Customer Experience Management (CEM) Keynote at the New York Loyalty Marketing and FFP Spring 2011 Conference, by Rainer Uphoff
See also blog entry:
http://ourpax.com/tools/from-crm-to-cem-monetizing-real-loyalty/
or
http://ourpax.com
1. From CRM to CEM:
It’s all about
Customer
Experience
Rainer Uphoff
avionline consulting
2. THE BASIC LAWS OF LOYALTY
Loyalty is…
…paying more,
despite competitors’
discounts & freebies
3. THE BASIC LAWS OF LOYALTY
Loyalty is NOT…
…having no choice
…buying at a discount
…inertia
4. THE BASIC LAWS OF LOYALTY
Neither is loyalty…
…being loyal to
2 (3,4,…) parties
“Didn’t you get my email?”
AFTER CELEBRATING 30 YEARS OF FFP,
WHY ARE YOUR CUSTOMERS
CHEATING ON YOU MORE THAN EVER?
13. THE COMMODITY THREAT
LOYALTY is
KEY to SUCCESS:
A SATIFIED customer
is NOT more loyal…
…COMMODITIES ACTUALLY DO SATISFY!
BUT ONLY THE COST LEADER CAN MAKE MONEY
14. THE COMMODITY THREAT
There can be only
ONE cost leader
selling “the perfect
commodity”
15. THE COMMODITY THREAT
The rest needs to
DIFFERENTIATE and
create VALUE beyond
PRICE
16. IN THE “MATERIAL” WORLD WE RECOGNIZE
VALUE IMMEDIATELY. DO YOU PREFER…
This?
PRICE: or “that”?
≈9 $/€
VALUE:
!?!
28. THE COMMODITY THREAT
R
E
C
P O
O
Cost- G
I Premium
conscious N
N customers customers
I
T T
S I
O
N
29. CRM+CEM = MARRIAGE MADE IN HEAVEN
REASONS
C
FEELINGS
PRICE
C L OYALTY
MILES
R E H APINESS
FEATURES M ML OVE
AWARDS BUSINESS CONCIERGE BUSINESS
30. FTPS: THE REAL CHALLENGE
POINTS are a RECOGNITION
COMMODITY. generates “priceless
VALUE”.
A REWARDS oriented A RECOGNITION
program must oriented program
a) be cost leader must be a “mass
b) be generosity customization
leader to be leader” (technology
competitive and service)
38. CEM analysis (persona based)
CEM helps to make the loyalty marketing
investment more precise
39. LONG TERM PROFIT ANALYSIS
CEM acts on customer equity, creating
long term value.
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41. IT’S TIME TO INNOVATE!
Get Loyalty
Marketing deeply
routed in the
corporate strategy.
Get the corporate
strategy deeply
rooted in what
customers VALUE.
Know what
customers value.
42. CEM TOOLS:
VALUE GENERATING INNOVATION
Lucy García!
Eye surgeon @ 3 hospitals!
41 years, married, 3 children. !
Here mom lives with them.!
• 17 business trips/year !
(she pays: price sensitive)!
• 3 family trips/year!
Loves 2x1 offers for husband
Customer Journey ECG
or kids going with her!
Hates overnight trips!
Objectives,
scope &
Customer
segment
Hates checking in baggage!
!
journey type
Moments
of truth
Key
Key journey
Journey
stepsSteps
Great
+100
Custom
er
Satisfac
tion
Rating
-100
Poor
Levers for
43. 1. CEM FOR FTP USERS: AIRLINES, HOTELS,…
Use CEM to get the loyalty
marketing and FTP tied into the
core customer strategy.
Use CRM to provide CEM with
basic VoC
44. 2. CEM FOR FTP PROVIDERS/OPERATORS
Use CEM to find out
what customers
really VALUE
Help your customers
to de-commoditize
Integrate both
halves of the brain
into a single offering
Tribute to the
pioneers
45. 3. CEM FOR FTP IT PROVIDERS/DEVELOPERS
Help your customers to
innovate
Do the CEM homework to
create functions that
SUPPORT the intoduction
of new, higly valued
functions
Overheated buzzword,
but still important: SM
49. LAW PROPOSAL
Arquitects, lawyers, doctors and
FTP designers MUST use their
own product for at least year
Let employees get miles and
status with ID tickets!!!
• Managers will finally notice the
stupid rules
• Employees will finally understand
why customers buy crazy routes