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Loyalty Programs: Going Beyond Transactional Rewards

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Loyalty Programs: Going Beyond Transactional Rewards

  1. 1. Loyalty Programs: Going Beyond Transactional Rewards Lisa Evans Vice President, Analytic Strategy KBM Group
  2. 2. of CEOs are looking for new ways to stimulate customer demand and loyalty this year. (PWC, Global CEO Survey 2013) 82%
  3. 3. “The actual shopping, interactions and flow…and rewards…all are supported with orchestrated media, providing the stories that people can gather around.” (Forbes, 1/3/13)
  4. 4. 27% Enrollment 4% Participation (COLLOQUY Loyalty Census 2013)
  5. 5. Financial Rewards Emotional Loyalty Monetary rewards are expected but are not enough to build deeper brand loyalty.
  6. 6. • Maslow was right —people need achievements and respect. • Behavior-based recognition is rising fast.
  7. 7. Constant Evolution is Required Engagement has to constantly evolve to stay interesting • Changing reward types • Surprising with unexpected rewards
  8. 8. New Level of Customer Expectations Expectations of experiences are determined by what have now become ubiquitous brands. Customers are increasingly expecting the same type of experience regardless of their role as an individual (B2C) or organizational buyer (B2B).
  9. 9. Business to People (B2P)
  10. 10. Behavior Drives Loyalty Program Recognizes Program Rewards Members Transact Members Interact Traditional Programs
  11. 11. Transact & Interact Members Transact Members Interact • Purchase/spend • Save • Recycle • Social referrals • Retail shop interactions–show up • Play games • Watch videos • Take a quiz/poll • Social entertainment check ins &
  12. 12. Reward & Recognize Program Recognizes Program Rewards &• Travel • Experiential • Merchandise • Gift Cards • Charitable Donations • Discounts • Cash • Product Influence • Special Content Access • Social Currency • Status Rankings • Virtual Badges • Targeted Communications • Thank You
  13. 13. Social Connectivity Increases Perceived Value Source:Badgeville
  14. 14. Set a High Bar
  15. 15. Insight Loyalty Experienc e Online Experienc e Design Within the Customer Experience Ecosystem Insight– • The core of the experience • Drives the insights for each individual customer Online Experience – • Tailored to user • Provides the single online experience for all marketing programs and activities Loyalty Experience – • Beyond awarding points • Experience associated with being a loyal customer Defined by marketing strategy and outlines the foundation for solution-geared experiences Experience Ecosystem Experience Components
  16. 16. Loyal ty Recognize “Best” Customer Dialogue is Critical Give the Customer Control Go Beyond Financial Rewards Know Your Customer s Reward Engagem ent not just Transacti ons Emotion Moves People to Action Loyalty Program Best Practices
  17. 17. Tier 1 VIP Tier 2 Growth Customer Tier 3 Low Potential Growth Customer Loyalty Path Content Rewards Connectivity Communications Increasing Program Value Low Engagement Level High
  18. 18. Key Program Pillars 1. Content Provisioning (owned, access, earned) 1. Content Provisioning (owned, access, earned) 2. Personal/Peer Connectivity2. Personal/Peer Connectivity 3. Surprising Content/Rewards3. Surprising Content/Rewards 4. More Loyal, More Willing to Pay4. More Loyal, More Willing to Pay Solutions for emerging topics; surprise and delight “rewards” Facilitate personal/peer connectivity; integrate social sign-on Traditional Loyalty Traditional: Give More Away to Best Customers Price of Perceived Value Modern Loyalty Loyalty Program
  19. 19. Be Curious
  20. 20. Transaction Social Lifestyle Digital Seek and Apply Insight
  21. 21. Social Listening Inspires Program Innovation
  22. 22. Reward Portfolio Optimization
  23. 23. Media Targeting
  24. 24. Program Objectives Member / Non Member Insights Program Structure Quantitative Insights • Hard Benefits / Currency • Social Audit • Engagement (social, mobile, email) Program Design / ROI Implementation Planning q Test Design q Communications Plan Measurement Concept Design Qualitative Insights • Soft Benefits / Currency • Enrollment / Redemption Process Program Design Process
  25. 25. How Does Your Program Stack Up? Your Market Your Business Your Customers
  26. 26. Q & A Lisa Evans Vice President, Analytic Strategy Lisa.Evans@kbmg.com

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