This document discusses how to build customer loyalty through smart analytics. It emphasizes measuring loyalty at different stages from awareness to advocacy. Key metrics mentioned include the engagement funnel, net promoter score, and sentiment analysis. Customer perspectives should be understood to identify what drives loyalty for different demographic segments. The document also introduces the BETS framework to guide strategic decisions around building, engaging, treasuring, and sustaining customers based on their contribution and growth potential in different markets. Building loyalty requires continuously measuring engagement and sentiment to understand customer needs and address issues that detract from loyalty.

1. Breeding Loyalty
Through Smart Analytics

2. How do you define loyalty?

3. The Loyalty Funnel
volume spend
frequency

4. Everything you do to build loyalty?

5. Loyalty Builders
previews

6. Is this what delights customers?
…enough to make them love you exclusively!

7. Loyalty breeds loyalty
Some sterling examples

8. Why is Amazon such a loved brand?
provides an inexpensive, reliable storage option
Since implementing the on board Intranet, we have
gained agility and improved time-to-market
focused on solving the specific needs ….allows us
to have virtually unlimited capacity while only paying
for what we use without upfront investments

9. Why is Apple making incredible profits?
Creativity Every
HIRING Simplicity
from every detail
POLICY isn’t simple
corner matters
It means forever asking, “Why is it this way?” and “How can it be better?” It
means rethinking every customer experience until the clutter has fallen away
Apple® announced iBooks® for iPad®, featuring iBooks textbooks, an entirely
new kind of textbook that’s dynamic, engaging and truly interactive

10. India’s most loved brands
available
aspirational
pioneer
guarantee

11. Knowing your customer’s perspective

12. Two different points of view
Reward points
Claiming points can be a grind
YOU SAY
THEY SEE
Mix of cynicism & joy = adulterated loyalty

13. The need to measure loyalty

14. Knowing the stepping stones to loyalty

15. How do you stack up?
Engagement Funnel
Exclusive Love
One of my Favorites
Will consider
sometimes
Last option
Never Consider
Aware
Consider
Use
Favorite

16. An example of how you drive loyalty?
Driver Analysis Loyalty Drivers for You Skews in Profile
Bank That Works In Many Profile similar to general population.
Suggests the communication have been
Aware Countries equally well received by all demographic
Makes Me Feel Successful segments
Would Trust My Money In
Consider This Bank
Makes Me Feel Confident
EER^
Engagement
Erosion Rate Bank With 24/7 Access Via - Older, less employed, married
Use Internet/Phone Geographically skewed towards
Geography 1, 2 ,4 & 7
Makes Me Feel In Control
Is Easy To Deal With
Makes Me Feel Optimistic
To deepen engagement convey confidence & trust

17. Measuring customer endorsement
Net Promoter Score: NPS
Detractors Passives Promoters
18-25 year olds 15% 44% 41%
26-35 year olds 45% 23% 32%
36-45 year olds 40% 33% 27%
The younger TG is more loyal

18. Actioning basis customer speak
Sentiment Analysis Overall You Competitor
Any Passives on hours of operation 10% 2% 8%
Your loyal base is
under threat from
Positive Promoters on Range of products 2% 1% 7% your competitor’s
locational
18-25 year old Promoters on convenience of convenience
2% 1% 10%
locations
36-45 year old Detractors on number of location
20% 9% 35%
Your competitor has
a clear edge in
26-35 year old Promoters on speed of service 3% 0% 10% terms of product
range
To safe guard your loyal base of 18-25 year olds relook locations
To attract your less loyal 36-45 yr olds need to build product range

19. BFSI Growth Strategies: The BETS Framework
Financial BETS TM
Financial BETS Strategy
Recruit new customers
B Build
Market where contribution of customers (accounts) under-indexes
Engage customers to transact more
E Engage More Market where contribution of customers (accounts) over-indexes while Revenue
contribution under-indexes
Focus on safeguarding position against competition
T Treasure High growth markets where contribution of customers (accounts) as well as Revenue
contribution over-index
Maintain status quo
S Sustain Stagnant or declining markets where contribution of customers (accounts) as well as
Revenue contribution over-index
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20. BETS Strategy Map for a Global Bank
Sophisticated Non-Sophisticated
Products Overall Geography 1 Geography 2 Geography 3 Geography 4 Geography 5 Geography 6 Geography 7 Geography 8
Credit Cards E B E T E T B E S
Deposits B S T S E B S B B
Investments E E T B B E B B B
Loans B T T B B S B B S
Mortgages E S S S B B B B B
20

21. Implications for Loyalty Breeders
Summing up

22. Measure, Measure, Measure
• Engagement Funnel
• Driver Analysis
• Net Promoter Score
• Sentiment Analysis
• Financial BETSTM

23. Don’t lose the consumer perspective
This is your customer number, a
number that’s all your own and
identifies you as a person to us.

24. Loyalty – Let’s stick with it!