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Taking Loyalty Beyond The Discount
Dave Walters, Product Evangelist
@_DaveWalters
So Who is This Dude?
                        Twenty-Year Digital Marketer
COO @ Loyalty Startup



                                 Corporate + Agency
  Relationship Marketing Practice Lead
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Who is Silverpop?
 Silverpop is the Unified Digital Marketing Platform

            that delivers superior overall

  “return on relationship” powered by the deepest

      insight into the way customers behave.

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4,000+ Brands and 15,000 Marketers
Financial Services       Retail     Energy & Utilities   Media      Business Services   Software




Travel & Hospitality   Non-Profit   Food & Beverage      Hardware    Entertainment      Education




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Behavioral Marketing

  Real-time, cross-channel, insanely relevant campaigns to
  one person at a time automatically driven by analytics of
           their actions, preferences and profiles.
The Wild West of Loyalty Marketing
                                ~$100/mo./location


$50 for 500                            $3-5MM/yr.




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Why Do Loyalty Programs Exist?
• They created real choice modifiers and drove strong add-on
  revenues in specific industries, like travel and retail
   – Yep, he just used the past tense :: <CREATED>
• More market competition drove increasing price and share-of-
  spend pressures
   – Sure, the rise of analytics weenies drove new dynamics
• Buyers respond positively to more engaging relationships
   – Newsflash, we’re social beings who like being recognized
• Marketing programs have their own momentum
   – Once proven, it’s hard to kill a big fish
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When They’re Great

                             High SKU-Level Margins
Commoditized Product

                    Steady-State Marketing Budget

 Repeatable Purchase Cycle
                              Data-Driven Marketers
    MDF Funds
                   Recurring Customers
                                                    8
When They’re Terrible

                            Price-Satisfied Customers
Complex Product Offering

                     Commingled With Other Brands

     Few Fraud Controls
                                No In-Store Training
   Just Free Stuff
                     Nothing is ‘Learned’
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“A completely different mindset is required if any
 semblance of a loyalty program is going to stick to today’s
 20-year-old, who is the prime earner of the next 20 years.
Online reputation and real-life experiences will trump a 15%
   coupon any day of the week and twice on Sundays.”
                                                Me, 2010




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Six New Tactics Beyond Discounts




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Open Your Social Eyes
• Better ‘appreciation dynamic’

• It’s real-time, more personal,
  and is absolutely scalable

• Consider social advocacy on
  par with item purchases

• Use tools like Twitter Advanced
  Search or Radian6

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Reward Based on Affinity
                       • Think beyond the item being
                         bought from you

                       • What resonates with the
                         PERSON

                       • Gently test a wide range of
                         hypotheses with partner offers

                       • And then there’s Prime…

                                                       13
Go Deep on Mobile
• Captain Obvious moment: your users
  have smartphones

• Look closely at hard costs, and then
  spend that money build an app

• Keep the experience immediate, drive-
  to-web is bad here

•   Remember non-digital high spenders

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Factor for Location
                      • Of all the ‘behaviors’, location
                        is among the strongest
                        predictors

                      • Keep a permission layer, but
                        use the data to inform your
                        programs

                      • Don’t miss the opportunity to
                        socially thank visitors
                                                           15
Score It Like a Lead
• As long as we’re beyond the
  transaction, go for it!

• B2B-stlye lead scoring applies
  to events beautifully

• Group your customers by tier
  and market to them differently

• Experiment aggressively

                                   16
An Open Architecture
                       • The biggest challenge today

                       • Takes affinity-driven rewards
                         to their logical conclusion

                       • Reduce costs *and* deepen
                         your customer understandings

                       • Pick only your best friends and
                         partners

                                                         17
The Thank You Economy




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Questions?

  Dave Walters
     dwalters@silverpop.com
     Twitter: @_DaveWalters




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