Building Customer Loyalty A tale in 7 steps

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

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The Shape Shifter ‡ Lawrence of Arabia didn¶t always ride a camel! ‡ Your customers will constantly surprise you ‡ Customer Knowledge is competitive advantage Copyright © 2007 Cartesian Consulting Copyright © 2007 Cartesian Consulting.1. www.cartesianconsulting.com 2 .

market basket. Get the experts in.com 3 . Store scoring. lifetime value metrics. exceptions« Notes: ‡ There¶s a load of analytical approaches beyond RFM for retailers wishing to leverage customer knowledge. satisfaction scores. Copyright © 2007 Cartesian Consulting Copyright © 2007 Cartesian Consulting.Leveraging Customer Knowledge Scoring and segmentation. listen to them ± you¶ll find that there¶s ROI in it for you. churn analysis. Not all 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. www.cartesianconsulting. propensity models.

com 4 . www.2. The Painter ‡ Customer flight is inevitable unless you can paint yourself into their picture ‡ Build fences.cartesianconsulting. increase their switching cost ‡ Bottomline: Get your concept right Copyright © 2007 Cartesian Consulting Copyright © 2007 Cartesian Consulting.

communication. helpdesk. software. The success lies in being able to detail out solutions to over 100 decision points that a loyalty program concept needs to cover.Getting the concept right Objectives. earnburn. ROI. but loads of rigor. rules & processes. budgets« Notes ‡ Building a loyalty program concept requires not just sound strategic thinking. benefits. membership. rewards. You cannot be reacting to situations as they happen! 5 Copyright © 2007 Cartesian Consulting Copyright © 2007 Cartesian Consulting. partners. www.com . tiers.cartesianconsulting. metrics.

cartesianconsulting. www.3.com 6 . not just launching a card Copyright © 2007 Cartesian Consulting Copyright © 2007 Cartesian Consulting. 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.

RFID. card readers.com 7 . but the key point is that launching a card does not a loyalty program make. carding« Notes ‡ The loyalty card is the most familiar face of a loyalty program. www.The Loyalty Card Smart card. This space is littered with failed programs that were launched as a card and little else.cartesianconsulting. Mag stripe. bar code card. card variants. cobranded cards. Copyright © 2007 Cartesian Consulting Copyright © 2007 Cartesian Consulting. affinity cards. There are many options here as well.

you might as well hang up your loyalty boots ‡ Technology integration is crucial to success Copyright © 2007 Cartesian Consulting Copyright © 2007 Cartesian Consulting.cartesianconsulting.4.com 8 . www. The Neuromancer ‡ If marketing and IT don¶t shake hands.

Retail POS solutions often offer a basic loyalty module ± these are usually inadequate! The point: Don¶t design your program to fit the software. points banking.com 9 . Copyright © 2007 Cartesian Consulting Copyright © 2007 Cartesian Consulting. analytical CRM software. and should handle all aspects of your program. www. POS integration. marketing database. campaign mgmt« Notes ‡ The software on which your program depends needs to be designed carefully.IT and the Prorgam Loyalty software. CRM software.cartesianconsulting. liability tracking.

com 10 . 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 Copyright © 2007 Cartesian Consulting Copyright © 2007 Cartesian Consulting. www.cartesianconsulting.5.

. you will need to rely on the right partners to come in with specific skills. Direct marketing. CRM consultant. IT team. rewards team. CRM and Loyalty skills need to be nurtured and the team needs top management support. events & promotions team. Software developer.The Loyalty manager Loyalty manager. creative agency. Notes ‡ The team that drives the program internally needs to be composed of skills that are difficult to find in any market. www. Copyright © 2007 Cartesian Consulting Copyright © 2007 Cartesian Consulting.cartesianconsulting.com 11 . loyalty agency. Importantly..

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 Copyright © 2007 Cartesian Consulting Copyright © 2007 Cartesian Consulting.com 12 .cartesianconsulting.6. www.

welcome kit. win-back. but here is where the real pay-off is. churn prevention.cartesianconsulting. www. as compared to a few festival offers and generic promotions. daypart based. coupons. relationship building« Notes ‡ Campaign management practices are better established amongst the banks than retailers.com 13 . Leverage campaign management tools as they will allow you to run hundreds of targeted campaigns which really do pay off. activation. Copyright © 2007 Cartesian Consulting Copyright © 2007 Cartesian Consulting.Campaign Management Campaign calendar. statements. cross sell.

cartesianconsulting. The Timekeeper ‡ Building loyalty takes money. aren¶t you? Copyright © 2007 Cartesian Consulting Copyright © 2007 Cartesian Consulting.com 14 . time and patience ‡ Assume it will take you 2-3 years to truly reap benefits ‡ You¶re in it for the long run. www..

member base. wallet share. referrals Notes ‡ Set expectations right.cartesianconsulting.A matter of patience Points liability. breakage. www. To launch a program AND expect a jump in sales within 6 months is pushing it. activity levels. Copyright © 2007 Cartesian Consulting Copyright © 2007 Cartesian Consulting. ROI. enrolment. setting up the back end. Building up a quality member base (no mass enrolments). incremental revenues. satisfaction scores. campaign management ± these all take time and effort.com 15 . and the metrics to measure success take time to show the returns.

To Summarize 1.com 16 .cartesianconsulting. The team needs top management buy in 6. The pay off comes with patience Copyright © 2007 Cartesian Consulting Copyright © 2007 Cartesian Consulting. You need to get marketing and IT in sync 5. Loyalty programs are more than card magic 4. Customers shape-shift 2. You need to paint yourself into their world with a good concept 3. The pay off is in the data led campaigns 7. www.

com 17 .com Sandeep Mittal (BE .cartesianconsulting. www.cartesianconsulting.com Copyright © 2007 Cartesian Consulting Copyright © 2007 Cartesian Consulting. analytics. With past stints as an entrepreneur heading a technology startup and a music portal. direct marketing and website development.Pune Univ. Sandeep can be reached at smittal@cartesianconsulting. Sandeep has 7 years of varied experience spanning CRM. IIM-Cal): The Business Head of Cartesian. loyalty program management. Sandeep spearheads the Cartesian practice.Cartesian Consulting www.

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