silverpop: taking loyalty beyond the discount

Taking Loyalty Beyond The DiscountDave Walters, Product Evangelist@_DaveWalters

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So Who is This Dude?Twenty-Year Digital

Marketer

Relationship Marketing Practice Lead

Corporate + Agency

COO @ Loyalty Startup

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Who is Silverpop?

Silverpop is the Unified Digital Marketing

Platform

that delivers superior overall

“return on relationship” powered by the deepest

insight into the way customers behave.

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4,000+ Brands and 15,000 MarketersEnergy & Utilities

Media Business Services

Financial Services

Travel & Hospitality

HardwareFood & Beverage

Non-Profit

Retail

Entertainment

Software

Education

Behavioral Marketing

Real-time, cross-channel, insanely relevant campaigns to one person at a time automatically driven by analytics of their actions, preferences

and profiles.

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The Wild West of Loyalty Marketing

$50 for 500

~$100/mo./location

$3-5MM/yr.

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Why Do Loyalty Programs Exist?• They created real choice modifiers and drove strong

add-on revenues in specific industries, like travel and retail– Yep, he just used the past tense :: <CREATED>

• More market competition drove increasing price and share-of-spend pressures– Sure, the rise of analytics weenies drove new dynamics

• Buyers respond positively to more engaging relationships– Newsflash, we’re social beings who like being recognized

• Marketing programs have their own momentum– Once proven, it’s hard to kill a big fish

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When They’re Great

Commoditized Product

High SKU-Level Margins

MDF Funds

Repeatable Purchase Cycle

Recurring Customers

Data-Driven Marketers

Steady-State Marketing Budget

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When They’re Terrible

Complex Product Offering

Price-Satisfied Customers

Few Fraud Controls

Nothing is ‘Learned’

No In-Store Training

Commingled With Other Brands

Just Free Stuff

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“A completely different mindset is required if any semblance of a loyalty program is going to stick to today’s 20-year-old, who is the prime earner

of the next 20 years. Online reputation and real-life experiences will trump a 15% coupon any

day of the week and twice on Sundays.”Me, 2010

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Six New Tactics Beyond Discounts

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Open Your Social Eyes• Better ‘appreciation dynamic’

• It’s real-time, more personal, and is absolutely scalable

• Consider social advocacy on par with item purchases

• Use tools like Twitter Advanced Search or Radian6

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Reward Based on Affinity• Think beyond the item

being bought from you

• What resonates with the PERSON

• Gently test a wide range of hypotheses with partner offers

• And then there’s Prime…

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Go Deep on Mobile• Captain Obvious moment: your

users have smartphones

• Look closely at hard costs, and then spend that money build an app

• Keep the experience immediate, drive-to-web is bad here

• Remember non-digital high spenders

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Factor for Location• Of all the ‘behaviors’,

location is among the strongest predictors

• Keep a permission layer, but use the data to inform your programs

• Don’t miss the opportunity to socially thank visitors

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Score It Like a Lead• As long as we’re beyond the

transaction, go for it!

• B2B-stlye lead scoring applies to events beautifully

• Group your customers by tier and market to them differently

• Experiment aggressively

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An Open Architecture• The biggest challenge today

• Takes affinity-driven rewards to their logical conclusion

• Reduce costs *and* deepen your customer understandings

• Pick only your best friends and partners

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The Thank You Economy

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Questions?

Dave Walters dwalters@silverpop.com Twitter: @_DaveWalters

www.slideshare.net/silverpopTwitter: @SIlverpopwww.silverpop.com