The glue between businesses and customers
The internet has up-ended the core dimension of business competition
Companies used to win by mastering distribution - the act of physically making a product available
The internet has made distribution a non-event, especially for digital goods where it's free
Transaction costs are now also essentially zero - eCommerce vs many stores
These mechanisms have moved the basis for business competition from distribution to user/customer retention
To win in this new dimension of competition businesses need customer loyalty
There are three core drivers of loyalty (a) having a good product, (b) being in a loyal category (replacement razors, Nespresso), (c) designed loyalty programs
Loyalty programs are therefore increasingly critical to be a successful modern business
The core loyalty program categories include (a) transactional - buy stuff, get more stuff for less (b) experiential - buy stuff, get access to interesting stuff, (c) fundamental - access our products and services easier through our loyalty program
Transactional examples: Sophora, AMEX, Coles Flybuys, Qantas Frequent Flyer
Experiential examples: Nordstrom, The North Face VIPeak Rewards, Audi
Fundamental examples: Starbucks, Disney MagicBand, Bonobos (or any Digitally Native Vertical Brand), Nike Plus
The businesses that create sustainable competitive advantages via loyalty programs do so via fundamental programs
People are bombarded with loyalty card offers and messaging and need value beyond a transaction - buy our stuff and we'll give you more stuff
Fundamental loyalty strategies don't look like a traditional "loyalty program" look at the examples given above
They require a value proposition deeply entrenched in the businesses' values that align with customer value
They are a product/service in their own right
Fundamental loyalty programs can therefore be thought of as a glue that sit above a brand's product/service that drives competitive advantage through user/customer retention
Digital agency Huge got a 400% ROI when they trialled Pokémon Go in their Café / innovation test lab. All well and good, but when you read case studies like this one - always remember the law of shitty click throughs.
In his talk at L2’s Digital Leadership Academy, Scott Galloway argues that advertising is becoming less essential to brand building as consumers are discovering products with tools like Google, Amazon, and TripAdvisor. The brand is no longer on the tip of the tongue, it’s what Google says it is. Also read TV loses grip on eyes and ads that want them
A handy guide to navigating what's coming up next in the design world. My key takeouts:
“Creativity” will become a coveted corporate leadership trait
Crooked career paths will be the norm
Data and design will make life trippy
Cross disciplinary teams will thrive
The art of the "Ramp Up" where first-time user is slowly led by the hand to loyal advocate.
This helpful study focuses on tools that are actively being paid for, or otherwise have found a place within a repeatable marketing organisation.
A good primer on interaction types (position, campaign, source) and modelling (first / last touch, position, linear, time decay).
A pretty kewl analysis and data viz of five million Instagram posts. The top brands include Apple, Harrods and Nike.
Mark Zuckerberg on his plan to bring the internet to every human on earth. This is a scary thought when you consider that missions of Facebook users have no idea they're using the internet. Remember - when more than 50% of internet users are on Facebook, Facebook becomes the internet and what currently is the internet, becomes the underlying technology.
Marketer Seth Matlins on the damage done by advertising that enforces unrealistic beauty ideals and how the Truth in Advertising Act hopes to generate positive change.
Tool of the week
Lightweight marketing automation that doesn't suck.