5 more ideas to improve loyalty program cost effectiveness

1. 5 more ideas to improve Loyalty
Program Cost Effectiveness
Benjamin Filaferro – filaferro@yahoo.com – May 2013

2. 2
#1 - Empowering the Loyalty Champions
2
• Use them as Social
Media Agents to
defend and
promote your
product sand
services on
different social
media platforms
• Let them use your
new services first
time in the market
• Invitations to
Special Events /
Focus Groups to
get their input and
make them feel
they contribute to
your product and
service
development
process
Indifferent
• No loyalty to a
particular brand
• Easily drift to
other brands
which they think
meet their needs
equally or even
less if price
differentiation
exists
Fulfilled
• Happy with the
product or service
• A functional
rather than
emotional
relationship with
the brand
• Value being the
key influence
Committed
• Regular, loyal
clientele with the
ability to be
cross-sold and
up-sold
• Relatively inactive
relationship in
terms of
promoting the
brand
Advocates
• Committed
customers with
emotional bonds
that go beyond
the typical
relationship of
customer and
supplier
• Highest level of
involvement
Benjamin Filaferro – filaferro@yahoo.com – May 2013

3. #2 - Reward Social Media Engagement
3
Give points
for “Liking”
the
Facebook
page
Give points
for
answering
Facebook
surveys
Give points
for
“Followers
get
Followers”
Give
surprise gifts
to member
who have
many
followers
Benjamin Filaferro – filaferro@yahoo.com – May 2013

4. #3 - Sign more partnership agreements
4
Appart from Banks and large retailers, only phone operators have such a high amount of customer data.
Loyalty Partnership negotiations can be improved via synergies to offer partners opportunities for better
customer targeting such as:
 Exclusive travel discounts only offered to customers traveling in China
 Exclusive baby product discounts to customers who redeemed their points against a baby toy
 Exclusive furniture discounts for customers with a high ARPU and owning a triple-play plan
 Etc.
Challenges are:
 To respect regulations (e.g. usually details of the customer can never be transmitted to a partner)
 To be subtle so the customers don’t feel an intrusion in their personal lifes (e.g. How Target
Figured Out A Teen Girl Was Pregnant Before Her Father Did http://goo.gl/VGlUw )
Benjamin Filaferro – filaferro@yahoo.com – May 2013

5. #4 - Transform the program into a cohalition
program for Micro-Businesses
5
Shop owner
buys bulk
points
Shop owner
uses USSD
to transfer
points to the
customer
Shop owner
collects
points
Shop owner
redeems
points
against
discount on
his phone bill
Customer
buys from a
small shop
Customer
collects
points
Customer
uses USSD
to redeem
points at the
shop
New concept
Benjamin Filaferro – filaferro@yahoo.com – May 2013

6. #5 - Improve cost effectiveness through full
Program Outsourcing
6Benjamin Filaferro – filaferro@yahoo.com – May 2013

7. Benjamin Filaferro – Independant Customer Strategy Advisor
I have been a Strategy Consultant for
the last 10 years at first for Banks and
then for Telecom Operators, and I have
specialized myself in Customer Strategy
over the last 6 years.
I have especially assisted Fixed and
Mobile Operator CMOs on the design
and the implementation of:
• Segment Strategies (ATL, BTL,
Touchpoint Experience, etc.)
• New products
• Retention Strategies (Loyalty
Programs, Winback, etc.)
In the specific field of Loyalty Programs,
my experience covers:
• The design, the implementation,
and the launch of 2 Point
Programs, 2 Affinity Programs, 1
Enterprise Affinity Program
• The supervision of an
outsourced team managing
from end-to-end (Marketing,
Communication, Analytics,
Logistics, & Partnerships) 2
Point Programs and 1 Prepaid
Stimulation Game
7Benjamin Filaferro – filaferro@yahoo.com – May 2013

8. Benjamin Filaferro – filaferro@yahoo.com – May 2013
Thank you