boost loyalty in a digital world - sas institute · • strategic planning ... enhanced service...

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BOOST LOYALTY IN A DIGITAL WORLD

ARGYLE CMO WEBINAR | WILSON RAJ | GLOBAL DIRECTOR, CI | MAY 28, 2015


LOYALTY AS …BRAND PROMISE + CUSTOMER EXPERIENCE + MARKETING

TO:

• Experiences

• Engaging

• Consumer recognition

• Consumer moments

• Contextual utility

• Value exchanges

• Levels of engagement

• Adaptive planning

• Semantic economy

FROM:

• Campaigns

• Targeting

• Consumer segmentation

• Media schedules

• Relevant messages

• Transactions

• GRPs and CPMs

• Strategic planning

• Scale economy

Adapted : Forrester Research 2014, SAS


IMPERATIVE #1

SHIFT BRAND MANAGEMENT TO BRAND & CUSTOMER EXPERIENCE PLATFORMS


DELIVER EXPERIENCE OF A LIFETIME! FIRST SEASON …

100,000 guest

activated

6 million digital pins

45% users shared

on Facebook/Twitter

35 million social

impressions


UNIFY PRODUCT, PRICING, INVENTORY INFORMATION


BUILD CONTEXTUAL INTERACTIONS & INSIGHTS

Source: McCormick


REDUCE FRICTION


MERGE DIGITAL AND PHYSICAL WORLDS

Image: WSJ


LOYALTY TRANSFORMATION

SHIFT FROM “LOYALTY PROGRAMS” TO “LOYALTY COMPANY”


LOYALTY

PROGRAMS

BEEFING UP …

US LOYALTY MEMBERSHIP – 2012 TO 2014

… BUT LEAN ON

ACTIVE

PARTICIPATION

Reference: Colloquy 2015 Loyalty Census


LOYALTY

MEMBERS MORE VALUABLE CUSTOMERS …

Motivated by non-

transactional

rewards

Pay higher price

Share and

advocate more


CURRENT LOYALTY

PROGRAMSPARITY. UNDIFFERENTIATED. DISCRETE.


IMPLICIT EXPLICIT

Rewards – incent behavior

Recognition – realize customer value

Engagement – strengthen relationships

FUTURE LOYALTY

PROGRAMS REWARD, RECOGNIZE, ENGAGE FOR MAXIMUM BENEFIT


ADD “EMOTIVE”

TO “RATIONAL”

FOR LOYALTY

TRANSACTIONAL VS. NON-TRANSACTIONAL

Data is born

“unstructured”

Loss of valuable

context with

structure

“Haggling data”


Benefit Reward Recognize Engage Example

Access Gilt Insider

Auctions Starwood Preferred Guest

Cash Back TXU Energy Retail

Content Kellogg's Family Rewards

eCommerce Redemption Chase Ultimate Rewards

Enhanced service Sephora Beauty Insider

Experiences Virgin America, American Express, Nordstrom’s

Instant discounts Target REDcard

Sweepstakes Coca-Cola My Coke Rewards

Loyalty currency Walgreen’s Balance Rewards

Member events North Face VIPeak, TJX Canada Style+

Rewards certificates GapCard, Banana Republic, J-Crew

Status Tiers JetBlue Airways True Blue, United

Surprise and delight Panera Bread’s MyPanera

Targeted offers Kroger

Sources: Forrester Research, WSJ, SAS


IMPERATIVE #3

ALIGNING CUSTOMER EXPERIENCE & ANALYTICS


84% of smartphone shoppers use their phones

while in a physical store. –ThinkGoogle

71% more likely to purchase based

on social media referrals. –HubSpot

88% of consumers trust online reviews as much

as personal recommendations. –BrightLocal

DID YOU KNOW?

IMPLICIT LOYALTY RETHINKING THE CUSTOMER DECISION JOURNEY

Day 1 Day 5Day 2 Day 3 Day 4

I need to buy a

new blazer.

touch points

Purchase

made.

Comparison

shopping begins.

Additional

research.

Research

online reviews.

She researches

opinions via social

channels: Facebook,

Twitter, Yelp, etc. She writes a review

about her experience

and the product.

She receives a

promotional email

from a retailer.

While in store she

receives a promotional

text for 10% off.touch points

activities


DATA

& ANALYTICS

ANALYTICS THROUGHOUT CUSTOMER’S BRAND

EXPERIENCE

Journey Stage Top Marketing Goal Analytics

Discover

Profile customers Segmentation

Evaluate prospects Lead scoring

Reach right prospects Acquisition models

Explore

Analyze customer response Offer/ contact optimization

Optimize marketing mix Marketing mix modeling

Test marketing A/B, multivariate testing

Buy

Predict future behavior Propensity models

Target accurately Segmentation, valuation models

Personalize marketing Next best action models, social/ text VOC analysis

Engage

Expand breadth of customer interactions Cross-sell/ upsell

Increase depth of customer interactions Loyalty models

Incorporate customer feedback Value of customer analysis

Manage customer attrition/ defection Churn/ attrition models

Maximize customer value Lifetime value models


“Life is a game of inches. In life, the margin of error is so small –

one half of a step too late or too early and you don’t quite make it.

One half of a second too slow or too fast, you don’t quite catch it.

The inches we need are everywhere around us. They’re in every

break, every minute, every second,”

Tony D’Amato (Al Pacino), Any Given Sunday

Photo credit: Ed Schipul


“Boosting loyalty is a game of inches”

@wilsonraj

Photo credit: Barbara Krawcowicz


LOYALTY PROGRAM TO

LOYALTY COMPANYFOUNDATIONS FOR WINNING THE GAME OF INCHES …

• Expanded client data

• Balance of privacy vs.

personalization

• Data Governance

• Orchestrated decision-making

• Measurement realigned to

customer management drivers

• Real-time enablement

Operations

Excellence

Data

Management

Analytics &

Visualization

• Customer analytical environments

• Self serve analytics

• Better visualization of data & insights

1 2 43

Big Data

Platform

• Introduce data variety

• Extended data partnerships

• Real-time and contextually aware

insights


THANK YOU

@WILSONRAJ | [email protected]

WWW.LINKEDIN/IN/WILSONRAJ

boost loyalty in a digital world - sas institute · • strategic planning ... enhanced service...

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