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Keeping the excitement with your customers

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Presentation from the Customer Loyalty Conference & Expo (Manila, Sept 28 2012)

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Keeping the excitement with your customers

  1. 1. 28.09.12 Keeping the Excitement with your Customers Global Loyalty Solutions
  2. 2. Loyalty Landscape 2 are members of at 92% least one program 6.4 / person Maritz Loyalty Insights (2012) 1,673,000,000 members 5.4 / person 14 (6 active) / household Colloquy Copyright 2012 © - Welcome Real-time
  3. 3. Loyalty Programs are now a Commodity 3 Copyright 2012 © - Welcome Real-time
  4. 4. Raising Perception NOT Costs 4 “Price is what you pay. Value is what you get.” Warren Buffett Loyalty is driven by ‘emotion’ not ‘rationale’ The right types of reward have a perceived value that far outweighs the underlying cost Copyright 2012 © - Welcome Real-time
  5. 5. Drive Excitement by Giving More? 5 Copyright 2012 © - Welcome Real-time
  6. 6. Rewards must be Attainable 6 Rewards if not attainable, will lead to reduced engagement and ultimately defection "69% of the people surveyed said they left a loyalty program because it took too long to earn enough points to get a reward” Maritz Loyalty Track Survey (Nov 2003) Reasonable months-to-earn average: 1 2 3 4 5 6 7 8 9 10 11 12 1,000 respondents 20% 37% Maritz Loyalty Track Survey (Oct 2004) Copyright 2012 © - Welcome Real-time
  7. 7. Experiential Rewards 7 “We don’t remember days; we remember moments.” Cesare Pavese Reward program members who have redeemed for experiential rewards are 30% more likely to be WOM Champions than those who have redeemed for discounts Copyright 2012 © - Welcome Real-time Colloquy
  8. 8. Lucky Draws 8 Excite customers by giving them the chance to win something ‘desirable’ Copyright 2012 © - Welcome Real-time Fixed reward cost!
  9. 9. Auctions 9 Stir up competition, by auctioning off highly sought after rewards that ‘money cannot buy’ Stand a chance to We’re auctioning off win EXCLUSIVE VIP a PRICELESS F1 backstage passes driving experience Dramatically increase Increase customer the perceived value engagement by creating a with rewards that competitive environment ‘money cannot buy’ Copyright 2012 © - Welcome Real-time
  10. 10. Selfless Rewards 10 Harness ‘causal’ drivers to give customers a community-based collective goal HSBC Green Roof for Schools Leverages on social More appealing to customers pressure to encourage who do not see the value in continued participation traditional loyalty rewards Copyright 2012 © - Welcome Real-time
  11. 11. Differentiated Rewards 11 Originally the exclusive domain of airlines, ‘Status Programs’ are now common place in other sectors Flat vs. Tiered ‘Status Tiers’ are an effective way of introducing ‘Soft benefits’ for premium customers, whilst at the same time creating ‘aspirational drivers’ for lower-tier customers “A three-tier program (e.g. Gold, Silver, and no-status) is more satisfying to all involved than a two-tier program (Gold and no- status), even to those who do not qualify for elite status” Dreze and Nunes (2009) Copyright 2012 © - Welcome Real-time
  12. 12. Perception of Status Programs 12 82.5% ranked ‘Chain C’ as the most popular 71.4% of the ‘No Status’ participants prefer the program that “If you create an elite tier, has 2 elite tiers! it is better to create two” Copyright 2012 © - Welcome Real-time Dreze and Nunes (2009)
  13. 13. Status Programs by Industry 13 Airlines Hotels Car Rental Others Copyright 2012 © - Welcome Real-time
  14. 14. Reward Timing: Immediate vs. Delayed 14 “With a scheme based on rewards-on-demand you may get an increase in behavioural-loyalty but it won’t go any further; there’s no opportunity to extend emotional loyalty.” Scoring Points: How Tesco Continues to Win Customer Loyalty (Clive Humby) “delayed rewards in a loyalty program have a significant impact on customer loyalty, whereas one-shot promotional features do not” Leenheer and Bijmolt (2008) “delayed rewards work better than immediate rewards only if customers are satisfied with their experience” Hu et al. (2010) Copyright 2012 © - Welcome Real-time
  15. 15. Engage Customers Socially 15 Harness social networks to open rich and diverse two-way communication channels with customers Actively encourage customer interaction Avoid the tendency to over-promote Copyright 2012 © - Welcome Real-time
  16. 16. Help Customers Share Their Excitement 16 Self-described WOM Champions 55% Likelihood of an ‘active’ member being a WOM Champion 3x Colloquy People are more likely to trust a recommendation from a friend Copyright 2012 © - Welcome Real-time AHAlife / Twitter
  17. 17. Social Media is not a Quick-Win Solution 17 Copyright 2012 © - Welcome Real-time
  18. 18. The Power of Postcards 18 How a UK-based Charity slashed donor attrition rates using Postcards Attrition rate after 6 months halved! Copyright 2012 © - Welcome Real-time Rapidata Case Study
  19. 19. Communication: Old is New 19 Sometimes it’s the little things in life that count the most Johnny the bagger Copyright 2012 © - Welcome Real-time
  20. 20. Look for compelling Quick Wins 20 Stay ‘front-of-mind’ by giving your customers easy and up-to-date access directly from PassBook Loyalty Card (Balance) Coupons / Vouchers Copyright 2012 © - Welcome Real-time
  21. 21. Welcome Real-Time Overview
  22. 22. 15 Years of Experience in Loyalty 22 > 20 live projects across 5 continents. > 14 different spoken languages > Local presence in 30+ countries (direct or via partners) Aix-en-Provence (France) Singapore Sao Paulo 300,000 daily loyalty transactions between1+ Million Retailers and 2011 live projects 50+ Million consumers. Copyright 2012 © - Welcome Real-time
  23. 23. Products Overview 23 Online redemption Push offers Real-time customer interaction @ Payment PC & tablets version Smart phone version E-Wallet + integration Media Integration Internet payment POS Loyalty scheme App Welcome Loyalty ePOS Engine Loyalty Scheme Merchant Analytics Management Portal Portal Portal Applications used by the loyalty scheme operator / the issuer Application used by Merchants Copyright 2012 © - Welcome Real-time
  24. 24. Sample References 24 Retail Banking Payment Processors Partners and Operators Copyright 2012 © - Welcome Real-time
  25. 25. Thank you for your attention www.welcome-rt.com © 2012 Welcome Real-time. All rights reserved. Content in this presentation is provided for general information purpose only and is owned by Welcome Real-time. It does not constitute a contractual document and may be amended or updated by Welcome Real-time from time to time. This content shall not be copied or reproduced or otherwise used for any reason, except for your own business purposes and/or personal use.

Editor's Notes

  • Welcome Real-timeCover slide
  • Survey of 143 people
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