Webinar Choose The Right Provider For Your Customer

Webinar Choose The Right Provider For Your Customer Loyalty Strategy Emily Collins, Analyst September 9, 2014. Call in at 12: 55 p. m. Eastern time @ecollins

Service provider or technology platform? © 2014 Forrester Research, Inc. Reproduction Prohibited What’s the difference between Vendor Y and Vendor Z? Who can help me with my loyalty strategy? I want to mobilize my loyalty program but don’t know where to turn. 2

“Loyalty” is multifaceted and complex Rational Emotional “I get more points. ” “I like the brand. ” “The price is reasonable. ” “I want to share it. ” “The product addresses my needs. ” © 2014 Forrester Research, Inc. Reproduction Prohibited “It’s convenient to shop. ” Lo ya “It’s close to my house. ” lty “I trust the brand. ” “I like how I feel when I use the brand. ” 5

Loyalty vendors offer one or more competencies Strategy: the research, planning, and design of loyalty initiatives and programs Management: the back-end orchestration of loyalty initiatives and programs Marketing: the execution of loyalty initiatives across channels © 2014 Forrester Research, Inc. Reproduction Prohibited 9

Native and complementary providers deliver loyalty through tech and services Source: July 31, 2014, “Navigate The Complex Customer Loyalty Ecosystem” Forrester report © 2014 Forrester Research, Inc. Reproduction Prohibited

Gamification platforms Complementary providers › Support the gamification of loyalty programs through behavioral tagging, business rules management, and rewarding for engagement. © 2014 Forrester Research, Inc. Reproduction Prohibited 13

Mobile marketing platforms Complementary C providers › Mobilize loyalty programs, deliver mobile offers and content, and integrate with mobile wallets. © 2014 Forrester Research, Inc. Reproduction Prohibited 15

POS providers and payment processors Complementary C providers › Provide integrated earn-and-burn point solutions as part of a larger transaction and payments processing suite. © 2014 Forrester Research, Inc. Reproduction Prohibited 16

Loyalty agencies and consultancies Native providers › Offer loyalty-specific strategic consulting to help companies conduct market research, develop strategies, build programs, and select execution partners. © 2014 Forrester Research, Inc. Reproduction Prohibited 18

Loyalty service providers Native N providers › Deliver a full suite of tools, partners, and services to support loyalty programs and loyalty marketing. Services include strategy and design, campaign and offer management, segmentation and analytics, fulfillment, and operational support. © 2014 Forrester Research, Inc. Reproduction Prohibited 19

BPO services and system integrators Complementary providers › Provide loyalty technology integration, implementation, and operations services. © 2014 Forrester Research, Inc. Reproduction Prohibited 22

Earn-and-burn solutions Complementary providers › Offer additional ways for members to earn points through mail networks or loyalty currency commerce and redeem points through gift cards, travel rewards, or physical merchandise warehouses. © 2014 Forrester Research, Inc. Reproduction Prohibited 23

Management consultants Complementary providers › Provide strategy, loyalty research, change management services, and business technology consulting. © 2014 Forrester Research, Inc. Reproduction Prohibited 24

Marketing and analytics service providers Complementary providers › Support loyalty marketing through analytics and insights development, database hosting and support, and strategy services. © 2014 Forrester Research, Inc. Reproduction Prohibited 25

Promotions and offers providers Complementary providers › Source and deliver various member incentives, including coupons, sweepstakes, card-linked offers, and merchant-funded offers. © 2014 Forrester Research, Inc. Reproduction Prohibited 26

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Instead, start your search by answering three key questions › What is your loyalty approach? › Where does customer loyalty sit within your organization? › What resources are available to support loyalty? © 2014 Forrester Research, Inc. Reproduction Prohibited 29

Create your vendor list Map your requirements to the core loyalty vendor capabilities: strategy, management, and marketing. © 2014 Forrester Research, Inc. Reproduction Prohibited Determine whether you are looking for technology and/or service-based support. Narrow down your list of potential partners based on vendor capabilities and delivery mode. 31

Issue your request for proposal (RFP) Identify and disclose your key selection factors. Ask open-ended questions. Use presentations to make the final selection. Avoid making a “gut reaction” selection. © 2014 Forrester Research, Inc. Reproduction Prohibited 32

Recent loyalty research › July 31, 2014, “Navigate The Complex Customer Loyalty Ecosystem” › June 17, 2014, “Advance Your Approach To Customer Loyalty” › October 30, 2013, “The Forrester Wave™: Loyalty Program Service Providers, Q 4 2013” › For all other loyalty-related research, check out The Customer Loyalty Playbook. © 2014 Forrester Research, Inc. Reproduction Prohibited 33

Questions? © 2014 Forrester Research, Inc. Reproduction Prohibited 34

Thank you Emily Collins +1 617. 613. 6686 ecollins@forrester. com