Reshaping Customer Loyalty A Foresight Factory webinar, June 21 st 2017
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1 Reshaping Customer Loyalty A Foresight Factory webinar, June 21 st
2 2
3 Speakers Dominic Harrison Content Director Christophe Jouan Co-Owner & CEO 3
4 The impact of loyalty programmes on branding Source: FFonline
5 Why loyalty matters: the coming world of bypassed brands 48% of global consumers are interested in a service that automatically bought and delivered basic household supplies when they ran out Source: FFonline
6 What drives brand advocacy? Loyalty initiatives are weakening brand equity POSITIVE NO CLEAR RELATION NEGATIVE Value for money Best quality Genuine Inspires me Makes me feel good Environmentally friendly Treats workers well Exclusive and personalised promotions Rewards my loyalty +14% -10% Source: FFonline
7 ALIGN Align loyalty programmes with core brand values and consumer needs in your sector / target group. ACT Create a roadmap for differentiated programmes that capitalise on both transactional and emotional invitations to engage. EVOLVE Maintain loyalty programmes relevance by mirroring evolving consumer needs and competitive intelligence. Source: FFonline
8 Competitive trends for the entire loyalty cycle Acquisition and activation Acquisition and activation Maximising transaction frequency and value Long term retention CULTURE OF IMMEDIACY BRIEF ENCOUNTERS MAXIMISING BEHAVIOUR WISHLISTING CHALLENGE ACCEPTED THE LEISURE UPGRADE SURPRISE ME! EARLY BIRD BRANDS CONSUMER CAPITAL LIFESTAGES IN FLUX ME ME WORLD THE 5-STAR CUSTOMER BRANDING BYPASS NARRATIVE DATA MOBILE FIRST CONNECTED COMMUNITIES EVERYDAY EXCEPTIONAL CONVERSATIONAL COMMERCE Source: FFonline
9 Acquisition and activation: trends to consider CULTURE OF IMMEDIACY BRIEF ENCOUNTERS MAXIMISING BEHAVIOUR CONNECTED COMMUNITIES EARLY BIRD BRANDS CONSUMER CAPITAL LIFESTAGES IN FLUX MOBILE FIRST Source: FFonline
10 Acquisition and activation: trends to consider CULTURE OF IMMEDIACY BRIEF ENCOUNTERS MAXIMISING BEHAVIOUR CONNECTED COMMUNITIES EARLY BIRD BRANDS CONSUMER CAPITAL LIFESTAGES IN FLUX MOBILE FIRST Source: FFonline
11 EARLY BIRD BRANDS The appeal of early, privileged access to new products and services. 63% % who agree I like it when brands/companies give me early access to products (5-market average) 58% 38% 64% 63% 45% Men Men Men 45+ Women Women Women 45+ Position sign-up as joining an exclusive club that offers early access to new products, promotions, events and experiences. 11
12 EARLY BIRD BRANDS Sephora s Beauty Insider program offers privileged access to seasonal events Source: FFonline
13 EARLY BIRD BRANDS Space NK s loyalty program invites members to sales ahead of the general public Source: FFonline
14 USA France GB Germany Spain Sweden China India Indonesia Malaysia Thailand CONSUMER CAPITAL Attitudes towards data sharing are maturing. Consumers will expect up-front clarity. % who agree I would 100% like more control over 80% the personal 60% information I give 40% companies and the way 20% in which it is stored 0% Millennials Generation X Baby-Boomers The future promise of data-driven programme benefits such as exploratory show me my data features or even selfdestructing loyalty programmes? 14
15 CONSUMER CAPITAL Attitudes towards data sharing are maturing. Consumers will expect up-front clarity. Male, 26, China In most cases, I tend to make impulsive decisions, if the sales assistant keeps talking and asking me for signing up. Why I would think twice before signing up: if the loyalty programme was not free of charge or requires my private information. Female, 27, Germany With stamp cards (eg coffee shop loyalty cards where you collect stamps in order to get a free coffee) it s a rather impulsive decision, but when I have to sign up and give a lot of data away I rather consider it properly. The future promise of data-driven programme benefits such as exploratory show me my data features or even selfdestructing loyalty programmes? 15
16 CONSUMER CAPITAL Datacoup, the world s first personal data marketplace 16
17 Maximizing transaction frequency and transaction value: trends to consider WISHLISTING CHALLENGE ACCEPTED EVERYDAY EXCEPTIONAL ME ME WORLD THE 5-STAR CUSTOMER Source: FFonline
18 Maximizing transaction frequency and transaction value: trends to consider WISHLISTING CHALLENGE ACCEPTED EVERYDAY EXCEPTIONAL ME ME WORLD THE 5-STAR CUSTOMER Source: FFonline
19 WISHLISTING A new type of pre-purchase e-behavior: the creation of digital wishlists of desired products. % who save items they are interested in online to refer to at a later stage by GB USA France Spain Sweden China Japan Adding items to an online shopping basket 38% 40% 29% 23% 24% 62% 19% Favouriting or starring items on a website 26% 26% 24% 32% 25% 57% 31% Creating a digital list / saving links of favourite items 15% 22% 13% 17% 12% 26% 13% ing links to products to yourself 16% 23% 13% 15% 17% 20% 7% Create a space for customers to wishlist and create opportunities to trigger transactions e.g. by pushing notifications to customers if a wishlisted item is nearby. 19
20 WISHLISTING Nordstrom s app has a wishlist area and uses push notifications 20
21 THE 5-STAR CUSTOMER Consumer interest in a more reciprocal rating relationship with the brands they encounter 100% 80% 60% 40% 20% 0% Permission to broaden loyalty metrics? % who agree If I use a company s services I would be happy for them to rate me as a customer Spain China GB USA France Japan Sweden Create a wider customer rating strategy that not only rewards spend but also store and site visits, engagement on social media, personal daily behaviors or activity. 21
22 THE 5-STAR CUSTOMER The Hälsorabatt app (by Swedish retailer ICA) allows registered users to track their physical activity and convert it into store benefits 22
23 THE 5-STAR CUSTOMER Beam dental insurance plan customers are rewarded for good behavior with StarCards. 23
24 Driving long-term loyalty: trends to consider THE LEISURE UPGRADE SURPRISE ME! BRANDING BYPASS CONVERSATIONAL COMMERCE NARRATIVE DATA Source: FFonline
25 Driving long-term loyalty: trends to consider THE LEISURE UPGRADE SURPRISE ME! BRANDING BYPASS CONVERSATIONAL COMMERCE NARRATIVE DATA Source: FFonline
26 Canada USA Australia S Korea Japan Poland France Italy Spain Germany Ireland GB Denmark Sweden Finland Russia Mexico Indonesia Turkey S Africa Brazil Malaysia China India Thailand THE LEISURE UPGRADE Need for multi-functional leisure: opportunities for skillbuilding, self-improvement and new experiences 100% 80% 60% 40% 20% 0% % who agree entertainment should be about learning new things as much as simply having fun Expand range of rewards to include attractive experiences and activities so that programmes become long-term leisure partners for experience-seeking consumers 26
27 THE LEISURE UPGRADE O2 Priority offers members Priority Access exclusive access to tickets (typically 48 hours before general release) for popular events as well as venue privileges. 27
28 THE LEISURE UPGRADE Members of theory11 s Elite Member Initiative earn points which are the only currency able to buy selected experiences and products from the Archive. 28
29 THE LEISURE UPGRADE Mastercard s Priceless Surprises spontaneously rewards active cardholders with surprises. 100k cardholders rewarded by early
30 Total Male Female Millennials Gen X Baby Boomers HH income < $20k $20k-30k $30k-40k $40k-75k $75k+ CONVERSATIONAL COMMERCE The promise (and customer expectation) of warmer brand-customer digital communication AI assistants: the face of loyalty programmes in future? % of US adults who have used voice-commands on a smartphone/wearable/tablet e.g. Siri, Alexa, Cortana 100% 80% % 40% 20% 0% A future of members-only messaging services and AI assistance that offers personalized advice, program updates and a long-term, emotionally-aware connection. 30
31 CONVERSATIONAL COMMERCE In January 2017, Starbucks announced the launch of voice ordering capabilities within the Starbucks mobile ios app as well as via the Amazon Echo platform. 31
32 What next? ALIGN Align loyalty programmes with core brand values and consumer needs in your sector / target group. ACT Create a roadmap for differentiated programmes that capitalise on both transactional and emotional invitations to engage. EVOLVE Maintain loyalty programmes relevance by mirroring evolving consumer needs and competitive intelligence. Source: FFonline
33 Thank you for joining us. 33
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