LOYALTY AS A KEY WORD OF CURRENT EUROPEAN MARKETING Louis Delcart Chairman of the Supervisory Board EMC - European Marketi...
Britannia to offer £40m loyalty bonus CUSTOMER LOYALTY CARDS Calling All Loyal Fans   Sep 26 2002                         ...
Components of a loyalty system <ul><li>The right customers </li></ul><ul><li>Lifetime products and services </li></ul><ul>...
The Service-Profit Chain Internal Service Quality Employee Satisfaction Employee   Retention Employee Productivity Externa...
1 extremely dissatisfied 2 somewhat dissatisfied 3 slightly dissatisfied 4 satisfied 5 very satisfied Satisfaction Measure...
The Virtuous Circle of Loyalty Deliver Superior Value Continuous investment in hard-to-match capabilities Increase custome...
Two Trends in Loyalty Programs 2 <ul><li>Rewarding Loyalty </li></ul><ul><li>use rewards to foster their loyalty  </li></u...
Two Trends in Loyalty Programs 2 <ul><li>Rewarding Loyalty </li></ul><ul><li>Loyalty demonstrated through accumulated purc...
                                                                                                                          ...
Two Trends in Loyalty Programs <ul><li>Rewarding Loyalty </li></ul><ul><ul><li>threshold marketing </li></ul></ul>
Two Trends in Loyalty Programs 3 <ul><li>Rewarding Loyalty </li></ul><ul><ul><li>behavioral change </li></ul></ul>
When are loyalty programs successful? <ul><li>Use rewards to strengthen the value proposition </li></ul><ul><li>Change cus...
The Relationship Spectrum Transactional exchanges Value-adding exchanges Collaborative exchanges Anonymous transactions/ A...
Devising a Relationship Strategy Understand the sources and consequences of customer retention “ What is loyalty?” Identif...
Striving for Interactivity 2 way Active database marketing Fully Interactive Communications Addressability Value Propositi...
The Price of Loyalty <ul><li>The programs are expensive </li></ul><ul><li>Loyalty programs take on a life of their own onc...
Loyalty and customer satisfaction 1 <ul><li>Satisfied customers will spread the word </li></ul><ul><li>Service is the key ...
Loyalty and customer satisfaction 2 <ul><li>Satisfied customers will spread the word </li></ul><ul><li>Service is the key ...
Loyalty and customer satisfaction 3 <ul><li>Know your products </li></ul><ul><li>What your customers want </li></ul>Discov...
Loyalty and customer satisfaction 4 <ul><li>Discover customers' buying styles </li></ul><ul><ul><li>Adversary buying style...
Loyalty and customer satisfaction 5 Not all satisfied customers stay with their supplier Solution: go beyond customer sati...
CASE STUDIES <ul><li>Tesco </li></ul><ul><li>Happy Days </li></ul>
PARTNERS
 
                                                                                                                          ...
go back to...   Tesco . com  home   Today  at  Tesco   Clubcard                    About Clubcard   Tesco Freetime   AIR M...
OWNERS PARTNERS
<ul><li>Created and managed by a Database management company: Sopres </li></ul><ul><li>Money, discount coupons, products, ...
                                                                                                                          ...
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Loyalty As A Key Word Of Current European Marketing

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  • 1 Sources: George S. Day: The Market-Driven Organisation , The Free Press, New York, 1999 James Cigliano, Margaret Georgiadis, Darren Peasance &amp; Susan Whalley: The Price of Loyalty , in: The McKinsey Quarterly, nr.4 - 2000, pp. 68-77 James Heskett, Thomas Jones, Gary Lovemann, W.Earl Sasser Jr &amp; Leonard Schlesinger: Putting the Service-Profit Chain to Work , in: Harvard Business Review, March-April 1994 Frederick Reichheld: Loyalty-Based Management , in: Harvard Business Review, March-April 1993
  • Loyalty As A Key Word Of Current European Marketing

    1. 1. LOYALTY AS A KEY WORD OF CURRENT EUROPEAN MARKETING Louis Delcart Chairman of the Supervisory Board EMC - European Marketing Confederation www.proximedia.com/web/cardone.html
    2. 2. Britannia to offer £40m loyalty bonus CUSTOMER LOYALTY CARDS Calling All Loyal Fans Sep 26 2002                                         Coventry City are set to introduce a ground-breaking loyalty scheme that could change the face of football fandom forever.                                                                                                                     March 2000
    3. 3. Components of a loyalty system <ul><li>The right customers </li></ul><ul><li>Lifetime products and services </li></ul><ul><li>Loyal employees </li></ul><ul><li>Measures of loyalty </li></ul>
    4. 4. The Service-Profit Chain Internal Service Quality Employee Satisfaction Employee Retention Employee Productivity External Service Value Customer Satisfaction Customer Loyalty Revenue Growth Profitability Operating Strategy and Service Delivery System <ul><li>workspace design </li></ul><ul><li>job design </li></ul><ul><li>employee selection & development </li></ul><ul><li>employee rewards and recognition </li></ul><ul><li>tools for serving customers </li></ul><ul><li>service concept results for customers </li></ul><ul><li>service designed and delivered to meet targeted customers’ needs </li></ul><ul><li>retention </li></ul><ul><li>repeat business </li></ul><ul><li>referral </li></ul>
    5. 5. 1 extremely dissatisfied 2 somewhat dissatisfied 3 slightly dissatisfied 4 satisfied 5 very satisfied Satisfaction Measure Loyalty (Retention) 100 % 80 % 60 % 40 % 20 % Zone of defection Zone of indifference Zone of affection Apostles Terrorists Mercenaries Indifferents The Heskett-scheme Hostages -- monopoly __ normal competition
    6. 6. The Virtuous Circle of Loyalty Deliver Superior Value Continuous investment in hard-to-match capabilities Increase customer loyalty Tighten connections Demonstrate trustworthiness Increase customer satisfaction
    7. 7. Two Trends in Loyalty Programs 2 <ul><li>Rewarding Loyalty </li></ul><ul><li>use rewards to foster their loyalty </li></ul>                                                                                                                                
    8. 8. Two Trends in Loyalty Programs 2 <ul><li>Rewarding Loyalty </li></ul><ul><li>Loyalty demonstrated through accumulated purchases </li></ul><ul><li>Lock-in strategies achieved with the active participation of the customer </li></ul><ul><li>Flexibility van be adjusted over time, e.g. through cross-promotions </li></ul><ul><li>Some firms may buy into a share of the loyalty program </li></ul>
    9. 9.                                                                                                                                                   Vous découvrirez dans notre catalogue et nos magasins une foule d'articles sympas ; allant de DVD à des jouets épatants. Mais comment les obtenir?      > la société Artis d'hier et d'aujourd'hui                                                                                     > etape 1: épargner Rien de plus simple, en fait: les points Artis sont présents sur une foule de produits (découvrez la liste ici ou dans votre magazine Artis). Il vous suffit de découper les points et de les conserver. Vous constaterez bien vite que le nombre de vos points ne cesse d'augmenter (surtout quand toute la famille s'y met!). 100 nouveaux points Artis équivalent à une réduction de 1 Euro. Vous l'aurez compris: plus vous épargnez de points et plus vous pourrez choisir d'articles à prix doux. C'est là que réside d'ailleurs le principal avantage de ce système: vous ne devez même pas attendre d'avoir suffisamment de points, car vous pouvez également payer toute votre commande ou une partie en argent comptant (voir étape 3). > etape 2: choisir Voici venu le moment de sélectionner un article. Furetez à loisir dans notre site ( ou dans nos magasins ) pour découvrir notre choix des plus larges en DVD, cd-rom, jeux de société, livres, CD, … Ceux-ci abordent les thèmes les plus variés: culture, nature, animaux, histoire, art, cuisine, jardinage, voyages,... Les petits loustics seront eux aussi à la fête. Artis Zone est un lieu de découvertes proposant des dizaines de jouets amusants, d'histoires à lire, de jeux de bricolage, de CD à reprendre en chœur,... Bien sûr, leur conception a été mûrement réfléchie afin que tous conviennent aux enfants. Artis s'en porte garant.
    10. 10. Two Trends in Loyalty Programs <ul><li>Rewarding Loyalty </li></ul><ul><ul><li>threshold marketing </li></ul></ul>
    11. 11. Two Trends in Loyalty Programs 3 <ul><li>Rewarding Loyalty </li></ul><ul><ul><li>behavioral change </li></ul></ul>
    12. 12. When are loyalty programs successful? <ul><li>Use rewards to strengthen the value proposition </li></ul><ul><li>Change customer behaviour </li></ul><ul><li>Learn more about your customer: the learning relationship </li></ul>
    13. 13. The Relationship Spectrum Transactional exchanges Value-adding exchanges Collaborative exchanges Anonymous transactions/ Automated purchasing Complete collaboration and integration of supplier with customer or channel partner
    14. 14. Devising a Relationship Strategy Understand the sources and consequences of customer retention “ What is loyalty?” Identify the reasons for defections “ Why do customers switch?” Select the customers to retain “ Which customers are valuable?” Design programs to enhance the value proposition and create barriers to imitation “ How can we gain an advantage?” Align the organisation to retention as a top priority How will we implement the strategy?” Monitor performance and collect feedback for continuous improvement programs “ How are we doing?”
    15. 15. Striving for Interactivity 2 way Active database marketing Fully Interactive Communications Addressability Value Proposition 1 way Tailored to micro-segments Mass Micro-segments One-for-all Individuals Personalised
    16. 16. The Price of Loyalty <ul><li>The programs are expensive </li></ul><ul><li>Loyalty programs take on a life of their own once they start </li></ul><ul><li>Despite their number and apparent popularity with customers, these programs often fail to increase customers’ loyalty </li></ul>
    17. 17. Loyalty and customer satisfaction 1 <ul><li>Satisfied customers will spread the word </li></ul><ul><li>Service is the key to customer loyalty </li></ul>Customer service beyond the sale Make a difference with an extra-special touch
    18. 18. Loyalty and customer satisfaction 2 <ul><li>Satisfied customers will spread the word </li></ul><ul><li>Service is the key to customer loyalty </li></ul><ul><li>Customer service beyond the sale </li></ul><ul><li>Make a difference with an extra-special touch </li></ul>
    19. 19. Loyalty and customer satisfaction 3 <ul><li>Know your products </li></ul><ul><li>What your customers want </li></ul>Discover customers' buying styles
    20. 20. Loyalty and customer satisfaction 4 <ul><li>Discover customers' buying styles </li></ul><ul><ul><li>Adversary buying styles </li></ul></ul><ul><ul><li>Protective buying style </li></ul></ul><ul><ul><li>Acceptance seeker </li></ul></ul><ul><ul><li>Pragmatic style </li></ul></ul>
    21. 21. Loyalty and customer satisfaction 5 Not all satisfied customers stay with their supplier Solution: go beyond customer satisfaction Develop the rapport that will make that your customers adore you.
    22. 22. CASE STUDIES <ul><li>Tesco </li></ul><ul><li>Happy Days </li></ul>
    23. 23. PARTNERS
    24. 25.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                As a Clubcard member, the money you spend shopping can actually save you money! Sign up now to earn points – you can use the Clubcard Vouchers you earn to save on your shopping bill, take advantage of fantastic Clubcard Deals or swap them for AIR MILES...                                                                                                                                                                                                                                              Clubcard Deals from Tesco Freetime could make your Vouchers worth twice as much !                               Now Clubcard gives you even more choice . Swap your Clubcard Vouchers for AIR MILES and travel the world .                           Exclusive free Clubs       Join our fantastic FREE Clubs for giveaways , coupons and great advice – including Tesco Clubcard World of Wine and Healthy Living Club.                                               Points with our partners       More exciting new partners to help you earn even more points !
    25. 26. go back to...   Tesco . com home   Today at Tesco   Clubcard                    About Clubcard   Tesco Freetime   AIR MILES   Your Clubcard Account   Clubcard Statement   Great ways to earn points   Points with our Partners   Clubs   Clubcard Extra Points !   Contact us   How to Join
    26. 27. OWNERS PARTNERS
    27. 28. <ul><li>Created and managed by a Database management company: Sopres </li></ul><ul><li>Money, discount coupons, products, events </li></ul><ul><li>Motive: quality of life, granting for the family </li></ul>
    28. 29.                                                                                                                                                                                                                                                                                                                                                                         GB / Carrefour      Fortis Banque      Shell      Azur      Gamma      Hertz      ICI PARIS XL      Neckermann      Pizza Hut      Proximus      Skynet      Standaard Boekhandel      Touring Ces enseignes récompensent votre fidélité:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Contact Privacy Conditions
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