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Keeping the excitement with your customers
- 2. Loyalty Landscape
2
are members of at
92% least one program
6.4 / person
Maritz Loyalty Insights (2012)
1,673,000,000 members
5.4 / person
14 (6 active) / household
Colloquy
Copyright 2012 © - Welcome Real-time
- 4. Raising Perception NOT Costs
4
“Price is what you pay. Value is what you get.”
Warren Buffett
Loyalty is driven by ‘emotion’ not ‘rationale’
The right types of reward have a perceived
value that far outweighs the underlying cost
Copyright 2012 © - Welcome Real-time
- 6. Rewards must be Attainable
6
Rewards if not attainable, will lead to reduced
engagement and ultimately defection
"69% of the people surveyed said they left a loyalty program
because it took too long to earn enough points to get a reward”
Maritz Loyalty Track Survey (Nov 2003)
Reasonable months-to-earn average:
1 2 3 4 5 6 7 8 9 10 11 12
1,000 respondents
20% 37%
Maritz Loyalty Track Survey (Oct 2004)
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- 7. Experiential Rewards
7
“We don’t remember days; we remember moments.”
Cesare Pavese
Reward program members who have redeemed for
experiential rewards are 30% more likely to be WOM
Champions than those who have redeemed for discounts
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Colloquy
- 8. Lucky Draws
8
Excite customers by giving them the
chance to win something ‘desirable’
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Fixed reward cost!
- 9. Auctions
9
Stir up competition, by auctioning off highly
sought after rewards that ‘money cannot buy’
Stand a chance to We’re auctioning off
win EXCLUSIVE VIP a PRICELESS F1
backstage passes driving experience
Dramatically increase
Increase customer
the perceived value
engagement by creating a
with rewards that
competitive environment
‘money cannot buy’
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- 10. Selfless Rewards
10
Harness ‘causal’ drivers to give customers a
community-based collective goal
HSBC Green Roof for Schools
Leverages on social More appealing to customers
pressure to encourage who do not see the value in
continued participation traditional loyalty rewards
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- 11. Differentiated Rewards
11
Originally the exclusive domain of airlines, ‘Status
Programs’ are now common place in other sectors
Flat vs. Tiered
‘Status Tiers’ are an effective way of introducing ‘Soft
benefits’ for premium customers, whilst at the same
time creating ‘aspirational drivers’ for lower-tier
customers
“A three-tier program (e.g. Gold, Silver, and no-status) is more
satisfying to all involved than a two-tier program (Gold and no-
status), even to those who do not qualify for elite status”
Dreze and Nunes (2009)
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- 12. Perception of Status Programs
12
82.5%
ranked ‘Chain C’ as
the most popular
71.4%
of the ‘No Status’
participants prefer
the program that “If you create an elite tier,
has 2 elite tiers! it is better to create two”
Copyright 2012 © - Welcome Real-time Dreze and Nunes (2009)
- 13. Status Programs by Industry
13
Airlines
Hotels
Car Rental
Others
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- 14. Reward Timing: Immediate vs. Delayed
14
“With a scheme based on rewards-on-demand you may get
an increase in behavioural-loyalty but it won’t go any further;
there’s no opportunity to extend emotional loyalty.”
Scoring Points: How Tesco Continues to Win Customer Loyalty (Clive Humby)
“delayed rewards in a loyalty program have a significant impact on
customer loyalty, whereas one-shot promotional features do not”
Leenheer and Bijmolt (2008)
“delayed rewards work better than immediate rewards
only if customers are satisfied with their experience”
Hu et al. (2010)
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- 15. Engage Customers Socially
15
Harness social networks to open rich and diverse
two-way communication channels with customers
Actively encourage
customer interaction
Avoid the tendency
to over-promote
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- 16. Help Customers Share Their Excitement
16
Self-described
WOM Champions 55%
Likelihood of an
‘active’ member being
a WOM Champion
3x
Colloquy
People are more likely to trust a
recommendation from a friend
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AHAlife / Twitter
- 17. Social Media is not a Quick-Win Solution
17
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- 18. The Power of Postcards
18
How a UK-based Charity
slashed donor attrition
rates using Postcards
Attrition rate after
6 months halved!
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Rapidata Case Study
- 19. Communication: Old is New
19
Sometimes it’s the
little things in life
that count the most
Johnny the bagger
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- 20. Look for compelling Quick Wins
20
Stay ‘front-of-mind’ by
giving your customers easy
and up-to-date access
directly from PassBook
Loyalty Card (Balance)
Coupons / Vouchers
Copyright 2012 © - Welcome Real-time
- 22. 15 Years of Experience in Loyalty
22
> 20 live projects across 5 continents.
> 14 different spoken languages
> Local presence in 30+ countries (direct or via partners)
Aix-en-Provence
(France)
Singapore
Sao Paulo
300,000 daily loyalty transactions
between1+ Million Retailers and
2011 live projects 50+ Million consumers.
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- 23. Products Overview
23
Online redemption Push offers Real-time customer interaction
@ Payment
PC & tablets
version Smart phone
version E-Wallet +
integration
Media Integration
Internet payment POS
Loyalty scheme
App
Welcome Loyalty ePOS
Engine
Loyalty Scheme Merchant
Analytics
Management Portal
Portal
Portal
Applications used by the loyalty scheme operator / the issuer Application used by Merchants
Copyright 2012 © - Welcome Real-time
- 24. Sample References
24
Retail Banking
Payment Processors Partners and Operators
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- 25. Thank you
for your attention
www.welcome-rt.com
© 2012 Welcome Real-time. All rights reserved.
Content in this presentation is provided for general information purpose only and is owned by Welcome Real-time. It does not
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Editor's Notes
- Welcome Real-timeCover slide
- Survey of 143 people