engage magazine issue 7: delvering dynamic customer engagement in 2016

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ISSUE 7 | 2016 Delivering dynamic customer engagement in 2016

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Page 1: Engage Magazine Issue 7: Delvering dynamic customer engagement in 2016

ISSUE 7 | 2016

Delivering dynamic customer engagement in 2016

Page 2: Engage Magazine Issue 7: Delvering dynamic customer engagement in 2016

Contents

As this year’s marketing plans

and contact strategies are now underway, as you’d expect the focus has been upon ensuring relevance and understanding the target customer groups.

“The Millennials” (born between 1980s -2000s) are one of the largest generations in history who are about to move into their prime spending years, so as you’d expect this is a group being discussed a lot.

I sit within the Generation X category so can I really understand the Millennials – but I wondered how far off relating to them I am!

So I did a quick survey: “How millennial am I?”* I answered questions such as my views on social media, whether I have piercings, how I reference news etc. The result was that I was 57% like a Millennial. Generation X would normally be 33% on this scale. So what made me more Millennial-like? Perhaps the nose piercings back when I was 25 might have brought my rating up (23% of Millennials have piercings compared to the 9% of Generation X), but clearly as a consumer the stats prove I’m some way off their wavelength.

When I read more about this customer group, I recognise the areas where I am different. Media-wise I may have a LinkedIn profile but I don’t do Facebook and Twitter is purely work-related. I read the news online and on my phone, I don’t do Twitter moments for my real-time news feeds and have never used Snapchat. From an economic perspective I don’t have a student loan, I’m not still living with parents and I’m not trying to get on the housing market. I am still of the ownership mentality rather than the sharing economy (buying a car rather than renting).

Trying to put yourself in the “shoes” of the customer is not always easy and I knew that before I did the survey, but it did make me focus on key influences and motivations of this group and reaffirmed the reason why customer inclusion, research and insight on behaviours is even more critical to the planning process. We must take the customers’ outlook into account and use it when considering benefits and offers, as well as how and where we will collect data. This way we base the customer experience on their perspective and not on our gut feel.But don’t stand still - we’ll shortly be talking about the Screenagers…. they’ll soon be the group we need to be planning product developments for.

Thanks for reading!General Manager

Hi

1 > Introduction from Lindsey

2 > Loyalty programme members are worth 121% more online

> 5 ways to tell your customer experience and engagement strategy is behind the times

3 > Top tips for delivering dynamic customer engagement in 2016

6 > I’m thinking... we can help

> Give NFC the credit it deserves

ISSUE 7 | 2016

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*Quiz via PewResearching .org

Page 3: Engage Magazine Issue 7: Delvering dynamic customer engagement in 2016

Loyalty programme members are worth 121% more onlineThe objective

One of our high street fashion partners had little insight into their non-loyalty programme customers, and asked us to provide insight as to who these customers are and how they compared to a loyalty programme customer.

The result

Our analysis found that:

The approach

We analysed 12 months of customer transactional behaviour to provide insight into the following:

This allowed us to demonstrate to the retailer the revenue opportunities for converting non-loyalty programme customers to join the loyalty programme.We also put together a series of recommendations for the retailer, including an engagement strategy and methods to increase overall online retention rates.

• Key customer demographics

• Key spend metrics

• Product purchasing insight for online customers

• Recency, Frequency and Value model for the retailer’s non-loyalty online customers

• Annual online sales trends across loyalty and non-loyalty customers

• Repeat purchase patterns between 1st, 2nd and 3rd transactions

• The retailer’s loyalty programme members are worth 121% more online than non-loyalty customers

• Non-loyalty online customers who join the loyalty programme deliver an additional £100 per customer online

• Retention is a major challenge for non-loyalty shoppers, with 20% of them being retained, compared to 44% of loyalty programme customers

In Focus

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5 ways to tell your customer experience and engagement strategy is behind the times

You don’t know the ROI of your marketing spend

You think customer loyalty is dead

Your business is operating in silos

You’re not delivering a consistent customer experience

Make sure you’re only collecting data that is relevant and can be turned into actionable insight to understand customer patterns and behaviours. Ask yourself ‘So what? What’s the data telling me?’

Can you demonstrate the effect your marketing efforts have on profitability? A data driven marketing approach allows you to put numbers against engagement to spend your budget on the channels and campaigns that work.

There’s a new way to describe loyalty - does ‘customer engagement’ sound familiar? We all know that it’s increasingly challenging to keep customers coming back, so it’s never been more important to invest in customer engagement.

Customer-centricity is vital to the modern business and yet many are still operating in silos. Invest in teams that focus on optimising the customers’ journey and experience across touch-points.

However customers choose to interact with you, your brand should look, act, and feel the same. This minimises customer effort and makes processes and journeys more streamlined.

Read the full Top 10 ways to tell your customer experience and engagement strategy is behind the times at:ikanoinsight.com/media-room/insight-blog

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You’re not using insight to better understand andserve your customers

Page 4: Engage Magazine Issue 7: Delvering dynamic customer engagement in 2016

The always-oncustomer is

constantly being presented with more and more channels, methods and technologies to interact with brands, and their journey is becoming less linear by the day.

For everyone involved in customer engagement, it’s becoming harder to interpret the trends that are here to stay and to decipher which are just passing fads. To help you conquer the complex customer battleground, here are our top five tips for delivering dynamic customer engagement this year:

1. Embrace mobile disruption

Mobile will continue to grow as a disruptor at each stage of the customer journey.

Customers can now interact with your brand at any time, anywhere, and via any channel; from the comfort of their sofa to the train to work, and most significantly, ‘showrooming’ whilst in your store – and what they find will most likely affect their purchase decision. Regardless of where they are on their journey, what customers want most is a streamlined, contextual experience to find information or to assist purchasing. If they don’t get that, chances are they will move on to your competitors.

Top tips for delivering dynamic customer engagement in 2016

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Page 5: Engage Magazine Issue 7: Delvering dynamic customer engagement in 2016

2. Let customer experience drive your decision-making

The lines between online and offline are becoming increasingly blurred. Bricks and mortar stores are adopting digital technologies such as mobile payment and virtual fitting rooms, and are equipping staff with iPads to create engaging and increasingly bespoke experiences.

Consumers don’t see a difference between online and offline, and businesses need to evolve to reflect this. As a first priority the silos in the marketing department need to be broken down because collaboration is key – digital, offline, IT and eCommerce teams need to come together to meet customer expectations. A culture of customer-centricity needs to be maintained to ensure that you are an agile, customer-focused and forward-thinking business that can withstand the changing consumer landscape for years to come.

3. Win the loyalty of your Millennials

Millennials are no stranger to shopping around. They are open to new brands, products and services and they aren’t afraid to switch, but despite this they can be incredibly loyal - 80% of them keep coming back to the brands/products they like1. Get the customer experience right, and your Millennials could be loyal for life. A quarter believe that they and others their age are more loyal to their favourite brands than their parents are to theirs2.

Whilst they are open to being engaged and connecting with the brands they love, Millennials expect to receive something of value in return. They want to earn rewards for more than just purchasing, and will quite happily share your content or write reviews, but they understand the power of Word of Mouth. To maintain this culture of sharing, reward them for it – it could be as simple as offering special discounts or exclusive access for sharing content.

Key to keeping Millennials engaged in a loyalty programme is offering them variety. Keep your loyalty proposition fresh and interesting to keep them coming back.

4. Recognise that data is now currency

It’s not just brands that are wise to the power of data. Consumers are increasingly becoming aware of the value of their data and are now viewing it as a currency to be exchanged for something in return. The future of data looks set to embrace this, with the world’s “first personal data marketplace” Datacoup allowing customers to earn cash for providing their anonomysed data. Whilst this is an evolving development in the industry, on an individual brand level customers still expect a value exchange for granting you access to their safely guarded personal data.

Digital trust is a key element in the data currency. Remember that security, privacy and control of data will always be important to consumers. In entrusting you with their data, they expect you to treat it with the value it deserves. This will build trust and loyalty and the customer will begin to feel comfortable with sharing more of their data with you, strengthening your relationship and your ability to serve them.

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1 Source: Edelman 2 Source: Marketingcharts

Page 6: Engage Magazine Issue 7: Delvering dynamic customer engagement in 2016

FREE Seminar:Creating Superfans to grow your business and deliver measurable ROI

17th March 2016 9.45am-12.30pm

Waterfront HouseWaterfront PlazaStation StreetNottinghamNG2 3DQ

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5. Evolve your thinking towards customer loyalty programmes

Despite what some may say, customer loyalty is very much alive and kicking – but it must change and evolve in response to increasingly sophisticated customer expectations.

Building customer loyalty is now less about the psychology of collecting points, and more around engaging customers on their terms consistently across all channels to deliver an excellent customer experience.

In the past simply rewarding customers with points could secure their loyalty, but today it is far more complex. Whilst points

remain a really important part of an overall loyalty programme, in isolation they are no longer enough to secure high level customer retention. Customers no longer just interact with your brand when they make a purchase, so loyalty programmes should reflect the overall experience. Social media interactions, gamification, app downloads and check-ins are all areas which can and should be rewarded to keep customers engaged.

Retailers such as Marks and Spencer, John Lewis, Waitrose and Paperchase demonstrate the movement towards mixing up hard and soft reward propositions and putting the customer more in control by allowing them to select their preferences within the programme. What’s also interesting is that each of these retailers all provide

traditional loyalty cards to complement the technology used in their programmes, so the loyalty card is not dead!

Some of our partners’ loyalty programmes have up to an 80% penetration rate! Imagine the impact on your business of being able to recognise and understand 80% of your customers? Effective loyalty programmes generate high levels of data about customers, which can be taken advantage of in marketing efforts to tailor and target your campaigns towards individual customer groups, building relationships and engagement and driving behaviours. The beauty of this is that the results are completely measurable against your ROI.

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For more in-depth information on how to deliver dynamic customer engagement, download our white paper at ikanoinsight.com/media-room/white-papers

On the agenda:

• Mobile: how to embrace the disruption to the customer journey• Customer experience in all areas• The new customer tribes• Data as currency• Evolution of loyalty programmes• Loyalty – a business wide strategy

We’ll help you to conquer the changing face of customer engagement by taking you through the key areas that we think you should be focusing on in 2016 in order to deliver a dynamic customer experience and create Superfans of your brand.

To book your free place, visit: ikanoinsight.com/seminarsLook out for more dates in London and the North coming soon.

Page 7: Engage Magazine Issue 7: Delvering dynamic customer engagement in 2016

I’m thinking we can help

In each edition ofEngage we invite readers to ask us a question about customer engagement, loyalty, CRM, data marketing etc.

What’s first and foremost is that your investment in technology needs to match your specific customer groups, so ask yourself these three questions first of all:

1. How do your customers currently interact with you?2. What would make their journey more streamlined?3. How does the technology deliver experiences which

will increase their loyalty and engagement?

Whatever makes life easier and simpler for your customers is unlikely to meet with resistance as long as the value and benefits of the technology can be communicated.

Considering your on-premise technology, consumers want it to enhance their experience; making it simple and fluid. Kiosks and interactive tablets are an additional touch-point in the customer journey, and can be used to trigger additional engagement and data collection opportunities.

Finally, keep in mind that poorly used technology could simply result in disengagement not only from communications, but from your brand altogether – so choose carefully! You must place your brand fully, intuitively, sensitively, and centrally to how customers expect to interact with and experience your brand.

Do you want to ask a question? Tweet us or email your question [email protected] @ikanoinsight

Give NFC the credit it deservesNear Field Communications (NFC) capabilities appear to be taking a little longer to have a large take up with marketers, but we just can’t understand why!

NFC technology allows two devices near each other (e.g. a mobile phone and a kiosk) to communicate, with no need to open an app. Contactless payments is one of the most obvious applications and its take up has grown significantly over the past 12 months - 1 in 10 card payments made in the UK are now contactless*.

However, in terms of marketing, NFC has not been widely adopted, and we think brands are missing a trick here. Here are a few brilliant examples of how some brands are embracing its capabilities:

• The Greggs Reward app allows customers to receiveoffers, make payments and collect & redeem rewards with a simple tap of their phone.

• In the U.S., retailers including Walgreens & DunkinDonuts have also linked their loyalty programmesto ApplePay, so that when the customer presentstheir phone to make a payment they will automaticallybe allocated loyalty points.

• Android Pay is also growing as an alternative toApplePay and has recently launched a collaborationwith Coke vending machines which sends bothpayment and loyalty data in a single tap.

These examples show that NFC provides clear possibilities for increasingly effortless customer experiences. This allows you to tie together purchase information, loyalty data and offer redemption to a single customer interaction. You can communicate with customers in real-time, delivering them with relevant offers that drive behaviours - not only improving the customer experience, but also incentivising them to keep coming back.

To find out more about how you can utilise NFC to enhance customer experience, get in touch at...ikanoinsight.com/contact-us

*Source: The UK Cards Association

There are so many new technologies out there that promise to deliver impactful customer experiences and grow engagement, but it’s impossible to invest in them all!

How can we determine the best fit for our customers?

It’s so easy to get swept up in the latest tech, particularly when there is so much pressure for brands to ‘keep up.’ It can be very difficult to tell what is really worth investing in - and what will be a long-term solution rather than a fad.

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Page 8: Engage Magazine Issue 7: Delvering dynamic customer engagement in 2016

Ikano Insight is awesomewith data, but even better at relationships.And that, ultimately, is what turns customerloyalty into a business’s success

No matter what stage you are at with your customerengagement we have the intelligent, intuitive insight to help you achieve ROI and drive incremental revenue:

Do you want to build a new loyalty or customer engagement programme?

Do you want to improve an existing one?

Or do you simply want to turn customer data into actionable insight?

www.ikanoinsight.com @ikanoinsight

For more information please contact:UK & Europe: Norway: [email protected] [email protected]

Sweden: Denmark: [email protected] [email protected]