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Value-led Loyalty - Loyalty as an Outcome - Nicholas Sadlier, Epsilon

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Value-led Loyalty - Loyalty as an Outcome - Nicholas Sadlier, Epsilon

In the age of shifting loyalties, loyalty marketing is the ace up the CMO’s sleeve. Experience shows that when loyalty marketing is done right, it deepens consumer trust based on insight and relevance. Trust is marketing gold in a post-Covid world. But the loyalty paradigm is also evolving. To continue to succeed, brands need agility and one-on-one relationships. And with third-party cookies on the way out, brands will have less data to create authentic connections. Hence loyalty marketing has become even more critical as a source of first-party data.A strong partnership hinges on value exchange. Loyalty marketing is no different. The desired state is loyalty as an outcome and not just a program.
Key Takeaways:
1. Value -led approach to loyalty marketing
2. Who's done it well
3. Tips and tricks to loyalty marketing

In the age of shifting loyalties, loyalty marketing is the ace up the CMO’s sleeve. Experience shows that when loyalty marketing is done right, it deepens consumer trust based on insight and relevance. Trust is marketing gold in a post-Covid world. But the loyalty paradigm is also evolving. To continue to succeed, brands need agility and one-on-one relationships. And with third-party cookies on the way out, brands will have less data to create authentic connections. Hence loyalty marketing has become even more critical as a source of first-party data.A strong partnership hinges on value exchange. Loyalty marketing is no different. The desired state is loyalty as an outcome and not just a program.
Key Takeaways:
1. Value -led approach to loyalty marketing
2. Who's done it well
3. Tips and tricks to loyalty marketing

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Value-led Loyalty - Loyalty as an Outcome - Nicholas Sadlier, Epsilon

  1. 1. KEYNOTE SINGAPORE ~ SEPTEMBER 15 - 16, 2022 DIGIMARCONSOUTHEASTASIA.COM | #DigiMarConSoutheastAsia DIGIMARCONSINGAPORE.SG | #DigiMarConSingapore Nicholas Sadlier DIRECTOR, DIGITAL SOLUTIONS APAC, MEA EPSILON Value-led Loyalty - Loyalty as an Outcome
  2. 2. 2 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. LOYALTY Programs are ubiquitous What’s the role of Loyalty? And whose doing it well?
  3. 3. 3 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 3 3 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 3 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. THE MARKETING INDUSTRY IS AT AN INFLECTION POINT BRANDS: MARKETING GOALS Drive Growth Reduce costs Partner wisely Prove performance CONSUMERS: RISING EXPECTATIONS Hyper-connected Convenience with quality Want to be recognized, respected & protected LANDSCAPE: INCREASINGLY DIFFICULT Media fragmentation ‘Partners’ conflicting interest Tech stack under-delivery Incomplete customer views Emerging privacy laws
  4. 4. 4 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 4 4 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 4 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 4 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. THE IDEAL STATE: MARKTING NIRVANA Create one 360⁰ view of each consumer by unifying all your data on experiential and transactional touchpoints with the consumer Leverage that data to create emotional connection through marketing strategy and execution across all channels EXPERIENTIAL & TRANSACTIONAL DATA MARKETING CHANNELS = PERSONALIZED EXPERIENCES
  5. 5. 5 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 5 5 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 5 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 5 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. BRANDS ARE RESPONDING Personalizing consumer experiences Modernizing and automating infrastructure Seamlessly blend physical and digital experiences Re-distribute labor for higher value generation Removing waste from core operations Centralizing data & core function
  6. 6. 6 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 6 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. TRADITIONAL VS. VALUE-LED LOYALTY champion
  7. 7. 7 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. LOYALTY PREDICTS, DRIVES AND MEASURES CX
  8. 8. DRIVING INTERACTION
  9. 9. 9 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. Angela New loyalty member National Campaign Ad Offer Journey: Website Sign up In Venue Offer Redemption Personalization: Welcome Offer Dynamic Segmentation Dynamic Segmentation RFM, FLV, SKUs Post Purchase Email with bounce back offer Re-Engagement with Dynamic Content Event: App Download Personalized Offer: Mobile Scratch Off Repeat Purchase Time to Repeat Purchase(s) Products Purchased Dynamic Segmentation Ecom Offer Redemption Products Purchased Click to Claim SKU Based Offer NAVIGATING THE CUSTOMER JOURNEY KEY Data Capture Interaction
  10. 10. 10 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. CULTIVATING CUSTOMER RELATIONSHIPS HAS NEVER BEEN MORE IMPORTANT OR COMPLICATED… Loyalty members can spend up to 3X more than non- members 3X Of customers say they switched loyalty programs to a competitor who better met their needs 50% Consumers belong to nearly 15 loyalty programs on average 15 Adding 5% more loyalty customers can increase profit 15-20% 5%
  11. 11. 11 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. THE ROLE OF LOYALTY
  12. 12. 12 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. THE ROLE OF LOYALTY IS TO… Motivate customer behavior change in order to increase… FREQUENCY SPEND & & DELTA
  13. 13. 13 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 13 13 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 13 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. GOAL GRADIENT EFFECT
  14. 14. 14 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 14 14 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 14 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. LOYALTY PROGRAM VALUE PROPOSITION TYPES • “Woo hoo, you earned a free coffee” • ”Choose your birthday free gift” SURPRISE & DELIGHT Members receive value with surprise and delight rewards, like free items or services. • Pay $100 annual fee and receive 25% off regular price purchases • Pay $99 annually and receive free 2-day shipping and more PAID MEMBERSHIP Members receive value once enrolled, aka “pay to play” program. THRESHOLD Members receive rewards at specific behavior thresholds, like spend, visits or frequency. • Spend $500 and get $25 in rewards • Earn 1 point per $1
  15. 15. THE IDEAL LOYALTY VALUE PROPOSITION IS A BLEND THE RATIONAL VALUE I get my money’s worth! Compelling HARD benefits • Economic • Tangible (merchandise) • Promotional currency • Instant rewards • Promotional offers • Gamification • Point gifting / donating THE EMOTIONAL VALUE They know I’m important! Compelling SOFT benefits • Status (tier / level) • Appreciation/recognition • Early access • Special privilege • Services • Experiences • Exclusive content IDEAL VALUE PROPOSITION
  16. 16. 16 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 16 16 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 16 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. INTEGRATED PLATFORM Requires a powerful, reliable and scalable cloud-based platform, flexible enough to integrate with complex ecosystem REAL-TIME REWARDS Recognize and reward customer behavior the moment they take action with real-time rewards earning and redemption ENGAGING MOMENTS Engage with customers in the moments that matter most with behavior-driven, offers, engagement and gamification experiences TO ENABLE A 1:1 LOYALTY JOURNEY FOR EVERY CUSTOMER SELF-SERVE INTERFACE Easy to use self-serve interface to manage your program, marketing and members INTERACTIVE DASHBOARDS Stay on top of your program’s performance with details at-a-glance KPI metrics dashboard ROBUST REPORTING Comprehensive library of user-friendly standard reports with flexible, ad-hoc design MACHINE LEARNING & INSIGHTS Use your data the right way with machine learning, artificial intelligence and predictive analytics CONNECTED EXPERIENCES Seamless integration of data, multichannel marketing and digital media services DIGITAL FOCUS Make it easy for members to manage their account with a branded program website and mobile app
  17. 17. 17 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 17 17 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 17 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. CREATING AN AUTONOMOUS FEEDBACK LOOP Customer Engagement
  18. 18. WHOSE DOING IT WELL?
  19. 19. 19 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 19 19 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 19 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. Key Factors Drivers Great Examples 1. Drives interaction - Rewards that resonate - Customer centric - Ease of use - Coalition & partner programs 2. Digital Optimization - Seamless omnichannel - Easy UI/UX - Single sign on - Real time - Payments 3. Innovation - Metaverse / Blockchain - Virtual assistants, AR - Machine Learning, AI - Gamification - Biometrics 4. Emotional connection - Aspirational - Hyper-personalization - CSR - Brand synergy
  20. 20. 20 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 20 20 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. 20 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential. All names and logos are trademarks or registered trademarks of their respective owners. - REALIZATION OF TRUE HYPER-PERSONALIZATION - SYMBIOSIS OF ADTECH & MARTECH - ‘REAL’ OMNICHANNEL - METAVERSE REVOLUTION - CUSTOMER IDENTIFICATION - INTEROPERABLE PAYMENTS
  21. 21. THANK YOU FORRESTER RANKS EPSILON: LEADER EMAIL SERVICE PROVIDER (TECHNOLOGY & SERVICES) LEADER LOYALTY SERVICE PROVIDERS LEADER LOYALTY TECHNOLOGY PLATFORMS LEADER CUSTOMER DATABASE & ENGAGEMENT AGENCIES LEADER IDENTITY RESOLUTION NICK SADLIER Director, Digital Solutions Epsilon, APAC & MEA nicholas.sadlier@epsilon.com +65 81687554

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