Loyalty in the US is at a tipping point. With the number of companies entering the marketplace and competing for consumer attention skyrocketing, capturing consumer loyalty is not an option - it is essential to the survival of brands. In fact, according to eMarketer, the majority of US marketers intend to allocate more of their budgets to customer loyalty in 2017, with many anticipating significant increases in spending on loyalty. However, knowing how to spend your budget on loyalty is part in parcel to succeeding in the market place. Join Snipp and Loyalty360 as we examine the state of loyalty in 2017, bringing brands the information they need to ensure loyalty initiatives are focused, strategic, and ultimately, will win over consumers for the long term. In this webinar, you will learn: • Key trends for loyalty in 2017, such as the importance of “Lifestyle Loyalty” • Best practices for setting up winning programs. Want to know how to incorporate the Internet of Things into your own loyalty program? We’ve got you covered! • A specially developed model & framework developed by our industry leading loyalty consultants to keep you on track as you plan for and manage your loyalty initiatives

1. I WEBINAR
THE STATE OF LOYALTY
IN 2017

2. Carlos Dunlap-Beard
VP, Loyalty Solutions &
Business Development
Christian Hausammann
Global Director of Loyalty
TODAY’S PRESENTERS

3. ABOUT
We can take brands along the full
continuum from a single promotion to
an ongoing loyalty initiative.

4. AGENDA
TREND 1: EVOLUTION OF LOYALTY PLATFORMS
TREND 2: LIFESTYLE LOYALTY PROGRAMS
TREND 3: MACHINE LEARNING
TREND 4: B2B LOYALTY PROGRAMS
TAKEAWAY: LOYALTY STRATEGY FRAMEWORK

5. TREND 1:
EVOLUTION OF LOYALTY PLATFORMS

6. LOYALTY TECHNOLOGY OF THE PAST
UPC codes/ proof of
purchase
Codes on-pack Membership
cards
Reliance on tech
vendors for set up
Website only
access
Costly POS
integrations
Limited
rewards
4 2 9

7. Smartphones &
mobile
(e.g. Text-to-enroll)
Receipt
Processing
SaaS program
set up
Apps
Wearable
integrations
Digital
rewards
EVOLVED TECHNOLOGIES
Real-time
connectivity

8. TO APP OR NOT TO APP?
Quick to market
(and for consumers to engage
with)
Compatibility
Findability
Flexibility
Reach
Shareability
Location-based
messages
Audience
Good for gamification
No connection
requirementX
Unique data
Unique data
Ecommerce functionality
Pros of App-Free Pros of Apps

9. CASE STUDY: KELLOGG’S
Kellogg’s Family Rewards 1.0
• Consumers enter codes to earn points
and then redeem for rewards like high
value coupons, gift cards, sweepstakes,
merchandise
• A cross-Kellogg’s/ cross-category
platform that enables national
promotions as well as retailer-specific
promotions
Joins &
Buys
Product
Enters
Codes
Chance
to Win
$200
Collect
Bonus
Codes
Get
Emails
Check
Point
Balance
Redeem
Rewards
Tell
Friends
& Family
An ‘always-on’ points-based consumer loyalty program using unique code on-pack
technology to reward consumers

10. CASE STUDY: KELLOGG’S
“Pain Points” with code based programs
• Unique code-on-pack
• Cumbersome for users
• Code management and printing on pack complex and expensive
• Codes difficult to read
• Other missed opportunities
Enter Code
Submit
Congrats!
You have
100 points!

11. CASE STUDY: KELLOGG’S
The Solution:
• Improved purchase validation
• Full basket data capture
• Better user experience
• Enhanced mobile channel
• More promotion options
Receipt
Processing
Loyalty
Integration

12. TREND 2:
LIFESTYLE LOYALTY
PROGRAMS

13. WHAT LIFESTYLE FACTORS CAN BE
TARGETED/ACCESSED?
Demographics
Hobbies
Exercise Behaviors
Personal Health Information
Social Interactions
Physical Locations
Seasonal Migrations
All of these
factors allow for
engagement
beyond
transactions.

14. SMART DEVICES MAKE
LIFESTYLE LOYALTY POSSIBLE
Portals
MyFitnessPal
Rally
Wearables
Fitbit
Garmin
Smart Homes
Samsung SmartThings
Amazon’s Alexa
Google Home

15. LOCATION BASED MARKETING
Indoor
Navigation
Proximity
Marketing
Automatic
Check-in
Contactless
Payment

16. CASE STUDY: SUBWAY
The program not only provides a
method to drive loyalty, but it also
provides Subway with some
important analytics including: how
many people entered their store,
whether those are new customers
or repeats, the duration of time
customers spend within the store,
and the foot traffic outside the
store which isn’t coming in
Shuli Lowy, Marketing Director
at Ping Mobile, New York

17. VIRTUAL AND DIGITIZED
CONSUMER EXPERIENCES
There is an expected 2.5 million Virtual Reality (VR) units
to be sold in 2017, up 79% from 2016. VR hardware
revenue will be $660 million, up 43% from last year.
The VR market will be $80 billion in 2025 (up from $1
billion in 2016).

18. AUGMENTED REALITY CASE STUDY:
STARBUCKS & POKÉMON GO

19. TREND 3:
MACHINE LEARNING

20. 4 WAYS BUSINESSES ARE USING
MACHINE LEARNING
ENGAGING WITH CUSTOMERS IN MORE
MEANINGFUL WAYS
UNDERSTANDING CUSTOMER BEHAVIOR TO
PREDICT FUTURE ACTIONS
FINDING PRODUCTS FASTER
MAKING USER GENERATED CONTENT
VALUABLE

21. MACHINE LEARNING – KEY STEPS
CHOOSE A MACHINE LEARNING ALGORITHM
TRAIN, TEST AND RE-EVALUATE YOUR
MODEL
PREPARE AND TRANSFORM DATA
GATHER APPROPRIATE DATA

22. ARTIFICIAL INTELLIGENCE TO ENGAGE
CONSUMERS
74% of customers said that they had positive
experiences with AI in retail stores; in another question 65%
stated that they are not comfortable with a robot replacing a
human worker in stores.
57% said that they would happily exchange messages
with an ecommerce merchant's chatbot online.

23. CASE STUDIES: THE POWER OF DATA
AND PREDICTIVE ANALYTICS
• Furniture/Home Interior
Client
1) Predictive Analytics
• Department Store Client
2) Churn Prevention

24. TREND 4:
B2B LOYALTY PROGRAMS

25. BUSINESS CHANNELS ARE STILL CONSUMERS
Top Ten Predictions for B2B Loyalty Programs in 2017 from Motivforce
Augmented Reality enhances member experience.
Chatbots will drive engagement in loyalty programs.
Cognitive computing lives up to its analytical promise.
Get audio-visual with podcasting, live streaming and video.
Coalitions between brands will grow.
The return of sales incentives.
The mobile member experience will top the desk.
Data analytics will continue to rule.
Social loyalty and social selling will replace social marketing.
Channel programs will start to embrace the IoT.
%

26. B2B LOYALTY REQUIREMENTS
• Oversight
• Compliance
• Business benefits
& services
• Certification & training
• Regulatory control • Institutional vs individual
• Business only rewards, sales
rep rewards or
a combination
• Segmented earning,
rewards & benefits
by member type
Administrative
Control
Flexibility

27. Leading Plumbing OEM
Situation: Convert multiple legacy standalone
incentive programs into a single
Reseller/Distributor Sales Rep strategy that
leads to increased brand affinity, product
knowledge and sales to installers/ consumers
• Enrollment and participation far exceeded expectations
• Program broke even in under 10 months & achieved better than 200%
ROI in Year 2
• The program has continually evolved (website refresh, mobile app,
refreshed rewards, dynamic activities)
B2B BEST IN CLASS DESIGN EXAMPLE
Solution: Multi-channel, flexible program
that tailored to both the business overall and
the individual representative
Results

28. TAKEAWAY - LOYALTY STRATEGY FRAMEWORK
Strategy & Alignment
Marketing & Communications
IT & Integration
Establish stakeholder clarity,
alignment and consensus
around goals and priorities
Determine the best channel and
messaging options for awareness,
enrollment and activation
messaging
Determine the best and most efficient
manner of delivering a seamless
experience to program members
Achieve a common
understanding of financial
measures for the program
Development of a solution
framework that presents a
recommended strategic direction
for the loyalty program
Ensure a common understanding
and appropriate next steps
Finance & Insights
Program Design
Wrap Up & Next Steps

29. TAKEAWAY – LOYALTY PROGRAM DESIGN
EXAMPLE
• Existing email list
• Social channels
• Partners, conferences & events
• Company & program website
• Mobile: web, app & SMS
• Conferences & events
• Purchases
• Brand engagement: content consumption, referrals, social activity,
etc.
• Special promotions: LTO, bonus points, exclusive events
• Low, medium, high perceived value options
• Brand and program branded items
• Soft benefits that are only available to program members
Easy
Enrollment
+
Earning
Activities
Rewards &
Benefits
$
Gain
Awareness

30. LOOK OUT FOR OUR BEST PRACTICES
CHECKLIST!
 Easy CX
 Multichannel Approach
 “Don’t Eat The Elephant”
 And more….
Contact lets.talk@snipp.com to obtain
this resource

31. QUESTIONS ?
lets.talk@snipp.com
Carlos
Dunlap-Beard
Christian
Hausammann