Upload
maritz-motivation-solutions
View
677
Download
1
Embed Size (px)
DESCRIPTION
The notion of “reward” has long been a basic and critical component of a loyalty program. But now with the rise of social channels, mobile payment, geo-location and gamification, our definition of reward is undergoing a dramatic shift, along with ideas on how frequently rewards need to be delivered to drive behavior. The challenge for brands will be how to integrate these new reward models into existing programs in a way that will maximize benefit without alienating existing members. Barry Kirk and Mary Luckey invite you to join us for this webinar and engage in a dialogue exploring new approaches that are enabling companies to significantly rethink their reward strategy in order to drive competitive differentiation and results.
Citation preview
Proprietary and Confidential © 2011 Maritz
Now + New + Next Rethinking “Rewards” in the New Engagement Economy
December 10, 2013
1
Proprietary and Confidential © 2011 Maritz
2
Mary LuckeyDirector
Reward Strategy
Barry KirkVice President
Loyalty Strategy
Proprietary and Confidential © 2011 Maritz
I am: •Currently running a rewards program.
•Planning to launch a program soon.
•Evaluating whether to launch a program.
3
Proprietary and Confidential © 2011 Maritz
4
5
Proprietary and Confidential © 2011 Maritz
6
7.4
US consumers are enrolled in
loyalty programs.
Maritz Loyalty Marketing 2013 US Loyalty Report
Proprietary and Confidential © 2011 Maritz
7
16%Only of consumers
redeem for rewards in US loyalty programs
Forrester 2013 State of Loyalty Programs
Proprietary and Confidential © 2011 Maritz
Part
icip
ati
on
Time
Initial Awareness & Enrollment
Participation, but with lagging engagement levels
Disengagement
The engagement cliff
Based on the work of Paul Lawrence and Nitin Nohriaat Harvard Business School
©2013 The Maritz Institute. All rights reserved.
The Four-Drive Model of Motivation
Driven to engage,cooperate,“fit in”to the community
Driven to “create” better self, team, organization, world
Bond
Create
Driven to acquirestuff, status,resources
Driven to defendstatus, stuff, ideas and relationships
Defend
Acquire
CHOICE
9
10
Pendulum swing
Traditional Rewards
Virtual Rewards?
Proprietary and Confidential © 2011 Maritz
11
Traditional rewards
Proprietary and Confidential © 2011 Maritz
12
Proprietary and Confidential © 2011 Maritz
13
Proprietary and Confidential © 2011 Maritz
14
Proprietary and Confidential © 2011 Maritz
Traditional reward strategy
15
Proprietary and Confidential © 2011 Maritz
Today we have an avalanche of data …
Proprietary and Confidential © 2011 Maritz
People in reward programs have changed
• New Generations– By 2015, the oldest Millennials
(born after ‘77) will be 38 years old1
• More Digital Devices– Average U.S. household has 5 digital devices,
and some have 15 or more2
• Soon, More Devices than People! – Number of mobile-connected devices will soon
exceed the world’s population3
17
1 Pew Research Center’s Internet and American Life Report
2 Bloomberg Tech Blog3 Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update
Proprietary and Confidential © 2011 Maritz
People’s expectations have changed, too
18
“I expect personalized experiences in all my online
environments.”
“I’m a 20-something who likes music downloads and
designer handbags … so don’t show me
housewares, sporting goods, and lawn care.”
“I want access to my rewards site on my smartphone,
tablet or laptop – depending on where I am and what I’m
doing.”
Proprietary and Confidential © 2011 Maritz
Consumers are in the drivers seat
19
Proprietary and Confidential © 2011 Maritz
20
Social intelligence is big data
Sentiment
VolumeVelocity
Emotion
Proprietary and Confidential © 2011 Maritz
21Emotion
Volu
me
Affluent Women – Conversations
Maritz social intelligence study : affluent women
Proprietary and Confidential © 2011 Maritz
22
Proprietary and Confidential © 2011 Maritz
23
Behavioral Intelligence is also big data
Proprietary and Confidential © 2011 Maritz
We are: •Currently using big data in our reward strategy.
•Evaluating how to use big data in our reward strategy.
•What’s big data?
24
Proprietary and Confidential © 2011 Maritz
Future strategy for traditional rewards
25
Behavioral Intelligence Social Intelligence
26
Pendulum swing
Traditional Rewards
Virtual Rewards?
• Likes
• Shares
• Comments
• Levels
• Points
• Badges
• Trophies/Achievements
• Virtual “goods”
27
Virtual rewards are non-physical goods that exist online and are earned by participants
for engagement and achievement.
Proprietary and Confidential © 2011 Maritz
We are: •Currently using virtual rewards in our rewards mix.
•Evaluating whether to integrate virtual rewards into our rewards mix.
•Not planning to include virtual rewards in our program.
28
Proprietary and Confidential © 2011 Maritz
Proprietary and Confidential © 2011 Maritz
Trans actions
Proprietary and Confidential © 2011 Maritz
actionsInter
Proprietary and Confidential © 2011 Maritz
32
• Low cost to produce
• Low cost to store
• Inexhaustible supply
• Can attach to any behavior
• Consumers and employees like them. A lot.
The upside of virtual rewards:
Proprietary and Confidential © 2011 Maritz
IntrinsicExtrinsic
33
MOTIVATION
Engaging in a behavior for its own value.
Engaging for the promise of an attached reward.
34
Virtual rewards have low and exceedingly fleeting extrinsic value.
The downside:
Instead, link them to behaviors with intrinsic motivators.
Proprietary and Confidential © 2011 Maritz
Status Quo
Status Quo
Disruption!
Disruption!
Habit
AWARENESS COMMITMENT INFLUENCE
Social Interaction – Autonomy – Mastery
Effort – Risk - Reward- +
RitualRitual
Proprietary and Confidential © 2011 Maritz
5 best uses for virtual rewards:
36
1. To show progress toward a goal
2. To acknowledge mastery
3. To indicate social connection/status
4. To enable online personalization
5. As a proxy for a tangible reward
37
38
Proprietary and Confidential © 2011 Maritz
39
2X Participation doubled over previous year
EE+ Four of 7 engagement outcomes are up significantly
Results:
115%Increase in overall recognitions submitted
40
Traditional Rewards
VirtualRewards
Big Data & Strategy
Proprietary and Confidential © 2011 Maritz
41
Mary LuckeyDirector
Reward Strategy
Barry KirkVice President
Loyalty Strategy
Questions?
Proprietary and Confidential © 2011 Maritz
Thank You
42