Ryan Massimo, Director, Customer Strategy & Loyalty, Dell, participated in a compelling Q&A with Loyalty360 after Dell earned the Best Use of Customer Insight or Voice of the Customer in Loyalty Marketing, Bronze Winner at the inaugural Loyalty360 Awards at the 7th Annual Loyalty Expo, presented by Loyalty360 – The Loyalty Marketer’s Association.
Q: How has the measurement of your customer strategy changed today versus three to five years ago? How does the challenge of new technologies and ROIs play into this?
As our company continues to grow, so does the amount of data we have to sort through to gain customer insights from. There are so many ways to look at purchase behaviors it is easy to get overwhelmed so we’ve learned to stay focused and hone in on the data that will tell us the most for our loyalty program−such as cost of acquisition, retention and customer feedback. Once we have those three data points, we can decipher what to act on or improve. While the analytics have gotten more sophisticated, we have to remember, at the end of the day, our goal is to delight our customers.
Q: The challenge with many customer strategies today is the complexity and multi-channel integration can be significantly more expensive and more difficult to implement than traditional programs. How challenging was that to sell internally or has the investment in said initiative increased in line with return?
With Dell Advantage specifically, we took a stair step approach that helped us prove out our strategy as well as advocate for the program using real results we could pull in real-time. Nothing speaks louder than customer feedback so we kept this as the foundation of our program, designing a vision for our program based on this feedback. Next we launched a pilot with a small population of customers testing components of our vision that we obtained from focus group feedback. From here, we tracked results and amplified key results with the company’s stakeholders. With those insights and positive program feedback in-hand, we were able to advocate for more funding and to expand our program based on our success.
Q: How much of the evolution, design or redesign of the strategy driven is by competitive pressure, voice of the customer, or internal interests? Which of the three has had the most “impact” on your program (based on your internal metrics)?
The evolution of our program is driven first and foremost by the voice of customer. In addition to direct customer feedback, we also measure how our customers engage with our program. For instance, we offer monthly exclusive offers to our Dell Advantage members. The popularity of this monthly campaign has shown us that our member base really enjoys this level of exclusivity. We certainly watch the industry and of course, keep our pulse on internal interests as well but ultimately, it is the voice of customer that has helped us to evolve our program to better meet the needs of our customers.
Q: If you had to narrow it down to one thing, what do you think has led to your success?
One word: Simplicity. Dell Advantage has a simple value prop that both draws first-time customers, such as free 2nd day shipping, as well as incents loyalty and return purchases with a clear reward value in 5% cash-back. We find with this value prop top-of-mind, customers are more open to our entire portfolio of products beyond what they initially turned to us for. It increases awareness for both those customers and their networks through word-of-mouth.
Q: How have you worked toward creating internal alignment and buy-in for your loyalty strategy and execution?
We constantly celebrate and amplify our strategy and results with key internal stakeholders. The simplicity principle we apply to our strategy and in communicating to our customers resonates across our business as well. The rewards concept comes with a lot of complexity both in terms of the technology to execute it and internal financial systems to deliver it so it is important we communicate our value prop and success to our business partners so they understand what we’re working towards and that the program is worth the investment.
Q: What role does personalization play in your strategy? How important do you think it is to nail personalization for a successful loyalty initiative?
Personalization is extremely important. We like to ensure our customers understand we are constantly evolving our program to meet their needs and interests. When we are able to send personalized offers, we tap into their emotional response and raise awareness of our full catalog. We are currently working toward increasing personalization in our online store suggesting technology based on previous purchase/browse behaviors and rewards balances.
Q: We’ve heard marketers say it’s difficult to differentiate from the plethora of loyalty programs available today. How do you approach differentiating from competitors?
I said it once and I’ll say it again: simplicity. Our differentiation revolves around a simple value prop that helps our customers connect with a broad offering of electronics and services. In addition, we are vocal about the benefits they’ll receive and what they can expect.
Q: How and how often do you evaluate your strategy for possible enhancements or revisions?
We evaluate our strategy every day. While our core value prop remains consistent, we are always looking to ensure we have the best offer for our customers while balancing profitability for Dell.
Q: How is the performance of your loyalty strategy measured?
We measure the performance of our loyalty strategy in purchase frequency and return visits. We want our customers to feel comfortable turning to Dell.com for all their technology needs. We measure repurchase frequency both within a short term period and long term retention. We also look at conversion and of course customer feedback.
Q: How do you stay on top of and evaluate new technology related to platforms, data, user interfaces, etc., given its rapid proliferation?
Personally, I like to experience other loyalty programs first hand by joining many! I encourage my teammates to do the same because there is no better way to spark innovation than experiencing something first-hand. Our entire team keeps their pulse on the options out there and how other loyalty programs are evolving with technology as well as their resonance with customers.
Q: What is the biggest challenge you currently face with your loyalty initiatives and how are you addressing it?
After seeing strong results in a short period of time, our biggest challenge moving forward will revolve around enhancing and expanding the program in a way that is consistent with our value proposition. It is our goal to keep Dell Advantage extremely relevant to our existing loyal base as well as continue to draw new members in−ultimately getting more and more people to engage with Dell.com. We are also contemplating how we can expand the program to other customer segments where it would be of value such as our Small Business customers. And, of course, taking the program global is also a key priority for us (last October we launched the program in Canada). In our goal to take the program global we are working through many different variables such as customer needs by region as well as functionality–all the while ensuring our value prop is relevant and pleases both our customers as well as drives profitability for Dell long-term.
Q: What is your advice to a company creating its first-ever loyalty initiative?
Lead with your value prop but don’t forget to listen to your customers–they will tell you what they want to see and you can gage their interest in the process. From here, look at the technologies currently available and that will be best at advocating for your needs. Start small, but keep your long-term goals in sight.