Loyalty 3.0 : Motivation, Big Data & Gamification Herve Atayi

30 mobile operators in 4 countries Mobile Loyalty Audit 2014 What’s creating loyalty, and what’s breaking it in today’s hyper-competitive market? 12 mobile device brands 4000 mobile customers 30 mobile operators in 4 countries

Is every retained customer loyal and satisfied? Mobile Loyalty Audit 2014 Is every retained customer loyal and satisfied? 55% stayed because their service expectations were met 35% didn’t want to risk losing coverage 26% said switching was just too inconvenient 37% stay because they get the best value for money 15% said that all mobile operators are the same

Mobile Loyalty Audit 2014 Customers were asked what a competitor could do to tempt them away from their current mobile operator Number of support interactions Average Better network coverage 48% Better data speed 43% Bigger data allowance Better loyalty rewards 41% Better customer service 39% The phone I want is cheaper Data sharing 30% Highly recommended 26% Desired phone available 24%

4 Type of Customers Satisfaction is no guarantee of retention Highly satisfied customers who will happily switch if a better opportunity is presented to them. They chase low prices or buy to pursue a trend. It takes effort to keep this segment but they show little , to no, loyalty in return. Mercenaries The customer has a compelling reason – ideally an emotional stake in the brand – resist competitive offers. All brands can attain true loyalty if they are committed to a win-win relationship with their customers. i.e Starbucks True loyalty Customers in this group stick around because it’s too inconvenient to escape. Classic examples are airline loyalty programme (where a lack of alternate flights produce loyalty) or banks and grocery stores. These customers have no incentive to stay once a competitor makes it to switch. Inertia loyalty The customer and the brand begin to merge so that rejecting the brand would be like rejecting your own values. Customer commitment becomes a virtual lock at that level. Example: Apple, Coca-Cola. Cult loyalty

The 3 Faces of Loyalty Loyalty 1.0 Loyalty 2.0 Loyalty 3.0 Frequent-flyer programmes, Cash-back credit cards, BOGOF These are transactional, and focused on customers. Long grind with no motivation. No engagement, and no loyalty being generated. Loyalty 1.0 Emerged in the early 1990. 1-1 marketing. Targeted loyalty through segmentation and personalisation Direct-mail, e-mail campaigns with data having a bigger role. Consumers were overwhelmed by the sheer amount of noise. Loyalty 2.0 Motivation Big data Gamification Loyalty 3.0

Loyalty 3.0 Motivation

Motivation Internal and external factors that stimulate desire and energy in people to be continually interested in and committed to a job, role, or a subject, and to exert persistent effort in attaining a goal.

The 5 key intrinsic motivators Autonomy I control Mastery I improve Purpose I make a difference Progress I achieve Social interaction I connect with others

Loyalty 3.0 Motivation Big Data

Big Data Traditional data Customer or employee records about you Where you live What you’ve purchased How you’ve performed Big Data Explosion in the size, amount and form of information available around any one individual, organisation, or event. It comes from wide variety of sources, assembled in a variety of forms, some structured and processed and some unstructured and unprocessed.

Big Data How can we use big data With big data, a business can learn a lot about: What you do Where you do it When you do it What you like i.e Amazon, Etisalat

Big Data There is no real finite limit or definition of the size of big data. the size of database at Walmart alone is 2.5 petabytes of data, the equivalent of 167 times the books in the U.S. Library of Congress. A petabyte is 1 million gigabytes which is roughly equivalent to 20 million file cabinets worth of text. eBay processes 50 petabytes per day of activity data as its users search, bid on, and navigate through its site. The total amount of data estimated to be created each day is 2.5 exabytes – 1000 times the size of all Walmart has in storage.

Big Data According to Eric Schmidt, Chairman of Google, “Between the dawn of civilization and 2003, 5 Exabyte of information were created. Now we are generating that amount every two days”.

Loyalty 3.0 Motivation Big Data Gamification

Gamification Gamification takes the motivational techniques that video game designers have used for years to motivate players and uses them in nongame contexts. Giving users goals to accomplish Awarding them with badges Engaging them with competition Encouraging them to collaborate in teams Giving them status by levelling them up Enabling them to earn points

Games Are Intrinsically Motivating Autonomy I control You have complete autonomy during the course of the game Within the framework of the rules, you decide how you want to accomplish your objectives Mastery I improve You want to get better at the game. When a game loses any ability for you to get better, you quickly grow bored. Purpose I make a difference When you are playing a game, you willingly and intentionally set aside the real world and real life. You are in another world. And in that world, you have a single driving purpose- to win. Progress I achieve Games give the players a clear sense of their progress If the purpose is to win, then at any point in time, how am I doing toward that goal? Social interaction I connect with others Social interaction is the primary reason many of us play games. Games give us a magic circle, a virtual world, in which to engage with our friends and family and compete, collaborate, and connect in ways that we don’t in real life.

Loyalty 3.0 Motivation Big Data Gamification LOYALTY 3.0

Some Examples of Loyalty 3.0

Dropbox

Verizon: Get your game on

My School My Village My Planet

Baltic Miles: Burn the miles

Cable Points