October 4-6, BthruB Leadership Summit. October 4-6, 2015

Transcription

1 BthruB Leadership Summit

2 Opening Remarks Mark Herbert President The ISI Group of Companies

3 Yesterday s Key Concepts Industry Trends Leveraging Research What is the ROI Methodology How to begin your ROI Action Plan

4 Today s Agenda Client Presentations Roundtable Discussions Case Study on Activation Campaigns Technology Update 2015 Road Map & Actual Development 2016 Road Map

5 Client Presentation

6 2014 Engagement Engagement = Log-in + Rewards Activity Status # % Description Active 565 4% completely credentialed + more than 100k points in account Inactive % credit hold in Trend Invited % set up; but not credentialed to have website access Suspended % less than 100k in account Total 13,680 Current Points Unredeemed Held by 2,104 Participants Average Unredeemed 305, YTD Points Redeemed Redemption Rate 642,358, ,773, % 380 Participants 918 Orders Average Point Redemption 245,940

7 Mission: Impossible? Primary audience: multi-generational small business owners, primarily male, +50, seasoned and pragmatic in business, survived housing crash Client had previously provided them a personal shopper Earned points without ever signing up for program, sales rep and program manager told them what the cash value was for the points

8 Old program Select supplier participation (79) Points awarded on select suppliers based on formula Minimum purchase requirements GBPD - $8,000 Guardian Fiberglass -- $3,000 Minimum balance of 100,000 points to redeem Consecutive 3 month minimum purchase or points are null/ void Participants have a customer # and a different Plus account # All customers auto enrolled into program & automatically accrue points Month end all points are removed, site closed, and then new point balances are reloaded Re-launch/ New Program Additional supplier participation Determine baseline/ tier supplier point values (2 points = $1 in sales) No minimum purchase No minimum balance required to redeem Points expire after 18 months (Customer # + Ship To #) = Plus Point # All customers must activate new account to earn points Points have a running statement showing what was accrued and redeemed

9 Direct Mail example BthruB Leadership Summit

10 Recommended Supplier Participation Levels Sponsor Benefits: Platinum Gold Silver Listing on the participating Sponsor Page X X X Survey, Training/Quizzes, s 4/yr 2/yr 1/yr Rotating Banner Advertising on program home page (one month) 4/yr 2/yr Product Highlight Page X Co-branding with logo on program log-in page X Marketing/ Advertising Fee $7,500 $5,000 $3,500 Increase in package cost as a % of sales (not to exceed 0.50%) 0.25% 0.25% 0.25% Client Match 0.50% 0.50% 0.50% * Benchmark sales lift for participating suppliers is 40% Why a Loyalty Program? - An effective incentive program increases sales of products by up to 40% - Partners reported incentives account for as much as 14 18% total revenue - Drive sales, gather customer insight, build loyalty and market directly to dealers How will we make it effective? - Vendor content support - Engaging Client sales team, customers, and end users - Creating a constant feedback loop amongst audiences

11 NEW PLUS Point Program Stats Old program Re-launch/ New Program Active Participants 565 Auto enrolled 13, Aug YTD Redemptions 657 by 302 participants Active Participants 1, Aug YTD Redemptions 477 by 238 participants As of March 31 st the active participants almost doubled the number from the previous program that was 6+ years old The re-launch and clean up resulted in a $1.24 million reduction in Client s liability Key Takeaway: Customer MUST enroll in program to earn points Deadline to roll-over points from the old program was March 31 st No exceptions considered due to financial books being closed on 2014

12 Q&A BthruB Leadership Summit

13 Roundtable Discussion Does your program need a makeover? How can you Turbocharge your program?

14 How Good is your Data? Katie Harton Marketing Project Manager

15 How Good is your Data? Katie Harton Marketing Project Manager

16 Situation High # of Invitees Invitees with point liability Need to get them Engaged Unknown data quality

17 The Activation Campaign! BthruB Leadership Summit

18 Solution Create an Activation Campaign with 3 Steps Personalized Postcard Mailing Personalized Phone Calls Personalized s

19 Overall 48.25% Missing or Bad Data Mailing 6,133 3,512 3,174 57% 90% Potential Actionable Completed

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21 Overall 61.1% Missing or Bad Data Calls % 56% 276 Potential Actionable Completed of the 216 left, over HALF were wrong numbers

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23 Overall 40.6% Missing or Bad Data s 5,851 4,027 3,472 69% 86% 493 opened (14%) 79 Clicks (2.3%) 0 Potential Actionable Completed

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25 Activation Results Timeline July 27 th September 19 th Period 1 Period 2 Period 3

26 Follow Up Track the 356 people to see engagement results over 12 months Total Points Awarded and Frequency Total Points Redeemed and Frequency Calculate ROI of Campaign

27 Stay Tuned Activation control group results Redemption campaign and results Connect with us to view results: Linkedin The ISI Group's Leadership Forum ( Facebook Incentive Solutions Inc. (facebook.com/incentivesolutionsinc) (twitter.com/incentive_sols)

28 Q&A BthruB Leadership Summit

29 Roundtable Discussion How do you collect your invitation data? How do you scrub the data? What other data do you collect?

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31 Coffee Break Hours Minutes Seconds

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33 Client Presentation

34 Program Objectives Provide a long term trade loyalty program for the company Target audience is small trade contractor Move customers to FOL platform as lower cost to serve Provide strong incentives for trade customers to engage in and transact online

35 What was their program? Customer loyalty program for our professional trade contractors Exists within the Client s Online channel CONSISTS OF: Business Benefits launched August 2011 Score Points Online launched August 2012 Bonus Point Promotions launched August 2013

36 Score Points Online Customer points program for Client s Online customers When buying online, receive points for every purchase Receive 1,500 bonus points for signing up Receive 1 point for every $1 spent on products ordered Receive bonus points for specially featured products Points never expire Redeem points for a wide variety of valuable merchandise, event tickets, and trips

37 Bonus Point Promotions Specific products are eligible for bonus points when purchased on Client s Online by registered Program members Bonus points will lead to customers being able to redeem their points for great merchandise faster, incentivizing them to buy products that are part of these special promotions

38 Marketing Strategy Fully integrated campaign that consists of: Celebrity Spokesperson Print Advertising Counter POP Digital Signage Online Advertising National Radio Marketing

39 Customer Survey Business Benefits Bonus Point Promotions Monthly E-Statements Donating Points Recruitment Campaign Anniversary Campaign Welcome Campaign Marketing

40 survey conducted in June 2014 over 10-day period Ten questions were asked such as customer satisfaction with the program the influence of the program on spending habits the way in which the Ferguson customer loyalty program compares to those of our competitors Members earned 5,000 Quick Points for completing survey Customer Survey

41 Results FY13 FY14 FY15 Total # Program Members 7,844 11,653 14,788 FY13 FY14 FY15 Total # Ordering Customers 61% 72% 73% Total # Processed Orders 72% 86% 93% Total $ Invoiced Sales 65% 87% 90% Total # Self Service Events 51% 67% 71%

42 Q&A BthruB Leadership Summit

43 Roundtable Discussion How can you enhance your communications campaigns?

44 Technology Update Mark Herbert President, The ISI Group

45 Technology Update Mark Herbert President, The ISI Group

46 2015 Technology Road Map Gamification Enrollments Token system Badges More Mobile Features Analytics Quick Poll Widget Leaderboard Automation Responsive Templates Website Analytics (integration with Google Analytics) Performance Tracking Updates Promotion Bonuses Verification module Added redemption items Mobile Only

47 Additional New Features Gamification Daily Trivia Learn & Earn Mobilization Engagement History Report Ability to send text messages & set preferred communication method Point Award Classes Birthday and Milestone Automation Auto Complete Lookups (Claims and Enrollment) Client requested custom work

48 Draft 2016 Road Map Communications Module Analytic Reporting including deliverability and open rates Preferred communication method per message type Responsive Templates Reporting and Admin Dashboard updates Profile Completion Automated validation

49 What additional tools do you need?

50 Summit Mission Statement Determine what is optimal ROI, how to measure and react to it. Leveraging data so that it is no longer an impediment but an asset to maximize ROI. Explore how 2-way communication in a changing work force promotes long term, sustainable, predictable ROI. Share common pain points, objectives, and solutions as a group.

51 Program Wrap Up The ISI Group's Leadership Forum (LinkedIn) Program Survey

52 BthruB Leadership Summit