I WEBINAR THE STATE OF LOYALTY IN 2017
I WEBINARTHE STATE OF
LOYALTY IN 2017
Carlos Dunlap-Beard
VP, Loyalty Solutions & Business
Development
Christian HausammannGlobal Director of
Loyalty
TODAY’S PRESENTERS
ABOUT
We can take brands along the full continuum from a single promotion to an ongoing loyalty initiative.
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
TREND 1: EVOLUTION OF LOYALTY PLATFORMS
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 integration
s
Limited rewards
429
Smartphones & mobile
(e.g. Text-to-enroll)
Receipt Processing
SaaS program set up
Apps
Wearable integration
s
Digital rewards
EVOLVED TECHNOLOGIES
Real-time connectivit
y
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
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
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!
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
TREND 2: LIFESTYLE LOYALTY PROGRAMS
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.
SMART DEVICES MAKE LIFESTYLE LOYALTY POSSIBLE
PortalsMyFitnessPal
Rally
WearablesFitbit
Garmin
Smart HomesSamsung
SmartThingsAmazon’s AlexaGoogle Home
LOCATION BASED MARKETING
Indoor Navigation
ProximityMarketing
Automatic Check-in
ContactlessPayment
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 inShuli Lowy, Marketing
Director at Ping Mobile, New York
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).
AUGMENTED REALITY CASE STUDY: STARBUCKS & POKÉMON GO
TREND 3: MACHINE LEARNING
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
MACHINE LEARNING – KEY STEPS
CHOOSE A MACHINE LEARNING ALGORITHM
TRAIN, TEST AND RE-EVALUATE YOUR MODEL
PREPARE AND TRANSFORM DATA
GATHER APPROPRIATE DATA
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.
CASE STUDIES: THE POWER OF DATA AND PREDICTIVE ANALYTICS
• Furniture/Home Interior Client
1) Predictive Analytics
• Department Store Client
2) Churn Prevention
TREND 4: B2B LOYALTY PROGRAMS
BUSINESS CHANNELS ARE STILL CONSUMERSTop 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.
%
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
Leading Plumbing OEMSituation: 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 representativeResults
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
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 Enrollmen
t+
Earning Activities
Rewards &
Benefits$
Gain Awarenes
s
LOOK OUT FOR OUR BEST PRACTICES CHECKLIST!
Easy CX Multichannel Approach “Don’t Eat The
Elephant” And more….Contact [email protected] to obtain this resource