Ross Cockton’s Post

Transcript

OK. So in terms of what we're going to cover today, essentially we are, yeah, we're looking at loyalty programs in 2024. So what best in class looks like. So we've brought in a real mix of sort of global and international brands as well as in rage and brands, Australian Kiwi brands. And to give you a sort of a, a real good picture of what people do at, you know, the global scale or the sort of local scale as well. And we're going to give you some inspiration in terms of ideas because I think this is where you can sort of stand out. Aside from the sort of points for dollars type systems that you see, there's a few different things with experiences and services that will go through and then a few mood boards as well. And this is just in terms of design implementation. You know, you can put a lot of time and effort into thinking the plan and the strategy for your loyalty program, but it also comes down to the execution on the front end, making it really easy for customers to understand and use and redeem. And then the fourth point at the very end if you are sort of very interested and really want to get things. Even we're going to be offering one-on-one and sort of personalized workshops with brands and we'll take you through that a little bit at the end with both myself and and your pool as well. So if we go through just sort of to set the tone really and sort of where we see loyalty and, and a very top level what it means for our clients and brands and what it could mean for you. And so loyalty programs are an opportunity to learn about your customer while reinforcing relationship with them. So it's a real sort of value exchange. You need to give something to get something in return. And, and it really does. We've got a few more slides on this in terms of how you can learn about your customers, but when they're loyal engaged. Signed up the loyalty program, we'll find that there's a high propensity for them to share more data with you and also you'll capture more data through the loyalty program itself. So yeah, it's a great opportunity to learn about your customers. For retailers, you know, loyalty programs have evolved so the IT really doesn't need to be a sort of a personalized connection. The sort of dollars for the points for dollars type system still do very much work, but there's again a lot more that we can offer and really what we're looking to do when it works. Always sort of build a community and essentially build brand ambassadors for referrals and to increase our customer acquisition as well. And I think the final point overall sort of loyalty is this great tool, this sort of great vehicle that really touches all parts of your ecommerce strategy. So in terms of customer research that we've just mentioned and we'll give a little bit more information on that in the later slides. In terms of growth, so growing your existing customers and try to increase MOV conversion rate with your existing customers. As well as your retention strategy. It will essentially what we're looking to do is make loyal customers. So yeah, improve your retention strategy. There's a lot more. It does do you know, can interface from a social media point of view, from a return on ad spend point of view, your e-mail marketing. There's a lot of other areas that sort of loyalty touches. So we think it's a great thing that can sit really, you know, at the heart of your your ecommerce strategy. So that's the sort of very top level Peter at the top level. Was there anything else you wanted to add in to his at the top level? Yeah, I think when we're looking at. Loyalty programs and what we see in consumers in Australia, New Zealand specifically is that they love simplicity. So trying to keep your loyalty programs while customized and I'll go through a couple of programs today where we utilize customizations and making it really on brand. They are still quite simple, so simple for customers to use and utilize and that just helps build up that relationship, the trust and retention in itself as well. Yeah, perfect. I think, I mean, I've got to mention at the start, but we sort of look at that over 100 brands going through this process and the last couple of months. In the in terms of the execution in in simplicity, you know, we say some some sites that have a very brief explanation of lonely at the top, but then, you know, 20 FA cues. And I think that's sort of inherently says that, you know, it's not as simple as it could be I should be. So yeah, there's there's different ways to execute more certainly touch on how we can make this simple for customers to be part of and understand and use. Yeah, Peter, I know you've got some, well a lot hundreds of clients using your *****. I was. Do you want to pull out some of these statistics in terms of what can be achieved when, you know, when loyalty is done? Well, yeah. So I've pulled some information from some incredible brands, Ultraviolet and Pace Athletic. And since they implemented their loyalty, their loyalty programs, Ultraviolet specifically, saw an 198% increase in the average revenue per customer. That's an insane amount of new revenue coming through just because of the loyalty program. They're bringing those customers back again and again. And then very similar with Pace Athletic, we saw an increase of 54% of Law loyalty customers coming back. So they're coming back quicker, purchasing quicker as well. And I think that just base stats honestly speak volumes as well. I know when you're going through the sales cycle of like. Do I implement a loyalty program? It is a huge investment and that YOTPO we created a CFO's guide to loyalty so we can share this information to your CFO's and it really nuts down all the specifics of FAQ that CFO's always come to us and just helps you make that informed decision with all those all those datas right at the tip of your hands. Yeah, perfect. I mean there's a lot of mechanics to sort out with how the loyalty program works and what can be redeemed and how much we are potentially going to gain and also give away. So yeah, see if I was really have to be involved in this process and that guide is great and can give you essentially our work towards a sort of business case to get to get loyalty started in the business. Perfect. OK. We're going to sort of breakdown. Loyalty programs in terms of that type in the structure and things that you can start with and then evolve towards. So the types of systems that you'll say, you know, number one points, bit points based system, this is what you'll see. A lot of customers accumulate rewards are that they can redeem for freebies and discounts or essentially dollars as well. I'm not going to spend a huge amount of time on this. I think everyone knows what this is and probably assigned up to loyalty programs that offer you this service. We are seeing this evolve slightly in terms of gamification. To make it a little bit more fun, interesting and sort of engage customers in trying to increase their points and get up to different tiers and and increase spend. So you know, some interesting ways you can do this with double or triple points days, things like that. There's plenty of ideas that will will explain a little bit further. Inherently linked to the sort of point system, but not always is, is the sort of tiered system. And as customers either spend more or gain more points, they can move up tiers and and start increasing their benefits. The customer reward programs that give customers a goal is the higher tier, so they want to spend more to move towards it and the more exclusive and better the rewards that customers will will receive. And as I mentioned, these two are sort of quite linked, but there's certainly we have an example. There's a trade system in place, but not necessarily a point system at all. It's done on spend and that works or seems to work quite nicely for sort of premium and luxury brands where they don't want to have points based systems plastered all over the website for them over a luxury brand. And then the third side of the the the sort of the third type of loyalty program or the third element you can add to your loyalty program is experiences and services. So this is where you can really engage with the customer and have a unique point of difference. Over competitors on multi brand retailers you know if you are selling. To the multi brand retailers that sell your products as well, it means you know, you off, you are the brand, you can maybe offer services that they can't. So it really does create a point of difference and and some of the experiences that can be offered really do get that customer engaged and and become to become that brand ambassador. So yeah, we've got a few examples of these. And Peter, I know when we were doing the research looking at sort of American, European brands versus what sort of Australian New Zealand brands are doing in terms of the loyalty, there was a bit of a difference. From the sort of experiencing services side, yeah, definitely. We've been seeing again with the Australian consumer more experiences resonate with customers a lot more and the experiences are just in person events. So dinners, getting your hands on 1st releases and customers or brands I should say are executing this more and more really well and we are loving how it really brings the relationship. Mom in more essentially compared to services we do see like your free shipping and things like that, but not as popular as those experiences. I think I will mention as well shortly, one of our brands sent over their customers to Coachella, which is insane, really incredible experience for them as well. Yeah, amazing. And it really is that point of difference. That brings that connection with customers to your brand. So yeah, we've got a few ideas, but we do think this is where, you know, you can evolve to in terms of the services and experience and really aim for those brand ambassadors and improve loyalty program. Cool. OK, just to give you some sort of, I guess we want to give you a sort of strategic view of loyalty, but also some very practical things that you can do if you already have a loyalty program or if you're thinking of have gone and for a loyalty program. So yeah, number one in terms of points, I think, yeah, this is all clear and points through purchases and double or triple. Points on special days. So yeah, bit of gamification and simple things that earn points on your birthday, things like this. There's also, sorry, Ross, just to jump on that one with points we're seeing especially coming into this busy time of year, double points days, especially on Black Friday and Cyber Monday. So customers can get extra points and then they can redeem those points for rewards or coupons and things. And that is really becoming more popular as well. Perfect, that sounds good. And I guess there's other ways that brands are trying to get customers to accumulate points by leaving a review, referring a friend, follow the brand on socials, which again gets into all of the other areas outside of loyalty of sort of e-mail, social media and and referrals as well. So that sounds good. And #2 in terms of tiers, again, we've touched on this a little bit, but yeah, earn points quicker as you move up the tiers, as you change tier, receive a gift. So you're getting again, if that sort of value exchange. That you've shown you are loyal to that brand, so you give them something in return. And then as the sort of tiers start to go up, the freebie sort of increase. So you know, if, if you're on a sort of a, a bronze team might get free standard delivery and shipping. If you end up on sort of gold or platinum and you could end up with free express delivery, for example, the thresholds for free delivery can change as well. So it's, you know, free delivery across the board regardless of spend versus, you know, having to spend $100 to get to get express delivery. So yeah, there's a different. Options and things you can offer within the tiers. And then you also mentioned that, Peter. But yeah, the, the tiered system, there's a lot of sort of inviting customers on the higher ties to sales, new collections and just so you can get in sooner, especially if it's a brand that's super popular with short runs of products that you know, you can feel valued because you're getting access to that, that product range. And 1st there's also some cool brands doing sort of archive collections. Which again, uh, assault the loyal customers first on the higher tiers. And there's a really nice, interesting example from Swarovski and that have member only products. So when you get up to the sort of top tiers, there's certain products that you can get only if you're out there. They're very top tier, which is very interest. And then in terms of the experiences and services, yeah, we've mentioned sort of free shippings and free returns, longer returns period. And our new Nudie jeans, I think they increased their returns period for loyal for customer sign up for their loyalty program to make sure that the it's a good fit and it's working for you after a few tries. So yeah, increasing that returns window. And then it's the sort of yeah, that experiences free personal shopping, beauty makeovers, VIP events, dinners, exhibitions and events. Uh, competitions and then, yeah, just getting that customer engaged with time versus spend. I think is, is the very interesting part. We've got a few more examples of experience and services that you could consider because when we looked at these brands and you know, when you sign up, the news that you get 10% off and then there's a few extras that they're given. And it felt like there's a few brands already doing loyalty, but not within a loyalty program. That'd be very easy just to take the next step into that loyalty program. So here we've got quite a few. Examples that you might recognize, and if you're not doing loyalty then that can be used to turn into a bit of a program.