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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
 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
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”
Loyalty is not
black and white
•   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
Can you Create Loyalty
       without
 a Loyalty Program?
Building Loyalty without a
     Loyalty Program
             Trish Mathe,
Vice President, Database Marketing,
         Life Line Screening
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
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
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
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
Phase I Results
   Response Rate     Revenue / Person                        Profit / Piece
5.0%               $150                               $5.0

4.5%               $145                               $4.5
                                –5.9%                            +29.5%
4.0%    +32.9%     $140                               $4.0

3.5%               $135                               $3.5

3.0%               $130                               $3.0

2.5%               $125                               $2.5

2.0%               $120                               $2.0

1.5%               $115                               $1.5

1.0%               $110                               $1.0

0.5%               $105                               $0.5

0.0%               $100                               $0.0
                   Medically Appropriate Tests
                   Control (Rosenspan Personalized)
                                                                              12
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
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)
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
The Future of
Loyalty Programs
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?
Any questions?
Thank you…
now here’s a treat!

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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
  • 6. Can you Create Loyalty without a Loyalty Program?
  • 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
  • 12. Phase I Results Response Rate Revenue / Person Profit / Piece 5.0% $150 $5.0 4.5% $145 $4.5 –5.9% +29.5% 4.0% +32.9% $140 $4.0 3.5% $135 $3.5 3.0% $130 $3.0 2.5% $125 $2.5 2.0% $120 $2.0 1.5% $115 $1.5 1.0% $110 $1.0 0.5% $105 $0.5 0.0% $100 $0.0 Medically Appropriate Tests Control (Rosenspan Personalized) 12
  • 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?