What's Next: The New Shades of Loyalty

What's Next: The New Shades of Loyalty
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Welcome Thomas Crampton Global Consulting Principal, Marketing Transformation Ogilvy Consulting Andréanne Leclerc Regional Managing Partner & Head of Social APAC Ogilvy Raul Cantor-Lopez Head of Consulting Ogilvy Hong Kong
Tell us where you are dialing in from! What’s the weather like in your city?
Do you want this deck? It will be available for download shortly after the webinar on: slideshare.net/socialogilvy And the recording up on facebook.com/OgilvyConsulting
THE NEW SHADES OF LOYALTY Andreanne Leclerc APAC Managing Partner, Head of Social Raul Cantor-Lopez Head of Consulting Hong Kong November 2018 SOCIAL CRM
MISSING PIECES Over and above structure and finance Channels vs Behaviors WHAT CONSUMERS WANT Individual and Network Value THE NEW SHADES OF LOYALTY IN A SOCIAL IN A WORLD Why brands need to think social value? Business is changing: New economy Enablers & Drivers PROOF OF SUCCESS Our experience HOW TO DELIVER? Nature of the program Go to market
MISSING PIECE
Like        of the top CMOs you probably haven’t been able to show quantitative impact of social on your business. Source: 2018 SMOsurvey.org 77%
Source: IBM ‘Study’/Ogilvy Loyalty Index/BrandZ survey Your social efforts are most likely focusing on brand awareness and customer acquisition…    …leaving too many and too often existing customers on the table.
CHANNEL APPROACH AND YOUR APPROACH IS PERHAPS TOO CHANNEL CENTRIC VS ….. Neither approach independently is entirely winning transactional & operating data that leverage social as a channel BEHAVIOUR APPROACH community of engaged consumers focused on content and experience
WHAT SOCIAL CRM IS WHAT SOCIAL CRM ISN’T…... YET DISCLAIMER! A way of balancing the channel vs. behavioural tension to social and CRM A way to make measure relationships beyond just the transactional A turnkey product that will turn lead into gold tomorrow. SO WE STILL NEED TO THINK (it takes experts, process, time and tools)
Social behaviors are opening new dimensions to traditional loyalty
Collaboration Advocacy Lifetime Transactions Community THE TYPICAL CRM VALUE Lifetime Value = all the purchase value over the lifetime of the person Advocacy Value = when you tell your friends how good the brand is Transaction Value = single purchase value
Collaboration Advocacy Lifetime Transactions IN A SOCIAL WORLD   COLLABORATION IS AN ADDITIONAL LEVEL OF VALUE Collaboration Value = support system and community, new business models in some cases
› SOCIAL BOND STRUCTURAL AND FINANCIAL BOND Collaboration Advocacy Lifetime Transactions Experience Bond Rewards Status Community EXPANDING BEYOND TRADITIONAL FINANCIAL AND STRUCTURAL ASPECTS
Rewards = the incentives for customers to engage and recommend Community = the benefits received or provided to the network Collaboration Advocacy Lifetime Transactions Experience Bond 1 OgilvyOne Customer Engagement Methodology 2 Forrester SOCIAL BONDING IS A POWERFUL CONTRIBUTOR TO LOYALTY AND CAN BE LEVERAGED OR ACTIVATED (PUSH OR PULL) Community Status Rewards SupportService C ontribution Influence Social Bond = relation strength in the social space Status = customer recognition for engagement and grow their network
THENEWSHADES OFLOYALTY  INASOCIALWORLD
SOCIAL IS NOT FREE PLAY ANY MORE • Budget are tight - why pay for reaching the right people every single time? • No one wants to waste money on the wrong people FREE IT IS GETTING HARDER AND HARDER TO CUT THROUGH BARRIER FREE PLAYING FIELD • Algorithms in social advertising leveraged & hacked by competitors • More informed consumers auto-filter majority of approx. 4000 msgs/day as spam VS PROHIBITIVELY INFLATING COSTS • Media/KOL costs steadily increasing content conversion CPA, CPC, and CPMs • Additional investment required due to spoofed or fake engagement
IN A NEW WORLD WHERE DISRUPTION IS BIG BUSINESS Airbnb averages 425,000 guests per night (155MM annually)-nearly 22% more than Hilton Worldwide Uber operates in more than 250 cities and is valued at $60-70 billion-more than Delta, American Airlines and United PwC projects that five key sharing sectors-travel, car sharing, finance, staffing, and music and video streaming-have the potential to increase global revenues from roughly $15 billion today to around $335 billion by 2025 (£9 billion in UK alone) Alibaba e-commerce platform Taobao during last weekend’s ‘Single’s Day’ sales hit USD 30.7 Billion, almost 5x Amazon’s Cyber Monday
Collaborative economies and social media enable an entire new level of loyalty to push an pull from
Collaboration Advocacy Lifetime Transactions Experience Bond EACH LEVEL ARE EITHER RELEVANT TO INDIVIDUAL OR THE NETWORK Community Status Rewards NETWORK }Enablers INDIVIDUAL }Drivers INDIVIDUAL }Not all customers are created equal NETWORK }Not all networks have the same power Better experiences drive significantly higher loyalty and lower switching1 1 OgilvyOne Customer Engagement Methodology
› Collaboration Advocacy Lifetime Transactions Experience Bond PURE SOCIAL INDIVIDUAL ENABLERS AND NETWORK DRIVERS   (NOT FINANCIAL AND STRUCTURAL) Community Status Rewards Based on Robert Cialdini’s “Influence: Science & Practice” Consistency Social Proof Liking Scarcity Authority Reciprocity If other women who are like her use a product, she will try it If other people ‘she likes’ ask her to try a product, she will People want to remain consistent with a public commitment Exclusive opportunities (product offers, events) drive action If brands offer some value to Influencers, they reciprocate Even ‘strangers with authority’ matter to us
Maximizing individual and network social bonding and collaboration to enable and drive brand loyalty. SOCIAL CRM: A DEFINITION
WHAT CONSUMERS WANT
$33.18 $25.63 “Brand switcher” Low social media influence Unwilling to collaborate Repeat purchaser “Mummy blogger”   with 1,500 followers Willing to co-create with Brands and other mums Angela Jennifer INDIVIDUAL VALUE NETWORK VALUE $68.83 $2,036.67 VS
Not Socially Engaged Socially Engaged Recommend Brands Don’t Recommend Brands 42% more bonded to brands1 High value loyal customers are worth 8-20 times more than average2 Significant uplift opportunity with network impact INDIVIDUAL VALUE NETWORK VALUE VS
Our experience and cases PROOF OFSUCCESS
3x PERFORMANCE INCREASE YoY, driven by adoption of digital channels, data context and relevant content design 300% EC TRAFFIC GROWTH Traffic contribution by owned WeChat YoY 22% NEW CUSTOMER REPEAT PURCHASE 110,000 new members recruited, 13% FOLLOWER RETENTION RATE INCREASE After first 12 month whilst follower base increased by 64%
SOCIAL FOOTPRINT DIAGNOSIS & AMBITION PLANNING –   ACTIVE SOCIAL FOLLOWERS THAT MATTER visit once in one year visit 2-5 times in one year visit 5+ times in one year Data sources: Tencent WeChat account management system. Google Analytics, HM.com sessions from WeChat, 2016 OneX, 908,944 followers who visited HM.COM from H&M WeChat account menu in 2016, 2016 LOOK-A-LIKE MODELING –  SEGMENTATION MODELING BY SOCIAL BEHAVIORS CRM Software SOCIAL CRM PROGRAM –   CRM ON SOCIAL AS CENTER TO PROVIDE SEAMLESS MEMBER EXPERIENCE ATL PR EVENT/ COOP IN STORE KOL WECHAT ADS RegisterScan QR Code OOH EC STORE Automatic Push Message Targeted Content Offline Store Tmall Purchase & Re-Purchase Database
CONTENT DATA CARE COMMERCELOYALTY END TO END EXPERIENCEBASIC CONTENT BROADCASTING MASS TO TARGETED COMMUNICATIONS
HOWTO MAKEITHAPPEN
FROM APPROACH TO ACTION OBJECTIVES:FINANCIAL LOYALTYORSOCIALBOND? STEP1. ASSESS:WHATDOYOUHAVE ANDWHATCANYOUKNOW? STEP2. DEFINETHECOMPONENTS STEP3. ACCELERATE STEP4.
› Collaboration Advocacy Lifetime Transactions Experience Bond Community Status Rewards OBJECTIVES:FINANCIAL LOYALTYORSOCIALBOND? STEP1. ASSESS:WHATDOYOUHAVE ANDWHATCANYOUKNOW? STEP2. Profile Communications Engagement Network Profile Engagement LocationDevices Behavioural Purchases Network Size Influence Content Comments Likes and Shares Extended Profiles Brands and Likes Profile Photo Cross Device Use Technology Geography Beacons Content Products Transactions Samples Demographics Geography Contactability Transactions Samples Response Rates Marketing History Channel Effectiveness DIGITALSOCIAL DIRECT
What do you want to achieve  Who are you targeting  When and how REDUCE CHURN ACQUISITION BUILD CUSTOM AUDIENCE AND LOOKALIKE ADVOCACY VALUE INFLUENCE VALUE CONTENT TO SELL CONTENT BASED ON PREVIOUS ACTIONS DRIVE MORE SALES ON EXISTING CUSTOMER STIMULATE REFERALS Collaboration Advocacy Lifetime Transactions Experience Bond Rewards Status Community
› Network Diagnosis process based on business model and objectives 12 WHICH ASPECT IS MORE VALUABLE FOR CUSTOMER AND THE BRAND? › Increased Loyalty Increased Bond Collaboration Transactions Bond Status Community Advocacy Lifetime Rewards Individual Focus 12
› Individual Network Focus 13 Diagnosis process based on business model and objectives WHICH ASPECT IS MORE VALUABLE FOR CUSTOMER AND THE BRAND? Increased Loyalty Increased Bond Collaboration Transactions Bond Status Community Advocacy Lifetime Rewards Network Focus
INITIAL MANAGING QUANTIFYING OPTIMISING EVOLVED CHANNEL + BEHAVIOUR CHANNEL APPROACH COMPLEXITY SCALE AND MATURITY Social only CRM pilot Independent Social CRM Siloed SCRM & Back-end CRM Integrated SCRM & Back-end CRM Omnichannel Integrated CRM DEFINETHECOMPONENTS STEP3. ACCELERATE STEP4. SALES ENABLEMENT Direct leverage of social media channels, platform functionalities, and communities to generate & execute sales Infrastructure, processes & actions, and content & media that empower sellers to optimise sales effectiveness in other channels SOCIAL COMMERCE
Other Data Sources OMNITURE BILLING/ TRANSACTIONS SHO EVENTS/ LOGS ANALYTICS/REPORTING -DATA MANAGEMENT -CAMPAIGN MANAGEMENT -ESP -LANDING PAGES -JOURNEY BUILDER -CUSTOM AUDIENCE -LIVE OFFERS -MOBILE PUSH ACTIVITY TRACKING -SOCIAL INTERACTION -API MARKETING AUTOMATION -CRM -CUSTOM SERVICE -TICKETING -360 DEGREE VIEW -FORCE.COM -API -WEB FRONT -CONTENT REPOSITORY -CONTENT UPDATE -SERVICE LAYER CONTENT MANAGEMENT & OPERATIONS SOCIAL MEDIA MOBILE APPS CUSTOMER PORTAL AD TECH TAGGING AD SERVING DMP TESTING PROGRAMATIC RETARGETING DATA WAREHOUSE A TYPICAL DIGITAL ARCHITECTURE A LITTLECOMPLEX?
IF WE STRIP AWAY THE LAYERS Data processing Validation Standardisation Cleansing De-duplication Normalisation Data Sources Data Outputs Dataintegration Orchestration Retail POS eCommerce Call Centre Reporting Loyalty Global CRM DATA WAREHOUSE Digital services Social Mobile Email Web / app 3rd party Digital channels IT’SJUSTLOOPSOFINPUTS,OUTPUTS,SERVICES&CHANNELS
DEMAND-SIDE PLATFORM AD BUYING SOLUTION MAP CMS OPTIMIZATION CRM LOYALTY SOCIAL WEB / MOBILE INTEGRATION PASS ANALYTICS DMP eCOMMERCE PRODUCT DELIVERY ADVERTISING & PROMOTION CONTENT & EXPERIENCE SOCIAL & RELATIONSHIPS COMMERCE & SALES CUSTOM BUILD DATA HOW IT WILL ALL CONNECT?
Do you have a tech stack alignment? What are your needs and scenarios now, in 2-3 yrs and 5 yrs? Which tools are you currently using? Can the tools talk to each other (API)? DUE DILIGENCE
42 AGAIN IT IS A JOURNEY 1 2 3 4 5 Integrated omnichannel marketing and distribution platforms Integrated marketing and distribution platforms Partial, disparate tools across digital Social specific Not connected to other tools Integrated marketing platforms Tech Econometrics Mix Modeling Simulation Marketing Automation Cross Channel Optimization Attribution Analysis Manage social and and some level of digital channels data. Optimize digital presence and campaigns Social data informing business decision. Consistent publishing and sustained engagement. Single channel push Improve customer sand stakeholders management and targeting. Sales enablement Remember Step 3?
GO TO MARKET DEVELOPING YOUR CRM PROGRAM 
DEVELOPING YOUR CRM PROGRAM - GO TO MARKET  • PERSONAS   Understanding the human needs and behaviours  • CUSTOMER JOURNEY   Understanding the customer journey and how each moment of truth/touchpoint impacts the engagement, relationship & conversion  • ENGAGEMENT IDEA   Landing a value-exchange proposition that connects the consumer to a branded experience  • ENGAGEMENT BLUEPRINT   Using the right channels, to create bonds and effective business outcomes  • EXPERIENCE MAP   Designing and delivering the experience FROM APPROACH TO ACTION
  IS MORE VITAL TO SOCIAL CRM SUCCESS THAN A SKILL SET DATA DRIVEN TEST & LEARN THINK JOURNEY Tech Campaign manager Project Management CRM experts Social Experts Planner Strategist Channels and platform experts   SOCIAL CRM = MUCH MORE BEYOND FINANCIAL REWARDS DRIVING INDIVIDUAL VALUE & ENABLING NETWORK EFFECT Analyst Strategist Planner ROLESAMINDSET
LEVERAGING ALL THE POWER OF SOCIAL Over and above structure and finance Channels vs Behaviors WILL CONSUMERS ENGAGE? Individual and Network Value DEFININING THE PUSH AND PULL Enablers & Drivers TEST AND LEARN Optimizing performance ALIGN THE RIGH RESSOURCES Nature of the program Go to market
4 1. Talk to your digital, CRM, Social team, Customer Engagement team – to see where to embark on the journey 2.Review current program performance with your partners 3.Identify pilot opportunities and/or connect or push to the next level some existing programs NEXTSTEPS
Questions? Thomas Crampton Global Consulting Principal, Marketing Transformation Ogilvy Consulting Andréanne Leclerc Regional Managing Partner & Head of Social APAC Ogilvy Raul Cantor-Lopez Head of Consulting Ogilvy Hong Kong
Thank you.

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