This presentation examines how and why merchants should say thank you to their customers, and focus on getting a reputation for being awesome.

1. Social Consumer Loyalty & Rewards
Internet Summit 11/18/2010
Bill Bing
Founder & CEO, Loyalese

2. Background
Bill Bing
Co-founded Loyalese, a social
loyalty platform in early 2010
10 years experience at startups and
in venture capital
Square 1 Financial; worked with and
invested in startups nationwide
Upromise; online coalition loyalty
program with 12 million members
2

3. THANK YOU
3

4. “Valued Customer,
Thank you for your recent
purchase…”
4
Not “Thank You”

5. “5% off your next purchase of
more than $100* if you buy
within the next 24 hours…”
5
Also Not “Thank You”
*offer applies to select items and is subject to change

6. “Please complete this survey to
provide us with feedback so
we can better serve you…”
6
Definitely Not “Thank You”

7. “Customers are issuing a very clear
warning to marketers. Give me relevant
communications that reflect my history
and connections to you, or we will go
elsewhere with our business.”
Sandra Zoratti, VP of Global Solutions Marketing
for InfoPrint Solutions Company
7

8. Be Genuine
Do something with no strings attached
Pretend you’re giving a gift to a friend
Avoid gimmicks that require further action
Even better, do something creative,
personal and relevant
Give gifts that reflect customer interests
Express your brand message through rewards
8

9. Develop a Reputation for
Being Awesome
9

10. Loyal Customers are Essential
Buy more products and services
Provide insight and feedback
Cost less to support
Give you the chance to fix mistakes
Refer new customers and recommend
products to friends
10

11. Case Studies in Awesome
Southwest – a new type of airline
Lexus – outstanding customer service
Bank of America – Museums on Us
Starbucks – using geo-location and
other social tools
11

12. Southwest Makes Flying Fun
Customer-focused approach
No charge for checking bags
First-come, first-served seating
Events for customers at airports
Corporate social responsibility
Active blog and social media presence
12

13. The Lexus Service Experience
Complimentary car washes
Great snacks and personal office space
Program personal electronic settings
Lexus loaners for use during service
No up-selling or unnecessary work
Keeps customers coming back
13

14. Bank of America: Museums on Us
Free admission to 100+ US museums
No strings attached
Creative, valuable offer
Reinforces brand connection by
association through a shared interest
Creates positive word-of-mouth
14

15. Check-in at Starbucks
Integration with mobile apps
Give customers a reason to take action
Simple rewards and discounts
Enhanced brand visibility through user
generated content
Differentiate from competitors
15

16. Value Beats Price
Loyal consumers want value and quality
rather than price and transactions
Consistency and service are key
Companies that care about customers
have customers that care about them
Great experiences get people
talking/blogging/posting
16

17. Super Connectivity
17
Great customer experience 10 years ago
Repeat business
Tell a handful of friends
…and that’s pretty much it
Great customer experience today
Repeat business
Tell hundreds of FB friends and Twitter followers
…and do all this in real time

18. Impact of Social Media
Social drives more traffic than Google
Search directs interest; social creates it
Referrals outperform ads or search
Proven benefit for consumer businesses
Gaming (Zynga), Dating (Zoosk)
Word-of-mouth brings new customers
Source: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/02/14/BUU51C0AMN.DTL
18

19. Search
Comparison
Commodity
Bad Math
19

20. Social
Awesome
Loyalty
Good Math
20

21. Conversion
(Point of Sale)
Customer
Service &
Retention
Customer
Acquisition
E-commerce Cycle
21
Loyalty
happens here

22. When Was the Last Time…
This:
Or this: Led to this:
Or this:
http://www.joemonahansnewmexico.blogspot.com/2009_01_01_joemonahansnewmexico_archive.html
http://crfidm.com/new_page_1.htm
http://www.marketing24h7.com/world-mouth-advantage-disadvantage/
http://s.fatwallet.com/static/attachments/24703_staples10_offoneitem12_20_09to12_26_09.jpg
Sources:
22

23. Takeaways
Become awesome
Get loyal customers
Use social tools and creative rewards
to help them tell their friends
Get more loyal customers
23

24. THANK YOU
24
@BillNBing bill@loyalese.com