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STATE OF
LOYALTY
Customer Insight Group, Inc.
• Systematic New Loyalty Program
• Loyalty Audit
• Loyalty Navigator
• Custom Loyalty Worksho...
Your Presenter Today
Strategist. Leader. Innovator.
 President of Customer Insight Group, a
leading strategic customer re...
What is loyalty marketing?
Loyalty:
Loyalty Marketing:
Customer’s faithfulness; advocacy, devotion; constancy
Discipline o...
Loyalty marketers want programs
that engage and retain.
60%
59%
39%
35%
31%
Customer Engagement
Customer Retention
Profita...
How is loyalty marketing evolving?
 Development has been directly related to advances in IT an POS
 Future developments ...
10 Loyalty Marketing Trends for
2014
7
1) Consumers care about loyalty
programs.
82.4%
MORE LIKELY TO SHOP
AT A COMPANY WITH A
LOYALTY PROGRAM
8
Customer Insight...
IN 2015 ON AVERAGE, AMERICAN CONSUMERS
ARE MEMBERS OF
LOYALTY PROGRAMS
2) Consumers see value in enrolling
in loyalty prog...
3) Loyalty marketers are NOT
engaging their members.
45% customer base
enrolled in loyalty
programs
35% enrolled
members
r...
4) Social rewards are NOT
primary drivers of participation.
83.3%
consumers less likely to
participate in a program
that r...
57%
2013
64%
2014
5) Loyalty points can be used
to influence purchase behavior.
“I modify when and
where I buy items to
ma...
6) Non-monetary program benefits
are important.
79%
71%
70%
62%
57%
49%
40%
36%
30%
21%
Discounts
Cashback
Rebates
Earn St...
53% consumers say most
marketing and advertising has very
little relevance to them.
51%
Loyalty marketers
DON’T know who t...
8) Millennials’ Switch Brands to
Get More Loyalty Program Benefits
15
Customer Insight Group, Inc. All rights reserved. • ...
9) Loyalty programs drive
completed purchases.
16
Customer Insight Group, Inc. All rights reserved. • www.customerinsightg...
10) Loyalty programs attract new
customers.
Improve
Customer
Acquisition
by up to
10%
Increase Market
Share by
20%
17
Cust...
Loyalty programs out of sync…
 CUSTOMER
 More demanding, more choices
 Trust is key to keeping customer
loyalty
 Parti...
Client Experience
Questions?
Sallie Burnett
Customer Insight Group, Inc.
Email: sallie@customerinsightgroup.com
Social Media Library
http://www.customerinsightgroup.com/loyaltyblog
Infographics
http://www.customerinsightgroup.com/loya...
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State of Loyalty Marketing

Loyalty Marketing is the discipline of identifying and nurturing the yield of best customers through a long-term, reciprocity, value-added relationship.

In this presentation you will learn how loyalty marketing is evolving and the top 10 loyalty marketing trends.

Loyalty and retention marketing programs are evolving. New opportunities exists for brands seeking to increase customer retention and strengthen customer loyalty and brand preference. In this presentation I outline some of the latest trends in customer loyalty and customer rewards programs.

Who is Customer Insight Group, Inc.?
Customer Insight Group is a leader in building brand loyalty for the world’s most influential and valuable brands. We help companies engage, keep and grow more profitable customer relationships. We leverage customer insight to deliver the right message to the right customer via the right channel at the right time. The bottom line is we focus your marketing dollars to get the biggest bang for your buck. The result? Long-term customer relationships and maximized margins.

Resources:
Twitter - http://twitter.com/sallieburnett
Loyalty Blog - http://www.customerinsightgroup.com/loyaltyblog/
Loyalty Workshops - http://www.customerinsightgroup.com/custom-loyalty-workshops
LinkedIn Group - http://linkd.in/LinkedInDiscussion
White Papers & eBooks - http://www.customerinsightgroup.com/white-papers

All rights reserved. • www.customerinsightgroup.com • +1 303.422.9758

State of Loyalty Marketing

  1. 1. STATE OF LOYALTY
  2. 2. Customer Insight Group, Inc. • Systematic New Loyalty Program • Loyalty Audit • Loyalty Navigator • Custom Loyalty Workshop • Cause Marketing Exploration • Social Media Roadmap • Social Media Navigator • Custom Social Media Workshop • Data mining • Market research • Modeling • Profiling • Response analysis • Segmentation • Social media monitoring • Usage and attitudes • Audience targeted creative • Blogs • Content • Direct mail • E-mail design • Landing pages • Manage online conversations • Mobile marketing • Program management • Social media • Website design and content Insight Strategy Execution Customer Relationships – Engage. Keep. Grow.
  3. 3. Your Presenter Today Strategist. Leader. Innovator.  President of Customer Insight Group, a leading strategic customer relationship- marketing firm  Digital Marketing Professor  2009 Direct Marketer of the Year
  4. 4. What is loyalty marketing? Loyalty: Loyalty Marketing: Customer’s faithfulness; advocacy, devotion; constancy Discipline of identifying and nurturing the yield of best customers through a long-term, reciprocity, value-added relationship. 44 Customer Insight Group, Inc. All rights reserved. • www.customerinsightgroup.com • +1 303.422.9758
  5. 5. Loyalty marketers want programs that engage and retain. 60% 59% 39% 35% 31% Customer Engagement Customer Retention Profitability/Revenue Customer Lifetime Value Customer Data Collection 5 Customer Insight Group, Inc. All rights reserved. • www.customerinsightgroup.com • +1 303.422.9758
  6. 6. How is loyalty marketing evolving?  Development has been directly related to advances in IT an POS  Future developments are supported by IT, specifically in the areas of:  Social media  POS  Web 2.0 (iAPPS — web content management solutions)  Mobile  Location or proximity  Ubiquitous, i.e. Hard Rock Rewards S&H Green Stamps Airlines Hotels Rental Cars Credit Cards Retail and Grocery Stores Coalitions Merchant Rewards Instant Rewards Ubiquitous Rewards 1896 Today 6 Customer Insight Group, Inc. All rights reserved. • www.customerinsightgroup.com • +1 303.422.9758
  7. 7. 10 Loyalty Marketing Trends for 2014 7
  8. 8. 1) Consumers care about loyalty programs. 82.4% MORE LIKELY TO SHOP AT A COMPANY WITH A LOYALTY PROGRAM 8 Customer Insight Group, Inc. All rights reserved. • www.customerinsightgroup.com • +1 303.422.9758
  9. 9. IN 2015 ON AVERAGE, AMERICAN CONSUMERS ARE MEMBERS OF LOYALTY PROGRAMS 2) Consumers see value in enrolling in loyalty programs. 9 Customer Insight Group, Inc. All rights reserved. • www.customerinsightgroup.com • +1 303.422.9758
  10. 10. 3) Loyalty marketers are NOT engaging their members. 45% customer base enrolled in loyalty programs 35% enrolled members redeem rewards 16% Total Customers Actually Using Loyalty Programs 10 Customer Insight Group, Inc. All rights reserved. • www.customerinsightgroup.com • +1 303.422.9758
  11. 11. 4) Social rewards are NOT primary drivers of participation. 83.3% consumers less likely to participate in a program that relies on social rewards.. 11 Customer Insight Group, Inc. All rights reserved. • www.customerinsightgroup.com • +1 303.422.9758
  12. 12. 57% 2013 64% 2014 5) Loyalty points can be used to influence purchase behavior. “I modify when and where I buy items to maximize the points I receive for purchases.” “I modify what brands I buy to maximize the points I receive for purchases.” 46% 2013 55% 2014 12 Customer Insight Group, Inc. All rights reserved. • www.customerinsightgroup.com • +1 303.422.9758
  13. 13. 6) Non-monetary program benefits are important. 79% 71% 70% 62% 57% 49% 40% 36% 30% 21% Discounts Cashback Rebates Earn Status Maintain Status Personalized Experience Product/Service… Recognition from Brand Share with People Recognition from Peers 2X MORE IMPORTANT POST ENROLLMENT 13 Customer Insight Group, Inc. All rights reserved. • www.customerinsightgroup.com • +1 303.422.9758
  14. 14. 53% consumers say most marketing and advertising has very little relevance to them. 51% Loyalty marketers DON’T know who their most loyal customers are and how to best reach out the them. 64% Markets say that they are not using data- driven marketing for personalized content. 7) Communications are NOT relevant. 14 Customer Insight Group, Inc. All rights reserved. • www.customerinsightgroup.com • +1 303.422.9758
  15. 15. 8) Millennials’ Switch Brands to Get More Loyalty Program Benefits 15 Customer Insight Group, Inc. All rights reserved. • www.customerinsightgroup.com • +1 303.422.9758
  16. 16. 9) Loyalty programs drive completed purchases. 16 Customer Insight Group, Inc. All rights reserved. • www.customerinsightgroup.com • +1 303.422.9758
  17. 17. 10) Loyalty programs attract new customers. Improve Customer Acquisition by up to 10% Increase Market Share by 20% 17 Customer Insight Group, Inc. All rights reserved. • www.customerinsightgroup.com • +1 303.422.9758
  18. 18. Loyalty programs out of sync…  CUSTOMER  More demanding, more choices  Trust is key to keeping customer loyalty  Participation in loyalty programs increasing  COMMUNICATION  Irrelevant, impersonal messages  New customers/members are forgotten  No customer engagement plan  STRATEGY  Me too value proposition  Launch and put into “auto” drive  Measurement metrics not tied to business goals  INSIGHT  Manage defection, not migration  Data used to run program, not used to run the business  Customer relationships are “siloed” in the organization 18 18 Customer Insight Group, Inc. All rights reserved. • www.customerinsightgroup.com • +1 303.422.9758
  19. 19. Client Experience
  20. 20. Questions? Sallie Burnett Customer Insight Group, Inc. Email: sallie@customerinsightgroup.com
  21. 21. Social Media Library http://www.customerinsightgroup.com/loyaltyblog Infographics http://www.customerinsightgroup.com/loyalty-infograph SallieBurnett on Twitter http://twitter.com/sallieburnett LinkedIn Group http://linkd.in/LinkedInDiscussion Social Media Grader http://www.customerinsightgroup.com/marketinglibrary/social-media-grader White Papers & eBooks http://www.customerinsightgroup.com/white-papers

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