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5 ways to Manage & Enhance Customer Loyalty
About Us – CitiXsys Technologies
• Business Drivers– Products for SAP® Business One in Retail,
Warehousing, Distribution
– Largest SAP® Business One Services Partner in the world
– Installation, Implementation, Integration and Customization Services
– Strategic Partner for SAP Ecosystem Opportunities
• Operating Locations in US, Canada, UK, Australia and India
• Global Employee Count: 225+• 700 seat R & D and Support Center in India
Agenda & Introduction
5 ways to Manage & Enhance Customer Loyalty– Our Experience as a consumer– Why is it so important?– Loyalty Defined– How best to Manage it?– Can it be enhanced?
• A case in point – iVend Loyalty
Where do we experience it?
• North America alone has over 1.2 billion+ loyalty programs underway at any point
• Every house hold is typically a member of over 6 loyalty programs• Loyalty Programs have traditionally been offered by
– Airlines– Credit Card Companies– Grocery Stores– Restaurants
• There are all sorts of loyalty programs– Bill Value based– Quantity based– Promotional (Buy some get some)– Many more….
Why is it so important?
• 68% of customers are lost due to indifference. Indifferent customers are a result of pure neglect - Michael LeBoeuf, Ph.D., author of How to Win Customers and Keep them for Life
• You can increase profits by as much as 95% through increasing retention by as little as 5% - Bain & Company
• It is far too expensive (over 7 times) to acquire a new customer as against getting repeat business from an existing one
• Loyal customers are your best marketers
Indifference
Satisfaction
Loyalty
Evangelism
What is it Anyway?
• Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal buying behavior which is potentially of benefit to the firm – Wikipedia
• They help better understand and monitor customer preferences and buying patterns and in turn reward the preferences
• Loyalty is NOT about Points and redemption• Loyalty is about Relationships and their Longevity
What is it Anyway?
• Its about getting more customers to– Buy more– More Frequently
• A business tool to increase revenue by– Building customer relationships– Targeted promotions and rewards
• They increase– Recency– Frequency– Purchase Dollars
Customer Value
Recency
Frequency
Purchase Dollars
How to Manage them?
• Strategize business goals– What do we want to achieve from the program
• Increased traffic and sales • Increased referrals
– How to structure the program• Lower MRP• Increased service offerings
• Identify target segment– Demographics based
• Buying seasons vary from region to region• Certain products are more popular in a particular region
– Product or Service based• Promote a new product• Increase sales of the best selling product
• Keep Loyalty Programs simple – to execute and to understand
• Collect the bottle caps• Complete the combination• Logon to get a secret code• Qualify for the sweepstakes• Thank you for being loyal…!!!
How to Manage them?
• Start with simple courtesies– Thank your customers for their business
• Make realistic promises– Don’t kill the goose
• Stay connected– With new and past customers
• Share information– Send industry specific pertinent information to your customer
• Give Referrals– Refer your customers and give them business wherever possible –let them
know that you referred them.• Think Ahead
– Know your customers business and needs. Anticipate their needs. Answer the question before it is asked
How to enhance Customer Loyalty
• Keep up with Marketing Trends– Its more about enhancing experience than just
points and their redemption• Identify and monitor your best customers
– Collate data, analyze spending patterns• Customers spend more in North America than their
counterparts in Asia
How to enhance Customer Loyalty
• Create brand recognition– Be present at the right place and not All places
• Get regular feedback from customers– Leverage Social Media
• Make it easy for customers to provide feedback
• Act upon the feedback– Its no good if you only listen and don’t act
Case in point – iVend Loyalty
• A platform seamlessly integrated with iVend Retail• Out of the box configuration
– Default Setup– Personalization (for unique web presence)
• Dual modes of operation– Online as well as offline
• Integration and Support– Web Service Support– Integration with SAP
Case in point – iVend Loyalty
• Usability and Design– Wizard Based Setup– Intuitive User Interface– Exception Management and
User Help
• Multiple Registration Modes– Customer ID:– Loyalty Card or:– Loyalty Card Attached to a
Customer ID
Case in point – iVend Loyalty
• User Defined Themes e.g. Bronze, Silver and Gold• Points-to-Currency conversion ratio for each slab• Redemption percentage against an invoiced
amount for each slab• Threshold limits and rules for upgrade to the next
slab or downgrade to a slab below• Current and Fallback based redemption methods
• Points Management• Points Journal • Loyalty Point Aging • Flexible mechanism of upgrading or downgrading
the status of a customer
Summary:Why is it so important?
• 68% of customers are lost due to indifference. Indifferent customers are a result of pure neglect - Michael LeBoeuf, Ph.D., author of How to Win Customers and Keep them for Life
• You can increase profits by as much as 95% through increasing retention by as little as 5% - Bain & Company
• It is far too expensive (over 7 times) to acquire a new customer as against getting repeat business from an existing one
• Loyal customers are your best marketers
Indifference
Satisfaction
Loyalty
Evangelism
Contact Us
USA - CitiXsys Americas Inc New YorkRockefeller Center7th floor, 1230 Avenue of the Americas New York NY 10020 USAT: 1 212 745 1365 F: 1 646 349 3441 E: [email protected]
New Hampshire264 South River Road, #474Bedford NH 03110USA T: 1 603 232 8252 F: 1 646 390 1988E: [email protected]
Chicago22nd Floor, The Merc, West Loop30 South Wacker DriveChicago, IL 60606USAT: 1 630 359 5956F: 1 630 697 1315E: [email protected]
ChicagoCantera Center 4320 Winfield Road, Suite 200Warrenville, Chicago, IL 60555USAT: 1 630 836 8528 F: 1 630 836 8010 E: [email protected]
Canada – Toronto CitiXsys Canada Inc 8th Floor, 2425 Matheson Blvd. East Mississauga, ON L4W 5K4 Canada T:1 905 361 2886 F:1 905 361 6401 E: [email protected]
EMEA - London CitiXsys UK Ltd Lakeside House, 1 Furzeground Way Stockley Park, Uxbridge UB11 1BD United Kingdom T: 44 0 208 622 3006 F: 44 0 845 280 8848 E: [email protected]
India - New DelhiCitiXsys Technologies Pvt Ltd A-24/5, MCIE, Mathura Road New Delhi 110044 India T: 91 11 42696666 F: 91 11 42696600E: [email protected]
Asia Pacific - Sydney CitiXsys Australia Pty Ltd Tower 2, Level 20, 201 Sussex Street Sydney NSW 2000 Australia T: 61 2 9006 1616 F: 61 2 9006 1515E:[email protected]
Thank you!
