Nicholas Kontopoulos, a senior global marketing director, gave a presentation on moving from customer loyalty to brand advocacy. He discussed how the rise of digital customers has impacted businesses and changed customer expectations. Kontopoulos argued that companies need to shift their focus from traditional loyalty programs to delivering excellent customer experiences across all touchpoints in order to transform customers into brand advocates.

1. From Customer Loyalty to Brand Advocacy
Customer Loyalty 2013
Nicholas Kontopoulos | Senior Global Marketing Director
26th of March, 2013 | Singapore

2. A little bit more about me…
@Nicholask71

3. and what makes me tick.
@Nicholask71

4. @Nicholask71

5. @Nicholask71

6. @Nicholask71

7. Passionate about my customers

8. My objective today is to…

10. Fire-up your
brain juices

11. The Impact that the
Digital Customer
By
taking
a
look
at
the
imapct
that
the
age
of
the
“Digital
Customer”
is
having
on
ythe
is having on our
businesses
Enterprise

12. @Nicholask71

13. “
A man without a
smiling face must
not open a shop.
Chinese Proverb

15. Raise
your
hand
of
if
ever
bought
goods
or
services
from
an
online
retailer
Amazon,
Zappos,
HSBC,
Sachs

17. WHAT’S THE POINT?

18. Customer Experience
leaders OUTPERFORM
the laggards
Over a recent five-year period during
which the S&P 500 was flat, a stock
portfolio of customer experience leaders
grew 22%. During this time, Forrester
found that those companies who
+22%
-46%
performed poorest in the Customer
Experience Index also performed
poorest in terms of stock performance.
Source: 2009. All rightsResearch 2012
© SAP AG Forrester reserved. / Page 18 Internal

19. We live in a world of ‘DIGITAL IMMERSION’
MOBILITY RICH CONTENT SOCIAL APPS

20. MORE CHOICES
LESS RESOURCES
DECISION MAKING
EVOLVING FAST

21. Source: http://www.youtube.com/watch?v=W-Yf1u3xD_I&feature=share&list=PL289DF6F734E11CD2

22. The Good Old Days

23. NO ALTERNATIVE BETTER THE DEVIL
TOO HARD TO MOVE
GOOD EXPERIENCE

24. AS roblem
The
P WE
KNOW IT
Customer
Loyalty
is
Dead
–
Image
of
loyalty
cards
Text
“As
we
know
it”

25. Are you more loyal to your
brands than 10 years ago?

26. Relationship CHANGED
The
Problem
RelaJonship
between
buyers
and
sellers
have
changed

27. DIGITALLY
EMPOWERED
CUSTOMERS

28. Customers are DRIVING
the conversation

29. Search
Information
PURCHASE

30. Customers are looking to be RESCUED

31. The COST of customer acquisition versus
customer retention could reach as high as 700%
Source: ‘The Loyalty Effect’ by Frederick Reichheldof Bain & Co.

32. A 5% increase in customer retention results in a
25% to 100% increase in PROFITABILITY
Source: ‘The Loyalty Effect’ by Frederick Reichheldof Bain & Co.

33. RISING customer EXPECTATIONS reflect a
higher degree of likelihood to SWITCH brands

34. HOSTAGE waiting to escape

35. “
The simplest
customer service
frustration question of
all? “Why isn’t this
as important to you
as it is to me?
Seth Godin

36. Give the customers a
GREAT EXPERIENCE
The
SoluJon
Customer
Experience!!!

37. Customer Experience
“The customer's perceptions and related feelings caused
by the one-off and cumulative effect of interactions with a
supplier's employees, systems, channels or products”
Source:
Gartner

38. “Or, the aggregated memories of every touch a
customer has with your company”

39. Customer Experience Management
“The practice of designing and reacting to customer
interactions to meet or exceed customer expectations to
increase customer satisfaction, loyalty and advocacy”
Source: Gartner

40. “Or, delivering a consistent customer experience
across the entire enterprise”

41. The
SoluJon
Key
ingredients
–
Image
from
file
INGREDIENTS

42. 7 Steps to get started with CEM
§ Build a cross-functional work team
Where to start?
§ Define key elements of a strategy
§ Map the customer journey
§ Consolidate customer data collection/VoC
§ Create a governance mechanism
§ Map the customer experience ecosystem
§ Select Projects that build momentum
Source: 1to1 Media 7 Steps to Get Started With Customer Experience

44. CRM is
not
about
soQware…

45. CRM is
not
about
soQware…
…it
is
an
ideology

46. It is about
connecting
people…
Employees Customers

47. it
is
about
delighting
your customers

48. CUSTOMER
? LOYALTY
MANAGEMENT

49. “
Integrate loyalty thinking
across the consumer
experience. Loyalty isn't a
program or a function in your
org chart. It the combination
of your customer-facing
efforts.
Mike Linton

50. ALIGN program to CEM vision

51. Companies have built OUTPOSTS

52. Interaction History
Remove SILOS
Order Information
Billing
ecommerce
Mobile

53. OMNICHANNEL strategy is required

54. STRUCTURED approach

55. View of the PAST

56. CAN MARKETING
LIFT STOCK
PRICES?

57. Used analytics to determine
“Customer lifetime value”
5 years of data was crunched for two
Fortune 1,000 companies (B2B & B2C).
9 month field experiment using specific
marketing strategies based on the
“customer lifetime value” of each
customer or customer segment.
90% of both companies profits were
being generated by 20% of their clients.

58. B2B company stock increased
33% nine months after experiment.
Top 3 competitors stock increased 12%.
B2C company stock increased 58%
nine months after experiment. The top
3 competitors stock increased 15%.

59. Social Media Data at your finger tips

60. Segmentation at Speed of thought

61. WHERE
DO YOU
START?

62. “
If you keep on doing
what you've always
done, you'll keep on
getting what you've
always got.
W L Bateman

63. START
SMALL
THINK
BIG

64. DIFFERENT PERSPECTIVE

65. INTEGRATE
CEM, CRM and
Loyalty Management

66. MONTREAL

67. Claire

68. Phillip

69. The STM are Montreal's
transit provider - moving
more than 1.2M passengers
every day day through 250
bus lines and 68 subway
stations in the Montreal area.
2020/40%

70. Three million cards in
circulation, one-third
of which are used on
a daily basis.

71. “
“We want to untap the
potential of those Opus
cards and the potential
of this eco-system of
customers that take
public transit every day.”
Pierre Bourbonniere,
Director of Marketing

72. “
We wanted to reward our
customers on the spot, we
wanted to be able to surprise
and create excitement for our
customers, and we wanted to
generate loyalty to the STM.
Pierre Bourbonniere,
Director of Marketing

73. STM customers will
provide information
about their interests
and preferences for
activities

74. Retention program for customers

75. Click here for Story

76. Real-Time Real-Time Real-Time
Insight Interactions Execution

77. “
You’ve got to start with
the customer
experience and work
back toward the
technology.”
Steve Jobs

78. More
than roblema
The
P just
Points & Cards
Customer
Loyalty
is
Dead
–
Image
of
loyalty
cards
SYSTEMS
Text
“As
we
know
it”

79. Do you drive value at each touch point?

80. Do you understand your customers?

81. Are your customers hostages or
fanatical brand advocates?

82. I have the power
to drive
transformational
change

83. CEM Vision
Customer
Journey
Core team
Platforms Brand
Advocates

84. “
Do what you do so
well that they will want
to see it again and
bring their friends.
Walt Disney

85. VISIT our booth
© 2011 SAP AG. All rights reserved. Public 85

86. Thank You!
Feel free in connecting with me @
Nicholas.kontopoulos@sap.com
#nicholask71
http://cn.linkedin.com/in/nicholaskontopoulos
© 2011 SAP AG. All rights reserved. Public 86

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