Loyalty & Retention for SME's - PrestaShop BarCamp5
1. Growing With Your Customers:
Retention & Loyalty for SMEs
Your Name March 20, 2012 - Barcamp 5 PrestaShop
Steve Deckert - Marketing Manager
Mike Rossi – VP Business Development
2. Our Background
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• Over 1,300 merchants use Sweet Tooth
• Official PrestaShop Partners
3. Keep Your Phone On!
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@getsweettooth
&
@pointsadvisor
4. We’re Coming to PrestaShop!
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www.sweettoothrewards.com/prestashop
March 20, 2012 - Barcamp 5 PrestaShop
5. About Us
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Steve Deckert
•Marketing Manager
•Consulted several hundred merchants on loyalty
program best practices
•@stevedeckert
March 20, 2012 - Barcamp 5 PrestaShop
6. About Us
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Mike Rossi
•VP Business Development
•Created Sweet Tooth Partner Program
•@mike_r3
March 20, 2012 - Barcamp 5 PrestaShop
7. Goals of This Presentation
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• Importance of Customer Retention
• How Loyalty Works
• Your Options for Customer Loyalty
• A New Way to Measure Customer Loyalty (NPS)
March 20, 2012 - Barcamp 5 PrestaShop
8. Customer Acquisition & Retention
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Theory & Importance
March 20, 2012 - Barcamp 5 PrestaShop
9. Customer Acquisition & Retention
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CustomerChurn
Customer Acquisition
11. Customer Acquisition
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eCommerce Examples:
•SEO
•Advertising & Promotions
•Group Purchasing
•Flash & Private Sales
•Paid Search
March 20, 2012 - Barcamp 5 PrestaShop
Customer Acquisition
12. Customer Acquisition
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Filling the Bucket
•How much have you spent?
•How effective is it?
•What is the trend over time?
March 20, 2012 - Barcamp 5 PrestaShop
Customer Acquisition
14. Customer Acquisition
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On average, businesses spend only
20% of their marketing budget on
customer retention
- Joseph Jaffe, Flip The Funnel
March 20, 2012 - Barcamp 5 PrestaShop
15. Customer Acquisition
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Why so Much?
•Customer Experience vs. LTV
•Easier to Understand & Execute
•Sales Team Perspective
March 20, 2012 - Barcamp 5 PrestaShop
Customer Acquisition
17. Customer Retention
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Plugging the Holes
•Decreasing the Amount of Churn
•Increasing the CLTV
March 20, 2012 - Barcamp 5 PrestaShop
CustomerChurn
18. Customer Retention
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Plugging the Holes
•A 5% increase in customer
retention provides up to a 95%
profitability boost
- Bain & Company
March 20, 2012 - Barcamp 5 PrestaShop
CustomerChurn
19. Customer Retention
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eCommerce Retention Examples:
•Customer service
• e.g. Zappos
•Loyalty Programs
• Different Types
•Surveys & Feedback
• Even just listening
•Churn Prediction Systems
• Mainly used by banks, finance, etc
March 20, 2012 - Barcamp 5 PrestaShop
CustomerChurn
20. Customer Retention
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Plugging the Holes:
•Tends to be a Lower Priority
•A Solid Differentiator
•Gaining Traction
March 20, 2012 - Barcamp 5 PrestaShop
CustomerChurn
21. Loyalty by the Numbers
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Where is Loyalty Now?
March 20, 2012 - Barcamp 5 PrestaShop
22. Loyalty by the Numbers
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23. Loyalty by the Numbers
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24. Loyalty by the Numbers
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“There’s a difference between loyalty and
a loyalty program.”
- Simon Sinek
March 20, 2012 - Barcamp 5 PrestaShop
25. Loyalty by the Numbers
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26. Customer Loyalty in eCommerce
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Types of eCommerce Loyalty Programs
•Gamification
•Point-Based Systems
• Whitelabel & Consolidated
•Social & Referral
•Status-based
March 20, 2012 - Barcamp 5 PrestaShop
27. Customer Loyalty in eCommerce
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Delivering the Unexpected
•Provide something that other retailers can’t, or won’t
•Induce positive emotions towards your brand
•Example: rewarding customers on their birthday
without advertising it
March 20, 2012 - Barcamp 5 PrestaShop
32. Customer Loyalty in eCommerce
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“Loyalty is… the feeling a human being has
towards an organization”
- Simon Sinek
March 20, 2012 - Barcamp 5 PrestaShop
33. Customer Loyalty in eCommerce
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A 5% increase in customer retention
provides up to a 95% profitability boost
- Bain & Company
March 20, 2012 - Barcamp 5 PrestaShop
34. Measuring Loyalty & Satisfaction
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Net Promoter Score (NPS)
How much do your customers love you?
March 20, 2012 - Barcamp 5 PrestaShop
36. Net Promoter Score
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A way to measure and:
•IMPROVE strong points in customer experience
March 20, 2012 - Barcamp 5 PrestaShop
37. Net Promoter Score
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A way to measure and:
•IMPROVE strong points in customer experience
•REMOVE shortfallings in customer experience
March 20, 2012 - Barcamp 5 PrestaShop
38. Net Promoter Score
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A way to measure and:
•IMPROVE strong points in customer experience
•REMOVE shortfallings in customer experience
•GAUGE customer opinion of our brand
March 20, 2012 - Barcamp 5 PrestaShop
39. Net Promoter Score
Your Name
A way to measure and:
•IMPROVE strong points in customer experience
•REMOVE shortfallings in customer experience
•GAUGE customer opinion of our brand
•GAUGE customer potential to refer/promote
March 20, 2012 - Barcamp 5 PrestaShop
40. Net Promoter Score
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A way to measure and:
•IMPROVE strong points in customer experience
•REMOVE shortfallings in customer experience
•GAUGE customer opinion of our brand
•GAUGE customer potential to refer/promote
•When they refer their friends, it is their credibility on the
line!
March 20, 2012 - Barcamp 5 PrestaShop
41. Net Promoter Score (NPS)
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• Fred Reichheld, 2003
• The One Number You Need To Grow
Harvard Business Review
• Maybe not the only number…
March 20, 2012 - Barcamp 5 PrestaShop
42. Net Promoter Score (NPS)
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How does it work?
March 20, 2012 - Barcamp 5 PrestaShop
43. Net Promoter Score (NPS)
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How does it work?
Follow this up with an open ended question:
Why did you rate this way?
March 20, 2012 - Barcamp 5 PrestaShop
44. Net Promoter Score (NPS)
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• Now we can gauge our customer’s perception of our
brand and what has influenced it
March 20, 2012 - Barcamp 5 PrestaShop
45. Net Promoter Score (NPS)
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• Now we can gauge our customer’s perception of our
brand and what has influenced it
• Repeat this process for a large sample size
March 20, 2012 - Barcamp 5 PrestaShop
46. Net Promoter Score (NPS)
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• Now we can gauge our customer’s perception of our
brand and what has influenced it
• Repeat this process for a large sample size
• When to send out a survey
March 20, 2012 - Barcamp 5 PrestaShop
47. Net Promoter Score (NPS)
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Who is Who?
Detractors
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48. Net Promoter Score (NPS)
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Who is Who?
Passives
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49. Net Promoter Score (NPS)
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Who is Who?
Promoters
March 20, 2012 - Barcamp 5 PrestaShop
50. Net Promoter Score (NPS)
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What to do With These Numbers
March 20, 2012 - Barcamp 5 PrestaShop
51. Net Promoter Score (NPS)
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What to do With These Numbers
March 20, 2012 - Barcamp 5 PrestaShop
52. Net Promoter Score (NPS)
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What to do With These Numbers
March 20, 2012 - Barcamp 5 PrestaShop
53. Net Promoter Score (NPS)
Your Name
What to do With These Numbers
March 20, 2012 - Barcamp 5 PrestaShop
54. Net Promoter Score (NPS)
Your Name
What to do With These Numbers
March 20, 2012 - Barcamp 5 PrestaShop
55. Net Promoter Score (NPS)
Your Name
What to do With These Numbers
March 20, 2012 - Barcamp 5 PrestaShop
56. Net Promoter Score (NPS)
Your Name
What to do With These Numbers
March 20, 2012 - Barcamp 5 PrestaShop
57. Net Promoter Score (NPS)
Your Name
What to do With These Numbers
March 20, 2012 - Barcamp 5 PrestaShop
58. Net Promoter Score (NPS)
Your Name
What to do With These Numbers
March 20, 2012 - Barcamp 5 PrestaShop
59. Net Promoter Score (NPS)
Your Name
What to do With These Numbers
March 20, 2012 - Barcamp 5 PrestaShop
60. Net Promoter Score (NPS)
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What to do With These Numbers
•Scores range from -100 to +100
March 20, 2012 - Barcamp 5 PrestaShop
61. Net Promoter Score (NPS)
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What to do With These Numbers
•Scores range from -100 to +100
•Best companies have scores ~75
March 20, 2012 - Barcamp 5 PrestaShop
62. Net Promoter Score (NPS)
Your Name
What to do With These Numbers
•Scores range from -100 to +100
•Best companies have scores ~75
•Median ~15-20 and varies by industry
March 20, 2012 - Barcamp 5 PrestaShop
63. Net Promoter Score (NPS)
Your Name
Why Am I Collecting These Numbers?
•IMPROVE strong points in customer experience
•REMOVE shortfallings in customer experience
•GAUGE customer opinion of our brand
•GAUGE customer potential to refer/promote
•When they refer their friends, it is their credibility on the
line!
March 20, 2012 - Barcamp 5 PrestaShop
64. Net Promoter Score (NPS)
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Why Am I Collecting These Numbers?
NPS score has been directly correlated to…
LONG TERM COMPANY GROWTH
March 20, 2012 - Barcamp 5 PrestaShop
69. Summary
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• Importance of Customer Retention
• How Loyalty Works
• Your Options for Customer Loyalty
• A New Way to Measure Customer Loyalty
March 20, 2012 - Barcamp 5 PrestaShop
70. Want To Talk Loyalty?
Your Name
www.sweettoothrewards.com
@getsweettooth
March 20, 2012 - Barcamp 5 PrestaShop
www.points.com
@pointsadvisor
