How do you encourage customers to repeatedly choose your brand in the face of alternatives? This is the question we posed at our executive retail breakfast series in London, Manchester and Hamburg this month.

1. Moving Beyond Loyalty Programs
TOWARDS REAL LOYALTY

2. 2
LOYALTY IS AN EMOTION

3. …SO WHY DO WE TREAT IT
LIKE A TRANSACTION?

4. WE HAVE BECOME VICTIMS OF HISTORY AND HABIT
1700s
COPPER TOKENS
1800s
COUPONS
1930s - 70s
TRADING STAMPS
1980s
DEREGULATION
1990s
DIGITIZATION
2000s
MOBILE
TOOLS

5. -1%
revenue
growth
DONE WRONG =
RISK MARGINS
-10%
lower
EBITDA

6. ONE SIZE
DOES NOT FIT ALL

7. DOING THE SAME AS OTHERS LEADS TO FAILING IN THE SAME WAY
Customer
engagement
ROI over
time

8. SO.. WHAT COULD
BE DIFFERENT?
HOW TO SHAPE
YOUR FUTURE?
WHERE DID IT GO
WRONG?

9. A NEW APPROACH: “WHOLE BRAIN” UNDERSTANDING OF LOYALTY
TRUST HABITAFFINITY

10. CONSISTENCY BUILDS TRUST
ANTICIPATETEST DELIVER RETEST REINFORCE DELIGHT

11. EXPERIENCES BUILD AFFINITY
Focused
on tasks
Focused on
experiences
FEW PROGRAMS
CROSS THIS LINE
MEANINGFUL
PLEASURABLE
CONVENIENT
USABLE
RELIABLE
FUNCTIONAL

12. PATTERNS BUILD HABIT
Action
Reward
Trigger

13. MOVING BEYOND THE TRADITIONAL APPROACH
TransparentRelevant
Contextual
Human
Centered
Connected

14. CONTEXTUAL

15. PLACE
PURPOSE

17. IDENTIFY CATALYSTS FOR NEW HABIT BUILDING
TIME
DEGREEOFCOMMITMENT
Traditional programs
Experimentation
Moments of delight

18. 18
TRANSPARENT

19. HOW DO YOU USE
WHAT YOU KNOW
ABOUT ME?

21. EXPERIENCESCHOICESAVINGS PRESTIGEADVICEAUTONOMY
RELEVANT

24. 54%More spend
2xMore referrals
83%More Engaged

25. CONNECTED

26. LOYALTY IS AN EMOTION
A crowd is a tribe without a leader.
A crowd is a tribe without communication.
Most organisations spend their time marketing the crowd.
Smart organisations assemble the tribe.
SETH GODIN

27. 27

29. Insight
Engage
Anywhere/
Everywhere
Respond
at moment
of impact
Big Data
Mobility
Cloud
Insight Engagement
Responsiveness

30. SO.. WHAT COULD
BE DIFFERENT?
HOW TO SHAPE
YOUR FUTURE?
WHERE DID IT GO
WRONG?

31. Customer
Experience
Organizational
Capability

32. Standard, static
program
Long cycles,
then relaunch
BEYOND “ONE AND DONE” PROGRAMS
Traditional Approach
IDEA
STREAMS
INNOVATION
CAPABILITY
BUILD, TEST &
LEARN
GO
STOP
PIVOT
Continuous Loyalty

33. CREATE THE PLATFORM FOR EXPERIMENTATION AND GROWTH
Concept
Ideas and
prototypes
Explore with
customers
Pilot
Few segments/
sites
Continue learning
Scale up
Refine and
expand
Manage capacity
Rollout
Loyal, free
and paid
Mainstream
Evolve
Becomes
commodity
Change the game

34. 34

35. ALIGNING THE DIMENSIONS IS LIKE TETRIS
Organizational CapabilitiesCustomer experience

36. Customer experience
ALIGNING THE DIMENSIONS IS LIKE TETRIS: STEP 1

37. 37
75 HAMBURGERS A SECOND

38. 38
VALUE IS CREATED BY
OUTCOMES

39. DOUBLE DIAMOND
understand define explore create
FIND SOLVE

40. 40
FIND THE NEED

41. EXPERIENCESCHOICESAVINGS PRESTIGEADVICEAUTONOMY
RELEVANT

42. DOUBLE DIAMOND
understand define explore create
FIND SOLVE

43. DESIGN EXPERIENCES FOR
OUTCOMES

44. 44
CREATE A SOLUTION
HYPOTHESIS

45. 45
BUILD - MEASURE - LEARN

46. 46
CONTINUITY

47. ALIGNING THE DIMENSIONS IS LIKE TETRIS
Organizational
Capabilities
Organizational
Design
IT
Customer
Experience
AND THERE ARE MORE THAN 2 PIECES

48. YOU NEVER KNOW WHAT IS
GOING TO HIT YOU NEXT

49. 49
A KATA FOR EVERY PIECE

50. IMPROVEMENT KATA BY TOYOTA

51. THE PATH TO CONTINUOUS LOYALTY
Baking innovation
into the mindset
and culture of your
brand and people
Creating a
capability that
evolves with your
customers over
time
ITERATE

52. • Not all customers are created equal. Avoid over-
investing by being all things to all people
• Value is variable. Customers value more than money.
Successful programs depend on understanding the right levers
• Experience matters. Moments of connection and
relevance create habits that drive repeat behavior
• Test, learn, repeat. Design for iterative tests and take
advantage of test data for continuous delivery and refinement
TAKE-AWAYS

53. THANK YOU
Dianne Inniss
@dianne_tweets
dinniss@thoughtworks.com