crm-loyalty prgrms examples
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Loyalty 2.0Five Key Elements of Next
Generation Loyalty
Sean McDonald, DellScott Ekman, Rockler
David Rosen, Loyalty Lab
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About Dell About Dell Founded in 1984 by Michael Dell
Direct Model is the foundation for Dell¶s business
Dell maintains a consistent focus on offering the best
value and customer experience Dell is a trusted technology innovator with a
diversified, comprehensive IT portfolio
Dell is a global company committed to its customers
and employees Ranked 34 of Fortune 500 (2007)
Revenue
± Q2 Preliminary Revenue of $14.8 Billion
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Dell Community
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5 Customer Needs of Community
To Be Heard(Public suggestion
box, voice)
Guidance and Affirmation
(Confidence with their choices)
To Learn and
Share What TheyKnow
(³How To´information and
expertise)
Help or To HelpOthers
(Solve problems)
To BeRecognized
(Fame, Glory,Rewards)
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Community Loyalty The loyalty program at Dell is focused of the relationship betweenDell and the Community.
The 3 programs listed below allow Dell to recognize our Community contributions.
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DellCommunityLoyalty
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About Rockler Founded in 1954 by Nordy Rockler
Started as a mail order woodworking supply
company; first retail store opened in 1978 Internet Retailer¶s Best of the Web ± Top 50 Web
Sites (2005)
$100M+ 2006 revenue
Publishes key trade journals, ezines
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Rockler Rewards
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About Loyalty Lab A market leader
± We are the fastest-growingprovider of loyalty programmanagement for consumer brands
A game changer
± As a Software-as-a-Servicecompany we deliver best-of-breed loyalty technology over the Internet
A thought leader ± We are seasoned loyalty
experts who build our expertise into our product andprovide ongoing hands-onservice and support
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The New Customer Loyalty ImperativeThe basic tenants of loyalty are still relevant:
± Learning from your customers so you can respondintelligently
± Aligning incentives to best protect and grow LTV
± Enhancing brand and strong personal feelings of your bestcustomers
Next Generation of loyalty essentially uses new tools to allowmarketers to do all these things better, in ways more alignedto the changing ways customers are interacting with you
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High Return on Investment Efforts invested in best customer management far outstrip other marketing efforts
10% increases in marketing effectiveness result in
x% increases in customer value« Acquisition Margin Retention
Amazon 0.5% 11% 28%
Ameritrade 1.2% 11% 30%
eBay 1.4% 11% 31%
E*Trade 1.1% 11% 30%
Gupta, Lehmann & Stuart, ³Valuing Customer´, Marketing Science Institute, No. 01-119, 2001
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The new loyalty paradigm« Broadens the definition of customer lifetime
value ± it¶s not just transaction dollars Extends the description of the customer
relationship -- customers¶ actions influenceeach others¶ lifecycle development
Better recognizes and responds to the obviousand subtle differences in customers
Successfully rewards both purchasers andadvocates Follows the customer where she goes and
better influences who she knows
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5 Key Elements1. Identifies, Segments and Differentiates
Customers
2. Makes Boundaries Flexible and Extendable3. Enhances Your Brand Among Best
Customers
4. Aligns Directly with Company Success5. Promotes and Facilitates Two-Way
Engagement
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Identify, Segment, Differentiate
Recognizes and adapts to deeper levelsof consumer affinity
³Clubs´ join tiers as special places
Magnitude changes in:
± Offer targeting and eligibility
± Communication strategies
± Earning means
± Rewards
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MyCoke Rewards
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Flexibility and Extendibility Earning and Burning features grow by
extending program to strategic partners
On-brand partners tap into the insights,community and buying power of greatprograms
± The more valuable the program tomembers, the more likely they will be toengage
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Extending Loyalty to On-Brand Partners
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Marketers are Searching for Ways to Tap
into Social Loyalty
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Enhances Brand Shifts focus from ³self promotion´ of
retail brand
To ³member promotion´ of retail brand
Recognizes and rewards members¶contribution to ³positive share of voice´
± Commenting
± Reviewing
± Referring
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Viral Advocacy
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Viral Advocacy
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Viral Advocacy Thru Facebook
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Aligned to Company Success
Ties point-earning/benefits to deeper understanding of LTV
± Increased gross margins
± Lower cost to serve
± Lower acquisition costs
± Higher conversion rates ± Ratings and reviews
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Log in; come
by
Refer a friend,
sign up a
cousin, build a
wish list
Play an
Advergame
PLCC or co-
brand card
usage, 2x
points on every
purchase
Be nice to a
CSR, to a sales
associate
Any click-
through, anyweb behavior,
updating
personal
profile
Stop calling
points!
Opt-out of print
communicatio
n
Direct
booking
WOM-write a
product review,
post to a forum,
make a blog
entry
Enter or win a
sweepstakes
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The Power of Customer Reviews
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Promotes Two-Way Engagement
Loyalty 2.0 heavily focused on dynamic,two-way interaction
Drives significant consumer insightsthrough deep set of tools:
± Collaborative message boards
± Forums ± Frequent, targeted market research
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Forums
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IdeaSharing