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TOWARDS REAL LOYALTY
12 steps to real customer engagement
GROWING LOYALTY
Beyond Traditional Reward Programs
2
LOYALTY IS AN EMOTION
…SO WHY DO WE TREAT IT
LIKE A TRANSACTION?
WE HAVE BECOME VICTIMS OF HISTORY AND HABIT
1700s
COPPER TOKENS
1800s
COUPONS
1930s - 70s
TRADING STAMPS
1980s
DEREGULATIO...
WE CONTINUE TO
INVEST…
IT MATTERS TO THE MARKET
S&P 500
High Focus on
Loyalty Programs
Low Focus on
Loyalty Programs
Source: McKinsey Corporate P...
-1%
revenue
growth
DONE WRONG =

RISK MARGINS
-10%
lower
EBITDA
A DISCOUNT CARD
IS NOT ENOUGH
ONE SIZE
DOES NOT FIT ALL
LOYALTY NEEDS
NURTURING
DOING THE SAME AS OTHERS LEADS TO FAILING IN THE SAME WAY
Customer

engagement
ROI over
time
SO.. WHAT COULD
BE DIFFERENT?
HOW TO SHAPE
YOUR FUTURE?
WHERE DID IT GO
WRONG?
HOWWHAT WHEN
HOW DO YOU USE
WHAT YOU KNOW
ABOUT ME?
ENTERTAIN
EDUCATE
ENGAGE
WHAT IF, INSTEAD OF BUYING LOYALTY, WE RECLAIMED
WHAT CREATES IT?
Quality
Meeting Needs
Consistency
Availability
Enjoyment...
WHAT WOULD DIFFERENT LOOK LIKE?
Connected
PersonalRelevant
Contextual
Customer
Centered
CONTEXTUAL
PLACE
PURPOSE
PERSONAL
RELEVANT
EXPERIENCES
SERVICE
ACCESS
PRESTIGEPRODUCT
PRICE
54%More spend
2xMore referrals
83%More Engaged
CONNECTED
LOYALTY IS AN EMOTION
A crowd is a tribe without a leader.
A crowd is a tribe without communication.
Most organisations sp...
29
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CUSTOMER-CENTRED
Big
Data
Ubiquitous
Touch
Cloud
Insight Engage
Anywhere
Responsive
Adaptable
Data Ubiquitous
Touch
Cloud
SO.. WHAT COULD
BE DIFFERENT?
HOW TO SHAPE
YOUR FUTURE?
WHERE DID IT GO
WRONG?
So how do you
break the cycle of
self-abuse?
1. CONTEMPLATE: WHAT IS YOUR WHY?1. CONTEMPLATE: DEFINE YOUR CUSTOMER’s WHY
38
2. PREPARE: DESIGN THE EXPERIENCE
BUILDING PROGRAM ELEMENTS THAT DELIGHT CUSTOMERS
Functional
Reliable
Usable
Pleasurable
Meaningful
YAY!
Convenient
Focused...
42
95%
engagement
rate
3. TAKE ACTION: TEST AND EXPERIMENT
TIME
DEGREEOFCOMMITMENT
Traditional programs
Experimentation
Moments of delight
Standard, static
program
Long cycles,
then relaunch
4. MAINTAIN: IT’S NOT JUST “ONE AND DONE”
Today Future Vision
IDEA

ST...
CREATE THE PLATFORM FOR EXPERIMENTATION
Concept
Ideas and
prototypes
Explore with
customers
Pilot
Few segments/
sites
Cont...
THE PATH TO CONTINUOUS LOYALTY
Baking innovation
into the mindset
and culture of your
brand and people
Creating a
capabili...
47
• Not all customers are created equal. Avoid over-
investing by being all things to all people
• Value is variable. Custom...
Dianne Inniss
dinniss@thoughtworks.com
THANK YOU
Dan McMahon
dmcma@thoughtworks.com
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