Value-led Loyalty - Loyalty as an Outcome - Nicholas Sadlier, Epsilon

KEYNOTE
SINGAPORE ~ SEPTEMBER 15 - 16, 2022
DIGIMARCONSOUTHEASTASIA.COM | #DigiMarConSoutheastAsia
DIGIMARCONSINGAPORE.SG | #DigiMarConSingapore
Nicholas Sadlier
DIRECTOR, DIGITAL SOLUTIONS APAC, MEA
EPSILON
Value-led Loyalty
- Loyalty as an Outcome

2 © 2021 Epsilon Data Management, LLC. All rights reserved. Proprietary and confidential.
All names and logos are trademarks or registered trademarks of their respective owners.
LOYALTY
Programs are ubiquitous
What’s the role of Loyalty?
And whose doing it well?

3
THE MARKETING
INDUSTRY IS AT AN
INFLECTION POINT
BRANDS: MARKETING GOALS
Drive Growth
Reduce costs
Partner wisely
Prove performance
CONSUMERS: RISING
EXPECTATIONS
Hyper-connected
Convenience with quality
Want to be recognized,
respected & protected
LANDSCAPE: INCREASINGLY
DIFFICULT
Media fragmentation
‘Partners’ conflicting interest
Tech stack under-delivery
Incomplete customer views
Emerging privacy laws

4
THE IDEAL STATE: MARKTING NIRVANA
Create one 360⁰ view of each consumer by unifying all your data on experiential and transactional
touchpoints with the consumer
Leverage that data to create emotional connection through marketing strategy and execution across all
channels
EXPERIENTIAL &
TRANSACTIONAL
DATA
MARKETING
CHANNELS
=
PERSONALIZED EXPERIENCES

5
BRANDS ARE RESPONDING
Personalizing
consumer
experiences
Modernizing and
automating
infrastructure
Seamlessly blend
physical and digital
experiences
Re-distribute labor for
higher value
generation
Removing waste
from core
operations
Centralizing data
& core function

TRADITIONAL VS. VALUE-LED LOYALTY
champion

LOYALTY PREDICTS,
DRIVES AND MEASURES
CX

Angela
New loyalty member
National Campaign
Ad
Offer Journey:
Website Sign up
In Venue Offer
Redemption
Personalization:
Welcome Offer
Dynamic
Segmentation
Dynamic Segmentation
RFM, FLV, SKUs
Post Purchase Email
with bounce back offer
Re-Engagement with
Dynamic Content
Event: App Download
Personalized Offer:
Mobile Scratch Off
Repeat
Purchase
Time to Repeat
Purchase(s)
Products Purchased
Dynamic
Segmentation
Ecom Offer
Redemption
Products Purchased
Click to Claim SKU
Based Offer
NAVIGATING THE CUSTOMER JOURNEY
KEY
Data Capture
Interaction

CULTIVATING CUSTOMER RELATIONSHIPS HAS NEVER BEEN MORE
IMPORTANT OR COMPLICATED…
Loyalty members can spend
up to 3X more than non-
members
3X
Of customers say they
switched loyalty programs to
a competitor who better met
their needs
50%
Consumers belong to nearly
15 loyalty programs on
average
15 Adding 5% more loyalty
customers can increase profit
15-20%
5%

THE ROLE OF LOYALTY

THE ROLE OF LOYALTY IS
TO…
Motivate customer
behavior change
in order to increase…
FREQUENCY SPEND
&
&
DELTA

13
GOAL GRADIENT EFFECT

14
LOYALTY PROGRAM VALUE PROPOSITION TYPES
• “Woo hoo, you earned a free coffee”
• ”Choose your birthday free gift”
SURPRISE & DELIGHT
Members receive value with
surprise and delight rewards, like
free items or services.
• Pay $100 annual fee and receive 25% off
regular price purchases
• Pay $99 annually and receive free 2-day
shipping and more
PAID MEMBERSHIP
Members receive value
once enrolled, aka “pay to
play” program.
THRESHOLD
Members receive rewards at
specific behavior thresholds, like
spend, visits or frequency.
• Spend $500 and get $25 in rewards
• Earn 1 point per $1

THE IDEAL LOYALTY VALUE
PROPOSITION IS A BLEND
THE RATIONAL VALUE
I get my money’s
worth!
Compelling
HARD benefits
• Economic
• Tangible (merchandise)
• Promotional currency
• Instant rewards
• Promotional offers
• Gamification
• Point gifting / donating
THE EMOTIONAL VALUE
They know I’m
important!
Compelling
SOFT benefits
• Status (tier / level)
• Appreciation/recognition
• Early access
• Special privilege
• Services
• Experiences
• Exclusive content
IDEAL
VALUE PROPOSITION

16
INTEGRATED PLATFORM
Requires a powerful, reliable and scalable
cloud-based platform, flexible enough to
integrate with complex ecosystem
REAL-TIME REWARDS
Recognize and reward customer behavior the
moment they take action with real-time rewards
earning and redemption
ENGAGING MOMENTS
Engage with customers in the moments that matter
most with behavior-driven, offers, engagement and
gamification experiences
TO ENABLE A 1:1 LOYALTY JOURNEY FOR EVERY CUSTOMER
SELF-SERVE INTERFACE
Easy to use self-serve interface to manage your
program, marketing and members
INTERACTIVE DASHBOARDS
Stay on top of your program’s performance with details
at-a-glance KPI metrics dashboard
ROBUST REPORTING
Comprehensive library of user-friendly standard
reports with flexible, ad-hoc design
MACHINE LEARNING & INSIGHTS
Use your data the right way with machine learning,
artificial intelligence and predictive analytics
CONNECTED
EXPERIENCES
Seamless integration of data, multichannel
marketing and digital media services
DIGITAL FOCUS
Make it easy for members to manage their account
with a branded program website and mobile app

17
CREATING AN AUTONOMOUS FEEDBACK LOOP
Customer
Engagement

19
Key Factors Drivers Great Examples
1. Drives interaction
- Rewards that resonate
- Customer centric
- Ease of use
- Coalition & partner
programs
2. Digital Optimization
- Seamless omnichannel
- Easy UI/UX
- Single sign on
- Real time
- Payments
3. Innovation
- Metaverse / Blockchain
- Virtual assistants, AR
- Machine Learning, AI
- Gamification
- Biometrics
4. Emotional connection
- Aspirational
- Hyper-personalization
- CSR
- Brand synergy

20
- REALIZATION OF TRUE HYPER-PERSONALIZATION
- SYMBIOSIS OF ADTECH & MARTECH
- ‘REAL’ OMNICHANNEL
- METAVERSE REVOLUTION
- CUSTOMER IDENTIFICATION
- INTEROPERABLE PAYMENTS

THANK YOU
FORRESTER RANKS EPSILON:
LEADER EMAIL SERVICE PROVIDER (TECHNOLOGY & SERVICES)
LEADER LOYALTY SERVICE PROVIDERS
LEADER LOYALTY TECHNOLOGY PLATFORMS
LEADER CUSTOMER DATABASE & ENGAGEMENT AGENCIES
LEADER IDENTITY RESOLUTION
NICK SADLIER
Director, Digital Solutions
Epsilon, APAC & MEA
nicholas.sadlier@epsilon.com
+65 81687554

Value-led Loyalty - Loyalty as an Outcome - Nicholas Sadlier, Epsilon

Value-led Loyalty - Loyalty as an Outcome - Nicholas Sadlier, Epsilon

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Value-led Loyalty - Loyalty as an Outcome - Nicholas Sadlier, Epsilon