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Responding to Changing
Customer Needs During Covid-19
Sharing Best Practice to Adjust Your Loyalty Program
And Customer Service Offerings
April 8, 2020
JÖRN ROEGLER - Antavo’s VP of Strategy & Insights
GIULIA FILOSO - Loyalty Strategist at Antavo
AGENDA
I. The impact of COVID-19
II. Brands best practice
III. What does it mean for you?
IV. Q&A
© 2020 Antavo. Reproduction Prohibited.
I. The impact of COVID-19
© 2020 Antavo. Reproduction Prohibited.
THE COVID-19 PANDEMIC
Global Lockdown - store closures, social distancing, economic pressure
BRIEF TIMELINE
● 2019 December First cases of a novel coronavirus detected in China
● Jan 23 Lockdown begins in Wuhan
● Mar 09 National Quarantine across Italy
● Mar 13 WHO declares Europe centre of Pandemic
● Mar 17 Coronavirus reported in all 50 US states
● Mar 23 Lockdown of 1.3B citizens in India
● Mar 28 10M new unemployment applications in US
© 2020 Antavo. Reproduction Prohibited.
A NEW CUSTOMER REALITY
Economic Uncertainty, More Time at Home, Worries about Family & Friends
“HOME HUB”
● E-COMMERCE
● CONTACTLESS
● ENTERTAINMENT
● VIRTUAL FRIENDS
“CRISIS SPEND”
● FOOD ESSENTIALS
● FUNCTIONAL
● EMOTIONAL
● INFLUENCED
“CARE & SHARE”
● DONATIONS
● VOLUNTEERING
● COMMUNITY
● HEALTHCARE
© 2020 Antavo. Reproduction Prohibited.
SERVE, DON’T SELL
Empathy has become a new norm in marketing
The Good, The Bad & The Ugly
Brands that have reacted well were able to gain customer praise, awareness and ultimately improved brand equity, whereas other
brands were exposed to severe customer backlash for failures to protect and care for customers and employees.
Encourage customers to
stay safe & give support
Prioritised activity over
employees’ safety
Not easing cancellation
refund process
© 2020 Antavo. Reproduction Prohibited.
II. Brands
Best Practice
© 2020 Antavo. Reproduction Prohibited.
© 2020 Antavo. Reproduction Prohibited.
Delivery made
available from HK
Extended returns
from 30 to 60 days
Free shipping
on every order
IMMEDIATE ECOMM ACTIONS
Make Shopping Worthwhile For Customers
Customer Satisfaction is Still a Priority
Despite a more reserved spending attitude, people still seek to buy products online to keep their minds off their problems. However,
more time at hand means more time to search for the most attractive offer. The best course of action is to introduce features that
make the journey convenient, quick and beneficial.
#E-COMMERCE #EMOTIONAL #INFLUENCED#CONTACTLESS
HOME
HUB
CRISIS
SPEND
CARE
& SHARE
LOYALTY PROGRAM ADJUSTMENTS
Loosen Expirations / Adjust Redemption
Don’t penalize your best customers
Some existing loyalty program mechanics no longer make sense in
the current situation and brands have reacted proactively:
Services are severely disrupted (e.g. hotels & airlines)
• Removing expiration of points & tiers
• Relaxing rebooking conditions
Services are available, but non-essential (e-Commerce)
• Reducing minimum spend for redemption
• Lowering rewards thresholds
#ECOMMERCE#FUNCTIONAL #CONTACTLESS
HOME
HUB
CRISIS
SPEND
CARE
& SHARE
© 2020 Antavo. Reproduction Prohibited.
© 2020 Antavo. Reproduction Prohibited.
STAY CLOSE TO CUSTOMERS
Create an Online Community Area
Keep Up the Spirit During the Crisis
To fight isolation and foster virtual friendships, UK beer company
BrewDog turned all their 48 bars into virtual pubs. Patrons
connect through Zoom and have a laugh together
— growing fonder of BrewDog in the process.
Virtual pub exclusive features:
• News from the brand
• Raise a glass with the founders
• Homebrewing tutorials
• Fun quizzes & games
• Live music stream
• Cook-along sessions
All virtual pub events are communicated via social.
#VIRTUAL FRIENDS#CONTACTLESS #ENTERTAINMENT #EMOTIONAL #INFLUENCED
HOME
HUB
CRISIS
SPEND
CARE
& SHARE
© 2020 Antavo. Reproduction Prohibited. #CONTACTLESS #DONATION #COMMUNITY
CONTRIBUTE TO HEALTH EFFORTS
Organize Donations, Create Content
Encourage Cooperation
During the crisis, even the smallest gesture helps. Motivate
customers to contribute to the humanitarian efforts and
improve their life.
Under Armour’s Healthy at home challenge encourages to
keep a healthy lifestyle for a good cause. Instead of unlocking
prizes, recorded workouts will contribute to donations to
Good Sports, an organization providing sports equipment to
kids in need.
The sportswear brand is going to organize donations up to 1
million dollars.
#HEALTHCARE
HOME
HUB
CRISIS
SPEND
CARE
& SHARE
Let Them See Your Brand Under a New Light
Sustainability and social responsibility has been high on customer’s agenda before, but the Coronavirus made them even more
aware. Instead of closing down, many businesses decided to regroup their resources to support hospitals or public workers. Such
activities strengthen the brand image and generate positive word-of-mouth.
Produces face masks
& shields
Transport healthcare
workers for free
Produces hand
sanitizer
#VOLUNTEERING #HEALTHCARE#COMMUNITY
HOME
HUB
CRISIS
SPEND
CARE
& SHARE
ACT FOR THE COMMON GOOD
Visible Efforts to Support Health Care
© 2020 Antavo. Reproduction Prohibited.
© 2020 Antavo. Reproduction Prohibited. #FUNCTIONAL#FOOD ESSENTIALS
KEEP CUSTOMERS & EMPLOYEES SAFE
Prevent The Pandemic From Spreading Further
Go the Extra Mile, Protect Those Who Need It
Other than the standard safety proceedings, go one step beyond
and show customers that you take good care of them, as well as
your employees.
The Community Food Market West Oakland limits the amount
of essential goods one customer can purchase for the sake of
fairness, as well as increased daily sanitizing of surfaces in the
store and is now offering sanitizing wipes.
It also launched multiple fundraisings to offer a better CalFresh
benefit program for the people in need - those with lower income
(increasing their usual 10% discount up to 50%) & the elderly
(offering free food delivery).
HOME
HUB
CRISIS
SPEND
CARE
& SHARE
#DONATIONS #HEALTHCARE
#HEALTHCARE#COMMUNITY#ENTERTAINMENT
HOME
HUB
CRISIS
SPEND
CARE
& SHARE
CREATE INFOTAINMENT
Reach Member On Their Favorite Channels
Leverage Creativity, Take Advantage of Virality
Many people feel depressed, but you need to be present on their
favorite channels to bring them a little fun.
Cosmetics brand E.l.f. went viral on TikTok with a remix of a
trending song, changing the lyrics to call attention to the
importance of personal hygiene and self-distancing.
E.l.f. not only broadcasted its message to their TikTok fans, but
also convinced them to be their number one choice when it comes
to purchasing cleaning products.
© 2020 Antavo. Reproduction Prohibited.
© 2020 Antavo. Reproduction Prohibited. #EMOTIONAL#INFLUENCED
HOME
HUB
CRISIS
SPEND
CARE
& SHARE
24/7 AVAILABILITY IS A MUST-HAVE
Adapt And Test Ways to Stay Relevant
Run Your Business More Flexibly
Customers might be less keen to order non-essential goods, but if
they decide to do so, they wish to have it as soon as possible.
Starbucks used the situation as an opportunity to expand its
to-go service, partnering with Uber Eats to deliver coffee up to 48
states in the US.
Starbucks has been always at the forefront of innovation, and now
leverages the fact that more people are ordering coffee than ever.
With this, the company is able to test the waters and learn about
this segment besides evolving its digital platform.
#CONTACTLESS
#EMOTIONAL#INFLUENCED
HOME
HUB
NEW CUSTOMER EXPERIENCES
For Safety, Convenience & Fun
Service Offerings with Accelerated Rollout
Contactless
Lieferando (food) & DHL (goods) implemented contactless
delivery options in Germany. In Shenzen, car rental
companies offered free rental days to avoid public transport
Online Services
Banks & Fashion retailers have moved customer advice
services to online chat rooms, engaging employees &
customers alike
Helpful Content
Sarah Flint uses staff to provide useful advice to customers
that is not linked to classic offerings, deepening the emotional
bond to the brand
#COMMUNITY
CRISIS
SPEND
CARE
& SHARE
#CONTACTLESS© 2020 Antavo. Reproduction Prohibited.
III. What does it mean for you?
© 2020 Antavo. Reproduction Prohibited.
New content & services Repeat engagement actions Collect customer information
Lay the groundworks today for a future loyalty initiative
● Adjust to customer
expectations & needs
● Be empathetic and proactive
● Involve your staff & personnel
● Challenges & badges can serve
as easy entry-point
● Try out subscription to services
for preferred access
● Encourage customer dialogue
● Prioritise customer registration
and Single Customer View
● Store the data of any online
engagement activity
● Run dedicated tests and
surveys
Positive customer experience Brand connection - MVP Head start for loyalty design
WHAT DOES IT MEAN FOR YOU...
If You Don’t Have a Loyalty Program
© 2020 Antavo. Reproduction Prohibited.
Remove sources of friction Adjust incentives & rewards Prepare for the future
Follow a simple 3-step approach to drive continuous customer satisfaction & loyalty
● Remove or Postpone any
expirations of points or tiers
● Lower redemption thresholds
to allow points usage
● Be proactive and generous
● Incentivise usage of new service
offerings
● Create new altruistic rewards
(e.g. points donation)
● Develop fun new brand
engagement elements
● Special rewards for returning
customers
● Accelerate migration to digital
& omnichannel
● Test & Learn about customer
preferences & attitudes
Remove sources of dissatisfaction Support new business models Come out stronger
WHAT DOES IT MEAN FOR YOU...
If You Have a Loyalty Program
© 2020 Antavo. Reproduction Prohibited.
WHAT DOES IT MEAN FOR YOU...
If Your Ecommerce Business is Booming
Your key challenge will be to turn today’s guests into tomorrow’s loyal customers - prevent their
return to pre-COVID shopping patterns. In China, for example the share of customers 45+ increased
by 27% between Jan - Feb 2020 (QuestMobile)
● Act now - every new customer is an opportunity to build a relationship
● Prioritise defensive measures - status benefits & instant rewards
● Test & Learn - unprecedented volumes allow for more & quicker testing
● Don’t exploit the situation commercially - focus on long-term prices, margins, profit
© 2020 Antavo. Reproduction Prohibited.
Any disruption to the norm is a trigger for
consumers to re-evaluate their shopping
decisions, switch suppliers and build new
loyalty.
Those who act and adapt quickly are going
to come out ahead.
CUSTOMER EXPERIENCE IS KEY
Learnings from the last recession in 2007 - 09
Source:
Forrester Customer Experience Performance Index (2007-09)
McKinsey Marketing & Sales Insights April 2020
© 2020 Antavo. Reproduction Prohibited.
Interested in learning more?
giulia.filoso@antavo.com
www.antavo.com
Thank you!

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Responding to Changing Customer Needs During Covid-19

  • 1. Responding to Changing Customer Needs During Covid-19 Sharing Best Practice to Adjust Your Loyalty Program And Customer Service Offerings April 8, 2020 JÖRN ROEGLER - Antavo’s VP of Strategy & Insights GIULIA FILOSO - Loyalty Strategist at Antavo
  • 2. AGENDA I. The impact of COVID-19 II. Brands best practice III. What does it mean for you? IV. Q&A © 2020 Antavo. Reproduction Prohibited.
  • 3. I. The impact of COVID-19 © 2020 Antavo. Reproduction Prohibited.
  • 4. THE COVID-19 PANDEMIC Global Lockdown - store closures, social distancing, economic pressure BRIEF TIMELINE ● 2019 December First cases of a novel coronavirus detected in China ● Jan 23 Lockdown begins in Wuhan ● Mar 09 National Quarantine across Italy ● Mar 13 WHO declares Europe centre of Pandemic ● Mar 17 Coronavirus reported in all 50 US states ● Mar 23 Lockdown of 1.3B citizens in India ● Mar 28 10M new unemployment applications in US © 2020 Antavo. Reproduction Prohibited.
  • 5. A NEW CUSTOMER REALITY Economic Uncertainty, More Time at Home, Worries about Family & Friends “HOME HUB” ● E-COMMERCE ● CONTACTLESS ● ENTERTAINMENT ● VIRTUAL FRIENDS “CRISIS SPEND” ● FOOD ESSENTIALS ● FUNCTIONAL ● EMOTIONAL ● INFLUENCED “CARE & SHARE” ● DONATIONS ● VOLUNTEERING ● COMMUNITY ● HEALTHCARE © 2020 Antavo. Reproduction Prohibited.
  • 6. SERVE, DON’T SELL Empathy has become a new norm in marketing The Good, The Bad & The Ugly Brands that have reacted well were able to gain customer praise, awareness and ultimately improved brand equity, whereas other brands were exposed to severe customer backlash for failures to protect and care for customers and employees. Encourage customers to stay safe & give support Prioritised activity over employees’ safety Not easing cancellation refund process © 2020 Antavo. Reproduction Prohibited.
  • 7. II. Brands Best Practice © 2020 Antavo. Reproduction Prohibited.
  • 8. © 2020 Antavo. Reproduction Prohibited. Delivery made available from HK Extended returns from 30 to 60 days Free shipping on every order IMMEDIATE ECOMM ACTIONS Make Shopping Worthwhile For Customers Customer Satisfaction is Still a Priority Despite a more reserved spending attitude, people still seek to buy products online to keep their minds off their problems. However, more time at hand means more time to search for the most attractive offer. The best course of action is to introduce features that make the journey convenient, quick and beneficial. #E-COMMERCE #EMOTIONAL #INFLUENCED#CONTACTLESS HOME HUB CRISIS SPEND CARE & SHARE
  • 9. LOYALTY PROGRAM ADJUSTMENTS Loosen Expirations / Adjust Redemption Don’t penalize your best customers Some existing loyalty program mechanics no longer make sense in the current situation and brands have reacted proactively: Services are severely disrupted (e.g. hotels & airlines) • Removing expiration of points & tiers • Relaxing rebooking conditions Services are available, but non-essential (e-Commerce) • Reducing minimum spend for redemption • Lowering rewards thresholds #ECOMMERCE#FUNCTIONAL #CONTACTLESS HOME HUB CRISIS SPEND CARE & SHARE © 2020 Antavo. Reproduction Prohibited.
  • 10. © 2020 Antavo. Reproduction Prohibited. STAY CLOSE TO CUSTOMERS Create an Online Community Area Keep Up the Spirit During the Crisis To fight isolation and foster virtual friendships, UK beer company BrewDog turned all their 48 bars into virtual pubs. Patrons connect through Zoom and have a laugh together — growing fonder of BrewDog in the process. Virtual pub exclusive features: • News from the brand • Raise a glass with the founders • Homebrewing tutorials • Fun quizzes & games • Live music stream • Cook-along sessions All virtual pub events are communicated via social. #VIRTUAL FRIENDS#CONTACTLESS #ENTERTAINMENT #EMOTIONAL #INFLUENCED HOME HUB CRISIS SPEND CARE & SHARE
  • 11. © 2020 Antavo. Reproduction Prohibited. #CONTACTLESS #DONATION #COMMUNITY CONTRIBUTE TO HEALTH EFFORTS Organize Donations, Create Content Encourage Cooperation During the crisis, even the smallest gesture helps. Motivate customers to contribute to the humanitarian efforts and improve their life. Under Armour’s Healthy at home challenge encourages to keep a healthy lifestyle for a good cause. Instead of unlocking prizes, recorded workouts will contribute to donations to Good Sports, an organization providing sports equipment to kids in need. The sportswear brand is going to organize donations up to 1 million dollars. #HEALTHCARE HOME HUB CRISIS SPEND CARE & SHARE
  • 12. Let Them See Your Brand Under a New Light Sustainability and social responsibility has been high on customer’s agenda before, but the Coronavirus made them even more aware. Instead of closing down, many businesses decided to regroup their resources to support hospitals or public workers. Such activities strengthen the brand image and generate positive word-of-mouth. Produces face masks & shields Transport healthcare workers for free Produces hand sanitizer #VOLUNTEERING #HEALTHCARE#COMMUNITY HOME HUB CRISIS SPEND CARE & SHARE ACT FOR THE COMMON GOOD Visible Efforts to Support Health Care © 2020 Antavo. Reproduction Prohibited.
  • 13. © 2020 Antavo. Reproduction Prohibited. #FUNCTIONAL#FOOD ESSENTIALS KEEP CUSTOMERS & EMPLOYEES SAFE Prevent The Pandemic From Spreading Further Go the Extra Mile, Protect Those Who Need It Other than the standard safety proceedings, go one step beyond and show customers that you take good care of them, as well as your employees. The Community Food Market West Oakland limits the amount of essential goods one customer can purchase for the sake of fairness, as well as increased daily sanitizing of surfaces in the store and is now offering sanitizing wipes. It also launched multiple fundraisings to offer a better CalFresh benefit program for the people in need - those with lower income (increasing their usual 10% discount up to 50%) & the elderly (offering free food delivery). HOME HUB CRISIS SPEND CARE & SHARE #DONATIONS #HEALTHCARE
  • 14. #HEALTHCARE#COMMUNITY#ENTERTAINMENT HOME HUB CRISIS SPEND CARE & SHARE CREATE INFOTAINMENT Reach Member On Their Favorite Channels Leverage Creativity, Take Advantage of Virality Many people feel depressed, but you need to be present on their favorite channels to bring them a little fun. Cosmetics brand E.l.f. went viral on TikTok with a remix of a trending song, changing the lyrics to call attention to the importance of personal hygiene and self-distancing. E.l.f. not only broadcasted its message to their TikTok fans, but also convinced them to be their number one choice when it comes to purchasing cleaning products. © 2020 Antavo. Reproduction Prohibited.
  • 15. © 2020 Antavo. Reproduction Prohibited. #EMOTIONAL#INFLUENCED HOME HUB CRISIS SPEND CARE & SHARE 24/7 AVAILABILITY IS A MUST-HAVE Adapt And Test Ways to Stay Relevant Run Your Business More Flexibly Customers might be less keen to order non-essential goods, but if they decide to do so, they wish to have it as soon as possible. Starbucks used the situation as an opportunity to expand its to-go service, partnering with Uber Eats to deliver coffee up to 48 states in the US. Starbucks has been always at the forefront of innovation, and now leverages the fact that more people are ordering coffee than ever. With this, the company is able to test the waters and learn about this segment besides evolving its digital platform. #CONTACTLESS
  • 16. #EMOTIONAL#INFLUENCED HOME HUB NEW CUSTOMER EXPERIENCES For Safety, Convenience & Fun Service Offerings with Accelerated Rollout Contactless Lieferando (food) & DHL (goods) implemented contactless delivery options in Germany. In Shenzen, car rental companies offered free rental days to avoid public transport Online Services Banks & Fashion retailers have moved customer advice services to online chat rooms, engaging employees & customers alike Helpful Content Sarah Flint uses staff to provide useful advice to customers that is not linked to classic offerings, deepening the emotional bond to the brand #COMMUNITY CRISIS SPEND CARE & SHARE #CONTACTLESS© 2020 Antavo. Reproduction Prohibited.
  • 17. III. What does it mean for you? © 2020 Antavo. Reproduction Prohibited.
  • 18. New content & services Repeat engagement actions Collect customer information Lay the groundworks today for a future loyalty initiative ● Adjust to customer expectations & needs ● Be empathetic and proactive ● Involve your staff & personnel ● Challenges & badges can serve as easy entry-point ● Try out subscription to services for preferred access ● Encourage customer dialogue ● Prioritise customer registration and Single Customer View ● Store the data of any online engagement activity ● Run dedicated tests and surveys Positive customer experience Brand connection - MVP Head start for loyalty design WHAT DOES IT MEAN FOR YOU... If You Don’t Have a Loyalty Program © 2020 Antavo. Reproduction Prohibited.
  • 19. Remove sources of friction Adjust incentives & rewards Prepare for the future Follow a simple 3-step approach to drive continuous customer satisfaction & loyalty ● Remove or Postpone any expirations of points or tiers ● Lower redemption thresholds to allow points usage ● Be proactive and generous ● Incentivise usage of new service offerings ● Create new altruistic rewards (e.g. points donation) ● Develop fun new brand engagement elements ● Special rewards for returning customers ● Accelerate migration to digital & omnichannel ● Test & Learn about customer preferences & attitudes Remove sources of dissatisfaction Support new business models Come out stronger WHAT DOES IT MEAN FOR YOU... If You Have a Loyalty Program © 2020 Antavo. Reproduction Prohibited.
  • 20. WHAT DOES IT MEAN FOR YOU... If Your Ecommerce Business is Booming Your key challenge will be to turn today’s guests into tomorrow’s loyal customers - prevent their return to pre-COVID shopping patterns. In China, for example the share of customers 45+ increased by 27% between Jan - Feb 2020 (QuestMobile) ● Act now - every new customer is an opportunity to build a relationship ● Prioritise defensive measures - status benefits & instant rewards ● Test & Learn - unprecedented volumes allow for more & quicker testing ● Don’t exploit the situation commercially - focus on long-term prices, margins, profit © 2020 Antavo. Reproduction Prohibited.
  • 21. Any disruption to the norm is a trigger for consumers to re-evaluate their shopping decisions, switch suppliers and build new loyalty. Those who act and adapt quickly are going to come out ahead. CUSTOMER EXPERIENCE IS KEY Learnings from the last recession in 2007 - 09 Source: Forrester Customer Experience Performance Index (2007-09) McKinsey Marketing & Sales Insights April 2020 © 2020 Antavo. Reproduction Prohibited.
  • 22. Interested in learning more? giulia.filoso@antavo.com www.antavo.com Thank you!