WEBINAR Customer Loyalty Solutions Evaluating The Vendors That

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WEBINAR Customer Loyalty Solutions: Evaluating The Vendors That Matter Most Emily Collins, Senior Analyst

WEBINAR Customer Loyalty Solutions: Evaluating The Vendors That Matter Most Emily Collins, Senior Analyst March 09, 2016. Call in at 10: 55 a. m. Eastern time

We work with business and technology leaders to develop customer-obsessed strategies that drive growth.

We work with business and technology leaders to develop customer-obsessed strategies that drive growth. © 2016 Forrester Research, Inc. Reproduction Prohibited 3

“Which of these statements best represents your marketing organization? ” 1. We are currently

“Which of these statements best represents your marketing organization? ” 1. We are currently executing a customer loyalty solution (technology and/or services) as a critical component of our loyalty strategy. POLL 2. We plan to implement a customer loyalty solution within the next 12 months. 3. We plan to implement a customer loyalty solution within the next 24 months. 4. We have no plans to implement a customer loyalty solution. © 2016 Forrester Research, Inc. Reproduction Prohibited

Agenda › Why customer loyalty solutions? › The loyalty provider landscape › Evaluating customer

Agenda › Why customer loyalty solutions? › The loyalty provider landscape › Evaluating customer loyalty solutions’ capabilities › Next steps © 2016 Forrester Research, Inc. Reproduction Prohibited 5

Agenda › Why customer loyalty solutions? › The loyalty provider landscape › Evaluating customer

Agenda › Why customer loyalty solutions? › The loyalty provider landscape › Evaluating customer loyalty solutions’ capabilities › Next steps © 2016 Forrester Research, Inc. Reproduction Prohibited 6

In the age of the customer, relationships determine success.

In the age of the customer, relationships determine success.

Programs influence customer behavior Loyalty programs drive purchase. 79% save me money. 70% influence

Programs influence customer behavior Loyalty programs drive purchase. 79% save me money. 70% influence where I make purchases. 62% influence what I buy. Base: 1, 059 US online adults (18+) who belong to any loyalty programs Source: Forrester’s North American Consumer Technographics® Customer Life Cycle Survey 2, 2015 © 2016 Forrester Research, Inc. Reproduction Prohibited

They improve the customer experience Source: “Brief: Loyalty Programs Unveil Your Most Loyal Customers”

They improve the customer experience Source: “Brief: Loyalty Programs Unveil Your Most Loyal Customers” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited

The marketplace is crowded 64% of US online adults belong to a loyalty program.

The marketplace is crowded 64% of US online adults belong to a loyalty program. On average, consumers belong to nine programs. Base: 1, 647 US online adults (18+) Source: Forrester’s North American Consumer Technographics® Customer Life Cycle Survey 2, 2015 © 2016 Forrester Research, Inc. Reproduction Prohibited

Loyalty is more than points and discounts Source: “Be A Loyalty Company, Not A

Loyalty is more than points and discounts Source: “Be A Loyalty Company, Not A Company With A Loyalty Program” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited

Agenda › Why customer loyalty solutions? › The loyalty provider landscape › Evaluating customer

Agenda › Why customer loyalty solutions? › The loyalty provider landscape › Evaluating customer loyalty solutions’ capabilities › Next steps © 2016 Forrester Research, Inc. Reproduction Prohibited 12

Myriad solutions support loyalty outcomes Source: “Navigate The Complex Customer Loyalty Ecosystem” Forrester report

Myriad solutions support loyalty outcomes Source: “Navigate The Complex Customer Loyalty Ecosystem” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited

Loyalty provider capabilities Strategy: the research, planning, and design of loyalty initiatives and programs

Loyalty provider capabilities 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 © 2016 Forrester Research, Inc. Reproduction Prohibited

We segment the market into three buckets Source: “Navigate The Complex Customer Loyalty Ecosystem”

We segment the market into three buckets Source: “Navigate The Complex Customer Loyalty Ecosystem” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited

Agenda › Why customer loyalty solutions? › The loyalty provider landscape › Evaluating customer

Agenda › Why customer loyalty solutions? › The loyalty provider landscape › Evaluating customer loyalty solutions’ capabilities › Next steps © 2016 Forrester Research, Inc. Reproduction Prohibited 16

Narrowing our focus Source: “Navigate The Complex Customer Loyalty Ecosystem” Forrester report © 2016

Narrowing our focus Source: “Navigate The Complex Customer Loyalty Ecosystem” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited

The category definition: Hybrid technology and services solutions that deliver end-to-end loyalty strategy, management,

The category definition: Hybrid technology and services solutions that deliver end-to-end loyalty strategy, management, and marketing support © 2016 Forrester Research, Inc. Reproduction Prohibited

Selection criteria 1. Sells a comprehensive customer loyalty solution 2. Has a solution that

Selection criteria 1. Sells a comprehensive customer loyalty solution 2. Has a solution that meets the needs of large or midsize organizations 3. Demonstrates the ability to support the largest loyalty market and has a product now in general release and in use by at least 15 clients © 2016 Forrester Research, Inc. Reproduction Prohibited

The result? One process, two Forrester Waves For large organizations © 2016 Forrester Research,

The result? One process, two Forrester Waves For large organizations © 2016 Forrester Research, Inc. Reproduction Prohibited For midsize organizations

Customer loyalty solutions — evaluation criteria Source: “The Forrester Wave™: Customer Loyalty Solutions For

Customer loyalty solutions — evaluation criteria Source: “The Forrester Wave™: Customer Loyalty Solutions For Midsize Organizations, Q 1 2016” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited

What we found: movement abounds in this mature market Source: “The Forrester Wave™: Customer

What we found: movement abounds in this mature market Source: “The Forrester Wave™: Customer Loyalty Solutions For Midsize Organizations, Q 1 2016” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited

Providers will branch out to tackle new growth by: 1. Introducing new delivery models.

Providers will branch out to tackle new growth by: 1. Introducing new delivery models. 2. Expanding globally. 3. Tackling new market opportunities. 4. Chasing the CX opportunity. © 2016 Forrester Research, Inc. Reproduction Prohibited

Customer loyalty solutions for midsize organizations Results and vendor highlights © 2016 Forrester Research,

Customer loyalty solutions for midsize organizations Results and vendor highlights © 2016 Forrester Research, Inc. Reproduction Prohibited 24

Who we included © 2016 Forrester Research, Inc. Reproduction Prohibited

Who we included © 2016 Forrester Research, Inc. Reproduction Prohibited

The results: customer loyalty solutions for midsize organizations Leaders › 500 friends, a Merkle

The results: customer loyalty solutions for midsize organizations Leaders › 500 friends, a Merkle Company › Crowd. Twist › Aimia Strong Performers › Data. Candy › Clutch Contenders › Deluxe Corporation › Inte Q Global Source: “The Forrester Wave™: Customer Loyalty Solutions For Midsize Organizations, Q 1 2016” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited 26

Vendor performance: Leaders › 500 friends, a Merkle Company • Overall score: 4. 06

Vendor performance: Leaders › 500 friends, a Merkle Company • Overall score: 4. 06 • Strengths: platform flexibility and usability, value • Weaknesses: reporting and analytics, platform limitations › Crowd. Twist • Overall score: 3. 95 • Strengths: digital engagement and platform usability • Weaknesses: reporting and analytics › Aimia • Overall score: 3. 69 • Strengths: platform speed and stability, reporting and dashboards • Weaknesses: slimmer feature set Source: “The Forrester Wave™: Customer Loyalty Solutions For Midsize Organizations, Q 1 2016” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited 27

Vendor performance: Strong Performers › Data. Candy • Overall score: 3. 64 • Strengths:

Vendor performance: Strong Performers › Data. Candy • Overall score: 3. 64 • Strengths: platform usability, reliable and responsive partner • Weaknesses: breadth and depth of features › Clutch • Overall score: 3. 01 • Strengths: user interface, performance management capabilities, and account management • Weaknesses: marketing automation and analytics capabilities Source: “The Forrester Wave™: Customer Loyalty Solutions For Midsize Organizations, Q 1 2016” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited 28

Vendor performance: Contenders › Deluxe Corporation • Overall score: 2. 64 • Strengths: redemption

Vendor performance: Contenders › Deluxe Corporation • Overall score: 2. 64 • Strengths: redemption and offer management, price and value, and implementation time • Weaknesses: depth of capabilities, reporting and analytics › Inte Q Global • Overall score: 2. 21 • Strengths: account management • Weaknesses: reporting, strategy support and design Source: “The Forrester Wave™: Customer Loyalty Solutions For Midsize Organizations, Q 1 2016” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited 29

Customer loyalty solutions for large organizations Results and vendor highlights © 2016 Forrester Research,

Customer loyalty solutions for large organizations Results and vendor highlights © 2016 Forrester Research, Inc. Reproduction Prohibited 30

Who we included © 2016 Forrester Research, Inc. Reproduction Prohibited

Who we included © 2016 Forrester Research, Inc. Reproduction Prohibited

The results: customer loyalty solutions for large organizations Leaders › Brierley+Partners › Aimia ›

The results: customer loyalty solutions for large organizations Leaders › Brierley+Partners › Aimia › Epsilon › Kobie Marketing › Bond Brand Loyalty › ICF Olson 1 to 1 Strong Performers › TIBCO Software › Comarch Source: “The Forrester Wave™: Customer Loyalty Solutions For Large Organizations, Q 1 2016” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited 32

Vendor performance: Leaders › Brierley+Partners • Overall score: 4. 48 • Strengths: loyalty management

Vendor performance: Leaders › Brierley+Partners • Overall score: 4. 48 • Strengths: loyalty management and marketing capabilities, account management, and customer references • Weaknesses: user interface and messaging › Aimia • Overall score: 4. 24 • Strengths: account management and platform user interface • Weaknesses: strategic insight and thought leadership, cost of technology upgrades › Epsilon • Overall score: 4. 13 • Strengths: experience with large programs, vision and road map • Weaknesses: integration and innovation Source: “The Forrester Wave™: Customer Loyalty Solutions For Large Organizations, Q 1 2016” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited 33

Vendor performance: Leaders › Kobie Marketing • Overall score: 4. 08 • Strengths: platform

Vendor performance: Leaders › Kobie Marketing • Overall score: 4. 08 • Strengths: platform flexibility and usability, proactive account management, and reporting and dashboards • Weaknesses: industry-specific insights and predictive analytics › Bond Brand Loyalty • Overall score: 3. 92 • Strengths: vision and strategic services • Weaknesses: marketing automation and analytics, platform execution › ICF Olson 1 to 1 • Overall score: 3. 63 • Strengths: platform usability, analytics, and people • Weaknesses: proactive strategic thinking Source: “The Forrester Wave™: Customer Loyalty Solutions For Large Organizations, Q 1 2016” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited 34

Vendor performance: Strong Performers › TIBCO Software • Overall score: 2. 99 • Strengths:

Vendor performance: Strong Performers › TIBCO Software • Overall score: 2. 99 • Strengths: user interface and cost • Weaknesses: client feedback, account management, and execution › Comarch • Overall score: 2. 81 • Strengths: platform capabilities and discipline, industry expertise • Weaknesses: innovation and depth of services capabilities Source: “The Forrester Wave™: Customer Loyalty Solutions For Large Organizations, Q 1 2016” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited 35

Customer perspectives © 2016 Forrester Research, Inc. Reproduction Prohibited 36

Customer perspectives © 2016 Forrester Research, Inc. Reproduction Prohibited 36

Greatest loyalty challenges “What are the greatest challenges facing your customer loyalty program/initiative today?

Greatest loyalty challenges “What are the greatest challenges facing your customer loyalty program/initiative today? ” Maintaining a high perceived value of our loyalty program 40% Personalizing offers, content, and experiences based on behavior 40% Ensuring member awareness/understanding of our loyalty program and its benefits 38% Differentiating our loyalty program from our competitors 28% Measuring the ROI of our customer loyalty program 28% Coordinating and collaborating with internal groups 28% Base: 60 marketing professionals Source: The Forrester Wave™: Customer Loyalty Solutions, Customer Reference Survey, 2015 © 2016 Forrester Research, Inc. Reproduction Prohibited

Customer usage favors traditional loyalty capabilities Most customers’ users rely on their provider for:

Customer usage favors traditional loyalty capabilities Most customers’ users rely on their provider for: 1. Rewards and redemption management: 89% 2. Customer management: 87% 3. Offer and promotion management: 74% 4. Loyalty strategy design: 64% 5. Performance management: 62% 6. Campaign management: 49% 7. Training and support: 46% 8. Liability and fraud management: 46% Base: 61 marketing professionals Source: The Forrester Wave™: Customer Loyalty Solutions, Customer Reference Survey, 2015 © 2016 Forrester Research, Inc. Reproduction Prohibited

Seventy-five percent of customers are not willing to switch Switching costs are too high.

Seventy-five percent of customers are not willing to switch Switching costs are too high. We are totally satisfied with our current provider. We don’t believe we could find the same capabilities and value elsewhere. Base: 60 marketing professionals Source: The Forrester Wave™: Customer Loyalty Solutions, Customer Reference Survey, 2015 © 2016 Forrester Research, Inc. Reproduction Prohibited

Room for improvement “Where does your customer loyalty vendor need to improve? ” Better

Room for improvement “Where does your customer loyalty vendor need to improve? ” Better innovation to take our strategies to the next level 32% Improve predictive analytics or optimization capabilities 22% Offer more functionality that supports cross-channel customer interactions 20% Wouldn't improve anything 15% Increase resources to manage our account 15% Simplify the pricing structure 15% Improve their understanding of our business Minimize the effort to integrate real-time data sources 12% 7% Base: 60 marketing professionals Source: The Forrester Wave™: Customer Loyalty Solutions, Customer Reference Survey, 2015 © 2016 Forrester Research, Inc. Reproduction Prohibited

Agenda › Why customer loyalty solutions? › The loyalty provider landscape › Evaluating customer

Agenda › Why customer loyalty solutions? › The loyalty provider landscape › Evaluating customer loyalty solutions’ capabilities › Next steps © 2016 Forrester Research, Inc. Reproduction Prohibited 41

Choosing a customer loyalty solution 1. Identify your loyalty approach and key selection criteria.

Choosing a customer loyalty solution 1. Identify your loyalty approach and key selection criteria. 2. Create a shortlist that takes into consideration your approach, current and future scale, and required support. 3. Use the Forrester Wave™ model to customize the scoring to your specific needs. © 2016 Forrester Research, Inc. Reproduction Prohibited 42

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

Thank you Emily Collins +1 617 -613 -6686 [email protected] com

MARKETING 2016 April 26– 27, 2016 • New York Hilton Midtown • New York

MARKETING 2016 April 26– 27, 2016 • New York Hilton Midtown • New York As digital technologies empower independence and fragment attention, modern marketing teams must deepen their understanding of their rapidly evolving digital customers. Marketing professionals will learn how to master available options for technologies, agencies, and suppliers in today’s complex marketing ecosystems and orchestrate powerful marketing campaigns and tactics across multiple channels and platforms. © 2016 Forrester Research, Inc. Reproduction Prohibited 44