GSummit SF 2014 - Beyond the Transaction: Loyalty's Next Act is Gamification by Bill Hanifin

© Hanifin Loyalty 2014

Beyond the transactionCould Loyalty’s next act be gamification?


Are you a one percenter?

© Hanifin Loyalty 2014 GSummit 2014 Photo: Andrew Shaylor

© Hanifin Loyalty 2014 GSummit 2014


Outlier


Anomaly


You?


“Loyalty cards are usually abad business strategy”

Source: Slate.com

“They’re either a creepy way to monitor

and exploit your habits”“Or a desperate gambit by weak retailers

to distract you from their own shortcomings.”


But do you even know what Loyalty is?


Is this it?


Emotional loyalty is powerful


Emotional loyalty overcomes just about any

obstacle


What’s your worldview of Loyalty Marketing?


Rewards programs typically feature an imbalance between reward and recognition

Data Driven Customer Marketing

Direct Marketing

Campaigns

Loyalty Marketing

Rewards Program

Loyalty Program


Realize it’s a customer strategy that you need,not necessarily a loyalty program.

Data Driven Customer Marketing

Loyalty Marketing

Loyalty Program

© Hanifin Loyalty 2014 Source: 2014 Brand Keys Customer Loyalty Engagement Index

Brands with the highest loyalty ratings employ tailored customer loyalty strategies

They wouldn’t do it if it didn’t work


We serve distracted consumers with high expectations & shrinking attention spans


Contextual Loyalty has behavioral science in its DNA

Blend knowledge of psychology and human behavior to create more

flexible value propositions

Connect dots & deliver information and value beyond the purchase

transaction

Reward and recognition newly defined by

intrinsic and extrinsic motivation

Respond to mobility,spark engagement in proximity to purchase

decision or “by request”

Contextual Loyalty incorporates principles of gamificationto deliver value with high availability and liquidity

Rewards Value

ProximityLifecycle

Customers as

Humans


Brands that are winning


Fulfilling brand promises through contextual relationships

Membership fee creates investment & commitment,

consolidates wallet share

New Perks program promises “the more you enjoy, the more

we’ll reward you in unexpected ways”

Surprise and delight strategy avoids reward

transparency and provides flexibility

Non-currency program with collection of tools designed to customize and simplify home

improvement

Currency based program with fitness centric community delivers on brand promise


How do we make

loyalty programs

contextual?

We need a new vocabulary

Replace first gen words target, inform, transact, reward, recognize

With

▪ Engage, encourage, challenge▪ Tease, surprise, delight▪ Join, journey, achieve▪ Honor, respect, trust

GSummit 2014


See the connection between Loyalty Marketing & Gamification?


Thanks!

Bill HanifinManaging Directorwww.hanifinloyalty.com

A unique source of independent & unbiased insights oncustomer loyalty & data-driven marketingwww.LoyaltyTruth.com

GSummit 2014

http://www.hanifinloyalty.com/

http://www.loyaltytruth.com/

Business

GSummit SF 2014 - Beyond the Transaction: Loyalty's Next Act is Gamification by Bill Hanifin