BOOST LOYALTY IN A DIGITAL WORLD

Transcription

1 BOOST LOYALTY IN A DIGITAL WORLD ARGYLE CMO WEBINAR WILSON RAJ GLOBAL DIRECTOR, CI MAY 28, 2015

2 LOYALTY AS BRAND PROMISE + CUSTOMER EXPERIENCE + MARKETING FROM: Campaigns Targeting Consumer segmentation Media schedules Relevant messages Transactions GRPs and CPMs Strategic planning Scale economy TO: Experiences Engaging Consumer recognition Consumer moments Contextual utility Value exchanges Levels of engagement Adaptive planning Semantic economy Adapted : Forrester Research 2014, SAS

3 IMPERATIVE #1 SHIFT BRAND MANAGEMENT TO BRAND & CUSTOMER EXPERIENCE PLATFORMS

4 DELIVER EXPERIENCE OF A LIFETIME! FIRST SEASON 100,000 guest activated 6 million digital pins 45% users shared on Facebook/Twitter 35 million social impressions

5 UNIFY PRODUCT, PRICING, INVENTORY INFORMATION

6 BUILD CONTEXTUAL INTERACTIONS & INSIGHTS Source: McCormick

7 REDUCE FRICTION

8 MERGE DIGITAL AND PHYSICAL WORLDS Image: WSJ

9 LOYALTY TRANSFORMATION SHIFT FROM LOYALTY PROGRAMS TO LOYALTY COMPANY

10 LOYALTY PROGRAMS BEEFING UP US LOYALTY MEMBERSHIP 2012 TO 2014 BUT LEAN ON ACTIVE PARTICIPATION Reference: Colloquy 2015 Loyalty Census

11 LOYALTY MEMBERS MORE VALUABLE CUSTOMERS Motivated by nontransactional rewards Pay higher price Share and advocate more

12 CURRENT LOYALTY PROGRAMS PARITY. UNDIFFERENTIATED. DISCRETE.

13 FUTURE LOYALTY PROGRAMS REWARD, RECOGNIZE, ENGAGE FOR MAXIMUM BENEFIT Rewards incent behavior Recognition realize customer value Engagement strengthen relationships IMPLICIT EXPLICIT

14 ADD EMOTIVE TO RATIONAL FOR LOYALTY TRANSACTIONAL VS. NON-TRANSACTIONAL Data is born unstructured Loss of valuable context with structure Haggling data

15 Benefit Reward Recognize Engage Example Access Gilt Insider Auctions Starwood Preferred Guest Cash Back TXU Energy Retail Content Kellogg's Family Rewards ecommerce Redemption Chase Ultimate Rewards Enhanced service Sephora Beauty Insider Experiences Virgin America, American Express, Nordstrom s Instant discounts Target REDcard Sweepstakes Coca-Cola My Coke Rewards Loyalty currency Walgreen s Balance Rewards Member events Rewards certificates Status Tiers Surprise and delight Targeted offers North Face VIPeak, TJX Canada Style+ GapCard, Banana Republic, J-Crew JetBlue Airways True Blue, United Panera Bread s MyPanera Kroger Sources: Forrester Research, WSJ, SAS

16 IMPERATIVE #3 ALIGNING CUSTOMER EXPERIENCE & ANALYTICS

17 IMPLICIT LOYALTY RETHINKING THE CUSTOMER DECISION JOURNEY DID YOU KNOW? 71% more likely to purchase based on social media referrals. HubSpot 84% of smartphone shoppers use their phones while in a physical store. ThinkGoogle 88% of consumers trust online reviews as much as personal recommendations. BrightLocal I need to buy a new blazer. She researches opinions via social channels: Facebook, Twitter, Yelp, etc. She writes a review about her experience and the product. She receives a promotional from a retailer. While in store she receives a promotional text for 10% off. touch points activities touch points Day 1 Day 2 Day 3 Day 4 Day 5 Comparison shopping begins. Research online reviews. Purchase made. Additional research.

18 DATA & ANALYTICS ANALYTICS THROUGHOUT CUSTOMER S BRAND EXPERIENCE Journey Stage Top Marketing Goal Analytics Profile customers Segmentation Discover Evaluate prospects Lead scoring Reach right prospects Acquisition models Explore Buy Engage Analyze customer response Optimize marketing mix Test marketing Predict future behavior Target accurately Personalize marketing Expand breadth of customer interactions Increase depth of customer interactions Incorporate customer feedback Manage customer attrition/ defection Maximize customer value Offer/ contact optimization Marketing mix modeling A/B, multivariate testing Propensity models Segmentation, valuation models Next best action models, social/ text VOC analysis Cross-sell/ upsell Loyalty models Value of customer analysis Churn/ attrition models Lifetime value models

19 Life is a game of inches. In life, the margin of error is so small one half of a step too late or too early and you don t quite make it. One half of a second too slow or too fast, you don t quite catch it. The inches we need are everywhere around us. They re in every break, every minute, every second, Tony D Amato (Al Pacino), Any Given Sunday Photo credit: Ed Schipul

20 Boosting loyalty is a game of Photo credit: Barbara Krawcowicz

21 LOYALTY PROGRAM TO LOYALTY COMPANY FOUNDATIONS FOR WINNING THE GAME OF INCHES Data Management Analytics & Visualization Big Data Platform Operations Excellence Expanded client data Balance of privacy vs. personalization Data Governance Customer analytical environments Self serve analytics Better visualization of data & insights Introduce data variety Extended data partnerships Real-time and contextually aware insights Orchestrated decision-making Measurement realigned to customer management drivers Real-time enablement

22 THANK