the impact of incentives on loyalty & measurement
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The Impact of
Incentives on
Loyalty and
Measurement
ACT International Conference
Indian Wells, CA
Sep 1, 2010
Rick Steele
NuRide, Inc.
Incentives Are Often Used for Direct Acquisition
But How Does this Make Existing Customers Feel?
Sometimes an Indirect Approach Works Better
So be sure to give yourself a good name …
because people spread the word
FAST
How fast?
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“Do what you do so
well that they will
… bring their
friends.”
- WALT DISNEY
So how can you
delight your current
customers?
… with
loyalty-based
incentives
11
Loyalty Marketing is Not New
• 1.8 billion people are enrolled in loyalty programs
• Average U.S. household is enrolled in 14.1 loyalty/rewards programs
• Top U.S. loyalty programs by industry– Financial Services 422 million
– Airline 277.4 million
– Specialty Retail 191.3 million
– Hotel 161.8 million
– Grocery 153.3 million
– Mass Merchants 124.8 million
– Casino/Gaming 106 million
12
Benefits of Loyalty Marketing for TDM
• Delight your current customers
• Attract new customers with referrals
• Collect valuable data for measurement and reporting
• Grow your database, resulting in more matches
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Found one Thanks for match, bye!
Rewards! I’ll stick around
Constantly grow your database
Need match
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NuRide Demonstration
15
58% joined because of rewards
48% previously drove to work alone
Attracted SOV Commuters
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83% share rides “more” or “much more”
56% of active members have been active > 1 yr
Retained Active Commuters
17
30% of new members in 2009
came from referral links and they were …
45% more active than non-referrals
And They Recruited Their Friends
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Loyalty-Based Incentives Work
• Reward and delight your current customers
• Measure results by making rewards contingent upon reporting
• Grow your database by …
1. retaining current customers and
2. acquiring new ones via referrals at no cost to you!
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