CUSTOMER RELEVANCE BY DESIGN

Simon Rowles | Managing Director, New Zealand | Vice President, Asia Pacific

Using data to create real relationships with your customers

YOUR CUSTOMERS WANT TO HEAR FROM YOUTHEY WANT RELEVANT MARKETING MESSAGES

3

Willing to share personal details to receive relevant

offers

Are generally happy for companies to email them

marketing offers

AIMIA: THE DIGITAL LOYALTY SURVEY, AUGUST 2012. UK, US AND CANADA, SURVEY OF 6000 CONSUMERS

55 % 74 %

MOBILE DEVICES - ‘REMOTE CONTROL OF LIFE’

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64%

Of smartphone users have their phone with them for all but 2 hours of their waking day

079%

– Aimia Digital Loyalty Survey, 2013

Of consumers own a smartphone

UP AND COMING CONSUMERS ARE HEAVILY MOBILE

5

Would you like to use a phone as a rewards card?

30% 13%51% 33%

How likely are you to promote products or brands through social media in exchange for rewards?

AIMIA: THE NZ MILLENNIAL LOYALTY SURVEY 2012, SURVEY OF 1250 CONSUMERS

Millennials Non- Millennials Millennials Non- Millennials

THEY’LL SHARE LOCATION (MAYBE) BUT NOT MUCH ELSE

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Location

Access to your contacts

Access to your calendar

Access to your network

Ability to post to social media

Access to browser history

Access to camera

Access to microphone

Other apps

17%

8%

7%

7%

5%

5%

5%

4%

4%

14%

4%

8%

6%

5%

4%

4%

4%

3%

14%

5%

5%

6%

4%

3%

3%

4%

4%

Grocers Airlines Banks

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When companies

communicate WELL

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When companies

communicate badly it has a

strong negative effect

SOURCES OF DISENGAGEMENT - MESSAGES

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38% 39% 36% 30% 34%

25% 23% 24% 33% 21%

27% 27% 30% 21%23%

10% 11% 10% 16% 22%

Not relevant

Too many (or too few)

Through channels I don’t like

At inappropriate times

10

BUT - CONSUMERS ARE UNENTHUSIASTIC ABOUT THE DIGITAL COMMUNICATIONS THEY RECEIVE

11

Receive marketing emails

Look forward to receiving them

Think they receive too many

AIMIA: THE DIGITAL LOYALTY SURVEY, AUGUST 2012. UK, US AND CANADA, SURVEY OF 6000 CONSUMERS

86 %12 %

46 %

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STARTING TO FEEL A BIT LIKE

The

Deletist

Consumer

THE RISE OF THE DELETIST CONSUMER

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Unfollow brands on Social channels

Close accountsDelete apps

As a direct result of poorly targeted communications

AIMIA: THE DIGITAL LOYALTY SURVEY, AUGUST 2012. UK, US AND CANADA, SURVEY OF 6000 CONSUMERS

71 % 73 %60 %

VALUECHOICE CONVENIENCE

CONSUMERS ARE EMPOWERED WITH UNPRECEDENTED CHOICE, VALUE AND CONVENIENCE….

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Is at our fingertips

…. Is lagging behindHas become ubiquitous

EXPERIENCE

Consumers have more than they

know what to do with

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RATIONAL ENGAGEMENT

EMOTIONALENGAGEMENT

LOW DATACONTROL

HIGH DATA CONTROL

REAL RELATIONSHIPS: A SOURCE OF POWERFUL ADVANTAGE

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WHAT IS A REAL

RELATIONSHIP?

Rational engagement

EmotionalEngagement

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WE ANTICIPATE FOUR FUTURE LANDSCAPES

Low data control

PAY TO

PLAY

REAL

RELATIONSHIPS

OFFER

ANARCHY

THE

HUNT FOR

AFFINITY

High data control

THE ROLE OF LOYALTY IN A DIGITAL WORLD

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LOYALTY DIGITAL

• Long Term• Less noise• Trust • Engagement

• Immediate• Real time• Anywhere• Deal based

THE CONSISTENT SUCCESS FACTOR – THE CUSTOMER FIRST THE OPPORTUNITY: MAKING BUSINESS PERSONAL

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How do we create real relationships with our customers?

• Permission based• Deliberate and personalized• Reciprocal and valued• Consistent across all touch points• A journey of interactions

CHOICE

VALUE

CONVENIENCE

EXPERIENCE

REAL RELATIONSHIPS: DEFINED BY TRANSPARENCY AND CUSTOMER-CENTRIC DATA COLLECTION AND USE

CHANNEL 4 – VIEWER PROMISE

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REAL RELATIONSHIPS: DEFINED BY TRANSPARENCY AND CUSTOMER-CENTRIC DATA COLLECTION AND USE

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REAL RELATIONSHIPS: MITIGATE PAIN POINTS AND ALLEVIATE FRUSTRATIONS

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CLUTTER CUTTING: INCLUDE PERSONALAND RELEVANT OFFERS

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UK supermarkets typically have 25%-35% of all

products on offer at any one time

We select the 10 most relevant offers for every

Sainsbury’s shopper – a great

customer experience

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REAL RELATIONSHIPS: DELIVER PERSONAL PRICING

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“Over time, the shelf price becomes

less and less relevant. There is an infinite opportunity to give the individual what they

want and what they need"

STEVE BURDSAFEWAY CHAIRMAN AND CEO.

ALWAYS ON: UTILIZING SOCIAL MEDIA TOENGAGE YOUNGER MEMBERS

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DATA DRIVEN DECISIONS: CAPTURE AND ANALYZE DATA THAT CAN DRIVE IMPACT

“Amazon Prime may be the most ingenious and effective customer loyalty programme in all of e-commerce, if not retail in general” (Source: Bloomberg Business Week)

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REAL RELATIONSHIPS: HAVE DATA AT THEIR HEART

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What I think Where I am What I’m interested

in What I watch What I buy What I read

What I do Who I talk to

What I aspire to What I’ll do next

my life

PROCEED WITH CARE …

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“Google policy is to get right up to

the creepy line but not cross it.”

Eric SchmidtGoogle Executive Chairman

THE CREEPY LINE

... AS WE UNLOCK THE POSSIBILITIES

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Place data collection in service of

the customer

Build relationships

based on trust and

reciprocity

Ask for permission

and be transparent

Deliver value and

relevance in EVERY

interaction

THANK YOUSimon.Rowles@aimia.com