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ALA Customer Engagement & Loyalty Conference 2019
The 3 Tenets
To Successful
Customer Loyalty
Billy Loizou - Vice President, Go-To-Market APAC
Billy Loizou
Vice President, Go-To-Market APAC at Cheetah Digital
● Father of 1...soon to be 2
● Marketing graduate - Monash University
● Marketer by day - 10+ years (Agency & Tech Side)
● Musician by night - 13+ years (One Album)
● Design & technology focused
● Recently completed a research piece called
50 Marketers in 50 Days
○ What brands are you loyal too?
○ How do you define loyalty?
Brands That I’m Loyal To
What I Tell Myself: What My Internet Says:
The Signs
Of Loyalty
Meet the Melt Tattoo Family
The Signs
Of Loyalty
Meet the Melt Tattoo Family
Cooper
Tokens
Green
Stamps
Airline
Miles
1700s 1981
1800s
Punch
Card
1985
Visit Us
Again
Mobile
First
2019
Hotel
Rewards
1983
Supermarket
Card
1995
Redeem
Online
2008
Digital Explosion
<1990 1990 1999 2000s 2019
Store
Events
Direct Mail
Telephone
TV
Radio
Print
Display
Email
Store
Events
Direct Mail
Telephone
TV
Radio
Print
Display
Cable TV
Website
Search
Online Display
IM
Email
Stor
Events
Direct Mail
Telephone
TV
Radio
Print
Display
Cable TV
Website
Search
Online Display
Paid Search
Landing Pages
Microsites
Online Video
Webinars
Affiliates
Mobile Email
SMS
Email
Store
Events
Direct Mail
Telephone
TV
Radio
Print
Display
Cable TV
Website
Search
Online Display
Paid Search
Landing Pages
Microsites
Online Video
Webinars
Affiliates
Blogs
RSS
Podcasts
Wikis
Social Networks
Mobiler Web
Widgets
YouTube
Mobile Apps
Geo Location
Push Notifications
Social Messenger
Voice
Mobile Wallet
Mobile Email
SMS
Email
Store
Events
Direct Mail
Telephone
TV
Radio
Print
Display
Cable TV
Website
Search
Online Display
Paid Search
Landing Pages
Microsites
Online Video
Webinars
Affiliates
Blogs
RSS
Podcasts
Wikis
Social Networks
Mobiler Web
Social Ads
Virtual Worlds
Augmented Reality
Tattoos
“Customers want to be recognised
and rewarded as individuals, not as
nameless, faceless point collectors”
Deloitte Customer Review 15th Edition
Customer Expectations
Responsive Relevant Rewarding
Communicate with me
on the channels I prefer
Understand who I am
Use the data you have
about me to my advantage
Personalise my experience
Let me choose how
I can be rewarded
Give me control
Business Expectations
Recency Frequency Monetary
Driving a more recent
purchase or interaction
Purchased in the last month
Driving a more frequent
purchases or interactions
Purchase more than once
Driving a highers
purchases or referrals
Basket size increased
Recency
Frequency
Monetary
Responsive
Relevant
Rewarding
next interaction drives the action
engagement drives the message
value of sales drives the offer
Loyalty Value Exchange
BusinessExpectations
CustomerExpectations
“Marketers need to shift their focus from creating absent cookie
cutter one-size-fits-all loyalty programs to immersive personalised
and unique loyalty experiences. We need to start being responsive to
customers across the channels of their preference, relevant to
customers based on their changing needs and enable them to
choose how they would like to be rewarded.”
ALA Customer Engagement & Loyalty Conference 2019
Relevant
Companies need to start treating data like it’s a
precious gift; customers need to be aware of what
data you have about them and how you are using it.
You will be surprised at how much information a
customer is willing to share if you just ask them the
question and share the benefit.
Show Them You Care
71% reported being willing to do so,
in order to receive a more relevant
experience or benefits.
Would You Be Willing Share Personal Information?
^ Achieving Advocacy and Influence in a Changing Loyalty Landscape - A MasterCard Asia Pacific Study
Only 36% of consumers are satisfied
with the level of personalisation in
their current loyalty programs.
Let Your Customers Have A Say
Relevant
Dashboard
Survey
Results
Multiple
Questions
Access Engagement Data Through Challenges
Take 10,000 Steps A Day!!! #FirstPairOFVans & Win A Free Of Customs
Tap into culture that already exists
and amplify the message through
incentivisation!!
ALA Customer Engagement & Loyalty Conference 2019
Responsive
Relationships are built on two-way-communication.
Today’s consumer wants to be part of a loyalty program
that cares about what they have to say and responds to
them on their preferred channel.
Go Beyond Transactions
^ Achieving Advocacy and Influence in a Changing Loyalty Landscape - A MasterCard Asia Pacific Study
60%
40%
Yes No
Can You Interact With Your Program Online?
Didn’t know it existed?
They haven’t been onboarded properly
It is not mobile friendly?
I can’t engage with them on mobile,
they don’t have an app.
What Is the Cost Of Losing Customers?
Create The Habit
Onboarding Drives Momentum & Adoption
They believe it takes an average
of 66 days to create a habit.
University College London
Welcome Email Action Not Taken Action Taken Time To Engage
Clear
CTA
Driving a
Behaviour
Encouragement
Feedback
Look For The Signals
Customer
Demographics
Age “25-35”
Preferences
“Mobile Push”
Behavioral
“Frequent Browser”
& “High Purchaser”
Location
“In a Retail Store”
Initiated Event
“Buy Online,
Pick up in Store”
Environmental
“12 hours After
AFL Grand Final”
Situational Predictive
Likeliness
To Attrition
“Medium”
Likeliness
To Open
“High”
Likeliness
To Purchase
“High”
+ + =
State
Delayed In
Store Pick Up
High Value
Purchaser in Store
Becoming
Disengaged
+ + =
Surprise & Delight
Zoe with a gamified
brand experience
Mobile Wallet Takeover
25 million people in Australia,
18 million smartphone users
99% of smartphones are Apple
or Android based
Branding
& Expiry
Relevant
Offer
Coupon or NFC
According to Starbucks, 21% of
their transactions in the U.S. are
made using mobile, for a total of six
million transactions per month.
ALA Customer Engagement & Loyalty Conference 2019
Rewarding
While your customers might be interested in the same
types of products, they’re not all interested in the same
kinds of rewards. Drive perceived value for prospects, by
offering different types of rewards.
Create Memorable Moments
Pick Your
Own Reward
McDonald’s Famous Happy Meals
Skating
& Puppies
Get More For
Your Dough!!
Complete The Beer World Tour
4 Different Beers = A Tour
110 Different Beers Available
[ VALUE ]
Scalability across the
group expansion to other
CraftWorks brands;
Gordon Biersch, Rock
Bottom Brewery and
Logan’s Roadhouse.
Social user generated
content directly pushed
to venues.
Launched a mobile app,
website and connected
through to Point Of Sale.
Generates
30%of their Revenue
The loyalty
program supports
2.5 million members
Flexibility and true
partnership drives
boundless innovation
and incredible
customer value
LOYALTY MANAGEMENT
POS
Integration
Mobile App
8.3% yoy increase in
loyalty sales in 2018
“Marketers need to shift their focus from creating absent cookie
cutter one-size-fits-all loyalty programs to immersive personalised
and unique loyalty experiences. We need to start being responsive to
customers across the channels of their preference, relevant to
customers based on their changing needs and enable them to
choose how they would like to be rewarded.”
Recency
Frequency
Monetary
Responsive
Relevant
Rewarding
next interaction drives the action
engagement drives the message
value of sales drives the offer
Loyalty Value Exchange
BusinessExpectations
CustomerExpectations
ALA Customer Engagement & Loyalty Conference 2019
Thank You
Billy Loizou - Vice President, Go-To-Market APAC

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The 3 Tenets To Successful Customer Loyalty_Billy Loizou_ ALA Conference

  • 1. ALA Customer Engagement & Loyalty Conference 2019 The 3 Tenets To Successful Customer Loyalty Billy Loizou - Vice President, Go-To-Market APAC
  • 2. Billy Loizou Vice President, Go-To-Market APAC at Cheetah Digital ● Father of 1...soon to be 2 ● Marketing graduate - Monash University ● Marketer by day - 10+ years (Agency & Tech Side) ● Musician by night - 13+ years (One Album) ● Design & technology focused ● Recently completed a research piece called 50 Marketers in 50 Days ○ What brands are you loyal too? ○ How do you define loyalty?
  • 3. Brands That I’m Loyal To What I Tell Myself: What My Internet Says:
  • 4. The Signs Of Loyalty Meet the Melt Tattoo Family
  • 5. The Signs Of Loyalty Meet the Melt Tattoo Family
  • 7. Digital Explosion <1990 1990 1999 2000s 2019 Store Events Direct Mail Telephone TV Radio Print Display Email Store Events Direct Mail Telephone TV Radio Print Display Cable TV Website Search Online Display IM Email Stor Events Direct Mail Telephone TV Radio Print Display Cable TV Website Search Online Display Paid Search Landing Pages Microsites Online Video Webinars Affiliates Mobile Email SMS Email Store Events Direct Mail Telephone TV Radio Print Display Cable TV Website Search Online Display Paid Search Landing Pages Microsites Online Video Webinars Affiliates Blogs RSS Podcasts Wikis Social Networks Mobiler Web Widgets YouTube Mobile Apps Geo Location Push Notifications Social Messenger Voice Mobile Wallet Mobile Email SMS Email Store Events Direct Mail Telephone TV Radio Print Display Cable TV Website Search Online Display Paid Search Landing Pages Microsites Online Video Webinars Affiliates Blogs RSS Podcasts Wikis Social Networks Mobiler Web Social Ads Virtual Worlds Augmented Reality Tattoos
  • 8. “Customers want to be recognised and rewarded as individuals, not as nameless, faceless point collectors” Deloitte Customer Review 15th Edition
  • 9. Customer Expectations Responsive Relevant Rewarding Communicate with me on the channels I prefer Understand who I am Use the data you have about me to my advantage Personalise my experience Let me choose how I can be rewarded Give me control
  • 10. Business Expectations Recency Frequency Monetary Driving a more recent purchase or interaction Purchased in the last month Driving a more frequent purchases or interactions Purchase more than once Driving a highers purchases or referrals Basket size increased
  • 11. Recency Frequency Monetary Responsive Relevant Rewarding next interaction drives the action engagement drives the message value of sales drives the offer Loyalty Value Exchange BusinessExpectations CustomerExpectations
  • 12. “Marketers need to shift their focus from creating absent cookie cutter one-size-fits-all loyalty programs to immersive personalised and unique loyalty experiences. We need to start being responsive to customers across the channels of their preference, relevant to customers based on their changing needs and enable them to choose how they would like to be rewarded.”
  • 13. ALA Customer Engagement & Loyalty Conference 2019 Relevant Companies need to start treating data like it’s a precious gift; customers need to be aware of what data you have about them and how you are using it. You will be surprised at how much information a customer is willing to share if you just ask them the question and share the benefit. Show Them You Care
  • 14. 71% reported being willing to do so, in order to receive a more relevant experience or benefits. Would You Be Willing Share Personal Information? ^ Achieving Advocacy and Influence in a Changing Loyalty Landscape - A MasterCard Asia Pacific Study Only 36% of consumers are satisfied with the level of personalisation in their current loyalty programs.
  • 15. Let Your Customers Have A Say Relevant Dashboard Survey Results Multiple Questions
  • 16. Access Engagement Data Through Challenges Take 10,000 Steps A Day!!! #FirstPairOFVans & Win A Free Of Customs Tap into culture that already exists and amplify the message through incentivisation!!
  • 17.
  • 18. ALA Customer Engagement & Loyalty Conference 2019 Responsive Relationships are built on two-way-communication. Today’s consumer wants to be part of a loyalty program that cares about what they have to say and responds to them on their preferred channel. Go Beyond Transactions
  • 19. ^ Achieving Advocacy and Influence in a Changing Loyalty Landscape - A MasterCard Asia Pacific Study 60% 40% Yes No Can You Interact With Your Program Online? Didn’t know it existed? They haven’t been onboarded properly It is not mobile friendly? I can’t engage with them on mobile, they don’t have an app.
  • 20. What Is the Cost Of Losing Customers? Create The Habit
  • 21. Onboarding Drives Momentum & Adoption They believe it takes an average of 66 days to create a habit. University College London Welcome Email Action Not Taken Action Taken Time To Engage Clear CTA Driving a Behaviour Encouragement Feedback
  • 22. Look For The Signals Customer Demographics Age “25-35” Preferences “Mobile Push” Behavioral “Frequent Browser” & “High Purchaser” Location “In a Retail Store” Initiated Event “Buy Online, Pick up in Store” Environmental “12 hours After AFL Grand Final” Situational Predictive Likeliness To Attrition “Medium” Likeliness To Open “High” Likeliness To Purchase “High” + + = State Delayed In Store Pick Up High Value Purchaser in Store Becoming Disengaged + + = Surprise & Delight Zoe with a gamified brand experience
  • 23.
  • 24. Mobile Wallet Takeover 25 million people in Australia, 18 million smartphone users 99% of smartphones are Apple or Android based Branding & Expiry Relevant Offer Coupon or NFC According to Starbucks, 21% of their transactions in the U.S. are made using mobile, for a total of six million transactions per month.
  • 25. ALA Customer Engagement & Loyalty Conference 2019 Rewarding While your customers might be interested in the same types of products, they’re not all interested in the same kinds of rewards. Drive perceived value for prospects, by offering different types of rewards. Create Memorable Moments
  • 26. Pick Your Own Reward McDonald’s Famous Happy Meals
  • 28. Get More For Your Dough!! Complete The Beer World Tour 4 Different Beers = A Tour 110 Different Beers Available
  • 29. [ VALUE ] Scalability across the group expansion to other CraftWorks brands; Gordon Biersch, Rock Bottom Brewery and Logan’s Roadhouse. Social user generated content directly pushed to venues. Launched a mobile app, website and connected through to Point Of Sale. Generates 30%of their Revenue The loyalty program supports 2.5 million members Flexibility and true partnership drives boundless innovation and incredible customer value LOYALTY MANAGEMENT POS Integration Mobile App 8.3% yoy increase in loyalty sales in 2018
  • 30. “Marketers need to shift their focus from creating absent cookie cutter one-size-fits-all loyalty programs to immersive personalised and unique loyalty experiences. We need to start being responsive to customers across the channels of their preference, relevant to customers based on their changing needs and enable them to choose how they would like to be rewarded.”
  • 31. Recency Frequency Monetary Responsive Relevant Rewarding next interaction drives the action engagement drives the message value of sales drives the offer Loyalty Value Exchange BusinessExpectations CustomerExpectations
  • 32. ALA Customer Engagement & Loyalty Conference 2019 Thank You Billy Loizou - Vice President, Go-To-Market APAC

Editor's Notes

  1. 50 Marketers 50 Days Story: “Define Customer Loyalty & What Brands Are You Loyal To?
  2. Adam to share research SPORTING CLUBS TATTOOS & MELT CHEESE STORY https://www.youtube.com/watch?v=MNLiYdCDVBo A true testament to Melt’s success is known as the “Melt Tattoo Family.” What started as a half-joke promotion offering 25% off for life to anyone who would have the Melt logo tattooed on them exploded into what can only be described as a phenomenon in the restaurant industry. The Tattoo Family now boasts over 700 card-carrying members, each of them an ambassador for the little Cleveland restaurant that could, and did, capture a piece of their hearts. Melt Bar and Grilled features gourmet grilled cheese sandwiches, craft beers and signature cocktails in an eclectic, relaxed and comfortable atmosphere. Featured on several national television programs and in countless publications, Melt puts a new spin on traditional bar food in a setting that is cool, fun and very unique
  3. Adam to share research SPORTING CLUBS TATTOOS & MELT CHEESE STORY https://www.youtube.com/watch?v=MNLiYdCDVBo A true testament to Melt’s success is known as the “Melt Tattoo Family.” What started as a half-joke promotion offering 25% off for life to anyone who would have the Melt logo tattooed on them exploded into what can only be described as a phenomenon in the restaurant industry. The Tattoo Family now boasts over 700 card-carrying members, each of them an ambassador for the little Cleveland restaurant that could, and did, capture a piece of their hearts. Melt Bar and Grilled features gourmet grilled cheese sandwiches, craft beers and signature cocktails in an eclectic, relaxed and comfortable atmosphere. Featured on several national television programs and in countless publications, Melt puts a new spin on traditional bar food in a setting that is cool, fun and very unique
  4. Recency: more active base of customers leading to higher retention Frequency: more engaged base of customers leading to higher retention Monetary: increase in average order value leading to Increase in share of wallet
  5. From transactions to interactions
  6. Adam to share research
  7. Present opportunities for customers to respond to a wide range of challenges from photo, video and social challenges to polls and surveys, contests, games and sweepstakes. All these engaging brand experiences can be activated by leveraging your data and communicating through the customer's channel of preference, whether it be through email, mobile push, mobile wallet, SMS, social, website or in-store via point of sale.
  8. Present opportunities for customers to respond to a wide range of challenges from photo, video and social challenges to polls and surveys, contests, games and sweepstakes. All these engaging brand experiences can be activated by leveraging your data and communicating through the customer's channel of preference, whether it be through email, mobile push, mobile wallet, SMS, social, website or in-store via point of sale.
  9. Pie Chart visualisation More than 60% of consumers in Asia Pacific are now able to interact with their loyalty programs online. This implies that 40% of consumers can’t interact with their loyalty programs on their channels of choice.
  10. Loyalty programs should offer members a succession of experiences from the moment they join to the time they first earn points, first receive a points statement, and redeem and beyond. Each of these experiences presents as a moment of inspiration and can have a very meaningful impact on how a member perceives and engages with a program.
  11. Loyalty programs should offer members a succession of experiences from the moment they join to the time they first earn points, first receive a points statement, and redeem and beyond. Each of these experiences presents as a moment of inspiration and can have a very meaningful impact on how a member perceives and engages with a program.
  12. https://www.braze.com/perspectives/article/burger-king-cannes-lions
  13. https://which-50.com/half-the-worlds-population-to-use-digital-wallets-by-2024-juniper-research-finds/ According to Starbucks, 21% of their transactions in the U.S. are made using mobile devices, for a total of six million transactions per month.
  14. Social Virality from the photos Grill’d donate your 10th burger the homeless
  15. VANS don’t discount!! Skateboard lovers Dog owners
  16. Empowered at the local venue! Use the home location! VISIT AND SPEND AT OLD CHICAGO Earn 1 Point for every $1 spent on food and beverages at Old Chicago. Earn 5 OC Bucks for every 75 Points. Apply OC Bucks to food and beverage savings during your next Old Chicago visit! Earn bonus and extra points throughout the year with promotional offers, and get rewarded more quickly! OC Rewards is a creative and multidimensional loyalty program that rewards customers with prizes and discounts, cultivates a community of Old Chicago advocates, and drives repeat visits. At its core, the program rewards guests one point for every dollar spent on food and beverage and five OC Bucks for every 75 points. It also has an experiential component — its famous Mini and World Beer Tours — offering guests the ultimate challenge of drinking 110 varieties of beer to earn a spot in the program’s Hall of Foam (among the highest of OC honors). Guests who complete this amazing feat 10 times become a VIP member and are recognized with a personalized VIP Loyalty Card, a special Hall of Foam plate, and a personalized VIP beer stein they can use in the restaurant. When a guest completes their 50th World Beer Tour, they become a member of the “Super Hall of Foam.” Guests that earn VIP and Super Hall status treat Old Chicago as their local bar and a place to spend time with new and old friends. OC Rewards’ uniqueness and coveted members-only perks, prizes, and recognition have made it a customer favorite!
  17. NOTE: due to the VF Publicity Clause, sales people can use the use the Vans example, however, can not provide the Vans specific slides as a "leave behind. When it comes to understanding the impact that this can all have on a customer relationship, our Cheetah Digital client, Vans, is an excellent example of loyalty building done well. Vans sought to create a more emotional connection to their brand for their customers as an effort to lead to increased purchase frequency and average spend on vans.com or in one of their 400+ stores. Vans and Cheetah Digital partnered to create the Vans Family loyalty program. Customers can sign up in store, on the Vans.com website, or via the Vans mobile app. All of their communications and engagement around this program are powered by our technology. In less than 10 months, Vans Family had grown to almost 6 million members. The program is now being expanded internationally and has resulted in additional VF brands implementing our Cheetah Loyalty solution (The North Face, Kipling and Timberland). They build interaction and communications so well across channels, that they’ve established a highly responsive audience, as evidenced in this example of a program they ran. To celebrate 50 years of Vans, Vans Family (Vans loyalty program members) were asked to share the story of their first pair of Vans on social media. Over 40,000 vans family members responded with heartwarming stories about their first pair and how they have been loyal Vans customers ever since. This helped to identify a cohort of very emotionally invested customers that they could use to run more advanced loyalty campaigns against to continue to build on that emotional connection and help create visible Vans brand advocates. The Vans Family program is so successful that it was recognized in May 2018 by Loyalty 360 for their outstanding Customer Engagement.
  18. From transactions to interactions
  19. Recency: more active base of customers leading to higher retention Frequency: more engaged base of customers leading to higher retention Monetary: increase in average order value leading to Increase in share of wallet