Customer engagement is the top challenge brands face. Discover a three-part formula for transforming your customer loyalty strategy.

1. The New Formula for
Evolutionary
Customer Loyalty
Barry Kirk
VP of Loyalty Strategy

2. What is the best music ever composed?

3. What is the best music ever composed?

4. 2018 Study: Analysis of Spotify data of
all songs’ listening frequency,
by gender and age.
Coolio’s
"Gangsta's Paradise”?
“No, sir!”

5. 5
Magic age for setting our music preferences?
For women: 13
For men: 14

6. 6Maritz Proprietary and Confidential © 2018
Fourteen is a sort of magic age for the
development of musical tastes.
Pubertal growth hormones make
everything we're experiencing, including
music, seem very important.
We're just reaching a point in our
cognitive development when we're
developing our own tastes. And musical
tastes become a badge of identity.
“
”
Magic age for setting our music preferences?
Daniel Levitin, Psychologist

7. Automobiles? Mobile Phones? Loyalty Programs???

8. Maritz | Wise Marketer 2018 Loyalty Landscape

9. 9Maritz Proprietary and Confidential © 2018
Initial Awareness
& Enrollment
Participation, but
with lagging
engagement levels
Onboarding
Time
ProgramParticipation
Early Wins
Earning
Social Connection Reward
Disengagement
Engagement is the top loyalty challenge.

10. 54% of all loyalty program memberships are inactive.
Loyalty Program?

11. Today’s Siloed Loyalty Model:
CXLoyalty
Loyalty as a tool to
impact CX

12. In reality,
Loyalty is
the lens
through which
loyal customers
view their
entire CX.

13. The evolving Integrated Loyalty Model:
Loyalty is the CX of
your best customers
LX

14. The evolving Integrated Loyalty Model:
LX differs from CX
in its focus on a
future orientation.
LX?

15. 15
Reducing friction
is not enough.

16. 3-Part Formula for Evolved Loyalty…

17. #1
Embrace
behavioral science as
a discipline to inform
your loyalty
strategies.

18. Rational Economic Model

19. 19
Consciousness is
the broom closet
in the mansion of
the brain.
”
“
David Eagleman
Neuroscientist

20. 20
Marketers need a new model of human behavior.
DEFEND
Driven to defend
status, stuff, ideas and
relationships
AQUIRE
Driven to acquire
stuff, status resources
CREATE
Driven to learn,
understand, express,
“create” impact
BOND
Driven to fit in, engage,
share, connect to the
community
Based on the work of Dr. Paul Lawrence and
Dean Nitin Nohria - Harvard Business School
The Four-Drive Model

21. 21
Inertia Loyalty
OPTIMIZE THE BARRIER TO EXIT
“I’m only here because it’s too
much trouble to go elsewhere”
Mercenary Loyalty
OPTIMIZE THE INCENTIVE
“I’m loyal because you pay me
to be loyal.”
True Loyalty
OPTIMIZE THE EXPERIENCE
“My connection to the brand
goes beyond the offer.”
Cult Loyalty
OPTIMIZE THE TRIBE
“The brand reflects my
personal identity.”
Relational
Transactional
ActivePassive
Maritz Multi-Loyalty Framework

22. 22
Nerd Nugget: The Power of Pro-social Referrals
0.6%
1.7%
4.8%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
Control Selfish Prosocial
ConversionRate(%)
Referral Type
2.8X conversion for
prosocial at same cost

23. #2
Transform your
loyalty data into
insight using
decision science.

24. Most companies with loyalty programs are
doing very little with program data.
A dark secret loyalty marketing:
Many aren’t using the data at all.

25. 25
Decision science is about more than reporting.
Analytics
Artificial
Intelligence
Behavioral
Science
Decision Sciences

26. 26
AI Saves Customers Time by “Shopping” for Them
Account Data
Transaction Data
Redemption Data
Marketing Data
Supplemental Data
Leverage multiple and
diverse data sources
AI which is designed to
predict preferences
Present the perfect redemption
option to each person
70%
Of redeemers did
so in the category
that the AI
recommended
for them.

27. AI is not really
about data.
.
It’s about putting
your customer
inside your data
strategy.

28. #3
Integrate your
Employee
Experience (EX)
Into your LX.

29. 29
Loyalty Intensity Is Challenging All Brands
Maritz | Wise Marketer 2018 Loyalty Landscape

30. 30
“Experience” Is Now The Key To More Loyalty Engagement
Maritz | Wise Marketer 2018 Loyalty Landscape

31. 55%
“Love of the brand experience”
drives their loyalty.
Maritz | Wise Marketer 2018 Loyalty Landscape
Millennials are
more likely than
Boomers to say

32. 32
Inertia Loyalty
OPTIMIZE THE BARRIER TO EXIT
“I’m only here because it’s too
much trouble to go elsewhere”
Mercenary Loyalty
OPTIMIZE THE INCENTIVE
“I’m loyal because you pay me
to be loyal.”
True Loyalty
OPTIMIZE THE EXPERIENCE
“My connection to the brand
goes beyond the offer.”
Cult Loyalty
OPTIMIZE THE TRIBE
“The brand reflects my
personal identity.”
Relational
Transactional
ActivePassive
Is your Employee
Experience optimized, too?

33. 1. Adopt behavioral science as a marketing discipline.
2. Bring your data to life through decision science and AI
3. Integrate your LX and EX to deliver on your brand promise
Evolve to your own LX

34. Loyalty is misunderstood.
Loyalty is not resistance to competitive offers,
it’s insistence on a favorite.
Loyalty isn’t points, it’s having a point.
Loyalty is not simply a program. It’s personal.
A connection. A relationship. A identity.
A Loyalty Manifesto

35. The New Formula for
Evolutionary
Customer Loyalty
Barry Kirk
VP of Loyalty Strategy