Becoming A Customer-Driven Organization

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Secrets to Top Performers’ Success in Customer-centric Marketing Strategies www.gostrata.com Leveraging Data to Build Brand Affinity, Increase Loyalty and Drive Revenue

Transcript of Becoming A Customer-Driven Organization

Page 1: Becoming A Customer-Driven Organization

Secrets to Top Performers’ Success in

Customer-centric Marketing Strategies

www.gostrata.com

Leveraging Data to Build Brand Affinity,

Increase Loyalty and Drive Revenue

Page 2: Becoming A Customer-Driven Organization

According to the Consumers

2020 Report, customer

experience is expected to

become the number one

brand differentiator,

overtaking both price and

product by the year 2020.

Source: http://www.walkerinfo.com/customers2020

The Customer Experience Revolution

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Using Customer Analytics to Drive Strategies

and Create Measurable Business Impact

According to the International Institute for Analytics

report Keeping Customers: Successful Loyalty Through

Analytics, there is a strong correlation between loyalty

program effectiveness and the use of data and analytics

to develop and measure loyalty program strategy.

The report indicates that highly effective programs are

driven from the customer’s perspective. They focus their

efforts first on the customer experience—building brand

affinity and ensuring customer satisfaction—before

expecting customer loyalty. Source: http://info.iianalytics.com/CustomerLoyalty

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The New Competitive Differentiator

Is your company ready to

rally around your customer

initiatives to attract and

engage loyal buyers across

marketing, sales and service?

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How Do You Leverage Your Marketing Data to

Create Measurable Business Impact?

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Making Data Relevant to Your Business

When it comes to data, it’s not just about

measuring everything.

It’s about:

How data impacts your business

How it is applicable to the future

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Making Data Relevant to Your Business

Your data should provide clear

answers to a few key questions:

How can we increase revenue?

How can we bring in more shoppers?

How can we turn shoppers into loyal

customers?

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Making Data Relevant to Your Business

When it comes to turning data into valuable

insights, marketers must be equipped to:

Evaluate their business processes from a customer mindset

Align the appropriate data points for actionable insights

Integrate insights into activities that allow you to speak to

each customer as an individual—at every touch point

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What They Do. How They Do It. Why It Works.

Jane Smith

Tim Smith

3 B2C Leaders Who Are Doing It Right

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DSW Makes Big Strides

with Marketing Data

With more than 22 million members in its

loyalty program, shoe giant DSW leverages

customer-driven strategies to successfully

drive revenue and optimize its retention efforts.

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DSW Loyalty Program

How it works

Customers earn points for each purchase

Points accumulate to become $10 rewards

certificates

They get 10 points per dollar on full-priced

merchandise and half of that on clearance items

At 1,500 points the customer is awarded a $10

rewards certificate

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DSW Loyalty Program

They leverage program data to:

Tailor the shopping experience to existing

customer behaviors and trends

Optimize personalized offers based on a

customer’s channel/buying preferences (e.g., in-

store, catalog and online)

Drive unplanned purchases by promoting double-

points events

Increase customer response rates by 400%

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Why is the DSW Loyalty

Program Successful?

It’s straightforward and earning points is easy.

But the real value exists in that 90% of DSW

purchases come from members of their rewards

program, so the company has relevant

information on practically all customers.

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Why is the DSW Loyalty

Program Successful?

DSW data revealed that customers were twice

as profitable when they purchased from different

channels (e.g., in-store, catalog and online).

In response, the company implemented a cross-

channel marketing campaign strategy featuring

a mobile application where customers can shop

and manage their account online from their

mobile devices.

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Nissan: Driving Customer Loyalty

Nissan One To One Rewards Program

With every service visit vehicle owners earn

valuable reward points

Customers can use their points for factory-

recommended Genuine Nissan Service and Parts – including oil change, brake service, battery service, wiper

replacement, tire service and replacement, and more.

Plus, they can use their points

toward their next vehicle purchase

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Nissan: Moving from Transactional to

Emotional Loyalty

Loyalty Program Evolution

2008-2011

Built the loyalty program around two umbrella

segments [engaged vs. non-engaged]

Evolved creative strategy

Grew dealer participation

Service Retention focus

Owner sweepstakes introduced integration of social

Evolving segmentation

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Nissan: Moving from Transactional to

Emotional Loyalty

Loyalty Program Evolution

2012-2013

New creative platform

Enhanced segmentation strategy

Experience map

Marketing automation platform

Gamification

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Nissan: Moving from Transactional to

Emotional Loyalty

Loyalty Program Evolution

Today and Beyond

Engagement

Telematics integration

Holistic program integration

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Nissan: Leveraging

Engagement-based Segmentation

Increase customer retention

and loyalty

Drive higher customer profitability

and lifetime value for the brand

Create value and relevancy for

the customer

Tailor communications to

customer needs and preferences

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Nissan Loyalty: Key Success Criteria

Service Retention = Brand Loyalty

Increase customer retention and loyalty

Understand and align stakeholder needs

Create a viable financial model

Architect the platform with scale in mind

Identify and focus on key objectives

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Kroger Company: Data is “In the Bag”

When it comes to driving

customer loyalty, offering

discounts and creating relevant

experiences are leading factors.

This is why U.S.-based Kroger

Company, one of the largest

grocers in the world, has one of

the highest loyalty ratings in the

industry.

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Kroger Company: Data is “In the Bag”

Kroger uses its loyalty card data to create an

enhanced shopping experience and build relevant,

personal connections with each customer by: • Knowing what customers are likely to buy

• Recognizing shopper behavior over time

• Aligning customer promotions with their buying

preferences

• Understanding the store’s relevance to customers by

identifying repeat/identical sales

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Kroger Company: Data is “In the Bag”

Kroger also leverages its data to continually

improve on its ability to deliver the right products

at the right price with great service and an

enhanced shopping experience.

Data provides Kroger meaningful insights that

can benefit their entire value chain while

creating significant competitive advantage.

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Embracing a Data-Driven Future

Data is changing how marketers shape their customer experience journeys and brand interactions.

As you develop your marketing strategies, remember it’s not just about numerical data; it’s about the insights you derive from the data.

The future of marketing is about your ability to leverage these insights to connect with customers and deepen your relationships with them over the long term.

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