Rewarding interactions and transactions

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Information about Rewarding interactions and transactions
Business & Mgmt

Published on September 20, 2013

Author: MarkSage

Source: slideshare.net

Description

Behavioral loyalty is at the core of most loyalty programs today. Customers make a purchase or provide information in exchange for a reward. This is as valuable today as ever, but it’s also no longer enough. In addition to rewarding customers for transactions and information, companies also need to reward customers for interactions—specifically, social interactions that translate to engagement and advocacy. In other words, organizations must find creative ways to use their loyalty programs to foster attitudinal loyalty; to build and capitalize on the emotional connections engaged customers have with their preferred brands.

This presentation discusses the benefits and drawbacks of rewarding customers for such behaviors and transactions and information sharing, as well as the challenges and opportunities of rewarding customers for actions that show genuine engagement and advocacy. It also examines the competitive advantage companies can create by building a loyalty program that rewards customers for all three, as well as how to do so

REWARDING: INTERACTIONS Are You Ready for Customer Intimacy? September , 2013

Proprietary & Confidential. © 2013 Aimia. All Rights Reserved. • 4000 people, 20 countries, publicly listed company • 75 years experience, with specialism in retail, CPG, travel, banking • We run programs for ourselves as well as some of the world’s biggest brands. • Our Aeroplan and Nectar coalition programs are benchmarks for loyalty programs worldwide AIMIA GLOBALLY THE LARGEST PURE PLAY LOYALTY COMPANY 2 Our Programs: Our Key Clients:

3 21.9 MEMBERSHIPS IN THE US MARKET IS COUNTERED BY A DROP IN ACTIVE MEMBERS IN THOSE PROGRAMS Source: 2013 Loyalty Census Report

“What you measure is what you get” “What you measure is what you get” Source: Quote – H. Thomas Johnson; Example: Aimia Nectar Coalition

5 The Loyalty model has an expanded ecosystem of brand interactions across traditional and new platforms and channels – all shared socially Customers are motivated to provide data, link data sources and identify themselves on interactions Linking foursquare provides insight into view vs buy both inside and outside the programme Linking facebook provides friend and preference information Linking search provides ability to target more relevant offers Customer purchase information is tracked with loyalty token CONNECTING DOTS INTERACTIONS AND TRANSACTIONS THROUGHOUT JOURNEY

What she measured you don’t get Source: Mashable, BBC, Time,

What she measured you don’t get Source: Mashable, BBC, Time,

8 IF WE REWARD INTERACTIONS IN LOYALTY PROGRAMS…...

SOCIAL MEDIA USAGE IS HERE TODAY 9 41% Doesn’t participate in any social media Age: 65 Income: $30k 15% Belongs to one network / rarely posts Age: 39 Income: $75k 16% Consumes daily via multiple networks / rarely contributes Age: 36 Income: $85k 6% Actively engages on one network with friends Age: 47 Income: $95k 19% Actively engages multiple networks with diverse group Age: 39 Income: $75k 3% Heavy daily usage & creation across multiple networks Age: 24 Income: $80k Based on Aimia study across US consumers

REWARDING INTERACTIONS – THE RISK 10Proprietary & confidential. © 2013 Aimia. All rights reserved.

REWARDING INTERACTIONS WITH POINTS Proprietary & confidential. © 2013 Aimia. All rights reserved.

REWARDING INTERACTIONS - SUSTAINABLY 12Proprietary & confidential. © 2013 Aimia. All rights reserved. Costs 3 years Year 1 Earning Year 2 Earning Year 3 Earning Costs 3 years Year 1 Earning Year 2 Earning Year 3 Earning 0 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000 110000 120000 130000 140000 150000 160000 170000 180000 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000 9000000 10000000 11000000 12000000 40179 40210 40238 40269 40299 40330 40360 40391 40422 40452 40483 40513 40544 40575 40603 40634 40664 40695 40725 40756 40787 40817 40848 40878 40909 40940 40969 41000 41030 41061 41091 41122 41153 41183 41214 41244 41275 41306 41334

Traditional loyalty programs are one dimensional Transactions = Rewards as a mechanic 13 Source: Bone 2009, …….

Proprietary & Confidential. © 2013 Aimia. All Rights Reserved. RELEVANT CUSTOMER EXPERIENCE It’s about every touch point being relevant to the customer. 14 Loyalty is changing as it now means Pre Purchase, Purchase and Usage.

Proprietary & Confidential. © 2013 Aimia. All Rights Reserved. USEFUL CUSTOMER EXPERIENCE It’s about every touch point being frictionless to the customer. 15 Loyalty is changing as it now means being where the customer is on a Journey.

16 Wait! It’s my data Source: Aimia Four Futures

17 Wait! It’s my data Source: Aimia Four Futures

INTERACTING SOCIALLY IS BASED ON TRUST Control TrustAdded Value Customers have information on what is collected, from where and for what purpose Customers understand there is a value exchange through recognition, rewards and offers Comes from confidence that data is held securely and used in mutually agreed way Transparency Customers have control over what they provide, how it is used and how it is shared 18 Put TACT at the heart of your Program Source: UK House of Commons http://www.publications.parliament.uk/pa/cm201213/cmselect/cmjust/572/572vw35.htm Source: Aimia Website http://www.aimia.com/files/socialpurpose2012/in_our_business.html

Utility, Relevance and TACT enables us to see more interactions but To recognize every check- in, product review, “like” or social interaction, we need a different way to reward people.

HELP ME BELONG SOCIAL CURRENCY MAKE ME FEEL SPECIAL ESTABLISHING RELATIONSHIPS IS INCREASINGLY ABOUT CREATING SOCIAL CURRENCY 20

RECOGNITION REWARDS CHANGE THE RELATIONSHIP WITH MEMBERS FRIENDS RELATIONSHIP COMPANY TRANSACTION MONEY PIZZA 21

Proprietary & Confidential. © 2013 Aimia. All Rights Reserved. USING GAME MECHANICS TO REDEFINE LOYALTY Challenge Progression Achievement On-time payment Purchased tickets 3 times Purchased travel 5 times

SIMPLE EXAMPLE FROM STARBUCKS Gift Economy Relevant. Useful? Social Currency

A JOURNEY - BEING A MOMMY 24Proprietary & confidential. © 2013 Aimia. All rights reserved. Promote & Offer Sharing & Rewarding via Facebook Members Engage Others via Twitter Enroll & Welcome Capture Purchases Targeted Offers Partners & Progress Tracking Rewards, Promotions & Charities

Loyalty programs look to deliver a rounded, three- dimensional experience Harnessing social currency through a gamified, useful & relevant experience 27

28 THANK YOU

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