Ecommerce Loyalty:

Next Generation Program

February 27, 2013

Agenda

• Objectives• Building Loyalty• Loyalty Ecosystem• Requirements “Wish List”• Functionality / Platform Mapping• Project Plan

Objectives

Awareness

CommerceEngagement

Superior Customer Experience

Redefining Value

Objectives

Awareness

• Social Sharing• Extend Reach• Brand Credibility• Referrals

Engagement

• Brand Ambassadors• Content Generation• Discussions• Knowledge Transfer

Commerce

• Retention• Frequency• CLV• AOV

Building Customer Loyalty

Best Ways Companies Can Build Consumer Loyalty According to US Internet Users, March 2012

Building Customer Loyalty

How Customers Show Loyalty to Brands, March 2012(%)

Loyalty Ecosystem

• Initial Observations– No One System Does It All

– Pick Separate Best of Breed Platforms & Integrate• Create a Requirements List• Decision Based on Requirement Scoring

– Lots of Feature / Functionality Crossover• Platforms with Different Functions do similar “things”

Loyalty Ecosystem

– Loyalty Program = Additional Functionality• Reviews & Community Part of a Comprehensive Solution

– Phased Integration / Rollout• Start with Easiest -> Complex• Fast Tracked Integration by Holiday Season

– Need Resource to Manage Program• Lots of engagement, moderation and curation required

– Integration Across Platforms Must Have• Including Magento

Commerce

Engagement

Awareness

Loyalty Ecosystem

Badging

Reward Points

SocialReach

Product Reviews

Contests

Behavioral Analytics

Exclusive Offers

Personalization

Social Integration

Gamification

Behavioral Segmentation

Community

Requirements “Wish List”

Awareness

Social Reach

Social Integration

Requirements “Wish List”

• Social Integration– Top Social Media Venues

• Facebook • Twitter• Google +• Pinterest

– Core Loyalty Functionality Extended • Interaction Gamification• Contests / Prizes

Social Integration

Requirements “Wish List”

– Access to Facebook Open Graph• Provides Analytics• Demographics • Segmentation

Social Integration

Requirements “Wish List”

• Social Reach– Sharing & Commenting– Push Content from: Website <-> Social Media– User Content Sharing

Social Reach

Engagement

Requirements “Wish List”

Badging

Reward Points

Contests

Behavioral Analytics

Personalization

Gamification

Community

Requirements “Wish List”

Reward Points• Reward Points

– Custom Point Rules by:• SKUs / Product • Category• Customer Account Type• Tiers

– Social Interactions• Liking, Pinning, etc.• Content Sharing• Voting / Contest

Requirements “Wish List”

Reward Points– Onsite Behavior

• Social Media Liking, Pinning, etc.• Signing Up for Newsletter• Creating Account• Rating/Reviewing Product• Voting Contest• Refer a Friend• Contests / Prizes

– Administration• Reporting Balances & Expiration• Add / Delete Points Individual Account / Groups

Requirements “Wish List”

Reward Points– Redemption

• Exclude Products / Categories• Maximum Redemption Rate Per Transaction• Set Tiered Redemption Values• Partial Cash / Point Payment

– Customer Dashboard• Exclude Products / Categories• Set Tiered Redemption Values• Balance Notification (email)• Expiration Notification (onsite / email)

Requirements “Wish List”

Gamification

• Gamification– Reward Points and/or Badge Points

• Games, Contests & Challenges• Polls & Surveys• Onsite & Social Interactions• Combine All to Create “Missions”

– A workflow of Reward / Badge Point Activities

– Leaderboard• Top Point Earners• Badges / Status Earned• Voting Contest

Requirements “Wish List”

Gamification– User Profile Page (Public / Private)

• Latest Interactions (Activity, Posts, etc)• Badge Level• Points Balances (Private)• Next Level Report

– Achievement Levels & Rewards• Badge Levels• Reward Achievement with Rewards (points, products, etc.)

– Anti-Gaming Mechanics• Restrict / Set Limits Reward / Badge Points

Requirements “Wish List”

Personalization

• Personalization– Discounts / Incentives

• Customized Based on Reward & Badge Points– Example Double Points for Elites

– Product Recommendations• Sales History• Brand Preferences• Navigational Behavior

– Messaging• Unique Messaging On & Off Site Based on Profile

Requirements “Wish List”

Badging

• Badging– Basic Community Game Mechanics

– Distinct Expertise Type / Level• Example: Corals, Fish, etc

– Customizable Naming Conventions• Based on Expertise

Requirements “Wish List”

Behavioral Analytics

• Behavioral Analytics– Segmentation Reporting

• Behavior• Purchasing

– Engagement Reporting• Activity • Referrals

– Retention Reporting• Customer Lifetime Value

Requirements “Wish List”

Giveaways

• Giveaways– Sweepstakes

• Prizes Given Away by Chance– Example: Win Your Order

– Contests• Involve an Element of Skill

– Example: Trivia, Video Submissions

Requirements “Wish List”

Community

• Community– Interactive Dialogue - Q & A

• Ask question?• Share an idea• Report a problem

– Granular Moderation & Review• Individual comments, postings, threads

– SEO Friendly Content• Non-iFramed• Crawlable

Requirements “Wish List”

Community

– Gamify Interaction• Give points and/or badges for participating• Share an idea• Report a problem

Requirements “Wish List”

CommerceProduct Reviews

Exclusive OffersBehavioral Segmentation

Requirements “Wish List”

ProductReviews

• Product Reviews– Product Pros/Cons

• Group Across All Reviews• Predefined / Default Set• Customers Can Add

– Customer Profiles• Allow Customer to Define Experience

– Novice, Intermediate, Expert – Customized Experience Levels Appropriate for Reefing

Requirements “Wish List”

ProductReviews– Ratings Distribution Chart

• Show Distribution of 5 star, 4 star , 3 star, etc

– Moderation• Hold for Review & Approval• 3rd Party Review / Moderation for Authenticity

– Rich Snippets (RDF)• Integrate with Shopping Feeds• Markup Embedded in Pages

Requirements “Wish List”

Behavioral Segmentation

• Behavioral Segmentation– Recency, Frequency, Monetary (RFM)

• Analyze Customers• Report on Best / Worst Customers

– Triggers Based on Engagement & Purchasing– Create “Rules” to Reward / Incentivize Customers

Requirements “Wish List”

Exclusive Offers

• Exclusive Offers / Discounts– Reward Engagement

– Incentive Repeat Purchases

– Upsell and Cross-sell

Revisiting Objectives

Awareness

CommerceEngagement

Commerce

EngagementAwareness

Loyalty Ecosystem

Badging

Reward Points

SocialSharing

Product Reviews

Contests

Behavioral Analytics

Exclusive Offers

Personalization

Social Integration

Gamification

Behavioral Segmentation

Community

Loyalty Ecosystem

Badging

Reward Points

SocialSharingProduct

Reviews

Contests

Behavioral Analytics

Exclusive Offers

Personalization

Social Integration

GamificationBehavioral

Segmentation

Community

How is the Functionality Platformed?

Grouping Functionality

Badging

Reward Points

SocialSharing

Product Reviews

Contests

Behavioral Analytics

Exclusive Offers

Personalization

Social Integration

Gamification

Behavioral Segmentation

Community

Community Loyalty

Reviews

Application Topology

Community Loyalty Reviews

• GetSatisfaction• UserVoice• BazaarVoice• SuggestionBox• TurnTo

Prospective Solutions

Community Loyalty Reviews

• 500Friends• Badgeville• SocialAnnex• CrowdTwist• NextBee• PunchTab• BunchBall

* Acquired by BazaarVoice

• PowerReviews*• Reziew• SocialInterface• Yotpo

Project Plan

Activity Due Date

Identify Requirements 3/15

Develop Project Presentation 3/22

Present to Marketing Team & Add Feedback 3/29

Present to Leadership Team & Add Feedback 4/12

Evaluate & Recommend Platform Solution 5/3

Create Phased Implementation Schedule 5/10

Implement Phase 1 - Reviews 5/31

Launch Phase 1 - Reviews 6/14

Implement Phase 2 - Community 7/31

Launch Phase 2 - Community 8/16

Implement Phase 3 - Loyalty TBD

Launch Phase 3 - Loyalty TBD

Wrap Up

Questions?

Preliminary Recommendation

TurnTo 500Friends PowerReviews