Jim Griffin discusses three levels of maturity in customer loyalty marketing. He then presents the results of a cross-sectional household survey in the Philippines, concluding with two case studies that illustrate customer loyalty marketing at a cross-roads between mediocrity and excellence. Jim is the founder of Lassu (lassuloyalty.com). He has helped dozens of clients and programs across multiple verticals, including healthcare, travel, retail, telecommunications, banking and business-to-business.
6. Source: Marketing Sherpa, 2012Conversion RateIs 208% higher for targeted messages then for email and text “blasting”
208% HigherCustomer Loyalty Marketing
7. Source: Nielson, Global Report of Loyalty Sentiment, November, 2013Customers in Asia PacificAre 92% more likely to choose brands that offer a loyalty program.
92% Customer Loyalty Marketing
8. Customer Loyalty MarketingSource: Michael Lowenstein, Customer WinbackSuccess Ratesfrom win-back campaigns are 3-4X higher than for acquisition campaigns.
3-4 X Higher
9. Customer Loyalty MarketingSource: Loyalogy, Loyalty Pulse Study, 201365% AGREE: I would recommend a brand to my friends if they have a good loyalty program.
65%
10. Customer Loyalty MarketingSource: Bain & Company, Loyalty Guide 6, 2013A 5% Reductionin customer defection will bring as much as a 50% increase in profits.
50%
5%
11. Goals of Loyalty & CRM1. Satisfaction & Advocacy•Recognition•Convenience•Personalization•Problem Resolution•Consistency Across Channels•Engagement, Fun, Surprise, Delight
12. Goals of Loyalty & CRM2. Customer Retention•Reactivation•Win-Back•Competitive Defense•Satisfaction is a Key Driver
18. 41% 25% 19% 9% 4% 2% <1%
Original Research: Cross-Sectional Survey, 570 households, PhilippinesAre you aware of any programs that give points or rewards for buying? 1.1 programs cited on average per householdDistribution of Mentions
0
50
100
150
200
250
0
1
2
3
4
5
7
Number of Respondents
Number of Programs Cited
19. 27.4%
Original Research: Cross-Sectional Survey, 570 households, Philippines27.1% Which ones? Program Types
Grocery
GeneralRetail
DrugStores
Banks
SpecialtyRetail
Government
Gasoline
Air Miles
% of Mentions 24.1% 12.4% 3.6%3.4% 1.2%0.8%
20. 27.4%
Original Research: Cross-Sectional Survey, 570 households, Philippines27.1%Program Types24.1% 12.4% 3.6%3.4% 1.2%0.8%
Grocery
GeneralRetail
DrugStores
Banks
SpecialtyRetail
Government
Gasoline
Air Miles
% of Mentions Top 2 ProgramsSM Advantage + Suki Card = 47% of Mentions221 Other Programs Cited = 53% of Mentions
28. 2012-13... Social Focus was facebook170,000 Fans so far(after 2-1/2 years) 1-2 Posts per day, themed
29. 2012-13... Social Focus was facebookBUT Agency Cost was P13 MillionOnly 12.7% of target is online1-2% are fans, if lucky
30. facebook –Declining Organic Reach16.0% 12.6% 10.2% 7.8% 6.5% Source: edgerankchecker.comFeb 2012Sept 2013Nov 2013Dec 2013Mar 2014facebook Filtered Feed60% Decline in Reach in the Past Year alone
31. facebook –Declining Organic Reach16.0% 12.6% 10.2% 7.8% 6.5% Source: edgerankchecker.comFeb 2012Sept 2013Nov 2013Dec 2013Mar 201460% Decline in Reach in the Past Year alone. It means that of the 170,000 customers who liked the page, only about 11,000 see each post. Question: What is the business case?
32. 2014-15... More Focus on MobileMembers per yearOn Pack (mobile) vs. facebook68,000facebook253,000On Pack
33. But then... 40% Opt-Out 68,000facebook253,000On Pack40% Opt-Out Rate due to sending “tips” (Content was not relevant.)
34.
35. Some Good Questions... •What behavior is desired? •How can we track behavior? •How to make it easy? •Is the reward worth the effort? •What are the segments? •What do we say to each?
37. Program Relaunch
44.4%
18.5%
11.1%
7.4%
18.5%
Rewards and Benefits
Points not Awarded
Long Wait for Card
Points not Known or Verified
OtherSources of Dissatisfaction
38. Program Relaunch
44.4%
18.5%
11.1%
7.4%
18.5%
Rewards and Benefits
Points not Awarded
Long Wait for Card
Points not Known or Verified
OtherSources of Dissatisfaction FixedPoints will buy anything in the store.
Pay P 434.00
39. Program Relaunch
44.4%
18.5%
11.1%
7.4%
18.5%
Rewards and Benefits
Points not Awarded
Long Wait for Card
Points not Known or Verified
OtherSources of Dissatisfaction Fixed FixedSimplified point rules
40. Program Relaunch
44.4%
18.5%
11.1%
7.4%
18.5%
Rewards and Benefits
Points not Awarded
Long Wait for Card
Points not Known or Verified
OtherSources of Dissatisfaction Fixed Fixed FixedPermanent cards printed in the store real time
41. Program Relaunch
44.4%
18.5%
11.1%
7.4%
18.5%
Rewards and Benefits
Points not Awarded
Long Wait for Card
Points not Known or Verified
OtherSources of Dissatisfaction Fixed Fixed Fixed FixedReal-time points calculationon the receipt+ website
Lassu
www.lassuloyalty.com
42. Program Relaunch
44.4%
18.5%
11.1%
7.4%
18.5%
Rewards and Benefits
Points not Awarded
Long Wait for Card
Points not Known or Verified
OtherSources of Dissatisfaction Fixed Fixed Fixed Fixed FixedLive customer service line with email and chat support
43. Program Relaunch
7%
28%
50%
9%
6%
E
D
C
B
A
Classifications derive from
•Member Income
•Occupation
•Automobile Y/N
•Household Staff
3,240 possible combinations each maps to a socio-economic class. THENMember data could not describe profile of shoppers. and NOW
49. None of the loyalty heads we interviewed claim that they are doing a “great job” Delivering a personalized customer experience, with highly-relevant, targeted offers based on RFM and customer demographic profile.
54. the GapThe Agency has established brand position and creativesThe tech partner is able to push campaigns... but what exactly to communicate, to whom, and when? . . . .. . .
56. Lassu is the ASEAN partner member of Customer Strategy Network. Collectively, the members of our global team have launched or helped to reengineer well over 100 loyalty programs around the world, including most of the top global brands. Working with a CSN partner like Lassu, gives you access that network. We bring this expertise to your doorstep.
57. Optimized Program Design
•Benchmarking, Voice-of-Customer
•Customer Value Proposition
•Financial Model
•Program Mechanics & KPIs
•Best-Customer Marketing
Mike Atkin
Chairman, CSN
Jim Griffin
Founder, Lassu
58. Lassu is connected to faculty at the University of the Philippines, Graduate School of Statistics. We have experience with nationwide household surveys, and the head of our statistical practice is a consultant for measurement science at Nielsen Media Research, SAS and McCann Worldgroup, among others, including a wide variety of marketing initiatives at top companies in the banking sector, FMCG and other verticals.
59. Customer Knowledge
•Single Customer View
•Segmentation
•Analytics
•Event Detection
•Campaign Management
•Serving the Right Content
Francisco de los Reyes
Professor, Statistics
University of the Philippines, Diliman
60. Lassu is the ASEAN distributor and reseller
of Loyalty Prime – a complete enterprise-class
loyalty platform. We offer full CRM
and loyalty management, and excellent
integration to backend systems, like POS,
reservations, and ERP. With our platform,
you can easily segment your customers, and
then build engagement using social, mobile,
website, email, SMS and marketing
campaign automation. Or we can handle it
for you.