inscrutable layers of knowledge unveiled to optimize the results of your loyalty program

INSCRUTABLE LAYERS OF KNOWLEDGE UNVEILED TO OPTIMIZE THE RESULTS OF YOUR LOYALTY PROGRAM

Amsterdam Arena, 07.12.2016

8+ years hands-on experience in loyalty

Loyalty Business and Operational Consulting

Loyalty Programme Management

CRM campaign planning and execution

Customer Satisfaction

Joanna Witsch (Młynarska)

TODAY’S CHALLENGES

The data are not a knowledge yet.

The knowledge is just the beginning to start

personal marketing within loyalty programs.

THE KNOWLEDGE

IS THERE…

…YOU NEED TO UNVEIL THE

INSCRUTABLE LAYERS

Hi, I’m Kate, I live in Amsterdam, I’m

35 years old

I love shopping under one roof. Street

shopping is rather not for me…

Once I had to complain that i receive

too many emails…

My wallet is full of everything so

i never know what i have there but

i have everything in my smartphone

I love socializing, my friends treat as a

fashion expert so I often share my

opinion

I’m married , we don’t have kids

yet…but i can tell you in secret that

I’m pregnant (yaaaayyyy)

I do have my car, i love it!!! but I use

public transport too, especially to

work

THE RESULT IS SUCCESS OF

YOUR LOYALTY PROGRAM

YOU MAY ASK HOW TO DO IT?

MEASURE YOUR CAMPAIGN RESULTS AS WELL AS YOUR MEMBERS ENGAGEMENT

1. Set KPIs

2. Measure results during campaign

3. Measure results after campaign

4. Benchmark them vs assumptions

5. Conclude

6. Ask your members about opinion

THE BASICS ARE: DO, TEST AND LEARN

1 Adjust offers

to target

groups

2Set

objectives

3Set KPIs and

benchmarks

4Launch

5Measure

6Improve

LEARN

DO

TEST

IT’S GREAT TO LEARN FROM OTHERS

SAMPLE CASES

PAYBACK – 5 X POINTS IN ONE WEEK – MASS CAMPAIGN THAT BROUGHT HIGH COSTS AND LOW INCREMENTAL INCOME

TARGETING:

All PAYBACK members

COMMUNICATION:

ATL, in-store, paper newsletter

MECHANISM:

5 x points for various products at different

partners but no all partners

RESULTS:

Very high commercial costs

Negative ROI

DISCOVERY:

Too short and too complicated promotion

No time for incremental purchase

VS STRONGLY TARGETED CAMPAIGN: 2X, 3X, 4X TIMES POINTS AT BP

Customer Segment CouponRedemption

Rate

Segment 1avg frequency: once per 3 weeks

avg fill: 30l +

2x - fill >30L any fuel 21 days 47%



Segment 2avg frequency: once per week

avg fill: 15l +




TARGETING:

Members with various:

Frequency of shopping & Basket size

COMMUNICATION:

In-store, coupons issued at till

MECHANISM:

Double points

Triple points

Quadruple points

RESULTS:

Up to 85% redemption rate

250% ROI

DISCOVERY:

Members willing to purchase more frequent

The better benefit, the higher redemption rate

VS STRONGLY TARGETED CLOSE COOPERATION BETWEEN TWO

PARTNERS: BP & REAL

TARGETING:

For REAL: customers who fuel the car at BP and are not

REAL members.

For BP: customers who purchase at REAL and are not BP

members.

COMMUNICATION:

In-store, on coupons issued at till

MECHANISM:

Buy 20l of fuel and get 3x points coupon for REAL

Buy for 25 PLN and get 3x points coupon for BP

RESULTS:

15% redemption rate

7K new members

250% ROI

DISCOVERY:

Proper choice of well covered stores and fuel stations was a

key for success

MY WAITROSE – REVERSED APPROACH TO TARGETING

TARGETING:

All myWaitrose members

COMMUNICATION:

In-store, online, on receipts

MECHANISM:

Choose up to 10 products for which you can get 20% off

when shopping

Amend the list 10 times a month

RESULTS:

1.5m customers in 3 months

3% sales boost

Increase in frequency and basket size

DISCOVERY:

Members are happy to spend even more on average

Amazing way to understand customer needs and engage

them is to give them the choice

VS PROFI ROMANIA – LACK OF TARGETING AND VERY LIMITED PROMOTIONS CAUSED A STRONG DECLINATION

TARGETING:

All PROFI loyalty program members

COMMUNICATION:

Online, folders and voice message

MECHANISM:

Discount for one product only on Tuesday and for

seniors on Wednesday

RESULTS:

Short-term increase in promoted products sales

Loyalty penetration was stopped on the level of 20%

and last year dropped to 13%

DISCOVERY:

One day offer for one product only doesn’t make

members loyal

HEATHROW – REACTION ON MEMBERS’ LIFE-CYCLE IN THE RIGHT MOMENT IS WELL PAYABLE

TARGETING:

Members not active in last 6 months

Potential new members

COMMUNICATION:

Email

MECHANISM:

500 points when you spend 50 GBP

RESULTS:

16% OR and 0.2% response rate for new members

29% OR and 20% response rate for reactivated

members

DISCOVERY:

Maintaining and reactivating members pays back much

more than acquisition

PAYBACK – ASKING CUSTOMERS ABOUT THEIR CHOICES IN THE SURVEYS HAS SAVED THE MONEY

TARGETING:

Members of PAYBACK that didn’t use

certain partners

COMMUNICATION:

Phone survey

QUESTIONS:

Why don’t you use our partner?

What offer would make you convinced?

RESPONSES:

It’s not on my way

It’s more expensive than other brands

I’d use it if I’d get 10% discount or more but

only for the promotion

DISCOVERY:

Try to acquire once or twice

But do not invest in the customers who

may become your members for once

PAYBACK – USING GEOLOCATION AND UTILISING RIGHT PARTNERS BROUGHT NEW VALUED MEMBERS

TARGETING:

Customers of telco operator who are not fuel station customers

Customers of bank who are rather richer but use other fuel

stations’ brands

COMMUNICATION:

Email from bank

Push notifications/ SMS when passing by fuel stations

MECHANISM:

Extra points and discounts on fuel for new members

RESULTS:

10% response rate,

50% members remained within the brand

DISCOVERY:

Maintaining and reactivating members pays back much more than

acquisition

SO WHAT IS THE INSCRUTABLE KNOWLEDGE THAT WE’VE JUST UNVEILED?

Focusing on maintaining and engaging existing

members rather than over-investing in new ones is far

more payable

But when you’ve got a new program, only when finding

the right targets and right partners will bring you

valued members that will stay with you

Too short lasting promotions bring mainly the costs

The more detailed you target and the more elements

of targeting you use, the higher income you win

Listening to your customers and letting them choose,

brings you income that can surprise

THANK YOU

Any questions?

inscrutable layers of knowledge unveiled to optimize the results of your loyalty program

Marketing