Looking Beyond the Transaction:Loyalty In The Time Of The SocialAnd Mobile ConsumerTuesday August 28 1:30pm ET
Speakers                                 Emily Murphy                      Richard Robins                                 ...
Got a Question?Use the Chat window in GoToMeeting to submit your questions  throughout the session; we have left time for ...
What is the current state of loyalty?                                                          Join the conversation on Tw...
Program stats        Loyalty          32% of loyalty        program          program        members make     members      ...
Responsibility for   loyalty falls on the     marketing teamJoin the conversation on Twitter! #BeyondtheTransaction
Loyalty in the organization
Budget support forloyalty programs is       strong
Most programs are supported by smallteams                   Join the conversation on Twitter! #BeyondtheTransaction
Marketers rely onloyalty programs to improve customer  relationships and     experiences                      Join the con...
Customer retention and revenue drive     loyalty efforts                          "What are the top three business objecti...
I                                                                              SAVINGS         When it comes to         pr...
Most programs offer discounts                   "Thinking about your customer loyalty program, which rewards mechanisms   ...
Consumers are most interested in     programs that offer discounts                      "How interested are you in joining...
Consumer attitudes       towards loyalty        programs are          decliningJoin the conversation on Twitter! #Beyondth...
Consumers limit their participation inloyalty programs                     Join the conversation on Twitter! #BeyondtheTra...
The perceived value of loyalty programs     is changing                   "Which of the following describes your attitudes...
Marketers   struggle to set   their programs        apart© 2012 Forrester Research, Inc. Reproduction Prohibited   Join th...
Creating differentiation tops loyalty     marketer challenges                        "What are the greatest challenges fac...
How can emerging channels help                         programs stand out?                                                ...
Loyalty programs turn to social     channels for rewards, conversation,     and awareness                                 ...
Regular loyalty program participantsare more likely to engage                   Join the conversation on Twitter! #Beyondt...
Mobile allows brands to meet the new     terms of consumer engagement     Empowered consumers expect     more from brands ...
Marketers’ plans focus on mobile                       “How would you describe your adoption of the following emerging tou...
So what?        •Loyalty is increasingly a strategic imperative for         brands and budget support is strong        •Di...
What can you do now?     Up Next: Richard Robins on Practical Ways     to Achieve Loyalty Program Differentiation     Thro...
• The value of loyalty programs, as perceived by  consumers, is declining.• Market differentiation of their program is the...
“How can you create adifferentiated offeringand positively impactperception of yourloyalty program?”                Join t...
… BE DIFFERENT• Focus on different objectives from competitors’  programs, or• Aspire to accomplish the same objectives us...
Forrester asked what the top three business objectiveswere for customer loyalty programs. Let’s take the topfive… 1.   Cus...
…now flip them around, and focus on the top three: 1.   Customer acquisition 2.   Customer lifetime value 3.   Engagement ...
Look Beyond the Purchase• Increase your customers’ value by incenting them to  do more than just purchase from you. Extend...
Buyer Behaviors along the Loyalty ContinuumAwareness           Research            Consider               Activation      ...
Advocacy, Referrals and Recommendations• Increase customer acquisition with a customer  advocacy or referral program deliv...
Top 100 eTailer: Customer Acquisition Increased by 98%• Launched a social referral  program to reward existing  customers ...
Take it on the Road.• Leverage mobile devices to facilitate customer  product recommendations, 80% of which happen  offlin...
Top Telecom: Lowering Attrition Rates through Social &Mobile Referrals                                                 •  ...
CPG of Food Products: Gathered Invaluable CI• Aspects of their program include: incents and rewards  purchases, sharing wi...
Socialize Your Program to Drive AwarenessKula Causes makes the act of donating talkable.                                Jo...
Get your members talking to increase awareness andengagement.                           Join the conversation on Twitter! ...
What are your next steps?•   Don’t stop what you’re doing, massive change scares    away customers.•   Accentuate your pro...
About RewardStreamSince 1999, RewardStream has been a leadingprovider of viral marketing, social referral, socialloyalty, ...
Thank You for Joining Us TodayRichard Robins,                   Emily Murphy,VP Client Success                 AnalystRewa...
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Looking Beyond the Transaction: Customer Loyalty in the Age of Social & Mobile

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Looking Beyond the Transaction: Customer Loyalty in the Age of Social & Mobile

  1. 1. Looking Beyond the Transaction:Loyalty In The Time Of The SocialAnd Mobile ConsumerTuesday August 28 1:30pm ET
  2. 2. Speakers Emily Murphy Richard Robins Analyst VP Join the conversation on Twitter! #BeyondtheTransaction© 2012 Forrester Research, Inc. Reproduction Prohibited 2
  3. 3. Got a Question?Use the Chat window in GoToMeeting to submit your questions throughout the session; we have left time for Q&A at the end of the webinarIf we don’t get to your question during the session, please send questions directly to amberlie.denny@rewardstream.com Join the conversation on Twitter! #BeyondtheTransaction
  4. 4. What is the current state of loyalty? Join the conversation on Twitter! #BeyondtheTransaction© 2012 Forrester Research, Inc. Reproduction Prohibited 4
  5. 5. Program stats Loyalty 32% of loyalty program program members make members up 35% of a redeem company’s rewards total customer base Join the conversation on Twitter! #BeyondtheTransaction
  6. 6. Responsibility for loyalty falls on the marketing teamJoin the conversation on Twitter! #BeyondtheTransaction
  7. 7. Loyalty in the organization
  8. 8. Budget support forloyalty programs is strong
  9. 9. Most programs are supported by smallteams Join the conversation on Twitter! #BeyondtheTransaction
  10. 10. Marketers rely onloyalty programs to improve customer relationships and experiences Join the conversation on Twitter! #BeyondtheTransaction
  11. 11. Customer retention and revenue drive loyalty efforts "What are the top three business objectives for your customer loyalty program?" Customer retention 58% Profitability/revenue 48% Engagement 37% Customer lifetime value 33% Customer acquisition 30% Customer data collection 26% Customer experience 25% Customer satisfaction 14% Customer centricity 10% Customer service 5% Competitive threat 1% Base: 81 loyalty program marketers (multiple responses accepted) Source: Q3 2011 Global Loyalty Benchmark Online Survey© 2012 Forrester Research, Inc. Reproduction Prohibited Join the conversation on Twitter! #BeyondtheTransaction
  12. 12. I SAVINGS When it comes to program rewards, it’s all about the discounts© 2012 Forrester Research, Inc. Reproduction Prohibited Join the conversation on Twitter! #BeyondtheTransaction
  13. 13. Most programs offer discounts "Thinking about your customer loyalty program, which rewards mechanisms do you utilize?" Discount-based rewards 51% Experience-based rewards 42% Coupons 38% Service-based rewards 32% Instant wins and sweepstakes 27%Shared products, services, and currencies with partners 25% Cash-back 23% Partner networks 22% Other 6% Base: 81 loyalty program marketers (multiple responses accepted) Source: Q3 2011 Global Loyalty Benchmark Online Survey© 2012 Forrester Research, Inc. Reproduction Prohibited Join the conversation on Twitter! #BeyondtheTransaction
  14. 14. Consumers are most interested in programs that offer discounts "How interested are you in joining the following types of loyalty programs if it were offered by a company you enjoy doing business with?" (4 or 5 on a scale of 1 [not at all interested in joining] to 5 [extremely interested in joining]) Programs that offer instant discounts and savings 63% Points programs that let me redeem my points for products 55% and services Programs that offer printable coupons 40% Points programs that let me redeem my points by 33% spending them in an online shopping mall Affinity programs that donate money to my favorite charity 17% or cause when I make a purchase Base: 3,847 US online adults Source: North American Technographics Retail Online Benchmark Recontact Survey, Q3 2011 (US)© 2012 Forrester Research, Inc. Reproduction Prohibited Join the conversation on Twitter! #BeyondtheTransaction
  15. 15. Consumer attitudes towards loyalty programs are decliningJoin the conversation on Twitter! #BeyondtheTransaction
  16. 16. Consumers limit their participation inloyalty programs Join the conversation on Twitter! #BeyondtheTransaction
  17. 17. The perceived value of loyalty programs is changing "Which of the following describes your attitudes towards loyalty programs?" 2008 2011 2008 2011 2008 2011 54% 2011 2011 2008 50% 2008 37% 33% 31% 29% 21% 22% 22% 15% Most loyalty programs I tend to buy more from Loyalty programs dont When choosing Loyalty programs save dont offer any real the companies whose influence my purchases between two similar me money value programs I join products or services I tend to buy from the one with a loyalty Base: 3,847 US online adults program *Base: 4,802 US online adults (multiple responses accepted) Source: North American Technographics Retail Online Benchmark Recontact Survey, Q3 2011 (US) *Source: North American Technographics Marketing And Mobile Internet Online Survey, Q3 2008© 2012 Forrester Research, Inc. Reproduction Prohibited Join the conversation on Twitter! #BeyondtheTransaction
  18. 18. Marketers struggle to set their programs apart© 2012 Forrester Research, Inc. Reproduction Prohibited Join the conversation on Twitter! #BeyondtheTransaction
  19. 19. Creating differentiation tops loyalty marketer challenges "What are the greatest challenges facing your customer loyalty program today?" Differentiating our program from similar efforts in the 28% marketplaceUnderstanding customer interactions across all touch 27% points Maintaining customer data quality 27% Delivering offers with a high perceived value 26% Ensuring member awareness/understanding of the 25% program and its benefits Base: 81 loyalty program marketers (multiple responses accepted) Source: Q3 2011 Global Loyalty Benchmark Online Survey© 2012 Forrester Research, Inc. Reproduction Prohibited Join the conversation on Twitter! #BeyondtheTransaction
  20. 20. How can emerging channels help programs stand out? Join the conversation on Twitter! #BeyondtheTransaction© 2012 Forrester Research, Inc. Reproduction Prohibited 20
  21. 21. Loyalty programs turn to social channels for rewards, conversation, and awareness More than 80% of US online adults participate socially. Brands look to social to increase awareness. Some programs incentivize social interactions. Join the conversation on Twitter! #BeyondtheTransaction© 2012 Forrester Research, Inc. Reproduction Prohibited
  22. 22. Regular loyalty program participantsare more likely to engage Join the conversation on Twitter! #BeyondtheTransaction
  23. 23. Mobile allows brands to meet the new terms of consumer engagement Empowered consumers expect more from brands Mobile technologies increase the number of opportunities to engage members. Location-based services lead to non-transactional rewards. Join the conversation on Twitter! #BeyondtheTransaction© 2012 Forrester Research, Inc. Reproduction Prohibited
  24. 24. Marketers’ plans focus on mobile “How would you describe your adoption of the following emerging touch points for loyalty marketing activities?” Planning to pilot/adopt Currently using Mobile applications 40% 22% Mobile website 37% 26% 2D barcodes 35% 11% Tablet computing 31% 11% Mobile messaging 28% 22% Social networks 28% 40% User generated content 27% 22% Gamification 20% 9% Kiosks 14% 9% Join the conversation on Twitter! #BeyondtheTransaction© 2012 Forrester Research, Inc. Reproduction Prohibited 24
  25. 25. So what? •Loyalty is increasingly a strategic imperative for brands and budget support is strong •Discounts are king, but marketers struggle to create programs that stand out •Social, mobile, and location-based services provide loyalty marketers with a greater opportunity to provide relevant offers and real value to consumers© 2012 Forrester Research, Inc. Reproduction Prohibited Join the conversation on Twitter! #BeyondtheTransaction 25
  26. 26. What can you do now? Up Next: Richard Robins on Practical Ways to Achieve Loyalty Program Differentiation Through Acquisition and Engagement Join the conversation on Twitter! #BeyondtheTransaction© 2012 Forrester Research, Inc. Reproduction Prohibited 26
  27. 27. • The value of loyalty programs, as perceived by consumers, is declining.• Market differentiation of their program is the greatest challenge for loyalty marketers.• Loyalty marketers have pegged mobile and social as key emerging tactical areas for their loyalty programs. Join the conversation on Twitter! #BeyondtheTransaction
  28. 28. “How can you create adifferentiated offeringand positively impactperception of yourloyalty program?” Join the conversation on Twitter! #BeyondtheTransaction
  29. 29. … BE DIFFERENT• Focus on different objectives from competitors’ programs, or• Aspire to accomplish the same objectives using different methods Join the conversation on Twitter! #BeyondtheTransaction
  30. 30. Forrester asked what the top three business objectiveswere for customer loyalty programs. Let’s take the topfive… 1. Customer retention 2. Profitability and revenue 3. Engagement 4. Customer lifetime value 5. Customer acquisition Join the conversation on Twitter! #BeyondtheTransaction
  31. 31. …now flip them around, and focus on the top three: 1. Customer acquisition 2. Customer lifetime value 3. Engagement 4. Profitability and revenue 5. Customer retention Join the conversation on Twitter! #BeyondtheTransaction
  32. 32. Look Beyond the Purchase• Increase your customers’ value by incenting them to do more than just purchase from you. Extend your program to include other valuable behaviors, like social sharing, reviews, comments—and more. Join the conversation on Twitter! #BeyondtheTransaction
  33. 33. Buyer Behaviors along the Loyalty ContinuumAwareness Research Consider Activation Engagement• Marketing & • Advice from • Sign up for a • Make purchase • Loyalty and Advertising Friends, Family trial advocacy • Sign up for• Referral from a • Visit brand • Visit service • Referrals satisfied website competitors’ customer sites • Promotional • Share • Read reviews & offer•Recommendatio consumer • Price/Service • Comment on a ns through a opinions comparison • Become a social network trusted network member • Join a fan page • Repeat Purchase Join the conversation on Twitter! #BeyondtheTransaction
  34. 34. Advocacy, Referrals and Recommendations• Increase customer acquisition with a customer advocacy or referral program delivered via social media• Trust is the new currency: Get people talking about you—if it’s something they’re excited about, moved by, passionate about make it easy for them to share that with friends and family Join the conversation on Twitter! #BeyondtheTransaction
  35. 35. Top 100 eTailer: Customer Acquisition Increased by 98%• Launched a social referral program to reward existing customers for recommending the company to friends and family• Customers share coupon offers over social channels – it’s easy• In the quarter after launch, the program was responsible for … Join the conversation on Twitter! #BeyondtheTransaction
  36. 36. Take it on the Road.• Leverage mobile devices to facilitate customer product recommendations, 80% of which happen offline.• By taking advantage of mobile, you can allow your customers to refer your brand whenever, wherever they are “in the moment.” Join the conversation on Twitter! #BeyondtheTransaction
  37. 37. Top Telecom: Lowering Attrition Rates through Social &Mobile Referrals • Acquire new customers through customer and employee referrals • Mobile and web-based social sharing program • SMS, email, in-store and in-pack awareness • Building relationships with prepaid customers • Lower attrition rate over other acquisition methods Join the conversation on Twitter! #BeyondtheTransaction
  38. 38. CPG of Food Products: Gathered Invaluable CI• Aspects of their program include: incents and rewards purchases, sharing with friends, referrals, participating in polls, surveys, contests.• Catalog offers items that customers LOVE (and keep coming back for).• Utilizes badges and leveling as a way to keep customers engaged long-term.• Leverages surveys and polls to improve CI.“This program is a great example of how a brand took thebasics of traditional loyalty and married in some newelements – such as sharing, referring and badging – tocreate a highly engaging program that is exceeding bothits member and its business owner’s needs.” Join the conversation on Twitter! #BeyondtheTransactio Join the conversation on Twitter! #BeyondtheTransaction
  39. 39. Socialize Your Program to Drive AwarenessKula Causes makes the act of donating talkable. Join the conversation on Twitter! #BeyondtheTransaction
  40. 40. Get your members talking to increase awareness andengagement. Join the conversation on Twitter! #BeyondtheTransaction
  41. 41. What are your next steps?• Don’t stop what you’re doing, massive change scares away customers.• Accentuate your program with fresh ideas. Utilize initiatives like a social referral program, social sharing and comments to name a few.• Use polls and surveys to increase customer intelligence on your website and social properties.• Experiment. Take a step-wise approach. Change doesn’t have to be massive to move the needle.
  42. 42. About RewardStreamSince 1999, RewardStream has been a leadingprovider of viral marketing, social referral, socialloyalty, traditional loyalty and engagement solutionsfor some of the world’s most esteemed brands.Spark™ is a viral marketing & social referral solutionpowered by the trusted recommendations of happy,satisfied customers.• Makes it fast and easy to recommend a brand through referrals and generates interaction with customers• Delivers insight into the recommendation lifecycle. Track impressions, referrals, shares, referrals by channel, conversions and more
  43. 43. Thank You for Joining Us TodayRichard Robins, Emily Murphy,VP Client Success AnalystRewardStream Forrester ResearchDirect: 604.282.7554 Direct:617.901.4944richard.robins@rewardstream.com emurphy@forrester.comwww.rewardstream.com www.forrester.comSocialize with us! facebook.com/RewardStream @RewardStream

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