cracking the loyalty code

©2011 RedPrairie Corporation. All rights reserved.

Crack the Code for Optimizing Promotions and Loyalty

“Loyalty” Today

2

18accts/household

2

8.4active accounts2

$48B2011 rewards2

2.1Bloyalty members1

85%hear “nothing”

3

81%know “nothing”

3

36%reward worked 2

17%“very influential”

2

25%“very loyal”

2

1 – Customer Research Center2 – Colloquy 3 – ACI Worldwide Study

Why the Disconnect?

• ImpersonalSelect rewards from lists of things they don’t want

• ImperfectConsumers feel like they are jumping through hoops

• IneffectiveConsumers work hard to find the loop holes instead of the things you care about – namely being a more engaged and loyal customer

3

Traditional Loyalty Programs Leave Much to be Desired

Audience Poll: Where Do You Stand?

• How would you describe the state of your loyalty programs today?

a. Engaging and personalized across channels

b. Primarily discount-driven with little personalization

c. No loyalty program in place

4

5

Loyalty 3.0The Road to Customer Engagement

Potential Loyalty Benefits Abound…

6

INCREASEREVENUE

RETAINCUSTOMERS

MORETARGETED

MARKETING

INCREASESPEND &

FREQUENCY

BUILDBRAND

LOYALTYENHANCE

CUSTOMERRELATIONSHIPS

DIFFERENTIATE

NEWCUSTOMER

ACQUISITION

GAINCUSTOMER

INSIGHT

-- First Data

©2011 RedPrairie Corporation. All rights reserved. 7

“Loyalty is no longer about points and discounts…it is now about how processes, tech, ideas, & interactions engage individuals with the brand.”

-- Loyalty360 the Loyalty Marketer’s Association

Realizing benefits requires more than a plastic card, blanket discounts, and

aggregate analytics

Building Blocks to Meaningful Loyalty

• Focus on the Experience • Engage and delight

customers in unexpected and personalized ways

• All-Channels, All the Time• No Exceptions

• No “Bolt Ons”• Part & parcel of experience

design

8

Audience Poll: Consistent Experiences?

• How would your customers describe the state of your loyalty programs today?

a. Very consistent programs and experiences across all selling channels and touch points

b. Somewhat consistent programs and experiences across channels with just an occasional disconnect

c. Separate and distinct programs across channels with little or no connection between the channels and programs

d. No loyalty program in place

9

10

Experience Matters…In-Store Concerts, Trunk Shows, Private Parties, etc.

of shoppers who participated in an experiential marketing event told

others about their experience

80%--Jack Morton

11

All Channels, All the TimeConnecting the Dots Between Channels is Critical

of Leaders identify attractive loyalty offers as the top component of their

all-channel strategy

66%--Aberdeen Group

12

No “Bolt Ons”Connecting the Dots Between ALL Channels is Critical

believe a great customer experience across channels makes them loyal

--Loyalty360

78%

Better Experiences Motivate Desirable Shopping Behaviors

13

• More visits per customer in more channels• Greater spend per visit• More purchases• More frequent – and influential – social sharing• Access from different channels/touch points

55 Tips to Developing Programs that Work

1. All-Channel Engagement• Single data source, single customer record

2. Delight & Surprise • Superior experiences at an individual level

3. Go Beyond Revenue-Based Rewards• Reward engagement with your brand

4. Reduce the Burden on the Consumer • Make it easy to join, use and participate

5. Entice Customers to Return and Bring a Friend

14

“HT +1” Engages One on One

15

©2011 RedPrairie Corporation. All rights reserved.

Fully Baked Loyalty 3.0 at Panera

16

©2011 RedPrairie Corporation. All rights reserved.

Fully Baked Loyalty 3.0 at Panera

17

Audience Poll: Your Best Practices?

• Which of the following “best practices: do you employ in your loyalty programs today?

Check all that Apply

1. All-Channel Engagement

2. Surprise & Delight programs

3. Reward for Engagement (beyond purchases)

4. Personalized Rewards

5. In-Store Events

18

19

RedPrairie is Commerce in Motion

20

Red Prairie Customer Engagement Management

Seamless Interaction Across Channels & Touch Points

Learn MoreRedPrairie.com/All-Channel-Commerce

21

Clienteling Test Drive