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Kunal Mohiuddin presents an elegant three-step approach for building a future-ready loyalty program capability. Kunal has more than fifteen years in design and execution of loyalty programs and solutions. Based in India, he has been the architect of numerous enterprise-scale programs, located in over 85 countries and powering over 65 brands. Lassu (lassuloyalty.com) is the ASEAN distributor and reseller of Loyalty Prime – a complete enterprise-class loyalty platform that offers full CRM and loyalty management, and excellent integration to backend systems, like POS, reservations, and ERP. With the Loyalty Prime platform, marketers can easily segment their customers, and then build engagement using social, mobile, website, email, SMS and marketing campaign automation.
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18 Sep, 2014 - Confidential
Unleashing the Power of Loyalty to Drive Engagement and Sales
CUSTOMER LOYALTY 2014:
ASEAN CONFERENCE
Presented by
2confidential 2- confidential -
Overview
1. What can Loyalty Programs do?
2. How to get the best out of your Loyalty Program?
• Case 1: Hospitality Industry
• Case 2: Specialty Retail
• Case 3: Consumer Electronics
3. Summary
3confidential 3- confidential -
Overview
1. What can Loyalty Programs do?
2. How to get the best out of your Loyalty Program?
• Case 1: Hospitality Industry
• Case 2: Specialty Retail
• Case 3: Consumer Electronics
3. Summary
4confidential - confidential - 4
Leveraging the data that really matters
They know what
you like:
They know what
you look for:
They know what
you really buy:
Loyalty Programs
collect the most
valuable data on your
customers
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Member Master Data
• address / contacts
• socio demographics
• household income
• age, sex, profession,
children, pets, etc.
360° Customer
Data Base
Behavioral Data
• shopping schedules
and habits
• cross-usage
• redemption choices
Survey Data
• response to member
surveys
Customer Contact
Center Data
• contact history and topics
• complaint reasons
• suggestions
External Data Sources
• (micro) geographic
• lifestyle
• Financial indicators
• regional socio
demographics
Online / Mobile Data
• web usage
• key words
• click rates
• geo-data
Direct Marketing Data
• response to
communication and
campaigns
• coupon activation and
usage
Transaction Data
• data from many
different sectors
• category / SKU level
• PoS selection
• cross-usage (across
partners)
Loyalty helps create rich data
Loyalty Programs are a REAL basis to collect a full 360° customer data.
6confidential - confidential - 6
The Power of Loyalty Programs
Today businesses across sectors understand the value of data to optimize their business.
Product /
Category Mgmt.
higher sales by optimized
categories
Pricinghigher prices for less price
sensitive segments
Who bought product A and B at the same time?
Who shops frequently, who doesn’t?
What do my price sensitive clients buy?
Who values quality over price?
Who responds well to campaigns?
Promotionshigher transaction rates by
personalized offers
Store Layoutcategory sales increase by
optimized placement
Customer Service
recognition of valuable
customers; cross- & up-
selling; churn reduction
Personal Marketing
Behavioral
Transaction
External Sources
Survey
Service
Online / Mobile / Social
360° CUSTOMER DATA
CUSTOMER INSIGHT
BUSINESS OPTIMIZATION EXAMPLES
7confidential 7- confidential -
1. What can Loyalty Programs do?
2. How to get the best out of your Loyalty Program?
• Case 1: Hospitality Industry
• Case 2: Specialty Retail
• Case 3: Consumer Electronics
3. Summary
Overview
8confidential 8- confidential -
Our 3 Step Approach
Step 1: The Loyalty Platform
A flexible and dynamic loyalty platform that provides end-to-end loyalty services
Robust loyalty
platform with a
flexible end-to-end
IT solution
Points / Miles / Customer Score
1
11confidential 11- confidential -
Case Study 1: Hospitality Industry
Impact of A Powerful Technology Platform
%2660% of these members
were International Guests
contributing 18% of Total Revenues
of total revenues
were from members
Leading 5 star hotel chain in India, severed it’s collaboration with a Global Hotel Group and it’s frequent guest program
3 months at hand to replace the
program
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The Solution
A loyalty platform which met 90% of the requirements out of the box
Solution:
• A central loyalty system enabling de-centralised
management for individual Hotels, Customer Care
and Loyalty managers
• Offered equivalent or higher status levels to
existing program members
• Offered an array of redemption offers including
attractive exchange of currency in to FFPs,
International retail programs and others
• Targeted offers basis profile & usage to deliver
higher returns
Minimize the impactof the severance and
retain frequent guests
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The Results
New Program successfully launched in 3months (on the very next day of the old program
closing down)
Business Impact
• Close to 60% of revenues is now contributed by
members
• Managed to run over 50 different campaigns in the
first 18 months, resulting in 15% increase in
occupancy levels year on year
• For every point redeemed at the Hotel members
spent > 3X as cash at the hotel
• Voted amongst the leading Hotel Loyalty
Programs (3 times in a row)
Retained over 70% of members
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Step 2: Customer Insight
Understanding your customer and what drives their behavior
Generate customer
insight through business
intelligence to enable
one-to-one
communication
2AchievementStrategic
goals
Transaction Data
Customer data
Service Data
Campaign Data
External Data
MarketResearch
Segmentation
(customer value,
customer lifecycle,
potentials)
CustomerStrategy
IncreasedProfitability
Customer-centricofferings & services
Revenue Optimization
CustomerRetention
Increased MarketShare
Understandingof
customersneeds
("CustomerInsight")
Our 3 Step Approach
Robust loyalty
platform with a
flexible end-to-
end IT solution
1
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Case Study 2: Retail
Customer Insight
Over 85% of their top
customers felt there was not
enough recognition
One of the largest jewellery retail chains in Asia, serving millions of customers on an annual basis
%30 Of their customers were
repeat buyers
Below average response
rates to Campaigns
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Solution:
• A loyalty program with a mix of 3 Es
• Tracking preferences and purchases
• Communication and responses closely
monitored
• Member segmentation and analysis –
customer lifecycle
• Outlets empowered to run personalized
campaigns
Need to build a
one-on-one connect
with the customer
The Solution
Developed a 360° view of the customer
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The Results
Increase customer satisfaction and repeat purchase
Repeat Purchaserscontribute to over
55% of Revenues
Business Impact
• Customer dormancy decreased by
over 15%
• Higher customer satisfaction amongst
their top customers by 18%
• Personalised campaigns (at outlets)
achieved response rates of over 20%
• Awarded the best retail loyalty
program in it’s sector
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- Preferences- Location- Past history
- Occasion
- Profile.......
Creation of a
personalized
rewarding
customer
experience
based upon
Loyalty program serves the member
throughout the whole experience.
Increase of program touchpoints for
members
Seamless
Personal
Step 3: Multi-channel Marketing
Engage customers with personalized offers through their preferred medium
1010
3Drive customer behavior through personalized offers, rewards and communication to engage customers
Generate customer
insight through
business intelligence
to enable one-to-one
communication
2
Our 3 Step Approach
Robust loyalty
platform with a
flexible end-to-
end IT solution
1
Customers can
access the
program
through all
channels
Multiple
Channels
- At outlet (kiosk), portal, etc.- Website, Facebook, twitter- Mobile: App, Text message- Mailings, Email-- Call Centre, IVR
Customer-centric
multi-channel
communication
Web portal
SocialMedia
Mobile
ServiceCentre
Mailings
Newsletter
Outlet
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Case Study 3: Consumer Electronics
Multi-channel Marketing
Brand recall amongst the youth,
their key TA had dipped by 15%
Of their market share was
wiped out by their largest
competitor
A global brand in consumer electronics, facing a tough challenge from established and new players
10%
Key sponsors of a sports team and
were leveraging the relationship
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Solution:
• Loyalty program built around the
“sports team” using gamification
• Multiple channels used for
engagement – SMS, Social media (fb,
twitter, youtube), Email, website &
owned retail outlets
• Drove engagement through content,
participation in activities, referrals, viral
messaging, etc.
Retain Market Share
& Increase Brand Recall
The Solution
Engage and connect with customers through their preferred channel
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Delivered 1.3X of the program sales
target
Business Impact
• Over 1.7 million members
• 30 Million SMS Interactions with 20
Million Page views
• Over 1 million shares, generatin over
500,000 referrals
• Sales increase by 5% across
participating outlets visa-vis
7% decline in sales at other outlets
The Results
Increased Engagement and Retained Sales
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Case Study 4: Building Materials
Business Challenge
Commoditized business wanted to
create a business differentiator
Growth with a decreasing share of wallet amongst multi-brand dealers
A leading brand in Building materials, facing growth stagnation and increasing defection in it’s sales channel
0%
Ad-hoc promotions giving lesser
returns as easily being duplicated
by competition
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The Solution
A First of it’s kind long terms loyalty program for the Channel community
Solution:
• A rewards program aimed at rewarding
“desired” behaviour from the dealer• Achieving Sales targets
• Electronic payments
• Higher share of wallet
• Exclusive vs Multi-brand
• Higher retailer base, etc.
• Build rewards offering across the life of the
dealer – Me, My family, My Business & My
Community.
• Varied market conditions across regions,
enabling sales team to target individual
dealers with specific campaigns
Create an exit barrier by building true
loyalty
24confidential 24- confidential -
Beat Growth and Sales targets by
14%
Business Impact
• Dealers got locked into long term
business objectives of the company
• E-payments increased from 20%
usage to >95%
• Increased Exclusive to Multi-brand
coverage from 30% to 36%
• Increased retailer penetration by
extending program to retailers
The Results
Increased Engagement and Retained Sales
20confidential 20- confidential -
Overview
1. What can Loyalty Programs do?
2. How to get the best out of your Loyalty Program?
• Case 1: Hospitality Industry
• Case 2: Specialty Retail
• Case 3: Consumer Electronics
3. Summary
21confidential 21- confidential -
Unleashing the Power of Loyalty
The 3-Step Approach
Multi-Channel M
arketing
Profiling &
Segmentation
Scoring
Targeting Generating customer
insight
Create segments by
combining profile and
past transaction history
Develop personalized
offers
• Across
• Custom Offers
• Surprise Benefits
• Rewards Shop
• Partners / External
• Personalised
Flexibility to create and
run promotions instantly
Give “surprise” benefits
to members who have
crossed milestones
Collect all customer
data in to a central
database
OnlineOffline
Mobile
Drive program
engagement by
deploying “preferred”
channel based
communication
Track & manage
campaigns , report
ROI
Earn Burn
Social
25confidential 25- confidential -
Contact: Kunal Mohiuddin
Loyalty Prime Ltd.
US : +1- (347)-474-6640
UK : +44-(203)-026-6385
India : +91-(981)-026-7872
Happy to take any
questions?