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The future of customer loyalty: Insights from Nectar
Andrea Sophocleous, Event Reports, ADMA Engage, November 2013
This event report draws on insights from Nectar, the loyalty card programme, into how the relationship between consumers and brands is changing.
This event report draws on insights from Nectar, the loyalty card programme, into how the relationship between consumers and brands is changing. In order to retain the trust of shoppers in the digital age, marketers need to emphasise four areas: transparency (particularly regarding data collection and use); added value (ensuring customers get a fair exchange for providing their personal information); control (by allowing shoppers to opt in or out); and trust (building confidence in a company's privacy credentials). While most brands have improved their capabilities in the areas of choice, value and convenience, they also now need to enhance the experience on offer, reflecting the personalised service that shopkeepers provided in the 1950s.
Discriminating between behaviour using market data from panels
Hsiu-Yuan Tsao, Leyland Pitt and Colin Campbell, International Journal of Market Research, Digital First, August 2013
Considerable research exists on stochastic models of switching behaviour that uses sequences of individual-level purchase data.
Considerable research exists on stochastic models of switching behaviour that uses sequences of individual-level purchase data. While at the individual level, sample size and sequence length are limiting factors, at the aggregate level, heterogeneity with respect to purchase sequences may assist in interpreting results. The authors propose an approach to discriminate between the switching behaviour of variety seeking, indifference and reinforcement. Only the proportion of 100% loyal customers, market share data and an estimation of the promotional effect - information all available from consumer panel data - are necessary to fit the model.
The effect of engagement with social media on purchase behaviors
Edward Malthouse, Mark Vandenbosch, Su Jung Kim and Bobby Calder, ESOMAR, 3D Digital Dimensions, Boston, June 2013
This paper investigates whether the contribution of user generated content (UGC) in social media competitions affects consumer purchase behaviour, and then attempts to calculate the return on investment.
This paper investigates whether the contribution of user generated content (UGC) in social media competitions affects consumer purchase behaviour, and then attempts to calculate the return on investment. The paper also attempts to identify the key components of an effective social media competition, and investigates if there are any long-term effects on consumer buying behaviour. Data is analysed from two social media contests for Canada's Air Miles Reward Program (AMRP), one of the largest loyalty programs in the world.
A fork in the road: How brand loyalty could either be enhanced or diminished in the digital transition
Martin Hayward, Market Leader, Quarter 3, 2013, pp. 47-49
This article explores a variety of future scenarios and their likely effects on brand loyalty. The ongoing digitisation of everyday life is providing marketing with opportunities to exploit the many new ways that are emerging to interact with customers in a timely and intimate way.
This article explores a variety of future scenarios and their likely effects on brand loyalty. The ongoing digitisation of everyday life is providing marketing with opportunities to exploit the many new ways that are emerging to interact with customers in a timely and intimate way. However, as with every previous revolution in customer data and channels, there is a dilemma: will these new possibilities provide long-term benefit for brands and customer relationships, or will they be used for short-term promotional activity that is ultimately destructive? The author concludes that future marketers should all be striving for the building of real relationships. In this scenario, winning companies build deep, trusting, long-term relationships with customers, who in turn share their precious data to deepen the relationship yet further.
Brand loyalty: Time for a rethink
Mignon Buckingham, Admap, June 2013, pp. 44-45
This article looks at how customer loyalty is shifting in the UK, US, Brazil, China and India. Brands need to review how they are delivering value to their audience across channels; equally, they need to have an integrated strategy to deliver a seamless experience regardless of the touchpoint.
This article looks at how customer loyalty is shifting in the UK, US, Brazil, China and India. Brands need to review how they are delivering value to their audience across channels; equally, they need to have an integrated strategy to deliver a seamless experience regardless of the touchpoint. Across all countries, rewards are the most important driver of loyalty and remain a core currency of any loyalty strategy, with customers wanting more instant and flexible rewards. Loyalty does have a commercial impact, with an average of 72% of consumers confirming they would make a future purchase from a brand to which they are loyal. However, on average, 71% of all consumers are still willing to switch to a competitor.
Big Data, Better Decisions: How does business intelligence drive change in the Chinese automotive market?
Tiger Lee Weihan, ESOMAR, Automotive Research Forum, Wolfsburg, May 2013
This paper shows the process of generating an automotive customer repurchase model of customer relationship management in China, based on data warehousing after data integration.
This paper shows the process of generating an automotive customer repurchase model of customer relationship management in China, based on data warehousing after data integration. China has become the world's largest automotive market, but only in the new sales market. For most Original Equipment Manufacturers (OEMs) and dealers, new vehicle sales lead to a better market share and greater revenue, while after-sales deliver the main source of profit: after-sales profit margins are five to ten times higher than sales profit margins. Customer loyalty is key to avoiding customer churn and the model proposed in the paper offers a new solution for marketers to attract more customer loyalty in China's rapidly growing after-sales market.
New Opportunities in Austerity: RAPP on UK consumers' shifting recession habits and trends
Tom Bristow, Event Reports, RAPP, April 2013
This report summarises latest findings from a research project undertaken by ad agency RAPP, which aimed to find out how UK consumer spending habits have changed in response to the recession and subsequent government cuts, and what opportunities there are for brands to occupy the new niches that are emerging in the economy.
This report summarises latest findings from a research project undertaken by ad agency RAPP, which aimed to find out how UK consumer spending habits have changed in response to the recession and subsequent government cuts, and what opportunities there are for brands to occupy the new niches that are emerging in the economy. The research showed that the spendthrift habits RAPP first identified in its 2010 study – such as households cutting certain items out of budgets or downgrading to cheaper versions of the same product – have become much more pronounced in the last two years. Clever companies have found ways to attract and keep these newly discerning shoppers both by introducing a new generation of highly personalised loyalty schemes, and by providing top quality customer service.
Towards a better measure of customer experience
Philipp Klaus and Stan Maklan, International Journal of Market Research, Vol. 55, No. 2, 2013, pp. 227-246
Defining and improving customer experience is a growing priority for market research because experience is replacing quality as the competitive battleground for marketing.
Defining and improving customer experience is a growing priority for market research because experience is replacing quality as the competitive battleground for marketing. Service quality is an outgrowth of the total quality management (TQM) movement of the 1980s and suffers from that movement’s focus on the provider rather than the value derived by customers. Researchers today state that customer experience is generated through a longer process of company–customer interaction across multiple channels, generated through both functional and emotional clues. Our research with practitioners indicates that most firms use customer satisfaction, or its derivative the Net Promoter Score, to assess their customers’ experiences. We question this practice based on the conceptual gap between these measures and the customer experience. In IJMR 53, 6 (2011), we introduce a new measure appropriate for the modern conceptualisation of customer experience: the customer experience quality (EXQ) scale. In this article we extend that work and compare EXQ’s predictive power with that of customer satisfaction. We establish that EXQ better explains and predicts both, loyalty and recommendations, than customer satisfaction.
InterContinental Hotels Group: How personalization is driving growth
Low Lai Chow, Event Reports, Loyalty World Asia, December 2012
This article outlines how InterContinental Hotels Group adapted to changing consumer lifestyles and a demand for more personalised messaging.
This article outlines how InterContinental Hotels Group adapted to changing consumer lifestyles and a demand for more personalised messaging. A new loyalty platform, LoyaltyConnect, was established to serve as a 'centralised repository' for transactions, CRM and to allow the hotel group to segment its members. Personas were then created for the most valuable segments, so hotel staff could quickly identify those guests who should be enrolled. IHG reports that personalising messages based on segment analysis has delivered strong results.
How Shangri-La relaunched its loyalty scheme around 'family'
Low Lai Chow, Event Reports, Loyalty World Asia, December 2012
When luxury hotel brand Shangri-La relaunched its Golden Circle loyalty scheme it decided it wanted its guests to be welcomed 'as part of the family'.
When luxury hotel brand Shangri-La relaunched its Golden Circle loyalty scheme it decided it wanted its guests to be welcomed 'as part of the family'. This article explains how rewards were introduced alongside previously existing recognition and exclusive benefits. The scheme's CRM capabilities were also enhanced to allow for more data mining and improved marketing, while promotions encouraged members to upgrade to more elite membership tiers. Golden Circle numbers have increased by 1.5 million, with members staying longer and spending more
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Customer Relationship Management
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Customer Relationship Management
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Loyalty and reward cards
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