Communication Principles for Complex Loyalty

Derek F Martin

www.derekfmartin.com

All Rights Reserved

Banking Loyalty Conference, February 6, 2013

LOYALTY

Loyalty continues to evolve

GREATSERVICE

SOCIAL

OFFERS

PROGRAM/ POINTS

MESSAGINGREAL-TIMEENGAGEMENT

ANALYTICS

SINGLE VIEWOF CUSTOMER

2

LOYALTY

And Communication is Key to bringing it together

GREATSERVICE

SOCIAL

OFFERS

PROGRAM/ POINTS

MESSAGING

REAL-TIMEENGAGEMENT

ANALYTICS

SINGLE VIEWOF CUSTOMER

3

Customer Engagement Fundamentals are evolving, increasing complexity and risk

CUSTOMERDATA & ANALYTICS

CHANNELS

EMPOWERED CUSTOMER FEESWANT IT

NOW

REGULATION

4

How to create an effective multi-channel communication strategy to drive loyalty and revenue?

The Challenge:

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Common Sense Communication Principles for a Complex World

1. KEEP IT SIMPLE 2. ALL CHANNELS ARE NOT EQUAL

3. CREATING A BEHAVIOR IS EASIER THAN CHANGING ONE

4. CONTEXT DEFINES THE MESSAGE

5. VALUE IS IN THE EYE OF THE BEHOLDER

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PRINCIPLE #1: Keep it Simple

1. FORM: Message, Format, Channel

2. FUNCTION: How many things are you trying to

accomplish?

3. FLAVOR: Brand Narrative

4. FREQUENCY: Defined by the Customer

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PRINCIPLE #2: All Channels Are Not Created Equal

CHANNEL

COST COMPLEXITY

CAPACITY

APPROX

USAGE

USAGE GROWT

H

CHARACTERISTIC

Face2Face

$26.00 95% Personal

Voice $4 -12.00 75% Dynamic

Chat $1.50 1% Unobtrusive

Direct Mail

$0.50 95% >0.2% open rate

IVR $0.25 50% Natural language

App $0.20 35% Requires download

Social $0.15 12% Viral

Web $0.12 65% Connectivity

Email $0.10 85% <8.0% open rate

SMS Text $0.01 3% 160 character limit

Source: ABA 2012, MMA, PACE, Mashable, 8

PRINCIPLE #3: Creating a Behavior is Easier Than Changing One

1. “LEARN ONCE” MENTALITY

2. PATH OF LEAST RESISTANCE

3. VALUE (CAN) TRUMP HABIT

4. MANAGE OPT-IN (as if your business depended on it)

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Traditional Onboarding Experience

Branch EmailDirect Mail SMSPhone Mobile

AppWebSocial

Tim

e

Survey

Acct Setup

Prospect

Offer

Searched Insurance Value Add

Message

Offer

Statement

Statement

Statement

ProspectNew

CustomerActivate

Card

Pay my Bill

Pay my Bill

Pay my Bill

ATM

Deposit

10

Digital Onboarding

Branch EmailDirect Mail SMSPhone Mobile

AppWebSocial

Tim

e

Offer

Alerts

Prospect

Share Experience

Alerts

Alerts

11

Insurance Offer

Offer

Survey

Acct Setup

Prospect

Offer

Searched Insurance

Insurance Offer

Statement

Activate Card

ATM Statement

Statement

Download

ProspectProspect

PRINCIPLE #4: Context Defines the Message

• Profile• Status• Profitability• Transactions• Interactions• Opt-in/Opt-out

PAST: Profile

• Estimated Cust. Lifetime Value• Opt-out Risk• Retention Risk• Cross Sell Options

PREDICTIVE: Opportunity

• Purpose• Channel• Location• Sentiment

PRESENT: Intent

RELEVANT

VALUE ADD

APPROPRIATE

“BEST NEXT”

OPPORTUNITY

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PRINCIPLE #5: Value is in the Eyes of the Beholder

1. RELEVANCE: Personal, Timely, Right Channel

2. VALUE ADD (MEETS A NEED)

3. APPROPRIATE

4. TRUST IS BUILT NOT BOUGHT

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How to Avoid the “Creepy” Factor in Messaging

CREEPY FACTOR = Relevance without Trust, Appropriateness, & Value Add

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RELEVANT

VALUE ADD

TRUSTAPPROP-RIATE

Thank You

Visit me at: www.derekfmartin.com #derekfmartin http://betterbusinessbanter.blogspot.com

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