design lounge webinar: leveraging loyalty programs, june 18, 2014
DESCRIPTION
Did you know that companies with well-established loyalty programs have a healthier bottom line? Are you looking for ways to establish or enhance your company’s loyalty program? Strong loyalty programs move beyond points or rewards. A well-designed loyalty program results in incremental gains, turning a customer who spends $X, into a customer who spends $X plus Y% more. In this webinar, you will learn: • The 6 Cs of loyalty, • The steps required to promote and market a loyalty program, • How to avoid making the biggest mistakes when introducing a loyalty program, • How branding can make a loyalty program more successful.TRANSCRIPT
Leveraging Brand Loyalty Programs
Leveraging Brand Loyalty Programs – June 18, 2014
Overview of the Past
• Loyalty Programs were often created as a reactive measure to competition, resulting in weak benchmarking and weak understanding of the customer
• With today’s empowered customer, offering simple “points” or rewards programs is not enough.
Leveraging Brand Loyalty Programs – June 18, 2014
Successful Programs … Only 7-10% of brands provide what the consumer wants: • A sense of empowerment and a sense of
value
• Creating incremental dialogue and mutually beneficial behaviour
• Montreal Transportation Department, Best
Western, American Express, Loblaws.
Leveraging Brand Loyalty Programs – June 18, 2014
How Branding Enhances a Loyalty Program
Leveraging Brand Loyalty Programs – June 18, 2014
• Allows for top-of-mind recall and
allows individuals to associate their behaviours and interactions with the brand
• Brand Coherence: Consistent branding
across the program allows the consumer to identify with the brand
Advice for Introducing a Loyalty Program: • Understand your position: get an outside
perspective of what your customers value (consider hiring a consultant)
• Set lower expectations, and meet or exceed
them • Loyalty program has to focus on what the
customers value in order to reach the top of customer’s consideration set
Leveraging Brand Loyalty Programs – June 18, 2014
Putting Loyalty Programs on People’s Radar
• A true loyalty program is about behaviour
• Successful programs have infused an
entrepreneurial spirit into their organizations
• Successful programs are willing to
take risks in communications with customers (new technology, etc.)
Leveraging Brand Loyalty Programs – June 18, 2014
What is a Loyalty Program?
• Definitions of a loyalty program have
expanded exponentially with CRM, data sets, analytics, etc.
• What loyalty entails is becoming a
bigger part of the budget
• Creating successful program requires involvement of various sections of the organization (CMOs, CFOs, COOs, etc.)
Leveraging Brand Loyalty Programs – June 18, 2014
Sixth ‘C’ of Loyalty:
• 5 Cs of loyalty programs: Commitment, Collaboration, Community, Content, Commerce
• Expanded with the 6th C: Confidence (Organizations must have confidence that they can develop new programs and drive the customer behaviour)
Leveraging Brand Loyalty Programs – June 18, 2014
Unsuccessful Loyalty Programs
• Programs that alienate: Delta
Airlines (spent-based rewards) • Programs with flawed processes:
Sears (flawed technology)
• Programs that do not listen or try to do too much
Leveraging Brand Loyalty Programs – June 18, 2014
J.D. Power and Loyalty Programs • J.D. Power considers Loyalty Programs when
scoring organizations: • Looking at how the loyalty program drives
financial success, incremental return and the cost of managing the customers
• J.D. power helps brands realize what they should
be doing in their loyalty programs
Leveraging Brand Loyalty Programs – June 18, 2014
Affinity Programs That Work Best • Grocery programs (Kroger, Loblaws) do
new things and speak to their customers • The #1 challenge for brands is
understanding what rewards the customer wants: cash back, discount, …, ???
Leveraging Brand Loyalty Programs – June 18, 2014
Effective Incentives for Building Loyalty
• Members seek rational engagement
as well as great experience with the program
• Customers create rational/emotional connection with the brands and programs
• The rewards form should reflect on the customers’ needs
Leveraging Brand Loyalty Programs – June 18, 2014
Private Label Brands
• Incremental spent drives the emotional attachment to private label brands
• The incentive of these programs comes from the price gap between national brands and private label brands
• U.S.-based Programs: Kroger and
Target
Leveraging Brand Loyalty Programs – June 18, 2014
Question Period 1.800.747.5150 Access: 5697142
Leveraging Brand Loyalty Programs – June 18, 2014