Lessons from the Winners

XII International Forum Loyal Customer, 11/10/2016

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@RadekOnLoyalty

Radek Hrachovec

18 years in

loyalty

programmes*

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*pilot of Bata club launched 1999

The Loyalty Awards London

Member of the

jury since 2011.

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The Loyalty Awards 2016

“Celebrate the achievements of companies and

organisations excelling and achieving the

extraordinary in the loyalty industry across Europe,

the Middle East and Africa.”

18. října 2016 5

200 entries in

20151000 guest

Grosvenor House

London

lessons from the winners

From left: Radek Hrachovec (Pricewise), Bohuš Hlavatý (CEO Tatry mountain resorts a.s.), Milan Schnorrer (Pricewise), Peter Krišťák (Pricewise)

Program GOPASS zvítězil ve třech kategoriích Tle Loyalty Awards 2015 6

What is Pricewise?

We build bespoke loyalty programmes

&

create pricing solutions + direct

marketing.7Know how to keep your customers through loyalty programmes.

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Mike Belcher CMO T-Mobile USA

It’s about us showing

loyalty to them.“

„This isn’t about

customers showing

loyalty to us.

We loose customers everyday.

Cohorts – customers (non)loyalty live

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22537

9…

únor březen duben květen červen červenec srpen září říjen listopad prosinec

únoroví zákazníci

Only 40,5 % are active after 10 months.

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Cohorts – the right view on customers

12http://analyzecore.com/2014/05/31/cohort-analysis-in-r-layer-cake-graph/

About 50 % of purchases comming from

customers who don‘t care (give a s**t).

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Typical customer base split

Know how to keep your customers through loyalty programmes. 14

30 %

70 % Coincidental

Returning

Typical turnover split

Know how to keep your customers through loyalty programmes. 15

55 %

45 % Coincidental

Returning

Very typical profit split

Know how to keep your customers through loyalty programmes. 16

70 %

30 % Coincidental

Returning

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Bryan Pearson, LoyaltyOne

„Twenty percent of the best

customers generate 60% of

retail sales and 75% of

profits.“

Proliferation of „loyalty activities“

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The 2016 Bond Loyalty Report

What customers say

18. října 2016 Know how to keep your customers through loyalty programmes. 19

2015 LOYALTY REPORTTM | BOND BRAND LOYALTY

I accept

and use

them!

Reward & Attention

Each

rescued

customer is

net revenue.

Know how to keep your customers through loyalty programmes. 20

The Winners and Finalists of The

Loyalty Awards London

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Best loyalty industry innovation:

Morrisons: Match & More

18 October 2016 23Know how to keep your customers through loyalty programmes.

Price-match through loyalty points – competitors prices (including discounters) on branded products are matched in form of points, which are then transferred into 5£ rewad wouchers.

What the judges said:

„Clever and effective

proposition focused on

basic customer need – fair

price.“

Best use of mobile within a loyalty strategy:

Nectar

18 October 2016 24Know how to keep your customers through loyalty programmes.

Nectar (launched 2002) completely refocus and reorganise its business to be mobile-first, radically improve the quality and quantity of offers and to invest in marketing to accelerate app downloads. Results: 10% increase in engagement plus 39% increase of NPS.

What the judges said:

„The scale is impressive,

this is phenomenal change

and a major shift.“

Loyalty programme of the year – food:

Whitbread: Beefeater Grill Club

18 October 2016 25Know how to keep your customers through loyalty programmes.

Whitbread was able to dramatically reduce its mass couponing campaigns. A major success of Beefeater Grill Club is created through highly personalised monthly account statement with targeted vouchers, achieving Open Rate above 50%.

What the judges said:

„Better targeting

significantly increased

customer experience and

helped Whitbread to gain

loyalty of its customers.“

Loyalty programme of the year – financials:

Lloyds: Everyday offers

18 October 2016 26Know how to keep your customers through loyalty programmes.

Revolutionary approach to bank loyalty programme – 15% cash-back offered within 100 partners. Weekly randomly selected 1000 clients don’t pay for their purchase. User activate the offer at Lloyds, after purchase with Lloyds card the cash-back is credited.

What the judges said:

„Bank significantly

improved its reputation

thanks to this scheme by

engaging more than 1

million of its clients.“

Best use of gamification:

Topaz: Play or Park

18 October 2016 27Know how to keep your customers through loyalty programmes.

Points are earned on fuel and shop purchases to be played via the Mobile App, online for monthly Experiences-of-a-Lifetime and guaranteed free-treats. Each 200 points is one play. If parked to the next month the chance increases. Every play is rewarded.

What the judges said:

„Topaz demonstrated

outstanding results for the

sector. Scheme attracts

customers to participate

repeatedly .“

Loyalty programme of the year 2015:

Payback

18 October 2016 28Know how to keep your customers through loyalty programmes.

Payback celebrated 15 years of operations, achieved record high penetration in DE, launched its clon Plenti in USA. Payback’s marketing platform is extraordinary huge with 40% penetration of mobile coupons, 5 mil mobile appkdownloads and 907k Facebook fans.

What the judges said:

„15 years of continuous

development got Payback

the limelight. Payback is

surely one of the world’s

most successful

programmes.”

Best use of gamification to enhance loyalty:

Odeabank

18 October 2016 29Know how to keep your customers through loyalty programmes.

Revolutionary approach to banking. The program works like gamification platform, rewarding customers for everyday usage of the mobile banking. Surprise effect is achieved by partners coupons appearing right after finishing some operations in the mobile app.

What the judges said:

„Odeabank managed to

achieve its mobile banking

outstandingly attractive for

clients to use.“

Best use of CRM:

Dr. Max

18 October 2016 30Know how to keep your customers through loyalty programmes.

Dr Max offers dual price system on OTC, 50% discount for children, elderly, disabled, personalised treatment and drug interactions alerts enabled on point-of-sale. Tremendous success with 20 % of the population signed up in 9 months and a 32% increase in incremental sales.

What the judges said:

„This is an example of

pharmacy making

intelligent use of data to

provide a life saving

service.“

Trends

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Functionaloyalty

18. října 2016 32Know how to keep your customers through loyalty programmes.

Mobile payments

18. října 2016 33Know how to keep your customers through loyalty programmes.

Beyond purchase

Know how to keep your customers through loyalty programmes. 34

Digital assistants

18 October 2016 35Know how to keep your customers through loyalty programmes.

AmazonPrime leads the industry

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91 % of new AmazonPrime

members continue after first year.

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HealthMobile

Gamification

Functionaloyalty Curation

Rewards are evergreen

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Value of a reward creates presentation&process

The way of

reward‘s

presentation

is in your

hands.

Know how to keep your customers through loyalty programmes. 40

What‘s in it for me?

18. října 2016 Know how to keep your customers through loyalty programmes! 41

Personalization is still in its infancy

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Zdroj: The 2016 Bond Loyalty Report

Satisfaction and Personalization are sisters

18 October 2016 Know how to keep your customers through loyalty programmes! 43

Zdroj: The 2016 Bond Loyalty Report

Loyals won‘t be more loyal.

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Zdroj: The 2016 Bond Loyalty Report

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Thank you.

Radek

Hrachovecpartner Pricewise

radek.hrachovec@pricewise.cz

+420 731 618 725

Prague