Date post: | 15-Jan-2017 |
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Moving Beyond Loyalty Programs
TOWARDS REAL LOYALTY
2
LOYALTY IS AN EMOTION
…SO WHY DO WE TREAT IT LIKE A TRANSACTION?
WE HAVE BECOME VICTIMS OF HISTORY AND HABIT
1700sCOPPER TOKENS
1800sCOUPONS
1930s - 70sTRADING STAMPS
1980sDEREGULATION
1990sDIGITIZATION
2000sMOBILE TOOLS
-1% revenue growth
DONE WRONG =RISK MARGINS
-10% lower
EBITDA
ONE SIZE DOES NOT FIT ALL
DOING THE SAME AS OTHERS LEADS TO FAILING IN THE SAME WAY
Customerengagement
ROI over time
SO.. WHAT COULD BE DIFFERENT?
HOW TO SHAPE YOUR FUTURE?
WHERE DID IT GO WRONG?
A NEW APPROACH: “WHOLE BRAIN” UNDERSTANDING OF LOYALTY
TRUST HABITAFFINITY
CONSISTENCY BUILDS TRUST
ANTICIPATETEST DELIVER RETEST REINFORCE DELIGHT
EXPERIENCES BUILD AFFINITY
Focused on tasks
Focused on experiences
FEW PROGRAMS CROSS THIS LINE
MEANINGFUL
PLEASURABLE
CONVENIENT
USABLE
RELIABLE
FUNCTIONAL
PATTERNS BUILD HABIT
Action
Reward
Trigger
MOVING BEYOND THE TRADITIONAL APPROACH
TransparentRelevant
Contextual
HumanCentered
Connected
CONTEXTUAL
PLACEPURPOSE
IDENTIFY CATALYSTS FOR NEW HABIT BUILDING
TIME
DEG
REE
OF
COM
MIT
MEN
T
Traditional programs
Experimentation Moments of delight
18
TRANSPARENT
HOW DO YOU USE WHAT YOU KNOW
ABOUT ME?
EXPERIENCESCHOICESAVINGS PRESTIGEADVICEAUTONOMY
RELEVANT
54%More spend
2xMore referrals
83%More Engaged
CONNECTED
LOYALTY IS AN EMOTIONA crowd is a tribe without a leader.
A crowd is a tribe without communication. Most organisations spend their time marketing the crowd.
Smart organisations assemble the tribe.SETH GODIN
27
InsightEngage
Anywhere/ Everywhere
Respond at moment of impact
Big Data Mobility
Cloud
Insight Engagement
Responsiveness
SO.. WHAT COULD BE DIFFERENT?
HOW TO SHAPE YOUR FUTURE?
WHERE DID IT GO WRONG?
Customer Experience
OrganizationalCapability
Standard, static program
Long cycles, then relaunch
BEYOND “ONE AND DONE” PROGRAMS
Traditional Approach
IDEASTREAMS
INNOVATION CAPABILITY
BUILD, TEST & LEARN
GO
STOP
PIVOT
Continuous Loyalty
CREATE THE PLATFORM FOR EXPERIMENTATION AND GROWTH
Concept Ideas and prototypes
Explore with customers
Pilot Few segments/
sites
Continue learning
Scale up Refine and
expand
Manage capacity
Rollout Loyal, free and paid
Mainstream
Evolve Becomes
commodity
Change the game
34
ALIGNING THE DIMENSIONS IS LIKE TETRIS
Organizational CapabilitiesCustomer experience
Customer experience
ALIGNING THE DIMENSIONS IS LIKE TETRIS: STEP 1
37
75 HAMBURGERS A SECOND
38
VALUE IS CREATED BY OUTCOMES
DOUBLE DIAMOND
understand define explore create
FIND SOLVE
40
FIND THE NEED
EXPERIENCESCHOICESAVINGS PRESTIGEADVICEAUTONOMY
RELEVANT
DOUBLE DIAMOND
understand define explore create
FIND SOLVE
DESIGN EXPERIENCES FOR OUTCOMES
44
CREATE A SOLUTION HYPOTHESIS
45
BUILD - MEASURE - LEARN
46
CONTINUITY
ALIGNING THE DIMENSIONS IS LIKE TETRIS
Organizational Capabilities
Organizational Design
ITCustomer
Experience
AND THERE ARE MORE THAN 2 PIECES
YOU NEVER KNOW WHAT IS GOING TO HIT YOU NEXT
49
A KATA FOR EVERY PIECE
IMPROVEMENT KATA BY TOYOTA
THE PATH TO CONTINUOUS LOYALTY
Baking innovation into the mindset
and culture of your brand and people
Creating a capability that
evolves with your customers over
timeITERATE
• Not all customers are created equal. Avoid over-investing by being all things to all people
• Value is variable. Customers value more than money. Successful programs depend on understanding the right levers
• Experience matters. Moments of connection and relevance create habits that drive repeat behavior
• Test, learn, repeat. Design for iterative tests and take advantage of test data for continuous delivery and refinement
TAKE-AWAYS