Keeping the excitement with your customers

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Presentation from the Customer Loyalty Conference & Expo (Manila, Sept 28 2012)

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  • 1. 28.09.12Keeping theExcitement withyour CustomersGlobal Loyalty Solutions

2. Loyalty Landscape2are members of at 92%least one program 6.4 / person Maritz Loyalty Insights (2012) 1,673,000,000 members 5.4 / person 14 (6 active) / householdColloquyCopyright 2012 - Welcome Real-time 3. Loyalty Programs are now a Commodity 3Copyright 2012 - Welcome Real-time 4. Raising Perception NOT Costs 4Price is what you pay. Value is what you get.Warren Buffett Loyalty is driven by emotion not rationaleThe right types of reward have a perceived value that far outweighs the underlying costCopyright 2012 - Welcome Real-time 5. Drive Excitement by Giving More? 5Copyright 2012 - Welcome Real-time 6. Rewards must be Attainable6Rewards if not attainable, will lead to reduced engagement and ultimately defection "69% of the people surveyed said they left a loyalty programbecause it took too long to earn enough points to get a rewardMaritz Loyalty Track Survey (Nov 2003)Reasonable months-to-earn average: 1 23 4 5 6 7 89101112 1,000 respondents20%37% Maritz Loyalty Track Survey (Oct 2004) Copyright 2012 - Welcome Real-time 7. Experiential Rewards 7We dont remember days; we remember moments.Cesare Pavese Reward program members who have redeemed forexperiential rewards are 30% more likely to be WOM Champions than those who have redeemed for discounts Copyright 2012 - Welcome Real-time Colloquy 8. Lucky Draws8 Excite customers by giving them the chance to win something desirableCopyright 2012 - Welcome Real-time Fixed reward cost! 9. Auctions9 Stir up competition, by auctioning off highlysought after rewards that money cannot buy Stand a chance to Were auctioning off win EXCLUSIVE VIPa PRICELESS F1backstage passes driving experience Dramatically increaseIncrease customerthe perceived value engagement by creating a with rewards that competitive environment money cannot buyCopyright 2012 - Welcome Real-time 10. Selfless Rewards10 Harness causal drivers to give customers a community-based collective goalHSBC Green Roof for SchoolsLeverages on socialMore appealing to customers pressure to encourage who do not see the value incontinued participation traditional loyalty rewardsCopyright 2012 - Welcome Real-time 11. Differentiated Rewards 11Originally the exclusive domain of airlines, StatusPrograms are now common place in other sectors Flat vs. Tiered Status Tiers are an effective way of introducing Softbenefits for premium customers, whilst at the sametime creating aspirational drivers for lower-tiercustomersA three-tier program (e.g. Gold, Silver, and no-status) is more satisfying to all involved than a two-tier program (Gold and no-status), even to those who do not qualify for elite status Dreze and Nunes (2009)Copyright 2012 - Welcome Real-time 12. Perception of Status Programs1282.5%ranked Chain C asthe most popular71.4%of the No Statusparticipants preferthe program that If you create an elite tier,has 2 elite tiers! it is better to create twoCopyright 2012 - Welcome Real-time Dreze and Nunes (2009) 13. Status Programs by Industry 13Airlines HotelsCar RentalOthersCopyright 2012 - Welcome Real-time 14. Reward Timing: Immediate vs. Delayed 14With a scheme based on rewards-on-demand you may get an increase in behavioural-loyalty but it wont go any further;theres no opportunity to extend emotional loyalty. Scoring Points: How Tesco Continues to Win Customer Loyalty (Clive Humby)delayed rewards in a loyalty program have a significant impact on customer loyalty, whereas one-shot promotional features do notLeenheer and Bijmolt (2008)delayed rewards work better than immediate rewards only if customers are satisfied with their experience Hu et al. (2010)Copyright 2012 - Welcome Real-time 15. Engage Customers Socially15 Harness social networks to open rich and diversetwo-way communication channels with customersActively encourage customer interaction Avoid the tendencyto over-promoteCopyright 2012 - Welcome Real-time 16. Help Customers Share Their Excitement 16 Self-describedWOM Champions 55% Likelihood of anactive member beinga WOM Champion3x ColloquyPeople are more likely to trust arecommendation from a friendCopyright 2012 - Welcome Real-timeAHAlife / Twitter 17. Social Media is not a Quick-Win Solution 17Copyright 2012 - Welcome Real-time 18. The Power of Postcards18How a UK-based Charityslashed donor attritionrates using PostcardsAttrition rate after6 months halved! Copyright 2012 - Welcome Real-timeRapidata Case Study 19. Communication: Old is New 19 Sometimes its thelittle things in lifethat count the most Johnny the baggerCopyright 2012 - Welcome Real-time 20. Look for compelling Quick Wins 20Stay front-of-mind bygiving your customers easy and up-to-date accessdirectly from PassBookLoyalty Card (Balance)Coupons / VouchersCopyright 2012 - Welcome Real-time 21. Welcome Real-TimeOverview 22. 15 Years of Experience in Loyalty22> 20 live projects across 5 continents.> 14 different spoken languages> Local presence in 30+ countries (direct or via partners) Aix-en-Provence (France)SingaporeSao Paulo 300,000 daily loyalty transactions between1+ Million Retailers and2011 live projects 50+ Million consumers.Copyright 2012 - Welcome Real-time 23. Products Overview 23 Online redemption Push offersReal-time customer interaction@ PaymentPC & tabletsversion Smart phoneversion E-Wallet +integrationMedia IntegrationInternet paymentPOSLoyalty schemeAppWelcome Loyalty ePOSEngine Loyalty Scheme MerchantAnalyticsManagement Portal Portal PortalApplications used by the loyalty scheme operator / the issuer Application used by Merchants Copyright 2012 - Welcome Real-time 24. Sample References24Retail BankingPayment Processors Partners and OperatorsCopyright 2012 - Welcome Real-time 25. Thank youfor your attentionwww.welcome-rt.com 2012 Welcome Real-time. All rights reserved.Content in this presentation is provided for general information purpose only and is owned by Welcome Real-time. It does notconstitute a contractual document and may be amended or updated by Welcome Real-time from time to time. This content shall not becopied or reproduced or otherwise used for any reason, except for your own business purposes and/or personal use.

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