RBTE 2014 - Throwing off Sparks - Reigniting Retail Loyalty

THROWING OFF SPARKS

Reigniting Retail Loyalty Programs

Mark SageLoyalty Solutions & Strategy Director EMEA

@sagema #sparks

Proprietary & Confidential. © 2013 Aimia. All Rights Reserved.

• 4000 people, 20 countries, publicly listed company

• 75 years experience, with specialism in retail, CPG, travel, banking

• We run programs for ourselves as well as some of the world’s biggest brands.

• Our Aeroplan and Nectar coalition programs are benchmarks for loyalty programs worldwide

AIMIA GLOBALLY THE LARGEST PURE PLAY LOYALTY COMPANY

Our Programs:

Our Key Clients:

LOYATLY IS UBIQUTOUS… BUT HAS IT PLATEAUED

Nielsen / Accenture 2013 Pulse Survey

60% said loyalty programs are

available where they shopped

84% said more likely to visit

those retailers

Customer satisfaction fell

by 1%

Rate of loyalty rose by just 1%

Customers willingness to

recommend rose by just 2%

Proprietary & Confidential. © 2013 Aimia. All Rights Reserved.

WHAT IS LOYALTY MARKETING?

A strategic approach to marketing, in which a company focuses on acquiring, growing and

retaining identifiable customers through repeated, measurable interactions

Proprietary & Confidential. © 2013 Aimia. All Rights Reserved. 5

Loyalty used to be a slow burn,

building a stronger relationship one

purchase at a time

Proprietary & Confidential. © 2013 Aimia. All Rights Reserved. 6

Now there is an explosion of

customer interactions from the very start of a

relationship

THROWING OFF SPARKS

BEYOND THE TRANSACTION

LOOKING BEYOND THE TRANSACTION

Is this the whole story?

LOOKING BEYOND THE TRANSACTION

Overlaying loyalty data provides a different view

THE PURCHASE IS ONLY PART OF THE JOURNEY

How did she find

the offer?

Did she like the

product?#butter

Do her friends like

the product?

Did she search for recipes?

Does she “like” the

brand?

What did she make?

Is she still buying it?

THE PURCHASE IS ONLY PART OF THE JOURNEY

How did she find

the offer?

Did she like the

product?#butter

Do her friends like

the product?

Did she search for recipes?

Does she “like” the

brand?

What did she make?

Is she still buying it?

LOYALTY HAS TRADITIONALLY FOCUSED ON ONE INTERACTION

IT’S ABOUT EVERY TOUCH POINT BEING RELEVANT TO THE CUSTOMER.

NOW IT’S ABOUT EVERY INTERACTION

Loyalty is changing as it now means Pre Purchase, Purchase and Usage.

LOYALTY, INTERACTIONS AND SHOWROOMING

21%

Consumers are M-shoppers, using

their mobile in-store to assist their

decisions

55%

Consumers will sign-up to a store loyalty program to

gain in-store benefits on their

smartphone

60%

More likely to buy a product while in-store when they

find online reviews on their

smartphone

31%

Interested in interacting with a store on social networks like

Facebook

Aimia / Columbia University

BENEFITS OF ADDING INTERACTION DATA

Creates new revenue streams

Drives incremental

revenue

Leverages & validates

investment in new channels

Lowers cost to serve, while

increasing value

REIGNITING LOYALTY

MOTIVATING CONSUMERS TO SHARE

MOTIVATING CONSUMERS TO SHARE

1 Create Customer Utility & Relevance

CONSUMERS WANT EVERY TOUCH POINT TO BE USEFUL, RELEVANT AND SEAMLESS – IN SHORT, FRICTION FREE

http://www.dotrising.com/2014/03/03/brands-must-engage-on-twitterhttp://www.conecomm.com/facebook-makes-it-easier-for-users-to-unlike-you/

58%

Consumers will stop following a brand who over-communicates

(Cone Consumer) 53%

Consumers will stop following a

brand where content is irrelevant

(Cone Consumer)

15%

Twitter followers lost in first 3 weeks if not engaged with

early(dotrising)

BRANDS STILL AREN’T GETTING IT RIGHT

19Presentation Title

BUT ONLY BUT ONLY

ANDAND

12%

86%

46%

28%

10%

44%

Aimia, Four Futures

REWARDING INTERACTIONS - SUSTAINABLY

All Searches

Paid Search Clicks

Revenue

MOTIVATING CONSUMERS TO SHARE INTERACTIONS

2 Build Trust through Transparency

CONSUMERS UNDERSTAND THE VALUE OF THEIR DATA

Aimia, Four Futures

HOW HAPPY ARE YOU FOR COMPANIES TO USE INFORMATION ABOUT YOU IN THE FOLLOWING WAYS?

TRANSPARENCY & PERMISSION ARE KEY

23Presentation Title

CONSUMERS DO TRUST SOME MORE THAN OTHERS

24Presentation Title

REWARDS

Percentage of consumers who say messages from this source are usually relevant

25

CUSTOMER ENGAGEMENT THROUGH TRANSPARENCY

INTERACTING SOCIALLY IS BASED ON TRUST

Control TrustAdded Value

Customers have information on what is collected, from where and for what purpose

Customers understand there is a value

exchange through recognition, rewards

and offers

Comes from confidence that data is held

securely and used in mutually agreed way

Transparency

Customers have control over what they provide, how it is used and how

it is shared

MOTIVATING CONSUMERS TO SHARE INTERACTIONS

3 Reinforce through Recognition

Utility, Relevance and Trust enables us to see more

interactions but

To recognize every check-in, product review, “like” or social

interaction, we need a different way to reward people.

HELP ME BELONG

SOCIAL CURRENCY

MAKE ME FEEL SPECIAL

ESTABLISHING RELATIONSHIPS IS INCREASINGLY ABOUT CREATING SOCIAL CURRENCY

RECOGNITION REWARDS CHANGE THE RELATIONSHIP WITH MEMBERS

30

FRIENDS

RELATIONSHIP

COMPANY

TRANSACTION

MONEY

PIZZA

THE JOURNEY IS SOCIALP

roje

cted

Rev

enue

Aimia, Four Futures

CONCLUSION

Create Customer Utility &

Relevance

Build Trust through

Transparency

Reinforce sharing through

Recognition

Three powerful pillars you can build to use interaction data and create customer intimacy and long-term loyalty

Reigniting retail loyalty involves capturing the sparks that customers throw off

THANK YOU

Mark SageLoyalty Solutions &

Strategy Director EMEA

@sagema

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