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What’s new - Customer loyalty & relationship programs

What’s new - Customer loyalty & relationship programs . SESSION: AP022. Linda Birchall Relationship Marketing Manager Microsoft Australia libirc@microsoft.com. “To compete , companies must shift from pushing individual products to building long-term customer relationships ”.

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What’s new - Customer loyalty & relationship programs

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  1. What’s new - Customer loyalty & relationship programs SESSION: AP022 Linda Birchall Relationship Marketing Manager Microsoft Australia libirc@microsoft.com

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

  3. I have flexibility! Building customer loyalty Building customer loyalty Need to move towards

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

  5. 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

  6. WHAT MAKES CUSTOMERS LOYAL? 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

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

  8. Financial • Freecoffee every time you visit • Discounts on a range of products • Discounts on meals • Free insurance for all products from home to store • 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

  9. TELSTRA SMALL BUSINESS Financial Bundlingdiscounts 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 9

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

  11. CUSTOMER TRIGGERED COMMUNICATIONS Moments of Truth

  12. STRUCTURAL EXAMPLES

  13. AVIS PREFERRED SERVICE

  14. NIKE PLUS

  15. FINANCIAL EXAMPLES

  16. HONG KONG OCTOPUS CARD

  17. WESTPAC ALTITUDE REWARDS

  18. SOCIAL EXAMPLES

  19. BMW MAGIC MOMENTS

  20. LEGO AMBASSADORS

  21. YOUR TURN 

  22. MOMENTS OF TRUTH 2 years customer lifecycle Sales Cycle ? ? ? ?

  23. MOMENTS OF TRUTH 2 years customer lifecycle Sales Cycle ? ? ?

  24. MOMENTS OF TRUTH 2 years customer lifecycle Sales Cycle ? ?

  25. MOMENTS OF TRUTH 2 years customer lifecycle Sales Cycle ?

  26. MOMENTS OF TRUTH 2 years customer lifecycle Sales Cycle

  27. BUILD YOUR COMMS PLAN 2 years X X X X X X X X X X X X

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

  29. 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

  30. PARTNER RESOURCES Ensure potential customers can find you on Pinpoint http://pinpoint.microsoft.com/en-AU Leverage the Partner Marketing Centre to help you reach more potential customers https://partner.microsoft.com/Australia/salesmarketingsection Skill up your teams for success with the Partner Learning Centre and local Readiness https://partner.microsoft.com/Australia/trainingevents Get paid – ensure that you qualify for the <insert relevant incentive> incentive Speak to your PAM for more info Differentiate your business by signing up to the <insert competency name> competency https://partner.microsoft.com/Australia/program/competencies libirc@microsoft.com

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