gsummit sf 2014 - beyond the transaction: loyalty's next act is gamification by bill hanifin
TRANSCRIPT
© Hanifin Loyalty 2014
Beyond the transactionCould Loyalty’s next act be gamification?
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Are you a one percenter?
© Hanifin Loyalty 2014 GSummit 2014 Photo: Andrew Shaylor
© Hanifin Loyalty 2014 GSummit 2014
© Hanifin Loyalty 2014
Outlier
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Anomaly
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You?
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“Loyalty cards are usually abad business strategy”
Source: Slate.com
“They’re either a creepy way to monitor
and exploit your habits”“Or a desperate gambit by weak retailers
to distract you from their own shortcomings.”
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But do you even know what Loyalty is?
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Is this it?
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Emotional loyalty is powerful
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Emotional loyalty overcomes just about any
obstacle
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What’s your worldview of Loyalty Marketing?
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Rewards programs typically feature an imbalance between reward and recognition
Data Driven Customer Marketing
Direct Marketing
Campaigns
Loyalty Marketing
Rewards Program
Loyalty Program
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Realize it’s a customer strategy that you need,not necessarily a loyalty program.
Data Driven Customer Marketing
Loyalty Marketing
Loyalty Program
© Hanifin Loyalty 2014 Source: 2014 Brand Keys Customer Loyalty Engagement Index
Brands with the highest loyalty ratings employ tailored customer loyalty strategies
They wouldn’t do it if it didn’t work
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We serve distracted consumers with high expectations & shrinking attention spans
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Contextual Loyalty has behavioral science in its DNA
Blend knowledge of psychology and human behavior to create more
flexible value propositions
Connect dots & deliver information and value beyond the purchase
transaction
Reward and recognition newly defined by
intrinsic and extrinsic motivation
Respond to mobility,spark engagement in proximity to purchase
decision or “by request”
Contextual Loyalty incorporates principles of gamificationto deliver value with high availability and liquidity
Rewards Value
ProximityLifecycle
Customers as
Humans
© Hanifin Loyalty 2014
Brands that are winning
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Fulfilling brand promises through contextual relationships
Membership fee creates investment & commitment,
consolidates wallet share
New Perks program promises “the more you enjoy, the more
we’ll reward you in unexpected ways”
Surprise and delight strategy avoids reward
transparency and provides flexibility
Non-currency program with collection of tools designed to customize and simplify home
improvement
Currency based program with fitness centric community delivers on brand promise
© Hanifin Loyalty 2014
How do we make
loyalty programs
contextual?
We need a new vocabulary
Replace first gen words target, inform, transact, reward, recognize
With
▪ Engage, encourage, challenge▪ Tease, surprise, delight▪ Join, journey, achieve▪ Honor, respect, trust
GSummit 2014
© Hanifin Loyalty 2014 GSummit 2014
See the connection between Loyalty Marketing & Gamification?
© Hanifin Loyalty 2014
Thanks!
Bill HanifinManaging Directorwww.hanifinloyalty.com
A unique source of independent & unbiased insights oncustomer loyalty & data-driven marketingwww.LoyaltyTruth.com
GSummit 2014