from customer loyalty to brand advocacy

Customer Loyalty 2013 Nicholas Kontopoulos | Senior Global Marketing Director 26th of March, 2013 | Singapore

From Customer Loyalty to Brand Advocacy

A little bit more about me…

@Nicholask71

and what makes me tick.

@Nicholask71

@Nicholask71

@Nicholask71

@Nicholask71

Passionate about my customers

My objective today is to…

Fire-up your brain juices

By  taking  a  look  at  the  imapct  that  the  age  of  the  “Digital  Customer”  is  having  on  your  

businesses  

The Impact that the

Digital Customer

Enterprise is having on the

@Nicholask71

A man without a smiling face must not open a shop.

Chinese Proverb

“

Raise  your  hand  of  if  ever  bought  goods  or  services  from  an  online  retailer  

Amazon,  Zappos,  HSBC,  Sachs  

WHAT’S THE POINT?

© SAP AG 2009. All rights reserved. / Page 18 Internal

Customer Experience leaders OUTPERFORM the laggards

+22% -46%

Source: Forrester Research 2012

Over a recent five-year period during which the S&P 500 was flat, a stock portfolio of customer experience leaders grew 22%. During this time, Forrester found that those companies who performed poorest in the Customer Experience Index also performed poorest in terms of stock performance.

MOBILITY RICH CONTENT SOCIAL APPS

19

We live in a world of ‘DIGITAL IMMERSION’

MORE CHOICES

LESS RESOURCES

DECISION MAKING

EVOLVING FAST

Source: http://www.youtube.com/watch?v=W-Yf1u3xD_I&feature=share&list=PL289DF6F734E11CD2

The Good Old Days

TOO HARD TO MOVE

NO ALTERNATIVE BETTER THE DEVIL

GOOD EXPERIENCE

The  Problem  

Customer  Loyalty  is  Dead  –  Image  of  loyalty  cards  Text  “As  we  know  it”  

AS WE KNOW IT

Are you more loyal to your brands than 10 years ago?

The  Problem  

RelaJonship  between  buyers  and  sellers  have  changed  

Relationship CHANGED

DIGITALLY EMPOWERED CUSTOMERS

Customers are DRIVING the conversation

Search Information PURCHASE

Customers are looking to be RESCUED

The COST of customer acquisition versus customer retention could reach as high as 700%

Source: ‘The Loyalty Effect’ by Frederick Reichheldof Bain & Co.

A 5% increase in customer retention results in a 25% to 100% increase in PROFITABILITY

Source: ‘The Loyalty Effect’ by Frederick Reichheldof Bain & Co.

RISING customer EXPECTATIONS reflect a higher degree of likelihood to SWITCH brands

HOSTAGE waiting to escape

The simplest customer service frustration question of all? “Why isn’t this as important to you as it is to me?

Seth Godin

“

The  SoluJon  

Customer  Experience!!!  

Give the customers a GREAT EXPERIENCE

Customer Experience “The customer's perceptions and related feelings caused by the one-off and cumulative effect of interactions with a

supplier's employees, systems, channels or products”

Source:  Gartner    

“Or, the aggregated memories of every touch a customer has with your company”

Customer Experience Management “The practice of designing and reacting to customer

interactions to meet or exceed customer expectations to increase customer satisfaction, loyalty and advocacy”

Source: Gartner

“Or, delivering a consistent customer experience across the entire enterprise”

The  SoluJon  

Key  ingredients  –  Image  from  file  

INGREDIENTS

Where to start?

7 Steps to get started with CEM

Source: 1to1 Media 7 Steps to Get Started With Customer Experience

§  Build a cross-functional work team §  Define key elements of a strategy §  Map the customer journey §  Consolidate customer data collection/VoC §  Create a governance mechanism §  Map the customer experience ecosystem §  Select Projects that build momentum

CRM  is  not  about  soQware…  

CRM  is  not  about  soQware…  

…it  is  an  

ideology

It is about  connecting  people…

Employees Customers

it  is  about  delighting

your customers  

CUSTOMER LOYALTY MANAGEMENT

?

Integrate loyalty thinking across the consumer experience. Loyalty isn't a program or a function in your org chart. It the combination of your customer-facing efforts.

Mike Linton

“

ALIGN program to CEM vision

Companies have built OUTPOSTS

Remove SILOS Interaction History

Order Information

Billing

ecommerce

Mobile

OMNICHANNEL strategy is required

STRUCTURED approach

View of the PAST

CAN MARKETING LIFT STOCK PRICES?

5 years of data was crunched for two Fortune 1,000 companies (B2B & B2C).

9 month field experiment using specific marketing strategies based on the “customer lifetime value” of each customer or customer segment.

90% of both companies profits were being generated by 20% of their clients.

Used analytics to determine “Customer lifetime value”

B2B company stock increased 33% nine months after experiment. Top 3 competitors stock increased 12%.

B2C company stock increased 58% nine months after experiment. The top 3 competitors stock increased 15%.

Social Media Data at your finger tips

Segmentation at Speed of thought

WHERE DO YOU START?

If you keep on doing what you've always done, you'll keep on getting what you've always got.

W L Bateman

“

THINK BIG

START SMALL

DIFFERENT PERSPECTIVE

INTEGRATE CEM, CRM and

Loyalty Management

MONTREAL

Claire

Phillip

The STM are Montreal's transit provider - moving more than 1.2M passengers every day day through 250 bus lines and 68 subway stations in the Montreal area.

2020/40%

Three million cards in circulation, one-third of which are used on a daily basis.

“We want to untap the potential of those Opus cards and the potential of this eco-system of customers that take public transit every day.”

Pierre Bourbonniere, Director of Marketing

“

We wanted to reward our customers on the spot, we wanted to be able to surprise and create excitement for our customers, and we wanted to generate loyalty to the STM.

Pierre Bourbonniere, Director of Marketing

“

STM customers will provide information about their interests and preferences for

activities

Retention program for customers

Click here for Story

Real-Time Insight

Real-Time Interactions

Real-Time Execution

You’ve got to start with the customer experience and work back toward the technology.”

Steve Jobs

“

The  Problem  

Customer  Loyalty  is  Dead  –  Image  of  loyalty  cards  Text  “As  we  know  it”  

More than just a

Points & Cards SYSTEMS

Do you drive value at each touch point?

Do you understand your customers?

Are your customers hostages or fanatical brand advocates?

I have the power to drive

transformational change

Customer Journey

CEM Vision

Core team

Platforms Brand Advocates

Do what you do so well that they will want to see it again and bring their friends.

Walt Disney

“

©  2011 SAP AG. All rights reserved. 85 Public

VISIT our booth

©  2011 SAP AG. All rights reserved. 86 Public

Feel free in connecting with me @

#nicholask71

Nicholas.kontopoulos@sap.com

http://cn.linkedin.com/in/nicholaskontopoulos

Thank You!

©  2011 SAP AG. All rights reserved. 87 Public

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.

IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iSeries, pSeries, xSeries, zSeries, eServer, z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation. Linux is the registered trademark of Linus Torvalds in the U.S. and other countries. Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries.

Oracle and Java are registered trademarks of Oracle and/or its affiliates.

UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc.

HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology.

© 2011 SAP AG. All rights reserved. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.

Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company.

Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP company.

All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG.