megaevent 2012 conference - crossing the loyalty chasm

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8 th FFP Loyalty Conference 2012 LEAD SPONSORS Cross the loyalty chasm and inspire your audience Kevin Yeow, President, ICLP Americas

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Based on global research commissioned by ICLP in conjunction with Forrester

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Page 1: MegaEvent 2012 conference - Crossing the Loyalty Chasm

8th FFP Loyalty Conference 2012

LEAD SPONSORS

Cross the loyalty chasm!and inspire your audience!

!Kevin Yeow, President, ICLP Americas!

Page 2: MegaEvent 2012 conference - Crossing the Loyalty Chasm

8th FFP Loyalty Conference 2012

The Loyalty Chasm:!The gap between consumers’ !expectations and brand delivery!

Evaluating the global loyalty landscape!

8th FFP Loyalty Conference 2012

Page 3: MegaEvent 2012 conference - Crossing the Loyalty Chasm

8th FFP Loyalty Conference 2012

Key trends and findings!

Real-time rewards !and instant gratification.!

Control, choice!and personalization.!

A more valuable !and relevant currency.!

Emerging markets!are heralding the change.!

8th FFP Loyalty Conference 2012

Page 4: MegaEvent 2012 conference - Crossing the Loyalty Chasm

8th FFP Loyalty Conference 2012

Real-time rewards!and instant gratification!

8th FFP Loyalty Conference 2012

Page 5: MegaEvent 2012 conference - Crossing the Loyalty Chasm

8th FFP Loyalty Conference 2012

Instant and real-time - a loyalty chasm!

Instant crediting , redemption, servicing.!!!

8th FFP Loyalty Conference 2012

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8th FFP Loyalty Conference 2012

Real-time engagement!

!Mobile can facilitate greater instant behaviour.!

Spontaneous burn opportunities.!

8th FFP Loyalty Conference 2012

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8th FFP Loyalty Conference 2012

Real-time: Marriott Rewards!

!“The rules on your points are officially relaxed”!

!

!

8th FFP Loyalty Conference 2012

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8th FFP Loyalty Conference 2012

Please  add  in  the  ICLP  logo  and  you  might  feel  that  it  is  be6er  to  use  the  grey  audience  background  rather  than  this  one  so  please  feel  free  to  play!  

Control, choice!and personalization!

8th FFP Loyalty Conference 2012

Page 9: MegaEvent 2012 conference - Crossing the Loyalty Chasm

8th FFP Loyalty Conference 2012

Give control to the customer!

Greater relevant targeted content / offers.!

Customized and ability to tailor.!Valuing interaction and data provision.!

!

8th FFP Loyalty Conference 2012

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8th FFP Loyalty Conference 2012

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8th FFP Loyalty Conference 2012

Customer control: ChoicePlus Card, Amex!

!“Choose which merchant you want to earn double points with” !

8th FFP Loyalty Conference 2012

Page 12: MegaEvent 2012 conference - Crossing the Loyalty Chasm

8th FFP Loyalty Conference 2012

Please  add  in  the  ICLP  logo  and  you  might  feel  that  it  is  be6er  to  use  the  grey  audience  background  rather  than  this  one  so  please  feel  free  to  play!  

A more valuable !and relevant currency!

8th FFP Loyalty Conference 2012

Page 13: MegaEvent 2012 conference - Crossing the Loyalty Chasm

8th FFP Loyalty Conference 2012

Currency value and utility – a loyalty chasm!

8th FFP Loyalty Conference 2012

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8th FFP Loyalty Conference 2012

Creating greater value and utility!

More options to redeem.!

More options to earn.!

8th FFP Loyalty Conference 2012

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8th FFP Loyalty Conference 2012

!“Shop and earn with hundreds of merchants”!

!

Currency value – Virgin Australia!

8th FFP Loyalty Conference 2012

Page 16: MegaEvent 2012 conference - Crossing the Loyalty Chasm

8th FFP Loyalty Conference 2012

Please  add  in  the  ICLP  logo  and  you  might  feel  that  it  is  be6er  to  use  the  grey  audience  background  rather  than  this  one  so  please  feel  free  to  play!  

Emerging markets!are heralding the change!

8th FFP Loyalty Conference 2012

Page 17: MegaEvent 2012 conference - Crossing the Loyalty Chasm

8th FFP Loyalty Conference 2012

Emerging markets heralding the change!

Challenge the traditional models of loyalty. !

Higher adoption of new channels, such as social media.!Importance of status and peer influence.!

8th FFP Loyalty Conference 2012 8th FFP Loyalty Conference 2012

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!“Share your dream redemption and it could come true” !

Emerging markets – Wyndham Rewards!

8th FFP Loyalty Conference 2012

Page 19: MegaEvent 2012 conference - Crossing the Loyalty Chasm

8th FFP Loyalty Conference 2012

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8th FFP Loyalty Conference 2012

In summary!

Identified today’s gaps!These are relatively quick fixes.!

The new world!Leveraging intelligence and !

creativity to create loyal relationships. !

The next 25 years!More changes than !

we have seen in the past.!

8th FFP Loyalty Conference 2012

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8th FFP Loyalty Conference 2012

LEAD SPONSORS

Thank you.!!!

Kevin Yeow, President, ICLP Americas!!

[email protected]!!

Page 22: MegaEvent 2012 conference - Crossing the Loyalty Chasm

8th FFP Loyalty Conference 2012

Our Heritage

Origo  Marke+ng  Group   Priority  Travel  Group   Insurance  Group  

PTI  

Innova+ve  product  marke+ng  solu+ons  

•  ICLP is one of a number of marketing specialist companies that are part of the Origo Marketing Group, division of the Collinson Group.

Page 23: MegaEvent 2012 conference - Crossing the Loyalty Chasm

8th FFP Loyalty Conference 2012

Who we are

ICLP is a leading specialist loyalty marketing agency with a 25 year track record in the successful delivery of:

•  Global consumer loyalty and partnership marketing •  Full service client focused agency

Global capability:

• 900+ employees • 50 nationalities • 16 wholly-owned offices combining global loyalty best practice with local market insight & execution

Page 24: MegaEvent 2012 conference - Crossing the Loyalty Chasm

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ICLP Worldwide Clients Hotel   Airline Retail IT Finance   Others

Page 25: MegaEvent 2012 conference - Crossing the Loyalty Chasm

8th FFP Loyalty Conference 2012

Full Service CRM - ICLP

Full  Service  CRM  

Strategy  &  Consul+ng  

Analy+cs  &  Repor+ng  

Communica+on  Planning  

Technology    (  Web,  Mobile)  

Reward  Service  

Partnership  Marke+ng  

Call  Center  Services  

Page 26: MegaEvent 2012 conference - Crossing the Loyalty Chasm

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Hotel sector case studies

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Challenge •  Localisation of hotel loyalty program to China market •  Increase local member acquisition •  Drive member engagement throughout the region

What we do: •  ICLP provided a strategic consultancy and program plan to

localise their frequent guest program . •  Implemented a localised earning and redemption benefits

approach •  Created a multi-lingual online member registration website to

facilitate and increase member acquisition •  The program now enables fully localised, relevant and tailored

promotions and communications to its members. •  Developed a loyalty system with dual language capabilities •  Manage and operate Wyndham Rewards call center in China

Results •  100% year on year increase in member growth since 2007. •  Members in China have the highest activity rates amongst all

the hotel group's markets. •  The three tier redemption strategy has increased demand for

low and medium value local non-hotel rewards.

Wyndham Rewards

“ICLP’s  understanding  of  a  global  loyalty  approach  and  their  expert  knowledge  of  the  China  market  was  instrumental  in  successfully  implemen<ng  a  

localised  loyalty  strategy  which  delivered  membership  growth  and  franchisee  sa<sfac<on”  Vice  President  of  Loyalty  

Marke+ng    

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8th FFP Loyalty Conference 2012

Challenge •  Adopt a more efficient approach across a EMEA

programmes •  Drive increased bookings, revenue and an improved share

of business travel from small to medium-sized corporations, whilst continuing to support the needs of local markets.

What we do:

•  Develop and manage the BusinessClub program •  Delivered and managed an outsourced solution including

full program management, data insight, multi-lingual customer contact centre support, etc.

•  Created the business model and monthly management reports.

•  Launch BusinessClub B2B program in 6 markets •  Created highly targeted marketing campaigns to encourage

transactions, increase retention and drive revenue

Results •  Significantly reduced operating and marketing costs through

the creation of a single program infrastructure. •  Revenue attributed to bookers doubled within the first year

of the program and continued to grow year-on-year for the 4 years following launch.

•  Following the success of BusinessClub IHG migrated their UK Travel Agent program to the new platform, creating BusinessClub AGENT

IHG

“BusinessClub  has  provided  us  with  a  valuable  program  with  usable  member  data  capture,  allowing  greater  customer  insight  and  behavioural  analysis.  ICLP’s  support  from  the  design  and  planning  of  the  program  through  to  the  ongoing  day-­‐to-­‐day  management  has  proven  to  be  

invaluable.”    Karen  Forrest,  Business  Marke+ng  

Manager  Europe      

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8th FFP Loyalty Conference 2012

Challenge •  Develop and launch a brand new program across the hotel

group’s global network

What we do: •  Global CRM agency

•  Audited all aspects of Mandarin Oriental Hotel CRM program

•  Launch and ongoing development of an unpublished CRM program for Mandarin Oriental's best customers across the network

Results

•  Systems and data sharing: significant efficiencies have been realised through company wide sharing of systems and data

•  Company wide training: delivered company wide CRM training and implementation of best practice

•  Data driven strategies: customer communication strategies and creative solutions are now data driven

Mandarin Oriental

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Challenge •  Generate incremental revenue for Jumeirah’s Sirius

Program •  Increase member participation in the program

What we do: •  ICLP has managed Jumeirah’s Sirius Program across

the network since 1998 •  Services provided included:

–  Strategic consulting –  Operations –  Data management, cleaning and validation –  Communications –  Analysis

Results

•  Significantly increased incremental revenue: year on year growth of over 50%, generating significant incremental revenue

•  Increase in member participation. There has been a significant increase in member activity and program participation

Jumeirah International