Digital loyalty education session at Beauty Expo Australia 2015 by Mark Horwood-James; Head of Strategy at Blackglass/The Gruden Group

1. 1|© The Gruden Group
WELCOME
Digital Loyalty – Extending your reach beyond the counter
Presented by
Mark Horwood-James
Head of Strategy and Experience, The Gruden Group

2. 2|© The Gruden Group
DIGITALLOYALTY Welcome. We hope you enjoy your
day at the Beauty Expo Australia
1 2 3 4
Introduction The word loyalty The digital world Meet the brands
Alittlebackground on
myselfand TheGruden
Group.
What doesthat word
meanand why it is
important?
What areconsumers
tellingusabout digital
interactionsand loyalty
Hearabout ourclients
Starbucks,RedRooster
and DonutKing.
5
Hints, Tips, Q&A
Afew do’s,a few don’ts.
Pleasefeelfreeto seeme
afterwithany Q&As.

3. WHO
WE ARE
Aboutme
TheGrudenGroup
IntroducingmobileDEN

5. 5|© The Gruden Group
INASNAPSHOT
A full service digital agency.
95ESTABLISHED
IN 1995
60+MULTI
DISCIPLINARY
EXPERTS
5OFFICE
LOCATIONS
WE ARE AN
INNOVATIVE FULL
SERVICE DIGITAL
AGENCY WITH A
DEDICATED
PRODUCT ARM

6. 6|© The Gruden GroupOver the past 20+ years we have worked with many companies. Small & big. Agencies. Design. FMCG. Government. Media. Retail. Startups. Technology.
AFEW CLIENTS & PARTNERS
OUR PARTNERS MEMBERS OF

8. CORE MODULES

9. ENGAGEMENT

10. WHAT DOES
LOYALTY MEAN?

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LOYALTY What does loyalty mean? Many look
at the tactics and not the end goal
It has become the custom to identify any customer that purchases your
brand more than once as a ‘loyalist’.... My favourite (correct) definition of
brand loyalty came from the former CEO and chairman of Heinz who
once explained his idea of brand loyalty for his brand:
“A shopper goes into a supermarket looking for some beans. There’s no
Heinz. She comes out without any beans.”
Could it be any simpler?
Mark Ritson
An Associate Professor of Marketing. Published journalist and
Business Columnist of the Year 2015 The PPA Awards.

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LOYALTY There are many channels and mechanism’s to generate
loyalty, but they are not loyalty itself.
Loyalty does not require reward
Reward however can create loyalty
"A thing given in recognition of effort"
Customer retention does not mean loyalty
Loyalty does generate retention
“A strong feeling of support or allegiance“
OUR GOAL IS TO GROW
• Income • Profit • Market share • Retention • Acquisition
• Quicker • Cheaper • Personalised • Measured

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WHERE DO I
START?
It seems obvious but you must start with
getting to know your customer.
Before you can implement a
digital loyalty strategy, it is key
to know who your customer is.
- Who are they?
- What do they like and don’t like?
- What are their personal and family priorities?
- What are their professional priorities?
• Build up a profile, a story, a portrait of who they are.
• Do you have one, two or three different types of
customers?
• Do they have different reasons for buying your
product/using your service?
• What is their opinion to digital marketing and which do
they use most? What do they use it for?

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THE ELEMENTS OF
LOYALTY
The majority of businesses focus on price and product or
service for sale. Loyalty is created from so much more
Product / service
offering
Pricing
Loyalty

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THE ELEMENTS OF
LOYALTY
The majority of businesses focus on price and product or
service for sale. Loyalty is created from so much more
Customer service
experience
Reward /
recognition
Brand identity
Product / service
offering
Communication
/ engagement
Pricing
Loyalty

16. WHAT ARE THE
CUSTOMERS SAYING?

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FOOD FOR
THOUGHT
Loyalty has to be cultivated. It can’t
be purchased or demanded.
If you build loyalty with a customer, it shouldn’t just be about instant
gratification, it is about building a relationship pre and post purchase.
Our customers are vocal brand advocates and answer 50% of our
website queries – I think that shows it can really work.
Sam Thomson
Brand Director at The Body Shop
(Sam worked for 11 years at Proctor & Gamble and studied at Oxford University)

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THE DIGITAL
WORLD
These other factors are heavily influential to customer
loyalty in today’s digital world.
Customer service
experience
Reward /
recognition
Brand identity
Communication
/ engagement
• Website experience
• Support the customer at every key step
• Mobile friendly
• Online purchase process
• Digital and traditional experience must be integrated
• The digital purchase process makes it easy to buy once and buy again
• In-store purchase process
• Offer multiple payment options
• Embrace technology
• Distributors and third parties
• Does their digital experience and customer service impact on your customer loyalty?
• Can you enhance your service and experience by utilising other brands?

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THE DIGITAL
WORLD
These other factors are heavily influential to customer
loyalty in today’s digital world.
Customer service
experience
Reward /
recognition
Brand identity
Communication
/ engagement
47%
unhappy
17%
vs73%
2015
US&UK
• Website experience
• Support the customer at every key step
• Mobile friendly
• Online purchase process
• Digital and traditional experience must be integrated
• The digital purchase process makes it easy to buy once and buy again
• In-store purchase process
• Offer multiple payment options
• Embrace technology
• Distributors and third parties
• Does their digital experience and customer service impact on your customer loyalty?
• Can you enhance your service and experience by utilising other brands?
#1
#2being available
on my terms
193.5m
card transactions
$25,649 million.

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THE DIGITAL
WORLD
The other factors are heavily influential to customer
loyalty in today’s digital world.
Customer service
experience
Reward /
recognition
Brand identity
Communication
/ engagement
95%
of content is viewed
SMS
42%
INCREASE IN
CONVERSION WITH
PERSONALISED CTA
• Pre-sale communication
• Simple, straightforward and supporting
• Personalistation
• Acknowledge your returning customers
• Post-sale communication
• Receipts and invoices
• Confirmations (order, delivery, manage expectations)
• A simple thank you
• Surveys: Insight and feedback
• Using data
• If you collect customer data, give customers a valuable reason
• Newsletters can be a real ‘value add’ but remember the role
• A newsletter and an email are not necessarily the same thing
• Social media
• Loyal customers and advocates are already likely to be engaged
• Have a clear role for convert customers to loyal customers – add value, don’t preach
• And remember social media is social

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THE DIGITAL
WORLD
The other factors are heavily influential to customer
loyalty in today’s digital world.
Customer service
experience
Reward /
recognition
Brand identity
Communication
/ engagement
25%
e-receipts
1 in 10
Complete a survey
with Survey Monkey
every month in Australia
Nearly 7 out 10
Customers leave a brand
because they feel indifferent
• Pre-sale communication
• Simple, straightforward and supporting
• Personalistation
• Acknowledge your returning customers
• Post-sale communication
• Receipts and invoices
• Confirmations (order, delivery, manage expectations)
• A simple thank you
• Surveys: Insight and feedback
• Using data
• If you collect customer data, give customers a valuable reason
• Newsletters can be a real ‘value add’ but remember the role
• A newsletter and an email are not necessarily the same thing
• Social media
• Loyal customers and advocates are already likely to be engaged
• Have a clear role for convert customers to loyal customers – add value, don’t preach
• And remember social media is social

22. 22|© The Gruden Group
THE DIGITAL
WORLD
The other factors are heavily influential to customer
loyalty in today’s digital world.
Customer service
experience
Reward /
recognition
Brand identity
Communication
/ engagement
• Pre-sale communication
• Simple, straightforward and supporting
• Personalistation
• Acknowledge your returning customers
• Post-sale communication
• Receipts and invoices
• Confirmations (order, delivery, manage expectations)
• A simple thank you
• Surveys: Insight and feedback
• Using data
• If you collect customer data, give customers a valuable reason
• Newsletters can be a real ‘value add’ but remember the role
• A newsletter and an email are not necessarily the same thing
• Social media
• Loyal customers and advocates are already likely to be engaged
• Have a clear role for convert customers to loyal customers – add value, don’t preach
• And remember social media is social

23. 23|© The Gruden Group
Through campaigns segmented
by hair colour, haircare and
cosmetics, they elevated brand
awareness across all product
categories, including: cosmetics,
hair colour, haircare, hair styling
and skincare
Best Retail Online Newsletter Campaign, Best Of Show Online Newsletter Campaign

24. 24|© The Gruden Group
THE DIGITAL
WORLD
The other factors are heavily influential to customer
loyalty in today’s digital world.
Customer service
experience
Reward /
recognition
Brand identity
Communication
/ engagement
9 million
Facebook DAU
12 million pcm.
• Pre-sale communication
• Simple, straightforward and supporting
• Personalistation
• Acknowledge your returning customers
• Post-sale communication
• Receipts and invoices
• Confirmations (order, delivery, manage expectations)
• A simple thank you
• Surveys: Insight and feedback
• Using data
• If you collect customer data, give customers a valuable reason
• Newsletters can be a real ‘value add’ but remember the role
• A newsletter and an email are not necessarily the same thing
• Social media
• Loyal customers and advocates are already likely to be engaged
• Have a clear role for converting customers to loyal customers – add value, don’t preach
• And remember social media is social – positive and negative word of mouth

25. 25|© The Gruden Group
THE DIGITAL
WORLD
The other factors are heavily influential to customer
loyalty in today’s digital world.
Customer service
experience
Reward /
recognition
Brand identity
Communication
/ engagement

26. 26|© The Gruden Group
THE DIGITAL
WORLD
The other factors are heavily influential to customer
loyalty in today’s digital world.
Customer service
experience
Reward /
recognition
Brand identity
Communication
/ engagement
• A clear programme is a well-received programme
• Customers should find it easy to understand the benefits
• If a spend based system, focus on points/reward and not $$$
• Base it around experiences and actions
• Link your programme back to who your customers are – it is ok to be exclusive
• Personalise the rewards
• To them – likes, dislikes, needs
• To the existing relationship with you
• Recognise key dates to create new reasons to believe
• Birthdays, anniversaries etc.
• Length of relationship with brand
• Changes to, or lack of, typical behaviour
• Have a clear strategy on the commercial value – it’s marketing after all
• Other products you can sell as part of rewarding your customers
• Obtain more information and data about your customers
• Moving customers up the product level to get more spend
• Don’t push rewards and recognition for customers that aren’t worth it
1 card
16 countries
600 hotels
800 restaurants
$335

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THE DIGITAL
WORLD
The other factors are heavily influential to customer
loyalty in today’s digital world.
Customer service
experience
Reward /
recognition
Brand identity
Communication
/ engagement
• Visual impacts
• Logo, imagery, colours, icons and other assets
• The right impression: old fashioned, too quirky, too conservative, too boring, too controversial
• You create and build a brand to connect with your customer – and not everyone is right
• Make it appropriate to how you communicate – social is different to email and, again different to a website
• Language and tone
• Words and style; connotations, humorous , sarcastic, blunt, bland, harsh, rude, real
• People both consciously and subconsciously connect with language
• Build your style to connect with your customer - be consistent, be targeted and be brave
• Match your style to your digital channels – be funny on social and be interesting on email…..
• Brand values and perception (PR)
• What does your brand, product and business mean? If it was a person what does it stand for?
• What do people say about your brand online? The world is an open book now?
• When you go out to the public, how are people responding to you? Bad PR is not good for loyalty but…
• Who are you in bed with? The values of that band are associated with yours!

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29. CLIENTS WHO
FOCUSED ON LOYALTY

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STARBUCKS
WEB
STRATEGYMOBILE
o 25 Stores across the east coast of Australia serving thousands of coffees
every day. However, in Australia there are over 10,000 cafes.
o Developed an iOS & Android mobile apps to support their Starbucks card
programme - digital payments, promotions, social, store locator
o Desire was to establish a more personal connection with the brand, something
they have been struggling to do in Australia.
o Winner of “Best Online Shopping & Payments”
– 2013 Mobi Awards 2013
o AIMIA 2014 awards nominated & shortlisted (“Best Of Smartphone [Retail &
eCommerce]”)
o Launching with them a new version of the application with
a whole host of new features this year
For Starbucks, one of their main priorities is about
delivering a better experience by making things easier
for the customer.

31. Digital Wallet & Loyalty Android & iOS mobile apps
1

32. Android & iOS mobile apps
2

33. Android & iOS mobile apps
3

34. Android & iOS mobile apps
4

35. Android & iOS mobile apps
5

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DONUT KING
AMAZEBALLS
GAME
STRATEGYMOBILE
o New product launch with the aim to target previous customers
and cultivate brand loyalty. Two additional benefits: loyal
customers had something new to say, new customers something
to try.
o We developed an iOS Augmented Reality game that was used in
store to develop better relationships with customers.
o The focus was to connect with customers and align a new brand
experience with the core brand values – moving from
communication to engagement.
o Everything created ‘in-house’ and delivered in market in less
than 1 month!
o Multi-award winner (“Best Of Show [iOS App]” & “Best Mobile
Marketing Campaign” – 2013 Mobi Awards)
For Donut King, one of the key objectives was about
engaging the customer, aligned to their brand values

37. Our multi award-winning augmented reality iOS game
1

38. Sketch 27 of 65
2

39. Low-poly prototype v0.1
3

40. Augmented gameplay, tips, trophies, leaderboards, share
4

41. Social campaign
5

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RED ROOSTER
END
ENDTO
o Red Rooster are part of Quick Service Restaurant Holdings
(QSRH) who also own Chicken Treat and Oporto.
o The mobile loyalty app that we have developed for them offers a
mixture of payment, rewards programme, special offers,
ordering and social media integration.
o The challenge faced by the fast food sector is there is little
customer influence opportunity at the final choice point.
o The mobile application gives Red Rooster a difference to other
major competitors because it can help create new loyalist
through the benefit of targeted and personalised rewards &
offers (as part of an overall communications plan).
o It also recognises and rewards brand loyalist in different ways.
For Red Rooster, their key priorities are around
reward & recognition, to drive brand loyalty

43. Red Royalty – Digital Loyalty iOS & Android Apps
1

44. Red Royalty - Loyalty Program (eDM)
2

45. DO’s & DON’Ts

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KEY THOUGHTS… The do’s of digital loyalty strategies are easy to remember.
1. Know your customer: What is it that will make the most impact and generate
allegiance to your brand and product/service. Use your customers to your
advantage. They are your biggest asset. Display reviews, actively seek
feedback and take care of them.
2. To take the time to learn and research about the digital world. Today’s a great
start and there are many simple tools that can make a difference to your
customers – and specialist experts who make it their job to help you.
3. Digital is made up of many elements, simple and complicated. A ‘Thank you’
on an SMS can generate just as much loyalty as a fully-fledged reward
programme.
4. Loyal customers will mean cheaper business costs. It’s cheaper to retain
customers than acquire new ones, and word of mouth from advocates is the
best form of advertising for new business.
5. Great loyalty is all based around insight. Insight comes from data, data, data!
Don’t be afraid to collect it and use it (make sure it’s of value). Remember to
track and measure activity. And listen to what is being said.

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...THINKABOUT... Don’t make things more difficult for your business. The
aim is to create a strong connection between your brand
or product, and your customers.
1. Don’t stay focused on price and product. True brand loyalty is generated
from more than just those two elements.
2. Don’t forget that repeat business does not necessarily mean loyal customers.
3. Don’t try and do everything at once, you will only do them badly. Match your
strengths and your customer’s needs.
4. Don’t play with social media if you don’t have the time or only make half the
required effort. You will only be speaking to people who are already loyal.
5. Don’t forget other parties have a massive influence on the perception of your
brand and the loyalty you generate.

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SPECIALOFFER Just for Expo attendees
from Blackglass, the
digital marketing arm of The Gruden Group
Win a Free Digital Strategy
Go to our website for your chance to win a free digital marketing strategy,
worth up to $5,000!
Tell us in 50 words or less how a digital marketing campaign could change your
business.
Visit www.blackglass.com.au/beautyexpo
Terms and conditions apply.

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@BlackglassAU
@GrudenDigital
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