When we were presented with the challenge of helping one of our clients find a more efficient and effective method for defining and offering Loyalty and Rewards to their customers, we found our inspiration in American comedy of all places.

Milton Berle, who's quote is the title of this article is known as the first superstar of a new medium, in the late 1940's called television. Our inspiration for our work was found in Berle's ability to not only embrace, what at the time was a completely new medium, but to understand how it worked (and looked) for the viewer (his customer) on their little screens at home (most screens at the time were no more than 12 to 15 inches). His strategy ? Outrageous costumes (remember there was not color television yet) and a very loud speaking voice (again audio at this time on television sets was literally a 4 or 5 inch speaker. Did his strategy work? Well in 1949 his "share" (Neilson rating) was 80% of the U.S. households! Most certainly Mr. Berle understood his quote and what opportunity really means.

The only way to begin building a door…is to know how big the opening is!

We began our solution building by accessing as much data as we could find. We needed data to build an understanding of just how big our customers market and program potential could be, if we could find efficiency and effectiveness in our solution. Our understanding of the market and our customer's loyalty and rewards opportunity revealed three distinct stages of their relationship with their customers. Having identified these stages, we needed to understand as much as we could about the relationships that may or may not exist among them.

• Leads - goal is to efficiently find, and effectively transition these to Customers
• Customers - goal is to efficiently and effectively sustain this relationship as Advocates
• Advocates - the highest level of Customer relationship - demonstrated Loyalty

In our analysis of the data/facts (both our customer's and industry information) we identified correlations amongst the three stages. As an example, we found that each lead has a number of characteristics that correlate to the level of likelihood that they will become a customer. Similarly, we found that every customer has a number of characteristics that indicate the level of likelihood that they will become an advocate.

Visually, this can be explained as a linear progression with each having its unique set of characteristics; 

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The DataCo Difference

At DataCo we utilize a proprietary methodology that takes this linear correlation and in essence "turns it on itself", testing each data characteristic against every other data characteristic, for each of the customer relationship stages. In statistical speak, its multi variate regression taken to the extreme. Visually, this takes on a different form of analysis than the linear approach above;

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What our work uncovered, is that every stage of the customer relationship is an Opportunity for capturing, retaining and accentuating customer loyalty.

The inter-relationships uncovered in our DataCo Difference approach is that amongst the characteristics of each stage, there is an opportunity to manage both loyalty and rewards both more efficiently and effectively.

Building the Door!

At DataCo Solutions, we have solutions in our name because we learned early on that all the analysis and work in the world does not make a solution unless it's actionable. This understanding is what drove us to develop an actionable framework (technology and methodology) and accompanying infrastructure, to provide our clients with a way to rank or score any "opportunity" (Lead, Customer or Advocate) at any stage within their relationship, so that tactics and strategies can be implemented for their loyalty and rewards, as efficiently and effectively as possible.

Optimizing the Door

Our client utilized Salesforce to manage their customer relationship. Using the framework in place for their Salesforce platform, we developed a systematic methodology for taking in data and calculating (as frequently as daily) what we now call "DataCo Opportunity Optimization Ranking" or "DOOR score".

Upon introducing the DOOR Score to our client, its applicability transcended efficiency and effectiveness and was extremely effective at optimizing marketing channels, content and loyalty and rewards strategies, to attain a specific business objective.

Below is a simple outline of a DOOR Score Summary. The example below shows our client's Salesforce based summary with Conversion Rate as its business objective.

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Conclusion and Results

The DOOR Score has changed the way our client(s) manage their loyalty and rewards structure. In fact, it has changed the way they operate and now measure, their program.

Looking at Loyalty and Rewards as a way to Optimize a Customer Opportunity has turned the focus of their marketing from …..

Customer - Content - Content and More Content
TO
Opportunity Stage - Objective - Content and Measure

The results have been game changing for them….
• They are using less content Tailoring content to opportunity stage with a distinct business objective
• They are contacting less customers less frequently
• They are seeing increases in customer engagement (loyalty) and retention

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