telco loyalty - approaches from other sectors (iir telecoms conferernce, monaco july 2011)
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Driving greater customer loyalty: Exploring approaches from non-telco sectors
Alexander MeiliPlanning Director Europe
ICLP
• About ICLP
• Research – external view
• Customer lifecycle – internal view
• Best practice examples
• Conclusion and take aways
Content
• About ICLP
• Research – external view
• Customer lifecycle – internal view
• Best practice examples
• Conclusion and take aways
Content
Who we are
ICLP = International Customer Loyalty Programmes
A full-service loyalty marketing agency with a global presence
25 years of experience in loyalty marketing
LATITUDE
innovative products/solutions delivering incremental revenue to clients
Definitions: Loyalty Marketing & Loyalty Programmes
Using customer data and insight to generate
an incremental shift in behaviour
Customer proposition:
• Reward• Recognition
• Benefits
Loyalty Programme (memberships, points/tiers, rules)
• About ICLP
• Research – external view
• Customer lifecycle – internal view
• Best practice examples
• Conclusion and take aways
Content
Programme saturation levels in Europe
Very saturated
Saturated
© ICLP research 2011
4.5
Programmes per adult
consumer (average)
Saturatedmarket
Ranking: biggest loyalty programmes in Europe
• Sainsbury’s Nectar• Boots Advantage Card• Tesco Clubcard• British Airways Executive Club• Airmiles• Waterstones• Ikea Family• Diamond Club (bmi)• Costa Card• Ladbrokes
• Fidati (Esselunga)• Il Gigante• Nectar Italy• Carta Viaggio (Trenitalia)• Mille Miglia (Alitalia)• Agos• Findomestic• You and Agip Membercard• Sidis Card• Carta Club (Supermercati)
• Carrefour Carte Fidelité• S’Miles• Cartes Intermarché• Carte Auchan• Carte Leclerq• Air France Flying Blue• Carte Super U• Ikea Family• Carte Fnac• Club Total (Total)
• Travel Club (Airmiles)• Repsol YPF• El Corte Inglés• Carrefour• Iberia• Vips Club• Club AVE (AVE train)• Sol Melia MaS• NH Hoteles
• Migros Cumulus• Coop Supercard• Interior Plus Karte• PKZ Insider• Bonuscard (Jelmoli)• Pluscard (Globus)• UBS Keyclub• A la carte (Möbel Pfister)• Myone (Manor)
• Payback• Lufthansa Miles & More• Deutschland Card• Ikea family• BSW Bonusclub• Bahncard (Deutsche Bahn)• Shell Clubsmart• Douglas Club• Airberlin (Top Bonus)
Programme ubiquity or survival of the fittest?
© ICLP research 2011
Distribution of biggest loyalty programmes in Europe according to sector (units)
75%
Ranking: biggest loyalty programmes in Europe
• Sainsbury’s Nectar• Boots Advantage Card• Tesco clubcard• British airways Exec. Club• Airmiles• Waterstones• Ikea Family• Diamond Club (bmi)• Costa Card• Ladbrokes
• Fidati (Esselunga)• Il Gigante• Nectar Italy• Carta Viaggio (Trenitalia)• Mille Miglia (Alitalia)• Agos• Findomestic• You and Agip Membercard• Sidis Card• Carta Club (Supermercati)
• Carrefour Carte Fidelité• S’Miles• Cartes Intermarché• Carte Auchan• Carte Leclerq• Air France Flying Blue• Carte Super U• Ikea Family• Carte Fnac• Club Total (Total)
• Travel Club (Airmiles)• Repsol YPF• El Corte Inglés• Carrefour• Iberia• Vips Club• Club AVE (AVE train)• Sol Melia MaS• NH Hoteles
• Migros Cumulus• Coop Supercard• Interior Plus Karte• PKZ Insider• Bonuscard (Jelmoli)• Pluscard (Globus)• UBS Keyclub• A la carte (Möbel Pfister)• Myone (Manor)
• Payback• Lufthansa Miles & More• Deutschland Card• Ikea family• BSW Bonusclub• Bahncard (Deutsche Bahn)• Shell Clubsmart• Douglas Club• Airberlin (Top Bonus)
© ICLP research 2011
What about the telco sector?
© ICLP benchmark 2011
Telcos with a loyalty programme
Low penetration of loyalty programmes within telco operators…
Telcos with a loyalty programme
Based onpoints incentives
loyalty programme
… with significant regional differences
25%
60%
Contract / subscription business(long term)
„No“ POS
Post payment
Customer Data(already available)
Note: Pre-paid business or ‘PAYG’ is following a different rationale, with other segment characteristics
otherpossibilitiesto connect
with customers
Why a programme is not the only option?
Contract / subscription business (long term)
„No“ POS
Post payment
Customer Data (already available)
Retail Travel Coalition MediaFinance Insurance
Similarities to other industries
Different sector –
Different customer expectation?Discounts
Vouchers (purchase)
Points/miles
Special events
VIP service
Products and services
Others
No incentive
What kind of incentive / benefit would you expect?
Retail Airlines Hotels MediaBankingInsuran. Telco
Attractiveness of incentive/industry sector (top 3)
Discounts
Vouchers (purchase)
Points / Miles
Special Events
VIP Service
Products and Services
Others
No Incentive
ICLP market survey in DACH region, 2011
• About ICLP
• Research – external view
• Customer lifecycle – internal view
• Best practice examples
• Conclusion and take aways
Content
srg
Focus
Acquisition(introduction stage)
Up - and X-Sell(entry stage)
Retain / Hold(maturity stage)
Churn prevention(decline stage)
Customer lifetime
Cu
sto
mer
val
ue
The customer lifecycle
• About ICLP
• Research – external view
• Customer lifecycle – internal view
• Best practice examples
• Conclusion and take aways
Content
Segmentation – sign up for the cards most relevant to you
Sixt cards
Sixt Express Card
for all Sixt customers
Sixt Corporate Card for
corporate customers
Sixt Ladies Card profit from
your partner's corporate rate.
Sixt Gold Card customers
renting more than 5 times
per year
Example 1 – SIXT Car Rental
Up-sell promotion on
transactions(!) made
Mechanic:
• Online sales promotional tool that rewards customers for credit card purchases made
Reward:
• Tokens are issued to participants for each qualifying purchase made
• Matching tokens can be redeemed against a prize
Example 2 – VISA International
Protect share of wallet –
“My route”
• Do you fly a certain route on a regular
basis?
• double award miles when you fly your
favourite route within Europe - both ways.
• This makes collecting miles twice as much
fun – and you reach your award goal even
faster.
• Idea based on telco marketing
(‘my favourites’)
* Winner of the Loyalty Innovation award – Loyalty Awards 2010
Example 3 – Air Berlin
Leverage the power of partners (‘show your card and save’)
• Exclusive partner offers to American Express card members
• Advantage of a special price at selected partners in travel, leisure, dining and shopping offers from around the world
Example 4 – Amex Selects
• Full fledged loyaltyprogramme set up to‘fight attrition efficiently’.
• Unlike other industries, customer seniority is rewarded.
Example 5 – Fid’ Allianz Insurance
• About ICLP
• Research – external view
• Customer lifecycle – internal view
• Best practice examples
• Conclusion and take aways
Content
External view: know the market (across the industry)• You are not alone
• Your customers are the same as the members of Miles&More, Avis, Allianz…
Internal view: manage the customer lifecycle• It‘s about segmentation, emotion and experiences
Explore approaches from other industries• It‘s not about copying
• it‘s about making great ideas smarter and adapting to own needs
Take Aways
Q&A
Alexander Meili
Planning Director Europe
Tel +41 44 533 30 41
twitter @ICLP_loyalty
Your contact at ICLP