SlideShare uma empresa Scribd logo
1 de 11
Baixar para ler offline
Convincing your CEO
to invest in a loyalty
programme
Contents 				 page
1.	Why loyalty?					3
2.	 10 steps to building
	 your business case				 5
3.	 Overcoming obstacles
	 and objections					6
4. 	Pilot programmes				 7
5.	 The cost of a
	 loyalty programme				8
6.	 In Summary: Your quick pitch 	 	
	 to the CEO and SMT			 9
Why Loyalty?
The customer landscape is changing; and as a result it is becoming
increasingly difficult to keep your customers loyal. But that’s just half of
the problem, if on top of that you need to convince your CEO and Senior
Management Team (SMT) why your customer experience and loyalty
need to be invested in.
With so many options available to customers, it’s becoming harder for
them to differentiate between you and your competitors – especially if
you’re all offering similar products at similar prices. And as their options
increase, customers are becoming very savvy, with higher demands
and expectations.
There’s increasing competition coming from angles you wouldn’t expect;
more and more brands are diversifying into new services and products,
think Homebase – a DIY store - selling bikes, and supermarkets selling
homeware. Simply offering efficient service is no longer enough.
The importance of customer loyalty
3
Loyal customers (those who visited
stores at least 10 times) account for
about 20% of a company’s customers.
That 20% drives 80% of
your business’s total revenue, and 72%
of total visits to your business.
(Source: Five Stars)
	46% of customers
admit to spending more due
to a loyalty programme.
(Source: Total Research Corp & Custom
Marketing Corp)
	It is six to seven
times more expensive to
acquire a new customer
than to keep a current one.
	(Source: Bain & Company analysis)
When you think of it like that, why
wouldn’t you need a loyalty strategy?
There are countless benefits to investing in a loyalty programme and
it is important that you focus on those that your CEO and SMT will
value most.
Loyal customers
·		Keep coming back, and will spend more over their ‘lifetime’ with
		your business.
·		Are likely to purchase more expensive products. Research states 		
		loyal customers spend 13% more during each transaction.
		(Source: Forrester Research)
·		Are the best advocates for your brand - your ‘Superfans’ will
		recommend you to their friends and families. Word of Mouth is one
		of the most powerful marketing tools.
·		Shop more often. There are 20% more transactions from members
		of a loyalty programme. (Source: Forrester Research)
·		Are more likely to embrace new initiatives.
Loyalty programmes
·		Are more likely to attract new customers (as well as the referrals from
		your existing loyal customers), and so contribute significantly to your 	
		customer acquisition strategy.
·		Encourage customers to purchase in order to be rewarded, rather 	
		than expect discounts.
·		Provide you with valuable customer data which can be turned into 	
		actionable insight. You can track their engagement with you across 	
		multiple touch-points, which then allows you to refine and target your 	
		marketing efforts; for example creates relevant content that makes 	
		your brand more ‘sticky’ to the customer.
·		Help you track customer patterns and behaviours. For example you 	
		may be able to identify when a customer is about to leave you and 	
		take action to retain them.
·		Enable you to identify where improvements are needed, either to 	
		your service or products.It takes 12-20 customers to
replace the value of a loyal one
Get to know your customer base. Some
of our partners’ loyalty programmes
have up to an 80% penetration rate!
Imagine being able to recognise and
understand 80% of your customers and
the impact this could have on all areas
of your business?
4
10 steps to building
your business case
It’s clear how important loyal customers are, and in turn how rewarding this loyalty benefits your business.
Now we’ll explore how to build a business case to convince your CEO and SMT.
What are your objectives? Be clear on exactly what you aim to
achieve, how you will achieve it and why now? Continually refer
back to what success looks like for your brand.
Prove the effect the programme is expected to have on profitability
and the customer base. Ensure that any claims you make are well
supported with evidence- we’ll explore this further below.
Take your existing customer data and show how a loyalty
programme can grow your business. For example, if you find you
have customers who repeat purchase the same products, a loyalty
programme could stretch their spend to buy new items. Or, if you
have lots of one-off customers, loyalty rewards could keep them
coming back.
Demonstrate that what you’re proposing has been fully researched.
Show how you’re responding to your customers feedback and
therefore needs. You could conduct a survey of customers to gain
insight on what they want out of a loyalty programme and how they
are likely to respond to it. If your customers are expressing a huge
desire for a programme, it can only strengthen your case.
Use case studies and examples from others in your industry to show
how well loyalty works for them.
1.
2.
4.
3.
5.
Work with colleagues from all areas of the business (finance,
marketing, merchandising etc.) to get input and support across the
organisation. They can act as a sounding-board for your initial
ideas, and you can also highlight your collaboration with other
departments when presenting your business case.
Clearly explain the programme structure and how it will work, but
keep this on a high level. Explain who will need to be involved and
what it may cost, but show what the ROI will be.
Reassure your SMT by committing to reporting back on the
programme at all stages. Agree how this will be done, at what
stages, how often and in what format. Don’t forget to discuss the
risks, and how you will overcome any potential negative results. If
you can show you have a plan to tackle any potential issues you are
much more likely to get the SMT’s buy in.
Be prepared to answer difficult questions and justify how a loyalty
programme would work for your business - see the next section for
more details.
Keep it simple! Whilst supporting your business case with data and
examples is vital, don’t overcomplicate things. Don’t use jargon,
the SMT will not understand or engage with marketing speak; they
want to see numbers and ROI projected in plain English.
6.
7.
9.
8.
10.
5
Youmaywellbefacedwithscepticswhenitcomestoloyaltyprogrammes,
particularly the age-old argument that a loyalty programme is often
unnecessary because it’s just a way of spending money to reward
customers who would probably have spent anyway.
We often find that when we keep a control
cell of highly engaged customers from a
campaign – guess what, they don’t spend!
The benefits of a loyalty programme can initially be felt by you as
you begin to gather vital information about your customers that will
feed into everything your business does: from how your marketing
budget is spent; to the products/services you offer; right through to
merchandising or how your front-line staff communicate with customers.
As we mentioned in the building a business case section, the key to
avoiding sceptics in the first place is to work with all departments.
Make sure you educate everyone from the beginning on how
important customer loyalty is and the benefits it will bring to your
business. Your colleagues won’t want to find out about the new
programme once it’s all in place, and plus they might have valuable
ideas to input!
Here’s three key ways to overcome
the tricky questions:
Overcoming obstacles
and objections
As they say, prevention is better than cure. Identify the potential
sceptics in your organisation – find out their concerns and address
them, talk them through your plan and how it will benefit the
organisation. This way you’ll hopefully have tackled (and have
answers for) the toughest questions before making your pitch.
Be prepared to use your data, research and examples of successful
loyalty programmes – these are brilliant tools for proving the value of
loyalty.
Run a pilot programme to test and learn.
1.
2.
3.
6
Pilot programmes
Pilot programmes are a great way to test your idea without the cost of
a full-scale programme, and allow you to present your CEO and SMT
with real results. We often work with retailers on pilots to explore the
value of their customer data. Here are our top tips for running a pilot:
Start small
· You don’t need to launch a full blown customer loyalty programme. 	
		Budget supermarket Lidl recently trialled a customer loyalty 		
		programme in just one region (Scotland), enabling them to explore 	
		whether loyalty works for them before they make a decision to roll it 	
		out to the rest of the UK.
· 	Pick something that requires the least amount of resource and 		
		financial backing.
Regularly report on how the pilot is going
· Test and refine the results to improve performance.
· Ensure the data is simple and outlines exactly what the findings are, 	
		and highlight the key points.
· To convince your SMT or CEO you need to prove the ROI for the time 	
		and resources spent on the pilot.
Demonstrate the outcomes of the pilot by
comparing the before and after results
· Highlight how it affected customer engagement and sentiment; e.g. 	
	 run a brief feedback survey or undertake social media listening.
Recognise any pitfalls
· What were they?
· Why did they happen?
· How can they be overcome?
Think beyond the pilot
· You’ve demonstrated that this works, but what would you do next? 	
		 Consider how you would evolve the programme and provide a plan 	
		 of how you plan to do it along with costs and the expected ROI.
7
The cost of a
loyalty programme
Customer loyalty should be viewed as an investment, not a cost. We
have found for some partners that for every £1 invested they get £6
return- quote us on this if you like! Does this seem a lot to invest given
the amount of data you will now be able to collect to start driving the
desired behaviours of stretching spend, increasing frequency and
consistency of spend and to deliver a retention strategy?
Develop a comprehensive financial plan to cost up your proposal
with potential expenses and expected sources of revenue, including
increased physical and online visits, increased spend, referrals and
other behaviour changes likely to increase profit. Customer insight and
loyalty programme providers like Ikano Bank can package this all up
for you to show the costs vs. projected ROI.
Here are some of the costs associated
with creating a loyalty programme:
Technical
The platform to used design, manage and report on your loyalty
programme. You could choose to purchase an off the shelf solution,
which could require training investment and staff resource; or you
could opt to work with specialist loyalty and insight providers such
as ourselves.
Marketing
Promoting your loyalty programme is key to its success. You need a
clear strategy as to how you will consistently talk about your loyaty
programme as well as considering your ‘Welcome’ and retention
tactics.
Benefits
These will vary in cost, and can be selected based on your budget.
For example, will you offer limited-time discounts for customers
who hit a certain spend threshold; free gifts; or different rewards
for different tiers of customers? Our clients all operate their
programmes differently, but using their customer insight we have
helped them to identify the most suitable rewards.
8
In Summary:
Your quick pitch to the CEO and SMT
The data
· On the back of the data-driven activity you can measure how 		
		successful a campaign/loyalty programme has been.
· Data lets you determine for every £1 invested what the ROI’s going 	
		to be - remember that we find on some accounts that for every £1 	
		invested, some of our partners are getting a £6 return - these are 	
		the numbers you need to present.
Show them examples of success
· Give them an idea of what could be achieved and what success 		
		could look like. For example, show case studies of campaigns who 	
		have achieved similar goals to those you are setting; whether this is
		to gain new customers, retain existing ones, or stretch spend. 		
		Browse online for examples, or take a look at our website for case 	
		studies on our partners’ success.
If they’re still sceptical suggest a pilot
· A small scale project that can be evaluated to prove its
		worth and that can be scaled up.
Help them understand why they’re in
business (to deliver shareholder value)
· In order to deliver shareholder value (i.e. profit) they must put
		the customer at the heart of everything.
· Loyalty programmes give the customer a value exchange -		
		you receive their data to better inform your business decisions,
		they receive relevant benefits.
The benefits of a loyalty programme
· Increased data collection.
· Satisfied, long term customers who refer others to the
		business they love
· Regular customers stay longer, buy more and more often
		= increased profit.
9
And finally, for support,
advice and best practice,
just give us a call!
www.ikano.co.uk
@ikano_UK
Ikano Bank is awesome with data,
but even better at relationships.
And that, ultimately, is what
turns customer loyalty into
a business’s success.
? 		 Do you want to build a new loyalty or 		
		 customer engagement programme?
? 		 Do you want to improve an existing one?
? 		 Or, do you simply want to turn customer 		
		 data into actionable insight?
No matter what stage you are at with your customer
engagement we have the intelligent, intuitive insight to
help you achieve ROI and drive incremental revenue:
Wherever you are with customer
engagement, we have the
intelligent, intuitive insight to help
you achieve greater ROI and
drive incremental revenue.
For more information please contact:
Barry Smith
barry.smith@ikano.net
07551 671 825
0115 850 3644

Mais conteúdo relacionado

Mais procurados

Avoid The Segmentation Trap (Experian)
Avoid The Segmentation Trap (Experian)Avoid The Segmentation Trap (Experian)
Avoid The Segmentation Trap (Experian)Tony Mooney
 
10 Examples of Exit Popups Used as a Customer Retention Strategy
10 Examples of Exit Popups Used as a Customer Retention Strategy10 Examples of Exit Popups Used as a Customer Retention Strategy
10 Examples of Exit Popups Used as a Customer Retention StrategyMihail Savov
 
Wholesale Distribution Incentives
Wholesale Distribution   IncentivesWholesale Distribution   Incentives
Wholesale Distribution Incentivespatrickwjones
 
7 Steps how to make CRM customer segmentation really work
7 Steps how to make CRM customer segmentation really work7 Steps how to make CRM customer segmentation really work
7 Steps how to make CRM customer segmentation really workGunnar Schroeder
 
Aquent_MSP_whitepapervaluecreation
Aquent_MSP_whitepapervaluecreationAquent_MSP_whitepapervaluecreation
Aquent_MSP_whitepapervaluecreationPaul Petersen, CCWP
 
Customer Acquisition: Choosing the Right Channels
Customer Acquisition: Choosing the Right ChannelsCustomer Acquisition: Choosing the Right Channels
Customer Acquisition: Choosing the Right ChannelsBerlin Startup Academy
 
Business operations consultant marketing plan
Business operations consultant marketing planBusiness operations consultant marketing plan
Business operations consultant marketing planzubeditufail
 
PM Forum - How to close the loop on client feedback
PM Forum - How to close the loop on client feedbackPM Forum - How to close the loop on client feedback
PM Forum - How to close the loop on client feedbackBen Sutton
 
Using Telemarketing to Create Exceptional Growth for Your Business
Using Telemarketing to Create Exceptional Growth for Your BusinessUsing Telemarketing to Create Exceptional Growth for Your Business
Using Telemarketing to Create Exceptional Growth for Your BusinessInsideUp
 
Best Practices for Channel Incentive Programs
Best Practices for Channel Incentive ProgramsBest Practices for Channel Incentive Programs
Best Practices for Channel Incentive ProgramsChannelinsight
 
How to Tackle the Top 8 Virtual Selling Challenges
How to Tackle the Top 8 Virtual Selling ChallengesHow to Tackle the Top 8 Virtual Selling Challenges
How to Tackle the Top 8 Virtual Selling ChallengesRAIN Group
 
New Customer Acquisition Presentation[1]
New Customer Acquisition Presentation[1]New Customer Acquisition Presentation[1]
New Customer Acquisition Presentation[1]Michael Lowenstein
 
Customer retention
Customer retentionCustomer retention
Customer retentionAtul Wadkar
 
Marketing Automation - Beyond Customer Acquisition
Marketing Automation - Beyond Customer AcquisitionMarketing Automation - Beyond Customer Acquisition
Marketing Automation - Beyond Customer AcquisitionAct-On Software
 
Total customerexperiencesummitrecap 2014
Total customerexperiencesummitrecap 2014Total customerexperiencesummitrecap 2014
Total customerexperiencesummitrecap 2014MDG Advertising
 
The Many Faces of Sales Enablement: How to Drive Revenue Through Retention Ma...
The Many Faces of Sales Enablement: How to Drive Revenue Through Retention Ma...The Many Faces of Sales Enablement: How to Drive Revenue Through Retention Ma...
The Many Faces of Sales Enablement: How to Drive Revenue Through Retention Ma...Aggregage
 

Mais procurados (19)

Avoid The Segmentation Trap (Experian)
Avoid The Segmentation Trap (Experian)Avoid The Segmentation Trap (Experian)
Avoid The Segmentation Trap (Experian)
 
10 Examples of Exit Popups Used as a Customer Retention Strategy
10 Examples of Exit Popups Used as a Customer Retention Strategy10 Examples of Exit Popups Used as a Customer Retention Strategy
10 Examples of Exit Popups Used as a Customer Retention Strategy
 
Wholesale Distribution Incentives
Wholesale Distribution   IncentivesWholesale Distribution   Incentives
Wholesale Distribution Incentives
 
7 Steps how to make CRM customer segmentation really work
7 Steps how to make CRM customer segmentation really work7 Steps how to make CRM customer segmentation really work
7 Steps how to make CRM customer segmentation really work
 
Aquent_MSP_whitepapervaluecreation
Aquent_MSP_whitepapervaluecreationAquent_MSP_whitepapervaluecreation
Aquent_MSP_whitepapervaluecreation
 
Customer Acquisition: Choosing the Right Channels
Customer Acquisition: Choosing the Right ChannelsCustomer Acquisition: Choosing the Right Channels
Customer Acquisition: Choosing the Right Channels
 
Business operations consultant marketing plan
Business operations consultant marketing planBusiness operations consultant marketing plan
Business operations consultant marketing plan
 
PM Forum - How to close the loop on client feedback
PM Forum - How to close the loop on client feedbackPM Forum - How to close the loop on client feedback
PM Forum - How to close the loop on client feedback
 
Using Telemarketing to Create Exceptional Growth for Your Business
Using Telemarketing to Create Exceptional Growth for Your BusinessUsing Telemarketing to Create Exceptional Growth for Your Business
Using Telemarketing to Create Exceptional Growth for Your Business
 
Best Practices for Channel Incentive Programs
Best Practices for Channel Incentive ProgramsBest Practices for Channel Incentive Programs
Best Practices for Channel Incentive Programs
 
CXarticle_Published
CXarticle_PublishedCXarticle_Published
CXarticle_Published
 
How to Tackle the Top 8 Virtual Selling Challenges
How to Tackle the Top 8 Virtual Selling ChallengesHow to Tackle the Top 8 Virtual Selling Challenges
How to Tackle the Top 8 Virtual Selling Challenges
 
New Customer Acquisition Presentation[1]
New Customer Acquisition Presentation[1]New Customer Acquisition Presentation[1]
New Customer Acquisition Presentation[1]
 
Sales funnel
Sales funnel   Sales funnel
Sales funnel
 
Customer retention
Customer retentionCustomer retention
Customer retention
 
Miller Heiman Group Be Ready 013017
Miller Heiman Group Be Ready 013017Miller Heiman Group Be Ready 013017
Miller Heiman Group Be Ready 013017
 
Marketing Automation - Beyond Customer Acquisition
Marketing Automation - Beyond Customer AcquisitionMarketing Automation - Beyond Customer Acquisition
Marketing Automation - Beyond Customer Acquisition
 
Total customerexperiencesummitrecap 2014
Total customerexperiencesummitrecap 2014Total customerexperiencesummitrecap 2014
Total customerexperiencesummitrecap 2014
 
The Many Faces of Sales Enablement: How to Drive Revenue Through Retention Ma...
The Many Faces of Sales Enablement: How to Drive Revenue Through Retention Ma...The Many Faces of Sales Enablement: How to Drive Revenue Through Retention Ma...
The Many Faces of Sales Enablement: How to Drive Revenue Through Retention Ma...
 

Destaque

ECI_CianNolan_BMDRES
ECI_CianNolan_BMDRESECI_CianNolan_BMDRES
ECI_CianNolan_BMDRESCian Nolan
 
Connectom- F. Lopez
Connectom- F. Lopez Connectom- F. Lopez
Connectom- F. Lopez Alan Mangan
 
CRTF Certification Fayme
CRTF Certification FaymeCRTF Certification Fayme
CRTF Certification FaymeFayme Brummel
 
Nordic outlook infographic
Nordic outlook infographicNordic outlook infographic
Nordic outlook infographicLaura Gundermann
 
Second multi-stakeholder partnerships for SDGs
Second multi-stakeholder partnerships for SDGsSecond multi-stakeholder partnerships for SDGs
Second multi-stakeholder partnerships for SDGsFelix Dodds
 
Cativas e PCCs como instrumento de proteção de risco
Cativas e PCCs como instrumento de proteção de risco Cativas e PCCs como instrumento de proteção de risco
Cativas e PCCs como instrumento de proteção de risco MDS Portugal
 
Aims objectives and goals
Aims objectives and goalsAims objectives and goals
Aims objectives and goalsAyaz Mahmood
 
Wsdm17 value-at-risk-bidding
Wsdm17 value-at-risk-biddingWsdm17 value-at-risk-bidding
Wsdm17 value-at-risk-biddingJun Wang
 
Captain nobody open book quiz (chap1 5)
Captain nobody open book quiz (chap1 5)Captain nobody open book quiz (chap1 5)
Captain nobody open book quiz (chap1 5)Theodora Tang
 
Entrevista clinica en psicologia
Entrevista clinica en psicologiaEntrevista clinica en psicologia
Entrevista clinica en psicologiaaydegonzalez
 

Destaque (13)

ECI_CianNolan_BMDRES
ECI_CianNolan_BMDRESECI_CianNolan_BMDRES
ECI_CianNolan_BMDRES
 
Connectom- F. Lopez
Connectom- F. Lopez Connectom- F. Lopez
Connectom- F. Lopez
 
CRTF Certification Fayme
CRTF Certification FaymeCRTF Certification Fayme
CRTF Certification Fayme
 
Nordic outlook infographic
Nordic outlook infographicNordic outlook infographic
Nordic outlook infographic
 
Second multi-stakeholder partnerships for SDGs
Second multi-stakeholder partnerships for SDGsSecond multi-stakeholder partnerships for SDGs
Second multi-stakeholder partnerships for SDGs
 
Cativas e PCCs como instrumento de proteção de risco
Cativas e PCCs como instrumento de proteção de risco Cativas e PCCs como instrumento de proteção de risco
Cativas e PCCs como instrumento de proteção de risco
 
API-570 Certificate
API-570 CertificateAPI-570 Certificate
API-570 Certificate
 
Aims objectives and goals
Aims objectives and goalsAims objectives and goals
Aims objectives and goals
 
Wsdm17 value-at-risk-bidding
Wsdm17 value-at-risk-biddingWsdm17 value-at-risk-bidding
Wsdm17 value-at-risk-bidding
 
Método grönholm
Método grönholmMétodo grönholm
Método grönholm
 
Diapositivas conducta 1
Diapositivas  conducta 1Diapositivas  conducta 1
Diapositivas conducta 1
 
Captain nobody open book quiz (chap1 5)
Captain nobody open book quiz (chap1 5)Captain nobody open book quiz (chap1 5)
Captain nobody open book quiz (chap1 5)
 
Entrevista clinica en psicologia
Entrevista clinica en psicologiaEntrevista clinica en psicologia
Entrevista clinica en psicologia
 

Semelhante a ikano_whitepaper_ceo

Experienceaudit
Experienceaudit Experienceaudit
Experienceaudit Amit Modi
 
Executing a Billion Dollar Customer Strategy
Executing a Billion Dollar Customer StrategyExecuting a Billion Dollar Customer Strategy
Executing a Billion Dollar Customer StrategyBill Lee
 
Best Practices for B2B Lead Nurturing
Best Practices for B2B Lead NurturingBest Practices for B2B Lead Nurturing
Best Practices for B2B Lead NurturingMatt Weeks
 
Best Practices for B2B Lead Nurturing
Best Practices for B2B Lead NurturingBest Practices for B2B Lead Nurturing
Best Practices for B2B Lead NurturingWilliam Mathurai
 
Best Practices for B2B Lead Nurturing
Best Practices for B2B Lead NurturingBest Practices for B2B Lead Nurturing
Best Practices for B2B Lead NurturingGrant Bentley
 
Best Customer Retention Tactics.pdf
Best Customer Retention Tactics.pdfBest Customer Retention Tactics.pdf
Best Customer Retention Tactics.pdfCXcherryInternship
 
Hands- on Social Media 7: Building And Selling Social Strategy
Hands- on Social Media 7: Building And Selling Social StrategyHands- on Social Media 7: Building And Selling Social Strategy
Hands- on Social Media 7: Building And Selling Social Strategyagencyside
 
5 ideal customer intimacy strategies that never fail
5 ideal customer intimacy strategies that never fail5 ideal customer intimacy strategies that never fail
5 ideal customer intimacy strategies that never failDeskXpand
 
Life cycle marketing for the automotive services industry
Life cycle marketing for the automotive services industryLife cycle marketing for the automotive services industry
Life cycle marketing for the automotive services industryCatalyst
 
What are the strategies for business startup ittisa
What are the strategies for business startup   ittisaWhat are the strategies for business startup   ittisa
What are the strategies for business startup ittisaIttisa
 
Turn you customers into brand advocates
Turn  you customers into brand advocatesTurn  you customers into brand advocates
Turn you customers into brand advocatesPros Global Inc
 
A to Z of Business Strategy
A to Z of Business StrategyA to Z of Business Strategy
A to Z of Business StrategyMark Conway
 
Article with Title
Article with TitleArticle with Title
Article with TitleAli Malik
 
Digitizing the Customer Experience within a Utility
Digitizing the Customer Experience within a Utility Digitizing the Customer Experience within a Utility
Digitizing the Customer Experience within a Utility Robert Simon
 
8 STEP TO UNLOCK KEY CUSTOMER ACCOUNTS POTENTIAL
8 STEP TO UNLOCK KEY CUSTOMER ACCOUNTS POTENTIAL8 STEP TO UNLOCK KEY CUSTOMER ACCOUNTS POTENTIAL
8 STEP TO UNLOCK KEY CUSTOMER ACCOUNTS POTENTIALDr Wilfred Monteiro
 

Semelhante a ikano_whitepaper_ceo (20)

Customer Experience audit
Customer Experience auditCustomer Experience audit
Customer Experience audit
 
Experienceaudit
Experienceaudit Experienceaudit
Experienceaudit
 
Experience Audit
Experience AuditExperience Audit
Experience Audit
 
Executing a Billion Dollar Customer Strategy
Executing a Billion Dollar Customer StrategyExecuting a Billion Dollar Customer Strategy
Executing a Billion Dollar Customer Strategy
 
Proving ROI on Customer Experience | McorpCX
Proving ROI on Customer Experience | McorpCXProving ROI on Customer Experience | McorpCX
Proving ROI on Customer Experience | McorpCX
 
2010 crm reflections
2010 crm reflections2010 crm reflections
2010 crm reflections
 
Best Practices for B2B Lead Nurturing
Best Practices for B2B Lead NurturingBest Practices for B2B Lead Nurturing
Best Practices for B2B Lead Nurturing
 
Best Practices for B2B Lead Nurturing
Best Practices for B2B Lead NurturingBest Practices for B2B Lead Nurturing
Best Practices for B2B Lead Nurturing
 
Best Practices for B2B Lead Nurturing
Best Practices for B2B Lead NurturingBest Practices for B2B Lead Nurturing
Best Practices for B2B Lead Nurturing
 
Best Customer Retention Tactics.pdf
Best Customer Retention Tactics.pdfBest Customer Retention Tactics.pdf
Best Customer Retention Tactics.pdf
 
Hands- on Social Media 7: Building And Selling Social Strategy
Hands- on Social Media 7: Building And Selling Social StrategyHands- on Social Media 7: Building And Selling Social Strategy
Hands- on Social Media 7: Building And Selling Social Strategy
 
5 ideal customer intimacy strategies that never fail
5 ideal customer intimacy strategies that never fail5 ideal customer intimacy strategies that never fail
5 ideal customer intimacy strategies that never fail
 
Life cycle marketing for the automotive services industry
Life cycle marketing for the automotive services industryLife cycle marketing for the automotive services industry
Life cycle marketing for the automotive services industry
 
What are the strategies for business startup ittisa
What are the strategies for business startup   ittisaWhat are the strategies for business startup   ittisa
What are the strategies for business startup ittisa
 
Turn you customers into brand advocates
Turn  you customers into brand advocatesTurn  you customers into brand advocates
Turn you customers into brand advocates
 
A to Z of Business Strategy
A to Z of Business StrategyA to Z of Business Strategy
A to Z of Business Strategy
 
Article with Title
Article with TitleArticle with Title
Article with Title
 
Digitizing the Customer Experience within a Utility
Digitizing the Customer Experience within a Utility Digitizing the Customer Experience within a Utility
Digitizing the Customer Experience within a Utility
 
8 STEP TO UNLOCK KEY CUSTOMER ACCOUNTS POTENTIAL
8 STEP TO UNLOCK KEY CUSTOMER ACCOUNTS POTENTIAL8 STEP TO UNLOCK KEY CUSTOMER ACCOUNTS POTENTIAL
8 STEP TO UNLOCK KEY CUSTOMER ACCOUNTS POTENTIAL
 
Keys to Success
Keys to SuccessKeys to Success
Keys to Success
 

Mais de Barry Smith

ikano_whitepaper_techtips
ikano_whitepaper_techtipsikano_whitepaper_techtips
ikano_whitepaper_techtipsBarry Smith
 
ikano_whitepaper_personalisation
ikano_whitepaper_personalisationikano_whitepaper_personalisation
ikano_whitepaper_personalisationBarry Smith
 
ikano_whitepaper_dynamicengagement
ikano_whitepaper_dynamicengagementikano_whitepaper_dynamicengagement
ikano_whitepaper_dynamicengagementBarry Smith
 
ikano_whitepaper_alwayson
ikano_whitepaper_alwaysonikano_whitepaper_alwayson
ikano_whitepaper_alwaysonBarry Smith
 
ikano_howto_socialloyalty
ikano_howto_socialloyaltyikano_howto_socialloyalty
ikano_howto_socialloyaltyBarry Smith
 
ikano_howto_mobileengagement
ikano_howto_mobileengagementikano_howto_mobileengagement
ikano_howto_mobileengagementBarry Smith
 

Mais de Barry Smith (6)

ikano_whitepaper_techtips
ikano_whitepaper_techtipsikano_whitepaper_techtips
ikano_whitepaper_techtips
 
ikano_whitepaper_personalisation
ikano_whitepaper_personalisationikano_whitepaper_personalisation
ikano_whitepaper_personalisation
 
ikano_whitepaper_dynamicengagement
ikano_whitepaper_dynamicengagementikano_whitepaper_dynamicengagement
ikano_whitepaper_dynamicengagement
 
ikano_whitepaper_alwayson
ikano_whitepaper_alwaysonikano_whitepaper_alwayson
ikano_whitepaper_alwayson
 
ikano_howto_socialloyalty
ikano_howto_socialloyaltyikano_howto_socialloyalty
ikano_howto_socialloyalty
 
ikano_howto_mobileengagement
ikano_howto_mobileengagementikano_howto_mobileengagement
ikano_howto_mobileengagement
 

ikano_whitepaper_ceo

  • 1. Convincing your CEO to invest in a loyalty programme
  • 2. Contents page 1. Why loyalty? 3 2. 10 steps to building your business case 5 3. Overcoming obstacles and objections 6 4. Pilot programmes 7 5. The cost of a loyalty programme 8 6. In Summary: Your quick pitch to the CEO and SMT 9
  • 3. Why Loyalty? The customer landscape is changing; and as a result it is becoming increasingly difficult to keep your customers loyal. But that’s just half of the problem, if on top of that you need to convince your CEO and Senior Management Team (SMT) why your customer experience and loyalty need to be invested in. With so many options available to customers, it’s becoming harder for them to differentiate between you and your competitors – especially if you’re all offering similar products at similar prices. And as their options increase, customers are becoming very savvy, with higher demands and expectations. There’s increasing competition coming from angles you wouldn’t expect; more and more brands are diversifying into new services and products, think Homebase – a DIY store - selling bikes, and supermarkets selling homeware. Simply offering efficient service is no longer enough. The importance of customer loyalty 3 Loyal customers (those who visited stores at least 10 times) account for about 20% of a company’s customers. That 20% drives 80% of your business’s total revenue, and 72% of total visits to your business. (Source: Five Stars) 46% of customers admit to spending more due to a loyalty programme. (Source: Total Research Corp & Custom Marketing Corp) It is six to seven times more expensive to acquire a new customer than to keep a current one. (Source: Bain & Company analysis)
  • 4. When you think of it like that, why wouldn’t you need a loyalty strategy? There are countless benefits to investing in a loyalty programme and it is important that you focus on those that your CEO and SMT will value most. Loyal customers · Keep coming back, and will spend more over their ‘lifetime’ with your business. · Are likely to purchase more expensive products. Research states loyal customers spend 13% more during each transaction. (Source: Forrester Research) · Are the best advocates for your brand - your ‘Superfans’ will recommend you to their friends and families. Word of Mouth is one of the most powerful marketing tools. · Shop more often. There are 20% more transactions from members of a loyalty programme. (Source: Forrester Research) · Are more likely to embrace new initiatives. Loyalty programmes · Are more likely to attract new customers (as well as the referrals from your existing loyal customers), and so contribute significantly to your customer acquisition strategy. · Encourage customers to purchase in order to be rewarded, rather than expect discounts. · Provide you with valuable customer data which can be turned into actionable insight. You can track their engagement with you across multiple touch-points, which then allows you to refine and target your marketing efforts; for example creates relevant content that makes your brand more ‘sticky’ to the customer. · Help you track customer patterns and behaviours. For example you may be able to identify when a customer is about to leave you and take action to retain them. · Enable you to identify where improvements are needed, either to your service or products.It takes 12-20 customers to replace the value of a loyal one Get to know your customer base. Some of our partners’ loyalty programmes have up to an 80% penetration rate! Imagine being able to recognise and understand 80% of your customers and the impact this could have on all areas of your business? 4
  • 5. 10 steps to building your business case It’s clear how important loyal customers are, and in turn how rewarding this loyalty benefits your business. Now we’ll explore how to build a business case to convince your CEO and SMT. What are your objectives? Be clear on exactly what you aim to achieve, how you will achieve it and why now? Continually refer back to what success looks like for your brand. Prove the effect the programme is expected to have on profitability and the customer base. Ensure that any claims you make are well supported with evidence- we’ll explore this further below. Take your existing customer data and show how a loyalty programme can grow your business. For example, if you find you have customers who repeat purchase the same products, a loyalty programme could stretch their spend to buy new items. Or, if you have lots of one-off customers, loyalty rewards could keep them coming back. Demonstrate that what you’re proposing has been fully researched. Show how you’re responding to your customers feedback and therefore needs. You could conduct a survey of customers to gain insight on what they want out of a loyalty programme and how they are likely to respond to it. If your customers are expressing a huge desire for a programme, it can only strengthen your case. Use case studies and examples from others in your industry to show how well loyalty works for them. 1. 2. 4. 3. 5. Work with colleagues from all areas of the business (finance, marketing, merchandising etc.) to get input and support across the organisation. They can act as a sounding-board for your initial ideas, and you can also highlight your collaboration with other departments when presenting your business case. Clearly explain the programme structure and how it will work, but keep this on a high level. Explain who will need to be involved and what it may cost, but show what the ROI will be. Reassure your SMT by committing to reporting back on the programme at all stages. Agree how this will be done, at what stages, how often and in what format. Don’t forget to discuss the risks, and how you will overcome any potential negative results. If you can show you have a plan to tackle any potential issues you are much more likely to get the SMT’s buy in. Be prepared to answer difficult questions and justify how a loyalty programme would work for your business - see the next section for more details. Keep it simple! Whilst supporting your business case with data and examples is vital, don’t overcomplicate things. Don’t use jargon, the SMT will not understand or engage with marketing speak; they want to see numbers and ROI projected in plain English. 6. 7. 9. 8. 10. 5
  • 6. Youmaywellbefacedwithscepticswhenitcomestoloyaltyprogrammes, particularly the age-old argument that a loyalty programme is often unnecessary because it’s just a way of spending money to reward customers who would probably have spent anyway. We often find that when we keep a control cell of highly engaged customers from a campaign – guess what, they don’t spend! The benefits of a loyalty programme can initially be felt by you as you begin to gather vital information about your customers that will feed into everything your business does: from how your marketing budget is spent; to the products/services you offer; right through to merchandising or how your front-line staff communicate with customers. As we mentioned in the building a business case section, the key to avoiding sceptics in the first place is to work with all departments. Make sure you educate everyone from the beginning on how important customer loyalty is and the benefits it will bring to your business. Your colleagues won’t want to find out about the new programme once it’s all in place, and plus they might have valuable ideas to input! Here’s three key ways to overcome the tricky questions: Overcoming obstacles and objections As they say, prevention is better than cure. Identify the potential sceptics in your organisation – find out their concerns and address them, talk them through your plan and how it will benefit the organisation. This way you’ll hopefully have tackled (and have answers for) the toughest questions before making your pitch. Be prepared to use your data, research and examples of successful loyalty programmes – these are brilliant tools for proving the value of loyalty. Run a pilot programme to test and learn. 1. 2. 3. 6
  • 7. Pilot programmes Pilot programmes are a great way to test your idea without the cost of a full-scale programme, and allow you to present your CEO and SMT with real results. We often work with retailers on pilots to explore the value of their customer data. Here are our top tips for running a pilot: Start small · You don’t need to launch a full blown customer loyalty programme. Budget supermarket Lidl recently trialled a customer loyalty programme in just one region (Scotland), enabling them to explore whether loyalty works for them before they make a decision to roll it out to the rest of the UK. · Pick something that requires the least amount of resource and financial backing. Regularly report on how the pilot is going · Test and refine the results to improve performance. · Ensure the data is simple and outlines exactly what the findings are, and highlight the key points. · To convince your SMT or CEO you need to prove the ROI for the time and resources spent on the pilot. Demonstrate the outcomes of the pilot by comparing the before and after results · Highlight how it affected customer engagement and sentiment; e.g. run a brief feedback survey or undertake social media listening. Recognise any pitfalls · What were they? · Why did they happen? · How can they be overcome? Think beyond the pilot · You’ve demonstrated that this works, but what would you do next? Consider how you would evolve the programme and provide a plan of how you plan to do it along with costs and the expected ROI. 7
  • 8. The cost of a loyalty programme Customer loyalty should be viewed as an investment, not a cost. We have found for some partners that for every £1 invested they get £6 return- quote us on this if you like! Does this seem a lot to invest given the amount of data you will now be able to collect to start driving the desired behaviours of stretching spend, increasing frequency and consistency of spend and to deliver a retention strategy? Develop a comprehensive financial plan to cost up your proposal with potential expenses and expected sources of revenue, including increased physical and online visits, increased spend, referrals and other behaviour changes likely to increase profit. Customer insight and loyalty programme providers like Ikano Bank can package this all up for you to show the costs vs. projected ROI. Here are some of the costs associated with creating a loyalty programme: Technical The platform to used design, manage and report on your loyalty programme. You could choose to purchase an off the shelf solution, which could require training investment and staff resource; or you could opt to work with specialist loyalty and insight providers such as ourselves. Marketing Promoting your loyalty programme is key to its success. You need a clear strategy as to how you will consistently talk about your loyaty programme as well as considering your ‘Welcome’ and retention tactics. Benefits These will vary in cost, and can be selected based on your budget. For example, will you offer limited-time discounts for customers who hit a certain spend threshold; free gifts; or different rewards for different tiers of customers? Our clients all operate their programmes differently, but using their customer insight we have helped them to identify the most suitable rewards. 8
  • 9. In Summary: Your quick pitch to the CEO and SMT The data · On the back of the data-driven activity you can measure how successful a campaign/loyalty programme has been. · Data lets you determine for every £1 invested what the ROI’s going to be - remember that we find on some accounts that for every £1 invested, some of our partners are getting a £6 return - these are the numbers you need to present. Show them examples of success · Give them an idea of what could be achieved and what success could look like. For example, show case studies of campaigns who have achieved similar goals to those you are setting; whether this is to gain new customers, retain existing ones, or stretch spend. Browse online for examples, or take a look at our website for case studies on our partners’ success. If they’re still sceptical suggest a pilot · A small scale project that can be evaluated to prove its worth and that can be scaled up. Help them understand why they’re in business (to deliver shareholder value) · In order to deliver shareholder value (i.e. profit) they must put the customer at the heart of everything. · Loyalty programmes give the customer a value exchange - you receive their data to better inform your business decisions, they receive relevant benefits. The benefits of a loyalty programme · Increased data collection. · Satisfied, long term customers who refer others to the business they love · Regular customers stay longer, buy more and more often = increased profit. 9
  • 10. And finally, for support, advice and best practice, just give us a call!
  • 11. www.ikano.co.uk @ikano_UK Ikano Bank is awesome with data, but even better at relationships. And that, ultimately, is what turns customer loyalty into a business’s success. ? Do you want to build a new loyalty or customer engagement programme? ? Do you want to improve an existing one? ? Or, do you simply want to turn customer data into actionable insight? No matter what stage you are at with your customer engagement we have the intelligent, intuitive insight to help you achieve ROI and drive incremental revenue: Wherever you are with customer engagement, we have the intelligent, intuitive insight to help you achieve greater ROI and drive incremental revenue. For more information please contact: Barry Smith barry.smith@ikano.net 07551 671 825 0115 850 3644