Building Customer Loyalty 1265

Building
Customer Loyalty
A tale in 7 steps
Copyright © 2007Copyright © 2007 Cartesian

Cartesian Consulting, Consulting
www.cartesianconsulting.com 1
1. The Shape Shifter
• Lawrence of Arabia didn’t always ride a camel!

• Your customers will constantly surprise you
• Customer Knowledge is competitive advantage

Leveraging Customer Knowledge
Scoring and Notes:

segmentation, • There’s a load of
analytical approaches
propensity models, beyond RFM for retailers
wishing to leverage
churn analysis, customer knowledge.
satisfaction scores, Not all of these appear to
be easy to adopt and
lifetime value marketers shun analytics
metrics, more out of a lack of
understanding of what it
Store scoring, can do for them. Get the
experts in, listen to them
market basket, – you’ll find that there’s
ROI in it for you.
exceptions…
2. The Painter
• Customer flight is inevitable unless you can paint

yourself into their picture
• Build fences, increase their switching cost
• Bottomline: Get your concept right
Getting the concept right
Objectives, Notes
metrics, software, • Building a loyalty
program concept
membership, requires not just sound
tiers, rules & strategic thinking, but
loads of rigor. The
processes, earn- success lies in being
able to detail out
burn, rewards, solutions to over 100
benefits, decision points that a
loyalty program concept
communication, needs to cover. You
helpdesk, cannot be reacting to
situations as they
partners, ROI, happen!
budgets…
3. The Card Magician
• It’s more than a card trick

• Loyalty programs are a proven way to capture
customer data and prevent customer flight
• It’s about building relationships and increasing LTV,
not just launching a card
The Loyalty Card
Smart card, Notes
RFID, Mag • The loyalty card is the

most familiar face of a
stripe, bar code loyalty program. There
are many options here
card, affinity as well, but the key point
is that launching a card
cards, card does not a loyalty
program make. This
variants, co- space is littered with
branded cards, failed programs that
were launched as a card
card readers, and little else.
carding…
4. The Neuromancer
• If marketing and IT don’t shake hands, you

might as well hang up your loyalty boots
• Technology integration is crucial to success
IT and the Prorgam
Loyalty software, Notes
CRM software, • The software on which
your program depends
analytical CRM needs to be designed
software, carefully, and should
handle all aspects of
marketing your program. Retail
POS solutions often offer
database, POS a basic loyalty module –
integration, these are usually
inadequate! The point:
liability tracking, Don’t design your
points banking, program to fit the
software.
campaign
mgmt…
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

The Loyalty manager
Loyalty Notes
manager, loyalty • The team that drives the
program internally needs
agency, CRM to be composed of skills
consultant, IT that are difficult to find in
any market. Direct
team, Software marketing, CRM and
Loyalty skills need to be
developer, nurtured and the team
events & needs top management
support. Importantly, you
promotions will need to rely on the
team, rewards right partners to come in
with specific skills.
team, creative
agency...
6. The Campaigner
• Loyalty programs throw up a wealth of data driven

campaigns
• Good campaign management allows you to handle
hundreds of segments and communications
simultaneously
Campaign Management
Campaign Notes
calendar, • Campaign management
practices are better
welcome kit, established amongst the
banks than retailers, but
statements, here is where the real
coupons, day- pay-off is. Leverage
campaign management
part based, cross tools as they will allow
sell, activation, you to run hundreds of
targeted campaigns
churn prevention, which really do pay off,
as compared to a few
win-back, festival offers and
relationship generic promotions.
building…
7. The Timekeeper
• Building loyalty takes money, time and patience

• Assume it will take you 2-3 years to truly reap
benefits
• You’re in it for the long run, aren’t you?
A matter of patience
Points liability, Notes
breakage, ROI, • Set expectations right.
To launch a program
enrolment, AND expect a jump in
member base, sales within 6 months is
pushing it. Building up a
activity levels, quality member base (no
mass enrolments),
satisfaction setting up the back end,
scores, campaign management
– these all take time and
incremental effort, and the metrics to
revenues, wallet measure success take
time to show the returns.
share, referrals
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 magic
4. 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

Cartesian Consulting
www.cartesianconsulting.com
Sandeep Mittal (BE - Pune Univ, IIM-Cal):

The Business Head of Cartesian, Sandeep has 7 years of
varied experience spanning CRM, analytics, loyalty program
management, direct marketing and website development.
With past stints as an entrepreneur heading a technology
startup and a music portal, Sandeep spearheads the
Cartesian practice.
Sandeep can be reached at smittal@cartesianconsulting.com


Building Customer Loyalty 1265

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Building Customer Loyalty 1265

Uploaded by

Copyright:

Available Formats

Building

Copyright © 2007Copyright © 2007 Cartesian

• Lawrence of Arabia didn’t always ride a camel!

Copyright © 2007Copyright © 2007 Cartesian

Scoring and Notes:

• Customer flight is inevitable unless you can paint

• It’s more than a card trick

RFID, Mag • The loyalty card is the

• If marketing and IT don’t shake hands, you

• You need superheroes skilled in marketing, technology, and analytics

Copyright © 2007Copyright © 2007 Cartesian

• Loyalty programs throw up a wealth of data driven

• Building loyalty takes money, time and patience

Copyright © 2007Copyright © 2007 Cartesian

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

Copyright © 2007Copyright © 2007 Cartesian

You might also like