beyond clienteling - building loyalty and making it pay
TRANSCRIPT
BEYOND CLIENTELINGBuilding Loyalty and Making it Pay
Name Likes/Dislikes Contact Budget
Family members Important dates Payment terms
1.7x conversion
+26% profitability
GETTING LOYALTY RIGHT
HOW TO SHAPE YOUR FUTURE
WHERE DO WE GO WRONG?
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LOYALTY IS AN EMOTION
…SO WHY DO WE TREAT IT LIKE A TRANSACTION?
WE HAVE BECOME VICTIMS OF HISTORY AND HABIT
1700sCOPPER TOKENS
1800sCOUPONS
1930s - 70sTRADING STAMPS
1980sDEREGULATION
1990sDIGITIZATION
2000sMOBILE TOOLS
-1% revenue growth
DONE WRONG =RISK MARGINS
-10% lower
EBITDA
DOING THE SAME AS OTHERS LEADS TO FAILING IN THE SAME WAY
Customerengagement
ROI over time
GETTING LOYALTY RIGHT
HOW TO SHAPE YOUR FUTURE
WHERE DO WE GO WRONG?
Connected
TransparentRelevant
Contextual
HumanCentered
GETTING IT RIGHT
A NEW APPROACH: “WHOLE BRAIN” UNDERSTANDING OF LOYALTY
TRUST HABITAFFINITY
“WHOLE BRAIN” LOYALTY
TRUST HABITAFFINITY
CONSISTENCY BUILDS TRUST
ANTICIPATETEST DELIVER RETEST REINFORCE DELIGHT
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30% of customers don’t trust retailers with their information
HOW DO YOU USE WHAT YOU KNOW ABOUT ME?
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TRANSPARENT
STITCH FIX
COLLECT INFORMATION IN AN ORGANIC WAY
“WHOLE BRAIN” LOYALTY
TRUST HABITAFFINITY
CONTEXTUAL
PLACEPURPOSE
CUSTOMERS EVALUATE PURCHASE RECOMMENDATIONS HOLISTICALLY
Onsite Behavior
Past Purchases
Buying Signals
Financial Preferences
Style Preferences
Shopping Objective
Physical Attributes
Vertical Knowledge
INSPIRE ENGAGE ADVISE/ ENABLE SUPPORT REINFORCE
DISCOVER EXPLORE BUY EXPERIENCE SHARE
shop
per
asso
ciat
e
THE SALE IS ONLY PART OF THE RELATIONSHIP
EXPERIENCES BUILD AFFINITY
Focusedon tasks
Focused onexperiences
FEW PROGRAMS CROSS THIS LINE
MEANINGFUL
PLEASURABLE
CONVENIENT
USABLE
RELIABLE
FUNCTIONAL
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CONNECTEDCONNECTED
LOYALTY IS AN EMOTIONA crowd is a tribe without a leader.
A crowd is a tribe without communication. Most organisations spend their time marketing the crowd.
Smart organisations assemble the tribe.SETH GODIN
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MOMENTS
PEOPLE
PLACES
“WHOLE BRAIN” LOYALTY
HABITTRUST AFFINITY
MOST BUYING BEHAVIOR IS HABIT
TRIGGER
REWARD
ACTION
Cue the right behavior at the right time
NUDGE
Build on an existing habit
Create a habit based on existing behavior
Reduce effort between trigger and action
1
2
3
BUILD ON AN EXISTING HABIT
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CREATE A HABIT BASED ON BEHAVIOR
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REDUCE EFFORT BETWEEN TRIGGER AND ACTION
InsightEngage
Anywhere/ Everywhere
Respond at moment of impact
Big Data Mobility
Cloud
Insight Engagement
Responsiveness
GETTING LOYALTY RIGHT
HOW TO SHAPE YOUR FUTURE
WHERE DO WE GO WRONG?
CREATE THE PLATFORM FOR EXPERIMENTATION AND GROWTH
Concept Ideas and prototypes
Explore with customers
Pilot Few segments/
sites
Continue learning
Scale up Refine and
expand
Manage capacity
Rollout Loyal, free and paid
Mainstream
Evolve Becomes
commodity
Change the game
Customer Experience
OrganizationalCapability
DEVELOPING CONTINUOUS LOYALTY REQUIRES EXTERNAL AND INTERNAL FOCUS
ALIGNING THESE DIMENSIONS IS LIKE TETRIS
Organizational CapabilitiesCustomer experience
Customer experience
ALIGNING THESE DIMENSIONS IS LIKE TETRIS: STEP 1
DOUBLE DIAMOND
Understand Define Explore Create
FIND SOLVE
EXPERIENCESCHOICESAVINGS PRESTIGEADVICEAUTONOMY
RELEVANT
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FIND THE NEED
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75 HAMBURGERS A SECOND
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VALUE IS CREATED BY OUTCOMES
DESIGN EXPERIENCES FOR OUTCOMES
DOUBLE DIAMOND
Understand Define Explore Create
FIND SOLVE
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CREATE A SOLUTION HYPOTHESIS
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BUILD - MEASURE - LEARN
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CONTINUITY
ALIGNING THE DIMENSIONS IS LIKE TETRIS
Organizational Capabilities
Organizational Design
ITCustomer
Experience
AND THERE ARE MORE THAN 2 PIECES
YOU NEVER KNOW WHAT MIGHT HIT YOU NEXT
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A KATA FOR EVERY PIECE
IMPROVEMENT KATA BY TOYOTA
Baking innovation into the mindset
and culture of your brand and people
Creating a capability that
evolves with your customers over
time
• Emotion trumps transaction. Functional benefits have become an expectation not a differentiator.
• Trust-building is incremental. Delivery against expectations requires support of the whole value chain.
• Loyalty is a matter of habit. Create patterns that encourage a specific action and build variable rewards.
• Sustainable loyalty is built by design. Leaders in loyalty design experiences and platforms for continuous innovation.
TAKE-AWAYS
