The key to boosting loyalty
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1 The key to boosting loyalty
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3 We are not thinking machines that feel; rather, we are feeling machines We are not thinking that think. machines that feel; rather, we are feeling machines that think. Antonio Damasio, Professor of Neuroscience Antonio Damasio
4 4 Your customers Would recommend you to others. This is the most powerful group which can recruit new customers. They are essential for GROWTH.
5 Behavioral loyalty does not guarantee true commitment 70.0% 60.0% Air Miles Metro & moi Aerogold Visa/CIBC Aerogold Infinite PC Points President Choice MasterCard RBC Visa Avion 50.0% 40.0% 30.0% 20.0% 10.0% %, who uses weekly R² = 0.07 Shoppers Optimum/Pharmaprix Optimum Target REDcard Debit/MasterCard Costco Membership %, Likely to drop out American Express TD Canada Trust Travel American Express Membership Rewards Air Miles MasterCard CIBC Aero Classic Visa ClubSobey s Costco TrueEarnings AmericanExpress Card Aeroplan Canadian Tire Money Aadvantage BMO Air Miles MasterCard Shoppers Optimum RBC Rewards MasterCard Staples Business Depot s Sears Club Points easyrewards HBC Savings MasterCard Hbc Rewards / Club Z Walmart MasterCard 0.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% Case study 5
6 Our Philosophy on Customer Relations Management If you focus on share of heart, you will get share of wallet The reverse may not always be true 6
7 Its the emotional side of the decision making process that creates an immediate connection and interest 30% logic 70% emotion 7
8 Emotional processes can guide or bias behavior, particularly decision making Somatic marker mechanism Decision making Evoked emotions are unconsciously associated with past outcomes and bias decision-making 8
9 When individuals make decisions, they must assess the incentive value of the choices available to them, using cognitive and emotional processes The 4 roles played by emotions in decision making: When the individuals face complex and conflicting choices, they may be unable to decide using only cognitive processes. Providing Information Improving speed Assessing relevance Enhancing commitment 9
10 Emotions are difficult to articulate Visual self-report helps respondents to understand and share with us what they feel using fast, unprocessed, un-rationalised response. Fresha is used to identify key universal emotions Reaction triggers from the past Emotional drivers and barriers of usage based on regression analysis
11 70 Emotional engagement is essential for true loyalty Average R² = Average % felt Negative Emotion Percent Likely to Discontinue Using 0 0% 5% 10% 15% 20% 25% 30% 35% 40% Case study 11
12 Emotional Engagement Index Is an easy way to track Customer Loyalty holistically Score EEI score = 70 and below Brand needs to increase focus on customer satisfaction. EEI Score = 100 Normal, you are on par with competitive environment. EEI Score = 130 and above High customer loyalty. Maintain current activities.
13 Promoters Passives Detractors NPS Score EEI Under 70 EEI EEI
14 You need more than just a score, you need actionable insight Love Proud Happy Empowered Encouraged Warm / fuzzy Captivated/Engaged Attached Confused Sad Difference vs. Average Lonely Skeptical Bored Learn what drives each emotion Case study Indifferent Angry Rejected Disappointed 14
15 The key to boosting loyalty is to increase the feeling that drives behavior rather than just the behavior itself. 15
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