THROWING OFF SPARKS
Reigniting Retail Loyalty Programs
Mark SageLoyalty Solutions & Strategy Director EMEA
@sagema #sparks
Proprietary & Confidential. © 2013 Aimia. All Rights Reserved.
• 4000 people, 20 countries, publicly listed company
• 75 years experience, with specialism in retail, CPG, travel, banking
• We run programs for ourselves as well as some of the world’s biggest brands.
• Our Aeroplan and Nectar coalition programs are benchmarks for loyalty programs worldwide
AIMIA GLOBALLY THE LARGEST PURE PLAY LOYALTY COMPANY
Our Programs:
Our Key Clients:
LOYATLY IS UBIQUTOUS… BUT HAS IT PLATEAUED
Nielsen / Accenture 2013 Pulse Survey
60% said loyalty programs are
available where they shopped
84% said more likely to visit
those retailers
Customer satisfaction fell
by 1%
Rate of loyalty rose by just 1%
Customers willingness to
recommend rose by just 2%
Proprietary & Confidential. © 2013 Aimia. All Rights Reserved.
WHAT IS LOYALTY MARKETING?
A strategic approach to marketing, in which a company focuses on acquiring, growing and
retaining identifiable customers through repeated, measurable interactions
Proprietary & Confidential. © 2013 Aimia. All Rights Reserved. 5
Loyalty used to be a slow burn,
building a stronger relationship one
purchase at a time
Proprietary & Confidential. © 2013 Aimia. All Rights Reserved. 6
Now there is an explosion of
customer interactions from the very start of a
relationship
THROWING OFF SPARKS
BEYOND THE TRANSACTION
LOOKING BEYOND THE TRANSACTION
Is this the whole story?
LOOKING BEYOND THE TRANSACTION
Overlaying loyalty data provides a different view
THE PURCHASE IS ONLY PART OF THE JOURNEY
How did she find
the offer?
Did she like the
product?#butter
Do her friends like
the product?
Did she search for recipes?
Does she “like” the
brand?
What did she make?
Is she still buying it?
THE PURCHASE IS ONLY PART OF THE JOURNEY
How did she find
the offer?
Did she like the
product?#butter
Do her friends like
the product?
Did she search for recipes?
Does she “like” the
brand?
What did she make?
Is she still buying it?
LOYALTY HAS TRADITIONALLY FOCUSED ON ONE INTERACTION
IT’S ABOUT EVERY TOUCH POINT BEING RELEVANT TO THE CUSTOMER.
NOW IT’S ABOUT EVERY INTERACTION
Loyalty is changing as it now means Pre Purchase, Purchase and Usage.
LOYALTY, INTERACTIONS AND SHOWROOMING
21%
Consumers are M-shoppers, using
their mobile in-store to assist their
decisions
55%
Consumers will sign-up to a store loyalty program to
gain in-store benefits on their
smartphone
60%
More likely to buy a product while in-store when they
find online reviews on their
smartphone
31%
Interested in interacting with a store on social networks like
Aimia / Columbia University
BENEFITS OF ADDING INTERACTION DATA
Creates new revenue streams
Drives incremental
revenue
Leverages & validates
investment in new channels
Lowers cost to serve, while
increasing value
REIGNITING LOYALTY
MOTIVATING CONSUMERS TO SHARE
MOTIVATING CONSUMERS TO SHARE
1 Create Customer Utility & Relevance
CONSUMERS WANT EVERY TOUCH POINT TO BE USEFUL, RELEVANT AND SEAMLESS – IN SHORT, FRICTION FREE
http://www.dotrising.com/2014/03/03/brands-must-engage-on-twitterhttp://www.conecomm.com/facebook-makes-it-easier-for-users-to-unlike-you/
58%
Consumers will stop following a brand who over-communicates
(Cone Consumer) 53%
Consumers will stop following a
brand where content is irrelevant
(Cone Consumer)
15%
Twitter followers lost in first 3 weeks if not engaged with
early(dotrising)
BRANDS STILL AREN’T GETTING IT RIGHT
19Presentation Title
BUT ONLY BUT ONLY
ANDAND
12%
86%
46%
28%
10%
44%
Aimia, Four Futures
REWARDING INTERACTIONS - SUSTAINABLY
All Searches
Paid Search Clicks
Revenue
MOTIVATING CONSUMERS TO SHARE INTERACTIONS
2 Build Trust through Transparency
CONSUMERS UNDERSTAND THE VALUE OF THEIR DATA
Aimia, Four Futures
HOW HAPPY ARE YOU FOR COMPANIES TO USE INFORMATION ABOUT YOU IN THE FOLLOWING WAYS?
TRANSPARENCY & PERMISSION ARE KEY
23Presentation Title
CONSUMERS DO TRUST SOME MORE THAN OTHERS
24Presentation Title
REWARDS
Percentage of consumers who say messages from this source are usually relevant
25
CUSTOMER ENGAGEMENT THROUGH TRANSPARENCY
INTERACTING SOCIALLY IS BASED ON TRUST
Control TrustAdded Value
Customers have information on what is collected, from where and for what purpose
Customers understand there is a value
exchange through recognition, rewards
and offers
Comes from confidence that data is held
securely and used in mutually agreed way
Transparency
Customers have control over what they provide, how it is used and how
it is shared
MOTIVATING CONSUMERS TO SHARE INTERACTIONS
3 Reinforce through Recognition
Utility, Relevance and Trust enables us to see more
interactions but
To recognize every check-in, product review, “like” or social
interaction, we need a different way to reward people.
HELP ME BELONG
SOCIAL CURRENCY
MAKE ME FEEL SPECIAL
ESTABLISHING RELATIONSHIPS IS INCREASINGLY ABOUT CREATING SOCIAL CURRENCY
RECOGNITION REWARDS CHANGE THE RELATIONSHIP WITH MEMBERS
30
FRIENDS
RELATIONSHIP
COMPANY
TRANSACTION
MONEY
PIZZA
THE JOURNEY IS SOCIALP
roje
cted
Rev
enue
Aimia, Four Futures
CONCLUSION
Create Customer Utility &
Relevance
Build Trust through
Transparency
Reinforce sharing through
Recognition
Three powerful pillars you can build to use interaction data and create customer intimacy and long-term loyalty
Reigniting retail loyalty involves capturing the sparks that customers throw off
THANK YOU
Mark SageLoyalty Solutions &
Strategy Director EMEA
@sagema
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