Delivering
dynamic customer
engagement

Contents page
1. Mobile prevails 4
2. Customer experience in 6
all areas
3. Marketing to Millennials 8
4. Data as currency 10
5. Evolution of loyalty 12
programmes
6. In summary 15

The always-on customer is constantly
being presented with more and more
channels, methods and technologies to
interact with brands and their journey
is becoming less linear by the day.
For everyone involved in customer engagement, it’s becoming harder
to interpret the trends that are here to stay and to decipher which are
just passing fads.
To help you conquer the complex customer battleground, we’ve put
together the top five areas of customer engagement that we think you
should be focusing on this year; from mobile engagement through to
Millennials and the changing face of loyalty programmes.
3
Customer
engagement
has changed

Mobile prevails
1
In the UK, 63% adults own a smartphone1
and more than 50% of the UK’s
ecommerce traffic comes from mobile.2
This is where we manage our digital
lives – from communication and social networking, to lifestyle management,
media playback, shopping, travel, payments and productivity.

5
Mobile will continue
to grow as a disruptor
at each stage of the
customer journey.
For example, let’s think about research. A
customer might browse your products, read
reviews, check stock levels, locate your nearest
branch, search for discount vouchers, and
compare you against competitors. This could
happen at any time, anywhere, and in any
order; from the comfort of their sofa to the train
to work, and most significantly, ‘showrooming’
whilst in your store – and what they find will
most likely affect their purchase decision.
Regardless of where they are on their journey,
what customers want most is a streamlined,
contextual experience to either find the
information they need or to assist in their
purchase. If they don’t get that, chances are
they will move on to your competitors.
Making communications
effortless
A new but emerging trend is for
brands to interact with consumers
via messaging apps, something
which is already commonplace in the
Asian markets.
The recent launch of Facebook’s
‘Business on Messenger’ allows
brands to send personalised order
updatedetails,deliveryandcustomer
service information to customers
through the Facebook Messenger
app. Whilst this is currently only
available to selected US businesses,
it is expected to be rolled out across
the board. To us, this is common sense
and gives customers a convenient
place to store all of their transactional
information from multiple brands.
The digital wallet
In2015wesawthemassadoptionofcontactless
technologies through enabled credit and debit
cards, followed by Apple Pay; all of which met
with little resistance from consumers.
Any smartphone enabled with NFC technology
(most major smartphones) is a gateway
for on-premise customer engagement and
transactions, using much of the infrastructure
already employed for contactless and Apple
Pay technology. Loyalty cards, discount
coupons, special offers, and payment methods
can all be contained within the customers’
smartphone which can then simply be read by
a till point acceptance device to link payments
and loyalty activity directly to the customer.
Not only is this a beautifully simple experience for
the customer, but NFC offers limitless potential for
customer loyalty and data collection - and most
importantly, all in real-time.
1
Source: Ofcom 2
Source: Comscore

Customer
experience
in all areas
2

7
End of the online/
offline divide
The lines between online and offline are
becoming increasingly blurred. As we
mentioned in Section 1, many customers
shop with their mobile phone in hand and
brands can act on this by sending timely
and contextual communications, e.g.
personalised offers via iBeacons to drive
on-premise sales.
Bricks and mortar stores are adopting
digital technologies such as mobile
payment, interactive kiosks and virtual
fitting rooms, and are equipping staff with
iPads to provide more efficient service
to create an engaging and increasingly
bespoke experience.
Personalisation
Customers expect to be treated as individuals,
and personalisation extends far beyond online
experiences, with new technologies empowering
offline engagement. For example, Offer
Moments uses iBeacons and an app to create
personalised billboards on digital screens as
well as on the customer’s smartphone, showing
them relevant offers for nearby retailers.
The data you collect on your customers
powers you to understand behaviours,
preferences and trends. Develop personalised
experiences from the types and frequency
of the communications you send, through to
delivering relevant offers and tailored product
recommendations – but this needs to be done
right or you risk disengaging your customers.
Gone are the days of losing a receipt, with retailers such as Dorothy
Perkins offering email receipts and John Lewis’ ‘Kitchen Drawer’
which uploads purchase details to the customer’s online account
whenever the customer uses their MyJohnLewis loyalty card or app.
Major customer-centric
restructure
According to research by Deloitte, customer
centric businesses are 60% more profitable
than those who don’t focus on the customer.
Our research3
found that customer data
and insight is not being shared and applied
throughout the whole business, resulting
in decisions being made from different
perspectives, with conflicting priorities.
Consumers don’t see a difference between
online and offline and businesses need to
evolve to reflect this. As a first priority the silos
in the marketing department need to be broken
down because collaboration is key – digital,
offline, IT and eCommerce teams need to come
together to meet customer expectations.
Becoming customer-centric may ultimately
require a major business restructure. From
finance to customer services, it is crucial that a
culture of customer-centricity is maintained to
ensure that you are an agile, customer-focused
and forward-thinking business that can
withstand the changing consumer landscape
for years to come.
3
Source: Ikano: The future of customer engagement & data driven marketing

Marketing to
Millennials
3

9
What are the
opportunities for brands?
Millennials are used to filtering out the ads and
marketing messages that aren’t relevant to their
needs, or don’t resonate with their beliefs or
values. They don’t want to be sold to, and expect
two-way conversations with the brands they love.
To keep up, brands need to evolve with
technologies and the changing customer
landscape, so it’s important to ensure that your
business has a structure of agility - you need to
be ready and positioned to adapt.
Millennials want their brand experience to be
fun and social. Gamification is a current trend
across markets and audiences, and whilst it
keeps customers entertained and engaged,
for brands it keeps customers on their app or
online longer and can provide deeper insight
into customer behaviours and needs. There
are diverse opportunities for brands to use
gamification, from integration into loyalty
programmes to standalone games or apps
driven by customer insight.
Winning Millennial’s
loyalty
Millennials are no stranger to shopping around.
They are open to new brands, products and
servicesandtheyaren’tafraidtoswitch.Seeking
out the best price and service is a natural part
of their shopping experience, with nearly 3/4 of
them spending time online researching items
before they purchase.5
Despite this, Millennials
can be incredibly loyal, and 80% of them keep
coming back to the brands/products they like.6
Millennials know the value of not only their
money, but also of their data, and they expect
to be treated as an individual because you have
enough information on them to do so. Whilst they
are open to being engaged and connecting
with the brands they love, they expect to receive
something of value in return and want to earn
rewards for more than just purchasing.
Key to keeping Millennials engaged in a loyalty
programme is offering them variety – take a
look at Section 5 for more information. Keep
your loyalty proposition fresh and interesting to
keep them coming back.
Millennials have networks of social followers
and will quite happily share your content with
them or write reviews, but they’re wise to the
power of Word of Mouth. To maintain this
culture of sharing, reward them for it – it could
be as simple as offering special discounts or
exclusive access for sharing content, and also
make sure that you resolve any issues before
they become viral.
4
Source: Comscore 5
Source: Intelligence Group 6
Source: Edelman 7
Source: Marketingcharts
Who are they?
Between the 1980s and early 2000s,
Millennials are the tech generation -
they are used to technological change,
understand it and are quick to adapt and
embrace it. They are savvy shoppers, but
that doesn’t mean they are of little value to
brands – they spend $170 billion a year.4
Get the customer experience right, and your Millennials could be
loyal for life; with 1/4 believing that they and others their age are
more loyal to their favourite brands than their parents are to theirs.7

4
Data as currency
Deloitte said that the global volume of digital data is expected to multiply 40 times or
more by 2020. Much of this will be personal data such as location history, activities, travel,
purchasing, social media activity etc. Imagine how this could shape your customer insight
to build a highly accurate picture? Well, it’s not just brands that are wise to this. Consumers
are increasingly becoming aware of the value of their data and are now viewing it as a
currency to be exchanged for something in return.

11
Digital trust
Digital trust is a key element in the data currency.
The notorious data hacking incidents of 2015 such
as TalkTalk and Ashley Madison have created an
air of caution, so brands need to remember that
security, privacy and control of data will always
be important to consumers. In entrusting you with
their data, they expect you to treat it with the
value it deserves. Make it clear what you intend
to do with their information and clearly ask for
their permission, giving them the opportunity to
change their preferences and opt-in or out, and
ensure that you are complying with legislation.
This will build trust and loyalty and the customer
will begin to feel comfortable with sharing
more of their data with you, strengthening your
relationship and your ability to serve them.
Datacoup bills itself as the “first
personal data marketplace”
which can “help you reclaim and
unlock the value of your personal
data,” where users can earn cash
for providing their anonomysed
data. Whilst this is a new and
pioneering development in the
industry, on an individual brand
level customers still expect a
value exchange for granting you
access to their safely guarded
personal data.

5
Evolution
of loyalty
programmes
Despite what some may say, customer loyalty is very much alive
and kicking. However, 93% of customer engagement professionals
believe that it needs to change and evolve in response to
increasingly sophisticated customer expectations around
personalisation and omnichannel customer experience.8

13
Customer expectations
Today, building customer loyalty is less about
the psychology of collecting points, but is
about engaging with customers on their terms
consistently across all channels to deliver an
excellent customer experience.
In the past simply rewarding customers with
points could secure their loyalty, but today it is
far more complex. Whilst points remain a really
important part of an overall loyalty programme,
in isolation they are no longer enough to secure
high level customer retention.
Using data you can identify your most loyal
customers and reward them accordingly, but
ensure that the reward absolutely reflects
their commitment and affinity to your brand.
Keep your best customers happy and they will
repay you over and over – not only with their
continued custom, but by championing your
brand amongst their own circles and further
afield, both on and off line.
Changing rewards
Customers no longer just interact with your
brand when they make a purchase, and
loyalty programmes should reflect the overall
customer experience. Social media interactions,
gamification, app downloads and check-ins are
all areas which can and should be rewarded to
keep customers engaged.
Our survey identified a key trend of moving
from incentives to service.9
Whilst incentivising
purchases are definitely core and essential
to many loyalty programmes, customers are
beginning to expect more than this. Retailers such
as Marks and Spencer, John Lewis, Waitrose and
Paperchase demonstrate the movement towards
mixing up hard and soft reward propositions and
putting the customer more in control.
Consider engaging customers through the
buildingupofpointsinordertoreceivebetterand
more relevant rewards, putting personalisation
at the centre of your programme. This lets you
get to know your customers better, and in return
the customer gets a reward they actually want
and will most likely use, driving them back to you
time and again.
Combine the feeling of reward that
collecting points brings, with the
support of softer benefits such as
exclusive experiences or free gifts
to provide variety for the customer
and keep them interested.
8 & 9
Source: Ikano: The future of customer engagement & data driven marketing

14
The 21st century loyalty programme must
be omnichannel and seamless. Mobile
technology presents the opportunity
to combine loyalty programmes, offer
redemption and payment. Whilst this will take
time and investment, there are areas where
you can act immediately, such as reinforcing
your programme at every level, both online
and offline. If customers aren’t reminded at
every touchpoint, any programme, no matter
how well-constructed or generous, is unlikely
to succeed.
Data driven
Some of our partners’ loyalty programmes
have up to an 80% penetration rate! Imagine
the impact on your business of being able
to recognise and understand 80% of your
customers transactional behaviors? Effective
loyalty programmes generate high levels of
customer data, which can be used in your
marketingeffortstotailorandtargetcampaigns
towards individual customer groups, building
relationships and engagement and driving
behaviours. The beauty of this is that the results
are completely measurable against your ROI.
Embrace technology to grow engagement
Remember that poorly used technology
could result in disengagement not only
from communications, but from your brand
altogether. Your investment in technology
needs to match your customers - how do they
currently interact with you? What would make
their lives easier, and how does it deliver
experiences which will increase their loyalty?

Regardless of your brand,
market or audience, the
customer should be central to
your engagement strategy.
Consistently deliver your
customers with the experiences
they want via the most
appropriate channels, and
they’ll keep coming back time
and again.
In Summary
• Personalisation is a necessity to build
relationships and engagement through
contextual targeting and brand experiences.
• Customers are becoming increasingly savvy
to the value of their data and expect to be
rewarded for it.
• Mobile is leading all areas of the customer
journey, blurring the lines between online
and offline.
• Loyalty programmes must evolve to reflect the
entire customer experience, and the changing
expectations and behaviours of consumers.

And finally, for support,
advice and best practice,
just give us a call!

www.ikano.co.uk
@ikano_UK
Ikano Bank is awesome with data,
but even better at relationships.
And that, ultimately, is what
turns customer loyalty into
a business’s success.
? Do you want to build a new loyalty or
customer engagement programme?
? Do you want to improve an existing one?
? Or, do you simply want to turn customer
data into actionable insight?
No matter what stage you are at with your customer
engagement we have the intelligent, intuitive insight to
help you achieve ROI and drive incremental revenue:
Wherever you are with customer
engagement, we have the
intelligent, intuitive insight to help
you achieve greater ROI and
drive incremental revenue.
For more information please contact:
Barry Smith
barry.smith@ikano.net
07551 671 825
0115 850 3644