Keeping the excitement with your customers

28.09.12

Keeping the
Excitement with
your Customers
Global Loyalty Solutions

Loyalty Landscape
2

are members of at
92% least one program
6.4 / person
Maritz Loyalty Insights (2012)

1,673,000,000 members
5.4 / person
14 (6 active) / household
Colloquy
Copyright 2012 © - Welcome Real-time

Loyalty Programs are now a Commodity
3


Raising Perception NOT Costs
4

“Price is what you pay. Value is what you get.”
Warren Buffett

Loyalty is driven by ‘emotion’ not ‘rationale’

The right types of reward have a perceived
value that far outweighs the underlying cost


Drive Excitement by Giving More?
5


Rewards must be Attainable
6

Rewards if not attainable, will lead to reduced
engagement and ultimately defection
"69% of the people surveyed said they left a loyalty program
because it took too long to earn enough points to get a reward”
Maritz Loyalty Track Survey (Nov 2003)

Reasonable months-to-earn average:
1 2 3 4 5 6 7 8 9 10 11 12

1,000 respondents
20% 37%
Maritz Loyalty Track Survey (Oct 2004)

Experiential Rewards
7

“We don’t remember days; we remember moments.”
Cesare Pavese

Reward program members who have redeemed for
experiential rewards are 30% more likely to be WOM
Champions than those who have redeemed for discounts
Colloquy

Lucky Draws
8

Excite customers by giving them the
chance to win something ‘desirable’

Fixed reward cost!

Auctions
9

Stir up competition, by auctioning off highly
sought after rewards that ‘money cannot buy’
Stand a chance to We’re auctioning off
win EXCLUSIVE VIP a PRICELESS F1
backstage passes driving experience

Dramatically increase
Increase customer
the perceived value
engagement by creating a
with rewards that
competitive environment
‘money cannot buy’

Selfless Rewards
10

Harness ‘causal’ drivers to give customers a
community-based collective goal

HSBC Green Roof for Schools

Leverages on social More appealing to customers
pressure to encourage who do not see the value in
continued participation traditional loyalty rewards

Differentiated Rewards
11

Originally the exclusive domain of airlines, ‘Status
Programs’ are now common place in other sectors

Flat vs. Tiered
‘Status Tiers’ are an effective way of introducing ‘Soft
benefits’ for premium customers, whilst at the same
time creating ‘aspirational drivers’ for lower-tier
customers
“A three-tier program (e.g. Gold, Silver, and no-status) is more
satisfying to all involved than a two-tier program (Gold and no-
status), even to those who do not qualify for elite status”
Dreze and Nunes (2009)

Perception of Status Programs
12

82.5%
ranked ‘Chain C’ as
the most popular

71.4%
of the ‘No Status’
participants prefer
the program that “If you create an elite tier,
has 2 elite tiers! it is better to create two”
Copyright 2012 © - Welcome Real-time Dreze and Nunes (2009)

Status Programs by Industry
13

Airlines

Hotels

Car Rental

Others


Reward Timing: Immediate vs. Delayed
14

“With a scheme based on rewards-on-demand you may get
an increase in behavioural-loyalty but it won’t go any further;
there’s no opportunity to extend emotional loyalty.”
Scoring Points: How Tesco Continues to Win Customer Loyalty (Clive Humby)

“delayed rewards in a loyalty program have a significant impact on
customer loyalty, whereas one-shot promotional features do not”
Leenheer and Bijmolt (2008)

“delayed rewards work better than immediate rewards
only if customers are satisfied with their experience”
Hu et al. (2010)

Engage Customers Socially
15

Harness social networks to open rich and diverse
two-way communication channels with customers

Actively encourage
customer interaction

Avoid the tendency
to over-promote


Help Customers Share Their Excitement
16

Self-described
WOM Champions 55%
Likelihood of an
‘active’ member being
a WOM Champion
3x
Colloquy

People are more likely to trust a
recommendation from a friend
AHAlife / Twitter

Social Media is not a Quick-Win Solution
17


The Power of Postcards
18

How a UK-based Charity
slashed donor attrition
rates using Postcards

Attrition rate after
6 months halved!

Rapidata Case Study

Communication: Old is New
19

Sometimes it’s the
little things in life
that count the most
Johnny the bagger


Look for compelling Quick Wins
20

Stay ‘front-of-mind’ by
giving your customers easy
and up-to-date access
directly from PassBook

Loyalty Card (Balance)

Coupons / Vouchers

15 Years of Experience in Loyalty
22

> 20 live projects across 5 continents.
> 14 different spoken languages
> Local presence in 30+ countries (direct or via partners)

Aix-en-Provence
(France)

Singapore

Sao Paulo

300,000 daily loyalty transactions
between1+ Million Retailers and
2011 live projects 50+ Million consumers.


Products Overview
23

Online redemption Push offers Real-time customer interaction
@ Payment

PC & tablets
version Smart phone
version E-Wallet +
integration
Media Integration
Internet payment POS

Loyalty scheme
App
Welcome Loyalty ePOS
Engine

Loyalty Scheme Merchant
Analytics
Management Portal
Portal
Portal
Applications used by the loyalty scheme operator / the issuer Application used by Merchants


Sample References
24

Retail Banking

Payment Processors Partners and Operators


Thank you
for your attention

www.welcome-rt.com

© 2012 Welcome Real-time. All rights reserved.
Content in this presentation is provided for general information purpose only and is owned by Welcome Real-time. It does not
constitute a contractual document and may be amended or updated by Welcome Real-time from time to time. This content shall not be
copied or reproduced or otherwise used for any reason, except for your own business purposes and/or personal use.

Keeping the excitement with your customers

Recommended

Recommended

More Related Content

What's hot

What's hot (19)

Similar to Keeping the excitement with your customers

Similar to Keeping the excitement with your customers (20)

Recently uploaded

Recently uploaded (20)

Keeping the excitement with your customers

Editor's Notes