Telco Loyalty - approaches from other sectors (iir Telecoms Conferernce, Monaco July 2011)

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Telco Loyalty - approaches from other sectors (iir Telecoms Conferernce, Monaco July 2011)

  1. 1. Driving greater customer loyalty:Exploring approaches from non-telco sectors Alexander Meili Planning Director Europe ICLP
  2. 2. Content • About ICLP • Research – external view • Customer lifecycle – internal view • Best practice examples • Conclusion and take aways
  3. 3. Content • About ICLP • Research – external view • Customer lifecycle – internal view • Best practice examples • Conclusion and take aways
  4. 4. Who we are ICLP = International Customer Loyalty Programmes  A full-service loyalty marketing agency with a global presence  25 years of experience in loyalty marketing LATITUDE  innovative products/solutions delivering incremental revenue to clients
  5. 5. Definitions: Loyalty Marketing & Loyalty Programmes Customer Using customer data and proposition: insight to generate • Reward an incremental shift in • Recognition behaviour • Benefits Loyalty Programme (memberships, points/tiers, rules)
  6. 6. Content • About ICLP • Research – external view • Customer lifecycle – internal view • Best practice examples • Conclusion and take aways
  7. 7. Programme saturation levels in Europe Very saturated Saturated Saturated market Programmes per adult consumer (average) 4.5© ICLP research 2011
  8. 8. Ranking: biggest loyalty programmes in Europe • Sainsbury’s Nectar • Carrefour Carte Fidelité • Fidati (Esselunga) • Boots Advantage Card • S’Miles • Il Gigante • Tesco Clubcard • Cartes Intermarché • Nectar Italy • British Airways Executive Club • Carte Auchan • Carta Viaggio (Trenitalia) • Airmiles • Carte Leclerq • Mille Miglia (Alitalia) • Waterstones • Air France Flying Blue • Agos • Ikea Family • Carte Super U • Findomestic • Diamond Club (bmi) • Ikea Family • You and Agip Membercard • Costa Card • Carte Fnac • Sidis Card • Ladbrokes • Club Total (Total) • Carta Club (Supermercati) Programme ubiquity or survival of the fittest? • Travel Club (Airmiles) • Payback • Migros Cumulus • Repsol YPF • Lufthansa Miles & More • Coop Supercard • El Corte Inglés • Deutschland Card • Interior Plus Karte • Carrefour • Ikea family • PKZ Insider • Iberia • BSW Bonusclub • Bonuscard (Jelmoli) • Vips Club • Bahncard (Deutsche Bahn) • Pluscard (Globus) • Club AVE (AVE train) • Shell Clubsmart • UBS Keyclub • Sol Melia MaS • Douglas Club • A la carte (Möbel Pfister) • NH Hoteles • Airberlin (Top Bonus) • Myone (Manor)© ICLP research 2011
  9. 9. Ranking: biggest loyalty programmes in Europe Distribution of biggest loyalty programmes in Europe according to sector (units) • Sainsbury’s Nectar • Carrefour Carte Fidelité • Fidati (Esselunga) • Boots Advantage Card • S’Miles • Il Gigante • Tesco clubcard • Cartes Intermarché • Nectar Italy • British airways Exec. Club • Carte Auchan • Carta Viaggio (Trenitalia) • Airmiles • Carte Leclerq • Mille Miglia (Alitalia) 75% • Waterstones • Air France Flying Blue • Agos • Ikea Family • Carte Super U • Findomestic • Diamond Club (bmi) • Ikea Family • You and Agip Membercard • Costa Card • Carte Fnac • Sidis Card • Ladbrokes • Club Total (Total) • Carta Club (Supermercati) • Travel Club (Airmiles) • Payback • Migros Cumulus • Repsol YPF • Lufthansa Miles & More • Coop Supercard • El Corte Inglés • Deutschland Card • Interior Plus Karte • Carrefour • Ikea family • PKZ Insider • Iberia • BSW Bonusclub • Bonuscard (Jelmoli) • Vips Club • Bahncard (Deutsche Bahn) • Pluscard (Globus) • Club AVE (AVE train) • Shell Clubsmart • UBS Keyclub • Sol Melia MaS • Douglas Club • A la carte (Möbel Pfister) • NH Hoteles • Airberlin (Top Bonus) • Myone (Manor)© ICLP research 2011
  10. 10. What about the telco sector?
  11. 11. Telcos with a loyalty programmeLow penetration of loyalty programmes … with significant regionalwithin telco operators… differences Based on Telcos with points incentives a loyalty programme loyalty programme 25% 60%© ICLP benchmark 2011
  12. 12. Why a programme is not the only option? Contract / subscription business (long term) other „No“ POS possibilities to connect Post payment with Customer Data customers (already available)Note: Pre-paid business or ‘PAYG’ is following a different rationale, with other segment characteristics
  13. 13. Similarities to other industries Retail Travel Finance Coalition Media InsuranceContract / subscription business (long term) „No“ POS Post payment Customer Data (already available)
  14. 14. What kind of incentive / benefit would you expect? Different sector – Discounts Different customer expectation? Vouchers (purchase) Points/miles Special events VIP service Products and services Others No incentive
  15. 15. Attractiveness of incentive/industry sector (top 3) Retail Insuran. Banking Airlines Hotels Media Telco Discounts Vouchers (purchase) Points / Miles Special Events VIP Service Products and Services Others No Incentive ICLP market survey in DACH region, 2011
  16. 16. Content • About ICLP • Research – external view • Customer lifecycle – internal view • Best practice examples • Conclusion and take aways
  17. 17. The customer lifecycle Acquisition Up - and X-Sell Retain / Hold Churn prevention (introduction stage) (entry stage) (maturity stage) (decline stage) FocusCustomer value srg Customer lifetime
  18. 18. Content • About ICLP • Research – external view • Customer lifecycle – internal view • Best practice examples • Conclusion and take aways
  19. 19. Example 1 – SIXT Car Rental Segmentation – sign up for the cards most relevant to you Sixt cardsSixt Express Card Sixt Corporate Card for Sixt Ladies Card profit from Sixt Gold Card customersfor all Sixt customers corporate customers your partners corporate rate. renting more than 5 times per year
  20. 20. Example 2 – VISA InternationalUp-sell promotion ontransactions(!) madeMechanic:• Online sales promotional tool that rewards customers for credit card purchases madeReward:• Tokens are issued to participants for each qualifying purchase made• Matching tokens can be redeemed against a prize
  21. 21. Example 3 – Air Berlin Protect share of wallet – “My route” • Do you fly a certain route on a regular basis? • double award miles when you fly your favourite route within Europe - both ways. • This makes collecting miles twice as much fun – and you reach your award goal even faster. • Idea based on telco marketing (‘my favourites’)* Winner of the Loyalty Innovation award – Loyalty Awards 2010
  22. 22. Example 4 – Amex SelectsLeverage the power of partners (‘show your card and save’)• Exclusive partner offers to American Express card members• Advantage of a special price at selected partners in travel, leisure, dining and shopping offers from around the world
  23. 23. Example 5 – Fid’ Allianz Insurance• Full fledged loyalty programme set up to ‘fight attrition efficiently’.• Unlike other industries, customer seniority is rewarded.
  24. 24. Content • About ICLP • Research – external view • Customer lifecycle – internal view • Best practice examples • Conclusion and take aways
  25. 25. Take AwaysExternal view: know the market (across the industry) • You are not alone • Your customers are the same as the members of Miles&More, Avis, Allianz…Internal view: manage the customer lifecycle • It‘s about segmentation, emotion and experiencesExplore approaches from other industries • It‘s not about copying • it‘s about making great ideas smarter and adapting to own needs
  26. 26. Q&A
  27. 27. Your contact at ICLPAlexander MeiliPlanning Director EuropeTel +41 44 533 30 41alexander.meili@iclployalty.comtwitter @ICLP_loyalty

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