It's not enough to expect your customers to react to traditional stamp or points-based loyalty programs anymore. Now, more than ever, you must consider the entire customer journey and what customer motivations and pain points you should address along it to maximise the emotional connection.

1. 1
©2017 The Marketing Store. All rights reserved.

2. 2
©2017 The Marketing Store. All rights reserved.
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
BRANDING IS
EVERYTHING
EVERYTHING
IS BRANDING
Service Economy Experience Economy
THEN NOW

3. 3
©2017 The Marketing Store. All rights reserved.
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
THE BUSINESS
IS EVERYTHING
THE CUSTOMER
IS EVERYTHING
Old Loyalty New Loyalty
THEN NOW

4. 4
©2017 The Marketing Store. All rights reserved.
THE MARKETING STORE / LOYALTY THROUGH ENGAGEMENT
EXPERIENCE
IS THE BRAND

5. 5
©2017 The Marketing Store. All rights reserved.
CUSTOMER
EXPERIENCE
MATTERS
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE

6. 6
©2017 The Marketing Store. All rights reserved.
DIGITAL
PHYSICAL

7. 7
©2017 The Marketing Store. All rights reserved.

8. 8
©2017 The Marketing Store. All rights reserved.

9. 9
©2017 The Marketing Store. All rights reserved.

10. 10
©2017 The Marketing Store. All rights reserved.

11. 11
©2017 The Marketing Store. All rights reserved.
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
Personalisation
Time & Effort
Expectations
Resolution
Integrity
Empathy
KPMG SIX PILLARS

12. 12
©2017 The Marketing Store. All rights reserved.
GREAT
SERVICE
TRUMPS
PERFECTION
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE

13. 13
©2017 The Marketing Store. All rights reserved.
WHAT IS
LOYALTY?
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE

14. 14
©2017 The Marketing Store. All rights reserved.
LOYALTY
IS CHOICE
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
A customer is choosing you multiple
times over another brand or service –
and there are MANY to choose from
these days.

15. 15
©2017 The Marketing Store. All rights reserved.
BEYOND
POINTS
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE

16. 16
©2017 The Marketing Store. All rights reserved.
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
Savvy companies should look beyond
simple rewards programs to delight,
create and retain loyal customers.
They are looking to solve customers’
problems and soothe pain points.

17. 17
©2017 The Marketing Store. All rights reserved.
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
STARBUCKS
Real time rewards
Make and pay for orders
Free music streaming

18. 18
©2017 The Marketing Store. All rights reserved.
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
STARWOOD SPG
Special offers
Checking in and out
Room status
Keyless entry

19. 19
©2017 The Marketing Store. All rights reserved.
WHY YOU
SHOULD
CARE!
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE

20. 20
©2017 The Marketing Store. All rights reserved.
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
On average, loyal
customers are worth
up to 10 times as much
as their first purchase.
LOYAL CUSTOMERS
(IPSOS)

21. 21
©2017 The Marketing Store. All rights reserved.
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
LOYAL CUSTOMERS
Less expensive
Less expensive
More consistent
Spend more
Refer more business

22. 22
©2017 The Marketing Store. All rights reserved.
80% OF YOUR
REVENUE
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
is being generated by only
20% of your customers.
(IPSOS)

23. 23
©2017 The Marketing Store. All rights reserved.
5X
MORE
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
The cost of attracting new
customers over keeping
existing ones.
68%
MORE
How much existing customers
will spend versus new
customers.
(FORRESTER)

24. 24
©2017 The Marketing Store. All rights reserved.
WHAT
CREATES
LOYALTY?
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE

25. 25
©2017 The Marketing Store. All rights reserved.
ONGOING
SATISFACTION
& CONNECTION
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE

26. 26
©2017 The Marketing Store. All rights reserved.
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
Forget B2B or B2C – it’s H2H that matters:
Human to Human

27. 27
©2017 The Marketing Store. All rights reserved.
RETENTION
MATTERS
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE

28. 28
©2017 The Marketing Store. All rights reserved.
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
LOYALTY BARRIERS
Bad customer service
Less expensive
Other options
Prefer competitor
Not incentivised

29. 29
©2017 The Marketing Store. All rights reserved.
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
LOYALTY GOALS
+ visit frequency
Less expensive
+ spend per visit
Win back lost
customers
Increase the customer
lifetime value

30. 30
©2017 The Marketing Store. All rights reserved.
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
TRUE
Optimise the Experience
“My connection to the brand
goes beyond the offer.”
CULT
Optimise the Tribe
“The brand reflects my
personal identity.”
INTERTIA
Optimise the Experience
“I’m only here because it’s too
much trouble to go elsewhere.”
MERCENARY
Optimise the Tribe
“I’m loyal because you
pay me to be loyal.”
Relational
Transactional
Passive Active
4-DIMENSIONAL
LOYALTY FRAMEWORK
There is no one strategy
to rule them all.
Any retention strategy should
leverage empirical data
about where your customers
are in this matrix and then
devise how to get them to the
next level.

31. 31
©2017 The Marketing Store. All rights reserved.
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
• No other alternative.
• Verge of disappearing.
• Your prices can be beaten;
competitors offering
similar products can
arrive at any time.
• Deeper engagement with
existing customers is key.
INERTIA
Passive/Transactional
TRUE
Optimise the Experience
“My connection to the brand
goes beyond the offer.”
CULT
Optimise the Tribe
“The brand reflects my
personal identity.”
INTERTIA
Optimise the Experience
“I’m only here because it’s too
much trouble to go elsewhere.”
MERCENARY
Optimise the Tribe
“I’m loyal because you
pay me to be loyal.”
Relational
Transactional
Passive Active

32. 32
©2017 The Marketing Store. All rights reserved.
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
MERCENARY
Active/Transactional
• Discount driven and
opportunistic.
• Not committed to your
products or values.
• Rewards will encourage
certain behaviours and
viewpoints.
TRUE
Optimise the Experience
“My connection to the brand
goes beyond the offer.”
CULT
Optimise the Tribe
“The brand reflects my
personal identity.”
INTERTIA
Optimise the Experience
“I’m only here because it’s too
much trouble to go elsewhere.”
MERCENARY
Optimise the Tribe
“I’m loyal because you
pay me to be loyal.”
Relational
Transactional
Passive Active

33. 33
©2017 The Marketing Store. All rights reserved.
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
TRUE
Active/Transactional
• Loyalty based on the quality
of your products.
• Buying from you because
they love what you sell.
• Customers here want
satisfaction across all
levels – products, comms,
CX and digital access to
stores.
TRUE
Optimise the Experience
“My connection to the brand
goes beyond the offer.”
CULT
Optimise the Tribe
“The brand reflects my
personal identity.”
INTERTIA
Optimise the Experience
“I’m only here because it’s too
much trouble to go elsewhere.”
MERCENARY
Optimise the Tribe
“I’m loyal because you
pay me to be loyal.”
Relational
Transactional
Passive Active

34. 34
©2017 The Marketing Store. All rights reserved.
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
CULT
Active/Relational
• A result of quality and
powerful brand messaging.
• Customers are proud to be
associated with you.
• Vocal advocates.
• You have succeeded selling
your ideas and your brand.
• People feel a kinship with
other customers who buy
from and support you.
TRUE
Optimise the Experience
“My connection to the brand
goes beyond the offer.”
CULT
Optimise the Tribe
“The brand reflects my
personal identity.”
INTERTIA
Optimise the Experience
“I’m only here because it’s too
much trouble to go elsewhere.”
MERCENARY
Optimise the Tribe
“I’m loyal because you
pay me to be loyal.”
Relational
Transactional
Passive Active

35. 35
©2017 The Marketing Store. All rights reserved.
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
WHAT
CUSTOMERS
WANT
To be rewarded for
their loyalty
Less expensive
We give, they get; They
give, we get.
To have a personalised
relationship with you.
To be told about
special offers.

36. 36
©2017 The Marketing Store. All rights reserved.
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
WHAT
CUSTOMERS
DON’T WANT
To be hit with
irrelevant messaging.
Less expensive
To be ignored for their
loyalty.
To feel like they aren’t
special to you.
To be treated like they
aren’t cared about.

37. 37
©2017 The Marketing Store. All rights reserved.
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
WHAT
BUSINESS
WANTS
+ share of wallet,
purchase and value.
Less expensive
Understand behaviour
to refine experiences.
Loyalty and CRM to
scale and be flexible.

38. 38
©2017 The Marketing Store. All rights reserved.
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
WHAT
BUSINESS
DOESN’T
WANT
Angry and vocal
customers on social.
Less expensive
To blindly follow the
competition.
Any increase in
customer churn.

39. 39
©2017 The Marketing Store. All rights reserved.
THE MARKETING STORE / LOYALTY THROUGH EXPERIENCE
REAL LOYALTY IS
DRIVEN BY EMOTION
Trust. Satisfaction. Reward.

40. 40
©2017 The Marketing Store. All rights reserved.

41. 41
©2017 The Marketing Store. All rights reserved.