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Lisa Watson Chairman, Direct Marketing Association of Singapore Regional Segment Manager, HP IPG APJ 02 February 2012
Best Practices in Loyalty Communications: Checklist for Success
Many Definitions of Loyalty
•Customer loyalty is the continued and regular patronage of a business in the face of alternative economic activities and competitive attempts to disrupt the relationship.
•Customer loyalty often results in other secondary benefits to the firm such as brand advocacy, direct referrals, and price insensitivity.
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Basic Laws of Loyalty
• Loyalty is both rational AND emotional
• Loyalty is the integration of behavior, satisfaction and attitude
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Effective Loyalty Programs Require Balance
Customer Equity
What the Customer Means to Us
What We Mean to the Customer
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Customer Equity =
The total lifetime value of the customer to your category
The RIGHT Customer The RIGHT Product The RIGHT Channel
The RIGHT Time The RIGHT Message
Mass Communication
VOLUME
Personalization & Customization
VALUE
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Personalization is Powerful!
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Rewards Should be Customized as Well Barclaycard Loyalty Program :
Best Customers
Other Customers
Basic Laws of Loyalty
• Loyalty is both rational AND emotional
• Loyalty is the integration of behavior, satisfaction and attitude
• Rewards do not buy loyalty
• Loyalty must be earned, ie we must be loyalty to customers as well
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Direct Mail
GOLD Personalization
GOLD
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Chevrolet Transformers 2 Press Invitation
ARC Worldwide
Malaysia
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Chevrolet Transformers 2 Press Invitation
•Chevrolet was one of many product placement sponsors of the blockbuster film Transformers 2
•Competition was fierce for ‘share of mind’ of publication editors so many auto brands held private premiere screenings
•Chevrolet decided to differentiate their invitation by leveraging an unusual form of personalization AND customization
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We want an invitation email…
zzzzzzzzzzzzzz
Chevrolet Transformers 2 Press Invitation
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Chevrolet Transformers 2 Press Invitation
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Chevrolet Transformers 2 Press Invitation
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Chevrolet Transformers 2 Press Invitation
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Chevrolet Transformers 2 Press Invitation
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Chevrolet Transformers 2 Press Invitation
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Basic Laws of Loyalty
• Loyalty is both rational AND emotional
• Loyalty is the integration of behavior, satisfaction and attitude
• Rewards do not buy loyalty
• Loyalty must be earned, ie we must be loyalty to customers as well
• Relationship efforts must recognize and reward the customer
• Loyalty is personal and individual
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Basic Laws of Loyalty
• Loyalty is both rational AND emotional
• Loyalty is the integration of behavior, satisfaction and attitude
• Rewards do not buy loyalty
• Loyalty must be earned, ie we must be loyalty to customers as well
• Relationship efforts must recognize and reward the customer
• Loyalty is personal and individual
• Not all customers are equal so neither is loyalty
• Loyalty is a journey not a destination
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Rewards
Loyalty/Retention Programs
Loyalty means building both rational & emotional bonds with a customer
to increase profitability & lifetime value
Products Voice Services
Customer Intelligence
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Lancome Uses a Survey to Gather Intelligence
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With A Great Questionnaire…
How is our in-store service?
What do you think
of the Club?
What’s your
skincare spending?
Demo-graphic update
Including Age &
Income!!!
AT FIRST
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HP DM & TP Activity Around the World • Latin America
– Brazil: BMK and ABN print TransPromo for Bradesco Bank, Printlaser - Brazil’s largest transactional printer
– Colombia: Computec - Colombia’s largest transactional printer
– Chile: Empresas Jordan – Chile’s largest transactional printer
• APJ
– Datam, New Zealand’s largest transactional printer (4x W7200)
– Blue Star, GEON in Australia
– BillPost, MiraeN in Korea
– JCS, Datapost in Singapore
• Europe
– Oniya Shapira, Israel: Prints transpromo statements for Visa Cal (5x W3250)
– Communisis, among UK’s largest direct mail and transactional printers
– DM & TP HPs with enterprises across Europe
• US
– Rider Dickerson
– The Ace Group
And More!
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Static 1 & 2c Simple mail merge & Over printed shells
Self mailer and Postcards with Light to
Moderate Color VDP
High end targeted campaigns and
catalogues
Cindy,
We will give you the book price for a trade-in on
Your old Mitsubishi and 20 payments on the rest
of the price.
Full TransPromo
Successful Loyalty Campaigns Depend on 5 Key Elements
Campaign Plan
Creative Data Production
& Distribution
Tracking
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Single Channel Multi-Channel
Mine
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SOLUTION
Consumers visited a Time-developed website and requested content based on their interests. The resulting publications were delivered with 4 pages of Lexus advertising
mine – A Customized Magazine from Time Inc. & Lexus
Lexus wanted to reach prospective customers cost-effectively and deliver relevant advertising messages in a compelling and personal environment
CHALLENGE
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Digital and Print Ads Drove Online Sign-Ups
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mine – A Customized Magazine from Time Inc. & Lexus
• Subscribers chose content from 5 of 8 magazines
• Content & advertising was customized using magazine choices, where they lived & answers to 4 questions
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mine – A Customized Magazine from Time Inc. & Lexus
• Subscribers chose content from 5 of 8 magazines
• Content & advertising was customized using magazine choices, where they lived & answers to 4 questions