Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

The 5 c's of loyalty strategy

84 views

Published on

As part of Epsilon’s Loyalty Evaluation and Design (LEAD) framework, we use the 5 C’s of loyalty strategy - competition, culture, company, cost-benefit, and customer – to assess critical components and inform the loyalty design recommendations to form an ideal loyalty experience for brands and their customers.

Published in: Marketing

The 5 c's of loyalty strategy

  1. 1. © 2020 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. THE 5 C’S OF LOYALTY STRATEGY By Caroline Cannon | May 2020
  2. 2. THE EVOLVING LOYALTY LANDSCAPE
  3. 3. 3 © 2020 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. Increasing customer expectations Advancement in the “tech of tomorrow” Global disruption and uncertainty Significance of data and privacyRise in social engagement BRANDS ARE FACING NEW WORLD CHALLENGES Importance of hyper- personalisation
  4. 4. 4 © 2020 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. COMMUNICATING WITH YOUR MEMBERS IS NOW MORE IMPORTANT THAN EVER 4 © 2019 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners.
  5. 5. 5 © 2020 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. RELEVANCE, TRANSPARENCY & AUTHENTICITY ARE CRITICAL
  6. 6. 6 © 2020 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. LOYALTY IS ABOUT PEOPLE LOYALTY IS MORE THAN POINTS
  7. 7. 7 © 2020 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 1:1 1:YOU DELIVER PERSONALISED HUMAN EXPERIENCES THAT MATTER
  8. 8. 8 © 2020 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. FOCUS ON YOUR LOYALTY VALUE PROPOSITION
  9. 9. 9 © 2020 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. UTILISE A FRAMEWORK SUCH AS EPSILON’S LOYALTY EVALUATION AND DESIGN (LEAD) PROCESS EVALUATION DESIGN/PLAN PILOT/LAUNCHDISCOVERY What makes this process so unique is it infuses a blend of data, insights, analytics, experience and, creativity to help brands develop a unique loyalty experience that’s right for the customer…and the brand.
  10. 10. The 5 C’s of the Loyalty Strategy Loyalty members can spend up to 3x more with your brand than non- members. So how do you create a loyalty experience that keeps your members engaged, happy and coming back for more? CUSTOMER COMPETITION COMPANY COST-BENEFIT CULTURE THE 5 C’S OF THE LOYALTY STRATEGY
  11. 11. 11 © 2020 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. Connect on an emotional level Create programmes that win trust and connect on an emotional level, while rewarding customers with emotional benefits as well as functional ones 1: Competition“CONSUMERS WHO ARE LOYAL TO A BRAND ARE MORE THAN WILLING TO REFER THAT BRAND (59%) TO THEIR FRIENDS AND FAMILY, JOIN THEIR LOYALTY PROGRAMME (59%) AND SPEND MORE (36%).” (Source: Yotpo) Differentiate yourself When devising your loyalty strategy, focus on: • Evaluating your brands’ loyalty competitive set • Identifying the loyalty “white space” opportunities within your sector • Understanding your brands’ competitive advantage Machine Learning, Artificial Intelligence, and Data Augmentation Use your data the right way, to learn more about your customers, with machine learning, artificial intelligence, and data augmentation. Similarly, understanding your customers’ behaviour and potential for growth (through insight like our VAP - Value, Attrition, Potential segmentation)
  12. 12. 12 © 2020 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. Success starts from within For a company to succeed, they must have happy employees, a top-notch product/solution supported by the right technology stack. Add to this, a customer-centric and privacy-protected culture that’s focused on satisfied loyal customers, who in turn will remain loyal and make repeat purchases 2: CultureFEDEX – A BRAND THAT HAS TAKEN “CULTURAL TRANSFORMATION” AND OVERALL FOCUS ON LOYALTY TO A NEW LEVELS. A “Top-Down” “Cultural Transformation” approach To ensure programme success, “cultural transformation” needs a “top-down” approach across every department and role and needs to be embodied into the DNA of every employee. “Cultural Transformation” will not happen overnight and communication will be key Within Epsilon, we recommend a “crawl, walk, run” approach for brands and their “cultural transformation” journey
  13. 13. 13 © 2020 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. CX is King The key to success lies in customer satisfaction, and a consistent end-to-end omnichannel customer experience (CX) (which has emerged as the key driver for growth and sustainability across industries) 3: Company“84% OF CUSTOMERS FEEL THAT EXPERIENCES ARE AS IMPORTANT AS THE ACTUAL PRODUCTS AND SERVICES”. REINFORCING THE NEED FOR A 1:YOU EXPERIENCE. (Source: Salesforce) Personalisation This should be integrated into the entire customer experience—including your loyalty programme. Loyalty marketing goes far beyond rewards and offers and should be about 1:You—the ability to have conversations and deliver powerful, human experiences Key “Company” Considerations Key considerations for the loyalty strategy “company” element: • Identifying the brand imperatives that must be brought to life • Creating or expanding strategic partnerships to enhance the customer experience • Determine whether your technology stack is helping or hindering a seamless customer experiences? • Identifying operational gaps that need to be addressed
  14. 14. 14 © 2020 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. Engagement and Value A loyalty programme should provide real engagement and value to your loyal members. With the right loyalty strategy, you can transform that relationship and supercharge your revenue 4: Cost-Benefit“82% OF RETAILERS NAMED LOYALTY AS VERY IMORTANT FOR THEIR BOTTOM LINE”. (Source: LoyaltyOne) Financial Projections Understand the financial projections for the recommended strategy and whether it will deliver a profitable return-on- investment. Similarly, have you considered the probability of exceeding the minimum threshold set? Key “Cost-Benefit” Considerations Additional “cost-benefit” elements to keep in mind: • Programme cost versus return, customer satisfaction, retention and lifetime value • Cost of servicing customers, acquiring customers, redemption costs and loyalty liability • What about the technology, that will store and process the data and deliver the technical functionality for the programme?
  15. 15. 15 © 2020 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. Relationships I believe “employees are the lifeblood of an organisation”, and I also believe the most important relationship a company has is with its customers. At Epsilon, we are pioneers in the belief that, to create authentic loyalty, a brand must put customers at the center of everything, to create emotional connections that count. 5: Customer“ONLY 37% OF RESPONDENTS IDENTIFIED POINTS AND REWARDS AS ONE OF THE MOST EFFECTIVE WAYS TO SECURE THEIR BRAND LOYALTY”. (Source: KPMG) Additional “Customer” Considerations To understand your customer and the value they derive from your loyalty programme, you must understand your data and how to use it. Consider the following: • Prioritise your customer engagement strategy, ensuring it’s flexible and adaptable • Is there existing customer research and insights that can be leveraged to define your customers’ needs and attitudes? • From there, determine what additional customer research needs to be carried out to inform your value proposition • Finally, perform customer segmentation and modelling to aid the customer benefit and analysis • Use this analysis and insight to grow and retain your customer relationships and increase spend, visits, tenure, and loyalty
  16. 16. 16 © 2020 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 16 © 2019 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. CREATE MEANINGFUL EXPERIENCES WITH EPSILON
  17. 17. 17 © 2020 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. WE’VE SPENT OVER 50YEARS POWERING LIFETIME CONNECTIONS
  18. 18. 18 © 2020 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. A Leader in Email The Forrester Wave™: Email Marketing Service Providers, Q2 2018 According to Forrester Research, Epsilon demonstrates ''an unmatched balance of strong technology and professional services.'' The ONLY Leader in both Loyalty Waves The Forrester Wave™: Loyalty Technology Platforms, Q2 2019 Epsilon “has a wealth of experience in powering loyalty for retail, travel and hospitality, restaurant, and financial services.” The Forrester Wave™: Loyalty Service Providers, Q3 2019 Reference clients comment on Epsilon’s deep and expansive knowledge of the loyalty space, excellent execution capabilities, and impact: “all of their work drives incremental business.” AND ARE A LEADER IN LOYALTY
  19. 19. WANT TO KNOW MORE ABOUT PEOPLECLOUD LOYALTY?
  20. 20. 20 © 2020 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. EMEA.EPSILON.COM/LETSTALKLOYALTY

×