Loyalty schemes: a means to an end? Essential insights for those planning to make loyal customers the heart of their strategyкод для вставки
a mean to an end Loyalty Schemes Building the consumers' future relationship model, within a mass marketer environment © Juin 2012 - firstname.lastname@example.org Loyalty is NOT a marketing program on its own… it is the customer BEHAVIOUR which you are trying to create towards your brand… Priority 1 : Retain your existing customers Priority 2 : Increase their usage of your brand (Frequency, basket size) And only in 3rd position from an effectiveness: acquire new customers Is this Brand acceptable ? Is the offer relevant ? What’s in it for me ? Is my behaviour rewarded ? It is not anymore about what we sell why customers will use our networks / brands but... 2 Billion transactions per year in Europe 150 million customers 35 million active loyalty customers Average generated Gross margin below 1% of Turnover It has been a 10 years journey at BP ...To get to a individual relationship despite our mass marketer business model …3 customer attributes as basis for BP ‘ contact strategy Fuel Only Frequency Overall usage of BP Basket size Scheme engagement Thank you …based on speciﬁ c customer segment deﬁ nitions… Pro Drivers Fuel Only • Huge volume • Diesel • Frequency 3 x last 15 days Overall usage of BP • Use of minimum 10 sites from network • High usage of Food offer 1 in every second visit • 35% have washed their car more then 6 times in last 4 mths Scheme engagement • Mostly BP acquired customers • 70% usage of credit card for transaction • Preferred communication channel : Mobile App coupons • Usage of 3 partners in the coalition Freelancer / commercial jobs Alternatively lonely wolves who live in rural areas Wealthy Families / couples …we deﬁ ne business targets and appropriate Communication strategy Q1 Q2 Q3 Q4 In store T@T - coupons T@T - messaging Direct Mailing Email newsletter Personalised mailings Points update mailings Mobile Social media Pro Drivers Building consumer relationship model… Do’s and do not do’s Do’s Deﬁ ne clearly your ﬁ nancial boundaries by segment. You cannot afford everything ! Be very clear about your IT capabilities : it is the enabler for the whole approach Deﬁ ne clearly roles of each segmentation used, with what targets Make choices : you can’t do everything to all customers. Anyway, they would not see it Be humble , you won’t have it right the ﬁ rst time. Do not do ’s Don’t jump on the next technologic innovation because it is fancy (App downloads is nice but real use is critical) Don’t underestimate internal and traditional agency resistance to change Do NEVER over-market your segments, they will hate you for this Don’t get lost in your data : keep it simple.