Get Loyalty Smart - Sectors of Opportunityemmersons1
Brands are starting to rethink what loyalty means for their customers, and this week, we look at a the range of strategies that different sectors are adopting.
Behavioral loyalty is at the core of most loyalty programs today. Customers make a purchase or provide information in exchange for a reward. This is as valuable today as ever, but it’s also no longer enough. In addition to rewarding customers for transactions and information, companies also need to reward customers for interactions—specifically, social interactions that translate to engagement and advocacy. In other words, organizations must find creative ways to use their loyalty programs to foster attitudinal loyalty; to build and capitalize on the emotional connections engaged customers have with their preferred brands.
This presentation discusses the benefits and drawbacks of rewarding customers for such behaviors and transactions and information sharing, as well as the challenges and opportunities of rewarding customers for actions that show genuine engagement and advocacy. It also examines the competitive advantage companies can create by building a loyalty program that rewards customers for all three, as well as how to do so
Insights from the Maritz Motivation | Wise Marketer Loyalty Landscape Study Maritz Motivation
70% of customer loyalty is constantly up for grabs. What does this mean for your business? Find out other key insights from the Maritz Motivation | Wise Marketer Loyalty Landscape Study.
Three companies are using the web and the most advanced technologies to disrupt loyalty programs. How will internet, software-as-a-service (Saas), blockchain, predictive technologies, mobile beacons, NFC, reshape the loyalty and rewards programs into the new Fintech era?
Get Loyalty Smart - Sectors of Opportunityemmersons1
Brands are starting to rethink what loyalty means for their customers, and this week, we look at a the range of strategies that different sectors are adopting.
Behavioral loyalty is at the core of most loyalty programs today. Customers make a purchase or provide information in exchange for a reward. This is as valuable today as ever, but it’s also no longer enough. In addition to rewarding customers for transactions and information, companies also need to reward customers for interactions—specifically, social interactions that translate to engagement and advocacy. In other words, organizations must find creative ways to use their loyalty programs to foster attitudinal loyalty; to build and capitalize on the emotional connections engaged customers have with their preferred brands.
This presentation discusses the benefits and drawbacks of rewarding customers for such behaviors and transactions and information sharing, as well as the challenges and opportunities of rewarding customers for actions that show genuine engagement and advocacy. It also examines the competitive advantage companies can create by building a loyalty program that rewards customers for all three, as well as how to do so
Insights from the Maritz Motivation | Wise Marketer Loyalty Landscape Study Maritz Motivation
70% of customer loyalty is constantly up for grabs. What does this mean for your business? Find out other key insights from the Maritz Motivation | Wise Marketer Loyalty Landscape Study.
Three companies are using the web and the most advanced technologies to disrupt loyalty programs. How will internet, software-as-a-service (Saas), blockchain, predictive technologies, mobile beacons, NFC, reshape the loyalty and rewards programs into the new Fintech era?
Rewards and benefits can be used to not only increase brand loyalty and encourage repeat custom, but also to inspire action. This is not limited to the workplace.
Consumer-facing businesses around the UK are increasingly making use of rewards and incentives to win their custom.
Here at One4all Rewards, inspiring action through rewards and gifts is our business, and as such we wanted to investigate just how many businesses are now making use of this form of marketing and how consumers really respond to it.
We have commissioned a survey of 1,004 British consumers to lift the lid on B2C incentive marketing.
We hope you find the results insightful.
Why true digital transformation must take place across the entire banking ent...Epsilon Marketing
In the global omnichannel world we live in today, financial institutions are hindered by their disparate and siloed systems.
The rise of online banking has produced a massive shift in the way people engage with their money, bill paying, and most importantly, their banks. Today’s consumer is connected more or less 7x24x365 via mobile devices and WiFi in their cars. Banking and insurance companies are struggling to shape their online and digital engagement to match the expectations and desires of the consumers. They need to transform so that they can better understand their consumers.
With this focus on digital transformation, the financial institutions must focus on producing an enterprise-wide solution that enables the business to find, engage, convert, cultivate and expand their relationships efficiently.
Join us as we explain how organizations are successfully transitioning to enterprise-wide digital transformation.
How the consumer shift to online media channels is changing the marketing mix.
(All research is cited. Special shout out to Hubspot and Aberdeen Group, both great resources on the subject matter).
How to Turn User Generated Content into Revenue with Ratings and ReviewsFlutterbyBarb
How to Turn User Generated Content into Revenue with Ratings and Reviews via Gigya
This white paper examines three ways brands can start effectively harnessing ratings and reviews to stimulate both new and repeat conversions: 1. Boosting brand awareness and referral traffic 2. Improving long-tail SEO 3. Building a transparent, brand-loyal community
To succeed in the Internet age, insurance marketers have to be more nimble, more innovative and better able to communicate with their customers, both for themselves and through their partner ecosystems. IBM’s Commerce portfolio for Insurance can help insurers achieve their marketing engagement goals. Insurance industry marketing executives need to reach prospective and current policyholders in context at every point of the purchase process by innovating personally relevant and rewarding experiences that draw customers in and keep them engaged. IBM’s Commerce portfolio helps insurance marketing leaders take an integrated approach to customer engagement.
Insurance companies are great at acquisition but bad at retention. Jack Morton offers our unique POV and 5 ways insurance brands can keep more customers.
Deck on the Impact on Customer Loyalty of the challenging economic, regulatory and technology environments 2009 – 2010. Publically available data were reviewed and extrapolations were made where necessary.
"Real loyalty isn’t created at the close of the sale. It’s created when the brand & the customer become intimate through multiple interactions before, during & after the purchase." Read more in Aimia's report, 'Rewarding Interactions; Are You Ready for Customer Intimacy'
7 ways a customer loyalty platform boost brand engagementgroupfio1
Customer loyalty programs play a huge role in retaining customers. In this highly competitive market, it can extend the brand's reach, Do you people want to know more, check out the below link.
https://www.groupfio.com/7ways-a-customer-loyalty-platform-boosts-brand-engagement/
Rewards and benefits can be used to not only increase brand loyalty and encourage repeat custom, but also to inspire action. This is not limited to the workplace.
Consumer-facing businesses around the UK are increasingly making use of rewards and incentives to win their custom.
Here at One4all Rewards, inspiring action through rewards and gifts is our business, and as such we wanted to investigate just how many businesses are now making use of this form of marketing and how consumers really respond to it.
We have commissioned a survey of 1,004 British consumers to lift the lid on B2C incentive marketing.
We hope you find the results insightful.
Why true digital transformation must take place across the entire banking ent...Epsilon Marketing
In the global omnichannel world we live in today, financial institutions are hindered by their disparate and siloed systems.
The rise of online banking has produced a massive shift in the way people engage with their money, bill paying, and most importantly, their banks. Today’s consumer is connected more or less 7x24x365 via mobile devices and WiFi in their cars. Banking and insurance companies are struggling to shape their online and digital engagement to match the expectations and desires of the consumers. They need to transform so that they can better understand their consumers.
With this focus on digital transformation, the financial institutions must focus on producing an enterprise-wide solution that enables the business to find, engage, convert, cultivate and expand their relationships efficiently.
Join us as we explain how organizations are successfully transitioning to enterprise-wide digital transformation.
How the consumer shift to online media channels is changing the marketing mix.
(All research is cited. Special shout out to Hubspot and Aberdeen Group, both great resources on the subject matter).
How to Turn User Generated Content into Revenue with Ratings and ReviewsFlutterbyBarb
How to Turn User Generated Content into Revenue with Ratings and Reviews via Gigya
This white paper examines three ways brands can start effectively harnessing ratings and reviews to stimulate both new and repeat conversions: 1. Boosting brand awareness and referral traffic 2. Improving long-tail SEO 3. Building a transparent, brand-loyal community
To succeed in the Internet age, insurance marketers have to be more nimble, more innovative and better able to communicate with their customers, both for themselves and through their partner ecosystems. IBM’s Commerce portfolio for Insurance can help insurers achieve their marketing engagement goals. Insurance industry marketing executives need to reach prospective and current policyholders in context at every point of the purchase process by innovating personally relevant and rewarding experiences that draw customers in and keep them engaged. IBM’s Commerce portfolio helps insurance marketing leaders take an integrated approach to customer engagement.
Insurance companies are great at acquisition but bad at retention. Jack Morton offers our unique POV and 5 ways insurance brands can keep more customers.
Deck on the Impact on Customer Loyalty of the challenging economic, regulatory and technology environments 2009 – 2010. Publically available data were reviewed and extrapolations were made where necessary.
"Real loyalty isn’t created at the close of the sale. It’s created when the brand & the customer become intimate through multiple interactions before, during & after the purchase." Read more in Aimia's report, 'Rewarding Interactions; Are You Ready for Customer Intimacy'
7 ways a customer loyalty platform boost brand engagementgroupfio1
Customer loyalty programs play a huge role in retaining customers. In this highly competitive market, it can extend the brand's reach, Do you people want to know more, check out the below link.
https://www.groupfio.com/7ways-a-customer-loyalty-platform-boosts-brand-engagement/
Loyalty Programs are going mobile. This presentation lays out some of the reasons why we're seeing a shift in Loyalty to mobile, and the best way businesses can take advantage of it.
Loyalty is more than just a program it is becoming a vehicle for brand philosophy. The new breed of successful loyalty programs go beyond perks to build impactful emotional connections with customers. Unparalleled customer loyalty begins and ends with the quality of your relationships with customers.
Fixing the Cracks: Reinventing Loyalty Programs for the Digital AgeCapgemini
Launching a loyalty program is expensive and it’s complex. In the US alone, companies spend a staggering $2 billion on loyalty programs every year. But does this translate into increased customer engagement? Research suggests the answer is “probably not”. The average household in the US has over 21 loyalty program memberships. But, the household only actively uses 44% of these. More than half of consumers in a 2013 survey admitted they had abandoned at least one loyalty program in the past year. Our own analysis of customer sentiment on social media revealed pronounced dissatisfaction. Almost 90% of social media sentiment on loyalty programs was negative.
We assessed loyalty programs on a number of parameters. These included their central objective, their use of digital channels, and their ability to provide a seamless experience across channels (more detail on the approach is at the end of this paper). We found, in short, that companies have a lot of catching up to do. 97% of loyalty programs rely on transactional rewards, i.e. a customer makes a purchase and takes their points in exchange for gifts, merchandise or cash. The issue is that 77% of those transaction-based programs actually fail in the first two years. According to our research, only 25% of loyalty programs reward customers for some form of engagement. Where loyalty programs are also lacking is advanced personalization: only 11% of loyalty programs offer personalized rewards based on a customer’s purchase history or location data.
This research highlights why organizations need to think beyond points and how they can implement well-designed, engagement-based loyalty programs.
*** Leveraging Data to Build Brand Affinity, Increase Loyalty and Drive Revenue ***
* Get Secrets to Top Performers’ Success in Customer-centric Marketing Strategies *
In this SlideShare presentation, you’ll learn how business leaders in a variety of different industries are leveraging their own data to become a more customer-driven organization.
Learn how they are:
- Using customer analytics to drive marketing strategies
- Improving transactional and emotional loyalty with customized offers
- Increasing revenue via a more targeted marketing approach
- Staying top of mind with customers and prospects alike
Is your company ready to take full advantage of customer data to attract and engage loyal buyers across marketing, sales and service? Take some tips from top performers and model your own data driven marketing efforts to theirs for your own success.
Published in Marketing Magazine July 2015Simon Rowles
Loyalty programs need to start (and sometimes re-start) with strategy. Outdated program engagement strategies aren't engaging customers. Instead they're breeding a consumer type : Deletists. 73% of them now close accounts & 60% delete apps to escape loyalty programs - Aimia Inc global research
SMM Cheap - No. 1 SMM panel in the worldsmmpanel567
Boost your social media marketing with our SMM Panel services offering SMM Cheap services! Get cost-effective services for your business and increase followers, likes, and engagement across all social media platforms. Get affordable services perfect for businesses and influencers looking to increase their social proof. See how cheap SMM strategies can help improve your social media presence and be a pro at the social media game.
How to Use AI to Write a High-Quality Article that Ranksminatamang0021
In the world of content creation, many AI bloggers have drifted away from their original vision, resulting in low-quality articles that search engines overlook. Don't let that happen to you! Join us to discover how to leverage AI tools effectively to craft high-quality content that not only captures your audience's attention but also ranks well on search engines.
Disclaimer: Some of the prompts mentioned here are the examples of Matt Diggity. Please use it as reference and make your own custom prompts.
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CROVWO
In today’s era of AI, personalization is more than just a trend—it’s a fundamental strategy that unlocks numerous opportunities.
When done effectively, personalization builds trust, loyalty, and satisfaction among your users—key factors for business success. However, relying solely on AI capabilities isn’t enough. You need to anchor your approach in solid principles, understand your users’ context, and master the art of persuasion.
Join us as Sarjak Patel and Naitry Saggu from 3rd Eye Consulting unveil a transformative framework. This approach seamlessly integrates your unique context, consumer insights, and conversion goals, paving the way for unparalleled success in personalization.
Everyone knows the power of stories, but when asked to come up with them, we struggle. Either we second guess ourselves as to the story's relevance, or we just come up blank and can't think of any. Unlocking Everyday Narratives: The Power of Storytelling in Marketing will teach you how to recognize stories in the moment and to recall forgotten moments that your audience needs to hear.
Key Takeaways:
Understand Why Personal Stories Connect Better
How To Remember Forgotten Stories
How To Use Customer Experiences As Stories For Your Brand
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.\
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
The Secret to Engaging Modern Consumers: Journey Mapping and Personalization
In today's digital landscape, understanding the customer's journey and delivering personalized experiences are paramount. This masterclass delves into the art of consumer journey mapping, a powerful technique that visualizes the entire customer experience across touchpoints. Attendees will learn how to create detailed journey maps, identify pain points, and uncover opportunities for optimization. The presentation also explores personalization strategies that leverage data and technology to tailor content, products, and experiences to individual customers. From real-time personalization to predictive analytics, attendees will gain insights into cutting-edge approaches that drive engagement and loyalty.
Key Takeaways:
Current consumer landscape; Steps to mapping an effective consumer journey; Understanding the value of personalization; Integrating mapping and personalization for success; Brands that are getting It right!; Best Practices; Future Trends
Financial curveballs sent many American families reeling in 2023. Household budgets were squeezed by rising interest rates, surging prices on everyday goods, and a stagnating housing market. Consumers were feeling strapped. That sentiment, however, appears to be waning. The question is, to what extent?
To take the pulse of consumers’ feelings about their financial well-being ahead of a highly anticipated election, ThinkNow conducted a nationally representative quantitative survey. The survey highlights consumers’ hopes and anxieties as we move into 2024. Let's unpack the key findings to gain insights about where we stand.
SEO as the Backbone of Digital MarketingFelipe Bazon
In this talk Felipe Bazon will share how him and his team at Hedgehog Digital share our journey of making C-Levels alike, specially CMOS realize that SEO is the backbone of digital marketing by showing how SEO can contribute to brand awareness, reputation and authority and above all how to use SEO to create more robust global marketing strategies.
Videos are more engaging, more memorable, and more popular than any other type of content out there. That’s why it’s estimated that 82% of consumer traffic will come from videos by 2025.
And with videos evolving from landscape to portrait and experts promoting shorter clips, one thing remains constant – our brains LOVE videos.
So is there science behind what makes people absolutely irresistible on camera?
The answer: definitely yes.
In this jam-packed session with Stephanie Garcia, you’ll get your hands on a steal-worthy guide that uncovers the art and science to being irresistible on camera. From body language to words that convert, she’ll show you how to captivate on command so that viewers are excited and ready to take action.
A.I. (artificial intelligence) platforms are popping up all the time, and many of them can and should be used to help grow your brand, increase your sales and decrease your marketing costs.In this presentation:We will review some of the best AI platforms that are available for you to use.We will interact with some of the platforms in real-time, so attendees can see how they work.We will also look at some current brands that are using AI to help them create marketing messages, saving them time and money in the process. Lastly, we will discuss the pros and cons of using AI in marketing & branding and have a lively conversation that includes comments from the audience.
Key Takeaways:
Attendees will learn about LLM platforms, like ChatGPT, and how they work, with preset examples and real time interactions with the platform. Attendees will learn about other AI platforms that are creating graphic design elements at the push of a button...pre-set examples and real-time interactions.Attendees will discuss the pros & cons of AI in marketing + branding and share their perspectives with one another. Attendees will learn about the cost savings and the time savings associated with using AI, should they choose to.
Monthly Social Media News Update May 2024Andy Lambert
TL;DR. These are the three themes that stood out to us over the course of last month.
1️⃣ Social media is becoming increasingly significant for brand discovery. Marketers are now understanding the impact of social and budgets are shifting accordingly.
2️⃣ Instagram’s new algorithm and latest guidance will help us maintain organic growth. Instagram continues to evolve, but Reels remains the most crucial tool for growth.
3️⃣ Collaboration will help us unlock growth. Who we work with will define how fast we grow. Meta continues to evolve their Creator Marketplace and now TikTok are beginning to push ‘collabs’ more too.
The session includes a brief history of the evolution of search before diving into the roles technology, content, and links play in developing a powerful SEO strategy in a world of Generative AI and social search. Discover how to optimize for TikTok searches, Google's Gemini, and Search Generative Experience while developing a powerful arsenal of tools and templates to help maximize the effectiveness of your SEO initiatives.
Key Takeaways:
Understand how search engines work
Be able to find out where your users search
Know what is required for each discipline of SEO
Feel confident creating an SEO Plan
Confidently measure SEO performance
Is AI-Generated Content the Future of Content Creation?Cut-the-SaaS
Discover the transformative power of AI in content creation with our presentation, "Is AI-Generated Content the Future of Content Creation?" by Puran Parsani, CEO & Editor of Cut-The-SaaS. Learn how AI-generated content is revolutionizing marketing, publishing, education, healthcare, and finance by offering unprecedented efficiency, creativity, and scalability.
Understanding
AI-Generated Content:
AI-generated content includes text, images, videos, and audio produced by AI without direct human involvement. This technology leverages large datasets to create contextually relevant and coherent material, streamlining content production.
Key Benefits:
Content Creation: Rapidly generate high-quality content for blogs, articles, and social media.
Brainstorming: AI simulates conversations to inspire creative ideas.
Research Assistance: Efficiently summarize and research information.
Market Insights:
The content marketing industry is projected to grow to $17.6 billion by 2032, with AI-generated content expected to dominate over 55% of the market.
Case Study: CNET’s AI Content Controversy:
CNET’s use of AI for news articles led to public scrutiny due to factual inaccuracies, highlighting the need for transparency and human oversight.
Benefits Across Industries:
Marketing: Personalize content at scale and optimize engagement with predictive analytics.
Publishing: Automate content creation for faster publication cycles.
Education: Efficiently generate educational materials.
Healthcare: Create accurate content for patients and professionals.
Finance: Produce timely financial content for decision-making.
Challenges and Ethical Considerations:
Transparency: Disclose AI use to maintain trust.
Bias: Address potential AI biases with diverse datasets.
SEO: Ensure AI content meets SEO standards.
Quality: Maintain high standards to prevent misinformation.
Conclusion:
AI-generated content offers significant benefits in efficiency, personalization, and scalability. However, ethical considerations and quality assurance are crucial for responsible use. Explore the future of content creation with us and see how AI is transforming various industries.
Connect with Us:
Follow Cut-The-SaaS on LinkedIn, Instagram, YouTube, Twitter, and Medium. Visit cut-the-saas.com for more insights and resources.
The What, Why & How of 3D and AR in Digital CommercePushON Ltd
Vladimir Mulhem has over 20 years of experience in commercialising cutting edge creative technology across construction, marketing and retail.
Previously the founder and Tech and Innovation Director of Creative Content Works working with the likes of Next, John Lewis and JD Sport, he now helps retailers, brands and agencies solve challenges of applying the emerging technologies 3D, AR, VR and Gen AI to real-world problems.
In this webinar, Vladimir will be covering the following topics:
Applications of 3D and AR in Digital Commerce,
Benefits of 3D and AR,
Tools to create, manage and publish 3D and AR in Digital Commerce.
Digital marketing is the art and science of promoting products or services using digital channels to reach and engage with potential customers. It encompasses a wide range of online tactics and strategies aimed at increasing brand visibility, driving website traffic, generating leads, and ultimately, converting those leads into customers.
https://nidmindia.com/
First Things First: Building and Effective Marketing Strategy
Too many companies (and marketers) jump straight into activation planning without formalizing a marketing strategy. It may seem tedious, but analyzing the mindset of your targeted audiences and identifying the messaging points most likely to resonate with them is time well spent. That process is also a great opportunity for marketers to collaborate with sales leaders and account managers on a galvanized go-to-market approach. I’ll walk you through the methods and tools we use with our clients to ensure campaign success.
Key Takeaways:
-Recognize the critical role of strategy in marketing
-Learn our approach for building an actionable, effective marketing strategy
-Receive templates and guides for developing a marketing strategy
2. Executive Summary
Almost all market participants in the cards and payments industry are trying to grab a larger share of the
increasing payments value. One of the most potent weapons that need to be leveraged in future to
achieve this is Loyalty. This is because it would help all the market participants scale up seamlessly. It
would also allow card holders a lot of flexibility in purchasing and making their purchasing decisions, and
thus a reason for adoption. So, a strong case for all parties would make Loyalty a potent weapon in ecommerce.
All market participants would put their best foot forward to exploit the benefits of Loyalty in increasing
their share in the overall payments value. But changing paradigms in technology would change the way
Loyalty programs are delivered by market participants. With the near doubling of mobile phone
adoption from 2006 to 2011 and steep increase in the share of smart phones in this segment, mobile
technology would not only determine how Loyalty programs are delivered but also dictate them. So not
only would different delivery channels be leveraged for Loyalty but the success of Loyalty programs
would be determined by how the market participants are able to exploit emerging technologies in
coming up with more personalized and targeted offers, generating spend analytics of consumers and
building an intelligent system to trigger offers based on their purchasing patterns, encouraging Loyalty
linkage and helping consumers in managing different Loyalty programs coming from various market
participants.
Although Loyalty provides a lot of flexibility to the consumers, it would also bring with it their share of
problems. Adoption of Loyalty would bring a lot of challenges to the market participants and a lot of
problems to the consumers. The challenges would lie in the form greater intrusion into the life of
consumers and misuse of data provided by consumers during registration for Loyalty programs. Market
participants need to be aware of the implications of these challenges to prevent dilution of their brand
equity. Trade-offs between targeting consumers and intruding in their private space must be properly
decided to maintain a proper balance between them and make Loyalty a sustainable business driver for
all stakeholders in the payments industry.
Whitepaper
Page 2 of 12
3. Loyalty-What is it all about?
Loyalty can be defined as something that “conjures up various notions of affection, fidelity or
commitment” (McGoldrick and Andre, 1997, p. 74). From a retail perspective it is the commitment of a
consumer towards a particular scheme, merchant, brand or a combination of them. As a customer’s
relationship with the company lengthens, profits rise. Companies can boost profits by almost 100 per
cent by retaining just 5 per cent more of their customers. (Reichheld and Sasser, 1990, p. 105).Hence a
lot of brands have been trying to cash in on customer loyalty. It has resulted in the increase of
memberships in Loyalty Programs over the passage of time.
% of population that belong to a
Loyalty Program
100%
90%
US Loyalty Memberships by Census Year
2.5
0.45
41%
90%
80%
2
74%
0.4
0.35
35%
0.3
70%
60%
1.5
60%
0.25
Billion $
50%
42%
40%
33%
30%
0.2
1
0.15
16%
0.5
20%
0.1
0.05
10%
0
0%
0
2000
2006
Membership
Source: COLLOQUY for the year 2011
2008
2010
Increase
Source: The 2011 COLLOQUY Loyalty census
Traditional Loyalty programs rewarded consumers for using the payment card. Loyalty was mostly
funded by the issuing banks and other financial institutions and earned rewards took the form of cash
back and points towards redemption for select merchandize in an online mall, air tickets, gift cards and
even donations to charities designated by consumers. Over the years consumers with rewards cards
have spent more than their non-rewards counterparts.
49%
% Spend
80%
Rewards
Whitepaper
51%
20%
Source: Affinity Solutions
Non Rewards
Page 3 of 12
4. Merchant funded Loyalty emerged whereby the merchant rewarded its repeat consumers through
loyalty points which could be redeemed later. It helped merchants in the following ways:
Customer Acquisition
Customer Retention
Up Selling
Cross Selling
Loyalty-Why would it be needed?
Merchants running Loyalty programs have witnessed an aberration between the attitude of consumers
towards their brand and their behaviour. So, a favourable brand perception always doesn’t lead to
Loyalty. The relation between attitude of consumers and their behaviour can be demonstrated through
Dick and Basu’s Customer Loyalty model shown below:
Repeat Patronage
High
Brand Loyalty
Relative Attitude
High
Low
Low
True Loyalty
Latent Loyalty
Spurious Loyalty
No Loyalty
Program Loyalty
The above framework actually demonstrates that Loyalty is not the consequence of brand perception at
all times. So the investments in generating a brand pull don’t always ensure customer retention. Hence
investments should be directed not only for creating a brand pull but also for designing Loyalty
Programs which ensure commitment of the customers. A properly designed Loyalty Program delivered
through the proper channels and at an appropriate time would convert some of the customers in the No
Loyalty segment to that in the Spurious Loyalty segment. It would also help in the retention of
customers in the True Loyalty segment and prevent their movement to the Latent Loyalty segment. A
recent survey conducted by the Maritz Loyalty Marketing on 6000 customers in the US confirms that
Loyalty is a key component of the Brand Relationship Loyalty. It also confirms that Loyalty Programs
influence purchase behaviours.
Whitepaper
Page 4 of 12
5. 70% Programs are part of my relationship with the company
Programs are part of my relationship with the company
I modify what brands I buy, to maximize the points I receive for purchases
46% I modify what brands I buy, to maximize the points I receive for purchases
Programs are definitely worth the effort of participating
80% Programs are definitely worth the effort of participating
57%
0%
IImodify when and where IIbuy items, to maximize the points IIreceive for purchases
modify when and where buy items, to maximize the points receive for purchases
50%
100%
Source: The 2013 Maritz Loyalty Report
The results reiterate the necessity of good Loyalty Programs for not only the retention of existing
customers but also for the acquisition of new customers. Hence Loyalty would always remain a value
proposition for merchants trying to generate a brand pull.
Loyalty-Why won’t old be gold?
With the advent of new delivery channels in electronic payments, traditional methods of disbursing a
Loyalty Card along with promotion of Loyalty Programs would only work partially. Only merchants who
are able to customize their Loyalty Programs in terms of the offers, communication and time of delivery
to its customer would be able to maximize their return on investment.
73% Smart phone users interested in interacting with their Loyalty programs with their devices
46%
53%
0%
50%
% of members who would like to receive communication from 3 or more channels
The communications I receive from the program are relevant to me
100%
Source: The 2013 Maritz Loyalty Report
With customers modifying their choice of brands based on Loyalty programs and with increasing
number of choices for customers, it is imperative that the timing of communication of the Loyalty
Program would be of utmost importance to get the customer to the store. Mobile Users use their
mobiles for Comparison Shopping to evaluate products and check prices. So if the customer receives a
communication about the Loyalty Program during his period of evaluation, it would definitely be
factored in his decision making process which ultimately affects his purchasing decision. So, merchants
offering Loyalty programs would have to align the communication of their program with the emerging
delivery channels of payments so that they are targeted more appropriately to match the requirements
of the customers and the time of purchase.
Whitepaper
Page 5 of 12
6. 60% of Smartphone users use their phones for comparison shopping
56% of Smartphone users want to receive location based offers on
their phones when they are near a store
Source: First Data
Learnings from experience-A case for market participants
The new trends emerging in the business models of Loyalty would be an
opportunity for all market participants to cash in. The following trends
would bring the maximum opportunity of different market participants.
Strike when it matters:
The 3 T’s of Loyalty
Targeted
Timely
Tech-savvy
Targeted
Customized to consumers purchasing
history and his need of the hour
There are moments that matter during the purchasing decision of a
buyer. Delivery of communication presented to the buyer at these
Timely
moments would significantly affect the purchasing decision of the buyer
Sent to him at such a time which
would influence his purchasing
and the establishment of a possible relationship with the brand. So, if a
decision
buyer is entering a shopping mall thinking of making some purchase of
garments and has no particular brand in mind, communication of a
Tech-savvy
Loyalty Program at that point of time can significantly affect his decision
Easy to receive & redeem through
the device the consumer normally
of the order in which he planned to visit the stores, something the
uses
consumer would have been indifferent about had he not received the
communication. This would give merchants a better chance of
establishing a relationship with their potential consumers and retaining
their existing customers some of whom were only demonstrating Spurious Loyalty. This timely
communication is only possible when the potential customers are geo-tracked by the devices they are
carrying.
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7. Changing trends in Loyalty
91%
100%
80%
60%
40%
20%
0%
73%
46%
% of members who % of smartphone users % of smartphone users
would like to receive
who are likely to
who would like to
communication from
download the app
interact with their
three or more channels
Loaylty Program
through their device
Source: The 2013 Maritz Loyalty Report
Increase delivery channels:
Delivery of the communication of Loyalty Programs at an
TECHNOLOGY TRENDING
appropriate time requires the increase of delivery channels
through which customers receive the communication. With
GEO TRACKING
increasing number of smart phone and tablet users and with
MESSAGING
the increasing number of customers wanting to receive the
MOBILE COUPONING
communication about the Loyalty Programs through the
devices they carry, merchants need to ensure that they have the adequate infrastructure to send the
communication through multiple channels and also allow their customers the flexibility to redeem it
conveniently when they do avail the offer. Merchants would need to ensure that they have systems
which are capable Mobile couponing, messaging services and compatibility with mobile payments which
would facilitate redemption of the Mobile coupons. The following chart shows the change in the
preferred Banking mode which resonates with the Loyalty findings.
SMS/Text Banking
Mobile Banking
Smartphone
12%
57%
64%
Source: Cognizant Research Center
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8. Introduce triggers:
Instead of operating in silos, merchants need to collaborate to grab a bigger pie of the spend of their
prospective customers. So a cab provider company can collaborate with an airlines company to
maximize their share in the spend of a prospective customer who travels frequently. So whenever the
particular traveller books an air ticket an offer of additional Loyalty points if he avails the cab service can
influence his decision of transport after he gets down from his flight. Similarly casinos, bars and
restaurants can collaborate with leading hotels and introduce triggers when the potential customers
make payment for booking hotels.
Cool uses of Loyalty information
Set preferences for purchase on your smartphone such
that, upon arriving at partner retail stores, your order is
processed and paid for instantly
Determine your location using your smartphone and offer
you deals if you are near a partner
Special benefits to those who “like” or “Follow” a
program on Facebook or Twitter
Personalized offers you want, based on your
preferences, that you can manage and update
Personalized discounts on your favorite items, based on
your purchasing habits
0%
Age 16-34
10%
20%
30%
40%
50%
60%
70%
80%
Total Population
Source: The 2013 Maritz Loyalty Report
Encourage Group Loyalty:
The benefits of Loyalty programs can be maximized when merchants hunt for groups of people in family,
friends, colleagues etc. Merchants need to ensure that the individual Loyalty benefit of each member in
the group is greater than if the member would have been in the Loyalty Program individually. This would
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9. ensure that the True Loyals in the group would always put pressure on the Spurious Loyals and Latent
Loyals to come into their category so that their benefit is maximized. And the True Loyals can put
pressure on the other groups on the rationale that everyone’s benefit would be maximized. Reward also
matters. So transfer of benefits between group members when one actually needs it can also lure
potential customers.
Timing of Reward
Delayed
Repeated & immediate
Direct
Direct
Individual Loyalty
Group Loyalty*
Indirect
Type of Reward
Group Loyalty*
Group Loyalty*
*Possible areas of implementation of Group Loyalty programs
The benefits of Group Loyalty to the customer – An illustration
Let’s consider a Loyalty program which has the following rated slab for Loyalty points. The Loyalty points are
rewarded for total spending for the month. Considering that all other merchants also have a similar Loyalty
Program
Simple Loyalty point allocation slab based on monthly spend with a particular merchant
Spending with the merchant
Points
0-100
2
100-200
3
200-300
4
300-400
5
400-500
6
500-600
7
Family Member
Spend in $
Loyalty
points
earned if shopping
with
different
merchants
Loyalty
Points
earned if shopping
with
the
same
merchant
Net Benefit for the
consumer
A
300
2+3+4=9
13
44%
B
200
2+3=5
9
80%
C
100
2
4
100%
Total Spend if A+B+C is a group: 300+200+100=600
Total Loyalty Points rewarded=2+3+4+5+6+7=27
Loyalty points for A= (300/600)*27=13.5
Loyalty points for B= (200/600)*27=9
Loyalty points for C= (100/600)*27=4.5
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10. Loyalty Management:
With more and more merchants deciding to offer Loyalty Programs, customers would start facing
difficulties in assessing and evaluating the best one for them depending on their nature of spend,
shopping patterns and brand preferences. This is where they would need apps which would analyze
their shopping and spend patterns and sort the Loyalty offers according to them to help them and
choose the Loyalty Program which would make most economic sense to them. The apps can also help
the customers track the different types of Loyalty Programs in terms of their classification according to
merchant categories(like Retail, Airlines etc.), validity, expiration dates, number of points left for
redemption.
Challenges
Privacy issues:
With more and more merchants deciding to use Loyalty as a tool for brand building, customers would
find it cumbersome to deal with overflowing Loyalty offers and mobile coupons. The merchants would
also utilize the registered mobile numbers to send communication about their other discount schemes,
unique products and other promotional offers. Customers might feel that merchants would be intruding
too much into their privacy. The fact that there would be a scrutiny of their shopping patterns might also
give an uneasy feeling to the customers.
Privacy concerns in Loyalty
40%
29%
30%
24%
20%
10%
0%
Program requires personal information
Privacy Concern
Source: The 2013 Maritz Loyalty Report
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11. Information Misuse:
Loyalty Programs in future would require the registration of the mobile number that a customer uses. It
would facilitate timely communication of offers to the customers. Registration would also mean the
tracking and profiling of customers depending on their age, profession, average spend and spending
patterns. But such information could be misused by criminals in many ways. That would deter customers
from registering for Loyalty Programs and the purpose of such programs would be ultimately defeated.
Hence data security should be of utmost importance to all stakeholders in the value chain.
Wierd uses of Loyalty information
Ask personal questions during enrollment to provide
offers based on your demography
Allowing Programs to review your status updates and
send offers
Offer special benefits to those providing personal
information about others
Offers made on status updates on friends profile
0%
Age 16-34
10%
20%
30%
40%
50%
60%
70%
Total Population
Source: The 2013 Maritz Loyalty Report
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12. References
Can Loyalty schemes really build Loyalty- Lisa O’Malley
Customer Loyalty and Customer Loyalty Programs-Mark D. Uncles, Grahame D. Rowling and
Kathy Hammond
The 4 C’s of Customer Loyalty-Jennifer Rowley
Testing Dick and Basu’s Customer Loyalty Model-Ron Garland & Philip Gendall
Comparisons of Competing Models between Attitudinal Loyalty and Behavioral Loyalty-Cheng,
Shih-I
Exploring Loyal Qualities: assessing survey based Loyalty measures-Sharyn Rundle-Thiele
Effects of Loyalty programs on value perception, program loyalty and brand loyalty-Youjae Yi
and HoseongJeon
Brand Loyalty Measurement-A framework-Sancharan Roy
The 2013 Maritz Loyalty Report
Cognizant Research Center
First Data website
COLLOQUY Loyalty census
Affinity Solutions
About the Author
Kaushik Basu is an Assistant Manager within RS Software. He can be reached at
kaushikb@rssoftware.co.in
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