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Loyalty & Retention for SME's - PrestaShop BarCamp5

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Loyalty & Retention for SME's - PrestaShop BarCamp5

  1. 1. Growing With Your Customers:Retention & Loyalty for SMEsYour Name March 20, 2012 - Barcamp 5 PrestaShopSteve Deckert - Marketing ManagerMike Rossi – VP Business Development
  2. 2. Our BackgroundYour Name March 20, 2012 - Barcamp 5 PrestaShop• Over 1,300 merchants use Sweet Tooth• Official PrestaShop Partners
  3. 3. Keep Your Phone On!Your Name March 20, 2012 - Barcamp 5 PrestaShop@getsweettooth&@pointsadvisor
  4. 4. We’re Coming to PrestaShop!Your Namewww.sweettoothrewards.com/prestashopMarch 20, 2012 - Barcamp 5 PrestaShop
  5. 5. About UsYour NameSteve Deckert•Marketing Manager•Consulted several hundred merchants on loyaltyprogram best practices•@stevedeckertMarch 20, 2012 - Barcamp 5 PrestaShop
  6. 6. About UsYour NameMike Rossi•VP Business Development•Created Sweet Tooth Partner Program•@mike_r3March 20, 2012 - Barcamp 5 PrestaShop
  7. 7. Goals of This PresentationYour Name• Importance of Customer Retention• How Loyalty Works• Your Options for Customer Loyalty• A New Way to Measure Customer Loyalty (NPS)March 20, 2012 - Barcamp 5 PrestaShop
  8. 8. Customer Acquisition & RetentionYour NameTheory & ImportanceMarch 20, 2012 - Barcamp 5 PrestaShop
  9. 9. Customer Acquisition & RetentionYour Name March 20, 2012 - Barcamp 5 PrestaShopCustomerChurnCustomer Acquisition
  10. 10. Customer AcquisitionYour NameFilling the BucketMarch 20, 2012 - Barcamp 5 PrestaShopCustomer Acquisition
  11. 11. Customer AcquisitionYour NameeCommerce Examples:•SEO•Advertising & Promotions•Group Purchasing•Flash & Private Sales•Paid SearchMarch 20, 2012 - Barcamp 5 PrestaShopCustomer Acquisition
  12. 12. Customer AcquisitionYour NameFilling the Bucket•How much have you spent?•How effective is it?•What is the trend over time?March 20, 2012 - Barcamp 5 PrestaShopCustomer Acquisition
  13. 13. Customer AcquisitionYour NameDominates Your Marketing BudgetMarch 20, 2012 - Barcamp 5 PrestaShop
  14. 14. Customer AcquisitionYour NameOn average, businesses spend only20% of their marketing budget oncustomer retention- Joseph Jaffe, Flip The FunnelMarch 20, 2012 - Barcamp 5 PrestaShop
  15. 15. Customer AcquisitionYour NameWhy so Much?•Customer Experience vs. LTV•Easier to Understand & Execute•Sales Team PerspectiveMarch 20, 2012 - Barcamp 5 PrestaShopCustomer Acquisition
  16. 16. Customer RetentionYour NamePlugging the HolesMarch 20, 2012 - Barcamp 5 PrestaShopCustomerChurn
  17. 17. Customer RetentionYour NamePlugging the Holes•Decreasing the Amount of Churn•Increasing the CLTVMarch 20, 2012 - Barcamp 5 PrestaShopCustomerChurn
  18. 18. Customer RetentionYour NamePlugging the Holes•A 5% increase in customerretention provides up to a 95%profitability boost- Bain & CompanyMarch 20, 2012 - Barcamp 5 PrestaShopCustomerChurn
  19. 19. Customer RetentionYour NameeCommerce Retention Examples:•Customer service• e.g. Zappos•Loyalty Programs• Different Types•Surveys & Feedback• Even just listening•Churn Prediction Systems• Mainly used by banks, finance, etcMarch 20, 2012 - Barcamp 5 PrestaShopCustomerChurn
  20. 20. Customer RetentionYour NamePlugging the Holes:•Tends to be a Lower Priority•A Solid Differentiator•Gaining TractionMarch 20, 2012 - Barcamp 5 PrestaShopCustomerChurn
  21. 21. Loyalty by the NumbersYour NameWhere is Loyalty Now?March 20, 2012 - Barcamp 5 PrestaShop
  22. 22. Loyalty by the NumbersYour Name March 20, 2012 - Barcamp 5 PrestaShop
  23. 23. Loyalty by the NumbersYour Name March 20, 2012 - Barcamp 5 PrestaShop
  24. 24. Loyalty by the NumbersYour Name“There’s a difference between loyalty anda loyalty program.”- Simon SinekMarch 20, 2012 - Barcamp 5 PrestaShop
  25. 25. Loyalty by the NumbersYour Name March 20, 2012 - Barcamp 5 PrestaShop
  26. 26. Customer Loyalty in eCommerceYour NameTypes of eCommerce Loyalty Programs•Gamification•Point-Based Systems• Whitelabel & Consolidated•Social & Referral•Status-basedMarch 20, 2012 - Barcamp 5 PrestaShop
  27. 27. Customer Loyalty in eCommerceYour NameDelivering the Unexpected•Provide something that other retailers can’t, or won’t•Induce positive emotions towards your brand•Example: rewarding customers on their birthdaywithout advertising itMarch 20, 2012 - Barcamp 5 PrestaShop
  28. 28. Examples – Shecky’sYour Name March 20, 2012 - Barcamp 5 PrestaShop
  29. 29. Examples – Bloom.comYour Name March 20, 2012 - Barcamp 5 PrestaShop
  30. 30. The End Goals• Induce initial purchases• Encourage repeat purchases• Create reluctance to switch brands• Inspire customer to refer your brand (NPS)
  31. 31. Examples - AmazonYour Name March 20, 2012 - Barcamp 5 PrestaShop
  32. 32. Customer Loyalty in eCommerceYour Name“Loyalty is… the feeling a human being hastowards an organization”- Simon SinekMarch 20, 2012 - Barcamp 5 PrestaShop
  33. 33. Customer Loyalty in eCommerceYour NameA 5% increase in customer retentionprovides up to a 95% profitability boost - Bain & CompanyMarch 20, 2012 - Barcamp 5 PrestaShop
  34. 34. Measuring Loyalty & SatisfactionYour NameNet Promoter Score (NPS)How much do your customers love you?March 20, 2012 - Barcamp 5 PrestaShop
  35. 35. Net Promoter ScoreYour NameA way to measure and:March 20, 2012 - Barcamp 5 PrestaShop
  36. 36. Net Promoter ScoreYour NameA way to measure and:•IMPROVE strong points in customer experienceMarch 20, 2012 - Barcamp 5 PrestaShop
  37. 37. Net Promoter ScoreYour NameA way to measure and:•IMPROVE strong points in customer experience•REMOVE shortfallings in customer experienceMarch 20, 2012 - Barcamp 5 PrestaShop
  38. 38. Net Promoter ScoreYour NameA way to measure and:•IMPROVE strong points in customer experience•REMOVE shortfallings in customer experience•GAUGE customer opinion of our brandMarch 20, 2012 - Barcamp 5 PrestaShop
  39. 39. Net Promoter ScoreYour NameA way to measure and:•IMPROVE strong points in customer experience•REMOVE shortfallings in customer experience•GAUGE customer opinion of our brand•GAUGE customer potential to refer/promoteMarch 20, 2012 - Barcamp 5 PrestaShop
  40. 40. Net Promoter ScoreYour NameA way to measure and:•IMPROVE strong points in customer experience•REMOVE shortfallings in customer experience•GAUGE customer opinion of our brand•GAUGE customer potential to refer/promote•When they refer their friends, it is their credibility on theline!March 20, 2012 - Barcamp 5 PrestaShop
  41. 41. Net Promoter Score (NPS)Your Name• Fred Reichheld, 2003• The One Number You Need To GrowHarvard Business Review• Maybe not the only number…March 20, 2012 - Barcamp 5 PrestaShop
  42. 42. Net Promoter Score (NPS)Your NameHow does it work?March 20, 2012 - Barcamp 5 PrestaShop
  43. 43. Net Promoter Score (NPS)Your NameHow does it work?Follow this up with an open ended question:Why did you rate this way?March 20, 2012 - Barcamp 5 PrestaShop
  44. 44. Net Promoter Score (NPS)Your Name• Now we can gauge our customer’s perception of ourbrand and what has influenced itMarch 20, 2012 - Barcamp 5 PrestaShop
  45. 45. Net Promoter Score (NPS)Your Name• Now we can gauge our customer’s perception of ourbrand and what has influenced it• Repeat this process for a large sample sizeMarch 20, 2012 - Barcamp 5 PrestaShop
  46. 46. Net Promoter Score (NPS)Your Name• Now we can gauge our customer’s perception of ourbrand and what has influenced it• Repeat this process for a large sample size• When to send out a surveyMarch 20, 2012 - Barcamp 5 PrestaShop
  47. 47. Net Promoter Score (NPS)Your NameWho is Who?DetractorsMarch 20, 2012 - Barcamp 5 PrestaShop
  48. 48. Net Promoter Score (NPS)Your NameWho is Who?PassivesMarch 20, 2012 - Barcamp 5 PrestaShop
  49. 49. Net Promoter Score (NPS)Your NameWho is Who?PromotersMarch 20, 2012 - Barcamp 5 PrestaShop
  50. 50. Net Promoter Score (NPS)Your NameWhat to do With These NumbersMarch 20, 2012 - Barcamp 5 PrestaShop
  51. 51. Net Promoter Score (NPS)Your NameWhat to do With These NumbersMarch 20, 2012 - Barcamp 5 PrestaShop
  52. 52. Net Promoter Score (NPS)Your NameWhat to do With These NumbersMarch 20, 2012 - Barcamp 5 PrestaShop
  53. 53. Net Promoter Score (NPS)Your NameWhat to do With These NumbersMarch 20, 2012 - Barcamp 5 PrestaShop
  54. 54. Net Promoter Score (NPS)Your NameWhat to do With These NumbersMarch 20, 2012 - Barcamp 5 PrestaShop
  55. 55. Net Promoter Score (NPS)Your NameWhat to do With These NumbersMarch 20, 2012 - Barcamp 5 PrestaShop
  56. 56. Net Promoter Score (NPS)Your NameWhat to do With These NumbersMarch 20, 2012 - Barcamp 5 PrestaShop
  57. 57. Net Promoter Score (NPS)Your NameWhat to do With These NumbersMarch 20, 2012 - Barcamp 5 PrestaShop
  58. 58. Net Promoter Score (NPS)Your NameWhat to do With These NumbersMarch 20, 2012 - Barcamp 5 PrestaShop
  59. 59. Net Promoter Score (NPS)Your NameWhat to do With These NumbersMarch 20, 2012 - Barcamp 5 PrestaShop
  60. 60. Net Promoter Score (NPS)Your NameWhat to do With These Numbers•Scores range from -100 to +100March 20, 2012 - Barcamp 5 PrestaShop
  61. 61. Net Promoter Score (NPS)Your NameWhat to do With These Numbers•Scores range from -100 to +100•Best companies have scores ~75March 20, 2012 - Barcamp 5 PrestaShop
  62. 62. Net Promoter Score (NPS)Your NameWhat to do With These Numbers•Scores range from -100 to +100•Best companies have scores ~75•Median ~15-20 and varies by industryMarch 20, 2012 - Barcamp 5 PrestaShop
  63. 63. Net Promoter Score (NPS)Your NameWhy Am I Collecting These Numbers?•IMPROVE strong points in customer experience•REMOVE shortfallings in customer experience•GAUGE customer opinion of our brand•GAUGE customer potential to refer/promote•When they refer their friends, it is their credibility on theline!March 20, 2012 - Barcamp 5 PrestaShop
  64. 64. Net Promoter Score (NPS)Your NameWhy Am I Collecting These Numbers?NPS score has been directly correlated to…LONG TERM COMPANY GROWTHMarch 20, 2012 - Barcamp 5 PrestaShop
  65. 65. Net Promoter Score (NPS)Increases: Decreases:• CLV• Revenue Growth• Cross Sells• Repeat Purchases• Basket Size• Retention Rate• Brand Loyalty• Referrals• Customer Switching Rate• Support Costs• Advertising• Marketing Costs• Sales Cycle Time
  66. 66. NPS BenchmarksYour Name March 20, 2012 - Barcamp 5 PrestaShop
  67. 67. NPS BenchmarksYour Name March 20, 2012 - Barcamp 5 PrestaShopApple NPSscore of 72
  68. 68. Your Name March 20, 2012 - Barcamp 5 PrestaShop
  69. 69. SummaryYour Name• Importance of Customer Retention• How Loyalty Works• Your Options for Customer Loyalty• A New Way to Measure Customer LoyaltyMarch 20, 2012 - Barcamp 5 PrestaShop
  70. 70. Want To Talk Loyalty?Your Namewww.sweettoothrewards.com@getsweettoothMarch 20, 2012 - Barcamp 5 PrestaShopwww.points.com@pointsadvisor

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