How to Create and Maintain a Successful Loyalty Program Part C
1. 6. Communication
• Unless your loyalty program is communicated to your customers
and potential prospects in a clear and compelling way, it’s not
likely to make much of an impact on your business.
• New Zealand Telecom “Talking Points” – auto enrolled every
customer; 90% didn’t even know the program existed.
• Regular communication
2. Thank customer immediately upon purchase/membership
whether it is through a triggered email upon registration,
a welcome phone call, or even a thank-you “gift”
Continue to reinforce product/service benefits to
customer throughout their relationship with the brand.
Ensure that the customer feels part of something
“special.” Examples include tasks as simple as
personalization in all communications, to offering
exclusive member discounts
3. 7. Continuous Improvement
• Just like any relationship – Loyalty Programs must be
continually enhanced
• New rewards; new ways of earning them
• New benefits
• “Innovate on the customer’s behalf”
• Continue to provide unexpected value, exclusive offers “for
members only”
5. • Most customers do not simply defect - they change their
spending level or behavior
• These are not lapsed customers - but lapsing customers
• Because of their larger number, this has a bigger impact on
profits
• For example, a phone company found that 90% of it’s loyalty
opportunity came from reaching out to customers who had
dropped call-waiting or cancelled a second line.
• Retail stores, credit cards, airlines - all have to manage that
downward migration
7. Building Loyalty without a
Loyalty Program
Trish Mathe,
Vice President, Database Marketing,
Life Line Screening
8. Company Overview
Life Line Screening Inc. is the leading provider of
community-based preventive health screenings in
the United States
The mission is to make people aware of
unrecognized health problems and encourage
them to seek follow-up care with their personal
physician
8
9. Why Screen: Disease
Prevention and Management
Disease can be present before symptoms
occur
Doctors do not prescribe testing for
asymptomatic individuals without other
relevant risk factors
Resulting Problem: Individuals remain at
risk for a catastrophic event
A Solution: Preventive Screenings
9
10. Screening Process:
Participant’s Experience • “Results Letter”
Participant Screened At mailed within 3
Local Venue: weeks.
Screening Church, Club, Community
• Advised to share
Scheduled Center
with physician for
appropriate
follow-up.
• If anything critical
participant is
provided a
Results are reviewed “Doctor’s Review
by a board certified Kit” immediately
physician and advised to go
to a physician or
emergency room
within 24 hours.
10
11. Life Line Customer
Relevance Phase I
• Phase I Medically Appropriate
• One dimension– Results
• Drives personalized screening recommendations
Original Medically Appropriate
Rita
• 63 YO; LS: 7/20/07 Rita-specific
• Carotid: normal messaging
• Risk factors: family
history, weight
Dan Dan-specific
• 63 YO; LS: 5/2/07 One size fits messaging
• Carotid: significant all messages
• Risk factors: & sequence
age, gender
Pat-specific
Pat messaging
• 71 YO; LS: 2/20/07
• Carotid:
mild/moderate
• Risk factors: total
cholesterol >200
11
13. Phase II Results
• Winback is an example of Phase II segmentation
• An offer was customized for a specific group of lapsedcustomers
• The discount was only given to customers that needed incentive to respond
• Results show response was 2.5x greater with a special $99 offer
2011 Revenue Driven by Winback
600000
500000
400000
Winback Lift
300000
Revenue w/
Control
200000
100000
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
13
14. Phase III
Artery Image: Moderate CA Results
• Sample Creative
Learnings $170 $163 2.50%
$160 $150
• Artery Image was tested on Letter 2 2.00%
$150
customers with a Mild/Moderate CA
$140 1.50%
result. 2.06%
$130 1.00%
• Test group is out-performing control
$120 1.26%
group with a 99% statistical 0.50%
significance and has a larger Rev/Per $110
with a variance of $13. $100 0.00%
Moderate Control
Result Rev/Per
Take-Aways RR%
• Test again in October and apply to a larger crowd of different Package offers.
Use a combination of customer segments
Demographics, screening
behavior, prior results
AND
and micro-segments, based on risk (high
blood pressure, high cholesterol, diabetes
and family history)
15. So, Life Line Screening has built loyalty
without a loyalty program
• By continuing to focus on and learn from the customer, we continue to
enjoy increases in all of our customer performance metrics…including NPS
• By not “selling” we build
Credibility, so customers buy
More and recommend us more Life
Line at
• Voice of the customer research 74%
Gave us permission to be more
In our customers decisions around health and
wellness.
• What’s next? Website re-design focusing on
Education, not selling. Educational video both
Digitally and at the event. LLS community: lifelonghealth.com
17. 4 Predictions
• More companies will offer them; more consumers will choose
them
• They will have highly personalized, money-can’t-buy or
experiential rewards
• They will be tailored to reward only the most active, involved
customers - not just those who spend the most
• They will be driven by Apps, not cards
• What do you think?