1) The document discusses loyalty programs and their effectiveness in driving desired business outcomes like increased sales and customer retention. It notes that many programs fail to leverage customer data or encourage advocacy.
2) It then describes a study of a wine club loyalty program called the Wine Lovers Club that had many components but lacked focus and failed to engage members.
3) The researchers applied a new customer advocacy framework to classify members and identify the most effective program components. This led to streamlining the program around its most engaging elements and increased profitability and advocacy.
The document discusses how traditional loyalty programs are failing to engage customers in the digital age. Some key points:
- Most loyalty programs are transaction-based and fail to reward customer engagement. Only 25% reward activities like reviews.
- Customer experience across channels is lacking, as most don't allow rewards redemption across all channels.
- Personalization is still basic, relying on tier systems rather than individualized offers.
- A survey found 89% of social media sentiment on loyalty programs was negative, largely due to irrelevant rewards and poor user experiences.
- Successful programs like Starbucks, O2, and Walgreens integrate loyalty seamlessly into the customer experience, offer personalized rewards, and leverage social media engagement. The document
The Customer Loyalty Conundrum by Forrester ConsultingPaul Writer
The document discusses a study on customer loyalty programs. It finds that while loyalty marketers are confident in their strategies, there are gaps in how they integrate data and insights. Most programs focus on discounts and retention, but struggle to innovate and prove ROI across channels. Emerging channels like mobile and social are underutilized despite being important to reach customers. Loyalty programs need better integration of data and the ability to deliver personalized offers in real time.
With successful referral marketing programs for
over 500 brands, we have put together this Referral Marketing Best Practices for 2014 guide. The guide provides smart marketers with the framework to launch successful referral marketing programs.
Social Customer Service: The Pivotal Driver of the Social EnterpriseLiveops
Customer Service is now driving the voice of the customer (VOC) cross-functional collaboration and that integration and use of VOC data makes all departments more effective and efficient.
The document discusses a study conducted by Experticity, Jonah Berger, and Keller Fay to quantify the influence of micro-influencers. The study found that:
1) Micro-influencers, defined as industry professionals and retail associates, have 22 times more buying conversations per week than the general population.
2) Recommendations from micro-influencers on the Experticity platform led to stronger consideration, with 74% of conversations resulting in customers following up on recommendations compared to 26% for the general population.
3) Credibility, knowledge, and the ability to explain products are the most important factors in whether people follow micro-influencer recommendations.
The document discusses how traditional loyalty programs are failing to engage customers in the digital age. Some key points:
- Most loyalty programs are transaction-based and fail to reward customer engagement. Only 25% reward activities like reviews.
- Customer experience across channels is lacking, as most don't allow rewards redemption across all channels.
- Personalization is still basic, relying on tier systems rather than individualized offers.
- A survey found 89% of social media sentiment on loyalty programs was negative, largely due to irrelevant rewards and poor user experiences.
- Successful programs like Starbucks, O2, and Walgreens integrate loyalty seamlessly into the customer experience, offer personalized rewards, and leverage social media engagement. The document
The Customer Loyalty Conundrum by Forrester ConsultingPaul Writer
The document discusses a study on customer loyalty programs. It finds that while loyalty marketers are confident in their strategies, there are gaps in how they integrate data and insights. Most programs focus on discounts and retention, but struggle to innovate and prove ROI across channels. Emerging channels like mobile and social are underutilized despite being important to reach customers. Loyalty programs need better integration of data and the ability to deliver personalized offers in real time.
With successful referral marketing programs for
over 500 brands, we have put together this Referral Marketing Best Practices for 2014 guide. The guide provides smart marketers with the framework to launch successful referral marketing programs.
Social Customer Service: The Pivotal Driver of the Social EnterpriseLiveops
Customer Service is now driving the voice of the customer (VOC) cross-functional collaboration and that integration and use of VOC data makes all departments more effective and efficient.
The document discusses a study conducted by Experticity, Jonah Berger, and Keller Fay to quantify the influence of micro-influencers. The study found that:
1) Micro-influencers, defined as industry professionals and retail associates, have 22 times more buying conversations per week than the general population.
2) Recommendations from micro-influencers on the Experticity platform led to stronger consideration, with 74% of conversations resulting in customers following up on recommendations compared to 26% for the general population.
3) Credibility, knowledge, and the ability to explain products are the most important factors in whether people follow micro-influencer recommendations.
Ikano White Paper - The Future of LoyaltyLaura Scully
A survey of over 26,000 customers by loyalty program experts Ikano revealed three key trends for the future of loyalty programs: 1) 52% of respondents wanted a mobile app to replace their loyalty card due to the growing use of smartphones, 2) 34% wanted to use the app to manage their loyalty account information, and 3) 59% wanted to set their own communication preferences to receive only relevant offers. The survey findings suggest customers want more control and convenience through mobile apps to better serve their evolving needs.
Pre Conference: Transforming Your Customer ExperienceVivastream
The document outlines a workshop on transforming customer experience through 4 steps and 49 action items. The workshop will be held on October 12th and 13th, 2013 and presented by Ernan Roman, president of Ernan Roman Direct Marketing, and other speakers from companies like MassMutual and PossibleNOW. The agenda covers using voice of customer insights to drive strategies, creating preference-based customer databases, applying multichannel marketing principles, and increasing the relevance and ROI of online and social media marketing. The overall goal is to help companies achieve consistent double-digit increases in response, revenue, and retention through implementing a 4-step customer experience process guided by voice of customer research.
Is social media the new direct marketing - 3 march 2011 -- slideshareRon Jacobs
No one believes that Social Media Marketing is the new Direct Marketing, but it is making an impact everything that we do. Social Media Marketing's ability to capture huge amounts of data, is something that every marketer should be aware of, no matter if they choose to take advantage of it or not. This presentation was given to the Detroit Direct Marketing Association on 3 March 2011.
This document discusses online community management and provides strategies for effective community management. It begins with an introduction to community management and its importance for connecting brands to customers. It then covers the key aspects of online community management, including monitoring conversations, engaging with customers, moderating discussions, and measuring brand perception. Several strategies for community management are outlined, and advantages as well as challenges are discussed. A case study on community management by EA Sports is also briefly summarized. The document provides an overview of best practices for online community building and management.
The 1:1 Experience™ is a service offered by Fuji Xerox to enable companies to create a personal connection with customers, using the best of traditional CRM techniques combined with new marketing intelligence, all enabled with capabilities of high technology.
Combining targeted messaging based on customer profile and contextual information with an integrated multi-channel approach across web, print, SMS and social media platforms, the 1:1 Experience delivers increased ROI efficiency.
This document summarizes key findings from the 2013 Maritz Loyalty Report on consumer loyalty programs in the United States. Some of the main findings include:
1) Consumers participate in an average of 7.4 loyalty programs but feel they have room for more. Communications play a significant role in satisfaction, but only 53% find communications relevant.
2) Privacy is a growing concern, with 24% citing it as a barrier to enrollment. Personalization requires personal information, but consumers find some uses of data "creepy."
3) Loyalty programs influence consumer behavior, with 57% modifying purchase behavior to earn rewards, but 53% stopped participating in at least one program last year.
This document discusses referral marketing strategies for beauty brands. Some key points:
- Referral marketing through word-of-mouth is an effective way to acquire new customers, but many brands do not systematically drive this channel.
- Referrals work particularly well for health and beauty businesses if the right approach is taken, including developing a strong case for referrals and enabling easy sharing options for customers.
- Referred customers tend to have higher lifetime value and spend more than other types of acquired customers, making referral marketing highly beneficial.
This document discusses social influencer marketing. It defines a social influencer as someone who has the potential to influence others due to their communication abilities and social networks. It emphasizes that influencer marketing requires focusing on understanding customer purchase decisions and those closest to them, rather than large social media followings. It also stresses that influencer relationships need to be nurtured long-term through genuine engagement and advocacy, not one-time promotional deals. Success requires identifying different types of influencers and measuring impact on sales, customer lifetime value, and movement along the customer journey.
The document discusses research into the influence of "micro-influencers", which are defined as individuals who have greater than average reach through word-of-mouth recommendations. The research found that:
1) Micro-influencers have 22.2x more buying conversations in a single week than typical consumers, acting as "amplification agents" for brands.
2) Recommendations from micro-influencers on the Experticity platform resulted in 74% of people following up and seriously considering the product, and 82% being highly likely to follow the recommendation.
3) Micro-influencing is often part of experts' jobs, with 53% of their recommendations happening at work, compared to 19% for typical
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
Conversant - Retail Marketer Insights The State of Digital and the Future of ...Conversant, Inc.
The study, conducted in December 2013 and January 2014, solicited information and opinions from leading
senior-level retail marketers. The digital opportunities and challenges covered in the study varied from the
current role that digital plays in marketing programs to the burgeoning interest and importance of personalized
one-to-one marketing.
For the retailer, this study provides a benchmark for today’s attitudes and efforts compared to those of a crosssection
of other retail industry leaders.
In addition, retail is often the “first mover” in digital when it comes to programs with a strong likelihood of ROI
impact. Thus, these findings are very relevant to marketers outside of the retail/e-tail sector.
Conversant research retail_marketer_insights_2014Jim Nichols
This document summarizes the key findings of a research study conducted by Conversant on the state of digital marketing and personalization among senior retail marketers. Some of the main findings include:
- Digital now accounts for 39% of total marketing spend on average for retailers surveyed, much higher than other industries.
- Personalization is seen as very important, with 90% agreeing personalized messages are more effective. However, omni-channel consumer behavior complicates personalization efforts.
- Retailers work with an average of 12 digital vendors but many find it difficult to integrate them and find the right partners.
- Interest in measurement is high but last-click attribution remains most common, despite limitations. Concerns about
This document examines the effectiveness of celebrity endorsements in advertising. It analyzes data from over 2,600 ads to determine if celebrity ads perform better than non-celebrity ads. The analysis finds that contrary to popular belief, celebrity ads do not generally perform better and often perform worse than non-celebrity ads. While clever uses of celebrities can be effective, the creative content of the ad is more important for driving positive responses from viewers than the celebrity endorsement alone. Employing celebrities also carries business risks if they become associated with scandals. The evidence suggests celebrities are not a simple or guaranteed way to improve ad effectiveness.
Paid social media advertising is growing, with 64% of advertisers increasing their budgets in 2013. However, the increases are modest, usually between 1-10%. Advertisers are funding these increases by shifting budget from other online and offline channels to paid social media advertising. Paid social media advertising is seen as an integrated tactic and is usually run alongside other online display, video, and mobile advertising as well as offline print and TV. The primary goal is branding, such as raising awareness. However, measuring ROI remains a challenge as advertisers prefer metrics that span online and offline but most media sellers only provide online-specific metrics like likes and clicks.
Shopper marketing is one of the fastest growing areas of advertising and promotions for CPG companies. Over the next three years, 83% of companies plan to increase their investments in shopper marketing, with 55% expecting to grow it over 5% annually. This is fueled by the need to better influence shoppers across the entire path to purchase and generate measurable results. Traditional media spending is declining as shopper marketing moves to center stage. CPG companies are investing in shopper marketing to capture insights on shoppers and create effective campaigns to engage deal-driven consumers in a fragmented marketing environment.
The document discusses the benefits of outsourcing channel marketing administration (CMA), including increased operational efficiency, cost reduction, and improved productivity and partner relationships. Outsourcing CMA allows companies to focus on core business operations while experts handle administrative tasks like lead qualification and sales development. This can increase qualified leads by 50% while reducing costs by 33%. The document also notes that most companies do not adequately measure cross-channel marketing activities or prioritize converting qualified leads, representing lost revenue opportunities.
Mike Testly received a score of 69% on the Excel 2003 - Standard (B) test. He performed best on topics like File Management and Editing, scoring 100% and 81% respectively. He struggled most with topics like Analysis, scoring only 25%, and Tools and Automation, scoring 33%. The test consisted of 35 questions across various levels (Beginner, Intermediate, Advanced) and took Mike 24 minutes to complete.
There is a powerful, and actively monetizing, link between employee attitudes and behavior (on behalf of the enterprise, its product and service value proposition, and its customers) and customer behavior. This white paper discusses approaches for identifying key linkage factors and how organiztions can apply them.
Ikano White Paper - The Future of LoyaltyLaura Scully
A survey of over 26,000 customers by loyalty program experts Ikano revealed three key trends for the future of loyalty programs: 1) 52% of respondents wanted a mobile app to replace their loyalty card due to the growing use of smartphones, 2) 34% wanted to use the app to manage their loyalty account information, and 3) 59% wanted to set their own communication preferences to receive only relevant offers. The survey findings suggest customers want more control and convenience through mobile apps to better serve their evolving needs.
Pre Conference: Transforming Your Customer ExperienceVivastream
The document outlines a workshop on transforming customer experience through 4 steps and 49 action items. The workshop will be held on October 12th and 13th, 2013 and presented by Ernan Roman, president of Ernan Roman Direct Marketing, and other speakers from companies like MassMutual and PossibleNOW. The agenda covers using voice of customer insights to drive strategies, creating preference-based customer databases, applying multichannel marketing principles, and increasing the relevance and ROI of online and social media marketing. The overall goal is to help companies achieve consistent double-digit increases in response, revenue, and retention through implementing a 4-step customer experience process guided by voice of customer research.
Is social media the new direct marketing - 3 march 2011 -- slideshareRon Jacobs
No one believes that Social Media Marketing is the new Direct Marketing, but it is making an impact everything that we do. Social Media Marketing's ability to capture huge amounts of data, is something that every marketer should be aware of, no matter if they choose to take advantage of it or not. This presentation was given to the Detroit Direct Marketing Association on 3 March 2011.
This document discusses online community management and provides strategies for effective community management. It begins with an introduction to community management and its importance for connecting brands to customers. It then covers the key aspects of online community management, including monitoring conversations, engaging with customers, moderating discussions, and measuring brand perception. Several strategies for community management are outlined, and advantages as well as challenges are discussed. A case study on community management by EA Sports is also briefly summarized. The document provides an overview of best practices for online community building and management.
The 1:1 Experience™ is a service offered by Fuji Xerox to enable companies to create a personal connection with customers, using the best of traditional CRM techniques combined with new marketing intelligence, all enabled with capabilities of high technology.
Combining targeted messaging based on customer profile and contextual information with an integrated multi-channel approach across web, print, SMS and social media platforms, the 1:1 Experience delivers increased ROI efficiency.
This document summarizes key findings from the 2013 Maritz Loyalty Report on consumer loyalty programs in the United States. Some of the main findings include:
1) Consumers participate in an average of 7.4 loyalty programs but feel they have room for more. Communications play a significant role in satisfaction, but only 53% find communications relevant.
2) Privacy is a growing concern, with 24% citing it as a barrier to enrollment. Personalization requires personal information, but consumers find some uses of data "creepy."
3) Loyalty programs influence consumer behavior, with 57% modifying purchase behavior to earn rewards, but 53% stopped participating in at least one program last year.
This document discusses referral marketing strategies for beauty brands. Some key points:
- Referral marketing through word-of-mouth is an effective way to acquire new customers, but many brands do not systematically drive this channel.
- Referrals work particularly well for health and beauty businesses if the right approach is taken, including developing a strong case for referrals and enabling easy sharing options for customers.
- Referred customers tend to have higher lifetime value and spend more than other types of acquired customers, making referral marketing highly beneficial.
This document discusses social influencer marketing. It defines a social influencer as someone who has the potential to influence others due to their communication abilities and social networks. It emphasizes that influencer marketing requires focusing on understanding customer purchase decisions and those closest to them, rather than large social media followings. It also stresses that influencer relationships need to be nurtured long-term through genuine engagement and advocacy, not one-time promotional deals. Success requires identifying different types of influencers and measuring impact on sales, customer lifetime value, and movement along the customer journey.
The document discusses research into the influence of "micro-influencers", which are defined as individuals who have greater than average reach through word-of-mouth recommendations. The research found that:
1) Micro-influencers have 22.2x more buying conversations in a single week than typical consumers, acting as "amplification agents" for brands.
2) Recommendations from micro-influencers on the Experticity platform resulted in 74% of people following up and seriously considering the product, and 82% being highly likely to follow the recommendation.
3) Micro-influencing is often part of experts' jobs, with 53% of their recommendations happening at work, compared to 19% for typical
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
Conversant - Retail Marketer Insights The State of Digital and the Future of ...Conversant, Inc.
The study, conducted in December 2013 and January 2014, solicited information and opinions from leading
senior-level retail marketers. The digital opportunities and challenges covered in the study varied from the
current role that digital plays in marketing programs to the burgeoning interest and importance of personalized
one-to-one marketing.
For the retailer, this study provides a benchmark for today’s attitudes and efforts compared to those of a crosssection
of other retail industry leaders.
In addition, retail is often the “first mover” in digital when it comes to programs with a strong likelihood of ROI
impact. Thus, these findings are very relevant to marketers outside of the retail/e-tail sector.
Conversant research retail_marketer_insights_2014Jim Nichols
This document summarizes the key findings of a research study conducted by Conversant on the state of digital marketing and personalization among senior retail marketers. Some of the main findings include:
- Digital now accounts for 39% of total marketing spend on average for retailers surveyed, much higher than other industries.
- Personalization is seen as very important, with 90% agreeing personalized messages are more effective. However, omni-channel consumer behavior complicates personalization efforts.
- Retailers work with an average of 12 digital vendors but many find it difficult to integrate them and find the right partners.
- Interest in measurement is high but last-click attribution remains most common, despite limitations. Concerns about
This document examines the effectiveness of celebrity endorsements in advertising. It analyzes data from over 2,600 ads to determine if celebrity ads perform better than non-celebrity ads. The analysis finds that contrary to popular belief, celebrity ads do not generally perform better and often perform worse than non-celebrity ads. While clever uses of celebrities can be effective, the creative content of the ad is more important for driving positive responses from viewers than the celebrity endorsement alone. Employing celebrities also carries business risks if they become associated with scandals. The evidence suggests celebrities are not a simple or guaranteed way to improve ad effectiveness.
Paid social media advertising is growing, with 64% of advertisers increasing their budgets in 2013. However, the increases are modest, usually between 1-10%. Advertisers are funding these increases by shifting budget from other online and offline channels to paid social media advertising. Paid social media advertising is seen as an integrated tactic and is usually run alongside other online display, video, and mobile advertising as well as offline print and TV. The primary goal is branding, such as raising awareness. However, measuring ROI remains a challenge as advertisers prefer metrics that span online and offline but most media sellers only provide online-specific metrics like likes and clicks.
Shopper marketing is one of the fastest growing areas of advertising and promotions for CPG companies. Over the next three years, 83% of companies plan to increase their investments in shopper marketing, with 55% expecting to grow it over 5% annually. This is fueled by the need to better influence shoppers across the entire path to purchase and generate measurable results. Traditional media spending is declining as shopper marketing moves to center stage. CPG companies are investing in shopper marketing to capture insights on shoppers and create effective campaigns to engage deal-driven consumers in a fragmented marketing environment.
The document discusses the benefits of outsourcing channel marketing administration (CMA), including increased operational efficiency, cost reduction, and improved productivity and partner relationships. Outsourcing CMA allows companies to focus on core business operations while experts handle administrative tasks like lead qualification and sales development. This can increase qualified leads by 50% while reducing costs by 33%. The document also notes that most companies do not adequately measure cross-channel marketing activities or prioritize converting qualified leads, representing lost revenue opportunities.
Mike Testly received a score of 69% on the Excel 2003 - Standard (B) test. He performed best on topics like File Management and Editing, scoring 100% and 81% respectively. He struggled most with topics like Analysis, scoring only 25%, and Tools and Automation, scoring 33%. The test consisted of 35 questions across various levels (Beginner, Intermediate, Advanced) and took Mike 24 minutes to complete.
There is a powerful, and actively monetizing, link between employee attitudes and behavior (on behalf of the enterprise, its product and service value proposition, and its customers) and customer behavior. This white paper discusses approaches for identifying key linkage factors and how organiztions can apply them.
Employee Engagement and Ambassadorship - Beyond Philosophy WebinarBeyondPhilosophyUSA
This document discusses linking employee engagement and employee ambassadorship to drive customer-centric culture. It defines employee engagement as commitment to the company and its value proposition, while employee ambassadorship requires additional commitment to customers. Research shows employees categorized as ambassadors, who score highly on commitment in all three areas, have much more positive attitudes toward their employer and its products/services than other categories like saboteurs. This leads to improved business results as ambassadors advocate for the company to customers.
Elanguest English Language School provides a variety of English courses, including general English, business English, and specialized medical courses. It has over 23 years of experience and is involved in the prestigious sTANDEM project to develop an English certification for medical professionals. Through partnerships with top universities and organizations, sTANDEM aims to standardize language assessments worldwide to improve patient care and reduce medical legal risks.
Current offerings from Leadership Breakthrough to conduct group or team training and development. Contact us for more information at lynn@LeadershipBreakthrough.com
This document defines blogging and discusses its uses and applications. Blogs can display various media like text, graphics, video, and audio. They encourage skills like research, writing, reading, and communication between peers and teachers. Blogs can be created and accessed using many devices and applied in subjects like math, English, science, and social studies. The document provides tutorials and free blogging website links and contact information for more help.
The document discusses the problem-solving process used at Amity School of Business. It outlines three stages: 1) defining the problem, parameters and limitations; 2) generating and evaluating ideas to find solutions; 3) planning action, analyzing impact and follow through. It also discusses principles of interpersonal problem solving and effective problem solving using both left brain and right brain approaches.
This document discusses Whole Brain Thinking and the Herrmann Brain Dominance Instrument (HBDI). It describes how the HBDI identifies individuals' thinking preferences across four quadrants (A, B, C, D) that represent different parts of the brain. It provides an example of how a CEO and vice president gained insights into their different thinking styles from their HBDI profiles, which helped improve their working relationship and harness their team's potential. The HBDI helps people understand, accept, and value different cognitive styles for effective collaboration.
The document outlines an action plan for Amity School of Business. It discusses the construction, monitoring, and review of the plan of action. It defines the key elements of an action plan such as specific tasks, timelines, and resource allocation. It provides steps for building an action plan including knowing your strengths and goals, identifying options, developing the plan, and implementing it. It also discusses monitoring the execution of the plan and regularly reviewing it.
The sustainable beef conference in Denver hosted by WWF. 300 invited delegates representing all global industry stakeholders spent three days discussing the issues surrounding the production of sustainable beef.
Employee Engagement Webinar - February 2014 - Beyond PhilosophyBeyondPhilosophyUSA
This document discusses the importance of customer-centricity and employee engagement for organizations. It argues that customer loyalty is at growing risk due to rising expectations, lack of personalization, and focus on transactions rather than overall experience. To address this, companies need to better understand customer needs, make employees and customers their top priority, and focus on the emotional aspects of customer experience and value delivery through their people. The document provides examples of customer-centric companies and outlines approaches to measuring employee attitudes, engagement, and ambassadorship to improve customer loyalty.
This document discusses measuring customer experience metrics and their ability to demonstrate return on investment. It provides an overview of various customer experience measurement approaches such as customer satisfaction indices, net promoter score, and customer advocacy/bonding. Customer advocacy/bonding measures both rational and emotional customer attitudes toward a brand as well as downstream communication behaviors. It is seen as a contemporary approach to understand customer loyalty and business performance. Experts agree that customer advocacy has the power to boost a company's reputation through unpaid customer marketing if advocates are mobilized, listened to, and engaged.
1) The document discusses problem solving and creative thinking. It addresses problem solving as a mental process and considers it one of the most complex intellectual functions.
2) Several tips for problem solving are provided, including that there are always problems to solve, problems become bigger if not addressed, and that every problem has more than one solution.
3) A problem solving style questionnaire is included to help individuals identify if they are more idealist, activist, or realist in their problem solving approach. Critical thinking, problem solving skills, and emotional intelligence are also discussed.
Education as we know it is in its final days. Are these scary or exciting times? To me, it's the latter as I believe we are entering a new age and the change is no more frightening than how the farmers must've felt when people left the fields for the factories. In the days ahead, we must challenge not only the status quo, but the foundation structures that have been a part of our operating system for well over 150 years. These times call for bold leaders. Join me moving into the unknown.
My article has appeared in The October Issue of Silicon India and hopefully it will be the first of series of articles on Power of Whole Brain Thinking-
do go to the site-
http://www.siliconindia.com/guestcontributor/guestarticle/382/The_Power_of_Whole_Brain_Thinking.html as well
Employee ambassadorship, or advocacy, goes beyond engagement to determine level of commitment to enterprise, value of products and services, and customers
Revealing the Top Customer Centricity Best Practices in Fortune 500BeyondPhilosophyUSA
In this webinar we reveal the best practices from leading companies in each of the 9 key organizational areas (e.g. people, culture and leadership, marketing, customer strategy, measurements etc.) that need to be addressed to provide an emotionally engaging customer experience.
The document provides an overview of various models of thinking that can be applied in educational settings. It summarizes Bloom's Taxonomy of cognitive processes and knowledge dimensions, demonstrates how the taxonomy can be applied, and discusses other models including Marzano's Dimensions of Learning and Costa and Kallick's 16 Habits of Mind. The purpose is to show parents how these thinking models guide teaching practices and student assessment.
Start your journey to personalising the customer experience.
This guide will challenge you to do some housekeeping and reconsider how you think about your current and future loyalty personalisation efforts.
1) The document discusses how loyalty programs are evolving from purely transactional rewards programs to programs focused on building emotional connections with customers through shared values and causes.
2) It provides examples of how Patagonia and Walgreens have built loyalty by openly supporting environmental causes and partnering with health/fitness apps to reward customer wellness.
3) The key recommendation is for brands to identify their values, make them known publicly, and leverage loyalty programs to engage customers in learning about and supporting those same values and causes through special offers, content, and community involvement.
The document discusses 20 marketing trends for 2022. Some of the key trends include:
1. Consumer values and expectations have shifted drastically due to the COVID pandemic, requiring brands to strategize and create new strategies to meet these changes.
2. Marketers must focus on building their first-party data strategies and personalizing experiences as third-party cookies are being phased out.
3. Research is becoming more democratized, with insights being generated through collaboration across organizations rather than isolated reports.
4. Testing and optimization are becoming ingrained in marketing organizations through increased investment in testing technology and dedicated teams.
360 Degree Marketing: How to benefit from online and offline marketing commun...Browne & Mohan
With advent of online and mobile platforms, marketing managers now have both offline and online marketing assets to increase their brand reach and customer engagement. However, many companies do not plan and execute a marketing strategy that meshes assets available on different media. Moreover, companies do not use an extensive embellished strategy to keep in continuous touch with customers. In this white paper, Browne & Mohan consultants show how to integrate offline and online marketing assets systematically and build a strong extensive content strategy to develop from low cost low information intensive assets to costly high information intensive assets.
Using Loyalty Management To Increase Customer MindshareVineet Pahuja (VP)
The document discusses loyalty management and implementing loyalty programs. It defines loyalty management as a tool used by companies to build lasting relationships and gain a larger share of profitable customers' business. It notes that while early loyalty programs focused on rewards points, modern programs provide 360-degree customer views and respond to customers in real-time. Successful loyalty programs develop a detailed understanding of what drives customer buying behaviors in order to build valuable programs. The document provides guidance on when loyalty programs are appropriate and ineffective, as well as principles for effective program design.
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.
Dissecting the Art of Building Great Customer Experiences (1).pdfMeenuRandhawa2
The document discusses building great customer experiences through personalization. It provides insights from various reports and experts on how understanding customer preferences, segmenting audiences appropriately, and delivering consistent omnichannel experiences can boost customer engagement and revenues. Personalizing communications based on purchase history, location, and interests while respecting communication preferences is important for a positive customer experience.
The document discusses brand loyalty and its relationship to market share. It states that larger companies tend to have more brand loyalty due to increased customer familiarity with their products and services. Larger companies also benefit from positive word-of-mouth marketing from loyal customers. The document also notes that companies can increase revenues, and potentially market share and loyal customers, by opening more stores, offering online products, and providing volume discounts. Developing well-designed loyalty programs is important, but their results may not be immediately noticeable and require time for customers to become truly loyal.
How to leverage new ideas and engage customers
For more white papers and webinars, go to http://www.sldesignlounge.com
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The loyalty industry provides loyalty solutions and services to help other industries grow their businesses. Key services include consulting, loyalty programs, technology, and rewards fulfillment. Loyalty programs are designed to encourage customer retention and increase sales. Successful programs provide incentives for repeat purchases and rewards loyal behavior. The loyalty industry aims to build relationships between consumer behavior and businesses to help capture more revenue from existing customers rather than seeking new ones.
Customer loyalty programs are more effective for online businesses than offline businesses. Online businesses can more easily track customer purchase histories and offer targeted rewards through digital platforms. This builds stronger customer loyalty without requiring customers to physically visit stores. However, offline businesses are struggling because fewer customers are traveling to stores as more purchasing occurs online. To adapt, offline businesses should develop mobile apps and sell products online to engage customers who are shifting to digital.
Taco Bell Unveils Game Focused Loyalty ProgramMegan Espinoza
Taco Bell launched a new mobile loyalty program called "Explore" in late 2015 to reward customers for "Living Mas", embodying their tagline of "Living Large". The program allows customers to earn rewards simply by going about their daily lives on social media. This new loyalty program aims to increase Taco Bell's market share in the fast food industry amid growing competition while meeting long-term business goals. Initial reviews of the program have been positive with both monetary and non-monetary success.
Infosys Insights: Improving effectiveness of social media strategyInfosys
It has always been challenging for businesses to determine the right resource allocation for the successful implementation of a social media strategy. Many organizations find it hard to improve the effectiveness of a social media strategy in promoting brands and increasing revenues. An iterative quantification framework, the right tools, and the ability to quantify key business relationships are critical in increasing a strategy’s effectiveness.
Rewiring marketing: a practice based approachBrowne & Mohan
Many marketing managers are not aware if they are leveraging marketing efforts correctly or getting the returns that they anticipated. Often people believe transforming marketing is all about creating some digital assets. Marketing transformation is not piece meal improvement. The primary purpose of a marketing transformation is to increase the ROI of marketing your company. In this white paper, Browne & Mohan consultants share a practice based approach to marketing transformation.
This document provides best practices for running a successful referral program. It discusses leveraging brand advocates like current customers, employees, and partners through referral programs. Key points include:
- Referral programs are an important part of marketing as referred customers have higher lifetime value and require fewer marketing efforts.
- Programs should engage all three advocate groups - customers, employees, and partners - by understanding each group's unique needs and touchpoints.
- Referral experiences should be seamless and reinforce the brand experience through white-labeling.
- Consistent promotion and nurturing of advocates is needed to sustain program awareness, engagement and results over the long-term.
- Incentivizing advocates and
A Bluprint for Investing in Referral Marketinghenry4km
The document discusses referral marketing and the benefits of automating referral marketing processes. Some key points:
- Referral marketing is an important strategy as B2B buyers increasingly rely on peer recommendations before making purchasing decisions. Automating referral marketing can boost ROI by increasing conversions and customer lifetime value.
- Manual referral marketing programs using spreadsheets are less effective than automated systems which can more accurately track referrals, rewards, and results. Automation also prompts ongoing advocate participation.
- When choosing a referral marketing automation platform, it is important to consider the user experience for advocates, prospects, sales teams, and administrators and ensure the solution is easy to use and integrates with existing technology like CRM.
1) The document discusses how linking social media to loyalty programs can boost customer engagement, nurture relationships, and increase ROI. It provides tips on listening to customers, interpreting data to understand them, and acting on insights to improve engagement and build loyalty.
2) Key recommendations include offering rewards for social interactions, recognizing superfans, linking CRM and social data to track engagement, and using insights for segmentation, targeting and personalization.
3) Measuring analytics like engagement and conversions, as well as qualitative insights, can demonstrate the ROI of social loyalty by showing the value of engaged customers versus non-engaged.
A brand equity measurement system involves conducting brand audits, developing tracking procedures, and designing a brand equity management system. Tracking studies provide descriptive and diagnostic information by collecting data from consumers on a routine basis over time. Effective tracking surveys customize questions to the specific brand and address areas like brand awareness, image, personality, quality judgments, and consideration. Tracking studies indicate how well marketing programs are impacting the customer mindset and driving business results.
Customer experience is basically a universal
consequence of the association between a brand and
its client. All subdivisions of an organization
communicate with their clienteles from its individual
viewpoint. Customer Experience Management is a
course of observing and inventing the communication
with consumers from their point of view.
Similar to Market probe loyalty programs vs. loyalty behavior white paper (20)
This document discusses the importance of linking employee experience (EX) to customer experience (CX) through developing employee personas and ambassadorship. It provides examples showing the strong correlation between employee commitment, satisfaction, and advocacy with customer loyalty, spending, and perceptions. The document advocates developing employee personas using both qualitative and quantitative research to understand what motivates employees and how their experiences impact CX delivery. This helps optimize EX design to create employee ambassadors committed to delivering value to customers.
Market probe pre customers and former customers white paperMichael Lowenstein
1) Many companies focus more on acquiring new customers than retaining existing ones or recovering former customers, despite the higher potential value of existing and former high-value customers.
2) Targeted customer research can help companies identify high-value prospects, at-risk existing customers, and attractive former customers to acquire, retain, and recover in a more cost-effective way.
3) Understanding what represents value for prospective customers and matching offerings to their needs is important for acquisition, yet often under-researched. Recovering attractive former customers through targeted win-back programs can be a major strategic opportunity.
This document presents a summary of a talk given by Michael Lowenstein on revisiting the focus of customer research and linking customer behavior and brand perception to business outcomes. It discusses how customer advocacy research can provide insights to improve business metrics like revenue, market share, and customer retention. The document outlines Market Probe's advocacy framework which segments customers into advocates, allegiant, ambivalent and alienated groups based on their brand support and influence. It also shows how improving customer experiences can help shift more customers into the advocate category and positively impact key metrics.
This document discusses how companies can build customer advocacy and loyalty through becoming more customer-centric. It argues that companies need to focus on relevance, authenticity, and trust at all customer touchpoints in order to create an "inside-out" advocacy approach. Successful companies align their culture, messaging, and customer experiences to develop emotional connections with stakeholders like customers. The document examines how certain "humanistic" companies have achieved high levels of customer advocacy by prioritizing all stakeholders, empowering employees, and partnering with suppliers to optimize customer experiences.
Market probe impact of alienation and sabotage white paperMichael Lowenstein
The document discusses how customer alienation and sabotage can negatively impact businesses. It defines alienated customers as those who have had a bad experience with a company and will negatively communicate about that experience to friends and family through both offline and online channels. This negative word-of-mouth communication, or "badvocacy", can result in lost customers and business for the company. The rise of the internet and social media has given alienated customers more power to widely share their negative experiences, and research shows that negative reviews online can significantly influence purchase decisions. Left unaddressed, customer alienation poses serious financial risks to businesses from lost revenue over time.
1) Customer advocacy directly impacts corporate reputation and trust. Banks and other companies with high customer advocacy also have strong reputations.
2) A study found that customers who were advocates gave high reputation scores to banks, while alienated customers gave low scores.
3) Building customer trust and addressing issues that undermine trust, like inconsistent service, can help improve reputation and increase advocacy.
IKEA focuses on creating a positive branded customer experience through every touchpoint, from parking to delivery. Their experience is designed like a destination to be fun and easy to navigate. Unlike most retailers, IKEA effectively marries their brand positioning with emphasis on making customers remember the positive aspects of shopping there.
Several other companies exemplify creating strong branded customer experiences, such as Zappos through focusing on emotions and memories, Trader Joe's through their lighthearted store environment, and Umpqua Bank through their personalized service and community spaces. Creating memorable experiences through employee passion and empowerment is key to building customer loyalty and advocacy for companies like Wegmans and Apple Stores.
Creating a branded customer experience requires strategically
This document discusses customer advocacy in business-to-business (B2B) contexts. It argues that customer advocacy exists in B2B as brand impression and word-of-mouth are important drivers of supplier choice, even with business constraints like pricing and regulations. Meeting basic customer needs is essential to building trust and loyalty. The document presents research showing that service quality, relationship quality, satisfaction, and trust influence customer retention and advocacy in B2B similarly to business-to-consumer. It provides an example of a computer company that improved advocacy by focusing service on problem ownership.
Targeting the most desirable new customers is often missed in favor of throwing a non-selective, broad net. This brief presentation suggests approaches for acquiring the best prospective customers
1) Word of mouth marketing impacts a large portion of the US economy, with 13% largely driven by positive consumer discussions and 54% partially influenced by word of mouth.
2) Consumers highly value word of mouth recommendations because they see the sources as trustworthy given their perceived lack of bias, and find the recommendations relevant when making purchase decisions.
3) Customers who are highly satisfied and likely to recommend brands are more frequent users of those brands compared to indifferent or fulfilled customers.
This presentation details the linkage and behavioral impact of employee commitment to the enteprise, to the company\'s product and service value proposition, and to customers. It also points out key differences between employee ambassadorship (advocacy) and employee engagement, which has less customer focus.
This document is the table of contents for a marketing magazine. It lists the titles and page numbers for articles on topics like optimizing marketing mix, database analysis, reaching Generation Y consumers, and how non-profits are adjusting to new opt-out rules. The editor's letter discusses how marketers are "redistributing" attention and funding away from mass media by using real data and targeted messaging. It also includes a contest asking readers to guess what city the editor is currently visiting.
Michael Lowenstein will discuss linking customer feedback and brand/supplier loyalty in a RealMarket Live! webcast scheduled for September 13, 2002 at 10am ET. The 20-minute interview style webcast will explore using customer feedback data to drive loyalty through examples from companies like Harrah's Hotels and Casinos, Dorothy Lane Markets, British Airways, and Baptist Health Care. Michael will also summarize the differences between customer satisfaction and loyalty measurements. Listeners are encouraged to provide feedback after the presentation.
Multi-day strategic customer life cycle workshop, focusing on risk, churn, and winback. Features both individual and team case studies, in banking and telecom
Harris Interactive Src Making Loyalty Measurement RealMichael Lowenstein
Over the past 30 years, customer loyalty measurment has progressed beyond satisfaction, performance, and loyalty to the monetizing impact of customer bonding and advocacy.
Many companies have determined that identifying perceptual gaps between customers\' evaluations of products and services and what employees think customers will say enables: targeted training and communication, employee involvement, incentive opportunities. Leading companies have made \'mirroring\' part of their DNA.
Customer advocacy is more than just word-of-mouth promotion. It involves understanding customer needs, values, and behaviors in order to leverage their emotional relationship with a brand. Marketers can use detailed customer data to identify and cultivate advocacy by tailoring marketing activities to different customer types. True advocacy requires optimizing the customer experience at every interaction point. Research shows advocacy levels can be tracked and segments by degrees of loyalty. The conditions for advocacy involve appealing to customer values through authentic brand experiences and distinct positioning. Influential customers play a key role in spreading word-of-mouth and shaping trends. Measuring advocacy provides insights into customer satisfaction beyond basic fulfillment.
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Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...Neil Horowitz
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Storytelling is an incredibly valuable tool to share data and information. To get the most impact from stories there are a number of key ingredients. These are based on science and human nature. Using these elements in a story you can deliver information impactfully, ensure action and drive change.
Starting a business is like embarking on an unpredictable adventure. It’s a journey filled with highs and lows, victories and defeats. But what if I told you that those setbacks and failures could be the very stepping stones that lead you to fortune? Let’s explore how resilience, adaptability, and strategic thinking can transform adversity into opportunity.
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How MJ Global Leads the Packaging Industry.pdfMJ Global
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Digital Marketing best practices including influencer marketing, content creators, and omnichannel marketing for Sustainable Brands at the Sustainable Cosmetics Summit 2024 in New York
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How to Implement a Real Estate CRM SoftwareSalesTown
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[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
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2. Very significantly, more than half (54%) of loyalty program members
surveyed in the CMO Council study were considering leaving the
programs or defecting from the brands and companies sponsoring
them, principally due to:
1. The onslaught of irrelevant and off-target messages, low or non-
meaningful program benefits, and
2. The impersonal treatment they receive as members.
At the same time, it has been well-established in multiple studies,
such as those by loyalty program development consulting company
Colloquy, that customers who participate in loyalty or reward
programs are much more likely to positively communicate their
experiences and recommend the product or service of the sponsoring
organization than the remainder of the customer base.
For instance, Colloquy found that loyalty program members are
70% more likely to be engaged in advocacy-type activities such
as positive word-of-mouth and referral compared to the general
population. More than two-thirds of a program’s strongest advocates
will recommend the program’s brand within a year; and those who are
most active, i.e., using benefits on a regular basis, are more than three
times more likely to engage in recommendation and word-of-mouth
communication than other members. Finally, those program members
who have redeemed for experiential rewards, and thus deepened the
relationship between them and the sponsor, are 30% more likely to be
advocates than those members who used the program for discounts and
bounce-back offers.
Colloquy’s studies determined that the same lack of perceived program
relevance and value identified by the CMO Council carried over to the
inability of marketers to identify within the program database those
members most likely to be advocates for the program. Nor was there
much evidence of building relationships or encouraging positive word-
of-mouth. In the CMO Council study, key actions for improving club
ROI included personalizing interactions and target messages (51%),
increasing relevance of communications (39%), gathering more insights
and intelligence (38%) and adding unique new benefits and incentives
(36%).
3. Not every company is like leading worldwide supermarket chainTesco,
with DunnHumby as their customer loyalty program data analyst to
conduct detailed evaluation of loyalty program member profiles that
can be converted into more effective program components, targeted
messages and promotions. However, every company with a loyalty
program can get smarter about:
1. Using loyalty program member data to best effect, and
2. Designing or redesigning its loyalty program to encourage
participation and leverage positive word-of-mouth and
purchasing behavior.
Loyalty programs are considered by many to be inexpensive methods
of attracting and acquiring customers, and getting them to stay in
contact, return, and buy more; but, though inexpensive, they may also
be ineffective and even damaging. There is a potential for disconnect,
at least in terms of loyalty program design or redesign. Loyalty
program members can, and ideally should, actively represent their
membership through advocacy-type activity. As proven by studies
such as Colloquy’s, they are often far more likely to communicate
with others about their experiences with the programs; the more
active their program participation, the more likely they are to spread
the word. But if they are disengaged with the loyalty program, or do
not see the value represented by membership, these customers will
become passive about both the program and the products and services
it represents. They may become negative communicators or defect.
Too many companies belong to the Field of Dreams “if you build
it, they will come” school of loyalty program development. They
subscribe to the conventional wisdom that if they create what they
believe, or what they are told, is a compelling program with attractive
customer benefits, then the company will be rewarded with both more
customers and more sales as evidence of loyalty behavior. Once built,
customers may come, or they may not.They may spend more and make
more referrals or they may not. Recent research byThe Hartman
Group, a marketing consultancy, determined that 74% of consumers
agree that companies need new and better ways of rewarding loyal
customers. Clearly, many loyalty programs are suboptimal in
effectiveness.
The Good, Bad, Ugly and Opportunity Represented by Loyalty Programs
4. For marketers who hope to build profitable word-of-mouth behavior
from loyalty program members, the tools for doing so exist within
the program database. They should identify the advocates embedded
within their membership bases. Then, they should build relationships
that reward these members for their positive word-of-mouth activity.
Noted marketing Professor Philip Kotler, Northwestern University,
believes that standout organizations are those that can most effectively
optimize stakeholder trust, engagement and perceived personal value.
In a recent FinancialTimes interview article, Dr. Kotler said,“They use
the word-of-mouth effect of unpaid advocates – truly loyal customers
– to boost their reputation.Advocates will do your marketing for
you if you mobilize them, listen to them and engage them.” Loyalty
programs, used effectively, can be an excellent vehicle for creating and
extending customer advocacy behavior.
Beginning around the year 2000, major consulting organizations began
to recognize that critical changes in the marketplace were likely to
have profound impact on businesses, especially the shift from push
marketing to dialogue marketing. The emphasis was moving toward
optimization of customer engagement and perceived value. Instead
of relying solely on such historic measures as satisfaction, loyalty,
commitment, and recommendation, companies would need to identify
and focus on something more contemporary, more actionable, and
more predictive of key monetizing business outcomes, such as share of
wallet. That “something” was ultimately defined as customer advocacy
by consulting companies, academics and business executives: i.e.,
behavior driven by a strong bond with the preferred brand and active,
voluntary online and offline word-of-mouth on behalf of that brand.
Customer advocacy could now provide organizations with many
valuable business outcome benefits. This new consumer influence also
meant that market research companies would need to evolve beyond
historic methods of interpreting customer attitudes and determining
how those attitudes could impact behavior, in order to incorporate
drivers of customer advocacy. Some new models were created
principally to evaluate emotional connection; however, in general,
the market research industry has not embraced the new realities of
customer decision-making represented by customer advocacy. Having
identified the power of customer advocacy to influence the customer’s
own behavior and the behavior of others, the next challenge was
to create and prove the effectiveness of a state-of-the-art research
metric or framework for measuring and leveraging power of customer
advocacy.
We will examine how a new customer advocacy framework can be
applied to help optimize loyalty and reward program performance.
Defining Customer Advocacy and Advocacy Measurement for
Loyalty Programs
5. Advocacy occurs when:
1. Customers select a single supplier from among all those they
might consider, giving that supplier the highest share of spend
possible, and
2. Customers informally, voluntarily and often frequently tell
others about how positive their relationship is with the supplier
and how much value and benefit they derive from it, without
any form of compensation.
It is principally based on positive, voluntary and active customer word-
of-mouth and impression of the brand or vendor. However, word-of-
mouth is a double-edged sword; customers’ negative communication,
as much as praise, can have a damaging effect on other customers and
non-customers, as well as on the communicating customer.
Marketers have recognized that their number one program priority
must be to acquire and retain motivated and engaged participants. In
the CMO Council study, 46% of marketing executives identified this
as their principal challenge. Other performance obstacles included
measuring marketing value and effectiveness (42%), deriving valuable
insight and intelligence (38%), delivering more personalized offers and
inducements (34%), and creating more customized communications
(33%). All of these key issues can be effectively addressed through
targeted loyalty program advocacy research.
For our case study, we will use a wine buyers’ customer loyalty
program and call it theWine Lovers Club. There are many of these
programs around. They are offered by wine retailers, individual
wineries, as add-ons to other loyalty programs, and as coalition or
aggregated programs of multiple retailers, or retailers and other
product and service providers.
Using Advocacy Research to Design or Redesign A Customer
Loyalty Program
6. This particularWine Lovers Club program was introduced in 1999.As
of this writing, it has 50,000 members. Cost of membership is $100 per
year with a membership fee rebate beginning in the second year that is
based on the amount of wine ordered in the previous year. The program
has been built incrementally over time, adding elements management
borrowed from other loyalty programs that they felt would make theirs
more successful. It now has nearly 20 program components:
1. Personalized winery visit (U.S.,Australia, SouthAmerica,
Africa, and Europe) availability
2. Points earned for every purchase
3. Special events, at wineries and locations around the U.S., with
wine enthusiasts
4. Free shipping on wine purchases at a case level
5. Instant discount or rebate offers
6. Access to pre-release, specialty, and limited production wines
7. A members-only catalog with program logo items, which are
reasonably-priced wine accessories
8. Catalog accessories, food, hampers, gift baskets also available for
points earned through purchase
9. Discounted wine storage rates
10.Free personalization of wine labels for gift-giving
11.Referral benefits (discounts, points earned whenever a referred
friend buys wine or puts it into storage)
12.Tier levels, with higher points per purchase as purchases
increase
13.Discounts on wine purchases increase as tier levels increase
14.Points, tier levels, and credits (usage of points) accounted for
automatically
15.Benefits earned never expire
16.First priority ordering and exclusive wine selections
17.OnlineWine Lovers Club community
18.Exclusive‘ask the expert’ online and telephone availability
Club membership has remained relatively static for several years,
with about as many members defecting as joining. The program was
rarely mined for customer profile data, and is minimally profitable. It
generates add-on sales, but principally rewards through discounts those
members who are already active buyers. Apart from management
opinions, there is no real evidence as to what elements of the program
will most effectively drive member advocacy, or dampen it. Market
Probe’s advocacy framework was applied to help theWine Lovers Club
reframe and optimize its rewards program.
7. We applied a unique research framework to evaluate theWine Lovers
Club’s array of benefits, overall perception, and loyalty level relative to
competitive wine clubs whereWine Lovers Club members belonged
to multiple programs, on degree of advocacy. Based on answers
to four questions regarding their experience with theWine Lovers
Club (future purchase intent, recommendation likelihood, brand
favorability/impression, and evidence of positive or negative word-of-
mouth), club members were classified into four groups:
1. Advocates – Frequent buyers of multiple types of wine,
significant use of club benefits, strong club brand recognition
and favorability, active and positive word-of-mouth on behalf of
the club
2. Allegiants – Regular wine purchasers, moderate use of club
benefits, generally positive club brand favorability, infrequent
(though positive) word-of-mouth on behalf of the club
3. Ambivalents – Moderate volume wine buyers, occasional use
of club benefits, neutral club brand favorability, little evidence
of word-of-mouth on behalf of the club (but more negative than
positive)
4. Alienateds – Infrequent wine buyers, very little use of club
benefits, low to moderate club brand favorability, generally
negative word-of-mouth on behalf of the club
By our definitions,TheWine Lovers Club had about 12%Advocates,
better than some competitors and poorer than others. It also had 38%
Allegiant members, an attractive segment capable of stronger sales,
deeper relationship, higher brand affinity and engagement, and more
active and positive word-of-mouth. Similar to findings of the CMO
Council’s study, the loyalty program also had a total of 51%Ambivalent
andAlienated members who were minimally engaged and had the
potential for negative communication and defection.
Wine Lovers Club Advocacy Research Results
8. Once the advocacy groupings were established, swing voter analysis
(below) was applied. Some of theWine Lovers Club program
components, such as benefits that never expire, discounts, free
shipping, and discounted storage rates, were found to be one-
dimensional relative to other loyalty program elements; that is,
expected and non-leveraging. These features did little to drive loyalty
perceptions and continued member patronage, and may even be
causing some damage. Other components such as referral benefits,
points increases and increased discounts as tier levels rise, and a catalog
with club logo items, might be described as driving negativism because
they were compromising the concept of exclusivity and lifestyle
extension that were core to the club’s concept and value proposition.
The most favorably perceived and leveraging program elements were
those seen to have real meaning and enriching, personal significance for
members. These included the winery visits, special events, access to
pre-release and limited production wines, first priority ordering and
exclusive wine selections, and the‘ask the expert’ online and telephone
availability feature. These club program components were synched
with members’ life styles and self-perceptions, and advocacy research
found them to be both attractive and differentiated.
9. From 1987 to 1996,American Express’ cardholder recruitment tagline
was “Membership Has Its Privileges,” promising exclusive elements of
differentiated, personalized value to anyone who held anAmex card.
This campaign was award winning, and a high-water mark forAmerican
Express’ growth. This has direct application to what theWine Lovers
Club could be in the future.
Wine is a high-end consumable, and those who have strong involvement
in wine see it as an extension of their life-style. TheWine Lovers Club’s
promises and components needed to reflect benefits with differentiated
and personalized value to members. As a result of using member
advocacy research and swing voter analysis to optimize its components,
TheWine Lovers Club was able to emphasize those five elements that
had the greatest personal interest to current members and which would
best attract financially attractive new members. Simultaneously, the
Club was able to eliminate six costly and confusing components. The
net result was a program that was more streamlined, more engaging and
considerably more profitable.
The Wine Lovers Club of the Future