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Levering on partnerships and cost optimisation in loyalty programmes …& not only Direct Marketing Days 2011
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Agenda
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],InPost – challengers from Poland 2011
Less mail is being sent Social mail Transactional mail Direct Mail Parcels
To deliver the revenue we all need to  optimise loyalty programs’ concepts + 100 000 - 75 000 A cquisition C hurn Fill holes – remove reasons  for leaving CLM - life time value Build loyalty – provide  Incentives for staying Rationalise costs of retention Optimise payback on existing tools Source: Mobile Operator from EU, 2010 Involve partners to finance your efforts
Well known wonder  of loyalty programs ,[object Object],[object Object],[object Object]
P oints scheme: cost-efficient reward Leverage of Points  Example: Customer perceives 5% discount through the program, while actual cost of the discount  is not even 25% of that! 1000 Euro Real cost of award is 1.2% Points programs are cost-effective customer incentives through the leverage that they offer. In many cases,  cost of the incentive is only 25%  of the Perceived Value of Discount (PVD). PVD = 5%
WIN ON SOMEONES  ELSE FIGHT
Let others pay for building loyalty to  your brand
Tesco financies the program through its partners
[object Object],relevence ,  response ,  revenue
How much you need to spend to invite the customer to dance with you? Customer Profile Status:  Registered with T op  U p  D irect Segment:  High value Gold & Platinum customers Tested:  Va rying am oun ts to increase TUD usage the use of emotional bonding messages Top up  by 20  € Top up  by 20  € Top up  by 10  € and get: Source: test campaign resutls executed in Western European mobile operator in 2009 Thank You  Message  Included response 10% back 31% 20% back 35% 50% back 39% 41% 52% 65% NO  Thank You Message response 10% back 30% 20% back 49% 50% back 33% 60% 63% 60% Top up  by 20  € and get: 10 20
[object Object]
Perfect service for building extended loyalty EasyPack ,[object Object],[object Object],[object Object],[object Object],[object Object]
420  machines in Poland ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Size Number of boxes Max dimensions (in cm) Size  A 32 8 x 38 x 64  c m Size  B 32 19 x 38 x 64  c m Size  C 12 41 x 38 x 64  cm
easyPack  will be available  in Ukraine from August 2011 ,[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Increasing role of e-, m- and f-commerce Source: IMR World, Socialbakers.com, Asia-Pacific Technographics Survey
30% of revenues  to come  from non-mail Hybrid Mail E-invoicing and Mobile Payments MVNO – free access to internet via phone easyPack 24/7 E-shops on Facebook
81% conversion rate The best member get member concept in social media ,[object Object],[object Object],[object Object],[object Object],[object Object]
Paczkobranie – „Parcel-rooming” ,[object Object],[object Object],[object Object],[object Object]
~ 200.000 fans on Facebook ,[object Object],[object Object],Best social media campaign in 2010  in Poland Start 299 fans End of 11th edition 184 515 fans
„ Parcel-rooming” – engaging partners
700% growth of Easypack delivery  –  over 600 participants ,[object Object],Communication channels of sms competition: On-line activities: banners + subpage E-mailings Posts and graphics on facebook.pl E-mailing statistics: Database    75 245 Unique opens    9685 – 13% Unique click     1808 –  2,5 % Results: Over 600 participants received a special gift-device
Fanbook  – discount offers from partners ,[object Object],[object Object]
Reference LIVE  – use business partners to promote your service
EasyPack for AVON  –  3 months after roll out statistics
We are the only operator in the world that offers that service! View2surf technology We can push away  cost of building loyalty from your company!
Free minutes for shopping ,[object Object],[object Object],[object Object],[object Object],An innovative   loyalty tool
Ads co-financed by the suppliers Full-screen ads
[object Object],[object Object],[object Object],[object Object],Constant customer   contact
Results The results are based on „free minutes for shopping” model and v2s advertising ,[object Object],[object Object],[object Object],[object Object]
Additional effects ,[object Object],[object Object],[object Object]
Benefits of  Better Customer Management Target Market  Segmentation Mass Market  Mass Customize Micro-Marketing Channel  Optimized 51% 76% 49% 36% 60% 45% 39% 45% 37% Return on Marketing Investment Customer Retention Rate Customer Acqusition Rate Multi Channel Optimized Rules-based Campaign  Execution Spread-sheet  Data-marts CRM/SFA Front/Back Integration Business Intelligence Real-time Integration Percent Co’s Reporting > 15% Performance by Benchmark Grouping Technology Enablers Lagging Norm Best in Class Source: Aberdeen Group, US Market 2009
Thank you for your attention
Benchmarks and experiences with results  of points programs throughout Europe. Results ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object]
Rewards and benefits in Loyalty Program Bulid based on the best practices RATIONAL SURFACE (customer) EMOTIONAL SURFACE (customer) TA C T IC GOALS STRATEGIC GOALS
Rewards and benefits sheme First parcel sent bonus Early pick up bonus (>6h) Birthday sms greetings Member-gets-member bonus Birthday email bonus Suprise&delight competitions 5th order bonus Welcome bonus for joining RATIONAL SURFACE (customer) EMOTIONAL  SURFACE (customer) TA C T IC GOALS STRATEGIC GOALS 2
Own partner marketing tools using program as ‘support’ Targeted Nowak family Newsletter Tracking response ROI Reporting OBJECTIVE Promote new Neostrada package TIMING Jan-Mar OFFER Free Installation 500 Bonus points TARGET Families with children having high dial-up volume. X-sell OBJECTIVE Retain churn-sensitive Customers TIMING Ongoing OFFER Renew your contract and get 500 Bonus points TARGET High value customer that are 2 months before end of contract. Retention OBJECTIVE Win customers for new store TIMING May OFFER Double points during May opening month TARGET All members living within 5 km from new store location. Acquisition OBJECTIVE Win back lapsers TIMING Ongoing OFFER Free oil change on your first (re-)visit to BP + survey WHY? TARGET All members who had high freq. & value for BP, but have not visited BP for more than 3 months Win-back recency frequency monetary value OBJECTIVE Increase life insurance premiums TIMING Jul OFFER Triple points on increase in  life insurance premiums TARGET High income, middle aged existing policy holders with low/avg  current premiums Upsell income Age policy value OBJECTIVE Promote internet banking TIMING Sept OFFER 250 points for switching to  internet banking TARGET Existing  Lukas  customers who do not use internet banking yet but have Neostrada Steer behavior Lukas  customers Neostrada users recency frequency monetary value Communication preferences Value Profile History … PROGRAM COMMUNICATION CALENDAR PROGRAM TOOLS Points Promo Coupons Events ALL ,[object Object],[object Object],[object Object],[object Object],Partner Business objectives Win back Retention Acquisition Cross-sell Up-sell Create needs Educate

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Эффективное партнерство и оптимизация затрат в программах лояльности

  • 1. Levering on partnerships and cost optimisation in loyalty programmes …& not only Direct Marketing Days 2011
  • 2.
  • 3.
  • 4. Less mail is being sent Social mail Transactional mail Direct Mail Parcels
  • 5. To deliver the revenue we all need to optimise loyalty programs’ concepts + 100 000 - 75 000 A cquisition C hurn Fill holes – remove reasons for leaving CLM - life time value Build loyalty – provide Incentives for staying Rationalise costs of retention Optimise payback on existing tools Source: Mobile Operator from EU, 2010 Involve partners to finance your efforts
  • 6.
  • 7. P oints scheme: cost-efficient reward Leverage of Points Example: Customer perceives 5% discount through the program, while actual cost of the discount is not even 25% of that! 1000 Euro Real cost of award is 1.2% Points programs are cost-effective customer incentives through the leverage that they offer. In many cases, cost of the incentive is only 25% of the Perceived Value of Discount (PVD). PVD = 5%
  • 8. WIN ON SOMEONES ELSE FIGHT
  • 9. Let others pay for building loyalty to your brand
  • 10. Tesco financies the program through its partners
  • 11.
  • 12. How much you need to spend to invite the customer to dance with you? Customer Profile Status: Registered with T op U p D irect Segment: High value Gold & Platinum customers Tested: Va rying am oun ts to increase TUD usage the use of emotional bonding messages Top up by 20 € Top up by 20 € Top up by 10 € and get: Source: test campaign resutls executed in Western European mobile operator in 2009 Thank You Message Included response 10% back 31% 20% back 35% 50% back 39% 41% 52% 65% NO Thank You Message response 10% back 30% 20% back 49% 50% back 33% 60% 63% 60% Top up by 20 € and get: 10 20
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18. 30% of revenues to come from non-mail Hybrid Mail E-invoicing and Mobile Payments MVNO – free access to internet via phone easyPack 24/7 E-shops on Facebook
  • 19.
  • 20.
  • 21.
  • 22. „ Parcel-rooming” – engaging partners
  • 23.
  • 24.
  • 25. Reference LIVE – use business partners to promote your service
  • 26. EasyPack for AVON – 3 months after roll out statistics
  • 27. We are the only operator in the world that offers that service! View2surf technology We can push away cost of building loyalty from your company!
  • 28.
  • 29. Ads co-financed by the suppliers Full-screen ads
  • 30.
  • 31.
  • 32.
  • 33. Benefits of Better Customer Management Target Market Segmentation Mass Market Mass Customize Micro-Marketing Channel Optimized 51% 76% 49% 36% 60% 45% 39% 45% 37% Return on Marketing Investment Customer Retention Rate Customer Acqusition Rate Multi Channel Optimized Rules-based Campaign Execution Spread-sheet Data-marts CRM/SFA Front/Back Integration Business Intelligence Real-time Integration Percent Co’s Reporting > 15% Performance by Benchmark Grouping Technology Enablers Lagging Norm Best in Class Source: Aberdeen Group, US Market 2009
  • 34. Thank you for your attention
  • 35.
  • 36.
  • 37. Rewards and benefits in Loyalty Program Bulid based on the best practices RATIONAL SURFACE (customer) EMOTIONAL SURFACE (customer) TA C T IC GOALS STRATEGIC GOALS
  • 38. Rewards and benefits sheme First parcel sent bonus Early pick up bonus (>6h) Birthday sms greetings Member-gets-member bonus Birthday email bonus Suprise&delight competitions 5th order bonus Welcome bonus for joining RATIONAL SURFACE (customer) EMOTIONAL SURFACE (customer) TA C T IC GOALS STRATEGIC GOALS 2
  • 39.

Notes de l'éditeur

  1. Wszyscy na rynku zmagamy się z wyzwaniem utrzymania klienta. Możemy to osiągać poprzez innowację ale również poprzez optymalizację kosztów I wykorzystanie realacji z partnerami biznesowymi. CLM – customer lifecycle management
  2. Optymalizację tą kilkanaście lat temu dały nam punktowe programy lojalnościowe (poits based loytaly prgrams) Dzięki tak zwanej postrzeganej wartości upustu. Klient sądzi więc, ze to co mu ofiarujemy w konkretnej nagrodzie jest warte wiecej niż naprawdę. To tak jak z tym pawiem ;-)
  3. Lets imagine that the customer has purchased products or services from your company for amount of 1000 Euro (animacja) For each euro he got one point in loyalty program. (anim) For which he decided to recharge his mobile with 50 euro. (anim) What customer thinks he got is 5% perceived value of discount. (anim) The truth is that this 50 euro costs your company about 20 euro. (anim) The other beauty of points based loyalty programs is that not all the points are usually used (redeemed) by customers. And their expire. In single brand programs the level could be as low as 60%. (anim) And finally we end up with real cost of award at level of 12 eruo with equals 1,2% of that what customer has spent. Tu przykład postrzeganej wartościu upustu na przykładzie doładowania prepaid jako nagrody w programi loj. Operatora komórkowego. Myślimy że dostaje klient 5% a tak naprawdę tylko 1,2%
  4. What other tools the companies running loytaly programs are using to push costs away? They involve sector competitors. Lets imagine coca-cola trying to win Pepsi drinkers. All they need is data who is actualy drinking Pepsi. But without sofisticated loyalty program we do not know who bought Pepsi in ... Lets say Tesco few moments ago. That’s how Tesco and ist loyalty program clubcard is making coca-cola pay the costs of awards to its members. Kolejnym krokiem jest stosowany już na masową skalę model wykorzystywania walki konkurentów w danych sektorach rynku by budować na tym lojalnośc np. wobec sieci supermarketów.
  5. Na tych zasadach działa właśnie Tesco ClubCard jeden z najelpszych porgramów loj. Na świecie. Kupony rabatowe opierają się często na oferowaniu produktu konkurencyjnego do tego który faktycznie kupuje klient. Tak właśnie Pepsi finansuje Tesco by odbierać klientów Coca_coli. With dedicated, fully personalised loyalty program statements, which are being sent every 3 months to its customer, Tesco is able to reach additional sales uplift from 2% upto 5% after each mailing. Those cupons can attract pespi drinkers to try coca-cola...
  6. Dzięki wprowadzeniu programu tesco przebiło największego konkurenta na rynku brytyjskim. Był jednak krótki moment zachwiania ich pozycji. To czerwiec 1995 kiedy to konkurent wprowadził na rynek swój program. Jednak szybko utracił przewagę gdyż nie umieli tak dobrze targetować ofert w oparciu o koszyk zakupowy klienta.
  7. Bo punktem wyjścia w modelu musi być zawsze opieranie się na faktycznych potrzebach klientów. Tylko one, dzięki głębokiemu targetowaniu dynamicznemu, mogą przynieść zyski!
  8. To lepjej jeśli wyjaśnię osobiście telefonicznie. Lub usunie Pan ten slajd jeśli stwierdzi Pan, że czasu jest zbyt mało po dodaniu inMobile’a Możemy również optymalizować na poziomie benefitów oferowanych klientom w zamian za konkretne zachowania. W tym wypadku zaprezentuję porównanie jak zmienia się poziom akceptacji oferty na doładowanie telefonu prepaid w zależności od wartości darmowego doładowania.
  9. Czy można bardziej zoptymalizować koszty?
  10. Kolejnym krokiem do optymalizacji moga być właśnie EasyPack.
  11. Kolejnym krokiem do optymalizacji moga być właśnie EasyPack.
  12. Jakie rezultaty może dać dalsza optymalizacja na poziomie wiedzy o kliencie? Each of us has reached different level of customer data collection (data gathering) and we have different tools to use that data. Most of companies are at the level of CRM and SFA (sales force autoimmunization). What benefits may give further Customer Management development you your companies has proven Aberdeen Group in 2009. The best in class companies reach 76% better customer retention.
  13. Również w ramach EasyPack dysponujemy narzędziami budującymi lojalność.
  14. Narzędzia lojalnościowe segmentujemy z perspektywy firmy (cele strategiczne i taktyczne) oraz klienta (racjonalne, i emocjonalne)
  15. Oto przykładowe narzędzia stosowane przez nas do zwiększania częstotliwości zamówień przez EasyPack.
  16. Kolejnym sposobem w większaniu efektywności stały się multipartnerskie programy lojalnościowe. Zbiorcza wiedza z różnych branż daje jeszcze lepsze efekty w targetowaniu ofert.