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Just what is customer loyalty? And how are: Monetization , Socialization , Gamification and Disintermediation changing loyalty forever?. Howard Schneider Metzner l Schneider Associates. Loyalty. F aithfulness or a devotion to a person, country, group, or cause. C ustomer loyalty.
And how are:
Monetization, Socialization, Gamification and Disintermediation
changing loyalty forever?
Metzner lSchneider Associates
Faithfulness or a devotion to a person, country, group, or cause
Measurably incremental profit driven by customer engagement, enabled by an understanding of individual customer needs, interests and behavior
What consumers say
What CMOs say
1990s – early 2000s
1st generation automated programs:
2nd generation automated programs:
Retail and card programs
Online programs and beyond:
Reward charts, status levels, transaction-based, limited channels
Multi-channel, customer choice, experiential, real time
Engage / update profile
What do I get?
Free or upgraded product
Measured by tracking behavior
Share of wallet
the elimination of an intermediary in a transaction between two parties
Loyalty programs were invented to reward marketers’ best customers.
Loyalty programs have both driven, and been driven by, disintermediation—and it is a trend that continues to accelerate.
The history of loyalty programs is the story of disintermediation
Next gen travel
Today, some of the fastest growing categories for loyalty programs are those with indirect distribution models
Media companies, studios, manufacturers, CPG companies are turning to loyalty and engagement programs to create one-to-one customer relationships for the first time.
WB Insider Rewards looks one way to action movie fanboys
…and very different to classic movie afficianados
In a business plan….
In a loyalty program….
“How do we make money from this
“How do we reward customers according to their value?”
Early loyalty programs – and many still today – use proxies for value:
The first major airline program to be based directly on customer spend is Virgin America’s Elevate – a program that has changed the way frequent flier programs work.
Elevate is a revenue-managed program
that delivers better economics to the
airline, more control and a better
experience for the guest.
When was the last time you tried to redeem miles on a legacy air carrier?
As easy as “supply and demand”
Elevate is the first revenue-managed program of its kind that provides choice, value, and a dynamic approach to enhance ROI.
15 Days Advance
14 Days Advance
Look for more and more companies to reward behavior based on better understanding of individual customers’ monetary value.
Eventually, each finds its optimal role in an ever-evolving mix of media, strategies and tactics.
All enabled by Facebook and Twitter
A CPG brand can begin building direct relationships and fostering loyalty.
Social and mobile media are not only a necessary component of effective loyalty strategies – they are becoming the leading channel in many programs.
There is an increasing need, driven by both
marketplace psychographics and program economics,
to reward non-transactional behavior
…and you may ask yourself:
“You said programs should be based on revenue.
Now you say programs should reward non-transactional behavior. WTF?”
…but there are many situations where gamification
has been well-received and is brand-appropriate.
Even conservative, established brands are adding gaming elements to their customer relationships.
Metzner |Schneider Associates