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8 scientifically validated tools to drive advocacy, leading to longterm profitable relationships with your client base: - Member get Member - Beta Testing - Hawthorne Effect - Ambassador Programme - Causal Campaigns - Community Platforms (user help user) - Advocacy Tracking (NPS & else) - Innovation (Products/Service)
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Key tools to drive profitable customer relationship Berlin, May 22nd 2012 Alexander Meili, European Strategy Officer
Page: 2 © 2012
• ICLP Loyalty
– A full-service loyalty marketing agency with a global presence – 25 years of experience in loyalty marketing – Strategy / Insight / Dialogue / Delivery
• Collinson Latitude (sister company) – Innovative products/tools delivering incremental revenue to clients
Who we are
About Telco Loyalty
Page: 4 © 2012
Increasing need of innovative loyalty Saturated Markets Digital Revolution:
Cannibalization
-10 €Bn
SMS Revenue Loss due to OTT players of telco operators worldwide, 2011
Tough macro context: Commoditization
European Countries in Recession (at least 2 consecutive quarters
of negative growth)
(1) Source: Eurostat, March, 2012 and IMF, 2012.
17 mill. people jobless
(11%)
(1) Source: Ovum, 2012.
Focus on
retention Demand contraction
Increase of commercial
agressiveness
Page: 5 © 2012
20% expect shopping
vouchers as loyalty reward
50% expect higher
customer level support when being
loyal or premium client
76% prepaid subscribers rank loyalty programs offering high value
gifts most appealing (71% on contract)
3rd most important
reason to change provider (after: new handset,
lower rates)
TELCO LOYALTY
FACTS
43% Telcos have a loyalty
program (Americas: 60%) (Europe: 35%)
74% Points driven
4% 3rd party
model
66% believe that
customers are less loyal today
than they were two years ago
Operators
Subscribers
Telco Loyalty Facts
70% cite customer
retention and loyalty as the critical factor
for driving their growth
Focus Shift Happening
Sources: ICLP, Amdocs, Buongiorno , World Mobile Congress
Page: 7 © 2012
Recent Programme Launches
Page: 8 © 2012
Loyalty Models applied
‘Information led' Customers receive Telco
promotions and exclusive Telco-Partner information – no
registration needed
‘Points' Customers receive points for
money spend and interactions with Telco that can be
redeemed for new telco products
‘Tiers' Tiered program that recognises
customers according to ARPU spend with telco and
non-telco services
‘Tiers and Points' Reward and Recognition
program that offers telco and non-telco services and rewards
Privileges (soft)
Incentives (hard) targeted
targeted
simple
simple
programmes
no programmes
legend:
source: ICLP strategy, 2011
Page: 9 © 2012
Loyalty Models applied
‘Information led' Customers receive Telco
promotions and exclusive Telco-Partner information – no
registration needed
‘Points' Customers receive points for
money spend and interactions with Telco that can be
redeemed for new telco products
‘Tiers' Tiered program that recognises
customers according to ARPU spend with telco and
non-telco services
‘Tiers and Points' Reward and Recognition
program that offers telco and non-telco services and rewards
Privileges (soft)
Incentives (hard) targeted
targeted
simple
simple
programmes
no programmes
legend:
source: ICLP strategy, 2011
11% 4%
57% 28%
trend increasing!
Page: 10 © 2012
Why is loyalty getting this buzz?
Word of mouth
From acquisition to
long term engagement Retention cost <
Acquisition cost Profit center
Churn prevention
Customer Lifecycle
Acquisition Customer retention Customer win-back
Avoid downselling
Intensification
Activation
Customer value Upselling
Page: 11 © 2012
However, some failed…
Low engagement of customers
Lack of customer insight
Proposition not compelling enough
Performance insufficiently measured
Business case built on non-realistic grounds
Lack of top executive sponsorship
source: http://blog.iclployalty.com/tag/loyalty-programme-2/
What is the Secret of Successful Loyalty?
Page: 13 © 2012
The Tool Set
Page: 14 © 2012
Follow Loyalty Trends? Which ones?
mainly tactical – long-term engagement not guaranteed
Page: 15 © 2012
Match competitor proposition?
no differentiation – long-term engagement not guaranteed
Page: 16 © 2012
Start with the Loyalty Ladder!
Traditional marketing
Loyalty marketing
Prospect
Customer
Client
Supporter
Advocate!
driving Advocacy is the key to guarantee long term engagement
What drives customer advocacy?
Page: 18 © 2012
3. Empowered involvement
„…would you like to help design the new Boing airplane?...“
1. Referral program
Welcome to AT&T Refer-
A-Friend program
-10% Customer
acquisition cost
2. Tryvertising
Vodafone Spain starts Joyn beta
testing program
25% Buy the product
after testing
4. Ambassador program
„wanna become a trend scout for a
year?“
High partici-pation and awareness
5. Causal campaigns
BT, in support of Childline
generates volunteer
sales
6. Influencer outreach
advisory panel
30% sales boost
7. Advocacy tracking
Feed-back
outside-in
churn reduction
8. Innovation
(non core) Benefit Bundles
adding differentiation
churn reduction
Growth by customer advocacy: 8 tools
Page: 19 © 2012
Exp
ecta
tion
Leve
l
Exp
erie
nce
Leve
l Added Value
Experience
1. Referral program 2. Tryvertising
3. Empowered involvement
4. Ambassador program
5. Casual campaign
6. Influencer outreach
7. Advocacy tracking 8. Innovation
Adocacy Toolbox
CEM: Exceeding customer expectations
Page: 20 © 2012
Performance Predictor
NPS leaders 4x growth vs.
industry average
the more clients who are advocates, the higher the growth
Page: 21 © 2012
Take-Aways
Difficult economy calling for impactful loyalty
Advocacy = long term strategic goal of loyalty
Correlation with revenues as ROI
Most powerful asset: Existing Customers
Validated Tools to Drive Advocacy
Thanks! ICLP Loyalty Alexander Meili European Strategy Officer [email protected]
