to engage your employees; there are four pillars that must be solidly in place:
1. Communicate
2. Educate
6 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
2. Educate
3. Motivate
4. Measure
-
What is Behavioral Economics?
What is Behavioral Economics?
CHOICE FIT REWARDSCHOICE FIT REWARDS
Marketing &
Communications Workshop
-
Behavioral Economics
Economics and Psychology
Not what we think: its what we do
Understand our illusions and biases Understand our illusions and biases
8 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Behavioral Economics
Homo Economicus Global thinking
Well-defined preferences
Decisions maximize allalternatives
Rational
Pursues monetary wealth: Ca$h is King
Homo Sapiens Local thinking
Preferences are relative
Decisions are cued
Irrational
Social & emotional concerns
Subject to hedonism, guilt, fairness, social comparison
9 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
ChoiceChoice
CHOICE FIT REWARDSCHOICE FIT REWARDS
Marketing &
Communications Workshop
-
11 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
12 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Everything is Relative
13 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Choice
Motivation has many sources
We are irrational
Behavior Change
Want to vs. Have to
Want to wins out
Human Beings live with illusions
Decision making is relative
14 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Choice
Anchoring
Write down two words:
Keyboard
Chocolate
Write down the last two Write down the last two digits of your Social Security
number next to each
15 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Items Your SSN Your Price
Keyboard
Choice
Like this1
XXKeyboard
Chocolate
XX
XX
16 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Choice
Anchoring
How much would you be willing to pay for this
cordless keyboard?
17 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Choice
Anchoring
How much would you be willing to pay for this box of
Godiva chocolates?
18 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Choice
Anchoring
$40.00
$50.00
$60.00
Keyboard Chocolates
Range of last 2 digits of SSN
00-1920-39
40-39
60-79
80-99
$0.00
$10.00
$20.00
$30.00
19 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Choice
Anchoring
Key Application: The first number influences the
second number
20 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Choice
How are you showing value?
Anchor prices against something
Was $XX, now $XX
21 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Choice
Choices Can Be Cued
22 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Choice
-
Choice
77%
23%
( = 78)
0%
-
Choice
Quality
Decoys
Expensive, high margin option
Cheap, low margin option
Price25 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Choice
Quality Extreme option
Decoys
Price
Expensive, high margin option
Cheap, low margin option
26 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Choice
Asymmetrical Pricing is Key!
Decoys
27 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Choice
Application
Restaurants: $50.00 Kobe burgers on menu make $20.00 burger look like a good deal.
Airlines: First Class pricing makes Business Class look like a bargain.
Quality
Extreme
option
Expensive, high
margin option
Cheaper, low
margin option
Price
28 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
FitFit
CHOICE FIT REWARDSCHOICE FIT REWARDS
Marketing &
Communications Workshop
-
Fit
Fit Makes it Happen
Idiosyncratic Fit
We are more likely to act when we believe the deal is uniquely good for us.
30 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
DescriptionAny Gas &
Grocery Store
Family Friendly Software 5,000 points
Fit
Credit Card Study
Family Friendly Software 5,000 points
31 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
DescriptionAny Gas &
Grocery Store
Family Friendly Software 5,000 points
Fit
Credit Card Study
Family Friendly Software 5,000 points
Family Friendly Software 10,000 points
32 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
DescriptionAny Gas &
Grocery Store
Your Gas &
Grocery Store
Family Friendly 5,000 points 5,000 points
Fit
Credit Card Study
Family Friendly
Software5,000 points 5,000 points
Family Friendly
Software10,000 points 10,000 points
33 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Fit
Me
an
Jo
inin
g L
ike
lih
oo
d(0
-10
)7
6
5
5.4
(n=44)
Credit Card Loyalty Study
Program RequirementsLow (5,000 points)
Me
an
Jo
inin
g L
ike
lih
oo
d
5
4
3
2
2.2
(n=33)
3.1
(n=37)
3.8
(n=50)
High (10,000 points)
34 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Fit
If commuters felt like the offer was uniquely positioned for them to take advantage
of, theyd be more likely to act on it.
35 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
llllllll
-
Fit
Expectations
Which will reduces pain better?
10 pill $2.50 pill
50% cure rate 98% cure rate
36 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Fit
Key Application: People are more likely to engage if
they feel they have a unique advantage.
37 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Reward StrategiesReward Strategies
CHOICE FIT REWARDSCHOICE FIT REWARDS
Marketing &
Communications Workshop
-
Rewards
The idea of earning points for rewards for simply doing what I usually do is very appealing.
Application
39 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Rewards
Indulgence Guilt
Protestant Work Ethic
Luxury
Something I want but wont pay for myself
Goals
Our internal navigation system
Self selected
40 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Rewards
Goals
41 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Rewards
Illusionary Goal Progress
10-stamp card 12-stamp card w/ 2 bonus stamps
1 .9 .8 .7 .6 .5 .4 .3 .2 .1 1 .92 .83 .75 .67 .58 .50 .42 .33 .25 .17 .08dt = dt =
Average completion time: 15.6 days 12.7 days
42 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Rewards
Key Application: allow people to feel progress
toward their goal
Goals
Key Application: offer them a reward for doing
something they would do
anyway
0
20
40
80
100 120
140
180
200
220
TRU BOOSTTRU BOOST
43 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Rewards
Get Grow Keep
EngageEngageReRe--
DefectDefectNo No
JoinJoin EngageEngage EngageEngage EngageEngage
44 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
EngageEngageReRe--
engage engage DefectDefect
No No
JoinJoinJoinJoin
Strategic &
Competitive
Insights
Measurement
& Metrics
EngageEngage EngageEngage EngageEngage
Retention
Source: The Behavioral Economics of Choice and Incentives, Ran Kivetz, PhD Columbia University
-
48
50
52
Rewards
Loyalty Works
52%52%
40
42
44
46
% Who Join
20102011
45%45%
45 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Academic References
Dan Ariely, PhD Relativity
Dan Ariely, PhD & George Lowenstein, PhD Expectations
Dan Kahneman PhD & Amos Tversky PhD Anchoring
Ran Kivetz, PhD Decoys, (Idiosyncratic) Fit, Goal progress
Ran Kivetz, PhD & Itamar Simonson, PhD Indulgence guilt
46 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Recommended Reading
Money, as it turns out, is very
often the most expensive way to
motivate people.motivate people. ~ Dan Ariely, PhD
47 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Additional Reading
Our actual decision making does not keep
up with how well we
think we make
decisions.
The problem with
rational thinking is
that its wrong.
A monetary reward is
biologically speaking
like a tiny line of
cocaine.
48 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Future Case Study:___Future Case Study:___
CHOICE FIT REWARDSCHOICE FIT REWARDS
Marketing &
Communications Workshop
-
Future Case Study
Building a Coalition of the WillingBuilding a Coalition of the WillingA success story in the making.A success story in the making.
50 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Future Case Study
The The essenceessence of of
coalition marketingcoalition marketing::
51 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
coalition marketingcoalition marketing::
-
Future Case Study
The whole is greater than The whole is greater than
the sum of its partsthe sum of its parts..
52 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
the sum of its partsthe sum of its parts..
-
Future Case Study
S&H S&H Green Stamps:Green Stamps:18961896
53 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
18961896
-
Future Case Study
AIRMilesAIRMiles::10 Million Active Accounts10 Million Active Accounts
+66% of Canadian Households active+66% of Canadian Households active
54 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
+66% of Canadian Households active+66% of Canadian Households active
-
Future Case Study
BoxTops4Education:BoxTops4Education:34 Billion Tops Redeemed34 Billion Tops Redeemed
$340 Million Raised for Local Schools $340 Million Raised for Local Schools
55 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
$340 Million Raised for Local Schools $340 Million Raised for Local Schools
-
Future Case Study
treetree
56 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Future Case Study
This This is a treeis a tree..
57 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Future Case Study
sustainabilitysustainability
58 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Future Case Study
This is sustainability.This is sustainability.
59 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Future Case Study
60 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Future Case Study
61 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Future Case Study
Where Where are green consumers?are green consumers?
62 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Future Case Study
Look right. Look left.Look right. Look left.
63 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Future Case Study
WhatWhat connectsconnects greengreen consumers?consumers?
64 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Future Case Study
AA commoncommon desire,desire, manifestedmanifested
differentlydifferently inin eacheach personperson..
65 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
differentlydifferently inin eacheach personperson..
-
Future Case Study
So what do they want?So what do they want?
66 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Where do I start?Where do I start?
Future Case Study
Help me make
my own
decisions.
Help me make
my own
decisions.
Make it
easy.
Make it
easy.
Include me in the
dialogue.
Include me in the
dialogue.Help me work
within
Help me work
within
67 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
I want to
design my
own
incentives.
I want to
design my
own
incentives.
Help me validate
your claims.
Help me validate
your claims.
Let me decide
whats important
to me.
Let me decide
whats important
to me.
Help me try new
products.
Help me try new
products.And dont
market to me.
And dont
market to me.
my budget.my budget.
-
Future Case Study
Challenge:Challenge:My sustainability is not My sustainability is not
your sustainability.your sustainability.
68 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
your sustainability.your sustainability.
-
Future Case Study
EmpowerEmpower consumersconsumers toto definedefinesustainabilitysustainability onon theirtheir termsterms andand thenthenhelphelp themthem movemove forwardforward fromfrom therethere..
69 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
helphelp themthem movemove forwardforward fromfrom therethere..
Find Their EcoBonus
-
Future Case Study
70 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Future Case Study
71 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Future Case Study
72 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Future Case Study
73 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Future Case Study
Choice Choice = Relevance= Relevance
74 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Future Case Study
To build a coalition, consumers mustalso participate and feel they are apart of the coalition itself.
75 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
part of the coalition itself.
-
Future Case Study
Key Takeaways
76 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Future Case Study
1. Safety in numbers
77 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Future Case Study
2. Its about choice
78 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Future Case Study
3. Synergy creates momentum
79 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Future Case Study
4. Tap into emotions
80 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
-
Future Case Study
5. Every story is differentGive
a voice to them all.
81 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
a voice to them all.
-
Future Case Study
The journey begins.
Earth Day 2011
82 2011 BI BI is a tradename of Schoeneckers Inc. Proprietary & Confidential
Earth Day 2011
Find Your EcoBonus in Ridership
-
Thank you,any questions?
Thank you,any questions?
CHOICE FIT REWARDSCHOICE FIT REWARDS
Marketing &
Communications Workshop