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From Customer Loyalty to Brand Advocacy


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We live in a world of ‘digital immersion’ and today’s customers don’t see your company through a channel-focused lens – they view the experience they have as ‘one experience’, irrespective of channel.

This presentation will explore the challenges that not only lay ahead, but also probe some ideas on how you can foster the type of engagement which moves beyond the traditional view of customer loyalty and into the world of cultivating fanatical brand advocacy.

Published in: Business

From Customer Loyalty to Brand Advocacy

  1. 1. From Customer Loyalty to Brand AdvocacyCustomer Loyalty 2013Nicholas Kontopoulos | Senior Global Marketing Director26th of March, 2013 | Singapore
  2. 2. A little bit more about me… @Nicholask71
  3. 3. and what makes me tick. @Nicholask71
  4. 4. @Nicholask71
  5. 5. @Nicholask71
  6. 6. @Nicholask71
  7. 7. Passionate about my customers
  8. 8. My objective today is to…
  9. 9. Fire-up yourbrain juices
  10. 10. The Impact that theDigital Customer By  taking  a  look  at  the  imapct  that  the  age   of  the  “Digital  Customer”  is  having  on  ythe is having on our   businesses   Enterprise
  11. 11. @Nicholask71
  12. 12. “A man without asmiling face mustnot open a shop. Chinese Proverb
  13. 13. Raise  your  hand  of  if  ever  bought  goods  or   services  from  an  online  retailer   Amazon,  Zappos,  HSBC,  Sachs  
  14. 14. WHAT’S THE POINT?
  15. 15. Customer Experience leaders OUTPERFORM the laggards Over a recent five-year period during which the S&P 500 was flat, a stock portfolio of customer experience leaders grew 22%. During this time, Forrester found that those companies who +22% -46% performed poorest in the Customer Experience Index also performed poorest in terms of stock performance.Source: 2009. All rightsResearch 2012©  SAP AG Forrester reserved. / Page 18 Internal
  18. 18. Source:
  19. 19. The Good Old Days
  21. 21. AS roblem   The  P WE KNOW ITCustomer  Loyalty  is  Dead  –  Image  of  loyalty  cards   Text  “As  we  know  it”  
  22. 22. Are you more loyal to yourbrands than 10 years ago?
  23. 23. Relationship CHANGED The  Problem   RelaJonship  between  buyers  and  sellers  have   changed  
  25. 25. Customers are DRIVING the conversation
  26. 26. SearchInformation PURCHASE
  27. 27. Customers are looking to be RESCUED
  28. 28. The COST of customer acquisition versuscustomer retention could reach as high as 700% Source: ‘The Loyalty Effect’ by Frederick Reichheldof Bain & Co.
  29. 29. A 5% increase in customer retention results in a 25% to 100% increase in PROFITABILITY Source: ‘The Loyalty Effect’ by Frederick Reichheldof Bain & Co.
  30. 30. RISING customer EXPECTATIONS reflect ahigher degree of likelihood to SWITCH brands
  31. 31. HOSTAGE waiting to escape
  32. 32. “The simplestcustomer servicefrustration question ofall? “Why isn’t thisas important to youas it is to me? Seth Godin
  33. 33. Give the customers aGREAT EXPERIENCE The  SoluJon   Customer  Experience!!!  
  34. 34. Customer Experience“The customers perceptions and related feelings causedby the one-off and cumulative effect of interactions with a suppliers employees, systems, channels or products” Source:  Gartner    
  35. 35. “Or, the aggregated memories of every touch a customer has with your company”
  36. 36. Customer Experience Management “The practice of designing and reacting to customerinteractions to meet or exceed customer expectations to increase customer satisfaction, loyalty and advocacy” Source: Gartner
  37. 37. “Or, delivering a consistent customer experience across the entire enterprise”
  38. 38. The  SoluJon  Key  ingredients  –  Image  from  file   INGREDIENTS
  39. 39. 7 Steps to get started with CEM§  Build a cross-functional work team Where to start?§  Define key elements of a strategy§  Map the customer journey§  Consolidate customer data collection/VoC§  Create a governance mechanism§  Map the customer experience ecosystem§  Select Projects that build momentum Source: 1to1 Media 7 Steps to Get Started With Customer Experience
  40. 40. CRM is  not    about  soQware…  
  41. 41. CRM is  not    about  soQware…  …it  is  an  ideology
  42. 42. It is about  connecting  people… Employees Customers
  43. 43. it  is  about  delightingyour customers  
  45. 45. “Integrate loyalty thinkingacross the consumerexperience. Loyalty isnt aprogram or a function in yourorg chart. It the combinationof your customer-facingefforts. Mike Linton
  46. 46. ALIGN program to CEM vision
  47. 47. Companies have built OUTPOSTS
  48. 48. Interaction History Remove SILOSOrder Information Billing ecommerce Mobile
  49. 49. OMNICHANNEL strategy is required
  50. 50. STRUCTURED approach
  51. 51. View of the PAST
  53. 53. Used analytics to determine“Customer lifetime value”5 years of data was crunched for twoFortune 1,000 companies (B2B & B2C).9 month field experiment using specificmarketing strategies based on the“customer lifetime value” of eachcustomer or customer segment.90% of both companies profits werebeing generated by 20% of their clients.
  54. 54. B2B company stock increased33% nine months after experiment.Top 3 competitors stock increased 12%.B2C company stock increased 58%nine months after experiment. The top3 competitors stock increased 15%.
  55. 55. Social Media Data at your finger tips
  56. 56. Segmentation at Speed of thought
  58. 58. “If you keep on doingwhat youve alwaysdone, youll keep ongetting what youvealways got. W L Bateman
  61. 61. INTEGRATE CEM, CRM andLoyalty Management
  62. 62. MONTREAL
  63. 63. Claire
  64. 64. Phillip
  65. 65. The STM are Montrealstransit provider - movingmore than 1.2M passengersevery day day through 250bus lines and 68 subwaystations in the Montreal area. 2020/40%
  66. 66. Three million cards incirculation, one-thirdof which are used ona daily basis.
  67. 67. ““We want to untap thepotential of those Opuscards and the potentialof this eco-system ofcustomers that takepublic transit every day.” Pierre Bourbonniere, Director of Marketing
  68. 68. “We wanted to reward ourcustomers on the spot, wewanted to be able to surpriseand create excitement for ourcustomers, and we wanted togenerate loyalty to the STM. Pierre Bourbonniere, Director of Marketing
  69. 69. STM customers willprovide informationabout their interestsand preferences for activities
  70. 70. Retention program for customers
  71. 71. Click here for Story
  72. 72. Real-Time Real-Time Real-TimeInsight Interactions Execution
  73. 73. “You’ve got to start withthe customerexperience and workback toward thetechnology.” Steve Jobs
  74. 74. More than roblema The  P just   Points & CardsCustomer  Loyalty  is  Dead  –  Image  of  loyalty  cards   SYSTEMS Text  “As  we  know  it”  
  75. 75. Do you drive value at each touch point?
  76. 76. Do you understand your customers?
  77. 77. Are your customers hostages or fanatical brand advocates?
  78. 78. I have the power to drivetransformational change
  79. 79. CEM Vision Customer JourneyCore teamPlatforms Brand Advocates
  80. 80. “Do what you do sowell that they will wantto see it again andbring their friends. Walt Disney
  81. 81. VISIT our booth©  2011 SAP AG. All rights reserved. Public 85
  82. 82. Thank You! Feel free in connecting with me @ #nicholask71©  2011 SAP AG. All rights reserved. Public 86
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