WELCOME Digital Loyalty Extending your reach beyond the counter

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WELCOME

Digital Loyalty

– Extending your reach beyond the counter

Presented by

Mark Horwood-James

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DIGITAL LOYALTY

Welcome. We hope you enjoy your

day at the Beauty Expo Australia

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Introduction

The word loyalty

The digital world

Meet the brands

A little background on myself and The Gruden Group.

What does that word mean and why it is important?

What are consumers telling us about digital interactions and loyalty

Hear about our clients Starbucks, Red Rooster and Donut King.

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Hints, Tips, Q&A

A few do’s, a few don’ts. Please feel free to see me after with any Q&As.

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WHO

WE ARE

About me

The Gruden Group Introducing mobileDEN

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IN A SNAPSHOT

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ESTABLISHED IN 1995

60+

MULTI DISCIPLINARY EXPERTS

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OFFICE LOCATIONS WE ARE AN INNOVATIVE FULL SERVICE DIGITAL AGENCY WITH A DEDICATED PRODUCT ARM

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A FEW CLIENTS & PARTNERS

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WHAT DOES

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LOYALTY

What does loyalty mean? Many look

at the tactics and not the end goal

It has become the custom to identify any customer that purchases your

brand more than once as a ‘loyalist’.... My favourite (correct) definition of

brand loyalty came from the former CEO and chairman of Heinz who

once explained his idea of brand loyalty for his brand:

“A shopper goes into a supermarket looking for some beans. There’s no

Heinz. She comes out without any beans.”

Could it be any simpler?

Mark Ritson

An Associate Professor of Marketing. Published journalist and

Business Columnist of the Year 2015 The PPA Awards.

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LOYALTY

There are many channels and mechanism’s to generate

loyalty, but they are not loyalty itself.

Loyalty does not require reward

Reward however can create loyalty

"A thing given in recognition of effort"

Customer retention does not mean loyalty

Loyalty does generate retention

“A strong feeling of support or allegiance“

OUR GOAL IS TO GROW

• Income • Profit • Market share • Retention • Acquisition

• Quicker • Cheaper • Personalised • Measured

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WHERE DO I

START?

It seems obvious but you must start with

getting to know your customer.

Before you can implement a

digital loyalty strategy, it is key

to know who your customer is.

- Who are they?

- What do they like and don’t like?

- What are their personal and family priorities?

- What are their professional priorities?

• Build up a profile, a story, a portrait of who they are.

• Do you have one, two or three different types of

customers?

• Do they have different reasons for buying your

product/using your service?

• What is their opinion to digital marketing and which do

they use most? What do they use it for?

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THE ELEMENTS OF

LOYALTY

The majority of businesses focus on price and product or

service for sale. Loyalty is created from so much more

Product / service

offering

Pricing

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THE ELEMENTS OF

LOYALTY

The majority of businesses focus on price and product or

service for sale. Loyalty is created from so much more

Customer service

experience

Reward /

recognition

Brand identity

Product / service

offering

Communication

/ engagement

Pricing

Loyalty

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WHAT ARE THE

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FOOD FOR

THOUGHT

Loyalty has to be cultivated. It can’t

be purchased or demanded.

If you build loyalty with a customer, it shouldn’t just be about instant

gratification, it is about building a relationship pre and post purchase.

Our customers are vocal brand advocates and answer 50% of our

website queries – I think that shows it can really work.

Sam Thomson

Brand Director at The Body Shop

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THE DIGITAL

WORLD

These other factors are heavily influential to customer

loyalty in today’s digital world.

Customer service

experience

Reward /

recognition

Brand identity

Communication

/ engagement

• Website experience

• Support the customer at every key step

• Mobile friendly

• Online purchase process

• Digital and traditional experience must be integrated

• The digital purchase process makes it easy to buy once and buy again

• In-store purchase process

• Offer multiple payment options

• Embrace technology

• Distributors and third parties

• Does their digital experience and customer service impact on your customer loyalty?

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THE DIGITAL

WORLD

These other factors are heavily influential to customer

loyalty in today’s digital world.

Customer service

experience

Reward /

recognition

Brand identity

Communication

/ engagement

47%

unhappy

17%

vs 73%

2015

US & UK

• Website experience

• Support the customer at every key step

• Mobile friendly

• Online purchase process

• Digital and traditional experience must be integrated

• The digital purchase process makes it easy to buy once and buy again

• In-store purchase process

• Offer multiple payment options

• Embrace technology

• Distributors and third parties

• Does their digital experience and customer service impact on your customer loyalty?

• Can you enhance your service and experience by utilising other brands?

#1

#2

being available on my terms

193.5m

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THE DIGITAL

WORLD

The other factors are heavily influential to customer

loyalty in today’s digital world.

Customer service

experience

Reward /

recognition

Brand identity

Communication

/ engagement

95%

of content is viewed

SMS

42%

INCREASE IN CONVERSION WITH PERSONALISED CTA

• Pre-sale communication

• Simple, straightforward and supporting

• Personalistation

• Acknowledge your returning customers

• Post-sale communication

• Receipts and invoices

• Confirmations (order, delivery, manage expectations)

• A simple thank you

• Surveys: Insight and feedback

• Using data

• If you collect customer data, give customers a valuable reason

• Newsletters can be a real ‘value add’ but remember the role

• A newsletter and an email are not necessarily the same thing

• Social media

• Loyal customers and advocates are already likely to be engaged

• Have a clear role for convert customers to loyal customers – add value, don’t preach

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THE DIGITAL

WORLD

The other factors are heavily influential to customer

loyalty in today’s digital world.

Customer service

experience

Reward /

recognition

Brand identity

Communication

/ engagement

25%

e-receipts

1 in 10

Complete a survey with Survey Monkey

Nearly 7 out 10

Customers leave a brand because they feel indifferent

• Pre-sale communication

• Post-sale communication

• Using data

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THE DIGITAL

WORLD

The other factors are heavily influential to customer

loyalty in today’s digital world.

Customer service

experience

Reward /

recognition

Brand identity

Communication

/ engagement

• Pre-sale communication

• Post-sale communication

• Using data

• Social media

• Have a clear role for convert customers to loyal customers – add value, don’t preach

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Through campaigns segmented

by hair colour, haircare and

cosmetics, they elevated brand

awareness across all product

categories, including: cosmetics,

hair colour, haircare, hair styling

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THE DIGITAL

WORLD

The other factors are heavily influential to customer

loyalty in today’s digital world.

Customer service

experience

Reward /

recognition

Brand identity

Communication

/ engagement

9 million

Facebook DAU

12 million

pcm

.

• Pre-sale communication

• Post-sale communication

• Using data

• Social media

• Have a clear role for converting customers to loyal customers – add value, don’t preach

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THE DIGITAL

WORLD

The other factors are heavily influential to customer

loyalty in today’s digital world.

Customer service

experience

Reward /

recognition

Brand identity

Communication

/ engagement

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THE DIGITAL

WORLD

The other factors are heavily influential to customer

loyalty in today’s digital world.

Customer service

experience

Reward /

recognition

Brand identity

Communication

/ engagement

• A clear programme is a well-received programme

• Customers should find it easy to understand the benefits

• If a spend based system, focus on points/reward and not $$$

• Base it around experiences and actions

• Link your programme back to who your customers are – it is ok to be exclusive

• Personalise the rewards

• To them – likes, dislikes, needs

• To the existing relationship with you

• Recognise key dates to create new reasons to believe

• Birthdays, anniversaries etc.

• Length of relationship with brand

• Changes to, or lack of, typical behaviour

• Have a clear strategy on the commercial value – it’s marketing after all

• Other products you can sell as part of rewarding your customers

• Obtain more information and data about your customers

• Moving customers up the product level to get more spend

• Don’t push rewards and recognition for customers that aren’t worth it

1 card

16 countries

600 hotels

800 restaurants

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THE DIGITAL

WORLD

The other factors are heavily influential to customer

loyalty in today’s digital world.

Customer service

experience

Reward /

recognition

Brand identity

Communication

/ engagement

• Visual impacts

• Logo, imagery, colours, icons and other assets

• The right impression: old fashioned, too quirky, too conservative, too boring, too controversial • You create and build a brand to connect with your customer – and not everyone is right

• Make it appropriate to how you communicate –socialis different to emailand, again different to a website

• Language and tone

• Words and style; connotations, humorous , sarcastic, blunt, bland, harsh, rude, real • People both consciously and subconsciously connect with language

• Build your style to connect with your customer - be consistent, be targeted and be brave • Match your style to your digital channels – be funny on social and be interesting on email…..

• Brand values and perception (PR)

• What does your brand, product and business mean? If it was a person what does it stand for? • What do people say about your brand online? The world is an open book now?

• When you go out to the public, how are people responding to you? Bad PR is not good for loyalty but… • Who are you in bed with? The values of that band are associated with yours!

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CLIENTS WHO

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STARBUCKS

WEB STRATEGY MOBILE

o 25 Stores across the east coast of Australia serving thousands of coffees

every day. However, in Australia there are over 10,000 cafes.

o Developed an iOS & Android mobile apps to support their Starbucks card

programme - digital payments, promotions, social, store locator

o Desire was to establish a more personal connection with the brand, something

they have been struggling to do in Australia.

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Winner of “Best Online Shopping & Payments”

– 2013 Mobi Awards 2013

o AIMIA 2014 awards nominated & shortlisted (“Best Of Smartphone [Retail &

eCommerce]”)

o Launching with them a new version of the application with

a whole host of new features this year

For Starbucks, one of their main priorities is about

delivering a better experience by making things easier

for the customer.

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Android & iOS mobile apps

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Android & iOS mobile apps

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DONUT KING

AMAZEBALLS

GAME STRATEGY MOBILE

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New product launch with the aim to target previous customers

and cultivate brand loyalty. Two additional benefits: loyal

customers had something new to say, new customers something

to try.

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We developed an iOS Augmented Reality game that was used in

store to develop better relationships with customers.

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The focus was to connect with customers and align a new brand

experience with the core brand values – moving from

communication to engagement.

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Everything created ‘in-house’ and delivered in market in less

than 1 month!

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Multi-award winner (“Best Of Show [iOS App]” & “Best Mobile

Marketing Campaign” – 2013 Mobi Awards)

For Donut King, one of the key objectives was about

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Sketch 27 of 65

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Augmented gameplay, tips, trophies, leaderboards, share

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RED ROOSTER

END

END TO

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Red Rooster are part of Quick Service Restaurant Holdings

(QSRH) who also own Chicken Treat and Oporto.

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The mobile loyalty app that we have developed for them offers a

mixture of payment, rewards programme, special offers,

ordering and social media integration.

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The challenge faced by the fast food sector is there is little

customer influence opportunity at the final choice point.

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The mobile application gives Red Rooster a difference to other

major competitors because it can help create new loyalist

through the benefit of targeted and personalised rewards &

offers (as part of an overall communications plan).

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It also recognises and rewards brand loyalist in different ways.

For Red Rooster, their key priorities are around

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Red Royalty - Loyalty Program (eDM)

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KEY THOUGHTS…

The do’s of digital loyalty strategies are easy to remember.

1. Know your customer

: What is it that will make the most impact and generate

allegiance to your brand and product/service.

Use your customers

to your

advantage. They are your biggest asset. Display reviews, actively seek

feedback and take care of them.

2. To

take the time to learn and research

about the digital world. Today’s a great

start and there are many simple tools that can make a difference to your

customers – and specialist experts who make it their job to help you.

3. Digital is made up of many elements,

simple and complicated. A ‘Thank you’

on an SMS can generate just as much loyalty as a fully-fledged reward

programme.

4. Loyal customers will mean

cheaper business costs.

It’s cheaper to retain

customers than acquire new ones, and word of mouth from advocates is the

best form of advertising for new business.

5. Great loyalty is all based around insight. Insight comes from

data, data, data

!

Don’t be afraid to collect it and use it (make sure it’s of value). Remember to

track and measure activity. And listen to what is being said.

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...THINK ABOUT...

Don’t make things more difficult for your business. The

aim is to create a strong connection between your brand

or product, and your customers.

1. Don’t stay focused on

price and product

. True brand loyalty is generated

from more than just those two elements.

2. Don’t forget that

repeat business

does not necessarily mean loyal customers.

3. Don’t try and do

everything at once

, you will only do them badly. Match your

strengths and your customer’s needs.

4. Don’t play with social media

if you don’t have the time

or only make half the

required effort. You will only be speaking to people who are already loyal.

5. Don’t forget

other parties

have a massive influence on the perception of your

brand and the loyalty you generate.

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SPECIAL OFFER

Just for Expo attendees

from Blackglass, the

digital marketing arm of The Gruden Group

Win a Free Digital Strategy

Go to our website for your chance to win a free digital marketing strategy,

worth up to $5,000!

Tell us in 50 words or less how a digital marketing campaign could change your

business.

Visit

www.blackglass.com.au/beautyexpo

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www.blackglass.com.au www.gruden.com www.mobileden.com.au @BlackglassAU @GrudenDigital BlackglassAU GrudenDigital Blackglass Gruden