Market and Customer Management Customer Loyalty programme objectives

Market and Customer Management - Customer Loyalty programme objectives Customer Behaviour Communication (1/4) Targeting Positioning Programme structure & offers Communicating with members To be effective for the company, the loyalty programme must Cost and benefit structure increase the customer’s perceptions of the value delivered in the long run. The best programmes integrate all Communicating the Loyalty programme of the marketing communications to target customers through segment or relationship managers whose role is to optimise the relationship with their customers. This requires marketing communications to be built into the design of the programmes rather than added as an afterthought. Jet Petrol Jet. Cash The loyalty programme must sit well with the company’s brand strategy. Jet Petrol’s branding - ‘cheap and friendly’ - sits well with its Jet. Cash rebate programme which offers instantly redeemable prices in exchange for points collected for each GBP 5 spend at the pump. Building a dialogue with customers Although a loyalty programme should seek to develop dialogue with customers, it is only sensible to build a dialogue those who are profitable and who want one. Companies who do not have a regular contact with customers or whose product is too dull to develop one, should develop one through partners. Andersen Corporation The Andersen Corporation, which manufactures windows, has cultivated relationships with architects, home builders and window distributors to replace its once in a lifetime contact with customers themselves. 04 Communication. ppt 1

Loyalty programme objectives Market and Customer Management - Customer Loyalty Customer Behaviour Communication (2/4) Targeting Positioning A state of the art briefing for a communication strategy of a loyalty programme has nine elements The involvement of a good advertising company and a direct marketing expert is essential for the success of the programme. Programme structure & offers Cost and benefit structure Communicating the Loyalty programme Important is, that the creative part does fit well with the results from the pretests, that should be done with customers. In addition, it is important, that the levers above the communication in the envisioning pyramid (e. g. positioning; benefit structure) are known and respected by the advertising agencies. Briefing content Programme Identity and overall concept Ongoing communication with members Ongoing communication to all customers (e. g. billing) Communication in the point of sales Communication during the launch period 04 Communication. ppt Internet Piggy Back possibilities Media planning Tests of the advertising response 2

Market and Customer Management - Customer Loyalty programme objectives Customer Behaviour Communication (3/4) Targeting Positioning A single communication is less value compared to the modern dialogue techniques that are possible today A best practice communication architecture Programme structure & offers An important advantage of a point collection and redemp. Cost and benefit structure tion programme is, that the company gains a lot of important Communicating the information about the customer behaviour. Loyalty programme This information can be stored in a data warehouse, other source systems or in a campaign management tool. The impact of these information is tremendous. A much more focused customer oriented communication approach (one to one) leads to better mailing response and a higher sale volume by equal or less costs. A best practice communication architecture focuses inbound on call center communication. A modern IVR solution helps reducing the amount of agents necessary in a call center. The support of Data Mining tools to overview all customer information is essential. A modern campaign management helps in addition to target the responses and to lower the cost per order. All information should be saved in a customer loyalty software, that generates reports to the loyalty management. 04 Communication. ppt 3

Loyalty programme objectives Market and Customer Management - Customer Loyalty Customer Behaviour Communication (4/4) Targeting Positioning The communication in a loyalty programme consists of strategic and tactical instruments The communication of loyalty programme messages has several objectives. On the strategical side, the objective is a positioning of the programme in the mind of the customer. On the tactical side, the communication objectives is an ongoing perception of the offerings. Programme structure & offers Cost and benefit structure Communicating the Loyalty programme Special offers for point collection Long term offer point collection Strategic Communication instruments for positioning the programme • Branding / Wording • Club-Identity • Launch Package (e, g, booklet) Core idea of a loyalty programme (e. g. point collection - point redemption idea) Variable tactical communication instruments • Direct marketing • Newsletter • Acquisition stuffer • Point of sales communication • Internet Long term offers point redemption Special offers for point redemption 04 Communication. ppt 4