Best Practices in Loyalty Communications: Checklist for Success by L Watson on 02 feb-2012
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Best Practices in Loyalty Communications: Checklist for Success by L Watson on 02 feb-2012

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Presentation for 5th Loyalty Summit in Mumbai

Presentation for 5th Loyalty Summit in Mumbai

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Best Practices in Loyalty Communications: Checklist for Success by L Watson on 02 feb-2012 Best Practices in Loyalty Communications: Checklist for Success by L Watson on 02 feb-2012 Presentation Transcript

  • Best Practices in Loyalty Communications:Checklist for Success Lisa Watson Chairman, Direct Marketing Association of Singapore Regional Segment Manager, HP IPG APJ 02 February 2012 Progressive Profitable Printing © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice
  • Many Definitions of Loyalty• Customer loyalty is the continued and regular patronage of a business in the face of alternative economic activities and competitive attempts to disrupt the relationship.• Customer loyalty often results in other secondary benefits to the firm such as brand advocacy, direct referrals, and price insensitivity. 2 02-Feb-12
  • Basic Laws of Loyalty is both rational AND • Loyalty emotional • Loyalty is the integration of behavior, satisfaction and attitude 3 02-Feb-12
  • Effective Loyalty Programs Require Balance What We Mean to the CustomerWhat the Customer Means to Us Customer Equity 4 02-Feb-12
  • Customer Equity = The total lifetime value of the customer to your category MULTIPLIED BY the probability he/she will do business with YOU 5 02-Feb-12
  • Airlines, Hotels, Car Rentals,Slut Slide Retailers, Coffee shops, Restaurants, Credit Cards, Telcos, Games, FourSquare, websites, Coalition Programs, etc, etc How can we be forgiven? 6 02-Feb-12
  • Relevance Recognition Rewards7 02-Feb-12
  • Intelligence Powers Relevance VOLUME VALUE Mass Personalization Communication & Customization The RIGHT Customer The RIGHT Product The RIGHT Channel The RIGHT Time The RIGHT Message 8 02-Feb-12
  • Personalization is Powerful! 9 02-Feb-12
  • Rewards Should be Customized as WellBarclaycard Loyalty Program : Best OtherCustomers Customers 10 02-Feb-12
  • Basic Laws of Loyalty • Loyalty is both rational AND emotional • Loyalty is the integration of behavior, satisfaction and attitude • Rewards do not buy loyalty • Loyalty must be earned, ie we must be loyalty to customers as well 11 02-Feb-12
  • Direct Mail Personalization GOLD GOLD12 02-Feb-12
  • Chevrolet Transformers 2 Press Invitation ARC Worldwide Malaysia 13 02-Feb-12
  • Chevrolet Transformers 2 Press Invitation• Chevrolet was one of many product placement sponsors of the blockbuster film Transformers 2• Competition was fierce for ‘share of mind’ of publication editors so many auto brands held private premiere screenings• Chevrolet decided to differentiate their invitation by leveraging an unusual form of personalization AND customization 14 02-Feb-12
  • We want an invitation email… zzzzzzzzzzzzzz15 02-Feb-12
  • Chevrolet Transformers 2 Press Invitation 16 02-Feb-12
  • Chevrolet Transformers 2 Press Invitation 17 02-Feb-12
  • Chevrolet Transformers 2 Press Invitation 18 02-Feb-12
  • Chevrolet Transformers 2 Press Invitation 19 02-Feb-12
  • Chevrolet Transformers 2 Press Invitation 20 02-Feb-12
  • Chevrolet Transformers 2 Press Invitation 21 02-Feb-12
  • Basic Laws of Loyalty • Loyalty is both rational AND • Relationship efforts must emotional recognize and reward the customer • Loyalty is the integration of behavior, satisfaction and • Loyalty is personal and attitude individual • Rewards do not buy loyalty • Loyalty must be earned, ie we must be loyalty to customers as well 22 02-Feb-12
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  • Basic Laws of Loyalty • Loyalty is both rational AND • Relationship efforts must emotional recognize and reward the customer • Loyalty is the integration of behavior, satisfaction and • Loyalty is personal and attitude individual • Rewards do not buy loyalty • Not all customers are equal so neither is loyalty • Loyalty must be earned, ie we must be loyalty to customers as • Loyalty is a journey not a well destination 28 02-Feb-12
  • Loyalty/Retention Programs Loyalty means building bothrational & emotional bonds with a customer to increase profitability & lifetime valueRewards Services Voice Products Customer Intelligence 29 02-Feb-12
  • Lancome Uses a Survey to Gather Intelligence 30 02-Feb-12
  • With A Great Questionnaire… AT FIRST What do you think of the Club? Demo- graphic update How is our in-store service? What’s your Including skincare Age & spending? Income!!! 31 02-Feb-12
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  • HP DM & TP Activity Around the World• Latin America – Brazil: BMK and ABN print TransPromo for Bradesco Bank, Printlaser - Brazil’s largest transactional printer – Colombia: Computec - Colombia’s largest transactional printer – Chile: Empresas Jordan – Chile’s largest transactional printer• APJ – Datam, New Zealand’s largest transactional printer (4x W7200) – Blue Star, GEON in Australia – BillPost, MiraeN in Korea – JCS, Datapost in Singapore• Europe – Oniya Shapira, Israel: Prints transpromo statements for Visa Cal (5x W3250) – Communisis, among UK’s largest direct mail and transactional printers – DM & TP HPs with enterprises across Europe• US – Rider Dickerson – The Ace GroupAnd More! 33 02-Feb-12
  • Successful Loyalty Campaigns Depend on 5 Key Elements Production Campaign Creative Data & Tracking Plan Distribution Full TransPromo High end targeted campaigns and catalogues Self mailer and Postcards with Light to Static 1 & 2c Moderate Color VDP Cindy, We will give you the book price for a trade-in on Your old Mitsubishi and 20 payments on the rest of the price.Simple mail merge & Over printed shells Single Channel Multi-Channel 34 02-Feb-12
  • Mine35 02-Feb-12
  • mine – A Customized Magazine from Time Inc.& Lexus CHALLENGE Lexus wanted to reach prospective customers cost-effectively and deliver relevant advertising messages in a compelling and personal environment SOLUTION Consumers visited a Time-developed website and requested content based on their interests. The resulting publications were delivered with 4 pages of Lexus advertising 36 02-Feb-12
  • Digital and Print Ads Drove Online Sign-Ups 37 02-Feb-12
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  • mine – A Customized Magazine from Time Inc. & Lexus• Subscribers chose content from 5 of 8 magazines• Content & advertising was customized using magazine choices, where they lived & answers to 4 questions 39 02-Feb-12
  • mine – A Customized Magazine from Time Inc. & Lexus• Subscribers chose content from 5 of 8 magazines• Content & advertising was customized using magazine choices, where they lived & answers to 4 questions• Results 31,000 print subscribers 200,000 online subscribers• 6 issues of 32+ pages, fully personalized, produced in 7-day process 40 02-Feb-12
  • Table of Contents 41 02-Feb-12 HP Confidential
  • Results• Buzz – 200+ million press impressions• Impact – Reached sign-up target within 1 month of launch – 16% opt-in for Lexus RX information – 3X time spent with content than generic magazines – Increase in brand metrics• Awards – Cannes Gold Medal Lion for Best Use of Magazine – MIN Integrated Marketing WOW Award – MIN Out of the Box for Most Creative Program 42 02-Feb-12 HP Confidential 42 02-Feb-12
  • The Loyalty Communications Checklist is both rational AND • Loyalty • Relationship efforts must emotional recognize and reward the customer • Loyalty is the integration of behavior, satisfaction and • Loyalty is personal and attitude individual • Rewards do not buy loyalty • Not all customers are equal so neither is loyalty • Loyalty must be earned, ie we must be loyalty to customers • Loyalty is a journey not a as well destination 43 02-Feb-12
  • Thank You! lisa1.watson@hp.com
  • Progressive Profitable Printing