5 more ideas to improve loyalty program cost effectiveness


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5 more ideas to improve loyalty program cost effectiveness

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5 more ideas to improve loyalty program cost effectiveness

  1. 1. 5 more ideas to improve Loyalty Program Cost Effectiveness Benjamin Filaferro – filaferro@yahoo.com – May 2013
  2. 2. 2 #1 - Empowering the Loyalty Champions 2 • Use them as Social Media Agents to defend and promote your product sand services on different social media platforms • Let them use your new services first time in the market • Invitations to Special Events / Focus Groups to get their input and make them feel they contribute to your product and service development process Indifferent • No loyalty to a particular brand • Easily drift to other brands which they think meet their needs equally or even less if price differentiation exists Fulfilled • Happy with the product or service • A functional rather than emotional relationship with the brand • Value being the key influence Committed • Regular, loyal clientele with the ability to be cross-sold and up-sold • Relatively inactive relationship in terms of promoting the brand Advocates • Committed customers with emotional bonds that go beyond the typical relationship of customer and supplier • Highest level of involvement Benjamin Filaferro – filaferro@yahoo.com – May 2013
  3. 3. #2 - Reward Social Media Engagement 3 Give points for “Liking” the Facebook page Give points for answering Facebook surveys Give points for “Followers get Followers” Give surprise gifts to member who have many followers Benjamin Filaferro – filaferro@yahoo.com – May 2013
  4. 4. #3 - Sign more partnership agreements 4 Appart from Banks and large retailers, only phone operators have such a high amount of customer data. Loyalty Partnership negotiations can be improved via synergies to offer partners opportunities for better customer targeting such as:  Exclusive travel discounts only offered to customers traveling in China  Exclusive baby product discounts to customers who redeemed their points against a baby toy  Exclusive furniture discounts for customers with a high ARPU and owning a triple-play plan  Etc. Challenges are:  To respect regulations (e.g. usually details of the customer can never be transmitted to a partner)  To be subtle so the customers don’t feel an intrusion in their personal lifes (e.g. How Target Figured Out A Teen Girl Was Pregnant Before Her Father Did http://goo.gl/VGlUw ) Benjamin Filaferro – filaferro@yahoo.com – May 2013
  5. 5. #4 - Transform the program into a cohalition program for Micro-Businesses 5 Shop owner buys bulk points Shop owner uses USSD to transfer points to the customer Shop owner collects points Shop owner redeems points against discount on his phone bill Customer buys from a small shop Customer collects points Customer uses USSD to redeem points at the shop New concept Benjamin Filaferro – filaferro@yahoo.com – May 2013
  6. 6. #5 - Improve cost effectiveness through full Program Outsourcing 6Benjamin Filaferro – filaferro@yahoo.com – May 2013
  7. 7. Benjamin Filaferro – Independant Customer Strategy Advisor I have been a Strategy Consultant for the last 10 years at first for Banks and then for Telecom Operators, and I have specialized myself in Customer Strategy over the last 6 years. I have especially assisted Fixed and Mobile Operator CMOs on the design and the implementation of: • Segment Strategies (ATL, BTL, Touchpoint Experience, etc.) • New products • Retention Strategies (Loyalty Programs, Winback, etc.) In the specific field of Loyalty Programs, my experience covers: • The design, the implementation, and the launch of 2 Point Programs, 2 Affinity Programs, 1 Enterprise Affinity Program • The supervision of an outsourced team managing from end-to-end (Marketing, Communication, Analytics, Logistics, & Partnerships) 2 Point Programs and 1 Prepaid Stimulation Game 7Benjamin Filaferro – filaferro@yahoo.com – May 2013
  8. 8. Benjamin Filaferro – filaferro@yahoo.com – May 2013 Thank you