Last month we hosted our first Loyalty Forum, an event designed to bring experts together in one room to discuss latest insights and trends with Loyalty. What struck me most in the run up to the day was the amount of speakers and attendees who told me that this was a first. Amongst the many CX and Customer Engagement conferences, there really does seem to be a lack of – and a big appetite for – an event focused on Loyalty first.
Spending time talking to attendees and hearing from our excellent guest speakers - Jo Causon (Institute of Customer Service), Elizabeth Cunningham (Loyalty Travel Expert), Richard Levy (Moneygram) and Rob Chandler (Sky) – it was clear that often the challenges and opportunities with Loyalty were common across brands and sectors.
Our new Loyalty Model, presented by Motif’s Kevin Ford, also added to the discussion around Loyalty being the critical driver of business performance. Much more than retention, the stories from our speakers and our new insight points to loyalty as a driver of customer acquisition and spend– delivering increased sales, market share and profit.
My key take outs of the Forum were:
Brands need to show loyalty if they expect customers to be loyal.
Richard and Rob both talked about the importance of rewarding Loyalty. Even in commoditised markets, and in sectors where switching is rife, brands who show customers appreciation and reward and show they have a desire to get closer to customers, can build more long lasting relationships.
NEVER UNDERESTIMATE THE EMOTIONAL CONNECTIONS BRANDS CAN MAKE
Loyalty is about the rational and the emotional. There are huge opportunities in the way that brands can get closer to customers, and build emotion-led ‘magnetic’ relationships. A new way of understanding Loyalty, incorporating 5 ‘building blocks (Quality, Value, Sharing, Closeness & Magnetism), means that brands can now measure and improve the most important measures influencing retention, acquisition and share of wallet. Particularly with the latter, where we see emotional connections driving customer spend more than anything else.
LOYALTY IS alive and kicking
Loyalty is the new competitive differentiator. In a world where customers have ample choice and switching has never been easier, brands need to focus on increasing Loyalty. Of course, to retain existing customers. But it’s really about growing market share and volume of highly profitable customers. For the first time, this can be accurately measured and correlated with actual financial performance.
So all in all, we had an excellent discussion on Loyalty. Our speakers treated us to a wide range of insights that told me that we’re only at the tip of the iceberg. Rewarding Loyalty is as vital as ever. Measuring Loyalty is critical. As Rob commented ‘It really feels like we’re hitting a point of transition and transformation for the loyalty industry’.
Thanks to everyone who came along. For those who couldn’t make it, have a look at www.thisismotif.com/loyalty-matters-1 for photos of the day and a 4 minute summary video.