the future of loyalty - aimia · the future of loyalty ... meaningful customer segmentation ......
Post on 20-Apr-2018
218 Views
Preview:
TRANSCRIPT
1
The Future of LoyaltyRupert Duchesne
President & C.E.O. Groupe Aeroplan Inc.
2
Today’s TalkTrends that are shaping our collective futures
The Rise of the Datarati
The Evolution ofBest Customers
Credit Card Rewardsunder Pressure
3
CoalitionProprietary Loyalty Services
Data Analytics
2007• Long term
relationships with Sainsbury’s & over 100 FMCGs participants
• New CVS relationship in US
• Over 130 based in 7 countries
• Territory: UK, US with international expansion plans
1984• Over 4M active
members, • Over 75 earn /
150 brands • Over 600 non-air
rewards• More than 1,200
Employees• Customer level
insights• Multi channel
communication
1938
2009 2007 2001 2007 2007
NewNe...
Investments
20101996
• Operating in Mexico
• GrupoAeroMéxicopartner and majority shareholder
• Major Amex relationship
• 2.5M members
1938• Loyalty
Marketing services
• Events and Entertainment
• Reward program operations
• Decision Sciences
• Over 2000 employees
• Territory: Global
NewNe...
2010
Groupe AeroplanNow more than an FFP
GA Ownership GA Ownership GA Ownership GA Ownership 75% GA Ownership 60% GA OwnershipMinority GA Investment
2002• 17M collectors /
over 50% UK HH• 14 earn partners
& 450+ online • 16 burn partners• Unique 360°
customer insight• Multi channel
communication
2010• 5.7M 1st swipes
by end of year 23% of Italy HH
• 8 earn partners (now Unicredit)
• Grocery, gas, bank, electronics, financial, car rental
• Strong eStoresproposition and Quixa (insurance)
2001• Operating in 7
countries• 130 partners• HSBC core
partner and 40% shareholder
• Multi channel communication
4
Groupe Aeroplan Retail & FFPAeroplan Canada Carlson Marketing
Global Business PortfolioOver 3,500 people in more than 15 countries
5
•“Datarati are companies that have the edge in consumer data insight”
•“Data is ubiquitous & cheap, analytical ability is scarce”
•“The sexiest job in the next ten years will be statistician”
Why is data so important to Google?
The Rise of the Datarati
Hal VarianGoogle Chief Economist
ad with highest click through
your query data gathered about youbid pricing
6
The Rise of the DataratiAggregating your behaviour
Other companies are hot on Google's heels
7
Good News
• Other companies envy the amount of customer data available to an airline
• Unlike Facebook and Google, airlines have permission to use their customers’ data
Do not remain on the sidelines.
The Rise of the DataratiWhy is this trend so important for airline loyalty marketers?
Bad News
• Airline legacy systems make it difficult and expensive to aggregate
• The Datarati companies are already considerably further advanced in the application of consumer insights
If you do not use your data to talk to your customers, others will.
8
The Rise of the DataratiWant to become a Datarati?
Hire many, many more“sexy” statisticians
(No, really!)
Invest in the aggregation of all your airline’s data in
a customer centric manner
Use data in day to daydecision making:
Meaningful customer segmentation
Behaviour prediction
Product design
More relevant offers
9
Credit Card Rewards under Pressure
Three converging trends
Recession
Regulation
Innovation
10
Consumer Revolving Debt
-9.6%
2009 2010 - May
-10.5%
(Annualized)
Retail Sales
3.1%
All data for the United States
(Annualized)
MC Usage 2010 vs. 2009
Credit Card Rewards under Pressure
Recession
-4.9%
2009 2010 - June
Credit Cards Debit Cards
10.5%-13%
Source: MasterCard annual report, US Federal Reserve
11
Credit Card Rewards under Pressure
Regulation
2010 consumer protection guidelines• more transparency• reasonable fees• further government evaluations
2004 regulation+47-77% annual feeson rewards cards
Changing reward value propositions
Shift in preferred payment form
Anticipate & mitigate potential regulatory changes
Potential
12
Efficient new forms of payment cutting out credit card infrastructure
$50bn / y paymentsoutside traditional networks
Transfer money via phoneusing only a PIN
On-line purchase chargeto mobile phone bill
Credit Card Rewards under Pressure
Innovation
Virtual currenciesfor virtual services
13
Don't be shy –investigate new payment
method opportunities
Evolve co-branded productswith unique soft benefits
Credit Card Rewards under Pressure
Implications
Evolve your financial card strategies
Work with financial partner to strengthen relationship with your collective customer
Expand coalitionvalue proposition
14
Redefine who your most important customers are:Value = RFM + social influence
Evolution of Best CustomersLoyalty in the hands of your customer
Identify, attract and reward customers based on proximity to points of sale
Track online / offline conversionUse smartphones for relationship building
Clare M. in Glasgow City:wrote a tip @ Boots: Always busy. Be prepared to wait at least 10 mins for a prescription, but the staff are lovely
Recognize word of mouth, reward promoters and monitor detractors
15
Evolution of Best CustomersImplications
Focus on customer experience
• Re-engineer your business• Compelling member experience through all channels• Listen to your customers' reaction!
Don't forget the basics• Loyalty marketing has 30 year track record and its principles remain true today
Temper innovation with strong measurement• Social media activity alone does not bring revenues
• Demand solid plans and KPIs, not just concepts
16
The Future of Loyalty…Next 25 years won't be more of the same!
Keep finding innovative ways
to use your FFP currency
Keep pulse on changes
Spot new behaviours throughcorrelations in your data and use them to predict
your customers’ future behaviour
Remain flexible and nimble
Join the tribe ofthe Loyalirati!
17
top related