CRM - June 2008 - (Page 26)

they’d better appreciate a free dessert or a free appetizer. With technology from Chockstone, an Oregon-based provider of loyalty marketing platforms, Chili’s performs analytics using behavior-based and demographic information to present well-tailored promotions. For a customer who only comes in during dinner, sending a lunchtime promotion may be just the incentive needed to drive an expansion of habit. Equipped with this granular information, restaurants are well-positioned to serve up a great experience and fortify the customer bond. ENSURING BENEFITS REACH REAL CUSTOMERS Subway, the fast-food restaurant chain, used to have a primitive loyalty program of paper cards and stamps. After accumulating a certain number of stamps, cus- tomers were rewarded with a free sandwich. The program soon became derided as the “Friends and Family Free Sandwich Program,” according to Jeffrey Lipp, chief executive officer of Chockstone. Employees would steal rolls of stamps and either share them with friends or sell them on eBay. When Subway executives finally caught onto this scheme, they realized it was time for a program overhaul. After the paper-stamp fiasco, Subway converted to a technology-based platform where discounts are printed on the bottom of each receipt. With Chockstone’s real-time analytics software, Subway knows that a particular customer has been coming in, say, once every 15 days for the past six months. This then triggers a reward unique to that customer— perhaps an offer that gives her a free bag of chips if she comes back within the next five days. Historically, restaurants have only really been able to present discounts anonymously, but now, Lipp says, technology is enabling the systematic generation of customer-centric offers. NO MONEY, JUST DATA Without explicitly asking customers about their personal desires, companies can increase loyalty by engaging consumers through feedback surveys and evaluations. Cottle asks companies to think, “How can we get them to connect with us with their hearts, and not because of a few points?” The answer, he says, is for companies to reach out for customer insight, and then ensure that the consumer knows the information is going to be acted upon. If feedback inspires change, the customer should be told exactly how the input contributed Loyalty from the Inside Out If your employees aren’t loyal, it’s hard to imagine your customers will be. Dianne Durkin, president and founder of consultancy The Loyalty Factor, says younger employees are notorious for job-swapping— and, as with customers, it’s far more costly to acquire and train a new employee than it is to retain an existing one. It’s imperative that a company hire people who fit its culture, and invest in the “little things” that will entice them to stay. “The two most underutilized words in the English language are ‘thank you,’” Durkin says. Forget high salaries and bonuses; employees really want appreciation and recognition. Whether it’s a simple “Good job!” or a handwritten note placed on a desk—no emails!—the personal touch makes employees feel not only relevant but important. Given today’s high turnover rate, employers need to understand what does contribute to employee loyalty. Durkin ranks the top factors, in order of descending importance: • Vision and purpose: Make sure employees have a solid grasp of company direction and what they contribute to the corporation. • A learning environment: Provide an opportunity for growth and responsibility. People have a short attention span; they’ll be more likely to stay if they’re challenged with new and interesting projects. • A fun environment: The workplace has to be an enjoyable space to interact with others. Staffers will treat each other (and customers!) better. • Modern technology: Employees using advanced technology outside of work expect the same at work. • A good salary: People need adequate compensation for the work they’re doing, but it’s not foremost among their concerns. Southwest Airlines is one of the few airlines to make it to the top of the consumer-loyalty list, in part because its employees are extremely happy as well. When Durkin asked why they choose to stay, employees responded, “Because this is a company that loves us back.” Passengers, in turn, say humorous crews and in-flight games make Southwest a joy to fly. “If you’re a businessperson on one of these flights,” she says, “don’t plan on doing any business.” (She means that in a good way.) Some firms have even embarked on rewards programs for employees. Points can be awarded to recognize achievement or as a display of gratitude, and can be redeemed for rewards at the company store. Before launching any programs, Durkin suggests asking these essential questions: What is the level of pride and commitment in the firm? What are the firm’s top three strengths? What are its top three areas of development? What do you personally need to increase your productivity and efficiency? What is the one message you’d give to your firm’s leader? Those answers will help develop the appropriate programs that will drive employee—and then customer—loyalty. —JT www.destinationCRM.com 26 CUSTOMER RELATIONSHIP MANAGEMENT | JUNE 2008 http://www.destinationCRM.com

Table of Contents Feed for the Digital Edition of CRM - June 2008

CRM - June 2008 Contents Front Office Reality Check Customer Centricity The Tipping Point Making Mashup Masterpieces Trouble in the Air CRM on Twitter Is SaaS Ready for Its Contact Center Close-up? CRM: In the Public Interest Required Reading Lollipop Loyalty Best Practices Series: CRM & eCommerce eGain NetSuite Infor Longwood Software Vovici The Second Coming of 2.0 Believe the Hype About Hosted Contact Centers All Talk So Hot It’s Cool Linksys Gets Shaken, a Community Is Stirred The Risky Risk Business Awana Hears a SaaS Sermon Secret of My Success Re:Tooling Scouting Report Pint of View

CRM - June 2008

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