cracking the loyalty code
DESCRIPTION
Engaging connected shoppers armed with virtually unlimited technology requires updated loyalty practices that reflect individual preferences, affinities, and interactions. This presentation discusses the state of loyalty today as well as tips for developing programs that lead to loyalty-building engagement.TRANSCRIPT
©2011 RedPrairie Corporation. All rights reserved.
Crack the Code for Optimizing Promotions and Loyalty
“Loyalty” Today
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18accts/household
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8.4active accounts2
$48B2011 rewards2
2.1Bloyalty members1
85%hear “nothing”
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81%know “nothing”
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36%reward worked 2
17%“very influential”
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25%“very loyal”
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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
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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
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Loyalty 3.0The Road to Customer Engagement
Potential Loyalty Benefits Abound…
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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
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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
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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
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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
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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
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• 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
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“HT +1” Engages One on One
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©2011 RedPrairie Corporation. All rights reserved.
Fully Baked Loyalty 3.0 at Panera
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©2011 RedPrairie Corporation. All rights reserved.
Fully Baked Loyalty 3.0 at Panera
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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
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RedPrairie is Commerce in Motion
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Red Prairie Customer Engagement Management
Seamless Interaction Across Channels & Touch Points
Learn MoreRedPrairie.com/All-Channel-Commerce
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Clienteling Test Drive