The document discusses the importance of customer loyalty in business, emphasizing that satisfied customers do not always equate to loyalty, which is demonstrated through repeated purchasing behavior. It outlines the need for companies to meet customer expectations and create value propositions to improve retention and reduce churn. Additionally, it highlights the necessity of integrating marketing and technology, developing effective loyalty programs, and utilizing data-driven campaigns for long-term success.

1. BUILDING
CUSTOMER
LOYALTY
“If people believe they
share values with a
company, they will stay
loyal to the brand.”
Presented By:
Shobhita Dayal
MBA (M&S)

2. NAME OR LOGO
The Customer is that person
or Institution that makes a
demand for your products or
service offering.
A Customer is the target for
specific products or service and
helps add value to an enterprise
through the demand he / she
makes of specific offerings.
The Customer is the most
crucial actor in the marketing
process because there can be
no marketing without the
Customer.
Who is the customer?
“Your most unhappy customers are your
greatest source of learning.” -Bill Gates
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3. NAME OR LOGO
What does the
Customer want?
Just having satisfied customers isn't good
enough anymore. ..
Satisfaction
The
CUSTOMER
seeks for the
satisfaction of his
/ her needs in the
market.
Return for Profit
The
PRODUCERS of
goods and
services seek to
satisfy the desire
of Customers for
value in return
for profit.
Value
The
CUSTOMER
demands the
value inherent in
the consumption
of products or
services and also
gives value to the
PRODUCER in
the process.
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4. NAME OR LOGO
CRM: The New Reality
Customer Loyalty is crucial in
the drive at year on year profit.
For a company to stay solvent
and profitable, it must manage
its customer churn rate and
increase its customer retention
capacity.
To drive this strategic intent,
Companies must court the
Customer by meeting or
surpassing his expectations
through availing the Customer a
robust value proposition well
beyond the competition.
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What is Customer
loyalty?
“Make a customer, not a sale.”
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Customer loyalty
describes the
tendency of a
Customer to choose
a product or service
over another. Note
the use of the word
"choose" .
customer loyalty
becomes evident
when choices are
made and actions
taken by
Customers.
Customers may
express high
satisfaction levels
with a company in
a survey, but
satisfaction does
not equal loyalty.
Loyalty is
demonstrated
by the actions
of the
Customer;
Customers
can be very
satisfied and
still not be
loyal.

6. NAME OR LOGO
There are many reasons why a customer repeats purchasing which have
little to do with being really loyal. Consider the following:
There is a
contractual
arrangement with
your company.
It takes too much
effort or money to
change suppliers.
You are currently
the low cost
provider.
Their relationship is
with one of your
employees and not
with your company.
Habits are hard to
break, They may
actually be in the
process of finding
an alternative
supplier.
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Loyalty Ladder
A new way to engage with customers
from across the globe.
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Loyalty Ladder
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Loyalty Ladder
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Loyalty Ladder
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Loyalty Ladder
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Loyalty Ladder
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Loyalty Ladder
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14. NAME OR LOGO
Types of Loyalty
There are five different types of loyalty that how loyal a consumer is to a brand is based on a variety of factors,
but there tends to be common traits we see in each group.
01
No Loyalty
03
Premium Loyalty
Inertia Loyalty
02 04 05
Reciprocal Loyalty
Latent Loyalty
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Loyalty Circle
“Assumptions are the termites of relationships.” – Henry
Winkler

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Building Customer Loyalty
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The Shape Shifter
Lawrence of
Arabia didn’t
always ride a
camel!
Your customers
will constantly
surprise you
Customer
Knowledge is
competitive
advantage

18. NAME OR LOGO
Leveraging Customer Knowledge
○Scoring and segmentation,
propensity models, churn
analysis, satisfaction scores,
lifetime value metrics, Store
scoring, market basket,
exceptions…
Notes:
○ There’s a load of analytical approaches
beyond RFM for retailers wishing to leverage
customer knowledge. Not all of these appear
to be easy to adopt and marketers shun
analytics more out of a lack of understanding
of what it can do for them. Get the experts in,
listen to them – you’ll find that there’s ROI in
it for you.
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The Painter
Customer flight is
inevitable unless you can
paint yourself into their
picture
Build fences, increase their
switching cost
Bottomline: Get your
concept right

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Getting the Concepts Right
Objectives, metrics, software,
membership, tiers, rules &
processes, earn-burn,
rewards, benefits,
communication, helpdesk,
partners, ROI, budgets…
Notes:
○ Building a loyalty program concept requires
not just sound strategic thinking, but loads of
rigor. The success lies in being able to detail
out solutions to over 100 decision points that
a loyalty program concept needs to cover. You
cannot be reacting to situations as they
happen!
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The Card Magician
It’s more than a
card trick
Loyalty
programs are a
proven way to
capture
customer data
and prevent
customer flight
It’s about
building
relationships
and increasing
LTV, not just
launching a
card

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The Loyalty Card
Smart card, RFID, Magnetic
stripe, bar code card, affinity
cards, card variants, co-
branded cards, card readers,
carding…
Notes:
○ The loyalty card is the most familiar face of a
loyalty program. There are many options here
as well, but the key point is that launching a
card does not a loyalty program make. This
space is littered with failed programs that
were launched as a card and little else.
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The Neuromancer
If marketing and IT don’t
shake hands, you might as
well hang up your loyalty
boots
Technology integration is
crucial to success

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IT and the Program
Loyalty software, CRM
software, analytical CRM
software, marketing
database, POS integration,
liability tracking, points
banking, campaign mgmt…
Notes:
○ The software on which your program depends
needs to be designed carefully, and should
handle all aspects of your program. Retail
POS solutions often offer a basic loyalty
module – these are usually inadequate! The
point: Don’t design your program to fit the
software.
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The Band
You need superheroes
skilled in marketing,
technology, and analytics.
It takes teams that are
nurtured and last.
It takes patience and top
management buy in

26. NAME OR LOGO
The Loyalty Manager
Loyalty manager, loyalty
agency, CRM consultant, IT
team, Software developer,
events & promotions team,
rewards team, creative
agency...
Notes:
○ The team that drives the program internally
needs to be composed of skills that are
difficult to find in any market. Direct
marketing, CRM and Loyalty skills need to be
nurtured and the team needs top
management support. Importantly, you will
need to rely on the right partners to come in
with specific skills.
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The Campaigner
Loyalty
programs throw
up a wealth of
data driven
campaigns
Good campaign
management
allows you to
handle hundreds of
segments and
communications
simultaneously

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Campaign Management
Campaign calendar, welcome
kit, statements, coupons,
day-part based, cross sell,
activation, churn prevention,
win-back, relationship
building…
Notes:
○ Campaign management practices are better
established amongst the banks than retailers,
but here is where the real pay-off is. Leverage
campaign management tools as they will
allow you to run hundreds of targeted
campaigns which really do pay off, as
compared to a few festival offers and generic
promotions.
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The Time Keeper
Building loyalty takes
money, time and patience.
Assume it will take you 2-3
years to truly reap benefits.
You’re in it for the long
run, aren’t you?

30. NAME OR LOGO
A Matter of Patience
Points liability, breakage, ROI,
enrolment, member base,
activity levels, satisfaction
scores, incremental
revenues, wallet share,
referrals
Notes:
○ Set expectations right. To launch a program
AND expect a jump in sales within 6 months
is pushing it. Building up a quality member
base (no mass enrolments), setting up the
back end, campaign management – these all
take time and effort, and the metrics to
measure success take time to show the
returns.
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31. Thank
You
Shobhita Dayal
www.linkedin.com/in/shobhita-dayal