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Design Lounge Webinar: Leveraging Loyalty Programs, June 18, 2014

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Did you know that companies with well-established loyalty programs have a healthier bottom line?

Are you looking for ways to establish or enhance your company’s loyalty program?

Strong loyalty programs move beyond points or rewards. A well-designed loyalty program results in incremental gains, turning a customer who spends $X, into a customer who spends $X plus Y% more.

In this webinar, you will learn:

• The 6 Cs of loyalty,
• The steps required to promote and market a loyalty program,
• How to avoid making the biggest mistakes when introducing a loyalty program,
• How branding can make a loyalty program more successful.

Published in: Retail
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Design Lounge Webinar: Leveraging Loyalty Programs, June 18, 2014

  1. 1. Leveraging Brand Loyalty Programs – June 18, 2014 Leveraging Brand Loyalty Programs
  2. 2. Overview of the Past • Loyalty Programs were often created as a reactive measure to competition, resulting in weak benchmarking and weak understanding of the customer • With today’s empowered customer, offering simple “points” or rewards programs is not enough. Leveraging Brand Loyalty Programs – June 18, 2014
  3. 3. Leveraging Brand Loyalty Programs – June 18, 2014 Successful Programs … Only 7-10% of brands provide what the consumer wants: • A sense of empowerment and a sense of value • Creating incremental dialogue and mutually beneficial behaviour • Montreal Transportation Department, Best Western, American Express, Loblaws.
  4. 4. Leveraging Brand Loyalty Programs – June 18, 2014 How Branding Enhances a Loyalty Program • Allows for top-of-mind recall and allows individuals to associate their behaviours and interactions with the brand • Brand Coherence: Consistent branding across the program allows the consumer to identify with the brand
  5. 5. Leveraging Brand Loyalty Programs – June 18, 2014 Advice for Introducing a Loyalty Program: • Understand your position: get an outside perspective of what your customers value (consider hiring a consultant) • Set lower expectations, and meet or exceed them • Loyalty program has to focus on what the customers value in order to reach the top of customer’s consideration set
  6. 6. Putting Loyalty Programs on People’s Radar • A true loyalty program is about behaviour • Successful programs have infused an entrepreneurial spirit into their organizations • Successful programs are willing to take risks in communications with customers (new technology, etc.) Leveraging Brand Loyalty Programs – June 18, 2014
  7. 7. What is a Loyalty Program? • Definitions of a loyalty program have expanded exponentially with CRM, data sets, analytics, etc. • What loyalty entails is becoming a bigger part of the budget • Creating successful program requires involvement of various sections of the organization (CMOs, CFOs, COOs, etc.) Leveraging Brand Loyalty Programs – June 18, 2014
  8. 8. Sixth ‘C’ of Loyalty: • 5 Cs of loyalty programs: Commitment, Collaboration, Community, Content, Commerce • Expanded with the 6th C: Confidence (Organizations must have confidence that they can develop new programs and drive the customer behaviour) Leveraging Brand Loyalty Programs – June 18, 2014
  9. 9. Unsuccessful Loyalty Programs • Programs that alienate: Delta Airlines (spent-based rewards) • Programs with flawed processes: Sears (flawed technology) • Programs that do not listen or try to do too much Leveraging Brand Loyalty Programs – June 18, 2014
  10. 10. Leveraging Brand Loyalty Programs – June 18, 2014 J.D. Power and Loyalty Programs • J.D. Power considers Loyalty Programs when scoring organizations: • Looking at how the loyalty program drives financial success, incremental return and the cost of managing the customers • J.D. power helps brands realize what they should be doing in their loyalty programs
  11. 11. Leveraging Brand Loyalty Programs – June 18, 2014 Affinity Programs That Work Best • Grocery programs (Kroger, Loblaws) do new things and speak to their customers • The #1 challenge for brands is understanding what rewards the customer wants: cash back, discount, …, ???
  12. 12. Effective Incentives for Building Loyalty • Members seek rational engagement as well as great experience with the program • Customers create rational/emotional connection with the brands and programs • The rewards form should reflect on the customers’ needs Leveraging Brand Loyalty Programs – June 18, 2014
  13. 13. Private Label Brands • Incremental spent drives the emotional attachment to private label brands • The incentive of these programs comes from the price gap between national brands and private label brands • U.S.-based Programs: Kroger and Target Leveraging Brand Loyalty Programs – June 18, 2014
  14. 14. Leveraging Brand Loyalty Programs – June 18, 2014 Question Period 1.800.747.5150 Access: 5697142

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