Communication (1/4) Communicating with members Jet Petrol JetCash Customer Behaviour Tar- geting Positioning Programme structure & offers Cost and benefit structure Communicating the Loyalty programme Loyalty programme objectives Communication (1/4) Communicating with members Jet Petrol JetCash Building a dialogue with customers Andersen Corporation To be effective for the company, the loyalty programme must increase the customer’s perceptions of the value delivered in the long run. The best programmes integrate all 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. The loyalty programme must sit well with the company’s brand strategy. Jet Petrol’s branding - ‘cheap and friendly’ - sits well with its JetCash rebate programme which offers instantly redeemable prices in exchange for points collected for each GBP 5 spend at the pump. 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. 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.

Customer Behaviour Tar- geting Positioning Programme structure & offers Cost and benefit structure Communicating the Loyalty programme Loyalty programme objectives Communication (2/4) 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 pro- gramme. Important is, that the creative part does fit well with the results from the pre-tests, 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. Programme Identity and overall concept Ongoing communica- tion with members tion to all customers (e.g. billing) Communica- tion in the point of sales tion during the launch period Internet Piggy Back possibilities Media planning Tests of the advertising response Briefing content

Customer Behaviour Tar- geting Positioning Programme structure & offers Cost and benefit structure Communicating the Loyalty programme Loyalty programme objectives Communication (3/4) A single communication is less value compared to the modern dialogue techniques that are possible today A best practice communication architecture An important advantage of a point collection and redemp- tion programme is, that the company gains a lot of important information about the customer behaviour. 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.

Customer Behaviour Tar- geting Positioning Programme structure & offers Cost and benefit structure Communicating the Loyalty programme Loyalty programme objectives Communication (4/4) 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. Core idea of a loyalty programme (e.g. point collection - point redemption idea) Long term offers point redemption Special offers for Long term offer point collection point collection Variable tactical communication instruments Direct marketing Newsletter Acquisition stuffer Point of sales communication Internet Strategic Communication instruments for positioning the programme Branding / Wording Club-Identity Launch Package (e,g, booklet)