Green Industry Gains Insight Into Loyalty Marketing
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In this presentation you will Learn how to plan, launch, overhaul and evaluate your own customer loyalty marketing program that recognizes and rewards best customers while increasing the bottom line. Whether you’re just starting out with a customer loyalty initiative or you recognize that the one you already have needs reworked, this presentation will provide valuable insight into where your next steps should be. Who is Customer Insight Group, Inc.? Customer Insight Group is a leader in building brand loyalty for the world’s most influential and valuable brands. We help companies engage, keep and grow more profitable customer relationships. We leverage customer insight to deliver the right message to the right customer via the right channel at the right time. The bottom line is we focus your marketing dollars to get the biggest bang for your buck. The result? Long-term customer relationships and maximized margins. Resources: Loyalty Blog: http://www.customerinsightgroup.com/loyaltyblog/ Loyalty eBooks: http://www.customerinsightgroup.com/white-papers Loyalty Workshops: http://www.customerinsightgroup.com/custom-loyalty-workshops
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Green Industry Gains Insight Into Loyalty Marketing
- 1. Loyalty Marketing Workshop Sallie Burnett sallie@customerinsightgroup.com
- 2. Sallie Burnett Strategist. Leader. Innovator. President of Customer Insight Group, Inc., a leading strategic relationship-marketing firm Digital marketing professor at prestigious Daniels College of Business 2009 Direct Marketer of the Year © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 3. Agenda • What is loyalty marketing? • Why is customer loyalty important • What can loyalty marketing do for your business? • How is customer loyalty marketing evolving? • Where is customer loyalty today? • 7 keys to building customer loyalty. • SOSTAC • Resources
- 4. What is Loyalty Marketing? Loyalty • Customer’s faithfulness; advocacy, devotion; constancy. Loyalty Marketing • Discipline of identifying and nurturing the yield of best customers through a long- term, reciprocity, value-added relationship. © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 5. Why is Customer Loyalty Important? 45% 5-20% of sales are from existing probability of selling to a customers. new prospect. Cost 5X 60-70% more to attract a new probability of selling an customer than to keep an existing customer again. existing one satisfied. © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 6. What can Loyalty Marketing Do for Your Business? GROW FREQUENCY Grow and maintain the number of Increase number of times a existing customers who purchase customer makes a purchase. from you. PROFIT PER TRANSACTION SIZE CUSTOMER Build transaction size by meeting Increase average value per more of the customers needs. customer through efficient marketing.
- 7. Where is Customer Loyalty Today? CUSTOMER STRATEGY More demanding, more choices Me too value proposition Trust is key to customer loyalty Launch and put into “auto” drive Participation in loyalty programs Measurement metrics not tied to increasing strategy COMMUNICATION INSIGHT Irrelevant, impersonal messages Manage defection, not migration New customers/members are Data used to run program, not forgotten used to run the business Customer relationships are “siloed” No customer engagement plan in the organization © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 8. 7 Keys to Building Customer Loyalty 1. Recognize and Reward Customer Loyalty 2. Proactively Manage Customer’s Lifecycle 3. Make a Great First Impression 4. Create at Customer Engagement Strategy 5. Show Brand Advocates the Love 6. Communicate. Communicate. Communicate 7. Practice Serendipity © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 9. 1. Recognize and Reward Customer Loyalty Reward Ask for their Recognize input © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 10. 1. Recognize and Reward Customer Loyalty Clickfox 2012 Brand Loyalty Study Knowing me when I visit or call 10% Providing personalized 12% products, services Sending me exclusive and/or 13% relevant offers and specials Rewarding me for 20% purchases, feedback and referrals Providing exceptional 24/7 34% customer service 0% 5% 10% 15% 20% 25% 30% 35% 40% Customers want to be rewarded for their loyalty. When consumers were asked about the best ways companies can gain their loyalty, the top choice for respondents was providing exceptional 24/7 service, followed by reward programs. © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 11. 2. Proactively Manage Customer’s Lifecycle Advocate Value to the Organization Repeat Customer Customer Prospective Customer Unqualified Customer Value to the Customer © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 12. 3. Make a Great First Impression When I consider switching to a 1% competitor Clickfox 2012 Brand Loyalty Study Before I buy or decide to do 11% business with a company Exceed my expectations in resolving 40% an issue (service and experience) When I make my first purchase or 48% begin service (first impression) 0% 10% 20% 30% 40% 50% 60% First impression criticalto winning customer loyalty and trust. © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 13. BE SOCIAL DO SOCIAL MEDIA 4. Create a Customer Engagement Strategy Companies who have profited from social media are twice as likely to have a FORMAL STRATEGY. © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 14. Recommendations from people I know 92% 8% Consumer opinions posted online 70% 30% Branded websites 58% 42% Emails I signed up for 50% 50% Source Nielson Global Trust in Advertising Survey, Q3 2011 Ads in magazines 47% 53% Brand sponsorships 47% 53% Ads on TV 47% 53% Ads in newspapers 46% 54% Ads on radio 42% 58% Ads before movies 41% 59% Ads served in search engine results 36% 64% Trust Completely/ Don’t Trust Somewhat Much/ At All Consumers Trust Friends, family, connections have greater influence. © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 15. Engaged customers… • Recommend products, services or brand” (52% respondents) • Engaged customers are “more likely to convert more readily (31%) • Engaged customers “purchase regularly” (28%) • Engaged customers “less likely to switch supplier” (27%) • Engaged consumers are “more aware of product family” (28%) Source: E-consultancy Engagement Report 2011 © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 16. 5. Show Brand Advocates the Love IDENTIFY BRAND ADVOCATES Qualification of brand advocate can include the value to the organization as well as quantity and quality of posts, customer referrals, etc. ENGAGE BRAND ADVOCATES Create a formalized plan to recognize and reward desired behavior. MEASURE Measure success of program based on objectives including increased brand advocacy, referrals, and sales. © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 17. 5. Show Brand Advocates the Love High Brand Champion Loyalty Significant value to influence Viral Loyalists Loyal and do tell Loyalist Loyal but don’t tell Mercenaries Switch based on price —little value created Antagonist Dissatisfied and tell others Low High Customer Satisfaction © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 18. 6. Communicate. Communicate. Communicate. Good Communication Drives Customer Maritz Insights the Loyalty Report 2012 Satisfaction 80% Satisfaction 70% 60% 50% 40% 30% 20% 10% 0% strongly somewhat neutral somewhat strongly agree agree disagree disagree “Program” communications are relevant to me © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 19. 6. Communicate. Communicate. Communicate. Maritz Insights the Loyalty Report 2012 38% 47% 62% Modify purchases to Loyalty programs make Modify when and where I maximize loyalty me more likely to shop to maximize loyalty benefits. continue doing business benefits. with a company. Best Practice: Use contextual, relevant communications in the moment, when it matters and you will strengthen customer loyalty and reinforce customer satisfaction. © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 20. 7. Practice Serendipity © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 21. 7 Keys to Building Customer Loyalty 1. Recognize and Reward Customer Loyalty 2. Proactively Manage Customer’s Lifecycle 3. Make a Great First Impression 4. Create at Customer Engagement Strategy 5. Show Brand Advocates the Love 6. Communicate. Communicate. Communicate 7. Practice Serendipity © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 22. SOSTAC • Situation Overview • Objectives • Strategy • Tactics • Actions • Controls © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 23. Developing Program Strategy High Expand marketing channel Collect data to be leveraged with direct capabilities as a core business asset (“broad and deep”) (“broad and shallow”) Collect customer data to make Provide direct, targeted better decisions across the messages and offers across business customer base Target all segments, significant Target all segments, with ability to target & tailor Breadth of customer coverage limited ability to target and between and within segments tailor between segments Business Objectives Build strong relationships with growth No explicit strategy segments (“narrow and deep”) Continue to pursue defined initiatives Develop strong relationships with most valuable segment(s) Target growth segments only, significant ability to target and tailor between and within segments Low Low Depth of customer information High © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 24. Strategy Options and Potential Impact Expand marketing channel with direct Collect data to be leveraged Build strong relationships capabilities as core business asset with growth segments “broad and shallow” “broad and deep” “narrow and deep” Key areas of benefit Growth Maintain segments Growth Maintain segments Growth Maintain segments segments segments segments Customer Segments Limited Robust Deeper data for all data for all data for select customers customers segments Merch. Merch. Planning Planning Distrib. Distrib. Buying Buying Functions Marketing Store Ops. Marketing Marketing Only Store Ops. • Improved efficiency of markdown • Robust customer insights to drive core • Limited customer insights to drive core Potential Types of impact spend through direct targeting and business decisions function business decisions understanding of promo response • Strategic decision support (e.g., segment • Increased customer loyalty (e.g., greater assortment preference) margin, improved cross sell, higher • Strategic choice evaluation (e.g., impact of frequency of purchase) menu changes on core customer segments • Enhanced customer perceptions behavior) (e.g., affordable indulgences positioning) • Increased customer loyalty • Targeted levers (e.g., conversion, frequency, UPT, and • Enhanced customer perceptions markdown) • Targeted levers © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 25. Successful Strategies © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 26. Key Economic Considerations Program Type Potential Execution Elements Key Economic Considerations • Customers present card to receive in-store discounts • Highest participation Instant store discount automatically at POS • Low customer upside “broad and shallow” • Markdown dollars distributed through card • Minimal incremental impact on UPTs, store trips • “Swipe Sweepstakes” element to encourage consistent use of and conversion card • Mass consumer data insights to build tailored merchandising, pricing and promotional mix at store and customer level detail Points based rewards • Customers present card to accumulate points over time to be • High participation redeemed for tiered rewards • High free rider hurdle “broad and deep” • “Swipe Sweepstakes” element to encourage consistent use of card • Aspirational purchases to achieve rewards will provide gains in UPTs, store trips and • Mass consumer data insights to build tailored conversion merchandising, pricing and promotional mix at store and • High exit costs customer level detail Segment specific propositions • Select customer segments invited to participate in program that • Select participation “narrow and deep” appeals to them • Greatest customer upside • Brand distinctions leveraged against group for distinctive • Enhanced loyalty to drive per cap and margin positioning and brand strength • Strongest gains in conversion and UPTs • Minimal exit costs • Purchase response to tailored messages drives follow-up communications and determination of need for additional customer data detail © 2013 Customer Insight Group, Inc. All rights reserved. * www.customerinsightgroup.com • +1 303.422.9758
- 27. Sallie Burnett sallie@customerinsightgroup.com Twitter.com/sallieburnett LinkedIn.com/in/sallieburnett Thank You!
- 28. Resources LinkedIn Group http://linkd.in/LinkedInDiscussion SallieBurnett on Twitter http://twitter.com/sallieburnett Social Media Library http://www.customerinsightgroup.com/loyaltyblog Infographics http://www.customerinsightgroup.com/loyalty-infograph Social Media Grader http://www.customerinsightgroup.com/marketinglibrary/social-media-grader White Papers & eBooks http://www.customerinsightgroup.com/white-papers
Notas do Editor
- A strategic loyalty initiative is one of the star players in your marketing arsenal to build momentum and spur continued growth. Learn about latest trends in customer loyalty and what the customer is expecting from their timeshare experience. You’ll also learn seven best practices that you can compare with your customer loyalty approach to uncover weak points and opportunities to improve the odds of your success
- Discipline of identifying and nurturing the yield of best customers through a long-term, reciprocity, value-added relationship.“*This definition speaks to your CFO as well as your customer experience manager. Now that we have some common definitions, it’s time to concentrate on the hard stuff: nurturing customer loyalty. Five key elements of successful loyalty marketing: Insight — Create a competitive advantage Precision — Treat different customers differently Relevancy— Make it resonate Reciprocity — Deliver value in every interaction Yield — Gain an amount as a return on an investmentNurture:To help grow or develop; cultivate: Promote and sustain the growth and development of:Interactive: capable of acting on or influencing each other. Or Acting or capable of acting on each other.A term describing a program whose input and output are interleaved, like a conversation, allowing the user's input to depend on earlier output from the same run. yield v1. vt to produce something naturally or as a result of cultivation2. vt to produce something as the result of work, activity, or calculation3. vt to gain an amount as a return on an investmentReciprocity - a state or relationship in which there is mutual action, influence, giving and taking, correspondence, etc., between two parties. [1]
- A company’s retention rate is the gateway to the future and the foremost predictor of strategic success. 45 percent1 of timeshare sales are from those that already own a timeshare. 1 State of the Vacation Timeshare Industry: United States Study 2011 Edition conducted by Ernst & YoungAccording to the Customer Service Institute, 65% of business comes from existing customers.It costs five times as much to attract a new customer than to keep an existing one satisfied. Marketing Metrics study found the average company 60% - 70% probability of selling again to existing customers and a 20% - 40% percent probability of successfully selling to lapse customers. 5% - 20% probability of selling to a new prospect.
- Different resorts offer different rewards for referring someone to buy there. Some rewards could include:Free or discounted memberships at your exchange company.Free or discounted maintenance fees for up to a year.Discount on your own timeshare payments.Money or gift cards for different locations.
- The Social Media and Online PR Report, published by Econsultancy in association with bigmouthmedia, is based on a survey of more than 1,100 companies and agencies and was fielded in September 2009.
- Everyone likes to be recognized for their goodwill efforts. Brand advocates are no exception. Whether you send a tweet that says “Thanks for sharing our big news!” or give more formal recognition in an e-newsletter or blog post (such as a Member or Customer of the Month), telling your advocates that you recognize and appreciate their efforts goes a long way in motivating them to continue to speak highly of your brand.Bodybuilding.com does a nice job of recognizing their members with a Member of the Month feature that includes a member bio, photo and interview questions. Give them something to display – If you don’t already provide them with a plaque/certificate or similar item, make sure you give it to them. Simple things like online badges or a certificate like the one I got work wonders._____Reward Them: Nothing incentivizes brand advocates like a good, old-fashioned reward. This is a great tactic not only for thanking existing brand advocates, but also for identifying and engaging new ones. Be strategic about the reward by linking it to a particular action you would like them to take.Ask for their Input: 3. Ask Them For Their Input. Brand advocates often know your products and services better than anyone else, because they love them and use them often. Why not ask them what they think? Whether you are instituting a new program, rolling out a new product line or want ideas for a catchy new slogan, brand advocates will love that you have turned to them for advice. Asking brand advocates for feedback is also a great way to beta test marketing initiatives and crowdsource new ideas.
- A comprehensive report on the state of the Canadian loyalty landscape The consumer loyalty landscape is maturing, as consumers are not only joining many programs each, but are purposely modifying their purchase decisions in order to optimize their loyalty program membership experience. Consumers modify where they shop, what they buy and even how much they are willing to spend in order to maximize the rewards they earn within loyalty programs.But how do consumers choose the programs they belong to and the programs in which they engage most? Not only are there hundreds of programs to choose from, but even for those who have chosen their preferred retailer or bank, there are STILL choices; most banks have several programs, retailers have credit card and non-credit card programs, and some retailers even have multiple non-credit card programs. In a sea of alternatives, how do consumers choose, assess meaningful value and stay engaged over time?This whitepaper looks at these and other important questions for loyalty marketers.About this studyMarketers who continue to spend or promote spending on loyalty marketing solutions need regular opportunities to stop and reflect on the success and the future of not only their own loyalty programs, but the loyalty landscape overall.Maritz’ 2nd annual report titled Maritz Insights: the loyalty report offers one such opportunity to reflect on the Canadian loyalty landscape, driven by the voice of consumers. Our report reveals the results of a survey of more than 6,500 consumers, exploring attitudes and behaviours on loyalty marketing programs impacting regular shopping and purchase decisions.About the researchResearch results were taken from a survey commissioned by Maritz Canada and conducted by Maritz Research Canada. The survey was fielded from December 2011 to January 2012 and spoke to a total of 6,665 Canadians, though certain lines of questioning were asked to subsets of this overall base. The sample was augmented to ensure sufficient response from certain subgroups, such as affluent consumers, though total results were weighted to national proportions on all major demographics such as income, age, gender and region.AuthorsThis report was written by:Rob Daniel, VP, Loyalty and ResearchKyle Davies, Account Manager, ResearchFebruary 7, 2012
- A comprehensive report on the state of the Canadian loyalty landscape The consumer loyalty landscape is maturing, as consumers are not only joining many programs each, but are purposely modifying their purchase decisions in order to optimize their loyalty program membership experience. Consumers modify where they shop, what they buy and even how much they are willing to spend in order to maximize the rewards they earn within loyalty programs.But how do consumers choose the programs they belong to and the programs in which they engage most? Not only are there hundreds of programs to choose from, but even for those who have chosen their preferred retailer or bank, there are STILL choices; most banks have several programs, retailers have credit card and non-credit card programs, and some retailers even have multiple non-credit card programs. In a sea of alternatives, how do consumers choose, assess meaningful value and stay engaged over time?This whitepaper looks at these and other important questions for loyalty marketers.About this studyMarketers who continue to spend or promote spending on loyalty marketing solutions need regular opportunities to stop and reflect on the success and the future of not only their own loyalty programs, but the loyalty landscape overall.Maritz’ 2nd annual report titled Maritz Insights: the loyalty report offers one such opportunity to reflect on the Canadian loyalty landscape, driven by the voice of consumers. Our report reveals the results of a survey of more than 6,500 consumers, exploring attitudes and behaviours on loyalty marketing programs impacting regular shopping and purchase decisions.About the researchResearch results were taken from a survey commissioned by Maritz Canada and conducted by Maritz Research Canada. The survey was fielded from December 2011 to January 2012 and spoke to a total of 6,665 Canadians, though certain lines of questioning were asked to subsets of this overall base. The sample was augmented to ensure sufficient response from certain subgroups, such as affluent consumers, though total results were weighted to national proportions on all major demographics such as income, age, gender and region.AuthorsThis report was written by:Rob Daniel, VP, Loyalty and ResearchKyle Davies, Account Manager, ResearchFebruary 7, 2012