The customer and the marketplace has changed. The customer loyalty strategies you need deploy have to change too. There are common mistakes that businesses make when implementing a customer loyalty programs that can have an significant impact on the success of the program. The three most common mistakes are outlined in this presentation By avoiding these three pitfalls, your business can leverage customer insight customer to increase profits, reduce churn, increase frequency of purchase, spend, and share of wallet. Who is Customer Insight Group, Inc.? Customer Insight Group is a leader in building brand loyalty for the world’s most influential and valuable brands. We help companies engage, keep and grow more profitable customer relationships. We leverage customer insight to deliver the right message to the right customer via the right channel at the right time. The bottom line is we focus your marketing dollars to get the biggest bang for your buck. The result? Long-term customer relationships and maximized margins. More Loyalty Marketing Resources Loyalty Blog: http://www.customerinsightgroup.com/loyaltyblog/ Loyalty eBooks: http://www.customerinsightgroup.com/white-papers Loyalty Workshops: http://www.customerinsightgroup.com/custom-loyalty-workshops Systematic New Loyalty Program Development: http://www.customerinsightgroup.com/systematic-new-loyalty-program Who is Customer Insight Group, Inc. Customer Insight Group, Inc. leads the way in the evolution of how companies engage their customers, positively motivate them and earn their long-term loyalty. Our extensive client work is testimony to our depth of knowledge and ability to apply strategic insight and solutions to a wide variety of business objectives. Our team’s client experience includes: NHFA, Thomasville Furniture, The Maxim Group Carpet Franchise, Ashro, A&P, The Bon Ton, Crate & Barrel, Dick’s Sporting Goods, Edwin Watts Golf, GE Consumer Finance, Monroe and Main, Swiss Colony, Midnight Velvet, MySwingle.com, The Great Indoors, G.H. Bass, Golf Galaxy, Helzberg Diamonds, HSBC, Kohl’s, La-z-boy Furniture Franchise, MCI, Payless ShoeSource, Pier 1 Imports, Petco, Proflowers.com, Regis University, Ruby Tuesday, S&K Menswear, Sierra Trading Post, Stein Mart, Tommy Hilfiger, Ulta, as well as various other leading companies.  

1. Does Loyalty Really Exist?

2. Website: www.customerinsightgroup.com
Phone: 303.422.9758
© Customer Insight Group

3. We define loyalty marketing:
Discipline of identifying and nurturing the yield
of best customers through a long-term,
reciprocity, value-added relationship.
Website: www.customerinsightgroup.com
Phone: 303.422.9758
© Customer Insight Group

4. What could a loyalty program do for your business?
Retain
Customers
Target
Marketing
Increase Spend
& Frequency
Build Brand
Loyalty
Build Customer
Relationship
Differentiate
vs.
Competition
Acquire New
Customers
Gain Customer
Insight
Increased
Revenue
Website: www.customerinsightgroup.com
Phone: 303.422.9758
© Customer Insight Group

5. Website: www.customerinsightgroup.com
Phone: 303.422.9758
Common Mistakes to Avoid
• Me to value proposition
• Not Investing in the members you have
• Treating all customers equal
3
© Customer Insight Group

6. Website: www.customerinsightgroup.com
Phone: 303.422.9758
• Create a value proposition that will differentiate you in the market place
• Use short-term “perks” to reward the behavior you want
• Consider the value of strategic alliances to add greater value to your program
MISTAKE: Me to Value Proposition
© Customer Insight Group

7. Website: www.customerinsightgroup.com
Phone: 303.422.9758
“When you overuse discounts, you actually encourage disloyalty because the
customers will come back only when you offer the best price.”
- Matt Griffin, Associate Editor of Catalog Success
Discount prices can back-fire because low-price shoppers
often do not become loyal, profitable customers.
© Customer Insight Group

8. • Customer Experiential Benefit Strategy is a customer-centric approach to
align and deliver value that is meaningful, timely and mutually beneficial
to the customer and ultimately the company as well.
– Initial participation and enrollment benefits
– Cumulative benefits
– Periodic benefits
– Instant benefits
• Mix of hard and soft service-related benefits
• Spend/earn rate, bonuses, capped/uncapped,
transferable points and rewards
• Flexibility for redemption, burn rate, channels
• Tiers and requalification
• Partners for earn/burn and special offers
Website: www.customerinsightgroup.com
Phone: 303.422.9758
: Deliver value the way the customer want it delivered.SOLUTION
© Customer Insight Group

9. Website: www.customerinsightgroup.com
Phone: 303.422.9758
• FIRST 90 DAYS CRITICAL to building customer relationship
• Create a new customer development communications plan
• Use social media to create organic word-of-mouth growth
MISTAKE: Not Investing in the Customers You Have
© Customer Insight Group

10. Website: www.customerinsightgroup.com
Phone: 303.422.9758
Value to the Customer
ValuetotheOrganization
Unqualified
Customer
Prospective
Customer
Advocate
Customer
Repeat
Customer
Proactively Manage Customer’s Lifecycle
© Customer Insight Group

11. Website: www.customerinsightgroup.com
Phone: 303.422.9758
• Create a value proposition that will differentiate you in the market place
• Use short-term “perks” to reward the behavior you want
• Consider the value of strategic alliances to add greater value to your program
MISTAKE : Treating All Customers Equal
© Customer Insight Group

12. Website: www.customerinsightgroup.com
Phone: 303.422.9758
Give them appreciation that non-loyalty-program members don’t
receive to make them feel valued.
To keep customers happy, treat them well:
Treat them as individuals.
Communicate.
© Customer Insight Group

13. Website: www.customerinsightgroup.com
Phone: 303.422.9758
54.2% Customers, 0% Purchases.
0% Margin & 0% Visits
27% Customers, 30% Purchases
22.3% Margin & 44% Visits
Inactive
3.3% Customers, 21.4% Purchases,
26.2% Margin & 11.6% Visits
4.1% Customers, 16.9% Purchases
19.2% Margin & 13.2% Visits
11.8% Customers, 31.4% Purchases
32.1% Margin & 31% VisitsOccasional
Frequent
Loyal
Infrequent
: Double Down on Profitable CustomersSOLUTION
© Customer Insight Group

14. Website: www.customerinsightgroup.com
Phone: 303.422.9758
Steps to Creating Successful Loyalty Program
1. Identify: Created a unified view of customers across all channels and programs
2. Differentiate: Identify most profitable and most growable customers
3. Customize: Act on what you’ve learned to tailor services, process, products and
messages (all customers are NOT equal)
4. Communicate: Leverage every customer touch point to create relevant and engaging
communications
5. Measure: Track and measure success at a customer level
6. Interact: Ask customers for feedback
6
© Customer Insight Group

15. Website: www.customerinsightgroup.com
Phone: 303.422.9758
You inspire loyalty, creating within them a reaction to your name that is so
positive it evolves into a strongly rooted sense of connection.
© Customer Insight Group

16. Customer Insight Group is a strategic marketing company that uses
customer information to help its clients engage in successful and
profitable long-term relationships with each and every customer.
Loyalty Marketing & Social Media Marketing Services:
• Strategy
• Design
• Implementation
• Program Management
• Program Refinement
Website: www.customerinsightgroup.com
Phone: 303.422.9758
About UsAbout Us
Customer Relationships – Engage. Keep. Grow.
© Customer Insight Group

17. Connect With UsConnect With Uswww.customerinsightgroup.com
linkedin.com/company/240235?trk=tyah
twitter.com/sallieburnett
facebook.com/customerinsightgroup
customerinsightgroup.com/rss-feed/
info@customerinsightgroup.com
Website: www.customerinsightgroup.com
Phone: 303.422.9758