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Copyright © 2014, SAS Institute Inc. All rights reserved.Copyright © 2014, SAS Institute Inc. All rights reserved.
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Analytics Differentiates Next-Generation Loyalty Programs
Panel discussion featuring:
• Jack Phillips – CEO, International Institute for Analytics
• Terri Albert – Clinical Assoc. Professor, Kellogg School of Management
• John Balla – Principal Marketing Strategist, SAS
@IIAnalytics @KelloggSchool @JohnBalla
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About the Panelists
@IIAnalytics @KelloggSchool @JohnBalla
Jack Phillips Terri Albert John Balla
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Loyalty Programs - Context
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2.6B 242M 10.7
Growth rate = 26.7% (1% annual population growth)
Active memberships declined 46% to 44%
Sources: Colloquy, Maritz, US Census Bureau
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Consumers: Loyalty Equation Drivers
47%
28%
5%
5%
7%
5%
5%
17%
29%
17%
13%
13%
5%
5%
13%
15%
23%
24%
11%
9%
6%
Discounted Prices
Convenient Location
Operating Hours
Expedited Service
Early/Special Access to Products
Exclusive Events
Personalized Communication
Customers value discounts and location over other store benefits
Ranked First Ranked Second Ranked Third
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Consumers: Loyalty Driver Variability
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79%
63%
45%
33%
35%
20%
25%
79%
76%
49%
49%
26%
13%
8%
83%
74%
45%
49%
28%
13%
9%
69%
76%
40%
37%
33%
26%
19%
Discounted Prices
Convenient Location
Operating Hours
Expedited Service
Early/Special Access toProducts
Exclusive Events
Personalized Communication
Customer preferences vary by store type
Department General Merchandise Grocery Specialty
% of shoppers who ranked the benefit in the top three
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Enterprise:Top Three Loyalty Program Challenges
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Enterprise: Loyalty Program Success Metrics
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Enterprise: Customer Engagement Channels
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Enterprise: Number of Channels
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Consumers: Different Segments – Varying Values
30%
14%
51%
38%
43%
51%
73%
30%
28%
43%
41%
35%
56%
69%
9%
16%
24%
43%
47%
80%
80%
PersonalizedCommunication
Exclusive Events
Early/Special Access toProducts
Expedited Service
Operating Hours
Convenient Location
Discounted Prices
Shopper Segments Place Different Importance on Benefits
Necessity Shoppers Practical Shoppers Pleasure Shoppers
% of shoppers who ranked benefit in the top three
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Consumers: What One Store Earns Your Loyalty Best?
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Consumers: What Makes That One StoreStand Out?
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Enterprise: Top 3 Priorities of Loyalty Program
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* Based on respondents who have customer experience programs.
Enterprise: Customer Experience ProgramIntegrated with Loyalty
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Enterprise: Loyalty Program Components
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Enterprise: Social Media as Part of Loyalty
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Enterprise: Data Analysis Core to Loyalty?Data-Driven Culture?
Data Analysis
Data Culture
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Enterprise: Types of Customer Information Used
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Enterprise: Types of Analytics Used
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Conclusions for Loyalty
Where to Focus:
Customer Experience, Perceived Value.
“Retaining” or “Up-selling”
Respect Their Channel Preferences.
• Mail, email, SMS, phone, in-person…
Invest in understanding your customer, their values
• Demographics, age, behavior
• Use a wide range of analytics.
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Thank you!
@IIAnalytics @KelloggSchool @JohnBalla