4 d loyalty framework
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4D Loyalty FrameworkLoyalty is not monolithic
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True LoyaltyOptimise the experience
Cult LoyaltyOptimise the
tribe
Inertia Loyalty
Optimise the barrier to exit
Mercenary Loyalty
Optimise the incentive
Passive Active
Relational
Transactional
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Brand works to develop customer intimacy
Brand experience is extremely important
Brand focus is on making the entire experience engaging
Brand engagement;• Refined member life cycle• Customer segmentation• Data driven communication• Meaningful personalisation• Surprise-and-Delight users
True LoyaltyOptimise the experience
“My connection to the brand goes beyond the offer”
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The strongest expression of customer and brand relationship
Connection is deeper
Members view the brand as an extension of their self-concepts
Members feel a strong community sentiment amongst each other
Members reinforce each other’s brand engagement
Cult LoyaltyOptimise the
tribe
“The brand reflects my
personal identity”
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Works on reinforcing the barrier to exit
People feel like the effort to switch brands is too demanding
Stickiness is engendered through subscriptions and contracts
The weakness with this strategy is that the customer is merely awaiting a switching opportunity
“I’m only here because it’s too
much trouble going elsewhere”
Inertia Loyalty
Optimise the barrier to exit
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Primarily relies on activating the drive to acquire
Consumers are rewarded with money for favoured engagement behaviours
Limited by;• A focus on transaction, not relationship building• Activates our basic drives to acquire and defend• Relies on habitual behaviours, over considered choices“I’m loyal
because I get paid to be”
Mercenary Loyalty
Optimise the incentive
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Which is the best for your brand?
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Multi-Loyalty Strategy
True LoyaltyOptimise the experience
Mercenary Loyalty
Optimise the incentive
Cult LoyaltyOptimise the
tribe
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Love In The Time Of LoyaltySunday Times: Rewards & Loyalty SA
August 2016
- 4D Loyalty Framework
Reference
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The 4D Loyalty FrameworkBy Barry Kirk & Mary Beth McEuen
Maritz Motivation Solutions & The Maritz Institute
- 4D Loyalty Framework
Reference
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Twitter: @DesignKage- 4D Loyalty Framework