Pres:Digital Marketing - Loyalty Management en CRM

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Digital Marketing - Loyalty Management en CRM

Digital Marketing - Loyalty Management and CRM

Title Digital Marketing - Loyalty Management and CRM
Target group Students, Beginners
Topics Loyalty Management and CRM
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Public summary

This presentation discusses customer loyalty and customer programs. First we zoom in on what customer loyalty is and how it can be measured. Loyalty programs can help increase customer loyalty but be aware that they only make sense if the basics of the value proposition is okay. No loyalty program can fix bad service. The different kinds of loyalty programs are discussed as well as how to set one up. We conclude with the Zappos case; the company which is in all likelyhood the most customer centric company in the world.



This is the overall framework of the Digital Marketing couse. We will start with explaining the elements of an online marketing plan. Than we will zoom in on the different marketing aspects based on the customer journey. We start with those online media most suitable to reach consumers and slowly move down the funnel. In the end we discuss customer loyalty which has as goal to re-start the entire process from the beginning.

  • What is Loyalty Management?
  • Measuring customer value
  • Keeping customers
  • Loyalty programs
  • Measuring loyalty
  • Customer centric cultures
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“Aligning all marketing, promotional and distribution channels to consistently deliver on the brand’s promise to its repeat customers”.

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  • From a business perspective:
    • An existing customer that is frequently buying
  • From a customer perspective:
    • Willing to order from you before going somewhere else
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Customer retention is a marketing technique that can pay off easily:

  • Probability of selling to a new prospect: 5 – 20%
  • Probability of selling to an existing prospect: 60 – 70%
  • If you can prevent 5% of your customers from leaving, you can increase your bottom line profit by 25 – 95%.

Short-term benefits:

  • Tends to spend more per order
  • Less effort to convince a returning customer

Long-term benefits:

  • Word of mouth, valuable references
  • Marketing costs are lower, improved ROI
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  • To which companies are you loyal?
  • Why?
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Interrelationship between Recency, Frequency and Monetary value depends on the business you are in.

How would the RFM model of buying groceries differs from buying a car?


CLTV = Total level of sales and payments – marketing costs

  • Attitudinal loyalty
    • A weak relationship
    • Many perceived alternatives
    • Changes in needs
  • Behavioral loyalty
    • No consistent messages
    • Not matching expectations
    • Customer service agents can make or break the relationship
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  1. Get to know your customer
  2. Set up dedicated promotion
  3. Identify problems
  4. Show your brand credibility
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  • Which loyalty programs do you use?
  • Why? What are their benefits?
  • Do you feel really loyal to these companies?
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  • Points
  • Spend
  • Tiered
  • Subscription
  • Punch
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Each loyalty management system has four main drivers:

  • Program Management

How is the program set up, what is the concept and what does the proposition look like? How do we set up the campaigns and which alliances can be build?

  • Reward rule management

How do we reward the members, what is the financial bandwidth, what type of promotions do we allow, etc.

  • Membership handling

Do we recognize different types of members; new entries, active members, growing – stable – declining members. If we can match the members to our own customer base we get an aweful lot of additional insights which can be used for further segmentation.

  • Processing engine

We need to make sure that points (or credits) are registered and processed in a quick and smooth manner so that we can always immediately check the balance and know what the total credit per member is.

A good loyalty program consists of much more than only the program itself. Also the processes and systems to support it.

Create your own loyalty program:

  • Select a company that does NOT have a loyalty program
  • Design a loyalty program
    • For which target group?
    • What are the benefits?
    • How can these be achieved?
    • Explain your choices.
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  • Sales results and development over time (compared to others)
  • Satisfaction surveys
Example customer satisfaction survey.png
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Total of 210 customers 100 promoters, 30 passives and 80 detractors

100-80 = 20 Net Promoter Score is 20 / 210 = 9,5%

There are 9,5% more promoters than detractors.

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  • Basics: loyalty programs, customer retention / churn, first / repeat / loyal customer
  • Advantages: higher spend per customer, more returning, less marketing costs, word of mouth.
  • Loyalty management: customer identification, RFM & CLTV model, NPS.
  • Loyalty programs: program managmeent, rewards rules, membership handling, processing engine.
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