Continuous Loyalty - From Transactions to Interactions
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How do you encourage customers to repeatedly choose your brand in the face of alternatives? This is the question we posed at our executive retail breakfast series in London, Manchester and Hamburg this month.
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Continuous Loyalty - From Transactions to Interactions
- 1. Moving Beyond Loyalty Programs TOWARDS REAL LOYALTY
- 2. 2 LOYALTY IS AN EMOTION
- 3. …SO WHY DO WE TREAT IT LIKE A TRANSACTION?
- 4. WE HAVE BECOME VICTIMS OF HISTORY AND HABIT 1700s COPPER TOKENS 1800s COUPONS 1930s - 70s TRADING STAMPS 1980s DEREGULATION 1990s DIGITIZATION 2000s MOBILE TOOLS
- 5. -1% revenue growth DONE WRONG = RISK MARGINS -10% lower EBITDA
- 6. ONE SIZE DOES NOT FIT ALL
- 7. DOING THE SAME AS OTHERS LEADS TO FAILING IN THE SAME WAY Customer engagement ROI over time
- 8. SO.. WHAT COULD BE DIFFERENT? HOW TO SHAPE YOUR FUTURE? WHERE DID IT GO WRONG?
- 9. A NEW APPROACH: “WHOLE BRAIN” UNDERSTANDING OF LOYALTY TRUST HABITAFFINITY
- 10. CONSISTENCY BUILDS TRUST ANTICIPATETEST DELIVER RETEST REINFORCE DELIGHT
- 11. EXPERIENCES BUILD AFFINITY Focused on tasks Focused on experiences FEW PROGRAMS CROSS THIS LINE MEANINGFUL PLEASURABLE CONVENIENT USABLE RELIABLE FUNCTIONAL
- 13. MOVING BEYOND THE TRADITIONAL APPROACH TransparentRelevant Contextual Human Centered Connected
- 14. CONTEXTUAL
- 15. PLACE PURPOSE
- 17. IDENTIFY CATALYSTS FOR NEW HABIT BUILDING TIME DEGREEOFCOMMITMENT Traditional programs Experimentation Moments of delight
- 18. 18 TRANSPARENT
- 19. HOW DO YOU USE WHAT YOU KNOW ABOUT ME?
- 24. 54%More spend 2xMore referrals 83%More Engaged
- 25. CONNECTED
- 26. LOYALTY IS AN EMOTION A crowd is a tribe without a leader. A crowd is a tribe without communication. Most organisations spend their time marketing the crowd. Smart organisations assemble the tribe. SETH GODIN
- 27. 27
- 29. Insight Engage Anywhere/ Everywhere Respond at moment of impact Big Data Mobility Cloud Insight Engagement Responsiveness
- 30. SO.. WHAT COULD BE DIFFERENT? HOW TO SHAPE YOUR FUTURE? WHERE DID IT GO WRONG?
- 32. Standard, static program Long cycles, then relaunch BEYOND “ONE AND DONE” PROGRAMS Traditional Approach IDEA STREAMS INNOVATION CAPABILITY BUILD, TEST & LEARN GO STOP PIVOT Continuous Loyalty
- 33. CREATE THE PLATFORM FOR EXPERIMENTATION AND GROWTH Concept Ideas and prototypes Explore with customers Pilot Few segments/ sites Continue learning Scale up Refine and expand Manage capacity Rollout Loyal, free and paid Mainstream Evolve Becomes commodity Change the game
- 34. 34
- 35. ALIGNING THE DIMENSIONS IS LIKE TETRIS Organizational CapabilitiesCustomer experience
- 36. Customer experience ALIGNING THE DIMENSIONS IS LIKE TETRIS: STEP 1
- 37. 37 75 HAMBURGERS A SECOND
- 38. 38 VALUE IS CREATED BY OUTCOMES
- 39. DOUBLE DIAMOND understand define explore create FIND SOLVE
- 40. 40 FIND THE NEED
- 42. DOUBLE DIAMOND understand define explore create FIND SOLVE
- 45. 45 BUILD - MEASURE - LEARN
- 46. 46 CONTINUITY
- 47. ALIGNING THE DIMENSIONS IS LIKE TETRIS Organizational Capabilities Organizational Design IT Customer Experience AND THERE ARE MORE THAN 2 PIECES
- 48. YOU NEVER KNOW WHAT IS GOING TO HIT YOU NEXT
- 49. 49 A KATA FOR EVERY PIECE
- 50. IMPROVEMENT KATA BY TOYOTA
- 51. THE PATH TO CONTINUOUS LOYALTY Baking innovation into the mindset and culture of your brand and people Creating a capability that evolves with your customers over time ITERATE
- 52. • Not all customers are created equal. Avoid over- investing by being all things to all people • Value is variable. Customers value more than money. Successful programs depend on understanding the right levers • Experience matters. Moments of connection and relevance create habits that drive repeat behavior • Test, learn, repeat. Design for iterative tests and take advantage of test data for continuous delivery and refinement TAKE-AWAYS