WHAT’S NEW - CUSTOMER LOYALTY & RELATIONSHIP PROGRAMS Linda Birchall Relationship Marketing Manager Microsoft Australia SESSION: AP022

“To compete, companies must shift from pushing individual products to building long-term customer relationships”. Source: “Rethinking Marketing”. Harvard Business Review. It costs up to 7 times more to acquire a customer than it does to retain a customer

Building customer loyalty I have flexibility!

PRESENTATION AGENDA  What makes customers loyal?  Examples of loyalty programs  What can you do to drive customer loyalty? - Simple program steps…

WHAT MAKES CUSTOMERS LOYAL? Make sure your program provides a value exchange for your customers Know me Know what I want Give me preferential treatment Give me a good deal Help me solve problems

Financial Rewards, points incentives, promotions, coupons, frequency programs Important, but can be copied Structural Technology service, delivery system, organizational benefits that lock customers into your service Can lock customers in - but work best when supported by other forms of bonding Social Experience based; preferential service for VIP clients, recognize individual relationships, Just as important as hard/tangible benefits – can be truly differentiating WHAT MAKES CUSTOMERS LOYAL?

7 Financial Frequent flyer points Structural Book online Touchscreen/SMS check in Social Tiering: priority given to high value customers Qantas Club: preflight VIP zone/networking opportunities

Structural IKEA FAMILY LIVE magazine four times a year IKEA Catalogue delivered to your home 365 days return policy Social Exclusive invitations to seminars & events Monthly Enewsletter with ideas, inspiration and exclusive offers Financial Free coffee every time you visit Discounts on a range of products Discounts on meals Free insurance for all products from home to store

TELSTRA SMALL BUSINESS 9 Financial Bundling discounts Structural Online tools for bill management Healthchecks Priority Small business phone number Trial innovative services Social Venture newsletter – business rather than Telstra centric Local networking nights Local small business experts

HOW TO GO ABOUT YOUR OWN PROGRAM LEARN Give your customers ongoing access to resources & information that will help them maximise their investment SAVE Discounted support packages for ongoing engagement Training discounts RECOGNITION Premium customer event Invite them to event with a speaker

CUSTOMER TRIGGERED COMMUNICATIONS Moments of Truth

STRUCTURAL EXAMPLES

AVIS PREFERRED SERVICE

NIKE PLUS

FINANCIAL EXAMPLES

HONG KONG OCTOPUS CARD

WESTPAC ALTITUDE REWARDS

SOCIAL EXAMPLES

BMW MAGIC MOMENTS

LEGO AMBASSADORS

YOUR TURN

MOMENTS OF TRUTH BuyDeployUseRenew 2 years customer lifecycle Sales Cycle ? ? ? ?

MOMENTS OF TRUTH Buy Help plan deployment? DeployUseRenew 2 years customer lifecycle Sales Cycle ? ? ?

MOMENTS OF TRUTH Buy Help plan deployment? Deploy Support offer? Deployment resources? UseRenew 2 years customer lifecycle Sales Cycle ? ?

MOMENTS OF TRUTH Buy Help plan deployment? Deploy Support offer? Deployment resources? Use Help with training? Help with driving usage? Cross sell/Upsell? Renew 2 years customer lifecycle Sales Cycle ?

MOMENTS OF TRUTH Buy Help plan deployment? Deploy Support offer? Deployment resources? Use Help with training? Help with driving usage? Cross sell/Upsell? Renew Help with business case? Offer? 2 years customer lifecycle Sales Cycle

BUILD YOUR COMMS PLAN Buy Help plan deployment? Deploy Support offer? Deployment resources? Use Help with training? Help with driving usage? Cross sell/Upsell? Renew Help with business case? Offer? 2 years Stuctural (eDM) Financial (offers) Social (tele/event) X X X X X X X X X X X X X X X X X X X X X X X X

MICROSOFT EXAMPLE Microsoft Relationship Program (MRP) MRP Targets + 11% lift renewal revenue + 14 points customer satisfaction Reduce marcom costs by 20% MRP Multiplier = 2.12

SOME FINAL TIPS Whatever you do, do it better or do something your competitors can’t do. Remember that your program need to facilitate a valuable value exchange with your customers Think about the 3 pillars: Financial, Structural & Social Recognise, reward, interact and treat customers in outstanding ways to be successful

PARTNER RESOURCES Ensure potential customers can find you on Pinpoint Get paid – ensure that you qualify for the incentive Speak to your PAM for more info Differentiate your business by signing up to the competency program/competencies Leverage the Partner Marketing Centre to help you reach more potential customers salesmarketingsection Skill up your teams for success with the Partner Learning Centre and local Readiness trainingevents