Secret To Creating Loyalty Programs That Actually Work

The  Secret  To  Crea,ng  Loyalty  Programs  That  Actually  Work  

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Panelists  

Debbie Hauss Editor-in-Chief

Retail TouchPoints

MODERATOR

Luc Garneau VP Strategic Consulting Services

DataCandy

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The Secret to Creating Loyalty Programs That Actually Work

9.30.14

Empower Marketing to be more Strategic by Integrating all Consumer Data, Interactions and Analysis into One Place to create “ONE VERSION OF THE TRUTH”

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Discussion Topics

Overcoming Challenges to Build a Winning Program

Common Denominator Among Key Players

Moving From a Good to Great Program

Summary & Key Takeaways

Overcoming Challenges To Build a Winning Program

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> 20 cards/household Stand out from the crowd

Customers are more knowledgeable…Demanding

The Challenge for Today’s Retailers

Loyalty Jane Smith

931 123 456

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Between the Card and the Strategy

Relevance

+ Satisfaction Retention Sales Growth Analytics

Tactical Key Success Factors

•  Simple & Easy to understand

•  Fair Base Value Offer

• Opportunities to Accumulate Points Faster

•  Time to Redeem is Short Enough

• Relevant Rewards

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Strategic Key Success Factors

•  Focus on Capturing & Analyzing Customer Data

•  Identify & Focus on Best Customers

• Build Customer Relationship based on Relevance

•  Test & Measure Initiatives to Improve Customer Response

• Become Truly Customer-Centric

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How to Overcome Those Challenges?

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? ?

How to Overcome Those Challenges?

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? Innovation

Generosity Effectiveness

Program conception

Common Denominators For Loyalty Success

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Loyalty Program Success

Starbucks

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When the customer’s affection for the brand becomes more important than the rewards

Enhancing the shopping experience

Access to higher level for more benefits

Quick & easy payment through mobile

Starbucks Moving Forward….

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The Slippery Field of Member Demotion

Letting a member know that his membership status is being downgraded

can be very tricky

Macy’s

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Macy’s Loyalty Program is aiming at capturing a bigger part of loyal customers’ share of wallet

Digital wallet to manage payment options & digital coupons

3 levels, 8 sets of benefits

Understand how, when & where to deliver relevant messages messages

Macy’s Moving Forward….

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A Massive Amount of Data

Fully leverage the customer data and…

eliminate the siloes

Metro

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Metro & moi has set the bar for the other programs mainly from a relevance stand point

Turn key program for customers

Weak base offer, strong bonus offers

Voucher sent every quarter along with highly relevant coupons messages

Metro Moving Forward….

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Remain Current & Keep Re-Invigorating

Constantly evolve program by…

•  remaining extremely connected to technology

•  listening to customers, particularly loyal customers

Walgreens

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Walgreens is clearly expressing that their key objective is to treat their best customers BETTER

Rewarding customers for healthy choices

Bonus points on thousands of products, healthy choices and prescriptions

Enrolling over 100M members flawlessly

Walgreens Moving Forward….

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Make Customer Retention a Priority

Define types of activities that have the best Impact on customer retention

Test & Learn

Sephora

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Sephora makes the program very appealing with rewards not available at store level

Includes passbook, mobile app and “Fan Friday” offer on Facebook

Rewards members with unique products and experiences

Program is driving traffic into stores (10.6M members & Counting)

Sephora Moving Forward….

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Make Beauty a Good Reason to Interact

Explore the experience aspect of a loyalty program by…

•  going beyond the products •  taking special events to the

next level

From Good to Great Programs

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Aiming at Best in Class Loyalty

?

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Aiming at Best in Class Loyalty

The Loyalty Approach • Gathering &

organizing data LP data POS data Research data Other sources

• Building Segmentation Value Lifestyles Lifestages Etc….

• Enabling Better Business decisions Store design Promotions Pricing Assortment Availability

• CRM Through rewards & relevance

•  Increasing Customer lIfetime Value By growing:

• Sales • Margin • Market share

Customer Data

Customer Insight

Customer Experience

Desired Customer Behavior

Driving Results with Loyalty Data

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Customer Data

Customer Insight

Customer Experience

Desired Customer Behavior

relevance

ü  Promotions ü  Communication ü  Flyer ü  Pricing etc…

Summary Key Takeaways

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Loyalty is Too Important!

Do Not Improvise!

Never improvise with Loyalty

and STAND OUT

from the crowd

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Customers are much more

KNOWLEDGEABLE and so…more DEMANDING

Loyalty is not a sprint

It’s a MARATHON

Innovation, generosity &

effectiveness are ONLY PART of equation

The real secret is

in the DATA

Luc Garneau

VP Strategic Consulting Services

514.903.3282 x25

lgarneau@datacandy.com

www.datacandy.com

Connect with DataCandy

Thank You

#LoyaltySuccess  

Q  &  A    //    Panelists  

Debbie Hauss Editor-in-Chief

Retail TouchPoints

MODERATOR

Luc Garneau VP Strategic Consulting Services

DataCandy

#LoyaltySuccess  

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