Whether you’re a retailer, a bank, or a travel business, everyone is looking for ways to create a deeper sense of connection with customers and gain their loyalty.
Somewhere through history we lost our way. Instead of building real loyalty, we became trapped by reward programs founded on the exchange of tokens for transactions. We’ve invested significant time, money, and energy in programs that are increasingly homogeneous and non-differentiating in the eyes of consumers.
In this presentation Dianne Inniss, a retail customer experience and strategy leader, provides practical advice for how to move brands towards a differentiated future built on real customer loyalty.
4. WE HAVE BECOME VICTIMS OF HISTORY AND HABIT
1700s
COPPER TOKENS
1800s
COUPONS
1930s - 70s
TRADING STAMPS
1980s
DEREGULATION
1990s
DIGITIZATION
2000s
MOBILE
TOOLS
6. IT MATTERS TO THE MARKET
S&P 500
High Focus on
Loyalty Programs
Low Focus on
Loyalty Programs
Source: McKinsey Corporate Performance Analysis Tool – Returns on 55 major companies with a high/low focus on loyalty programs.
Index
SHAREHOLDERS
HAVE REWARDED
COMPANIES FOR
HAVING A FOCUS
ON LOYALTY
16. WHAT IF, INSTEAD OF BUYING LOYALTY, WE RECLAIMED
WHAT CREATES IT?
Quality
Meeting Needs
Consistency
Availability
Enjoyment
Recognition
Value
EXPERIENCE
17.
18. WHAT WOULD DIFFERENT LOOK LIKE?
Connected
PersonalRelevant
Contextual
Customer
Centered
28. LOYALTY IS AN EMOTION
A crowd is a tribe without a leader.
A crowd is a tribe without communication.
Most organisations spend their time marketing the crowd.
Smart organisations assemble the tribe.
SETH GODIN
41. BUILDING PROGRAM ELEMENTS THAT DELIGHT CUSTOMERS
Functional
Reliable
Usable
Pleasurable
Meaningful
YAY!
Convenient
Focused on experiences
Focused on tasks
FEW PROGRAMS
CROSS THIS LINE
43. 3. TAKE ACTION: TEST AND EXPERIMENT
TIME
DEGREEOFCOMMITMENT
Traditional programs
Experimentation
Moments of delight
44. Standard, static
program
Long cycles,
then relaunch
4. MAINTAIN: IT’S NOT JUST “ONE AND DONE”
Today Future Vision
IDEA
STREAMS
INNOVATION
CAPABILITY
BUILD, TEST &
LEARN
GO
STOP
PIVOT
45. CREATE THE PLATFORM FOR EXPERIMENTATION
Concept
Ideas and
prototypes
Explore with
customers
Pilot
Few segments/
sites
Continue learning
Scale up
Refine and
expand
Manage capacity
Rollout
Loyal, free
and paid
Mainstream
Evolve
Becomes
commodity
Change the game
46. THE PATH TO CONTINUOUS LOYALTY
Baking innovation
into the mindset
and culture of your
brand and people
Creating a
capability that
evolves with your
customers over
time
48. • Not all customers are created equal. Avoid over-
investing by being all things to all people
• Value is variable. Customers value more than money.
Successful programs depend on understanding the right levers
• Experience matters. Moments of connection and
relevance drive repeat behavior
• Test, learn, repeat. Design for iterative tests and take
advantage of test data for continuous delivery and refinement
TAKE-AWAYS