digital campus day3 module20 loyalty developing customer value lb

8/12/2019 Digital Campus Day3 Module20 Loyalty Developing Customer Value Lb

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Developing your customersvalue

DIGITAL PASSPORT - DAY 3Paris - April 5, 2013

Guillaume CABRERE, CEO, Digital UniversityFranois ROUSSEAU, Academic Consultant, Digital University


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BNP PARIBAS Personal

Agenda

2. The customer experience is the rst step to loyalty

1. What is at stake?

3. How digital impacts loyalty: it all starts with theCustomer Area

4. Leveraging customer loyalty beyond the Customer Are


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Agenda

1. What is at stake?


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NB: Building loyalty is notsatisfying every customer

Loyalty: the art of creating aprotable and sustainablerelationship with customers

Building loyalty is increasing ones share of future


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Building loyaltythrough tangible and emotional benets

RewardRecognitionPointsPromotionsGifts...

EmotionSelf-esteem

SecurityPrivileges

...


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4 good reasons to build loyalty

3The additional purchases raisealong with the customer value

1 Aquisition is expensive

The average cost of a prospect is 3times higher than conserving a client

4Loyal customers are generatingrecommendations

2The churn cost

of your best customers is verypenalizing

ROI=

LTV - Acquisition cost

Acquisition is expensiveChurn Rate

=How many of the 10% top

customers became non-buyers?

The churn cost

Incremental Customer Value=

Acquisition Cost / Revenuein the past 12 months

Additional purchases

Net Promoter ScoreRecommendations


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You never own your customers

For this kind of purchases, I only think about...

% of exclusive clients(Fully agree)

2004 2011

eBay 59 % 9 %

Price Minister 29 % 8 %

Source: Baromtre C2C dOpinion Way / Donnes ctives re-travailles.


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Customer loyalty:a matter of survival


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Remember: at the age of the customer, UX mattersmore than ever

Source: Forrester

Age of the CustomerPower comes from

engaging withempoweredcustomers

Contenders inclFacebook, IBMBuy, Apple

Age of ManufacturingMass manufacturingmakes industrialpowerhousessuccessful

Ford RCA, GE,Boeing, P&G,Sony

Age of DistributionGlobal Connectionsand transportationssystems makedistribution key

Age of informationConnected PCs andsupply chain mean thosewho control informationow dominate

Wal-Mart, Toyota,UPS, CSX

Comcast, Amazon,

E*TRADE, AmericanExpress, Google

S o u r c e s

o f d o m i n

a n c e

S u c c e s s f

u l C o m p

a n i e s


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Discover

Evaluate

BuyUse

Get support

Leave Re-engage

Access


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Agenda

2. The customer experience is the rst step to loyalty


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Apple got it before

"Youve got to start with the customer experience and work back toward the technology - not the other way around."

- Steve Jobs

Its not what computer can do, its what you can do.


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Customerexperience: the rst

step to loyalty


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The user experience is...

The way your customersperceive their interactionswith the company.

Adopting a customer-centricstrategy at every stage ofdecision making.

UX : User Experience


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With a successful customer experiencecome huge prots...

Hotels

Internet and wireless service providers

Airlines

Insurance providers

Banks

Consumer electronics manufcaturersTV service providers

Health plans

Retailers 2 $US

66 $US

8 $US

10 $US

12 $US

24 $US

65 $US

60 $US

44 $US

14 $US

4 $US

23 $US

8 $US

90 $US

203 $US

44 $US

450 $US

825 $US

15 $US

0 $US

56 $US

75 $US

150 $US

225 $US

481 $US

788 $US

495 $US

Additional purchasesChurn reductionWord of mouth

Tota

Source : Forresters North American Technographics Customer Experience Online Survey Q4 2011 (US)


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... and some industries are more equal than others

Very poor Poor Ok Good Excellent

Industry (average)Retailers (81)

Hotels (76)

Parcel delivery/shipping providers (75)

Consumer electronics manufacturers (73)

Insurance providers (71)

Banks (70)

Investment rms (70)

Airlines (66)

Internet and wireless service providers (63)

TV service providers (56)

Health insurance plans (55)

= average industry score

Base : US online consumers who have interactedwith brands in the industries

Source : Forresters North American Technographics Customer Experience Online Survey Q4 2011 (US)


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You need your customers...

... way more than they need you


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Agenda

3. How digital impacts loyalty: it all starts with theCustomer Area


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The Customer Area: home banking


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Customer Area: higher expectations

Source : Forrester, 2011

of Europeans are interested inCustomer Area expenses

management functionalities

40 % of Europeans are inuenced whilepurchasing a nancial product bythe possibility of online account

management

18 % of Europeansbanking are c

bank accoum

9

Base: banking industry


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1. Selfcare

Simpli

Access to selfcareservices

Personal information,accounts and products

Online help

Look up accounts andaccess to specic actions


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2. Transactional

Online subscription andupselling

Loyalty programand deals

Online by-product shop


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3. Relational

Perso

Personalized offers

Help area

Crowdsourced customer support

Pro


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A fully customer-centric approach

Dashboardpersonal banking:

Let the customers chosewhat they want to browseon their Customer Area


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4 key susccess factors to develop the useof a Customer Area

1 Make known

2Encourage

subscription

3 Ease registration

4 Build loyalty

! Dedicated MD messages! Insert in every communication! Media campaigns

! Reward! Game! Exclusive benets

! Push on homepage! Registration customer journey!

Login / Password journey

! Welcome pack! Service notications! Self-promotion & demonstration of! Good deals / promotion / incentives


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Agenda

4. Leveraging customer loyalty beyond the Customer Are


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What can we learn?

Average customer value: 28,9 "

Average buyer (who do not sell) value: 18,3 "

Average seller value: 53,9 "

Average seller AND buyer value: 89,7 "

Average customer value is < 0 " for 0,17 % of our customers(because of a too generous coupon distribution policy)

Y CRM i b i i i d di


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Your eCRM actions must be prioritised accordingto customer value


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1. Welcome process2. Loyalty program

3. Permanentsatisfaction survey


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1. Welcome process


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Go further with your Mac

D+0(1 hour later!)


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The best accessories for your MacBook Pro

D+8


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Your subscription One to One : useful information

D+11

Extend your access to assistance for


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Extend your access to assistance for your McBook Pro

D+60

Change your pictures into amazing gifts


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Change your pictures into amazing gifts

D+80


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Thanks to digital loyalty programs can reach


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Thanks to digital loyalty programs can reachseveral strategic goals

Objectives: Raise the amount of purchases sales recommendation advice given

Example of a C2C website

Thanks to digital loyalty programs can reach


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Thanks to digital loyalty programs can reachseveral strategic goals

Points rewarding on key actions: purchasing, selling, recommending, advising The gift value gets higher along with the amount of earned points

How it works:

A 2-person trip to Seychellesor a ! 1,000 discount

100 pts=

250 pts=

1,000 pts

=

5,000 pts

=

! 10 discount A bottle of champaign or a! 30 discount

A reex camera or a! 100 discount


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http://www.youtube.com/watch?v=Jd0ol7b48hw


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American Express go t it: on B2B...

Knowledge

http://www.youtube.com/watch?v=Jd0ol7b48hw

A d B2C
http://www.youtube.com/watch?v=Jd0ol7b48hwhttp://www.youtube.com/watch?v=Jd0ol7b48hwhttp://www.youtube.com/watch?v=Jd0ol7b48hw


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... And B2C

Activation

http://vimeo.com/61840865

A i E S T S
http://vimeo.com/61840865http://vimeo.com/61840865http://www.youtube.com/watch?v=0B-Km9vAIwo


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American Express: Sync + Tweet + Save

Activation

http://www.youtube.com/watch?v=0B-Km9vAIwo

A i E t it
http://www.youtube.com/watch?v=0B-Km9vAIwohttp://www.youtube.com/watch?v=0B-Km9vAIwohttp://www.youtube.com/watch?v=0B-Km9vAIwo


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American Express got it


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3. Permanentsatisfaction survey

Online satisfaction survey a C2C example


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(chiffres illustratifs)Online satisfaction survey - a C2C example

Purchase Online survey

Online satisfaction survey:

Opening Rate Click Through Rate

N.B: this survey generated an incremental turn over (+ ! 300k within 4 weeks)

D +3purchase

65 % 35 %

Intention to buy or sell


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63,4 %

37,7 %

19,

14,1 %

15,0 %

3,9 %

7,5 %

14,6 %

5,9 %

8,3 %

20,5 %

17,0 %

2,4 %

3,4 %

26,9 %

Intention to buy or sell

Intention to sell

Intention to buy

Intention to come back

Within 3 months:

(Illustrative gures)

Two in three buyers have visited competitor before


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Two in three buyers have visited competitor before

Q: Before buying this product what other website have you visited?

0 %

70 %

eBay Amazon 2xmoinscher Cdiscount FNAC Alapage Rueducommerce Kelk

2,7 %8,2 %

18,9 %

19,4 %21,6 %

33,5 %

62,8 %

When 1 individual in 5 makes 2 thirds of prot


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relevance makes better emailing

18% of individuals in the database got the67% of total potential sales have been rea

18%

67%

Loyalty: four things to remember


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2Build a good balancebetween emotional and

tangible benets

Loyalty: four things to remember

3The Customer Area isyour rst agship: take

care of it!

1It starts with customerexperience Not all c


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Any question?

digital campus day3 module20 loyalty developing customer value lb

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