1 INFLECTION POINTS SEIZING THE MOMENTS IN CUSTOMER LOYALTY RETAIL BRIEF Cindy Faust, Vice President, Product Management Paul Sage, Product Management Director, Loyalty Management Systems
2 02 / Inflection Points REMOTE EMPOWERING LOYALTY CONTROL POWER + EASE = CONTROL Our loyalty toolkit makes it easy to control powerful loyalty programs when and how you want to. That unique combination of power and ease gives you improved control over the customer experience. We can help you. Visit us at aimia.com
3 Inflection Points / 1 INTRODUCTION The term inflection point has multiple definitions. In differential calculus, an inflection point is a point on a curve at which the concavity changes from positive curvature to negative curvature, or vice versa. In political science, an inflection point is a moment in history that dramatically alters a geopolitical situation, for better or worse. In business, Intel co-founder Andy Grove has described a strategic inflection point as an event that changes the way we think and act. Each of these definitions describes a moment at which our fortunes change and in many cases, we can t recognize the moment until after it s passed. So while marketing utopia may yet lie over the horizon, our vision of this future remains firmly fixed: Reward and recognize best customers throughout the purchase cycle. When it comes to customer loyalty, inflection points are no less important. Every customer interaction from her first encounter with your brand, through her first purchase, at each touch point she encounters in your loyalty program, and into each post-purchase service encounter can make or break her relationship with your brand. In today s recovering global economy, recognizing and positively influencing these loyalty moments of truth has become our singular challenge. Indeed, this challenge has led customer-facing businesses to reinvest in and refocus on the customer experience. Consulting firm Temkin Group, for example, found that a modest improvement in the customer experience by a USD $1 billion company can generate between USD $141 million and USD $382 million over three years. Companies such as U.S.-based Delta Air Lines are paying heed to this advice, investing more than USD $3 billion in airport facilities, global products, services, and technologies that enhance the customer experience in the air and on the ground. The business press is also full of stories heralding the rise of Big Data as a business imperative. But success requires more than a blanket investment in data. The most important data are not big, but rather core customer data that data the closest to, and the most predictive of, relationship value. Historically, traditional transaction-based loyalty programs have served as a rich source of behavioural data. Loyalty analytics translate that data into action, and customers respond with increased spend, tenure, and advocacy. But in today s multichannel, message-saturated, always-on marketplace, a one-dimensional loyalty program is no longer enough. In traditional programs, relationship-building efforts happen only after the purchase and can t leverage data and insight from preor post-purchase interactions. As we revealed in our 2011 Born This Way series of white papers, Millennial consumers around the globe are massively influenced by social and mobile channels, crowd-sourced recommendations, and demand instant gratification from brand interactions. Building loyalty with Generation Y consumers requires a holistic approach, one that connects data dots between channels and touch points to provide a rich flow of customer insight into the business. The problem is that no one has yet assembled a complete view of customer relationships. Interaction data are often unstructured or locked in silos inside the business. Starbucks, for example, collects rich social media data, and funnels a quarter of its transactions through its My Starbucks Rewards TM loyalty program. But even this retail loyalty leader is still searching for ways to unlock the power of its data. We haven t figured out what exactly to do with it yet, said Joe LaCugna, Director of Analytics and Business Intelligence at Starbucks, about the company s customer data. So while marketing utopia may yet lie over the horizon, our vision of this future remains firmly fixed: Reward and recognize best customers throughout the purchase cycle. In this future, we can build loyalty at every stage: When consumers check in at your store, when they make a purchase, when they share the purchase on Facebook, or even when they upload post-purchase usage data via an interactive app. We may not be there yet, but today s loyalty platforms and solutions hold the potential to turn this data into the marketing fuel that powers sustainable, reciprocal, and profitable customer relationships. To take the first step on this path, you ll need to identify the most important inflection points along your customers journeys from curious newcomers to brand loyalists. In this Retail Brief, we identify the 10 most important loyalty moments of truth and offer a few guidelines for getting them right.
4 2 / Inflection Points I: BEFORE SHE WALKS IN THE DOOR According to McKinsey & Company Director David Court, consumers encounter two-thirds of brand touch points during the active-evaluation phase when they seek out online reviews and peer recommendations, when they re browsing in the store, or when they encounter brand offers and messages. A fair amount of relationship-building work, therefore, happens well before your customers have made a conscious decision to purchase. These early encounters collectively comprise your first loyalty inflection point. Because these pre-purchase touch points have become so important, traditional loyalty programs that don t provide insight into evaluation-stage behaviour leave marketers at a decided disadvantage. The good news: Many retailers already have a fair amount of evaluation-stage data at their disposal. But how do you know which data hold the most insight? Your challenge is to understand which data points will give you a head start in building loyalty before your customer walks in the door. She may have liked your Facebook page, or contacted your call center but if the data from these channels lie stored in disparate silos within your organization, then you re missing key puzzle pieces that can help you assemble a complete picture of customer potential. Here are two first steps to leverage that data to build loyalty: > > Break down the silos. Virtual retailers such as Amazon have been linking evaluation-stage data points to customer purchase data for years. Thanks to web analytics, online retailers can link data from web searches, site page views, and abandoned shopping carts to serve up relevant offers and s to consumers, their response to which signals their intent to purchase. Fortunately, next-generation loyalty software platforms now give multichannel retailers the same opportunity to break down the data silos. > > Leverage predictive analytics. By looking at the historical behaviour of current best customers first point of contact, pages viewed, Facebook posts liked, offers clicked on, etc. you can become adept at understanding which real-time behaviours are most predictive of future relationship value. Predictive models fine-tuned to your business can now identify loyal customers sometimes before they even know they re loyal. II: AT THE FIRST SIGN OF TROUBLE Every fledgling relationship hits a few early snags. Time-starved customers are distracted in-store by a rival offer received via mobile device. An early customer service interaction goes awry. Retail showroomers find a lower price online and walk out of your store. By leveraging interaction data, you can identify and act on these inflection points with relationship-saving tactics. A recent report from consulting firm Accenture highlights the challenge. The report claims that companies are losing loyal customers at an alarming rate because of poor customer service and rewards. Clearly employee engagement matters more than ever before. Nearly 85 percent of surveyed customers feel companies could do more to retain their loyalty. Sixty-nine percent would have stayed loyal if the company had resolved a customer service problem upon their first contact, while 55 percent would have remained loyal had the company offered them preferential treatment and rewards. An Aimia retail research study conducted in Canada in early 2013 revealed that certain factors can play more of an influencing role than others in driving successive switching behaviour. The top three factors driving switching behaviour were price, product quality, and location. These top factors were consistent for individuals who switched main retailer(s) in a given category and those individuals who remained loyal to their main retailer. However, the study did highlight that for individuals showing a propensity to switch their main retail store multiple times, customer experience factors, like staff quality and store location, begin to hold similar importance in driving these high switchers to shop elsewhere. How can you leverage data and insight to smooth out these rough patches? Here s how: > > Leverage data to improve service. Through loyalty analytics, you can identify current and potential best customers. By funnelling this insight to your frontline customer service channels, you can flag these best customers for preferential treatment, more liberal return policies, and recognition. > > Embrace in-store mobile activity. Combat showrooming by embracing showroomers. Techniques such as locationbased offers, geo-fencing, and smartphone apps allow you to connect in real time when a customer is in the aisle contemplating a purchase and allows them to pull up offers for themselves. Retailers such as Kohl s, Target, Debenhams, John Lewis, and Gap have installed free Wi-Fi in their stores. At Target, customers can now access the chain s mobile app to redeem coupons and scan QR codes throughout its stores.
5 Inflection Points / 3 SOCIAL Creating Create social social currency, not just a points currency REAL-TIME Shortening time time between actions and and reactions MOBILE Being Be with with the the customer, customer, wherever wherever and and whenever whenever CREATING CREATE THE RIGHT CUSTOMER EXPERIENCE Technology represents represents the floor of your the foundation marketing of potential, your rather marketing than the potential ceiling ACHIEVEMENT Deconstruct individual behaviours to provide individual recognition INTERACTION CENTRICITY Recognize and respond to every interactions, interaction, not just not transactions just the transaction SCALE Allowing Build for loyalty breadth and solutions depth across that every grow customer with your customer touch point base
6 4 / Inflection Points III: DURING A LIFE CHANGE Retail analytics have become so sophisticated that retailers can often anticipate major events in their customers lives a pregnancy, a marriage, the purchase of a new home with uncanny precision. Sometimes we even know more about our customers than they might want us to. As marketers, our task is to wield these tools to build relationships with the building blocks of trust, commitment, and reciprocity. > > Aimia s Canadian retail research evaluated a cross-section of life events that were either within individuals control to initiate (i.e. home renovation, exercise/diet program, etc.) or outside of the individual s control (i.e. death, injury, etc.). Overall, nearly three out of every five life events (59%) were found to be within the control of the individual to initiate the experience. Those events that precipitated a higher likelihood to switch retailers were most often within the consumers control. Here are a few tips to influence these life events: > > Counter-program against the offer blitz. If you re not ready to invest heavily in new data sources, you can always take advantage of the data you already have. A DIY retailer, for example, may have a pretty good handle on which of its customers have purchased a new home. But rather than contribute to the blizzard of offers with which new homeowners are inundated, why not send an offer for gardening supplies the following spring when many new homeowners invest in landscaping? > > Help them navigate the journey. Customers who do volunteer life-change information derive the most value when you use these data to help them navigate specific stages of the journey. The Pampers Gifts to Grow reward program, for example, provides multiple points of engagement for expectant and new mothers who join the program. Through data analysis, P&G has identified key inflection points within the motherhood journey where the company can help a new mother with information, education, and offers that are about more than diapers and wipes she receives information about making the right decisions for her family. These examples are simple, yet powerful, loyalty-building tools that help marketers build relationships based on mutual expectations of value. By demonstrating commitment to the customer journey, you can build brand loyalty that lasts well beyond the customer s initial entry into a new life stage. IV: WHEN SHE JOINS YOUR LOYALTY PROGRAM The modern loyalty program is arguably the most effective means to build relationships with loyal customers through the exchange of value for information in an environment of permission and trust. When you invite a customer to join your loyalty program, you must execute this inflection point flawlessly if the experience is cumbersome, or if you fail to deliver on promised value, then the relationship might take a permanent turn for the worse. Loyalty programs typically fail when the operator assumes that the loyalty journey ends when the customer joins, and that offering a basic point-per-dollar or flat discount reward, with no further effort to build value and relevance into the program, is sufficient to maintain loyalty. Avoid dropping the ball with this inflection point by considering the following tips: > > Make joining seamless. Jimmy Buffett s Margaritaville Casino & Restaurant in Biloxi, Mississippi, for example, equips employees with iphones and ipod Touches so they can sign up new guests for the Players Club reward program right on the casino floor, instead of having customers wait in line at a central program desk. This tactic allows employees to interact with customers and gives customers more time to spend on the gaming floor. Guests can also start using their cards immediately, which translates into more immediate customer data flowing into the business. > > Demonstrate immediate value. Aimia s research into the Millennial generation reveals that Generation Y holds high expectations for instant gratification from reward programs. That expectation doesn t mean you have to fund expensive rewards for new members. But it does mean your program will need to incorporate engagement tactics such as gamification and social media channels. It also means you ll need to focus on that most underserved element of program value offer relevance. By demonstrating relevance early in the program, you can satisfy Millennial value expectations without breaking the bank.
7 Inflection Points / 5 MILLENNIAL REWARDS The key difference between Millennial loyalty program participation and participation by older consumers: Millennials expect immediate gratification and transparent value from your program. These expectations will require marketers to reinvent programs in traditional sectors. Data from Aimia s U.S. Millennial Survey, PLAYING THE GAME: Millennials play the loyalty game to win Q: Are you a member of a loyalty program? (yes) Millennials Non-Millennials 77% 82% Q: How long should it take to earn a reward? 43% 41% < month < 3 months < 6 months < 1 year Millennials Non-Millennials So they expect programs to be free, fast, and relevant Q: Top reason to join a reward program: Millennials Non-Millennials It s free to join: Rewards can be earned quickly: Rewards are relevant to my life: 66% 55% 44% 36% It s easy to join and participate in: Exciting rewards such as trips, etc.: It s a company I feel loyal to: 40% 25% 37% 20% 42% 50% 19% 18% It s connected to a social cause: 9% 11% Q: Top program sectors: Millennials Non-Millennials 56% 69% 50% 44% 45% 55% Groceries Retail Credit/Debit 25% 45% 22% 20% 21% 23% Travel Online Shopping Restaurant admit one 26% 18% Entertainment And they re open to more non-traditional rewards. Q: Preferred reward categories: Millennials Non-Millennials $ $ Cash Back 83% 85% Gift Cards 80% 80% 47% OFF Discount Coupons 35% 42% 24% 15% admit one 22% 18% 19% 35% Home Electronics Entertainment Travel 12% 6% 10% 4% 9% 5% Fashion Music VIP Access $ $ 6% 8% 1% 1% Charity Mobile Downloads
8 6 / Inflection Points V: AT THE FIRST SIGN OF LIFE Experienced loyalty marketers know that early signs of program engagement can be highly predictive of future customer value. Conversely, poor communication or lack of reinforcement of early, positive signs of interest can derail a promising relationship. Ensure the formation of long-term, profitable relationships with your best customers by acting on insight from these early loyalty program interactions to reinforce desired behaviour and enhance the customer experience. Sometimes, the simple things can be the most effective say, when a member earns program currency for the first time, and you send an to thank and congratulate her right away, in the moment. Or perhaps you reinforce the value of connecting her Facebook account to the program with a surprise-and-delight benefit. By rewarding these early signs of life with positive, responsive reinforcement, you can lay the foundation for enduring relationships. To get started, consider these best practices: > > Supplement with soft benefits. Program disengagement often occurs when members don t feel they re earning hard currency benefits quickly enough to make a difference. Engage these customers with early-stage soft benefits that reinforce program value for high-potential customers who have yet to shift spend. For instance, U.S.-based hotelier Lexington by Vantage Hospitality Group, rewards leisure travelers in its points-based reward program with such immediate benefits as free upgrades, late check-out privileges, and discount car rentals. > > Personalize as quickly as possible. Savvy loyalty marketers now leverage loyalty data as early in the relationship as they can to personalize the customer experience. Transactional data is useful for more than just rewarding points you can leverage it to provide personalized offers, enable preferences, and even derive early segmentation benefits. U.S.-based luxury hotel chain Kimpton Hotels & Resorts, for example, personalizes the experience of its loyalty program members when they hit specific eligibility milestones: Threshold-reaching members can request their favourite snacks, receive upgrades to preferred room types, and earn surprise gifts. UAE-based airline Emirates captures passenger preferences like favourite beverages and uses this information to ensure that on future journeys, business class seats are decked out with preferred drinks. VI: DURING PROGRAM REDEMPTIONS Reward redemption is the heart of the customer loyalty experience. It s the inflection point at which your program proves its value, and loyalty marketers know that multiple redemptions are a demonstrable indicator of increased customer value. While short-term financial concerns might lead the unwise to discourage redemptions in favour of increasing program breakage, we must resist the urge in fact, Aimia research demonstrates that customers who redeem at least three times maintain higher spending and greater lifetime customer value. And the customer insight you gain from redemption data drives even greater value throughout the enterprise. The trick today is to encourage redemption without breaking the bank. To receive the full benefit of increased loyalty through the redemption experience, incorporate these best practices: > > Deliver a flawless redemption experience. One certain way to damage relationship value is to fumble reward fulfilment particularly during a member s first redemption experience, when her expectations are high. From the software that deducts the points from her account, to the that confirms her order has shipped, to the delivery method you choose to fulfil the order, every step of the redemption process must proceed without a hitch. Should the process break down at any point on the fulfilment chain, apologize immediately and fix the problem. Each successful redemption reinforces relationship value and increases loyalty. > > Add value through partnerships. A sound partner strategy can enhance redemption value on both sides of the program experience. On the earn side, partnerships increase earn velocity while helping you control costs. My Starbucks Rewards, for example, has expanded earning opportunities to grocery store purchases of Starbucks products as well as purchases at Starbucksowned Teavana stores a change expected to double program membership. On the burn side, coalition loyalty programs like Aeroplan in Canada and Nectar in the United Kingdom (both programs operated by Aimia) offer a variety of redemption partnerships that expand member opportunities and increase program value.
9 Inflection Points / 7 78% of U.S. Millennials are more likely to choose a brand that offers a loyalty program Aimia 2011 Millennial Study 74% of UK Millennials are more likely to choose a brand that offers a loyalty program Aimia 2011 Millennial Study Share shift can increase by 20-25% for brands after implementing a loyalty program Aimia proprietary program data, A loyalty program can improve customer acquisition by 5-10% Aimia proprietary program data, Loyalty programs influence 84% of U.S. members* ACI Worldwide Study, January 2012 *84% of members are likely to choose a retailer over its competitor if they are members of the retailer s loyalty program.
10 8 / Inflection Points VII: DURING MAKE-GOOD OPPORTUNITIES Of failure, Henry David Thoreau once wrote, If we will be quiet and ready enough, we shall find compensation in every disappointment. For every company, failure to deliver a flawless customer experience is inevitable what counts is how we react to that failure, what we do to rectify it for the customer, and what we learn from it. That our flaws are often now broadcast to the world via the bullhorn of social media makes our recovery from failure exponentially more challenging but those same channels also provide opportunity to highlight your strengths. If the flip side of every problem is an opportunity, then you won t want to miss the chance to take advantage of the loyalty-building potential of make-good moments. A recent RightNow Customer Experience Impact Report found that 89 percent of consumers began doing business with a competitor following a poor customer experience, but 92 percent of the same group said they would be willing to return to a company after a negative experience if they got an apology. To turn customer service lemons into loyalty lemonade, consider these best practices: > > Develop a 360-degree customer view. Your challenge in resolving service issues in real time is to connect your customer service, communication, and loyalty touch points on the back end. If one team manages customer complaints, while another team monitors social media, while still another manages loyalty program and CRM data, you end up with a Rashomon-like view of the customer relationship, with no one able to identify or distinguish high-value relationships that require extra care. Tearing down these data silos is the great marketing challenge of our time. > > Use the loyalty program as brand insulation. The reward and recognition tools inherent in your loyalty program provide powerful relationship insulation. If a service issue disgruntles a premium member, a bonus point offer or a surprise-and-delight benefit can quickly assuage bruised feelings. Amsterdam-based KLM Royal Dutch Airlines does a nice job of using surprise-and-delight techniques based on life events learned via social channels to make sure it manages its customers experiences. For new customers, auto-enrolment in your program with an immediate earning bonus can also soothe perceived injuries. VIII: WHEN YOU EXCEED EXPECTATIONS Customers are so well trained by experience to expect the bare minimum in service and attention that even modest efforts to exceed baseline expectations can pay dividends in customer loyalty. Best practice dictates that you provide basic, quality service to all customers and reserve high-touch service opportunities for high-value customers. But how do you recognize best customers when they walk into your store, call in, or complain on your Facebook page? That s where customer data and insight can spell the difference. The ultimate winners in the marathon race for customer loyalty will be those marketers who develop a holistic, analytical view of customer relationships by linking data from loyalty, CRM, web, social, and mobile channels. But if that blessed day has not yet arrived, you can take smaller, immediate steps to improve baseline customer service, as well as provide opportunities to exceed best customer expectations: > > Deploy the right tools. U.S.-based home improvement retailer Lowe s recently outfitted its 1,700+ stores with Wi-Fi and iphones for associates to improve in-store service by, for example, helping customers search for products online and buy them on the spot. Associates can also cross-reference answers to questions posted to the retailer s Facebook and Pinterest pages with links back to the company s website to provide cost estimates and product numbers. As well, UK-based British Airways recently deployed 2,000 ipads for data capture. The airline said the biggest benefit was just having customer information in hand and being able to offer local travel tips and advice to passengers on select long-haul flights. > > Refocus on the customer. Lowe s rival, U.S.-based retailer Home Depot, is famously returning to its roots as a customer-centric enterprise. For instance, the retailer has recently expanded its Customers First initiative to include Power Hours where associates focus on in-aisle customer service during high-traffic times. The retailer is also training associates to analyze customers shopping carts to suggest missing products required to complete a home improvement task.
11 Inflection Points / 9 CONNECTING THE DATA DOTS Modern loyalty systems must allow for the capture of brand interactions throughout the purchase cycle before, during, and after the transaction Reward and recognize customers to encourage them to provide data, link data sources, and identify themselves during transactions Link search data to provide targeted, relevant offers Link social data to reward and recognize brand interactions, likes, and referrals Link location data to encourage time shift, cross-sell, and up-sell Link loyalty program data to connect insight to transactions
12 10 / Inflection Points IX: WHEN YOU ANTICIPATE HER NEEDS Steve Jobs once reportedly said of Apple customers, People don t know what they want until you give it to them. To deliver a flawless customer experience, the brass ring is the ability to use customer data, multichannel communications, and predictive analytics to send a relevant offer or fulfil a customer s need before she s even aware that her need is unfulfiled. With today s modern loyalty technology and analytic platforms, that brass ring is within reach. But if your touch points can t talk to each other, then this promise may go unrealized. Nurturing loyalty requires rewarding and recognizing best customers, anticipating their needs, and guiding them through a relevant, personalized customer journey. But even if your marketing resources and technology are not yet at the level required to deliver real-time offers based on sophisticated predictive models, there are still relatively simple steps you can take to anticipate and fulfil your customers needs. Here are two: > > Help your channels talk to each other. Even with today s web-enabled commerce, call centers are still critical customer touch points. But very often, call center staff can t see what offers the customer has received or responded to which can lead to conflicting or duplicative communications. Providing your call center staff with customer profiles allows them to reinforce existing offers or make the next offer leading to additional sales and a better customer experience. > > Practice surprise and delight. U.S. online retailer Zappos is famous for its surprise-and-delight customer experience efforts, such as upgrading a percentage of first-time purchasers to overnight shipping as a way to reinforce relationship value. Adopt these tactics with high-value customers to create personal, emotional connections. The bonds you create will demonstrate commitment and fuel both trust and reciprocity in your customer relationships. X: WHEN SHE SINGS YOUR PRAISES If there is a holy grail for marketers, it s that moment when a best customer becomes your vocal advocate. Whether she gives you a glowing review on a social network, tweets about a great experience, or forwards a new product offer to her inner circle, her advocacy exponentially increases the value of the relationship. With the right technology, you can identify, reward, and recognize these customer advocates and reap the benefits. Not all best customers are vocal advocates but all vocal advocates are potentially best customers. In fact, in Aimia s Canadian retail research, 39 percent of high switchers liked a brand on Facebook, which is 2.6 times higher than that of consumers loyal to their retailer. As well, they are 3.5 times more likely to tweet about a brand and 2.4 times more likely to comment on Facebook. Creating advocacy requires more than just raising your aggregate Net Promoter Score. It requires the ability to connect the data dots from your social media and web channels to your core purchase data. It also requires the analytical ability to understand which of your advocates are really impacting your bottom line, and the means to reward them accordingly. And finally, it requires seamless, multichannel communications that send the right messages to the right customers through the right channels. Here are a few other ways you can help foster customer advocacy: > > Exploit the network effect. Customer networks become more valuable when you give customers a platform to talk to each other, as well as to you. For example, Walmart flies a handpicked, exclusive club of 20 influential bloggers dubbed the Walmart Moms to its Bentonville, Arkansas headquarters to test new products. The retailer also hosts a blog and YouTube channel especially for them. By providing these platforms for mutual interaction, Walmart makes these customer relationships more valuable both to the retailer, and to the Walmart Moms. > > Give advocates a seat at the table. In 2011, Google held its inaugural Global Top Contributors Summit at its Mountain View, California headquarters. These Top Contributors are not Google employees, but rather Google advocates in this case, unpaid product forum participants. Google rewarded them for their loyalty, sought their feedback, and offered educational resources to help them become better advocates. Toy manufacturer Lego has even turned some fanatical Lego customers into paid employees who evangelize about Lego and help design new product lines.
13 Inflection Points / 11 SEIZING THE MOMENTS These 10 inflection points mark the most critical stages in a customer s journey from newly acquired to brand advocate. By deploying loyalty systems, analytical tools, and best practices, you can ensure deeper relationships, enhanced loyalty, and greater lifetime value. BEFORE SHE WALKS IN THE DOOR Break down the data silos and leverage analytics to identify high-potential customers. AT THE FIRST SIGN OF TROUBLE Use customer data and in-store technology to improve service. DURING A LIFE CHANGE Deliver personalized, relevant offers to help her navigate the journey. WHEN SHE JOINS YOUR LOYALTY PROGRAM Make enrolment seamless and demonstrate immediate program value DURING MAKE-GOOD OPPORTUNITIES Connect your touch points to resolve service issues across channels. 7 DURING PROGRAM REDEMPTIONS Deliver a flawless redemption experience and add value through partnerships. 6 AT THE FIRST SIGN OF LIFE Reward early signs of relationship engagement with positive reinforcement. 5 WHEN YOU EXCEED EXPECTATIONS Deploy the right tools and training to go above and beyond for best customers. WHEN YOU ANTICIPATE HER NEEDS Distribute customer profiles across service channels to fulfil a need before she s even aware that her need is unfulfiled. WHEN SHE SINGS YOUR PRAISES To foster advocates, give best customers a voice and a seat at the table
14 12 / Inflection Points ABOUT THE AUTHORS Cindy Faust, Vice President, Product Management Cindy Faust drives strategy, development, and revenue of new and existing products to help position our clients for success. She is responsible for setting the strategic direction of product development based on client and market needs, and works in close collaboration with our clients and all areas of the Aimia business, both in the U.S. and globally. Prior to her current role, she was VP, Loyalty Technology Services, aligning information technology design and delivery with other Aimia capabilities to create fully integrated customer and business loyalty marketing programs. Before this, she was Senior Director, Technology Services, delivering consumer loyalty technical solutions for clients in the financial services, travel and hospitality, retail, CPG and telecom industries. She joined the company in 2005 with a main focus on business development for new loyalty programs. Prior to joining Aimia, Cindy held various IT leadership positions with Carlson Companies and GE Capital ITS. She started her career at Entex Technical Solutions as a consultant on the American Express account. Cindy is a member of the IT Service Management Forum and is a Menttium alumna. She earned various collegiate degrees including an MBA from the University of Minnesota s Carlson School of Management. In addition, Cindy was a contributing author for the IHRIM Shared Services book, Transforming the Organizational Mindset to Embrace Shared Services. Paul Sage, Product Management Director, Loyalty Management Systems U.S. Paul Sage is responsible for product strategy and positioning of Aimia s Loyalty Platform within the U.S. region. Paul coordinates client collaboration, market analysis, and industry leader feedback to inform the global product development of requirements for ongoing investments in the Loyalty Platform. His responsibilities extend to delivering sales tools, product management processes, content, and positioning for all aspects of the product. Prior to his current role, Paul managed the IT architecture and consulting team in the U.S. region. As part of his responsibilities, he repositioned the team to a product strategy and sales engineering team which secured and brought on board three fully integrated loyalty programs in CPG and retail during 2011/12. Prior to Aimia, Paul was on the board of a UK social enterprise organization supporting NGOs, charities and not-for-profits in their efforts to leverage social media to drive donations and communications. As well, Paul is owner of a UK marketing consultancy firm specializing in securing government digital presences. With two decades of international experience Paul has worked extensively with marketing services and data analytics organizations in the United Kingdom, United States and Asia for clients in oil and gas, financial services, retail, high tech, government, non-profit and CPG verticals. About Aimia Aimia Inc. ( Aimia ) is a global leader in loyalty management. Employing more than 4,000 people in over 20 countries worldwide, Aimia offers clients, partners, and members proven expertise in launching and managing coalition loyalty programs, delivering proprietary loyalty services, creating value through loyalty analytics, and driving innovation in the emerging digital, mobile, and social communications spaces. Aimia owns and operates Aeroplan, Canada s premier coalition loyalty program, Nectar, the United Kingdom s largest coalition loyalty program and Nectar Italia, Italy s first independent loyalty coalition program. In addition, Aimia owns stakes in Air Miles Middle East, Mexico s leading coalition loyalty program, Club Premier, Brazil s Prismah Fidelidade, and i2c, a joint venture with Sainsbury s offering insight and data analytics services in the UK to retailers and suppliers. Aimia also holds a minority position in Cardlytics, a U.S.-based private company operating in transaction-driven marketing for electronic banking. Aimia is listed on the Toronto Stock Exchange (TSX: AIM). Visit us at
15 Inflection Points / 13 SAMPLE OUR BRAIN FOOD. Sample some of our loyalty thought leadership in the Knowledge section at aimia.com. THE FOUR FUTURES: The Digital Loyalty Survey By Martin Hayward, Vice President, Global Digital Strategy To help marketers divine the proper strategy for navigating the digital future, Aimia has conducted a research study designed to understand consumers current attitudes and opinions about data sharing and control, the role of digital media in their lives, and about the nature and frequency of digital marketing communications. We found that marketing success in the digital future will depend upon how well marketers use data to build relationships dependent on two primary variables: the degree of engagement, and the degree of consumer control over their personal information. MOVING PICTURES: The Future of Customer Loyalty in Canada By Kevin O Brien, Chief Commercial Officer, Aeroplan and Michael O Sullivan, President Proprietary Loyalty, Canada While portraits of customer behaviour used to be static, they re now moving targets which scroll into the past like social media news feeds. Loyalty marketing offers the best set of tools available for capturing these moving pictures. THROWING OFF SPARKS REIGNITING RETAIL LOYALTY PROGRAMS RETAIL BRIEF Stephanie Swain, Vice President, Retail THROWING OFF SPARKS : Reigniting Retail Loyalty Programs By Stephanie Swain, Vice President, Retail Retailers attract loyal customers based on the quality of their products, a positive customer experience, and competitive prices. Loyal customers respond by buying more, buying more often, and telling their friends. To reach your relationship potential with your best customers, you must reignite your customer strategy and fan the flames continuously through data-driven marketing, a robust value proposition, and dynamic customer segmentation. It s the best way to keep the sparks flying. THE RISE OF THE SAVVY SHOPPER: The Impact of the Recession on Customer Loyalty By Maria Sealy, Director of Research Services The recession may be over, but its impact still reverberates everywhere. From the corner shop to the high street or shopping mall. Despite the stark headlines, however, the news isn t all bad. Even as the going has gotten tougher, some brands have risen to the challenge and built loyalty around customer experiences, redemption touchpoints and the value exchange.
16 14 / Inflection Points YOUR BUSINESS RESULTS DELIVERED OUR INSIGHT With more than 4,000 talented professionals in 20 countries, we can deliver results for your business using our loyalty insights. We see relationships differently. Visit us at aimia.com.
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FINDING BIG PROFITS IN THE AGE OF BIG DATA UNLOCKING THE ENTERPRISE POTENTIAL OF BEHAVIORAL SEGMENTATION Alex Tavera Senior Loyalty Consulting Manager Behavioral Segmentation / 2 SEGMENTATION HAS EVOLVED
Bricks And Clicks A Look At Today s Retail Marketing Trends A Quick and Easy Guide to Digital Advertising for Local Businesses TABLE OF CONTENTS 3 4 7 11 The New Customer Path to Purchase The Rise of Mobile
Customer Experience Management 10 tips for the successful development and execution of Chris Bland Research Director SPA Future Thinking Introduction, sometimes referred to as Customer Feedback Programmes,
Lead the Retail Revolution. The retail industry is at the center of a dramatic shift in the way consumers shop and interact with their retailers. After hundreds of years of customers going to the store,
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February 2014 Taking the total retail customer experience to the next level Taking the total retail customer experience to the next level The face of retail is changing. While brick-and-mortar stores once
A CHASE PAYMENTECH WHITEPAPER Building customer loyalty in a multi-channel world Creating an optimised approach for e-tailers Table Of Contents Changing shopping habits... 3 The multi-channel journey...
Mobile Apps: What Consumers Really Need and Want A Global Study of Consumers Expectations and Experiences of Mobile Applications The Difference Between a Mobile App and a Mobile Website Before we evaluate
Accenture Business Intelligence for Fashion and Luxury Creating a Differentiated Customer Experience for Long-term Brand Loyalty Fashion is inherently an ever-changing industry. Customer preferences fluctuate
SECTOR SOLUTIONS Celebrus for Telecommunications: Deepening customer intelligence with individual-level digital data p1 Introduction Today s Telecommunications sector is highly dynamic. Firstly the very
Improving the Customer Proposition through Effective Finance and Enterprise Performance Management In the digital world, customers expect an increasingly sophisticated shopping experience. Retailers that
MAXIMISING VALUE FROM DIRECT MARKETING: CUSTOMER ENGAGEMENT DATE: October 2013 Tim Gilmour Chief Marketing Officer aegon.com AEGON DIRECT & AFFINITY MARKETING SERVICES ADAMS (AND ITS SISTER COMPANIES WORLDWIDE)
Customer loyalty is hard to come by: Technology is the answer CARD LINKED MARKETING Gone are the days when a customer would stay with the same bank for 20+ years, taking out mortgages, loans and making
The Connected RetAil Experience Empowering Employees, Reinventing Customer Interactions Retail will change more over the next five years than the last 50 years. Source: Operating Seamlessly: Integrating
HOW CLOSE ARE YOU TO YOUR CUSTOMERS? You know what kind of people your customers are. You likely even know their names, how often they shop with you and what they ve bought recently. But can you say which
Insights from McKinsey s Global iconsumer Research Six Strategies to Win the Mobile Consumer Showdown iconsumer Maps Shifts in Digital Behavior Around the Globe This article is one of a series documenting
Hotel Marketing Automation By Shayne Paddock June 2013 Introduction Hotel Marketing Automation is technology that helps hoteliers reduce costs and optimize their limited resources by introducing automated
Cloud Analytics Where CFOs, CMOs and CIOs Need to Move To IN PARTNERSHIP WITH Analytics and the Speed Advantage Introduction Three recent workplace trends the growth of the mobile revolution, the emergence
THE NEW ERA OF ABOUT THE AUTHOR Paul Rogers is the Head of Customer Experience and CRM within HCL s Applications Division. Based in London, Paul is responsible for leading HCL s CRM consulting and technology
The Modern Traveler: A Look at Customer Engagement in the Travel Industry Executive Summary This report is the latest in our series of SDL original research that looks at how a new empowered consumer is
50 Spa Success Tips to Enhance Every Aspect of Your Customer Experience Reward your customers with loyalty points based on actions like purchases of products or services. Track customers activities and
Winning Hearts and Markets with Mobile Customer Loyalty Programs Strategies and Solutions for Operators, Brands, Agencies, and Media Companies 2 Overview Loyalty programs are a key part of the mobile marketing
Key Consumer Insights for Effective Hotel Marketing Strategy Effective Hotel Marketing Strategy / 2 Introduction RezNext recently conducted a survey among leading hoteliers in India on their digital marketing
Leapfrog customer experience management with omni-channel communications Fast Facts on Present-day TRENDS Today s customers are empowered by the internet, social media and mobile technologies. They reach
Making the Mobile Connection this Holiday Season and All Year Round Updated June 2013 Executive Summary The retail world is already ramping up their marketing efforts for the 2012 holiday shopping season.
The Customer Experience: The Holy Grail of Competitive Advantage. 1 A great customer experience has emerged as the holy grail of competitive advantage. Providing a great customer experience has emerged
Predicting & Preventing Banking Customer Churn by Unlocking Big Data Making Sense of Big Data http://www.ngdata.com Predicting & Preventing Banking Customer Churn by Unlocking Big Data 1 Predicting & Preventing
Since the launch of the iphone in 2005, over one million apps have been launched in the Apple s app-store. While the app market is still growing, new research indicates that only a small portion of apps
LOYALTY PROGRAMS: BUILDING CUSTOMER LOYALTY TO BUILD PROFITS Loyalty is one of the great engines of business success. Frederick F. Reicheld, author of The Loyalty Effect Today s successful businesses recognize
Market Track Perspective TM Holiday Readiness Guide: Strategies to Prepare Omni-channel tactics to maximize impact and results during HSS 2015 Market Track s Holiday Readiness Guide In this issue of Market
RETAIL PLAYBOOK Experience Is Everything 3 Critical Ways to Boost Customer Satisfaction in an Omnichannel World Retail m 8.8% ore than two decades after the first secure online purchase, the bricks-to-clicks
Reinventing retail: What Businesses Need to Know for 2014 Walker Sands 2014 Future of Retail Study Walker Sands 2014 Future of Retail Study examines changing trends and consumer behaviors in retail. Based
Just-in-Time Marketing: Lessons from the Masters Marketers have changed the way they engage consumers, but have their changes taken them all the way back to the factory floor where marketing is produced?
Beaconstac How Retailers can go Omni channel using Beacons 1 Contents Why beacons are the key to omni channel retail 3 What is omni channel and why it is a must have for retailers 3 How retail stores can
Customer Journey Mapping: A Walk In Customers Shoes The Experience Matters To Airline Customers Just As Much As The Destination A customer journey mapping strategy enables airlines to identify the desires
FIS Active Analytics Suite Delivering Segmentation-driven Digital Marketing, Merchant Offers Price Optimization and Risk Management Performance Analysis The FIS Active Analytics Suite helps financial institutions
The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material,
Predicting & Preventing Banking Customer Churn by Unlocking Big Data Customer Churn: A Key Performance Indicator for Banks In 2012, 50% of customers, globally, either changed their banks or were planning
Bricks, Mortar & Mobile Building an Effective In-Store mcommerce Strategy EXECUTIVE SUMMARY: Over the course of the last few decades, retail has seen ecommerce emerge and succeed as a viable sales channel.
Driving shopper engagement through digital technology Third annual study of the impact of digital technology on the retail landscape. June 2015 The habits of many retail shoppers are changing. Some key
IBM Software Business Analytics Social Analytics Social Business Analytics Gaining business value from social media 2 Social Business Analytics Contents 2 Overview 3 Analytics as a competitive advantage
Exceptional Customer Experience AND Credit Risk Management: How to Achieve Both Lynn Brunner Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions,
AIMIA FINANCIAL SERVICES LOYALTY LENS LOYALTY VS. TENURE: A GUIDE FOR FINANCIAL SERVICES PROVIDERS 1 / Aimia Financial Services Loyalty Lens INTRODUCTION ABOUT THE AIMIA GLOBAL LOYALTY LENS The Aimia Financial
RIS News Custom Research Your Last Traditional POS Examining the future of retail POS in a brave new omnichannel world produced by by joe skorupa Your Last Traditional POS Examining the future of retail
Mobile Consumers & You How to use mobile to your advantage Driving value from the mobile consumer In the age of the smartphone, brands and retailers cannot succeed without persuading mobile researchers
Today, we have access to a vast amount of customer data that can be used to power sales and marketing efforts. That may not be the case tomorrow. behind. Currently, regulations for customer data are looser
Mobile Marketing Best Practices TABLE OF CONTENTS Why Mobile Marketing...1 Creating a Solid Foundation...2 Executing Effectively...3 Tackling Advanced Tactics...4 Next Steps...5 About Genesys...5 Why Mobile
CONTACT CENTER 09: Five Steps to a Lean, Customer-Centric Service Organization 2009 RightNow Technologies. All rights reserved. RightNow and RightNow logo are trademarks of RightNow Technologies Inc. All
Helping Homebase build stronger customer relationships How Aimia ensured a seamless transition from a legacy loyalty programme to Nectar By Jan-Pieter Lips, Managing Director, Nectar UK 1 / Building Stronger
G00270685 Agenda Overview for Digital Commerce, 2015 Published: 18 December 2014 Analyst(s): Jennifer Polk Marketing is making a greater impact on, and taking more responsibility for, digital commerce.
Loyalty Promotions What is loyalty? A consumer is loyal to a company (or brand) if he or she frequently purchases products from that company. The consumer develops an emotional bond to that company. An
A new e-book from TeleTech for sales, marketing, and customer care leaders. Connecting the Dots on the Omnichannel Customer Journey Everybody s talking about omnichannel these days. But what is omnichannel
Marketing That Makes Sense: A practical marketing series from Ariad Communications 5 ways to drive in-store sales with email 2 As marketers it feels like we have the same relationship with email as a teenager
Comprehensive Guide to Marketing Like Starbucks 1 Introduction 6 reasons Starbucks Marketing Communications Strategy is so Effective is one of our most popular posts, continuing to be a top performer even
Customer Experience - what s it all about? The Capgemini Consulting guide Page 1 Page 2 Customer Experience is a concept that many people talk about but far fewer understand or know how to address. This
How Advanced Analytics is Helping CPG Manufacturers to Build Direct-to-Shopper Engagement and Drive Sales Shopping behaviors are changing rapidly across the US and the global marketplace. From shifts in
Powering Performance with Customer Intelligence Are you ready to make Customer Intelligence your performance advantage to outpace the competition? Frequently Asked Questions (FAQs) PNT Marketing Services
Mobile 360: Developing Your Comprehensive Digital Strategy FK Funderburke, Director, Digital Merchandising & Strategy Vivek Agrawal, Director, Mobile & Digital Display Group Russell Young, Director, Strategic
White paper Customer Engagement Improving customer relationships How top companies maximize lifetime value through effective customer engagement Page 2 Customer experiences help drive long-term profits.
From Basics to Big Data ADDRESSING THE CHALLENGES OF THE MODERN RETAILER JASON U. HERNANDEZ CLINT CAMPBELL Enhancing the connection between company and customer can turn shopping into a more personal and
Market Brief Market Brief Survey Findings: Mobile Apps for Customer Service Executive Summary The explosion of mobile apps has created a huge demand from smartphone users and given organizations a fresh
A Point of View Driving Airline Revenues and Profitability by Delivering Great Customer Experiences Two New Studies Point to the Direction Airlines are Taking with Their Customer Experience (CX) Initiatives.
FINANCIAL SERVICES Deepening customer engagement with relevant rewards October 2013 Contents Introduction 3 Diverging from the me too rewards 4 Why embrace relevant rewards 5 Five steps to developing relevant
CUSTOMER ENGAGEMENT 2014 Rosetta Consulting s Customer Engagement Survey Part 1: The Marketer s Perspective WELCOME TO THE EMPOWERED AGE Welcome to the first in a series of three white papers on Customer
WHITE PAPER Next Best Action Using SAS Customer Intelligence Clear the Clutter to Offer the Right Action at the Right Time Table of Contents Executive Summary...1 Why Traditional Direct Marketing Is Not
Creating the customer experience INSIGHT. EXECUTION. ADVANTAGE. Customer experience outsourcing that transforms business performance 3 Your customer management future 5 The Webhelp difference 8 Services
Empowering Agents to Employ Digital as a Competitive Weapon 2 Empowering Agents to Employ Digital as a Competitive Weapon For most personal lines insurers, agents bring a hands-on advisory role that can
WHITE PAPER strategies to maximize the effectiveness of your online merchandising and promotions plan Executive summary Now, more than ever, the lines between corporate sites and online stores are blurring
Customer Experience as the Final Retail Frontier: Mitigating Price Factors By Delivering What Consumers Really Want in the In-store and Online Experience By: Mark Marone, PhD Developing the 21st century
Reduce your markdowns 7 ways to maintain your margins by aligning supply and demand On average, On average, Step off the high-volume, low-price treadmill Browse through any online store or shopping mall
Digital Readiness for Customer Experience in the Airline Industry Executive Survey Contents 03 06 Study Background Executive Summary 23 Conclusions Copyright 2016 Accenture All rights reserved. 2 Study
Delivering service differentiation through customer experience CHASE RESPONSE MAY 2010 The marketplace Companies are facing an increasingly competitive landscape where the battle for market share and changing
GAMING/CASINO DATA MARKETING WHITE PAPER NO LUCK NEEDED. How the Right Data Can Improve Casino Marketing Campaigns V12 Group 141 West Front Street Suite 410 Red Bank, NJ 07701 1-866-842-1001 www.v12groupinc.com
NOUS INFOSYSTEMS LEVERAGING INTELLECT CREATING POSITIVE CUSTOMER EXPERIENCE IN BANKING Abstract Understanding the customer experience is the key in today s highly competitive and changing banking industry.
Flight Plans for Success Airline Loyalty Program Case Studies Sandra Diem, Vice President, Evert de Boer, General Manager, 1 / Flight Plans for Success Introduction Aimia s roots in the airline industry
Improve customer experience with your call center 1 Table of Contents Welcome to the Age of the Unloyal Customer Superior Service Is More Difficult Than It Looks Segmented customer touchpoints Who is responsible
Harnessing Big Data to Improve Customer Service By Marty Tibbitts The goal is to apply analytics methods that move beyond customer satisfaction to nurturing customer loyalty by more deeply understanding
CUSTOMER ENGAGEMENT BUILDING PERSONAL CONNECTIONS WITH YOUR CUSTOMERS 1 Customer Engagement CUSTOMER ENGAGEMENT The rise of social networking, mobile technology and e-commerce gave brands and retailers
It s about Customer Experience not Customer Service By Phil Gerbyshak As companies have improved processes and gained greater efficiencies, one key area has suffered: customer experience. Customer experience
White Paper Service Excellence: Transforming the Customer Experience Telephone: +44 (0)20 7960 4197 Email: email@example.com makepositive.com Are we really getting the most from technology? Hello from
Digital Shopping Behavior in an Internet of Everything World Top Insights and Actions from Cisco Consulting Research Jon Stine Hiten Sethi Top insights and actions from this research have significant implications
New York Vol. 10 No. 1 First Quarter 2014 Leading Edge Insights into the World of the Wealthy Inside This Issue: WealthSurvey: Leveraging Technology In-Store and Online Affluent U.S. consumers weigh in
Smart shopping with your bank Card Linked Offers and Merchant Funded Rewards The Next Generation Loyalty Program Business ValueBusiness Value The Four Strategic Technology Areas The Must Haves for Competitive
August 2013 Rising to the Omni-Channel Challenge and Opportunities to Engage Today s Ultra-Connected Customers Rising to the Omni-Channel Challenge and Opportunities to Engage Today s Ultra-Connected Customers
Social Media for Automotive Dealers A Look at How Social Media Empowers Dealers Through Increased Exposure and Interaction With Consumers. This whitepaper offers a closer look at how social media gives