WELCOME Digital Loyalty Extending your reach beyond the counter

Transcription

1 WELCOME Digital Loyalty Extending your reach beyond the counter Presented by Mark Horwood-James Head of Strategy and Experience, The Gruden Group The Gruden Group 1

2 DIGITAL LOYALTY Welcome. We hope you enjoy your day at the Beauty Expo Australia Introduction The word loyalty The digital world Meet the brands Hints, Tips, Q&A A little background on myself and The Gruden Group. What does that word mean and why it is important? What are consumers telling us about digital interactions and loyalty Hear about our clients Starbucks, Red Rooster and Donut King. A few do s, a few don ts. Please feel free to see me after with any Q&As. The Gruden Group 2

3 WHO WE ARE About me The Gruden Group Introducing mobileden

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5 IN A SNAPSHOT 95 WE ARE AN INNOVATIVE FULL SERVICE DIGITAL AGENCY WITH A DEDICATED PRODUCT ARM ESTABLISHED IN MULTI DISCIPLINARY EXPERTS OFFICE LOCATIONS A full service digital agency. The Gruden Group 5

6 A FEW CLIENTS & PARTNERS OUR PARTNERS MEMBERS OF Over the past 20+ years we have worked with many companies. Small & big. Agencies. Design. FMCG. Government. Media. Retail. Startups. Technology. The Gruden Group 6

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8 CORE MODULES

9 ENGAGEMENT

10 WHAT DOES LOYALTY MEAN?

11 LOYALTY What does loyalty mean? Many look at the tactics and not the end goal It has become the custom to identify any customer that purchases your brand more than once as a loyalist... My favourite (correct) definition of brand loyalty came from the former CEO and chairman of Heinz who once explained his idea of brand loyalty for his brand: A shopper goes into a supermarket looking for some beans. There s no Heinz. She comes out without any beans. Could it be any simpler? Mark Ritson An Associate Professor of Marketing. Published journalist and Business Columnist of the Year 2015 The PPA Awards. The Gruden Group 11

12 LOYALTY There are many channels and mechanism s to generate loyalty, but they are not loyalty itself. Loyalty does not require reward Reward however can create loyalty "A thing given in recognition of effort" Customer retention does not mean loyalty Loyalty does generate retention A strong feeling of support or allegiance OUR GOAL IS TO GROW Income Profit Market share Retention Acquisition Quicker Cheaper Personalised Measured The Gruden Group 12

13 WHERE DO I START? It seems obvious but you must start with getting to know your customer. Before you can implement a digital loyalty strategy, it is key to know who your customer is. - Who are they? - What do they like and don t like? - What are their personal and family priorities? - What are their professional priorities? Build up a profile, a story, a portrait of who they are. Do you have one, two or three different types of customers? Do they have different reasons for buying your product/using your service? What is their opinion to digital marketing and which do they use most? What do they use it for? The Gruden Group 13

14 THE ELEMENTS OF LOYALTY The majority of businesses focus on price and product or service for sale. Loyalty is created from so much more Loyalty Product / service offering Pricing The Gruden Group 14

15 THE ELEMENTS OF LOYALTY The majority of businesses focus on price and product or service for sale. Loyalty is created from so much more Brand identity Customer service experience Reward / recognition Loyalty Communication / engagement Product / service offering Pricing The Gruden Group 15

16 WHAT ARE THE CUSTOMERS SAYING?

17 FOOD FOR THOUGHT Loyalty has to be cultivated. It can t be purchased or demanded. If you build loyalty with a customer, it shouldn t just be about instant gratification, it is about building a relationship pre and post purchase. Our customers are vocal brand advocates and answer 50% of our website queries I think that shows it can really work. Sam Thomson Brand Director at The Body Shop (Sam worked for 11 years at Proctor & Gamble and studied at Oxford University) The Gruden Group 17

18 THE DIGITAL WORLD These other factors are heavily influential to customer loyalty in today s digital world. Customer service experience Communication / engagement Reward / recognition Brand identity Website experience Support the customer at every key step Mobile friendly Online purchase process Digital and traditional experience must be integrated The digital purchase process makes it easy to buy once and buy again In-store purchase process Offer multiple payment options Embrace technology Distributors and third parties Does their digital experience and customer service impact on your customer loyalty? Can you enhance your service and experience by utilising other brands? The Gruden Group 18

19 THE DIGITAL WORLD These other factors are heavily influential to customer loyalty in today s digital world. Customer service experience Communication / engagement Reward / recognition Brand identity 47% unhappy Website experience Support the customer at every key step Mobile friendly Online purchase process Digital and traditional experience must be integrated The digital purchase process makes it easy to buy once and buy again In-store purchase process Offer multiple payment options Embrace technology Distributors and third parties 193.5m card transactions 17% vs 73% 2015 US & UK #1 being available #2 on my terms $25,649 million. Does their digital experience and customer service impact on your customer loyalty? Can you enhance your service and experience by utilising other brands? The Gruden Group 19

20 THE DIGITAL WORLD The other factors are heavily influential to customer loyalty in today s digital world. Customer service experience Communication / engagement Reward / recognition Brand identity SMS Pre-sale communication Simple, straightforward and supporting Personalistation Acknowledge your returning customers Post-sale communication Receipts and invoices Confirmations (order, delivery, manage expectations) A simple thank you Surveys: Insight and feedback Using data If you collect customer data, give customers a valuable reason Newsletters can be a real value add but remember the role A newsletter and an are not necessarily the same thing Social media 95% of content is viewed Loyal customers and advocates are already likely to be engaged Have a clear role for convert customers to loyal customers add value, don t preach And remember social media is social 42% INCREASE IN CONVERSION WITH PERSONALISED CTA The Gruden Group 20

21 THE DIGITAL WORLD The other factors are heavily influential to customer loyalty in today s digital world. Customer service experience Communication / engagement Reward / recognition Brand identity Pre-sale communication Simple, straightforward and supporting Personalistation Acknowledge your returning customers Post-sale communication Receipts and invoices Confirmations (order, delivery, manage expectations) A simple thank you Surveys: Insight and feedback Using data If you collect customer data, give customers a valuable reason Newsletters can be a real value add but remember the role A newsletter and an are not necessarily the same thing Social media Loyal customers and advocates are already likely to be engaged 25% e-receipts Have a clear role for convert customers to loyal customers add value, don t preach And remember social media is social Nearly 7 out 10 Customers leave a brand because they feel indifferent 1 in 10 Complete a survey with Survey Monkey every month in Australia The Gruden Group 21

22 THE DIGITAL WORLD The other factors are heavily influential to customer loyalty in today s digital world. Customer service experience Communication / engagement Reward / recognition Brand identity Pre-sale communication Simple, straightforward and supporting Personalistation Acknowledge your returning customers Post-sale communication Receipts and invoices Confirmations (order, delivery, manage expectations) A simple thank you Surveys: Insight and feedback Using data If you collect customer data, give customers a valuable reason Newsletters can be a real value add but remember the role A newsletter and an are not necessarily the same thing Social media Loyal customers and advocates are already likely to be engaged Have a clear role for convert customers to loyal customers add value, don t preach And remember social media is social The Gruden Group 22

23 Best Retail Online Newsletter Campaign, Best Of Show Online Newsletter Campaign Through campaigns segmented by hair colour, haircare and cosmetics, they elevated brand awareness across all product categories, including: cosmetics, hair colour, haircare, hair styling and skincare The Gruden Group 23

24 THE DIGITAL WORLD The other factors are heavily influential to customer loyalty in today s digital world. Customer service experience Communication / engagement Reward / recognition Brand identity Pre-sale communication Simple, straightforward and supporting Personalistation Acknowledge your returning customers Post-sale communication Receipts and invoices Confirmations (order, delivery, manage expectations) A simple thank you Surveys: Insight and feedback Using data If you collect customer data, give customers a valuable reason Newsletters can be a real value add but remember the role A newsletter and an are not necessarily the same thing Social media Loyal customers and advocates are already likely to be engaged Have a clear role for converting customers to loyal customers add value, don t preach And remember social media is social positive and negative word of mouth 9 million Facebook DAU 12 million pcm. The Gruden Group 24

25 THE DIGITAL WORLD The other factors are heavily influential to customer loyalty in today s digital world. Customer service experience Communication / engagement Reward / recognition Brand identity The Gruden Group 25

26 THE DIGITAL WORLD The other factors are heavily influential to customer loyalty in today s digital world. Customer service experience Communication / engagement Reward / recognition Brand identity A clear programme is a well-received programme Customers should find it easy to understand the benefits If a spend based system, focus on points/reward and not $$$ Base it around experiences and actions Link your programme back to who your customers are it is ok to be exclusive Personalise the rewards To them likes, dislikes, needs To the existing relationship with you Recognise key dates to create new reasons to believe Birthdays, anniversaries etc. Length of relationship with brand Changes to, or lack of, typical behaviour Have a clear strategy on the commercial value it s marketing after all Other products you can sell as part of rewarding your customers Obtain more information and data about your customers Moving customers up the product level to get more spend Don t push rewards and recognition for customers that aren t worth it 1 card 16 countries 600 hotels 800 restaurants $335 The Gruden Group 26

27 THE DIGITAL WORLD The other factors are heavily influential to customer loyalty in today s digital world. Customer service experience Communication / engagement Reward / recognition Brand identity Visual impacts Logo, imagery, colours, icons and other assets The right impression: old fashioned, too quirky, too conservative, too boring, too controversial You create and build a brand to connect with your customer and not everyone is right Make it appropriate to how you communicate social is different to and, again different to a website Language and tone Words and style; connotations, humorous, sarcastic, blunt, bland, harsh, rude, real People both consciously and subconsciously connect with language Build your style to connect with your customer - be consistent, be targeted and be brave Match your style to your digital channels be funny on social and be interesting on .. Brand values and perception (PR) What does your brand, product and business mean? If it was a person what does it stand for? What do people say about your brand online? The world is an open book now? When you go out to the public, how are people responding to you? Bad PR is not good for loyalty but Who are you in bed with? The values of that band are associated with yours! The Gruden Group 27

28 The Gruden Group 28

29 CLIENTS WHO FOCUSED ON LOYALTY

30 STARBUCKS For Starbucks, one of their main priorities is about delivering a better experience by making things easier for the customer. o o o o o 25 Stores across the east coast of Australia serving thousands of coffees every day. However, in Australia there are over 10,000 cafes. Developed an ios & Android mobile apps to support their Starbucks card programme - digital payments, promotions, social, store locator Desire was to establish a more personal connection with the brand, something they have been struggling to do in Australia. Winner of Best Online Shopping & Payments 2013 Mobi Awards 2013 AIMIA 2014 awards nominated & shortlisted ( Best Of Smartphone [Retail & WEB ecommerce] ) o Launching with them a new version of the application with a whole host of new features this year MOBILE STRATEGY Gruden Group 30

31 Digital Wallet & Loyalty Android & ios mobile apps 1

32 Android & ios mobile apps 2

36 DONUT KING AMAZEBALLS For Donut King, one of the key objectives was about engaging the customer, aligned to their brand values o o o o New product launch with the aim to target previous customers and cultivate brand loyalty. Two additional benefits: loyal customers had something new to say, new customers something to try. We developed an ios Augmented Reality game that was used in store to develop better relationships with customers. The focus was to connect with customers and align a new brand experience with the core brand values moving from communication to engagement. Everything created in-house and delivered in market in less than 1 month! GAME o Multi-award winner ( Best Of Show [ios App] & Best Mobile Marketing Campaign 2013 Mobi Awards) MOBILE STRATEGY Gruden Group 36

37 Our multi award-winning augmented reality ios game 1

38 Sketch 27 of 65 2

39 Low-poly prototype v0.1 3

40 Augmented gameplay, tips, trophies, leaderboards, share 4

41 Social campaign 5

42 RED ROOSTER For Red Rooster, their key priorities are around reward & recognition, to drive brand loyalty o o o o Red Rooster are part of Quick Service Restaurant Holdings (QSRH) who also own Chicken Treat and Oporto. The mobile loyalty app that we have developed for them offers a mixture of payment, rewards programme, special offers, ordering and social media integration. The challenge faced by the fast food sector is there is little customer influence opportunity at the final choice point. The mobile application gives Red Rooster a difference to other major competitors because it can help create new loyalist through the benefit of targeted and personalised rewards & offers (as part of an overall communications plan). END o It also recognises and rewards brand loyalist in different ways. TO END The Gruden Group 42

43 Red Royalty Digital Loyalty ios & Android Apps 1

44 Red Royalty - Loyalty Program (edm) 2

45 DO s & DON Ts

46 KEY THOUGHTS The do s of digital loyalty strategies are easy to remember. 1. Know your customer: What is it that will make the most impact and generate allegiance to your brand and product/service. Use your customers to your advantage. They are your biggest asset. Display reviews, actively seek feedback and take care of them. 2. To take the time to learn and research about the digital world. Today s a great start and there are many simple tools that can make a difference to your customers and specialist experts who make it their job to help you. 3. Digital is made up of many elements, simple and complicated. A Thank you on an SMS can generate just as much loyalty as a fully-fledged reward programme. 4. Loyal customers will mean cheaper business costs. It s cheaper to retain customers than acquire new ones, and word of mouth from advocates is the best form of advertising for new business. 5. Great loyalty is all based around insight. Insight comes from data, data, data! Don t be afraid to collect it and use it (make sure it s of value). Remember to track and measure activity. And listen to what is being said. The Gruden Group 46

47 ...THINK ABOUT... Don t make things more difficult for your business. The aim is to create a strong connection between your brand or product, and your customers. 1. Don t stay focused on price and product. True brand loyalty is generated from more than just those two elements. 2. Don t forget that repeat business does not necessarily mean loyal customers. 3. Don t try and do everything at once, you will only do them badly. Match your strengths and your customer s needs. 4. Don t play with social media if you don t have the time or only make half the required effort. You will only be speaking to people who are already loyal. 5. Don t forget other parties have a massive influence on the perception of your brand and the loyalty you generate. The Gruden Group 47

48 SPECIAL OFFER Just for Expo attendees from Blackglass, the digital marketing arm of The Gruden Group Win a Free Digital Strategy Go to our website for your chance to win a free digital marketing strategy, worth up to $5,000! Tell us in 50 words or less how a digital marketing campaign could change your business. Visit Terms and conditions apply. The Gruden Group 48

49 THANK YOU US BlackglassAU GrudenDigital Blackglass Gruden