Analytics Differentiates Next-Generation Loyalty Programs › ... › event › Next-Generation-Loyalty-Programs-… · Analytics Differentiates Next-Generation Loyalty Programs Panel

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Copyright © 2014, SAS Institute Inc. All rights reserved.Copyright © 2014, SAS Institute Inc. All rights reserved.

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Analytics Differentiates Next-Generation Loyalty Programs

Panel discussion featuring:

• Jack Phillips – CEO, International Institute for Analytics

• Terri Albert – Clinical Assoc. Professor, Kellogg School of Management

• John Balla – Principal Marketing Strategist, SAS

@IIAnalytics @KelloggSchool @JohnBalla

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About the Panelists


Jack Phillips Terri Albert John Balla

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Loyalty Programs - Context


2.6B 242M 10.7

Growth rate = 26.7% (1% annual population growth)

Active memberships declined 46% to 44%

Sources: Colloquy, Maritz, US Census Bureau

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Consumers: Loyalty Equation Drivers

47%

28%

5%

5%

7%

5%

5%

17%

29%

17%

13%

13%

5%

5%

13%

15%

23%

24%

11%

9%

6%

Discounted Prices

Convenient Location

Operating Hours

Expedited Service

Early/Special Access to Products

Exclusive Events

Personalized Communication

Customers value discounts and location over other store benefits

Ranked First Ranked Second Ranked Third


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Consumers: Loyalty Driver Variability


79%

63%

45%

33%

35%

20%

25%

79%

76%

49%

49%

26%

13%

8%

83%

74%

45%

49%

28%

13%

9%

69%

76%

40%

37%

33%

26%

19%

Discounted Prices

Convenient Location

Operating Hours

Expedited Service

Early/Special Access toProducts

Exclusive Events

Personalized Communication

Customer preferences vary by store type

Department General Merchandise Grocery Specialty

% of shoppers who ranked the benefit in the top three

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Copyright © 2014, SAS Institute Inc. All rights reserved.@IIAnalytics @KelloggSchool @JohnBalla

Enterprise:Top Three Loyalty Program Challenges

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Enterprise: Loyalty Program Success Metrics

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Enterprise: Customer Engagement Channels

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Enterprise: Number of Channels

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Consumers: Different Segments – Varying Values

30%

14%

51%

38%

43%

51%

73%

30%

28%

43%

41%

35%

56%

69%

9%

16%

24%

43%

47%

80%

80%

PersonalizedCommunication

Exclusive Events

Early/Special Access toProducts

Expedited Service

Operating Hours

Convenient Location

Discounted Prices

Shopper Segments Place Different Importance on Benefits

Necessity Shoppers Practical Shoppers Pleasure Shoppers

% of shoppers who ranked benefit in the top three

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Consumers: What One Store Earns Your Loyalty Best?

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Consumers: What Makes That One StoreStand Out?

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Enterprise: Top 3 Priorities of Loyalty Program

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* Based on respondents who have customer experience programs.

Enterprise: Customer Experience ProgramIntegrated with Loyalty

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Enterprise: Loyalty Program Components

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Enterprise: Social Media as Part of Loyalty

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Enterprise: Data Analysis Core to Loyalty?Data-Driven Culture?

Data Analysis

Data Culture

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Enterprise: Types of Customer Information Used

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Enterprise: Types of Analytics Used

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Conclusions for Loyalty

Where to Focus:

Customer Experience, Perceived Value.

“Retaining” or “Up-selling”

Respect Their Channel Preferences.

• Mail, email, SMS, phone, in-person…

Invest in understanding your customer, their values

• Demographics, age, behavior

• Use a wide range of analytics.


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Thank you!


Documents

Analytics Differentiates Next-Generation Loyalty Programs › ... › event › Next-Generation-Loyalty-Programs-… · Analytics Differentiates Next-Generation Loyalty Programs Panel