Customer loyalty sydney v3
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Customer loyalty sydney v3

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Discussion around how to improve the way you engage with your customers to increase wallet share and reduce churn. The twist is to take advantage of the window of opportunity that 2 seconds when the ...

Discussion around how to improve the way you engage with your customers to increase wallet share and reduce churn. The twist is to take advantage of the window of opportunity that 2 seconds when the customer is on your website, on a call, chatting with a teller.

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Customer loyalty sydney v3 Customer loyalty sydney v3 Presentation Transcript

  • Creating and Profiting from LoyaltyPresented by: Vincent Cotte, Regional Marketing Director, TIBCO Software Inc
  • How do youcut throughthe noise?
  • 21st Century Challenge for Marketers Run by DigitalA Real-Time World Natives Mobile Personalized Connected Social Interactive Emergence of Platforms Creating a tidal wave of data
  • AgendaThree Most Important Stepping Stones in the Journey to Loyalty –  Mark Johnston CEO, Loyalty 360 Building a Foundation for Loyalty –  Brett Hannath Director of Marketing, TIBCO MORNING TEA Customer Retention –  Dave Gooding Director Business Performance Services Advisory, KPMG Understanding Customers, Driving Loyalty –  Mark Lorion, Vice President Analytics, TIBCO
  • Lessons Learned: “Engagement,”“Voice of Customer,” and “Customer Experience Management” are the Three Most Important Stepping Stones in the Journey to Loyalty
  • What was Engagement / Loyalty? •  The first loyalty program was started in 1896. •  S&H Green Stamps •  It was the ultimate in engagement – apriori. •  What would you give for this level of engagement? •  Once issued 3 times as many stamps as the US Post office •  Once the LARGEST purchaser of consumer products in the world. •  Where is it today? Gone? •  Why? •  No longer engaging and did not evolve? Customers wanted change, did they listen? No! •  Loyalty and engagement are long term journeys / processes where the roads to get there are always changing.
  • Definitions – Taken from Dictionary.com Connotation:•  1. an act or instance of connoting.•  2. the associated or secondary meaning of a word or expression in addition to its explicit or primary meaning: A possible connotation of “home” is “a place of warmth, comfort, and affection.” Compare denotation. –  What is the connotation of loyalty: points, rewards, bribing participants, one way communication? Is it static? How is it changing? Has the connotation of loyalty always been positive? Is it changing? Denotation:•  1. the explicit or direct meaning or set of meanings of a word or expression, as distinguished from the ideas or meanings associated with it or suggested by it; the association or set of associations that a word usually elicits for most speakers of a language, as distinguished from those elicited for any individual speaker because of personal experience. Compare connotation. –  What is Loyalty? Loyalty is bigger: All of the products, services, technologies, processes, datasets and analysis that create, engender or enhance the “bigger picture idea of engagement, CRM and CEM.” Yet it is dynamic.
  • Definitions – Taken from Dictionary.com Loyalty:•  1. the state or quality of being loyal; faithfulness to commitments or obligations. What products or services qualify for this?•  2. faithful adherence to a sovereign, government, leader, cause, etc.•  3. an example or instance of faithfulness, adherence, or the like: a man with fierce loyalties. –  How many brands are you loyal too? Engagement:•  1. the act of engaging or the state of being engaged.•  2. an appointment or arrangement: a business engagement.•  3. a pledge; an obligation or agreement: All his time seems to be taken up with social engagements.•  4. employment, or a period or post of employment, especially in the performing arts: Her engagement at the nightclub will last five weeks. –  Is engagement the next big idea, or is it a piece of loyalty? You are hearing it EVERYWHERE.
  • What are Loyalty and Engagement?•  The question I ask.•  What would you rather have?•  A loyal spouse or an engaged spouse?•  What about both? Wouldn’t that be better.•  Again, how would you know?•  What would you do for both with your customers?•  Too much information, too little time, too many choices, too little satisfaction!
  • What They are Saying; What We are Hearing.•  “What should I do first; Foursquare, Groupon, update my Facebook page? What about Twitter?” CMO Fortune 500 B2B company•  “Loyalty is important, but we need to analyze the data, all data, in 2011, and then develop a comprehensive loyalty strategy in 2012.” – CMO ladies fashion retailer.•  “Mobile has promise, but it also has the highest ‘creepiness’ factor.” SVP Marketing top 10 US bank
  • New Media or New Channel?•  25% of companies surveyed in the COLLOQUY/DMA benchmarking study said they wanted to increase loyalty and engagement from existing customers, but 28% identified building brand awareness and 19% identified customer acquisition as their top goals. –  Should that be the goal? Creating a dialogue / discourse•  According to the 2010 COLLOQUY/DMA survey, two- thirds of respondents were unable to express what the most important measure of social media success would be. –  Shouldn’t this be defined? Too much change too fast.
  • New Media or New Channel?•  According to the 2010 Cone Consumer New Media Study, more than 80% of consumers say they follow only five or fewer brands online, whether through Facebook, Twitter or an RSS feed. –  How do you get to be one of those five?•  "They really only have room in their minds for less than five brands," says Mike Hollywood, Cone’s Director of New Media. "It’s a pretty exclusive club—if you think about the number of marketing messages a consumer receives daily—to be welcomed into that inner circle of brands.“ –  Is choice good or is there a point where choice is bad?
  • A Perspective  •  Americans are feeling less and less satisfied even as their number of choices go up.•  As Seth Godin said, “Small is the new Big.”•  Americans have a more difficult time finding shared experiences with 500+ cable channels – the water cooler effect has dried up, yet for those with shared experiences it can be more engaging.•  Yet with an average of 5 brands followed and a more “loyal” following for shows like Dexter, American Idol, NFL: engagement levels have increased•  Social scientists, added options should make us better off (if we are rational), it is logically compelling, but just not true.•  “Surprise and delight” are the keys – unexpected free shipping and calls about new product lines create engagement.•  Do more than what is expected and always apologize when you are wrong. Doctors who spend 5 more minutes and apologize are sued less.•  Listening to the VOC feedback from your customer created brand engagement. Try to enact the recommendations (Starbucks)•  Always remain committed, execute and delivery more than what you promise. Corporate culture drives customer engagement.
  • Information Overload•  Kroger (Woolworth’s) trip – 110 varieties of crackers (fat free, whole grain, multi-grain, what is the difference)•  90 types of soda / pop (depending on where your are from). Question – how many brands do you have in your house? Is there that much difference?•  190 types of beer (this is a small Kroger) – what is your sample set?•  145 types of chips (not including pretzels or other snacks)•  Typical mid sized grocery stores has 60,000 SKU’s and 20,000 new SKU’s come out each year.•  Trial has become the challenge? Loyalty? How? Easy. Listen•  Recently Rite Aid (Discount Drug Stores) cut 10,000 sku’s from there large format stores and sales went up? Less choice, more engagement and satisfaction. Consumers want more choice? No.
  • “Standard economics assumes that weare rational -- that we know all the pertinentinformation about our decisions …can calculate thevalue of the different options we face, and that we arecognitively unhindered in weighing the ramifications ofeach potential choice.But we are far less rationalin our decision making than our standard economictheory assumes. Our irrational behaviors are neither randomnor senseless -- they are systematic and predictable.” Dan Ariely Predictably Irrational Courtesy of Maritz
  • Courtesy of Maritz
  • Communica*on  for  Loyalty?   Behavior•  Shannon  and  Weaver  (Bell  Labs  in  the  1940’s)  argued  that  there   were  three  levels  of  problems  for  communica*on  within  this   theory.   –  The  technical  problem:  how  accurately  can  the  message  be   transmiHed?     –  The  seman*c  problem:  how  precisely  is  the  meaning  conveyed?     Engagement –  The  effec*veness  problem:  how  effec*vely  does  the  received  meaning   affect  behavior?  (Is  it  measureable  was  not  even  ques*oned?)  •  Daniel  Chandler  cri*ques  the  transmission  model  by  sta*ng:   –  It  assumes  communicators  are  isolated  individuals.     –  No  allowance  for  differing  purposes.     –  No  allowance  for  differing  interpreta*ons.     –  No  allowance  for  unequal  power  rela*ons.     –  No  allowance  for  situa*onal  contexts.     Understanding PeopleCourtesy of Maritz
  • The New Age of Media•  New media users won’t hesitate to stop following companies via new media if they aren’t satisfied with their experiences. Reasons include•  58% The company or brand acted irresponsibly either toward me or its other consumers, and I am no longer a fan of it•  58% The company or brand over-communicates with me (e.g., I get too many messages from it, there is too much content to sift through, it sends out spam)•  53% The content the company or brand provides is not relevant to me•  36% The company or brand doesn’t communicate with or engage me enough (e.g., it doesn’t respond to my comments, the content is seldom refreshed, it doesn’t provide me with incentives, its content is boring)•  28%The company or brand censors the content I, or other consumers, post on its new media channels (e.g., it deletes negative wall posts or blog comments)•  Source 2010 Cone Consumer New Media Survey
  • The New Age of Media – Participants Want?•  When deciding whether to engage with companies or brands via new media, users look for the following types of company/brand interactions: –  77% - Offer me incentives (e.g., free products or services, coupons, discounts) –  46% - Solve my problems/provide product or service information (e.g., customer service) –  39% - Solicit my feedback on products and services –  28% -Entertain me (e.g., provide access to premium content) –  26% - Develop new ways for me to interact with their brands (e.g., widgets, mobile applications, online games, contests) –  21% - Market to me (e.g., banner ads, targeted ads)•  Source 2010 Cone Consumer New Media Survey
  • The New Age of Media – Participants Want?•  Companies and brands can benefit from engaging with new media users:•  I am more aware of a company or brand if I can interact with it in a new media environment – 63%•  I am more likely to share information about a company or brand across my own new media channels if I can interact with it in a new media environment – 62%•  I feel a stronger connection with a brand if I can interact with it in a new media environment -61%•  I feel better served by companies when I can have a conversation with them in a new media environment -60%•  I am more likely to purchase a company’s or brand’s products or services if I can interact with it in a new media environment -59%•  If I follow a company or brand on one of its new media channels, I am more likely to follow the company or brand on its other new media channels – 59%•  Source 2010 Cone Consumer New Media Survey
  • Where We Were – Where Are We?Courtesy of RewardStream
  • Consumer 1.0 & 2.0 1.0   2.0  Courtesy of RewardStream
  • Consumer Purchase Decisions 1.0   2.0   Access to digital Information Trust in brand-sponsored advertising Comfort buying online Trust in friends, family, trusted connections Rely on own experience to make decisions  Courtesy of RewardStream  
  • More  than  72%  of  women   decide  what  products  or  services   to  buy  by  seeking  some  kind  of  42% of Millennials make help,  but  are  3X  more  likely  to  purchase decisions based seek  advice  from  family  and   on recommendations friends  than  to  go  online.   from friends. Harbinger  Women  and  Word-­‐of-­‐Mouth   Study  9/2010 Confiden*al  &  Proprietary  I“Millennial  Inc.  What  your  company  will  look  like   Graphic  from  nforma*on     when  Millennial’s  call  the  shots”  by  Mr.  Youth  and  Intrepid  
  • Where is Loyalty Going? •  Deep analysis and expansion of loyalty platforms •  A defined and prolonged shift from acquisition to engagement, customer experience, CRM, retention and LOYALTY •  A commitment to operations - Focusing on Customer •  Retail organizations’ appetite for data/information exponentially increasing •  A need for new models that incorporate and make actionable all data sources. •  Enterprise Loyalty efforts now taking center stage •  Establishing a “genuine relationship” with customers now more important than ever •  Loyalty now impacts the whole C-Suite
  • The Loyalty Challenge How do we identify our best customers and create an ongoing dialogue that creates engagement Different people have different needs and expectations – treat them accordingly How do we better understand their needs? Only by listening and engaging in a pro-active dialogue. How do you create the same level of loyalty and engagement to your product as to you sports team. How do we build relationships with our mavens and connectors? We need to leverage them and It needs to be beneficial to them and your organization.
  • Join Us to answer these questions •  Loyalty 360 – www.loyalty360.org •  markjohnson@loyalty360.org •  513-290-5147
  • Building a Foundation for LoyaltyPresented by: Brett Hannath Director of Marketing, TIBCO Software Inc
  • RFMA
  • LOYALTY
  • Compelling results across a wide range of customersMore sales per retained 30-100% higher revenuecustomer per customerMore retained customers 3-15% higher retention rate 10-60% lower promotionalLess promotional spend spend with existing customers 5-50% more interactions perMore engaged customers customerMore customer frequency 10-40% more visitsMore spend per visit 3-15% higher average order value
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  • 1-800-Contacts Member Ali Baba VIP Customer Card Applebees Email1-800-Flowers Fresh Rewards Alloy Newsletter Appleseeds Rewards Credit Card1-800-flowers .com Member AllPhones Webclub Aqua Shop Loyalty Membership1-800-petmeds Member Alpine Sports Store Card Aquascutum Registration6pm.com Promotions Amazon.com Daily Deals Aquila Select7 For All Mankind Member Amcal Club Arbor Salon & Spa Loyalty Club7-Eleven Visa Card American Airlines - TRAAVEL Perks Arbys Extras99 Cents Only Email American Airlines Aadvantage Executive Platinum ARC - Show Your Card & Save99 Restaurants eClub American Airlines Aadvantage Gold Arden B EmailA Pea In The Pod Email American Airlines AAdvantage (Base) Arden B. B. RewardedA&P Supermarket Bonus Savings Club American Airlines AAdvantage - Classic Ark Restaurants M*CardA&P Supermarket Live Better Wellness Club American Airlines Aadvantage Platinum Armani Exchange Insider AccountA. T. Cross Email American Apparel Newsletter Art Select Special OffersA.C. Moore Store Specials American Eagle AE REWARDS Artful Home Emaila365 Offers American Express ASCENT "add on" - Australia ASDA Reward Credit CardAAA - Show Your Card & Save American Express Blue Sky Credit Card - Australia AT&T Wireless Online Account ManagementAARP Membership American Express Business Accelerator Card Auntie Annes Pretzel PerksABC Shop Rewards American Express Business Card Austin Reed NewsletterAbercrombie & Fitch Email American Express Card - Australia Australian Ballet Subscriber CardAbode eNewsletter American Express Gold Business Card Australian Geographic eNewsletter 1866Absolutely Gorgeous VIP American Express Gold Card - Australia Australian Geographic SocietyAcademy Email Updates American Express Gold Choices Credit Card - Australia Autograph VIPAcademy Rewards Visa Platinum American Express Gold SkyMiles Card AutoZone RewardsAccor Advantage Plus Asia-Pacific American Express Platinum Business Card Avenue CreditAccor A|Club American Express Platinum Card - Australia Avenue Email SignupAccor A|Club Gold American Express Platinum Credit Card - Australia Avon A-ListAccor A|Club Platinum American Express Platinum SkyMiles Card Avon Email SignupAccor A|Club Silver American Express Qantas Corporate Card Axis eNewsAce Hardware Email American Express Rewards CHOICES "add on" - Australia Azamara Cruises Captains Club ClassicAce Hardware Rewards American Express Selects - Australia Azamara Cruises Captains Club EliteACLens.com American Express Velocity Gold Card Azamara Cruises Captains Club SelectActiva Email AMF Roller Babar Cafe & Bar Frequent Coffee CardActive Skin Active Points Anaconda Adventure Club Baby Boots EmailAdairs Linen Lovers Club Anchor Blue Email Baby Center Store OffersAdams Offers Angus and Robertson A&R Rewards Baby Express VIP ClubAdidas Email Ann Harvey Offers Baby Giftbox RewardsAdobe EmailAdore Beauty Email Ann Taylor Email Source: Perkler Savings Baby Universe Coupon Ann Taylor LOFT Style Rewards BabyBuds BuddyAdorne Me Rewards Annas Linens Email Signup Babyco Loyalty RewardsADT Premium ANZ Balance Visa Rewards Back to Basics Toys Special OffersAdvance Auto Parts Email ANZ eDine "add-on" Backcountry EmailAeropostale Email List ANZ First Visa Bad Backs EmailAerosoles Email ANZ Frequent Flyer American Express Bagels Cafe Frequent Coffee CardAesop Mailing List ANZ Frequent Flyer Gold American Express Bagsbuy.com Frequent ShopperAETV Email ANZ Frequent Flyer Platinum American Express Bahama Breeze Island InsidersAFL Rewards ANZ Frequent Flyer Visa Baja Fresh eClubAirMiles ANZ Frequent Flyer Visa Gold Bakers B CardAlbertsons Preferred Savings Card ANZ Frequent Flyer Visa Platinum Bakers Delight Reward YourselfAldi eNewsletter ANZ Gold Visa Bakers Footwear B CardAldi eNewsletter USA ANZ Rewards American Express Bakpakka ClubAldo Email ANZ Rewards American Express Platinum Balenciaga EmailAlex & Co Newsletter ANZ Rewards Visa Banana Republic BananaCardAlexander McQueen Email ANZ Rewards Visa Platinum Banana Republic EmailAlfresco Emporium Email ANZ Smarty Pig Banana Republic Visa CardAli Baba Rewards Club Apple Store Juniper Visa Card Bank of Queensland Blue No Annual Fee Visa
  • 1-800-Contacts Member Ali Baba VIP Customer Card Applebees Email1-800-Flowers Fresh Rewards Alloy Newsletter Appleseeds Rewards Credit Card1-800-flowers .com Member AllPhones Webclub Aqua Shop Loyalty Membership1-800-petmeds Member Alpine Sports Store Card Aquascutum Registration6pm.com Promotions Amazon.com Daily Deals Aquila Select7 For All Mankind Member Amcal Club Arbor Salon & Spa Loyalty Club7-Eleven Visa Card American Airlines - TRAAVEL Perks Arbys Extras99 Cents Only Email American Airlines Aadvantage Executive Platinum ARC - Show Your Card & Save99 Restaurants eClub American Airlines Aadvantage Gold Arden B EmailA Pea In The Pod Email American Airlines AAdvantage (Base) Arden B. B. RewardedA&P Supermarket Bonus Savings Club American Airlines AAdvantage - Classic Ark Restaurants M*CardA&P Supermarket Live Better Wellness Club American Airlines Aadvantage Platinum Armani Exchange Insider AccountA. T. Cross Email American Apparel Newsletter Art Select Special OffersA.C. Moore Store Specials American Eagle AE REWARDS Artful Home Emaila365 Offers American Express ASCENT "add on" - Australia ASDA Reward Credit CardAAA - Show Your Card & Save American Express Blue Sky Credit Card - Australia AT&T Wireless Online Account ManagementAARP Membership American Express Business Accelerator Card Auntie Annes Pretzel PerksABC Shop Rewards American Express Business Card Austin Reed NewsletterAbercrombie & Fitch Email American Express Card - Australia Australian Ballet Subscriber CardAbode eNewsletter American Express Gold Business Card Australian Geographic eNewsletter 280,000Absolutely Gorgeous VIP American Express Gold Card - Australia Australian Geographic SocietyAcademy Email Updates American Express Gold Choices Credit Card - Australia Autograph VIPAcademy Rewards Visa Platinum American Express Gold SkyMiles Card AutoZone RewardsAccor Advantage Plus Asia-Pacific American Express Platinum Business Card Avenue CreditAccor A|Club American Express Platinum Card - Australia Avenue Email SignupAccor A|Club Gold American Express Platinum Credit Card - Australia Avon A-ListAccor A|Club Platinum American Express Platinum SkyMiles Card Avon Email SignupAccor A|Club Silver American Express Qantas Corporate Card Axis eNewsAce Hardware Email American Express Rewards CHOICES "add on" - Australia Azamara Cruises Captains Club ClassicAce Hardware Rewards American Express Selects - Australia Azamara Cruises Captains Club EliteACLens.com American Express Velocity Gold Card Azamara Cruises Captains Club SelectActiva Email AMF Roller Babar Cafe & Bar Frequent Coffee CardActive Skin Active Points Anaconda Adventure Club Baby Boots EmailAdairs Linen Lovers Club Anchor Blue Email Baby Center Store OffersAdams Offers Angus and Robertson A&R Rewards Baby Express VIP ClubAdidas Email Ann Harvey Offers Baby Giftbox RewardsAdobe Email Ann Taylor Email Baby Universe Coupon Source: Perkler SavingsAdore Beauty Email Ann Taylor LOFT Style Rewards BabyBuds BuddyAdorne Me Rewards Annas Linens Email Signup Babyco Loyalty RewardsADT Premium ANZ Balance Visa Rewards Back to Basics Toys Special OffersAdvance Auto Parts Email ANZ eDine "add-on" Backcountry EmailAeropostale Email List ANZ First Visa Bad Backs EmailAerosoles Email ANZ Frequent Flyer American Express Bagels Cafe Frequent Coffee CardAesop Mailing List ANZ Frequent Flyer Gold American Express Bagsbuy.com Frequent ShopperAETV Email ANZ Frequent Flyer Platinum American Express Bahama Breeze Island InsidersAFL Rewards ANZ Frequent Flyer Visa Baja Fresh eClubAirMiles ANZ Frequent Flyer Visa Gold Bakers B CardAlbertsons Preferred Savings Card ANZ Frequent Flyer Visa Platinum Bakers Delight Reward YourselfAldi eNewsletter ANZ Gold Visa Bakers Footwear B CardAldi eNewsletter USA ANZ Rewards American Express Bakpakka ClubAldo Email ANZ Rewards American Express Platinum Balenciaga EmailAlex & Co Newsletter ANZ Rewards Visa Banana Republic BananaCardAlexander McQueen Email ANZ Rewards Visa Platinum Banana Republic EmailAlfresco Emporium Email ANZ Smarty Pig Banana Republic Visa CardAli Baba Rewards Club Apple Store Juniper Visa Card Bank of Queensland Blue No Annual Fee Visa
  • 1-800-Contacts Member Ali Baba VIP Customer Card Applebees Email1-800-Flowers Fresh Rewards Alloy Newsletter Appleseeds Rewards Credit Card1-800-flowers .com Member AllPhones Webclub Aqua Shop Loyalty Membership1-800-petmeds Member Alpine Sports Store Card Aquascutum Registration6pm.com Promotions Amazon.com Daily Deals Aquila Select7 For All Mankind Member Amcal Club Arbor Salon & Spa Loyalty Club7-Eleven Visa Card American Airlines - TRAAVEL Perks Arbys Extras99 Cents Only Email American Airlines Aadvantage Executive Platinum ARC - Show Your Card & Save99 Restaurants eClub American Airlines Aadvantage Gold Arden B EmailA Pea In The Pod Email American Airlines AAdvantage (Base) Arden B. B. RewardedA&P Supermarket Bonus Savings Club American Airlines AAdvantage - Classic Ark Restaurants M*CardA&P Supermarket Live Better Wellness Club American Airlines Aadvantage Platinum Armani Exchange Insider AccountA. T. Cross Email American Apparel Newsletter Art Select Special OffersA.C. Moore Store Specials American Eagle AE REWARDS Artful Home Emaila365 Offers American Express ASCENT "add on" - Australia ASDA Reward Credit CardAAA - Show Your Card & Save American Express Blue Sky Credit Card - Australia AT&T Wireless Online Account ManagementAARP Membership American Express Business Accelerator Card Auntie Annes Pretzel PerksABC Shop Rewards American Express Business Card Austin Reed NewsletterAbercrombie & Fitch Email American Express Card - Australia Australian Ballet Subscriber CardAbode eNewsletter American Express Gold Business Card Australian Geographic eNewsletter 18+Absolutely Gorgeous VIP American Express Gold Card - Australia Australian Geographic SocietyAcademy Email Updates American Express Gold Choices Credit Card - Australia Autograph VIPAcademy Rewards Visa Platinum American Express Gold SkyMiles Card AutoZone RewardsAccor Advantage Plus Asia-Pacific American Express Platinum Business Card Avenue CreditAccor A|Club American Express Platinum Card - Australia Avenue Email SignupAccor A|Club Gold American Express Platinum Credit Card - Australia Avon A-ListAccor A|Club Platinum American Express Platinum SkyMiles Card Avon Email SignupAccor A|Club Silver American Express Qantas Corporate Card Axis eNewsAce Hardware Email American Express Rewards CHOICES "add on" - Australia Azamara Cruises Captains Club ClassicAce Hardware Rewards American Express Selects - Australia Azamara Cruises Captains Club EliteACLens.com American Express Velocity Gold Card Azamara Cruises Captains Club SelectActiva Email AMF Roller Babar Cafe & Bar Frequent Coffee CardActive Skin Active Points Anaconda Adventure Club Baby Boots EmailAdairs Linen Lovers Club Anchor Blue Email Baby Center Store OffersAdams Offers Angus and Robertson A&R Rewards Baby Express VIP ClubAdidas Email Ann Harvey Offers Baby Giftbox RewardsAdobe Email Ann Taylor Email Source: Colloquy Savings Baby Universe CouponAdore Beauty Email Ann Taylor LOFT Style Rewards BabyBuds BuddyAdorne Me Rewards Annas Linens Email Signup Babyco Loyalty RewardsADT Premium ANZ Balance Visa Rewards Back to Basics Toys Special OffersAdvance Auto Parts Email ANZ eDine "add-on" Backcountry EmailAeropostale Email List ANZ First Visa Bad Backs EmailAerosoles Email ANZ Frequent Flyer American Express Bagels Cafe Frequent Coffee CardAesop Mailing List ANZ Frequent Flyer Gold American Express Bagsbuy.com Frequent ShopperAETV Email ANZ Frequent Flyer Platinum American Express Bahama Breeze Island InsidersAFL Rewards ANZ Frequent Flyer Visa Baja Fresh eClubAirMiles ANZ Frequent Flyer Visa Gold Bakers B CardAlbertsons Preferred Savings Card ANZ Frequent Flyer Visa Platinum Bakers Delight Reward YourselfAldi eNewsletter ANZ Gold Visa Bakers Footwear B CardAldi eNewsletter USA ANZ Rewards American Express Bakpakka ClubAldo Email ANZ Rewards American Express Platinum Balenciaga EmailAlex & Co Newsletter ANZ Rewards Visa Banana Republic BananaCardAlexander McQueen Email ANZ Rewards Visa Platinum Banana Republic EmailAlfresco Emporium Email ANZ Smarty Pig Banana Republic Visa CardAli Baba Rewards Club Apple Store Juniper Visa Card Bank of Queensland Blue No Annual Fee Visa
  • 1-800-Contacts Member Ali Baba VIP Customer Card Applebees Email1-800-Flowers Fresh Rewards Alloy Newsletter Appleseeds Rewards Credit Card1-800-flowers .com Member AllPhones Webclub Aqua Shop Loyalty Membership1-800-petmeds Member Alpine Sports Store Card Aquascutum Registration6pm.com Promotions Amazon.com Daily Deals Aquila Select7 For All Mankind Member Amcal Club Arbor Salon & Spa Loyalty Club7-Eleven Visa Card American Airlines - TRAAVEL Perks Arbys Extras99 Cents Only Email American Airlines Aadvantage Executive Platinum ARC - Show Your Card & Save99 Restaurants eClub American Airlines Aadvantage Gold Arden B EmailA Pea In The Pod Email American Airlines AAdvantage (Base) Arden B. B. RewardedA&P Supermarket Bonus Savings Club American Airlines AAdvantage - Classic Ark Restaurants M*CardA&P Supermarket Live Better Wellness Club American Airlines Aadvantage Platinum Armani Exchange Insider AccountA. T. Cross Email American Apparel Newsletter Art Select Special OffersA.C. Moore Store Specials American Eagle AE REWARDS Artful Home Emaila365 Offers American Express ASCENT "add on" - Australia ASDA Reward Credit CardAAA - Show Your Card & Save American Express Blue Sky Credit Card - Australia AT&T Wireless Online Account ManagementAARP Membership American Express Business Accelerator Card Auntie Annes Pretzel PerksABC Shop Rewards American Express Business Card Austin Reed NewsletterAbercrombie & Fitch Email American Express Card - Australia Australian Ballet Subscriber CardAbode eNewsletter American Express Gold Business Card Australian Geographic eNewsletter 8+Absolutely Gorgeous VIP American Express Gold Card - Australia Australian Geographic SocietyAcademy Email Updates American Express Gold Choices Credit Card - Australia Autograph VIPAcademy Rewards Visa Platinum American Express Gold SkyMiles Card AutoZone RewardsAccor Advantage Plus Asia-Pacific American Express Platinum Business Card Avenue CreditAccor A|Club American Express Platinum Card - Australia Avenue Email SignupAccor A|Club Gold American Express Platinum Credit Card - Australia Avon A-ListAccor A|Club Platinum American Express Platinum SkyMiles Card Avon Email SignupAccor A|Club Silver American Express Qantas Corporate Card Axis eNewsAce Hardware Email American Express Rewards CHOICES "add on" - Australia Azamara Cruises Captains Club ClassicAce Hardware Rewards American Express Selects - Australia Azamara Cruises Captains Club EliteACLens.com American Express Velocity Gold Card Azamara Cruises Captains Club SelectActiva Email AMF Roller Babar Cafe & Bar Frequent Coffee CardActive Skin Active Points Anaconda Adventure Club Baby Boots EmailAdairs Linen Lovers Club Anchor Blue Email Baby Center Store OffersAdams Offers Angus and Robertson A&R Rewards Baby Express VIP ClubAdidas Email Ann Harvey Offers Baby Giftbox RewardsAdobe Email Ann Taylor Email Source: Colloquy Savings Baby Universe CouponAdore Beauty Email Ann Taylor LOFT Style Rewards BabyBuds BuddyAdorne Me Rewards Annas Linens Email Signup Babyco Loyalty RewardsADT Premium ANZ Balance Visa Rewards Back to Basics Toys Special OffersAdvance Auto Parts Email ANZ eDine "add-on" Backcountry EmailAeropostale Email List ANZ First Visa Bad Backs EmailAerosoles Email ANZ Frequent Flyer American Express Bagels Cafe Frequent Coffee CardAesop Mailing List ANZ Frequent Flyer Gold American Express Bagsbuy.com Frequent ShopperAETV Email ANZ Frequent Flyer Platinum American Express Bahama Breeze Island InsidersAFL Rewards ANZ Frequent Flyer Visa Baja Fresh eClubAirMiles ANZ Frequent Flyer Visa Gold Bakers B CardAlbertsons Preferred Savings Card ANZ Frequent Flyer Visa Platinum Bakers Delight Reward YourselfAldi eNewsletter ANZ Gold Visa Bakers Footwear B CardAldi eNewsletter USA ANZ Rewards American Express Bakpakka ClubAldo Email ANZ Rewards American Express Platinum Balenciaga EmailAlex & Co Newsletter ANZ Rewards Visa Banana Republic BananaCardAlexander McQueen Email ANZ Rewards Visa Platinum Banana Republic EmailAlfresco Emporium Email ANZ Smarty Pig Banana Republic Visa CardAli Baba Rewards Club Apple Store Juniper Visa Card Bank of Queensland Blue No Annual Fee Visa
  • 4 Foundations of LoyaltyUnderstand Engage LOYALTYReward Retain
  • Understand
  • Understanding the Customer Who they are What they do•  Single View •  Spending Pattern•  Product Ownership •  Social Behaviour•  Relationships •  Influence and Advocacy
  • Data Matching •  Finding, matching, and linking data is hard •  Data is never “perfect” – and never can be First Last DOB Address City State Height Hair color etcRec 1 Jason Fitzgerlad 12/1/1971 200 Classen St. Paul MN 5’10” Brown 2000 NRec 2 Fitzgerland Jasoz Saint Paul MN 5-11 Brawn Classon Matching Engine Result(0.80) 0.90 0.82 -1 0.87 0.85 1.0 0.95 1.0 Machine Learning Engine Result Overall score / classification 0.93 Intelligent combination of field scores
  • California Department of Public Health Prenatal Genetic Screening Program•  Matching Platform evaluation and implementation•  CDPH benchmarked TIBCO and a competitor –  After 3 weeks competitor reached 79% accuracy –  After 1 day TIBCO topped 97%•  Two phase project undertaken•  First - cleaning the CDHP database (get clean) –  5.5 million record reference database of at risk women –  2.3 million duplicate records identified - representing 1 million unique women –  1.3 million duplicates eliminated – leaving reference database of 4.2 million unique women•  Then – automate matching of incoming test results (stay clean) –  Before TIBCO – 65% automated match rate –  After TIBCO – 95%+ automated match rate•  Overall results –  Greatly improved levels of automation –  Earlier identification/treatment/counseling for possible problems –  Bottom line - Better quality care for at risk women and their unborn
  • Data Quality Fix, Standardize and Enrich Your Data Source customer data Source Policy Name Address 1 Address 2 City/State Date of Birth SSN Description 1 Term Life Cathy Parks 101 Main Newton, Ma 12/08/1959 020-51-3421 20 Yr Term 2 Annuity C. Parks Parks Family Trst 101 N. Main St Newtown, MA. 12/8/59 020-15-3421 10 Yr Fxd 3 Auto Carl Parks Parks & Assoc. 101 Main Ave. Newton, MA June 11, 1958 021-24-8745 Commercial 3 Auto Kathy Parks 110 Main Street Newton, Mass December 8, 1959 020-51-3421 Personal Corrected data Corrected dataPolicy Holder Policies Policy Holder PoliciesCustomer # 126072 20 Year Term Life Customer #126941 Commercial AutoMs. Cathy Parks 10 Year Fixed Annuity Mr. Carl ParksParks Family Trust Personal Auto Parks & Associates Household101 N. Main St. Link 101 N. Main St.Newton, MA 02106 Newton, MA 02106DOB 12/08/1959 DOB 6/11/1958SSN 020-51-3421 SSN 021-24-8745
  • Single View of the Customer
  • Loyalty Through IntimacyChallenges  •  Independent,  autonomous  sales  and  marke*ng  teams   Tractor Automotive•  Data  collected  at  mul*ple  points  by  franchisees  /  dealers  •  Different  levels  of  data  maturity,  mul*ple  data  formats   Real Estate IT•  Protec*ve  in  sharing  own  data  •  Mul*ple  data  versions  for  the  same  customer   Travel FinanceSolu*on    •  Single  common  customer  database  •  Single  version  of  truth  •  Standardized  data  format  mapped  to  individual  CRM  systems   Travel Automotive Tractor IT Finance Real EstateBenefits  •  Customer  in*macy  through  a  comprehensive  view  of  customer  behavior  across  LOBs  •  Increased  opportuni*es  through  up-­‐selling  and  cross-­‐selling  customers  in  real  *me  •  BeHer  customer  service  through  proac*ve    no*fica*on  and  alerts  •  Analy*cal  tool  to  segment  data  •  Transforma*on  to  a  customer-­‐centric  organiza*on  through  the  use  of  customer  lifecycle  knowledge  for   product  porcolio  planning  
  • Offer Suggestions
  • Offer Optimization
  • Engage
  • Engaging the Customer Be relevant Be in the moment•  Apply understanding •  Interact in Real-Time•  Offer “before they know” •  Across all channels•  Apply context •  Be social
  • How does Citibankknow to make offersappropriate to what’sgoing on in your life?
  • Loyalty Marketing and Game Mechanics
  • Gamification of Loyalty•  >100% increase in social sharing•  1/3 increase in commenting•  1/3 increase in pages read
  • More Information
  • Reward
  • Real-time and Long-term Relationship Marketing Increase sales Higher advocacy Relationship Management Cultivating the primary relationship over the long term Reduced promotional marketing Incremental brands and share Contextual Offer Management Repeatedly exceeding expectations in the moment Deeper consumer view and richer offer stream Proactively manage negative events
  • •  The leading provider of loyalty and customer retention technology solutions•  Extensive client base in retail, travel, telecom, automotive and consumer brands•  SaaS delivery model provides superior access, scalability and performance•  Deep program design and management experience
  • Integration and Campaign Email and Reporting and Data Collection Management Microsites Loyalty Management Social & Mobile Analytic Services Real-time Dynamic Triggered Point Social authentication connectivity segmentation messaging programs wallet Deep analytics Response Tiers and Interaction trackingCPG code redemption Targeting and profiling measurement Affinity clubs and rewarding ROI modeling Point-of-sale Deep personalization Reward catalog Single view data mapping List management and dynamic content and fulfillment Smartphone apps of the customer Social network Integrated offers Widgets and Standard and bridge and promotions Hosted websites Offers and promotions FB apps ad hoc reporting Over 180 million customer records managed 9M offers delivered a week
  • Add/Modify Consumer Offers in 5 Minutes 1. Define an Event 2. Define Eligibility3. Define Qualification & Award 4. Approve and Deploy
  • •  25% more revenue per customer from members vs. non-members•  20% of members don’t live in cities served by the airline•  40% membership growth in one year
  • 10% sell through improvement in one month
  • 5M members in 4 years 40% higher conversion rates22% lift in 2-year retention rate
  • In-store collection of customer preferencesClienteling for a personalized customer experience
  • Exceeded expectations for enrollment and participation 9:1 NPS of Thrivent Choice vs. Thrivent Financial
  • •  Tripled enrollment expectations•  Huge increase in referrals
  • •  4.2 billion consumers•  180 countries•  50 leadership brands•  All channels
  • Sample of Loyalty Lab Partners and Affiliated Technologies Inbound Segmentation Data Flows Inputs Recognition, Motivators Outbound Engagement & RewardsOver 50 agency and reward partners and integrated technologies
  • Marketers Desktop Email Web Transactions Rational & Mobile Emotional Engagement & Motivation Deep Data Engines Social Aggregation Data Model & Real-Time Configured Email, Social &Mobile Interactions & Batch Business Rules Community Direct Mail Reporting, Analysis & Insights Response Tracking Customers
  • Retain
  • Customer Retention Prevent Problems Identify Risk Before They Occur•  What causes CHURN? •  Automated Response•  Small Window for Correction •  Proactive Intervention
  • Reliance Communications•  Mumbai, India HQ•  128M Subscribers –  Growing 2M+ subscribers / month•  1.9 billion calls / day –  12 million value-added service events / day•  Personalized promotions reach customers within seconds of their completing a mobile recharge•  Re-charge reward of MP3 download, Extra Talk-Time for Free SMS
  • 4 Foundations of LoyaltyUnderstand Engage LOYALTYReward Retain
  • Some Recommended Reading
  • MORNING TEA 15 minutes
  • Customer retention A view from the balcony 27 July 2011 Dave Gooding
  • Agenda 1.  Loyalty economic framework 2.  Some definitions 3.  The leaky bucket 4.  Some real numbers 5.  12 key lessons© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of 82KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
  • Loyalty Economic Framework Roll-Overs Tenure Stay Longer Buy More Cross / Up Sales Recommend Feedback Provide Recommend / Valuable to Others Feedback Detract Complaints All significantly impact business value …© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of 83KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
  • Persistency and Retention Persistency - Products not retained for expected term •  % of policies remaining in force after 1,2,3 or 4+ years •  % of assets transferring out •  % of premiums being paid up •  Variance of actual to expected Retention - Retention of Customers •  Same product / increments •  Replacement products •  Same lifestage •  Next lifestage •  Rollovers© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of 84KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
  • The Leaky Bucket $ $$$ New Business M id-Te rm $ $ $ $ $ $© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of 85KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
  • Some Numbers £70m £25m + £9m 56% and 9% 5X 0 51%, 15% and 4%© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of 86KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
  • Size of the Problem£70m … value of business exiting in one year above “plan”£70m … value of business lost in excess of new business written$0 … difference between value of new and value lost business£25m + £9m … the value of business going off in one year and impact on NPV of new business in year 25X … amount by which lost assets exceed contractual payments10% and 50% … share of customer base actively served by a planner and estimated share of assets managed by the company77% … proportion of lost business controlled by <1/3 of the company’s advisers© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of 87KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
  • Size of the Prize56% and 9% … proportion of previously lost premiums saved in 1st month of save centre operations and of premium saved from explicit cancellation requests$18.9m … value of premiums saved in 2 years of save business operation$68.4m … the value of funds saved in the first 2 years of operation$2m, $9m, $17m … annual, 5 and 10yr NPV of 1% improvement in FUM retained1.3% and $5m … annual additional profit from improving lapse rates by this amount (approx 10%)51% and 15% … proportions of total sales and lapses generated by just 4% of a company’s adviser base© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of 88KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
  • What have we learned?•  Operating models focus on new sales / customers•  We have trained customers to be deal driven•  Retention is everyone’s responsibility•  Functions are not aligned and often siloed•  Not understanding customer value is dangerous•  Prevention is best•  Understanding root causes is key – complaints are valuable•  Look hard at business policies•  Broken processes and poor communications are major drivers•  Facts and useable data beat inspired guesswork•  Price is not the same as value•  Focus on customer retention rather than product© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of 89KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
  • Thank you for staying with me!© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliatedwith KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International).Liability limited by a scheme approved under Professional Standards Legislation.
  • Understanding Customers, Driving Loyalty Presented by: Mark Lorion Vice President of Analytics, TIBCO Software Inc© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of 91KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
  • Availability  >  Understanding   Understand   Engage               LOYALTY               Reward   Retain  
  • So  where  do  you  begin?   There  are  known  knowns;   there  are  things  we  know  we  know.     We  also  know  there  are  known  unknowns;   that  is  to  say  we  know  there  are  some  things  we  do  not  know.     But  there  are  also  unknown  unknowns     –  the  ones  we  dont  know  we  dont  know.     Former  United  States  Secretary  of  Defense  Donald  Rumsfeld      
  • Unlock Insights From any data source… ü Data visualization ü Ad hoc data discovery ü Analytic dashboards ü Predictive analytics & modeling Econ Pricing Customer Social Sentiment Customer Media Service Loyalty ProgramsCRM
  • Unlock InsightsFor any application… ü  Market  Segmenta*on   ü  Churn  Analysis   ü  Customer  Sen*ment   ü  Campaign  &  Program   Planning   ü  Up-­‐sell  Cross-­‐sell   ü  Brand  &  Product   Performance   ü  Product  Op*miza*on   ü  Forecast  &  Pipeline   AHainment   ü  Sales  Rep  Produc*vity   ü  Customer  Cloning   ü Ad  hoc  anything!    
  • Helping today’s top organizationsUnlock Opportunities.“…ROI of approximately 200-300%...”“ I don’t trust data unless I see it in Spotfire.”“ We’re no longer flying blind…Spotfire has performedbeyond our wildest expectations…”
  • Demo  à  Case  Study  
  • Large  Retailer  -­‐  Challenges  •  Increase  market  basket  through  targeted  upsell  campaigns  •  Encourage  shoppers  to  patronize  departments  other  than   their  “home”  department  •  Drive  engagement  across  channels,  in  store,  online,  catalog  •  U*lize  shopper  behavior  and  append  demographic  data  to   personalize  offers  
  •   WHAT   WHO  ?       WHAT  ?       ELSE  ?  •  Iden*fy  Customer  with  High   Propensity  to  Spend  but  Low   Spend  in  Various  Product   Categories    •  Clone  “Perfect  Customers”    •  Predic*ve  Analysis  Based  on   Buying  Behavior,  Spend   Demographics  for  each  Product   Category      
  • Who  to  target?  10 0  
  • Real-­‐*me  Predic*ve  Customer  Offers,  Op*mizing  Cross-­‐Sell  and   Customer  Experience     WHAT   WHO  ?       WHAT  ?       ELSE  ?  •  Iden*fy  Customer  with  High   •  For  Targeted  Customers,  Iden*fy   •  Iden*fy  Product  with  Strong   Propensity  to  Spend  but  Low   Items  Most  Likely  to  Purchase   Associa*ons  Based  on  Buying   Spend  in  Various  Product   Based  on  Historical  and  Predicted   Behavior  and  Spend  Demographics   Categories   Buying  Behavior  &  Demographics       •  Product  Associa*on  Analysis  •  Clone  “Perfect  Customers”   •  Or,  Start  with  Business  Unit       Objec*ves  and  Iden*fy  Customer   •  Create  Offers  that  Increase  Spend  •  Predic*ve  Analysis  Based  on   to  Target  with  Offers  Based  on   and/or  Improve  Customer   Buying  Behavior,  Spend   Various  Business  Drivers:     Experience:       Demographics  for  each  Product   •     Excess  Inventory   •     Instant  /  On-­‐Spot  Incen*ves   Category   •     New  Product  Introduc*ons   •     Increase  Market  Basket     •     Seasonality   •     Accelerated  Incen*ves     •     Local  Promo*ons   •     Impulse  Buys   •     Etc.   •     Etc.        
  • What  to  offer?  10 2  
  • What  else  to  offer?  10 3  
  • Real-­‐Time  Predic*ve  Customer  Offers  -­‐  Solu*on  Flow  1   Customer  Data   2   Customer  /Product  Analysis   3   Customer  &  Product   4   Create  Customer  Offers     Scoring         Customer  Scoring   Customer     Customer     Customers  /   Product  Scoring         Behavior     Interac*ons   Products     Customer  Offers     Buying  PaUern         Customer  Buying  Behavior   Product  AssociaVons   InteracVons  Common  View  of  Customer   Across  All  Business  Units   Customer  SegmentaVon   Forward  &  Rear  Looking   By  Individual  /  Segment   7   Measuring  Results   6   Personalized   5   Real-­‐Time,  Dynamic   &  Performance  Dashboard   Real-­‐Vme  Offers   Offers  &  Rules  Engine     Cross-­‐Channel   InteracVons       Business   ObjecVves       PredicVve   AnalyVcal     Rules   Increase  Market  Basket!   8   Update  Rules  
  • Live Demonstrations Complete the Evaluation Senior Loyalty StrategistVirgin America: in August Success Story Newsletter On-Demand Replay ofDirector of CRM