THE STATE OF LOYALTY IN 2017 - Snipp€¦ · Better user experience • Enhanced mobile channel •...
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I WEBINAR THE STATE OF LOYALTY IN 2017
Transcript of THE STATE OF LOYALTY IN 2017 - Snipp€¦ · Better user experience • Enhanced mobile channel •...
I WEBINAR
THE STATE OF LOYALTY
IN 2017
Carlos Dunlap-Beard
VP, Loyalty Solutions &
Business Development
Christian Hausammann
Global Director of Loyalty
TODAY’S PRESENTERS
ABOUT
We can take brands along the full
continuum from a single promotion to
an ongoing loyalty initiative.
AGENDA
TREND 1: EVOLUTION OF LOYALTY PLATFORMS
TREND 2: LIFESTYLE LOYALTY PROGRAMS
TREND 3: MACHINE LEARNING
TREND 4: B2B LOYALTY PROGRAMS
TAKEAWAY: LOYALTY STRATEGY FRAMEWORK
TREND 1:
EVOLUTION OF LOYALTY PLATFORMS
LOYALTY TECHNOLOGY OF THE PAST
UPC codes/ proof
of purchase
Codes on-
pack
Membership
cards
Reliance on tech
vendors for set up
Website only
access
Costly POS
integrations
Limited
rewards
4 2 9
Smartphones &
mobile (e.g. Text-to-enroll)
Receipt
Processing
SaaS program
set up Apps
Wearable
integrations
Digital
rewards
EVOLVED TECHNOLOGIES
Real-time
connectivity
TO APP OR NOT TO APP?
Quick to market (and for consumers to
engage with)
Compatibility
Findability
Flexibility
Reach
Shareability
Location-based
messages
Audience
Good for
gamification
No connection
requirement X
Unique data Unique data
Ecommerce
functionality
Pros of App-Free Pros of Apps
CASE STUDY: KELLOGG’S
Kellogg’s Family Rewards 1.0
• Consumers enter codes to earn points
and then redeem for rewards like high
value coupons, gift cards,
sweepstakes, merchandise
• A cross-Kellogg’s/ cross-category
platform that enables national
promotions as well as retailer-specific
promotions
Joins &
Buys
Product
Enters
Codes
Chance
to Win
$200
Collect
Bonus
Codes
Get
Emails
Check
Point
Balance
Redeem
Rewards
Tell
Friends
& Family
An ‘always-on’ points-based consumer loyalty program using unique code on-pack
technology to reward consumers
CASE STUDY: KELLOGG’S
“Pain Points” with code based programs
• Unique code-on-pack
• Cumbersome for users
• Code management and printing on pack complex and expensive
• Codes difficult to read
• Other missed opportunities
Enter Code
Submit
Congrats!
You have
100 points!
CASE STUDY: KELLOGG’S
The Solution:
• Improved purchase validation
• Full basket data capture
• Better user experience
• Enhanced mobile channel
• More promotion options
Receipt
Processing
Loyalty
Integration
TREND 2:
LIFESTYLE LOYALTY
PROGRAMS
WHAT LIFESTYLE FACTORS CAN BE
TARGETED/ACCESSED?
Demographics
Hobbies
Exercise Behaviors
Personal Health Information
Social Interactions
Physical Locations
Seasonal Migrations
All of these
factors allow for
engagement
beyond
transactions.
SMART DEVICES MAKE
LIFESTYLE LOYALTY POSSIBLE
Portals MyFitnessPal
Rally
Wearables Fitbit
Garmin
Smart Homes Samsung SmartThings
Amazon’s Alexa
Google Home
LOCATION BASED MARKETING
Indoor
Navigation
Proximity
Marketing
Automatic
Check-in
Contactless
Payment
CASE STUDY: SUBWAY
The program not only provides
a method to drive loyalty, but it
also provides Subway with
some important analytics
including: how many people
entered their store, whether
those are new customers or
repeats, the duration of time
customers spend within the
store, and the foot traffic outside
the store which isn’t coming in
Shuli Lowy, Marketing Director at Ping Mobile, New York
VIRTUAL AND DIGITIZED CONSUMER
EXPERIENCES
There is an expected 2.5 million Virtual Reality (VR)
units to be sold in 2017, up 79% from 2016. VR
hardware revenue will be $660 million, up 43% from
last year.
The VR market will be $80 billion in 2025 (up from $1
billion in 2016).
AUGMENTED REALITY CASE STUDY:
STARBUCKS & POKÉMON GO
TREND 3:
MACHINE LEARNING
4 WAYS BUSINESSES ARE USING
MACHINE LEARNING
ENGAGING WITH CUSTOMERS IN MORE
MEANINGFUL WAYS
UNDERSTANDING CUSTOMER BEHAVIOR TO PREDICT FUTURE ACTIONS
FINDING PRODUCTS FASTER
MAKING USER GENERATED CONTENT VALUABLE
MACHINE LEARNING – KEY STEPS
CHOOSE A MACHINE LEARNING ALGORITHM
TRAIN, TEST AND RE-EVALUATE YOUR MODEL
PREPARE AND TRANSFORM DATA
GATHER APPROPRIATE DATA
ARTIFICIAL INTELLIGENCE TO ENGAGE
CONSUMERS
74% of customers said that they had positive experiences with AI in retail stores; in another question
65% stated that they are not comfortable with a robot
replacing a human worker in stores.
57% said that they would happily exchange messages with an ecommerce merchant's chatbot
online.
CASE STUDIES: THE POWER OF DATA
AND PREDICTIVE ANALYTICS
• Furniture/Home Interior
Client
1) Predictive Analytics
• Department Store Client
2) Churn Prevention
TREND 4:
B2B LOYALTY PROGRAMS
BUSINESS CHANNELS ARE STILL CONSUMERS
Top Ten Predictions for B2B Loyalty Programs in 2017 from Motivforce
Augmented Reality enhances member experience.
Chatbots will drive engagement in loyalty programs.
Cognitive computing lives up to its analytical promise.
Get audio-visual with podcasting, live streaming and video.
Coalitions between brands will grow.
The return of sales incentives.
The mobile member experience will top the desk.
Data analytics will continue to rule.
Social loyalty and social selling will replace social marketing.
Channel programs will start to embrace the IoT.
%
B2B LOYALTY REQUIREMENTS
• Oversight
• Compliance • Business benefits
& services
• Certification & training
• Regulatory control • Institutional vs individual
• Business only rewards,
sales rep rewards or
a combination
• Segmented earning,
rewards & benefits by member type
Administrative
Control
Flexibility
Leading Plumbing OEM
Situation: Convert multiple legacy
standalone incentive programs into a
single Reseller/Distributor Sales Rep strategy
that leads to increased brand affinity, product knowledge and sales to installers/
consumers
• Enrollment and participation far exceeded expectations
• Program broke even in under 10 months & achieved better than 200%
ROI in Year 2 • The program has continually evolved (website refresh, mobile app,
refreshed rewards, dynamic activities)
B2B BEST IN CLASS DESIGN EXAMPLE
Solution: Multi-channel, flexible program that tailored to both the business overall
and the individual representative
Results
TAKEAWAY - LOYALTY STRATEGY FRAMEWORK
Strategy & Alignment
Marketing & Communications
IT & Integration
Establish stakeholder clarity, alignment and consensus around goals and priorities
Determine the best channel and messaging options for awareness, enrollment and activation messaging
Determine the best and most efficient manner of delivering a seamless experience to program members
Achieve a common understanding of financial measures for the program
Development of a solution framework that presents a recommended strategic direction for the loyalty program
Ensure a common understanding and appropriate next steps
Finance & Insights
Program Design
Wrap Up & Next Steps
TAKEAWAY – LOYALTY PROGRAM DESIGN
EXAMPLE
• Existing email list
• Social channels
• Partners, conferences & events
• Company & program website
• Mobile: web, app & SMS
• Conferences & events
• Purchases
• Brand engagement: content consumption, referrals, social
activity, etc.
• Special promotions: LTO, bonus points, exclusive events
• Low, medium, high perceived value options
• Brand and program branded items
• Soft benefits that are only available to program members
Easy Enrollment
+
Earning Activities
Rewards & Benefits
$
Gain Awareness
LOOK OUT FOR OUR BEST PRACTICES
CHECKLIST!
Easy CX
Multichannel Approach
“Don’t Eat The Elephant”
And more….
