HELLO, MY NAME IS / TUA/, AS IN TOUR GUIDE.

THE OTHER GUY IS HIEN LE, HE WILL TALK ABOUT THE TOPIC “CUSTOMER PROGRAM IN DIGITAL AGE”.

I WILL TRY MY BEST TO AMUSE YOU THROUGH THIS BORING TOPIC IN THENEXT 30 MINUTES.

What is customer program?

PARETO’S PRINCIPLE

"80% of your sales come from 20% of your clients."

First step: Collect your data

Primary data (YOUR data):- Customer survey- Transaction history, customer

database…

Secondary data (THEIR data):- Market research firms- Internet

Who are your customers?

Type: Hunter- “Price is everything”- Loyalty scheme: always discount/

the more you buy the higher discount rate we offer.

- Who: low income class such as students, blue collar workers…

Who are your customers?

Type: Achiever- “I am the best”- Loyalty scheme: gamification with

badges/ rewards.- Who: gamers, high achievers

Type: Luxury shopper- “Get me the most expensive”- Loyalty scheme: personalized

experience, VIP status.- Who: rich, brand conscious

consumers

Who are your customers?

Type: Creature of habit- “Let’s do something old”- Loyalty scheme: seamless

experience with minimum effort/ subscription

- Who: busy people, people who value convenience

Type: Experimenter- “Let’s do something new”- Loyalty scheme: promotion on new

arrival. Early bird program- Who: young and love new things,

maybe tech savvy

Tell them about these loyalty models already!!

Require joining fee (can offer together

with free trial)

Exclusive offers

M1: Upfront VIP fee

M2: FreemiumFree version with limit

Capacity limit. Ex: Soundcloud, Dropbox…

Feature limit. Ex: Spotify…

Student version/ Personal use. Ex: Microsoft Office, Teamviewer…

User limit. Ex: Slack, Mailchimp…

Effort limit. Ex: Candy Crush…

Customer service limit. Phone/ Email support.

Premium version Regular users with higher needs can purchase premium version to

unlock exclusive benefits

M3: Point-based model

77% transaction-based program failed in the first 2 years Offer non-transaction rewards, surprise points…

M4: Personalized model

• Birthday offer• Get to know your customer by name and by heart• Biggest target: luxury shoppers• New model: Subscription Box

M5: Tier-based Model•Umbrella plan (Spotify Family Program, Office 365 Home & Personal)

•Increase benefits by number of users in the same account (Netflix Screen sharing program)

•Pricing by the size of the organization (Slack) or need capacity (Mailchimp)

•Integrate with tier-based model (Bing Rewards program)

M6.1: Coalition network model

+ Easy to setup and join

- High cost

- Low bargaining power

- Uneven CX & data collection

- No loyalty toward brands

M6.2: Partner network model

+ Everything coalition model cannot do

- Require high bargaining power (banks,

insurances)

How to trap your customers

aka Customer Lock-in and Switching Cost

Common traps•Behavioral lock-in/ learning curve trap

• Data trap: Spotify playlists, Android/ iOS exclusive apps

•Switching costs/Exit trap: Early termination fee (AT&T, Verizon…)

Common traps• Network effect trap: Facebook

• Industry standards trap: HTML5, Facebook Ads

•Base products & consumable trap: Nespresso, Gillette…

Common traps• Network effect trap: Facebook

• Industry standards trap: HTML5, Facebook Ads

•Base products & consumable trap: Nespresso, Gillette…

1. Read full at bit.ly/Tua16

2. Happy shopping at Tiki.vn (I get 44VND for every 1,000,000VND you spend on Tiki.vn)

3. WAKE UP, his talk is finally over!!!

Now what?