Join Michael Hemsey, EVP of Merkle's Loyalty Solutions as he presents on the current state of the loyalty industry, recent industry developments, and what approaches are needed to more effectively execute loyalty programs.
5. 5 Loyalty Outlook 2018
Our Speaker
Michael Hemsey
EVP, Merkle Loyalty
#GoIrish
6. Agenda
• Welcome
• What we are all trying to achieve?
• Data and privacy
• Emotional loyalty
• Loyalty strategy
• Key takeaways
• About Merkle
7. 7 Loyalty Outlook 2018
POLL QUESTION
To what degree do you currently have what you would consider a “360-degree” view of your members that
are in your loyalty program? Please choose the best answer.
• Totally agree that we have a 360-degree view
• Somewhat agree that we have a 360-degree view
• We don’t have a 360-degree view
• I don’t know
9. Data and Privacy
Make channels relevant and
frictionless
The search is on for channels that are easily accessible to
members and can be used as a channel with the power to push
offers and act on persona-based messaging
In-Home personal assistants
Artificial Intelligence
Mobile Wallets
Loyalty Outlook 2018
39mm Number of Americans
who own a smart
speaker (Amazon Alexa,
Google Home, Apple
HomePod)
56%
Predicted number of
mobile-payment users in
the U.S. by the end of 2020
77%
Number of Consumers
who use an AI-powered
service or device
10. 10 Loyalty Outlook 2018
Poll Question
Do you feel like your loyalty program is effectively using data to segment and
personalize to create an optimized customer experience?
• Yes, definitely
• There is some work to do
• No, not at all
• Other (text box)
11. 11 Loyalty Outlook 2018
Use Case: Starbucks
Payments
Pay button generates a
barcode to scan, saving
time and earning rewards
Find a Store
To see stores in your
vicinity, get directions
Now Playing
Highlight music playing in a
shop
Order & Pay
To order coffee ahead and
skip the line
Customer Loyalty
Awarding stars based on
money paid to reach
rewards
True Value Exchange
The mobile app has more
than 17 million and the reward
program has 13 million active
users. These users alone create
an overwhelming amount of
data about what, where and
when they buy coffee and
complementary products that
can be overlaid on other data
including weather, holidays and
special promotions.
Watch the full presentation at merkleinc.com
12. 12 Loyalty Outlook 2018
Poll Question
Based on the best available knowledge to you, what are the CURRENT channels you use most to
communicate with members? Please rank these 1 to 6, with 1 being the channel you use most and 6 being
the channel you use least:
• In home personal assistants
• Email marketing
• SMS / Text messaging
• In-app messaging
• Push notifications
• In-store promotions
• Direct mail
• Other: Please define
13. Emotional Loyalty
Create meaningful interactions
leveraging data
Consumers are asking, “What’s in it for me?”
And if their answers are not satisfactory, they are willing to
abandon loyalty programs that do not provide value for
programs, brands and retailers that deliver.
Truly personalized communications and offers
Non-transactional rewards
Loyalty Outlook 2018
28% Number Global
Consumers who join a
loyalty program
because they deemed
the rewards as valuable
41%
Percentage of US
consumers who said they
ditched a company
because of poor
personalization and lack of
trust
86%
Number of Consumers
who will shop more if
they like a loyalty
program
14. 14 Loyalty Outlook 2018
Use Case: New Balance – My NB Rewards
Mobile-First Engagement
Program design builds a stronger
direct relationship w/ core segments
Relevancy
Program partnership with Strava
aligns to core program positioning and
creates mobile utility
Brand-Centric Rewards & Benefits
Rewards & benefits structure
optimally leverages brand assets and
experiences
Relevancy and Personalization
Create a True Value Exchange
New Balance wanted to
establish a meaningful two-way
dialogue with its most strategic
and valued customer segments,
driving valued interactions that
would increase customer
lifetime value while building
preference for the brand.
Earn on Non-Transactional Activities
Design drives strong participation
beyond purchase –resulting in
elevated engagement enabling the
program to increase member spend
and retention
Watch the full presentation at merkleinc.com
15. 15 Loyalty Outlook 2018
POLL QUESTION
How are you using the 360-degree view that you have or somewhat have? Please check all that apply.
• Personalizing messaging and offers
• Predictive analytics
• Segmentation of members
• Channel optimization for communications
• Cross-brand insights
16. Loyalty Strategy
Implement flexible test-and-learn
approaches into incremental strategy
development and assessment
Truly personalized communications and offers
Going forward, many global brands will be investing in the
development or reassessment of their loyalty strategies, but
they will be doing so armed with unprecedented levels of data
and insights to guide them. The next era of test-and-learn
loyalty will be driven by this data-oriented approach.
Re-imagining of the nature of customer interactions and the
use of data
Gain the proper alignment of differing objectives within an
organization
Loyalty Outlook 2018
40% Number Global Marketers
who see loyalty as a cost
center rather than a profit
center
37%
Percentage of Global Program
Managers
Reporting difficulty incorporating
customer data and loyalty
program data to influence
broader business decisions
48%
Number of Global Program
Managers
Experiencing difficulty
determining the right rewards,
pricing structure and ideal funding
rates
17. 17 Loyalty Outlook 2018
Case Study: Sony - Sony Rewards
Accelerate value prop
and funding via payment
and retail partners
The program will be
integrated across all core
journeys with Sony brands
(PlayStation, Pictures,
Electronics) to identify
customers and stimulate
incremental frequency and
spend
The new Sony Rewards
app is at the heart of the
new program experience
to drive content
consumption and rewards
earn and burn
Deliver a mobile-first program
driven by commerce, content
and rewards
Identify Sony consumers
and close loops activate
and drive spend
Create Sony-only
experiences for top
members
Retail, theatre, and platform partners are
critical to realizing a vision where
everyday interactions nurture the path to
purchase and create a ritual of
engagement
Entertainment experiences
exclusive to members and
driven by the excitement of
the Sony brand are at the
heart of the new program
design
Watch the full presentation at merkleinc.com
19. 19 Loyalty Outlook 2018
Kay Take Aways and Considerations
Make channels relevant and
frictionless
Create meaningful interactions
leveraging data
Implement flexible test-and-
learn approaches into
incremental strategy
development and assessment
Create
Emotions
Drive
Behaviors
Generate
Data
Inform
Action
Reward
Behaviors
Watch the full presentation at merkleinc.com
20. Creating Relationships & Motivating Behaviors
10 #MerkleSummit18| @Merkle
CREATE
EMOTIONS
DRIVE
BEHAVIORS
GENERATE
DATA (PII)
INFORM
ACTIONS
REWARD
BEHAVIORS
L O Y A L T Y
Continuity
E N G A G E M E N T H U B S
Extended Engagement
P R O M O T I O N S
Short-term Interactions
Engagement tactics suchassweepstakes,
instant wins, and contests are integrated
with media and CRM,and developed as
part of acalendar plan oftouchpoints.
1-2 Minutes of Interaction
Content hub with manyways to reward
engagement: playing trivia, watching avideo,
sharing content socially, et al. Createssustained
presencefor product launch or majorevent.
8-12 Minutes of Interaction
Traditional points-based, surprise & delight,
advocacy,and enterprise programs tied to a
multi-year customer strategy integrated into
lifestyle to inoculate customer fromswitching.
SustainedRelationships
22. 22 Loyalty Outlook 2018
Client Roster: A Few Of The Great Brands We Support
E X T E N S I V E E X P E R I E N C E I N
D E S I G N I N G , E N A B L I N G ,
A N D E X E C U T I N G L O YA LT Y
P R O G R A M S T O I N C R E A S E
C U S T O M E R E N A G E M E N T
A N D L I F E T I M E V A L U E
Experience in applying
our expertise with
leading retail brands to
enable innovative
programs across verticals
Watch the full presentation at merkleinc.com
23. 23 Loyalty Outlook 2018
Merkle Loyalty Solutions is recognized by Forrester as an Industry Leader
“Merkle Loyalty Solutions’ investments focus on
better integrating capabilities in addressable media
and CRM, enhancing platform security, and
improving the platform’s ability to support advanced
analytics, personalization, and global programs.”
“Merkle Loyalty Solutions bundles creative strategy and self-service
technology.”
“Merkle Loyalty Solutions has the capabilities to help clients more
effectively leverage loyalty data to fuel life-cycle interactions
through integration with advertising technology platforms and
larger CRM strategies.”
“Customer references like Merkle Loyalty Solutions’ creative
approach to loyalty strategy, the level of its thought leadership and
the self-service aspects of the platform,”
Watch the full presentation at merkleinc.com
24. 24 Loyalty Outlook 2018
Brands Choose Merkle for Four Important Reasons
QUICK TIME
TO MARKET
Resulting in weekly
updates with features
our clients need
Ensuring you can
aggregate and
leverage CRM/ ESP/
ERP data
Allowing the
expedient launch of
your loyalty program
INTEGRATED ACROSS
SYSTEMS
AGILE &
INNOVATIVE
Suite of capabilities,
easily accessible
through the cloud
COST-EFFECTIVE
Watch the full presentation at merkleinc.com