This document discusses taking loyalty marketing beyond simple discounts. It suggests six new tactics for loyalty programs: 1) using social media to provide a more personal experience, 2) rewarding customers based on their affinities rather than just purchases, 3) enhancing the mobile experience, 4) factoring in customer locations, 5) scoring customers like marketing leads, and 6) using an open architecture to partner with other brands to deepen understanding of customers. The document argues that today's customers, especially younger generations, value online reputations and experiences over simple coupons.

1. Taking Loyalty Beyond The Discount
Dave Walters, Product Evangelist
@_DaveWalters

2. So Who is This Dude?
Twenty-Year Digital Marketer
COO @ Loyalty Startup
Corporate + Agency
Relationship Marketing Practice Lead
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3. Who is Silverpop?
Silverpop is the Unified Digital Marketing Platform
that delivers superior overall
“return on relationship” powered by the deepest
insight into the way customers behave.
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4. 4,000+ Brands and 15,000 Marketers
Financial Services Retail Energy & Utilities Media Business Services Software
Travel & Hospitality Non-Profit Food & Beverage Hardware Entertainment Education
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5. Behavioral Marketing
Real-time, cross-channel, insanely relevant campaigns to
one person at a time automatically driven by analytics of
their actions, preferences and profiles.

6. The Wild West of Loyalty Marketing
~$100/mo./location
$50 for 500 $3-5MM/yr.
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7. Why Do Loyalty Programs Exist?
• They created real choice modifiers and drove strong add-on
revenues in specific industries, like travel and retail
– Yep, he just used the past tense :: <CREATED>
• More market competition drove increasing price and share-of-
spend pressures
– Sure, the rise of analytics weenies drove new dynamics
• Buyers respond positively to more engaging relationships
– Newsflash, we’re social beings who like being recognized
• Marketing programs have their own momentum
– Once proven, it’s hard to kill a big fish
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8. When They’re Great
High SKU-Level Margins
Commoditized Product
Steady-State Marketing Budget
Repeatable Purchase Cycle
Data-Driven Marketers
MDF Funds
Recurring Customers
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9. When They’re Terrible
Price-Satisfied Customers
Complex Product Offering
Commingled With Other Brands
Few Fraud Controls
No In-Store Training
Just Free Stuff
Nothing is ‘Learned’
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10. “A completely different mindset is required if any
semblance of a loyalty program is going to stick to today’s
20-year-old, who is the prime earner of the next 20 years.
Online reputation and real-life experiences will trump a 15%
coupon any day of the week and twice on Sundays.”
Me, 2010
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11. Six New Tactics Beyond Discounts
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12. Open Your Social Eyes
• Better ‘appreciation dynamic’
• It’s real-time, more personal,
and is absolutely scalable
• Consider social advocacy on
par with item purchases
• Use tools like Twitter Advanced
Search or Radian6
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13. Reward Based on Affinity
• Think beyond the item being
bought from you
• What resonates with the
PERSON
• Gently test a wide range of
hypotheses with partner offers
• And then there’s Prime…
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14. Go Deep on Mobile
• Captain Obvious moment: your users
have smartphones
• Look closely at hard costs, and then
spend that money build an app
• Keep the experience immediate, drive-
to-web is bad here
• Remember non-digital high spenders
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15. Factor for Location
• Of all the ‘behaviors’, location
is among the strongest
predictors
• Keep a permission layer, but
use the data to inform your
programs
• Don’t miss the opportunity to
socially thank visitors
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16. Score It Like a Lead
• As long as we’re beyond the
transaction, go for it!
• B2B-stlye lead scoring applies
to events beautifully
• Group your customers by tier
and market to them differently
• Experiment aggressively
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17. An Open Architecture
• The biggest challenge today
• Takes affinity-driven rewards
to their logical conclusion
• Reduce costs *and* deepen
your customer understandings
• Pick only your best friends and
partners
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18. The Thank You Economy
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19. Questions?
Dave Walters
 dwalters@silverpop.com
 Twitter: @_DaveWalters
www.slideshare.net/silverpop
Twitter: @SIlverpop
www.silverpop.com
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