ICLP & Loyalty 360 Webinar

Driving greater customer loyalty

Kevin Yeow, President, ICLP Americas
Vicki Kubota, Group Account Director, ICLP San Francisco

Copyright © 2013 ICLP. All rights reserved www.iclployalty.com

Evaluating the global loyalty landscape

The Loyalty Chasm:
The gap between consumers’
expectations and brand delivery


Agenda

• Headline findings
• Consumers and brand loyalty
• Examining the loyalty chasms
• What does the future of loyalty hold?
• Q&As


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 loyalty
supersedes 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.


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
US, UK, Brazil, India and Mainland China

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


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)


The loyalty chasms

1. Control, choice and personalization


Give control to the customer

Customized and ability to tailor.
Greater relevant targeted content / offers.
Valuing interaction and data provision.


Customer control: ChoicePlus card, Amex

“Choose which merchant you want to earn double points with”


Customer control: Safeway Just for U

Choose which coupons you want applied when you
purchase products and scan your membership number.


The loyalty chasms

2. Real-time rewards and instant gratification


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.


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

Real time rewards: Zipcar

XXX

Zipcar has periodic instant gratification rewards for members.


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.


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 mail


The loyalty chasms

3. A more valuable and relevant currency


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 performance


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 earning


Instant & use when desired: Marriott Rewards

“The rules on your points are officially relaxed”


Currency value – Delta Airlines

“Shop and earn with hundreds of merchants”


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


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.


Thank you
Paul Avery – Business Development Manager
Email - paul.avery@iclployalty.com
Tel – 1 415 990 3463


ICLP & Loyalty 360 Webinar

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