slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
“American business has developed an insane imbalance between obsessive customer acquisition and negligent customer reten PowerPoint Presentation
Download Presentation
“American business has developed an insane imbalance between obsessive customer acquisition and negligent customer reten

Loading in 2 Seconds...

play fullscreen
1 / 11

“American business has developed an insane imbalance between obsessive customer acquisition and negligent customer reten - PowerPoint PPT Presentation


  • 307 Views
  • Uploaded on

“American business has developed an insane imbalance between obsessive customer acquisition and negligent customer retention”. Basic objectives for Loyalty programs. Retain best, most profitable customers Make good customers better Acquire customers with potential to become best customers

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about '“American business has developed an insane imbalance between obsessive customer acquisition and negligent customer reten' - arleen


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

“American business hasdeveloped an insaneimbalance between obsessivecustomer acquisition andnegligent customer retention”

basic objectives for loyalty programs
Basic objectives for Loyalty programs
  • Retain best, most profitable customers
  • Make good customers better
  • Acquire customers with potential to become best customers
  • Reconnect lapsed users with the brand
  • Revitalize the brand’s relationship with its core franchise
slide3

Appropriate question is not will a loyalty program attract new customers or will it increase our retention rates. But will it grow the profitability of our customers

principles of loyalty marketing
Principles of Loyalty Marketing
  • Relevance is the key to Loyalty Marketing
    • The magnitude of the reward is less important that the perceived value of the reward
      • Benefits - Intermittent scheduling of rewards (“surprises”) can be more effective than regular scheduling
      • Special treatment
      • Recognition
slide5
Loyalty Marketing reduces the consumer’s decision-making complexity
  • Loyalty Marketing reinforces the rightness or wrongness of the consumer’s choice
  • Loyalists represent an incremental sales force
  • Loyalty Marketing is information-dependent
what is loyalty
What is Loyalty?

The consumer is loyal to you is s/he frequently buys your

product

Desired Behaviour

Loyal

Behaviour

Low

High

the consumer is not necessarily desirable
The consumer is not necessarily desirable...

Desired Behaviour

Loyal

Behaviour

Low

High

  • If you have had to subsidize their purchases
  • If s/he buys your product because of inertia or absence of an alternative
commitment is an emotional bonding
Commitment is an emotional bonding

The actively

loyal customer

is the only (long

term) profitable

customer

Potentially

Loyal

Behaviour

Actively

Loyal

Behaviour

High

Commitment

Passively

Loyal

Behaviour

Low

Low

High

Desired Behaviour

extend the relationship from product to brand
Extend the relationship from Product to Brand

High

Commitment

Low

Depth of Involvement

reflects moving from a

narrow relationship with

an individual product to

broad usage of the

full range of

products

marketed

under the brand

Low

High

Desired Behaviour

Product

Depth of Involvement

Brand

slide10

High

Actively Loyal

to the Product

Commitment

Low

Low

High

Product

Desired Behaviour

Depth of Involvement

Actively Loyal

to the Brand

Brand

slide11
AMEX

An index of behaviours

that reflect a CM’s

attachment to AMEX

- Tenure of membership

-Total number of trans.

per month

- Months active

- Total number of services

currently active

- Share of plastic spending

- Survey responding and

responses

High

Commitment

Total $ revenue from all AMEX

products and services

- Total $ spending across all AMEX cards

- Total $ annual card fees

- Total revolving balances on Optima

Low

Low

High

Product

Desired Behaviour

Depth of Involvement

An index of the number of points

of connection with AMEX

- Total number of types of cards held

- Total number of basic cards

- Total number of services currently enrolled in

Brand