Customer Loyalty Programs Increasing Customer Loyalty throughout the customer base!Paul Knott Customer Services DirectorEMEA Response Center
Why Customer Loyalty?Why should we care?Whats at stake?Customer Loyalty Vs. Customer SatisfactionPromoters and Detractors
The Big PictureCompanies With Satisfied, Loyal Customers Enjoy Higher Margins, Greater Profits And Consequently, Higher Stock Price-earnings Multiples.
Customer Loyalty: Return to Investors051015202530354019.5223.4223.6184.108.40.2068.019.03Customer Loyalty CLI Score35.40AverageP/ERatio
Current Market TrendsWhat Customers are doing differentlyExperience mattersPositive experience means repeat actionVendor selection criteriaCommitment, not loyalty?The Trust FactorA 5% increase in customer retention yields a 75% increase in customer net present value. -Fred ReichheldIncentive driven modelLoyalty rewards
Main Customer Loyalty Business ObjectivesMeasure, monitor and improve overall customer satisfaction within major product, service, and geographical areas
Increase software revenue through retention and growth of profitable customers
Measure against the Customer Loyalty Index (CLI)
Use key drivers of customer loyalty to develop company-wide cross-functional prioritized action plans
Customer Loyalty FocusWorking with and complementing the efforts and initiatives of each organization at FileNetTeaming internally to enable us to partner externally with our customersRe-focusing on the requirements of our customersManaging our customers' expectationsBuilding relationships and communicating with our customers at various levelsPlacing highest emphasis on our performance - at all levels Creating cross-organizational partnerships
Keys to successful Customer Loyalty ProgramCreate Customer Loyalty Program goals
Contract third party organization to conduct Customer Relationship surveysAgree upon measurement model (CLI)
Create Tactical and Strategic plans to address immediate and future goals
Tie compensation of all employees to Customer Loyalty improvement
Company Culture and FocusDrive to total satisfaction to build LoyaltyCustomer Loyalty must be a core valueGain Top Executive sponsorshipCEO includes program as top initiativeWeave through the corporate/management fabricTie compensation to Loyalty goals
Measuring Customer LoyaltyWhat is the Customer Loyalty Index?Measurements?Why its important?Components of the Customer Loyalty Index?Overall SatisfactionContinue to BuyRecommendChoose Again
Customer Loyalty ProgramStrategic:Form Executive Customer Loyalty Council - StakeholdersSenior representation from all organizations to collaborate and breakdown internal and external barriers preventing our company from achieving total customer satisfactionTactical:Form a cross-functional team to resolve major tactical issues identified from surveysAddress Trigger Issues identified through surveys
Key Customer Loyalty Program ActivitiesQuarterly Customer Relationship SurveysSurvey Data connected to CRM ApplicationAllow Sales and Field personnel to have access to Customer Survey data for their particular accountsGlobal Partner Relationship SurveyNorth America, EMEA and Asia Pacific
Sample Customer / Partner Loyalty Plan Define Roles for MembersCharter for CouncilCompany wide Engagement StrategyPerformance Metrics for CL related projectsUnique/connected CLOs across companyMonthly Company wide CL communiquMonthly CL Employee RoundtablesCL Road show Visits to US District and International officesCustomer VisitsCL Collateral GenerationCL Quarterly Workshops for ManagementCL information on FileNet.com
Customer/Partner Loyalty PlanQuarterly surveysContacts pre-definedReporting methodology pre-defined Knowledgebase ProjectReference Project
Key Customer Loyalty DriversUnderstand Key driversOverall Business ValueProduct OverallSales RelationshipResponsivenessFollow-throughCalculate Gap scores(Stated importance) - (satisfaction) = gap score
Common Key Customer Loyalty DriversRelationship
Change In SatisfactionHow has our customers satisfaction level changed?Good gauge to monitor performance of changes you implemented
Loyalty ScoreboardWhat is the Loyalty Scoreboard?Significance of the Loyalty Scoreboard?
Incentives/RewardsWhy should our customers participate?Incentive programsWhat WorksDo Incentive models have to be financially driven?
Keeping the Customer InterestedMeasure Response RatesOffer Incentives to survey respondentsSpecial seminarsThought leader forumsExecutive involvementSLA discountsPoints
Other Focus Areas Creating a reference program Leveraging customer feedbackTurning satisfied customers into referencesCreating a knowledgebase Best practicesCase studies
Enterprise wide delivery requires the participation of the vendor. This presentation will demonstrate how Filenets services can add value to our partner community in delivering and maintaining enterprise solutions from a platform, compliance and productivity perspectiveOpen with a Big Picture Statement. Customize it for your customers needs and your programs goals, but keep it short and simple. For example a statement for a linkage program may be: Discovering the specific interrelationships among employee loyalty, customer loyalty and financial performance is crucial to the success of any company.