reshaping customer loyalty - foresight factory | global consumer trends … · 2017-06-21 ·...

1 1

Reshaping Customer Loyalty A Foresight Factory webinar, June 21st 2017

3

Dominic Harrison

Content Director

Christophe Jouan

Co-Owner & CEO

Speakers

4

The impact of loyalty programmes on branding

Source: FFonline 2017

5

Why loyalty matters: the coming world of bypassed brands

48% of global consumers are

interested in a service

that automatically bought

and delivered basic household

supplies when they ran out


6 Source: FFonline 2017

What drives brand advocacy? Loyalty initiatives are weakening brand equity

Value for money

Best quality

Genuine

Inspires me

Makes me feel good

POSITIVE NEGATIVE

Exclusive and personalised promotions

Rewards my loyalty

Environmentally friendly

Treats workers well

NO CLEAR RELATION

+14% -10%


ALIGN

Align loyalty programmes with core

brand values and consumer needs

in your sector / target group.

ACT

Create a roadmap for differentiated

programmes that capitalise on

both transactional and emotional

invitations to engage.

EVOLVE

Maintain loyalty programmes’

relevance by mirroring evolving

consumer needs and competitive

intelligence.


Competitive trends for the entire loyalty cycle

Acquisition and activation

BRIEF

ENCOUNTERS

CONNECTED

COMMUNITIES

MOBILE

FIRST

EARLY BIRD

BRANDS

CULTURE OF

IMMEDIACY MAXIMISING

BEHAVIOUR

LIFESTAGES

IN FLUX

CONSUMER

CAPITAL

Maximising transaction

frequency and value

Acquisition and activation

Long term retention

CHALLENGE

ACCEPTED

ME ME

WORLD

WISHLISTING

EVERYDAY

EXCEPTIONAL

THE 5-STAR

CUSTOMER

SURPRISE

ME!

CONVERSATIONAL

COMMERCE

THE LEISURE

UPGRADE

BRANDING

BYPASS

NARRATIVE

DATA

9

Acquisition and activation: trends to consider


BRIEF

ENCOUNTERS

CONNECTED

COMMUNITIES

MOBILE

FIRST

EARLY BIRD

BRANDS

CULTURE OF

IMMEDIACY

MAXIMISING

BEHAVIOUR

LIFESTAGES

IN FLUX

CONSUMER

CAPITAL

10

Acquisition and activation: trends to consider


BRIEF

ENCOUNTERS

CONNECTED

COMMUNITIES

MOBILE

FIRST

EARLY BIRD

BRANDS

CULTURE OF

IMMEDIACY

MAXIMISING

BEHAVIOUR

LIFESTAGES

IN FLUX

CONSUMER

CAPITAL

11

EARLY BIRD BRANDS

The appeal of early, privileged access to new products and services.

63% 58%

38%

64% 63%

45%

Men 16-29 Men 30-44 Men 45+ Women 16-29 Women 30-44 Women 45+

% who agree “I like it when brands/companies give me early access to products” (5-market average)

Position sign-up as joining an exclusive club that offers early access to new products, promotions, events and experiences.

12

Sephora’s Beauty Insider program offers privileged access to seasonal events


EARLY BIRD BRANDS


EARLY BIRD BRANDS

Space NK’s loyalty program invites members to sales ahead of the general public

14

CONSUMER CAPITAL

Attitudes towards data sharing are maturing. Consumers will expect up-front clarity.

% who agree “I would like more control over

the personal information I give

companies and the way in which it is stored” 0%

20%

40%

60%

80%

100%

US

A

Fra

nce

GB

Ge

rma

ny

Spain

Sw

ed

en

Chin

a

Ind

ia

Ind

on

esia

Ma

laysia

Th

aila

nd

Millennials Generation X Baby-Boomers

The future promise of data-driven programme benefits such as exploratory “show me my data” features or even self-

destructing loyalty programmes?

15

CONSUMER CAPITAL

Attitudes towards data sharing are maturing. Consumers will expect up-front clarity.

The future promise of data-driven programme benefits such as exploratory “show me my data” features or even self-

destructing loyalty programmes?

“In most cases, I tend to make impulsive decisions, if the sales

assistant keeps talking and asking me for signing up. Why I would think twice before signing up: if the loyalty programme was not free of charge or requires my private information”.

Male, 26, China

“With stamp cards (eg coffee shop loyalty cards where you collect

stamps in order to get a free coffee) it’s a rather impulsive decision, but

when I have to sign up and give a lot of data away I rather consider

it properly”.

Female, 27, Germany

16

CONSUMER CAPITAL

Datacoup, the “world’s first personal data marketplace”

17

Maximizing transaction frequency and transaction value: trends to consider


CHALLENGE

ACCEPTED

ME ME

WORLD

WISHLISTING EVERYDAY

EXCEPTIONAL

THE 5-STAR

CUSTOMER

18

Maximizing transaction frequency and transaction value: trends to consider


CHALLENGE

ACCEPTED

ME ME

WORLD

WISHLISTING EVERYDAY

EXCEPTIONAL

THE 5-STAR

CUSTOMER

19

WISHLISTING

A new type of pre-purchase e-behavior: the creation of digital wishlists of desired products.

Create a space for customers to wishlist and create opportunities to trigger transactions e.g. by pushing

notifications to customers if a “wishlisted” item is nearby.

% who save items they are interested in online to refer to at a later stage by…

GB USA France Spain Sweden China Japan

Adding items to an online shopping basket 38% 40% 29% 23% 24% 62% 19%

Favouriting or starring items on a website 26% 26% 24% 32% 25% 57% 31%

Creating a digital list / saving links of favourite items 15% 22% 13% 17% 12% 26% 13%

Emailing links to products to yourself 16% 23% 13% 15% 17% 20% 7%

20

WISHLISTING

Nordstrom’s app has a wishlist area and uses push notifications

21

THE 5-STAR CUSTOMER

Consumer interest in a more reciprocal rating relationship with the brands they encounter

Permission to broaden loyalty metrics? % who agree “If I use a company’s services I would be happy for them to rate me as a customer”

Create a wider customer rating strategy that not only rewards spend but also store and site visits, engagement on social

media, personal daily behaviors or activity.

0%

20%

40%

60%

80%

100%

Spain China GB USA France Japan Sweden

22

THE 5-STAR CUSTOMER

The Hälsorabatt app (by Swedish retailer ICA) allows registered users to

track their physical activity and convert it into store benefits

23

THE 5-STAR CUSTOMER

Beam dental insurance plan customers are rewarded for good behavior with StarCards.

24

Driving long-term loyalty: trends to consider


SURPRISE

ME!

CONVERSATIONAL

COMMERCE

THE LEISURE

UPGRADE

BRANDING

BYPASS

NARRATIVE

DATA

25

Driving long-term loyalty: trends to consider


SURPRISE

ME!

CONVERSATIONAL

COMMERCE

THE LEISURE

UPGRADE

BRANDING

BYPASS

NARRATIVE

DATA

26

THE LEISURE UPGRADE

Need for multi-functional leisure: opportunities for skill-building, self-improvement and new experiences

% who agree “entertainment should be about learning new things as much as simply having fun”

Expand range of rewards to include attractive experiences and activities so that programmes become long-term leisure

partners for experience-seeking consumers

0% 20% 40% 60% 80%

100%

Ca

na

da

US

A

Au

str

alia

S K

ore

a

Ja

pa

n

Pola

nd

Fra

nce

Ita

ly

Spain

Ge

rma

ny

Ire

lan

d

GB

De

nm

ark

Sw

eden

Fin

lan

d

Ru

ssia

Me

xic

o

Ind

on

esia

Tu

rke

y

S A

fric

a

Bra

zil

Ma

laysia

Ch

ina

Ind

ia

Th

aila

nd

27

THE LEISURE UPGRADE

O2 Priority offers members Priority Access exclusive access to tickets (typically 48

hours before general release) for popular events as well as venue privileges.

28

THE LEISURE UPGRADE

Members of theory11’s Elite Member Initiative earn points which are the only currency

able to buy selected experiences and products from the “Archive”.

29

THE LEISURE UPGRADE

Mastercard’s Priceless Surprises spontaneously rewards active cardholders with

“surprises”. 100k cardholders rewarded by early 2017.

30

CONVERSATIONAL

COMMERCE

The promise (and customer expectation) of warmer brand-customer digital communication

A future of members-only messaging services and AI assistance that offers personalized advice, program updates

and a long-term, emotionally-aware connection.

AI assistants: the face of loyalty programmes in future? % of US adults who have used voice-commands on a smartphone/wearable/tablet e.g. Siri, Alexa, Cortana

0% 20% 40% 60% 80%

100%

To

tal

Ma

le

Fe

ma

le

Mill

en

nia

ls

Ge

n X

Ba

by

Bo

om

ers

HH

in

co

me

<

$20k

$20k-3

0k

$30k-4

0k

$40k-7

5k

$7

5k+

2015 2016

31

CONVERSATIONAL

COMMERCE

In January 2017, Starbucks announced the launch of voice ordering capabilities within

the Starbucks mobile iOS app as well as via the Amazon Echo platform.

32

What next?


ALIGN

Align loyalty programmes with core

brand values and consumer needs

in your sector / target group.

ACT

Create a roadmap for differentiated

programmes that capitalise on

both transactional and emotional

invitations to engage.

EVOLVE

Maintain loyalty programmes’

relevance by mirroring evolving

consumer needs and competitive

intelligence.

33 33

Thank you for joining us.

[email protected]

[email protected]

mailto:[email protected]

mailto:[email protected]

reshaping customer loyalty - foresight factory | global consumer trends … · 2017-06-21 ·...

Documents