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ICLP & Loyalty 360 Webinar

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ICLP & Loyalty 360 Webinar

  1. 1. Driving greater customer loyalty Kevin Yeow, President, ICLP Americas Vicki Kubota, Group Account Director, ICLP San FranciscoCopyright © 2013 ICLP. All rights reserved www.iclployalty.com
  2. 2. Evaluating the global loyalty landscape The Loyalty Chasm: The gap between consumers’ expectations and brand deliveryCopyright © 2013 ICLP. All rights reserved www.iclployalty.com
  3. 3. Agenda• Headline findings• Consumers and brand loyalty• Examining the loyalty chasms• What does the future of loyalty hold?• Q&AsCopyright © 2013 ICLP. All rights reserved www.iclployalty.com
  4. 4. Headline findings across the globe For Indian consumers, more than any market, loyalty is an act of brand affiliation. 00 % 46 % 00 % 63 % Price sensitivity Emerging markets Impact of brand loyaltysupersedes brand loyalty. have greater opportunity. on repeat and satisfaction. Instant gratification Brands are falling short Mobile and social from their rewards. in customization, personalization create value in emerging and digital engagement. markets. Copyright © 2013 ICLP. All rights reserved www.iclployalty.com
  5. 5. Are consumers brand loyal? 79% 79%Will make a purchase from them in future 64% 65% 75% 75% 73% Satisfied with their products/ services 70% 66% 76% 47%Willing to go out of my way to do business 36% 41% US with them 38% UK 61% 45% Brazil Encourage my friends and family to buy Encourage my firends and family to buy 38% India 57% from them from them 63% 70% China 26% 24% Unwilling to switch to aa competitor Willing to switch to competitor 21% 35% 38% 24% Willing to pay premium for products/ 22% 27% services 46% 44% Base: n1515 consumers across Copyright © 2013 ICLP. All rights reserved www.iclployalty.com US, UK, Brazil, India and Mainland China
  6. 6. What consumers want from brands 6.0 5.9 Value for money 6.3 6.3 6.2 6.1 5.9 Be trustworthy 6.5 6.2 6.2 6.1 5.8 Quality products and services 6.4 6.1 6.1 6.0 6.0 Good customer service 6.4 6.0 6.0 5.5 5.7 China Make it easy for me to do business with 6.0 5.8 5.9 India 5.8 5.6 Brazil Offer promotions on products and services 6.2 5.8 5.8 5.5 UK 5.6 Convenient store locations 6.0 5.8 5.7 US 5.9 5.5 Clear and open privacy policy 6.2 5.6 5.6 5.8 5.6 Rewards or loyalty program 6.1 5.4 5.5 Copyright © 2013 ICLP. All rights reserved www.iclployalty.com
  7. 7. Quick Poll Which markets does your company currently have a presence in with a focus on loyalty? a. USA b. United Kingdom c. Brazil d. China e. India (can select multiple options)Copyright © 2013 ICLP. All rights reserved www.iclployalty.com
  8. 8. The loyalty chasms 1. Control, choice and personalizationCopyright © 2013 ICLP. All rights reserved www.iclployalty.com
  9. 9. Give control to the customer Customized and ability to tailor. Greater relevant targeted content / offers. Valuing interaction and data provision.Copyright © 2013 ICLP. All rights reserved www.iclployalty.com
  10. 10. Customer control: ChoicePlus card, Amex “Choose which merchant you want to earn double points with”Copyright © 2013 ICLP. All rights reserved www.iclployalty.com
  11. 11. Customer control: Safeway Just for U Choose which coupons you want applied when you purchase products and scan your membership number.Copyright © 2013 ICLP. All rights reserved www.iclployalty.com
  12. 12. The loyalty chasms 2. Real-time rewards and instant gratification Copyright © 2013 ICLP. All rights reserved www.iclployalty.com
  13. 13. Instant and real-time – US consumers Use rewards Reward me Have reward when I want instantly information available in real- time 84 % 84 % 62 % 60 % 59 % 40 % 24 % 25 % 22 % Importance to consumers Perceived brand performance Instant crediting , redemption, servicing.Copyright © 2013 ICLP. All rights reserved www.iclployalty.com
  14. 14. Real-time engagement Convergence of membership, marketing and e-commerce Mobile connects the member through “the journey” Expect further evolution to become the dominant channel Threats from third party apps / membership 8th FFP Loyalty Conference 2012
  15. 15. Real time rewards: Zipcar XXXZipcar has periodic instant gratification rewards for members.Copyright © 2013 ICLP. All rights reserved www.iclployalty.com
  16. 16. Real time rewards: CVS CVS, along with many other retailers, have „deals of the day‟ or limited time discounts for redemption within a business day.Copyright © 2013 ICLP. All rights reserved www.iclployalty.com
  17. 17. Quick Poll Which do you think is the most effective channel to communicate with loyalty program members a. Point of sale b. Email c. Website d. Mobile e. Social Media f. Snail mailCopyright © 2013 ICLP. All rights reserved www.iclployalty.com
  18. 18. The loyalty chasms 3. A more valuable and relevant currency Copyright © 2013 ICLP. All rights reserved www.iclployalty.com
  19. 19. Currency value and utility Discount and savings Redeem in different Location-based rewards rewards ways 75 % 83 % 62 % 50 % 48 % 46 % 25 % 35 % 16 % Importance to consumers Perceived brand performanceCopyright © 2013 ICLP. All rights reserved www.iclployalty.com
  20. 20. Creating greater value and utility Providing flexible and spontaneous ways to redeem Driving program engagement through more ways to earn and redeem Funding the program through ancillary revenue based earningCopyright © 2013 ICLP. All rights reserved www.iclployalty.com
  21. 21. Instant & use when desired: Marriott Rewards “The rules on your points are officially relaxed”Copyright © 2013 ICLP. All rights reserved www.iclployalty.com
  22. 22. Currency value – Delta Airlines “Shop and earn with hundreds of merchants”Copyright © 2013 ICLP. All rights reserved www.iclployalty.com
  23. 23. Key findings for US consumers Less For US consumers, more than any market, loyalty should not be taken 82 % 67 % than 20% for granted 20% Gap Place trust and value Only about 20% as the most important attributes in have engaged in social media and their relationship with a brand mobile via a program in the last , 75% have stated a willingness to 6 months switch Look to receive currency In flexibility and availability in exchange for their data and loyalty of rewards delivered by brands against expectations Copyright © 2013 ICLP. All rights reserved www.iclployalty.com
  24. 24. In summary Identify your gaps Look forward, act today The new world These are relatively quick fixes. Standing still is not an option Leveraging intelligence and for tomorrow‟s successful brands creativity to create loyal relationships.Copyright © 2013 ICLP. All rights reserved www.iclployalty.com
  25. 25. Thank you Paul Avery – Business Development Manager Email - paul.avery@iclployalty.com Tel – 1 415 990 3463Copyright © 2013 ICLP. All rights reserved www.iclployalty.com

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