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Silverpop: Taking Loyalty Beyond the Discount

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This document discusses taking loyalty marketing beyond simple discounts. It suggests six new tactics for loyalty programs: 1) using social media to provide a more personal experience, 2) rewarding customers based on their affinities rather than just purchases, 3) enhancing the mobile experience, 4) factoring in customer locations, 5) scoring customers like marketing leads, and 6) using an open architecture to partner with other brands to deepen understanding of customers. The document argues that today's customers, especially younger generations, value online reputations and experiences over simple coupons.

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Taking Loyalty Beyond The Discount Dave Walters, Product Evangelist @_DaveWalters
So Who is This Dude? Twenty-Year Digital Marketer COO @ Loyalty Startup Corporate + Agency Relationship Marketing Practice Lead 2
Who is Silverpop? Silverpop is the Unified Digital Marketing Platform that delivers superior overall “return on relationship” powered by the deepest insight into the way customers behave. 3
4,000+ Brands and 15,000 Marketers Financial Services Retail Energy & Utilities Media Business Services Software Travel & Hospitality Non-Profit Food & Beverage Hardware Entertainment Education 4
Behavioral Marketing Real-time, cross-channel, insanely relevant campaigns to one person at a time automatically driven by analytics of their actions, preferences and profiles.
The Wild West of Loyalty Marketing ~$100/mo./location $50 for 500 $3-5MM/yr. 6
Why Do Loyalty Programs Exist? • They created real choice modifiers and drove strong add-on revenues in specific industries, like travel and retail – Yep, he just used the past tense :: <CREATED> • More market competition drove increasing price and share-of- spend pressures – Sure, the rise of analytics weenies drove new dynamics • Buyers respond positively to more engaging relationships – Newsflash, we’re social beings who like being recognized • Marketing programs have their own momentum – Once proven, it’s hard to kill a big fish 7
When They’re Great High SKU-Level Margins Commoditized Product Steady-State Marketing Budget Repeatable Purchase Cycle Data-Driven Marketers MDF Funds Recurring Customers 8
When They’re Terrible Price-Satisfied Customers Complex Product Offering Commingled With Other Brands Few Fraud Controls No In-Store Training Just Free Stuff Nothing is ‘Learned’ 9
“A completely different mindset is required if any semblance of a loyalty program is going to stick to today’s 20-year-old, who is the prime earner of the next 20 years. Online reputation and real-life experiences will trump a 15% coupon any day of the week and twice on Sundays.” Me, 2010 10
Six New Tactics Beyond Discounts 11
Open Your Social Eyes • Better ‘appreciation dynamic’ • It’s real-time, more personal, and is absolutely scalable • Consider social advocacy on par with item purchases • Use tools like Twitter Advanced Search or Radian6 12
Reward Based on Affinity • Think beyond the item being bought from you • What resonates with the PERSON • Gently test a wide range of hypotheses with partner offers • And then there’s Prime… 13
Go Deep on Mobile • Captain Obvious moment: your users have smartphones • Look closely at hard costs, and then spend that money build an app • Keep the experience immediate, drive- to-web is bad here • Remember non-digital high spenders 14
Factor for Location • Of all the ‘behaviors’, location is among the strongest predictors • Keep a permission layer, but use the data to inform your programs • Don’t miss the opportunity to socially thank visitors 15
Score It Like a Lead • As long as we’re beyond the transaction, go for it! • B2B-stlye lead scoring applies to events beautifully • Group your customers by tier and market to them differently • Experiment aggressively 16
An Open Architecture • The biggest challenge today • Takes affinity-driven rewards to their logical conclusion • Reduce costs *and* deepen your customer understandings • Pick only your best friends and partners 17
The Thank You Economy 18
Questions? Dave Walters  dwalters@silverpop.com  Twitter: @_DaveWalters www.slideshare.net/silverpop Twitter: @SIlverpop www.silverpop.com 19

More Related Content

Silverpop: Taking Loyalty Beyond the Discount

  • 1. Taking Loyalty Beyond The Discount Dave Walters, Product Evangelist @_DaveWalters
  • 2. So Who is This Dude? Twenty-Year Digital Marketer COO @ Loyalty Startup Corporate + Agency Relationship Marketing Practice Lead 2
  • 3. Who is Silverpop? Silverpop is the Unified Digital Marketing Platform that delivers superior overall “return on relationship” powered by the deepest insight into the way customers behave. 3
  • 4. 4,000+ Brands and 15,000 Marketers Financial Services Retail Energy & Utilities Media Business Services Software Travel & Hospitality Non-Profit Food & Beverage Hardware Entertainment Education 4
  • 5. Behavioral Marketing Real-time, cross-channel, insanely relevant campaigns to one person at a time automatically driven by analytics of their actions, preferences and profiles.
  • 6. The Wild West of Loyalty Marketing ~$100/mo./location $50 for 500 $3-5MM/yr. 6
  • 7. Why Do Loyalty Programs Exist? • They created real choice modifiers and drove strong add-on revenues in specific industries, like travel and retail – Yep, he just used the past tense :: <CREATED> • More market competition drove increasing price and share-of- spend pressures – Sure, the rise of analytics weenies drove new dynamics • Buyers respond positively to more engaging relationships – Newsflash, we’re social beings who like being recognized • Marketing programs have their own momentum – Once proven, it’s hard to kill a big fish 7
  • 8. When They’re Great High SKU-Level Margins Commoditized Product Steady-State Marketing Budget Repeatable Purchase Cycle Data-Driven Marketers MDF Funds Recurring Customers 8
  • 9. When They’re Terrible Price-Satisfied Customers Complex Product Offering Commingled With Other Brands Few Fraud Controls No In-Store Training Just Free Stuff Nothing is ‘Learned’ 9
  • 10. “A completely different mindset is required if any semblance of a loyalty program is going to stick to today’s 20-year-old, who is the prime earner of the next 20 years. Online reputation and real-life experiences will trump a 15% coupon any day of the week and twice on Sundays.” Me, 2010 10
  • 11. Six New Tactics Beyond Discounts 11
  • 12. Open Your Social Eyes • Better ‘appreciation dynamic’ • It’s real-time, more personal, and is absolutely scalable • Consider social advocacy on par with item purchases • Use tools like Twitter Advanced Search or Radian6 12
  • 13. Reward Based on Affinity • Think beyond the item being bought from you • What resonates with the PERSON • Gently test a wide range of hypotheses with partner offers • And then there’s Prime… 13
  • 14. Go Deep on Mobile • Captain Obvious moment: your users have smartphones • Look closely at hard costs, and then spend that money build an app • Keep the experience immediate, drive- to-web is bad here • Remember non-digital high spenders 14
  • 15. Factor for Location • Of all the ‘behaviors’, location is among the strongest predictors • Keep a permission layer, but use the data to inform your programs • Don’t miss the opportunity to socially thank visitors 15
  • 16. Score It Like a Lead • As long as we’re beyond the transaction, go for it! • B2B-stlye lead scoring applies to events beautifully • Group your customers by tier and market to them differently • Experiment aggressively 16
  • 17. An Open Architecture • The biggest challenge today • Takes affinity-driven rewards to their logical conclusion • Reduce costs *and* deepen your customer understandings • Pick only your best friends and partners 17
  • 18. The Thank You Economy 18
  • 19. Questions? Dave Walters  dwalters@silverpop.com  Twitter: @_DaveWalters www.slideshare.net/silverpop Twitter: @SIlverpop www.silverpop.com 19