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Loyalty Summit Presentation, Mumbai, India

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This is a presentation I made at the Loyalty summit in Mumbai in India. Please note that videos have been removed.
It's focus is on how we can use gamification and digital strategy in developing stronger customer experiences and lasting customer loyalty

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Loyalty Summit Presentation, Mumbai, India

  1. 1. Gamification: Loyalty by Design Loyalty Summit, Mumbai 2015 Marigo Raftopoulos
  2. 2. We are bored, disengaged & uninspired Engaged Disengaged Enrolled 20% 40% 40% Towers Perrin 2011; Gallup 2013; CEO Institute 2013
  3. 3. Carl Jung Modern Psychology Who Am I Sri Ramana Maharashi Joseph Campbell Hero’s Journey Follow Your Bliss Jiddu Krishnamurti
  4. 4. Loyalty by Design • Today’s session – Challenges for loyalty – What is gamification – Design customer experience – Examples and case studies – Technology & platforms • Challenge Questions – Learn from each other • 10 key steps – Set you on your way – Questions
  5. 5. About me • Independent business strategy advisor – Private & public sector – Technology startups and incubators – EU Commission Horizon2020 – Mixing business & games for 10+ years • PhD researcher: gamification and business innovation • Technology neutral
  6. 6. What do customers want from loyalty programs? • Not great news: High cost, high maintenance, low loyalty • Customers have been trained to expect financial rewards • They think you’re incentivising them to spend more (trust issues) • Need to move to a positive, customer centric model Save money Receive rewards Earn rewards Other Technology Advice 2014 57.4%37.5%
  7. 7. Key challenges for customer loyalty • Brand loyalty is waning • Milennials are not engaging • High cost to run • Poor design • We’re at an impasse • Significant opportunities emerging
  8. 8. Do you really know your customer? What are your assumptions about your customer needs, wants and desires? What are your default decision making models? How do you test & revise them?
  9. 9. This is what game designers know…
  10. 10. Who am I? Reiss 2000: 16 core desires…
  11. 11. Power
  12. 12. Independence
  13. 13. Honor
  14. 14. Community
  15. 15. Ownership
  16. 16. We are bored, disengaged & uninspired Engaged Disengaged Enrolled 20% 40% 40% Towers Perrin 2011; Gallup 2013; CEO Institute 2013
  17. 17. When you are listening to somebody, completely, attentively, then you are listening not only to the words, but also to the feeling that is being conveyed, the whole of it, not part of it. Jiddu Krishnamurti (via Joseph Campbell)
  18. 18. How do your customers FEEL? Are you taking more than you are listening?
  19. 19. How gamification can be used in loyalty • Game elements, game thinking – Engage interest, connect, intrigue, interactive – Part of a blended approach • Using behavioral economics, to frame choices with game mechanics – To engage and motivate – Enhance systems – Trigger responses • Deep customer engagement – Rethink and redesign end-to-end systems – Delighting your customers – Emotional connection – Designing experience – Long term relationship rather than a short term fling
  20. 20. Three major types gamification
  21. 21. Gamification in Loyalty (1/3) 1. Games & simulations • Engagement. Awareness. Marketing McDonald’s Channel to market strategy Qantas FF partner awareness program
  22. 22. Gamification in Loyalty (2/3) 2. Game Mechanics • Rewards. Recognition. Reputation. Status. Community. Challenge. Randomness. Surprise. Points. Badges. Leaderboards… xxx
  23. 23. Gamification in Loyalty (3/3) 3. Playful Experiences • Deep connection with the customer. Create long term relationships. Customer journey focused. Integrated. Expedia.com geo- location game to build relaltionships “Fantasy Football” rewards loyal customers with an active experience
  24. 24. Strategy always comes first! • Do you really know your customer? – Challenge your assumptions about who they are, what their needs are, what inspires them • Clearly articulated business goals? • Does this fit into your overall Brand identity, promise and narrative? • Are you designing a holistic, integrated customer experience?
  25. 25. What resonates with you so far?
  26. 26. Loyalty Experience Design Matrix (simple example using only financial metrics) Shift existing customers to spend more or higher margin Acquire new customers at high margin products/larger basket Retain existing customers, spending the same levels Acquire new customers at entry level spend CUSTOMERS SPENDING Retain Acquire Uplift Maintain A C DB
  27. 27. Customer experience design is different in each quadrant Shift existing customers to spend more or higher margin Acquire new customers at high margin products/basket Retain existing customers, spending the same levels Acquire new customers at entry level spend CUSTOMERS SPENDING Retain Acquire Uplift Maintain ENGAGE STABILIZE ENGAGE INNOVATE Tactical promotions, discounts and rewards won’t influence long term behavior change A C DB
  28. 28. Growth options will require re-engagement on a different level Shift existing customers to spend more or higher margin Acquire new customers at high margin products/basket Retain existing customers, spending the same levels Acquire new customers at entry level spend CUSTOMERS SPENDING Retain Acquire Uplift Maintain ENGAGE STABILIZE ENGAGE INNOVATE Tactical promotions, discounts and rewards won’t influence long term behavior change A C DB * * * * Growth options
  29. 29. Gamification optimizes loyalty (1/2) • Tool to influence consumer behavior – Frame choices & pathways • Customer centric by design – Human centered design • Digital, multichannel, interactive, trans-media – No media is independent of each other
  30. 30. Gamification optimizes loyalty (2/2) • Seamless customer experience – One company narrative • Strategic mindset – No gimmicks which are inauthentic • Data generating – data analytics and social media
  31. 31. Designing customer experiences..
  32. 32. Four gamification case studies: Nike * Starbucks * JayZ * Expedia
  33. 33. Nike Gain control over supply chain Games Game Mechanics Playful Experiences Empowering Customers
  34. 34. Socialization, challenges, curate & display achievements, micro rewards, track exercise, give control (empower)
  35. 35. Customer experience: smarter, social, motivational
  36. 36. Nike own the customer & now control their supply chain 7 million runners Brand loyalty Big Data 57,000 materials Vendor index Open Data Customer insight Open access for devs Business innovation
  37. 37. New product awareness: Help athletes stay warm while training, points, awards, leaderboard. Try products. Win a meeting with the athletes
  38. 38. What does it feel like?
  39. 39. Starbucks Differentiate an ordinary experience Capture customer buying behaviour Technology integration Subtle gaming elements stars, levels, redeem, random rewards & surprises
  40. 40. 1 2 5 3 4 1 5 1. Onboarding 2. Rewards 3. Levels 4. Customisation 5. Gifting Feedback Surprise Payments Marketing, Sales, Loyalty
  41. 41. Technology integration for convenience Integrate payment methods with mobile technology Pre-order and pre-payment Membership doubled from 4.5m in 2012 to 9.0m in 2013
  42. 42. Starbucks knows their customers, & keeps them engaged
  43. 43. Engagement is continuous. You don’t set and forget
  44. 44. JayZ Decoded Rewarding loyal customers Epic adventure! Multi-media, Multi-channel Geo-location based game Partner alliance strategy (Random House + Bing Maps + Universal Music)
  45. 45. Create Experiences Deeper customer relationships
  46. 46. A glimpse into and deep connection with the man that is the
  47. 47. Creating shared experience
  48. 48. Connection of the physical, virtual, and emotional
  49. 49. What does it feel like?
  50. 50. Expedia.com Customer engagement by creating experiences through games, location base competitions, playful experiences
  51. 51. Different gamification for different purposes
  52. 52. Different forms of gamification provide a holistic experiences for customers to interact with your brand
  53. 53. Challenge Question: Which of these examples have sparked ideas or your imagination?
  54. 54. An eye to the future Gamification-enabled technologies
  55. 55. An eye to the future: Gamification + Virtual/Augmented Reality + Web/Mobile Augmented Reality shopping: delight, curiosity, discovery, awareness, marketing, feedback + Gamification enabled: Playful experiences, onboarding, feedback-loops, rewards, prizes, sharing, data capture, tech integration Heinze AR app: customers win cookbook & prizes when camera placed over the product. Polls, location & preferences
  56. 56. An eye to the future: Gamification + Virtual/Augmented Reality + Web/Mobile 3D Augmented Reality virtual fitting room (shopping center) Virtual Reality Fitting room (web, home based) + Gamification enabled: Playful experiences, onboarding, feedback-loops, rewards, prizes, sharing, data capture, tech integration
  57. 57. Gamification platforms for loyalty (1/2) • Technology options: • Digital gamified apps and web platforms (80+) • Game and app developers • Media agencies • Experience & service designers • Many mechanics in use – be selective & strategic • Average cost of traditional loyalty programs US$500,000 (2010) can now be run for US$1000 on new platforms • Only 5-10% business have a loyalty program – this technology opens affordable options, esp for SMEs
  58. 58. Gamification platforms for loyalty (2/2) • Engaging on-boarding mechanisms based on motivation & behavioural design to: • Join or sign up • Stay in the program • Participate in the program • Integration with other digital technologies – mobile, web, email, sms, geo-location • More convenient and engaging • Prolific data collection and analytics • Intelligence before/during/after purchase
  59. 59. Challenge Question: How are you looking to integrate these new technologies in your program?
  60. 60. Ten Key Steps: 5+5 5 things to be, 5 things to do • This may not be what you think • Customer strategy • Product strategy • Technology strategy • Capability strategy • But you already know how to do this
  61. 61. Ten Key Steps: 5+5 5 things to be: • Be courageous • Stretch the boundaries of your product/service model • Be curious • What really makes your customer’s tick? Keep asking WHY? • Be creative • Dare to try something different, even if you think you can’t. • Be playful • Socrates: “an hour of play, a year of conversation” • Be proactive • Or else your competitors will. The time is never ‘right’. Courageous Curious Creative Playful Proactive
  62. 62. Ten Key Steps: 5+5 5 things to do: • Loyalty is everyone’s job, so share the love • NASA janitor: “I’m helping put a man on the moon” • Put a team together tomorrow and run a design-thinking exercise • Rethink your product, service, and your loyalty paradigm with ‘radical ideas’ • Ask your customers and really ‘listen’ • Be prepared to let go of company folklore (satisfaction is not loyalty) • Experiment by starting small on one easy project • Big things grow from there (Commonwealth Bank) • Borrow ideas • No need to reinvent the wheel (Expedia on JayZ)
  63. 63. Most importantly, What does it feel like to your customers?
  64. 64. Thank you! Marigo Raftopoulos

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