Cartesian IRF Download

7/28/2019 Cartesian IRF Download

1/17

Copyright 2007 Cartesian Consulting 1Copyright 2007 Cartesian Consulting, www.cartesianconsulting.com

Building

Customer Loyalty

A tale in 7 steps


2/17


1. The Shape Shifter

Lawrence of Arabia didnt always ride a camel!

Your customers will constantly surprise you

Customer Knowledge is competitive advantage


3/17


Scoring andsegmentation,

propensity models,

churn analysis,

satisfaction scores,

lifetime value

metrics,

Store scoring,market basket,

exceptions

Leveraging Customer Knowledge

Notes: Theres a load of

analytical approaches

beyond RFM for retailers

wishing to leverage

customer knowledge. Notall of these appear to be

easy to adopt and

marketers shun analytics

more out of a lack of

understanding of what it

can do for them. Get the

experts in, listen to them

youll find that theres

ROI in it for you.


4/17


2. The Painter

Customer flight is inevitable unless you can paintyourself into their picture

Build fences, increase their switching cost

Bottomline: Get your concept right


5/17


Objectives,metrics, software,

membership,

tiers, rules &

processes, earn-

burn, rewards,

benefits,

communication,helpdesk,

partners, ROI,

budgets

Getting the concept right

Notes Building a loyalty

program concept

requires not just sound

strategic thinking, but

loads of rigor. Thesuccess lies in being

able to detail out

solutions to over 100

decision points that a

loyalty program conceptneeds to cover. You

cannot be reacting to

situations as they

happen!


6/17


3. The Card Magician

Its more than a card trick Loyalty programs are a proven way to capture

customer data and prevent customer flight

Its about building relationships and increasing LTV,not just launching a card


7/17Copyright 2007 Cartesian Consulting 7Copyright 2007 Cartesian Consulting, www.cartesianconsulting.com

Smart card,RFID, Mag

stripe, bar code

card, affinitycards, card

variants, co-

branded cards,card readers,

carding

The Loyalty Card

Notes The loyalty card is the

most familiar face of a

loyalty program. There

are many options here as

well, but the key point isthat launching a card

does not a loyalty

program make. This

space is littered with

failed programs that werelaunched as a card and

little else.



4. The Neuromancer

If marketing and IT dont shake hands, you

might as well hang up your loyalty boots

Technology integration is crucial to success



Loyalty software,CRM software,

analytical CRM

software,

marketing

database, POS

integration,

liability tracking,points banking,

campaign

mgmt

IT and the Prorgam

Notes The software on which

your program depends

needs to be designed

carefully, and should

handle all aspects ofyour program. Retail

POS solutions often offer

a basic loyalty module

these are usually

inadequate! The point:

Dont design your

program to fit the

software.



5. The Band

You need superheroes skilled in marketing,

technology, and analytics

It takes teams that are nurtured and last

It takes patience and top management buy in



Loyalty manager,loyalty agency,

CRM

consultant, IT

team, Software

developer,

events &

promotionsteam, rewards

team, creative

agency...

The Loyalty manager

Notes The team that drives the

program internally needs

to be composed of skills

that are difficult to find in

any market. Directmarketing, CRM and

Loyalty skills need to be

nurtured and the team

needs top management

support. Importantly, you

will need to rely on the

right partners to come in

with specific skills.



6. The Campaigner

Loyalty programs throw up a wealth of data drivencampaigns

Good campaign management allows you to handlehundreds of segments and communications

simultaneously



Campaigncalendar,

welcome kit,

statements,

coupons, day-

part based, cross

sell, activation,

churn prevention,win-back,

relationship

building

Campaign Management

Notes Campaign management

practices are better

established amongst the

banks than retailers, but

here is where the real

pay-off is. Leverage

campaign management

tools as they will allow

you to run hundreds of

targeted campaigns

which really do pay off,as compared to a few

festival offers and

generic promotions.



7. The Timekeeper

Building loyalty takes money, time and patience

Assume it will take you 2-3 years to truly reap

benefits

Youre in it for the long run, arent you?



Points liability,breakage, ROI,

enrolment,

member base,

activity levels,

satisfaction

scores,

incrementalrevenues, wallet

share, referrals

A matter of patience

Notes Set expectations right.

To launch a program

AND expect a jump in

sales within 6 months is

pushing it. Building up aquality member base (no

mass enrolments),

setting up the back end,

campaign management

these all take time and

effort, and the metrics to

measure success take

time to show the returns.



To Summarize

1. Customers shape-shift

2. You need to paint yourself into their world

with a good concept

3. Loyalty programs are more than card magic4. You need to get marketing and IT in sync

5. The team needs top management buy in

6. The pay off is in the data led campaigns

7. The pay off comes with patience


17/17Copyright 2007 Cartesian Consulting 17Copyright 2007 Cartesian Consulting www cartesianconsulting com

Cartesian Consulting

www.cartesianconsulting.com

Sandeep Mittal (BE - Pune Univ, IIM-Cal):

The Business Head of Cartesian, Sandeep has 7 years ofvaried experience spanning CRM, analytics, loyalty program

management, direct marketing and website development.

With past stints as an entrepreneur heading a technologystartup and a music portal, Sandeep spearheads the

Cartesian practice.

Sandeep can be reached at [email protected]
http://www.cartesianconsulting.com/mailto:[email protected]:[email protected]://www.cartesianconsulting.com/

Documents

Cartesian IRF Download