Where Our Loyalties Lie Presentation


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Presentation conducted in March 2011 in Sydney covering the topic of Loyalty based on two bits of research - Qualitative research conducted by the Ipsos Mackay team and quantitative research conducted by the Ipsos Loyalty team

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  • Couple of points w/ loyalty to Aus – how it impacts consumer behavior and the general loyalty to Aus
  • Pets just made the cut and Employers just missed it…
  • Quick explanation of -1 to +1 scale…
  • Key points…Clear leader is Automotive and yet we know actual repurchase in this category is lowGrocers 2nd lowest and yet 2nd highest actual recommendations
  • This is looking at the relationship between common Loyalty measures and company sales across three industries... You’ll see that in each industry, using the Ipsos Loyalty measure with built in behavioral measures and value dramatically out performed other measures as it pertained to the measure that arguably matters most – revenue.NEXT CHARTWe measured brand of service providers at one point in time and 1 year later. Only 24% of those who had been initially classified (in the first survey) as Highly Loyal churned during the next 12 months.50% had indicated they intended to switch provider but 50% did not say they intended to but did switch providers all the same.
  • For some companies, the greatest opportunity to increase company revenue is not through acquisition nor solely retaining, but actually by retaining & growing the business you get from your existing customers – getting your existing customers to buy more of your products. Looking at Wealth Management as an example...Restate – Loyalty Index & Retention is the foundation and core program. Advocacy to Acquisition is an easy model to bolt onto your Loyalty Index program... SOW model also easy to bolt onto your Loyalty Index program.
  • Where Our Loyalties Lie Presentation

    1. 1. Where Our Loyalties Lie<br />Rebecca Huntley <br />Director, The Ipsos Mackay Report<br />Brett Tucker<br />MD, Ipsos Loyalty<br />
    2. 2. Where Our Loyalties Lie Presentation<br />What’s on for today…<br />Themes from The Ipsos Mackay Report research findings<br /> Loyalty is about relationships<br /> Review Where Our Loyalties Lie Survey companion piece from the Ipsos Loyalty team<br /> Section 1 – Customer, Employee and Personal Loyalty<br /> Section 2 – The Economics of Loyalty <br /> Q&A and discussion<br />
    3. 3. Meet the Presenters<br /> Ipsos Loyalty MD with 12+ years of MR experience with focus on customer satisfaction and loyalty research<br /> Prior to Australia, Brett was with Ipsos Loyalty in the US designing, implementing and managing Loyalty programs for companies like Microsoft, US Bank, Diners Club, MSN and Yahoo!. Prior to joining Ipsos, Brett was a Senior Consultant with Harris Interactive’s Customer Loyalty division<br /> BS from the Univ. of Washington (United States) with emphasis in marketing and org behavior.<br />Brett Tucker<br />Dr Rebecca Huntley is a researcher and author with a background in publishing, academia and politics. She holds degrees in law and film studies and a PhD in Gender Studies.<br /> Rebecca is the Director of The Ipsos Mackay Report, now in its 33rd year. She is the author of two books, The World According to Y: Inside the New Adult Generation and Eating Between the Lines: food and equality in Australia.<br />She is a sought after commentator on social trends on radio, in print and on television<br />Dr. Rebecca Huntley<br />
    4. 4. Ipsos in Australia<br />In Australia, Ipsos opened its doors in 1999<br />Since then, Ipsos has acquired TQA, Mackay Report, and <br />Eureka Strategic Research<br />Ipsos Australia also owns the largest fieldwork company<br />in Australia, I-View. I-View employs over 1000 qualified <br />market research interviewers with expertise in <br />Door-to-Door, Central Location, Telephone, Mystery <br />Shopping and Audits. ISO 20252 for Market Research<br />Ipsos publishes the widely publicised Ipsos Mackay <br />Report and has recently been selected to conduct <br />Australia’s second major readership survey<br />Ipsos now has four offices in Australia (Sydney, <br />Melbourne, Brisbane and Canberra) and approximately <br />130 full time employees. <br />
    5. 5. Where Our Loyalties Lie<br />Rebecca Huntley <br />Director, The Ipsos Mackay Report<br />
    6. 6. Themes from our research findings<br />
    7. 7. Loyalty is about relationships<br />‘The only thing you feel obliged to be 100% loyal to is your family.’<br />
    8. 8. Intimate relationships set the benchmark<br />Against which all other forms of loyalty are measured<br />Endures through thick and thin<br />I’ve got a friend that I went to school with and we might not see each other for forever. But when we get back together it’s like we never left, we pick up the threads instantly.<br />If you come back to where loyalty is in your everyday life, it’s your family. That’s the only loyalty you can really trust. It’s the one that doesn’t shift. <br />Periods of adversity or absence the greatest test of its strength<br />
    9. 9. What can Corporate Australia learn from the local café? <br />You go back to the same café when you know them and they know you. <br />I’m loyal to my local café. I’ve been going to the same one for over six years. <br />The thing about a business, like my café, knowing your name is really important to me. It makes people feel good so they’ll keep coming back. <br />I have some friends who go to the same café even though the food and coffee is terrible, but they keep going back because they’re loyal. The owners are really nice and know them. <br />
    10. 10. Loyalty can extend beyond family<br /><ul><li>Between employers and employees</li></ul> “I’m very loyal to my boss because he is very loyal to me. He treats me very well, and loyalty, it doesn’t work one way, it works both ways.”<br /><ul><li>Clients and customers</li></ul> “Even at work we are loyal to suppliers over price. There is a good relationship there. And we can rely on them. They are always there when they say they are going to be there. That’s massive.”<br /><ul><li>Personal services (doctors, dentists, hairdressers)</li></ul> “I’m more loyal to people – friends and family. Or if I know the hairdresser, I stay with her. It’s all about people. That’s why I don’t care about supermarkets, there’s no contact with people.”<br />
    11. 11. Reciprocity and trust are key<br />It’s a two way street<br />[Loyalty] has to benefit both parties to some degree. It doesn’t have to be financial or whatever, but it has to be some benefit. <br />Being trustworthy underpinned this reciprocity<br />Trust and loyalty and respect. You can’t have one without the other really. You need both to have loyalty. <br />This mutual exchange brought with it comfort and security<br />It gives you a good feeling, satisfaction. A level of comfort and security. <br />
    12. 12. This elasticity of loyalty also extends to …<br />The church<br />Local businesses<br />I like to be loyal to my church because it is where I grew up, where my spiritual family is, where my interest is. I want to be loyal to my church. I’ve decided it is my spiritual house and I will be loyal to the end. <br />I go to my local greengrocer, not the supermarket. You pay more, but you get conversation so you stay loyal.<br />Cafes, pubs & restaurants<br />I’m loyal to my local coffee shop. They know me there. <br />
    13. 13. Loyalty to brands varied enormously<br />Cars<br />Some people are loyal to cars. My neighbour will only ever buy Holdens. Won’t buy Ford. Hates Fords. Actually hates them.<br />Technology<br />I’m loyal to my Mac. I’ve had like four iPods. <br />My loyalties have changed. I used to be a Playstation man but then Xbox brought out Fable and I have been Xbox ever since.<br />
    14. 14. Service keeps us loyal<br />I have loyalty, in terms of products or consumables, if in the service I get something back that I think is above and beyond. <br />Loyalty is to individual sales staff<br />I think lots of companies don’t nurture that loyalty [to staff]. Because you are more loyal to a person than you are to a product. <br />You might shop at Target because you have had a good experience in the past. But I went in there to buy a few things and got shocking service. So they are on the blacklist now. <br />One bad experience could dismantle previous loyalties<br />
    15. 15. Now let’s look at some data…<br />Brett Tucker<br />MD, Ipsos Loyalty<br />
    16. 16. The survey<br />We asked Australians….<br /><ul><li>Where do your loyalties lie? (loyalty measured across ~30 variables)
    17. 17. How loyal are you to your employer?
    18. 18. Do you have the propensity to be a loyal customer?
    19. 19. As a consumer, what are the drivers of your loyalty across six industries?</li></li></ul><li>Specifically, who did we talk to?<br />
    20. 20. What did we find?<br />
    21. 21. When thinking about loyalty… family, friends and Australia clearly rose to the top<br />Country before brands<br />If you come back to where your loyalty is in your everyday life, it’s your family. That’s the only loyalty you can really trust. It’s the one that doesn’t shift. <br />My mum only buys orange juice that’s made with Australian oranges. She feels like even though she’s not being loyal to a particular brand, she feels like she’s been loyal to the Australian orange growers <br />Family first<br />
    22. 22. And the top 10 are…<br />
    23. 23. From an overall loyalty perspective… politics & politicians rate poorly<br />With politics, my family used to vote a certain way and then I voted that way out of loyalty. And then I realised I needed to think for myself and process these issues for myself. We need to reconsider why we are loyal. <br />Has loyalty to politics changed?<br />
    24. 24. And the bottom 10 are…<br />
    25. 25. How do our loyalties lie together?<br />Primary wealth management firm or fund<br />Particular beer<br />Print news source<br />Australia<br />Federal political leader<br />Particular butcher<br />Online news source<br />Friends<br />Grocery store brand<br />Particular wealth manager<br />Pets<br />Family<br />State political leader<br />Television news source<br />Grocery store location<br />Spouse/partner<br />Main superannuation fund<br />Radio news source or talk show<br />Political party<br />Department store brand<br />Mobile phone handset brand<br />Main financial institution<br />
    26. 26. Does loyalty to family & friends = loyalty to employers and products?<br />Loyalty to family is the real thing. So when you are talking about loyalty to makeup and credit cards, it is meaningless. It’s all marketing. It’s all about people trying to tap into something that has real meaning to try and sell a product<br />I’m loyal to my friends and family. I’m also fiercely protective. I’m not the same with products.<br />
    27. 27. The answer is no… looking at the different forms of loyalty<br />Personal<br />loyalty<br />3%<br />Our loyalties to other people, employers and products are unique<br />Employee<br />loyalty<br />4%<br />2%<br />Customer<br />loyalty<br />
    28. 28. Generational differences regarding loyalty? <br />Opinions differ…<br />A new generation?<br />There’s no loyalty in the ‘me, me generation’.<br />A generation like any other?<br />I see with my kids they are loyal to their parents. And to their employers as well. Loyal to friends, not sure. It’s a transitional stage so they flit from group to group.<br />
    29. 29. The concept of loyalty<br />
    30. 30. The concept of loyalty across generations<br />
    31. 31. The value proposition is different by generation…<br />
    32. 32. Do the forms of loyalty decline with age?<br />
    33. 33. Loyalty differences between men and women...<br />Bunch of blokes<br />I’m loyal to my husband because I wouldn’t want another man to see me naked at this age.<br />Man 1: Can you guys say your loyal to girls, apart from family members?<br />Man 2: Nope.<br />Man 3: No.<br />Man 4: But with girlfriends it’s a bit different. But it’s still bros before hoes!!<br />Woman in her 40’s<br />
    34. 34. No gender difference really…<br />
    35. 35. The economics of loyalty<br />
    36. 36. The “Where Our Loyalties Lie” industry survey<br /> We surveyed people about their attitudes and behaviours relative to six industries<br /><ul><li>Automotive
    37. 37. Banking
    38. 38. Insurance
    39. 39. Grocers
    40. 40. Mobile services
    41. 41. Wealth management</li></li></ul><li>Customer loyalty defined<br />
    42. 42.
    43. 43. I said I’d recommend… but will I?<br />
    44. 44. Are NPS and Actual Advocacy the same thing?<br />Mean number of recommendations<br />
    45. 45. Linking intent to advocacy to acquisition<br />Likelihood to recommend<br />(NPS)<br />Actual<br />recommendation<br />Acquisition<br />
    46. 46. Reasons for choosing your current car<br />Friends or family recommended it to me<br />Loyalty/rewards scheme<br />
    47. 47. Reasons for choosing your primary bank<br />Friends or family recommended it to me<br />Loyalty/rewards scheme<br />
    48. 48. Reasons for choosing your insurance provider<br />Friends or family recommended it to me<br />Loyalty/rewards scheme<br />
    49. 49. Reasons for choosing your primary grocery store<br />Loyalty/rewards scheme<br />Friends or family recommended it to me<br />
    50. 50. Reasons for choosing your mobile provider<br />Friends or family recommended it to me<br />Loyalty/rewards scheme<br />
    51. 51.
    52. 52. Customer retention is about Attitudesand Behaviour<br />Brandpreference<br />Attitudinal loyalty<br />Likelihood to remain a customer <br />(repurchase brand)<br />Share of wallet<br />Behavioural loyalty<br />Trend in recent behaviour<br />
    53. 53. We use our Ipsos Loyalty Index to understand customer retention<br /> Ipsos surveyed 10,000 customers of different brands in different sectors; and surveyed them again a year on. The variables that best predicted Loyalty were used to create the Ipsos Loyalty Index.<br />Only 24% of those who were classified as High Loyalshad changed providers 12 months later<br />Loyalty Index has strong ties to retention<br />
    54. 54. Shall we look at some of the results?<br />
    55. 55. Banking loyalty – Key Measures - 2009 vs 2011<br />Ipsos Loyalty Index figures are available in industry reports<br />
    56. 56. A company level view – Retail Banking<br />Ipsos Loyalty Index figures are available in industry reports<br />
    57. 57. A company level view – Grocery<br />Ipsos Loyalty Index figures are available in industry reports<br />
    58. 58. A company level view – Mobile<br />Ipsos Loyalty Index figures are available in industry reports<br />
    59. 59. A company level view – Insurance<br />Ipsos Loyalty Index figures are available in industry reports<br />
    60. 60. Going a level deeper – Experience Drivers - Grocery<br />
    61. 61. Going a level deeper – Brand Drivers - Grocery<br />
    62. 62.
    63. 63. Share of wallet models<br />Coles monthly spend<br />Grocery<br />Coles monthly spend<br />Wealth management<br />Customers with 1 product<br />Customers with 2+ products<br />
    64. 64. Applying this approach to your business<br />
    65. 65. Copyright Ipsos Loyalty © 2010<br />
    66. 66. The Ipsos Loyalty 2011 Industry Reports<br /><ul><li>1st half 2011 – 6 new industry loyalty studies: Automotive, Retail Banking, Insurance, Wealth Management, Groceries, and Mobile
    67. 67. The reports will cover:
    68. 68. Acquisition and advocacy
    69. 69. Loyalty
    70. 70. Customer satisfaction
    71. 71. Drivers of loyalty
    72. 72. Segmentation</li></li></ul><li>The Ipsos Mackay 2011 report program<br />MIND & MOOD PORTRAITS<br />ISSUE REPORTS<br />MIND & MOOD STUDIES<br />Mind & Mood April<br />Affluent Urbanites Feb<br />Being Australian June<br />Young Families Aug<br />How We Use Media Dec<br />Mind & Mood October<br />
    73. 73. Questions & Discussion<br />
    74. 74. Thank you<br />For more information contact:<br />Brett Tucker<br />+61 2 9900 5130 <br />brett.tucker@ipsos.com<br />Rebecca Huntley<br />+61 2 9900 5100 <br />rebecca.huntley@ipsos.com<br />