https wwwyoutubecomwatchv5EkiOwoLz4 TED Talk Customer Loyalty Customer Loyalty Faithful to a cause ideal custom institution or product Unswerving allegiance to specific brands or products ID: 656899
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Slide1
Customer Loyalty St. 6
Objective: Students will Evaluate, Develop, & Measure customer loyalty & SatisfactionSlide2
https://www.youtube.com/watch?v=5EkiOwoLz-4
TED Talk – Customer LoyaltySlide3
Customer Loyalty
Faithful to a cause, ideal, custom, institution or product.Unswerving allegiance to specific brands or products. Having the nerve or courage to stand behind a product, brand, or service in both good times and bad.Slide4
What do Loyalty Programs do?Provide a competitive advantage
Are a “hook” to keep customers coming backIdentify most profitable customersPositively alter purchasing behaviorHelp lead to more profitable customersSlide5
Why do business’s need to have a loyalty program?
Build awarenessBuild brand equityBuild customer approvalBuild customer appreciationBuild a competitive advantage
Build a greater knowledge or products/servicesSlide6
Why should a company embrace loyalty programs?
Customer has an incentive to be loyal.Customer buys from you.Company receives more business than before.Customer receives their reward.Slide7
10 Popular & Highly Successful loyalty programs across a variety of industries.
1. CVS/pharmacy ExtraCare2. Southwest Rapid Rewards3. Dick’s Sporting Goods
ScoreCard
4. American Express Membership Rewards
5. Saks Fifth Avenue SAKSFIRST
6. Kroger Plus
7. Barnes & Noble Member Program
8. Speedway
SuperAmerica
Speedy Rewards
9. T.G.I. Fridays
Give Me More Stripes
10. Marriott RewardsSlide8
Quick Loyalty Test
List 10 products or brands you’re most loyal to. (example list on next slide)Make your own list of the 10 products you are most loyal to.Slide9
Quick Loyalty Test
This simple exercise can define the essence of the products & brands you are most loyal to. It defines the person you are as a consumer & most likely represents the ten products or brands you obviously think of first and most often. Slide10
Top 10
1. Miami Dolphins2. iPhone3. Nike4. Starbucks5. New York Yankees
6. Zappos.com
7. Titleist
8. Tom’s Shoes
9. Nordstrom
10. Entrepreneur MagazineSlide11
The Loyalty Cycle
1. Identify Customers2. Track Spending3. Motivate Behavior4. Reward Performance5. Measure ResultsSlide12
Loyalty Cycle – Step 1 Identify Customers
Initiate a process to identify your customers and assign a unique identifier to each (i.e., loyalty card, payment instrument, e-mail addresses, etc). Slide13
Step 2 – Track Spending
Once an identifier is in place, you now have the means to track spending. Slide14
Step 3 – Motivate Behavior
Identifying your customers and tracking their spending provide an ideal platform for motivating customer behavior. After compiling a minimum of two to three months of data, you can start to analyze the data, market directly to your loyal customers, and aim to change their purchasing behavior.Slide15
Step 4 – Reward Performance
People like to be rewarded for their performance. If the reward has a high perceived value, then your customer will more likely take action.Slide16
Step 5 – Measure Results
Loyalty programs evolve based on the success of individual promotions and campaigns within your strategy. Once you can measure the results of each promotion, you can measure the success of your loyalty strategy. Slide17
My Starbucks Rewards
Membership is free for My Starbucks Rewards; however, in order to participate you have to purchase a gift card for $5 or more and register your Starbucks Card online. 3 levels of membership & members can earn 1 Star for every purchase made with the card. The more stars you earn, the greater the rewards.
0-4 Stars puts you at the Welcome Level.
Free drink on your birthday.
2 hours free Wi-Fi daily
5 Stars puts you at Green Level. Besides your free birthday drink, here’s what you get:
Free Birthday Drink
Add a syrup or swap in soy milk at no extra charge.
Free refills while you’re here
Buy a pound of beans & get a free tall drink.
30 Stars puts you at Gold Level.
Get all the Green Level Benefits
Free Drink for every 15 Stars
Your own personalized Gold Card
Special Member offers and coupons via email. Slide18
Card Rewards Program
Customers earn 1 point for each $1 spent on SUBWAY restaurant menu items. The points can then be redeemed for free menu items. 10 points = 1 Cookie15 points = 1 Bag of Chips
20 points = 21 oz. Drink
50 points = Regular 6” Sub
75 points = Regular Foot long Sub Slide19
Dick’s Sporting Goods
Free MembershipRewards Certificate for every 300 pointsProduct PreviewsPeriodic Friends and Family Discounts
ScoreCard
Rewards Insider News
Members-Only Savings Events
Scorecard Rewards Hotline at 1.800.440.4002Slide20
Use points for any seat, any time – no blackout dates.
6 points for every $1 spent.
Points don’t expire
JetBlue continues to thrive in providing excellent customer loyalty. In addition to providing everyday perks such as additional legroom, satellite television for every seat, and more snacks & no blackout dates.Slide21
Zappos
Customer Interaction has been the ultimate marketing took since Zappos began.
75% of business is repeat customers.
Zappos
goes the extra mile by sending handwritten thank you cards to customers, sending flowers or “
WoW
” package (book, stickers,
zappo
items).
Use Twitter to reach customers who may not ever call in. Also use Facebook & a
Zappos
blog that allows customers & employees to post comments.
If you are hired to work for
Zappos
you go through a 4 week training session and then spend a week in the Kentucky fulfillment center to understand the shipping process. When the training period is over, new hires are paid for the time they trained, plus they receive a $2000 bonus to quit. Why? The company feels it is less expensive to pay a new employee to quit early on if they don’t have the passion to be long-term. Slide22
Reward Options
PointsInstant Discounts, Rebates, or Promotional CodesCash BackGift Cards
Partner Gift Cards
Travel Vouchers
Frequency Programs
Redemption CatalogSlide23
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