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Driving brand advocacy_for_telcos
1.
Key tools to drive
profitable customer relationships Berlin, May 22nd 2012 Alexander Meili, European Strategy Officer
2.
Who we are âą
ICLP Loyalty â A full-service loyalty marketing agency with a global presence â 25 years of experience in loyalty marketing â Strategy / Insight / Dialogue / Delivery âą Collinson Latitude (sister company) â Innovative products/tools delivering incremental revenue to clients Page: 2 © 2012
3.
About telco loyalty
4.
Increasing need of
innovative loyalty Tough macro context: Digital revolution: Saturated markets Commoditization Cannibalization European Countries in Recession (at least 2 consecutive quarters of negative growth) 17 mill. people jobless (11%) -10 âŹBn Focus Increase of on Demand contraction commercial retention agressiveness SMS Revenue Loss due to OTT players of telco operators worldwide, 2011 (1) Source: Eurostat, March, 2012 and IMF, 2012. (1) Source: Ovum, 2012. Page: 4 © 2012
5.
3rd Focus shift happening
most important reason to change provider 4% 43% (after: new handset, 76% lower rates) prepaid subscribers 3rd party Telcos have a loyalty rank loyalty programs model program offering high value (Americas: 60%) gifts most appealing (Europe: 35%) (71% on contract) 74% TELCOSubscribers Points driven LOYALTY Telco loyalty facts 50% expect higher 66% FACTS Operators customer level support when being believe that loyal or premium customers are less client loyal today than they were two years ago 70% 20% expect shopping cite customer vouchers as retention and loyalty loyalty reward as the critical factor for driving their growth Sources: ICLP, Amdocs, Buongiorno , World Mobile Congress Page: 5 © 2012
6.
Recent program launches Page:
7 © 2012
7.
Loyalty models applied
Privileges (soft) legend: programs no programs targeted âTiers' âTiers and points' Tiered program that recognizes Reward and Recognition customers according to program that offers Telco and ARPU spend with Telco and non-Telco services and rewards non-Telco services âInformation led' âPoints' Customers receive points for Customers receive Telco money spend and interactions promotions and exclusive Telco- with Telco that can be Partner information â no redeemed for new Telco registration needed products simple Incentives (hard) simple targeted source: ICLP strategy, 2011 Page: 8 © 2012
8.
Loyalty models applied
Privileges (soft) legend: programs no programs targeted âTiers' âTiers and points' Tiered program that recognizes Reward and Recognition customers according to 11% ARPU spend with telco and non-telco services 4% program that offers Telco and non-Telco services and rewards trend âInformation led' âPoints' increasing! Customers receive points for Customers receive Telco money spend and interactions promotions and exclusive Telco- 57% Partner information â no registration needed 28% with Telco that can be redeemed for new telco products simple Incentives (hard) simple targeted source: ICLP strategy, 2011 Page: 9 © 2012
9.
Why is loyalty
getting this buzz? Customer lifecycle Customer value Upselling ï§ Word of mouth Intensification ï§ From acquisition to long term engagement Activation Avoid downselling ï§ Retention cost < Acquisition cost ï§ Profit center ï§ Churn prevention Acquisition Customer retention Customer win-back Page: 10 © 2012
10.
However, some failedâŠ
Low engagement of customers Lack of top executive Lack of customer sponsorship insight Proposition not Business case compelling enough built on non- realistic grounds Performance insufficiently measured source: http://blog.iclployalty.com/tag/loyalty-programme-2/ Page: 11 © 2012
11.
What is the
secret of successful loyalty?
12.
The tool set Page:
13 © 2012
13.
Follow loyalty trends? Which
ones? mainly tactical â long-term engagement not guaranteed Page: 14 © 2012
14.
Match competitor proposition?
no differentiation â long-term engagement not guaranteed Page: 15 © 2012
15.
Start with the
loyalty ladder! Advocate! Supporter Client Loyalty marketing Customer Prospect Traditional marketing driving advocacy is the key to guarantee long term engagement Page: 16 © 2012
16.
What drives customer advocacy?
17.
Growth by customer
advocacy: 8 tools 3. Empowered 4. Ambassador 1. Referral program 2. Tryvertising involvement program -10% 25% High partici- Customer Buy the pation and acquisition product awareness Vodafone after testing cost Welcome to Spain starts Joyn beta ââŠwould you like to âwanna become a AT&T Refer- testing help design the new trend scout for a A-Friend program Boeing airplane?...â year?â program 5. Causal campaigns 6. Influencer outreach 7. Advocacy tracking 8. Innovation churn reduction generates 30% (non core) BT, in advisory Feed- volunteer sales boost churn Benefit bundles support of panel back sales reduction adding Childline outside differentiation -in Page: 18 © 2012
18.
CEM: Exceeding customer
expectations Adocacy toolbox 1. Referral 2. Tryvertising Added program Value Experience 3. Empowered 4. Ambassador involvement program Expectation level Experience level 5. Casual 6. Influencer campaign outreach 7. Advocacy 8. Innovation tracking Page: 19 © 2012
19.
Performance predictor
NPS leaders 4x growth vs. industry average the more clients who are advocates, the higher the growth Page: 20 © 2012
20.
Take-aways
Difficult economy calling for impactful loyalty Advocacy = long term strategic goal of loyalty Correlation with revenues as ROI Most powerful asset: Existing customers Validated tools to drive advocacy Page: 21 © 2012
21.
Thanks! ICLP Loyalty Alexander Meili European
Strategy Officer alexander.meili@iclployalty.com