Yalcin Onur, CEO of the Ketchup Group: “innovate to fit the needs of the modern customer”

Ялчин Онур, CEO Ketchup Group: «Внедряйте инновации, чтобы соответствовать потребностям современного клиента»

Yalcin Onur will be one of the top speakers at the CRM Conference that will be held in Kyiv on 3 June.

What are the challenges in the field of customer loyalty management, what should be a truly effective loyalty program, what mistakes made by companies when it is run, what channels of communication to loyalty program today become the most effective about all the subtleties tells Yalcin Onur, founder and CEO of the Ketchup Group. Among its clients Coca-Cola, Vodafone, Volvo, FIAT, banking institutions, insurance business. She focuses on projects to manage loyalty for customers in Turkey, Ukraine and the Gulf countries. Yalcin Onur will be one of the top speakers at the CRM Conference that will be held in Kiev on 3 June and will focus on effective customer relationship management.

What makes a loyalty programme truly effective for a modern company? What trends today you should pay special attention to?

Yalcin Onur: In the last 10-15 years, all the world began to pass much faster, the speed of interaction and collaborative decision making increased significantly. This applies to both themselves and the consumer mood and habits, which they will be showcasing in the coming years. It is the speed and “connectivity” of today are the most important factors for loyalty, building customer relations, after-sales service. This is the first key element that I want to draw the attention of the participants.

The second question is what the customers expect in the process of building relationships with the company? After all, loyalty is, primarily, the end result of your work. The program in itself will not make a loyal buyer. Therefore, the first step should commit the company itself, expressing its preference and the benefits that it is prepared to provide to the client. This feature is important to understand, first of all, the head of marketing.

Third, and most important factor is building relationships with customers. All of them is unique: as the relations of parent and child, communication in a large family, hangout with friends. Now in the process of building relationships business relies more on customer experience, moving from one sales process to the modeling of customer behavior. For modern companies, this means much more than creating a beautiful logo and presentations. Thanks to technology, the customer experience has become the most significant factor in transforming the mechanism of interaction between company and consumer. The third part of my report is dedicated to the customer experience, loyalty and customer relationship work in tandem with each other, and how companies are making innovation in this area, changing the traditional approach.

As the company comes to the need of implementation of the loyalty program? Is there a risk of making a mistake at the start?

J. O.: the Need to build loyalty occurs when in your segment there is significant competition and there are problems in retaining customers. But the determining factor is the time when your market or sector comes to the realization that attracting new customers costs more than retaining existing and providing them the best service. Taking out a calculator and seeing a need for the implementation of the loyalty program, many companies around the world — in Ukraine, Turkey, Europe — make the characteristic mistake of believing that investing in technology project. But a loyalty program is not just a card. Loyalty is the end result of your work. And you need to invest in the very mechanism of the program. It should fit your business, sector and market conditions. And only after that should turn to technology and to choose to do the program with personal cards or without them, to create a mobile app or not, or to do a simple paper card. Again — first mechanics, then all the technological aspects. This is the main mistake most companies failing to understand the essence and structure of loyalty programs, they turn to technology in the hope that they will bring results. But this isn’t happening.

What customer needs addresses loyalty program and how to correctly build it in modern conditions?

J. O.: Long time loyalty programs were an attempt companies to “re-purchase” their clients, this practice in sales has been used for over hundreds of years. In the 80s we saw a vivid example of such a program in the form of “miles” from American Airlines. But today people perceive loyalty differently. Changed the context itself: it is all about speed. Customers will no longer patiently wait until the company will give them the fact that was accumulated over a long time of use. They want to see how the company is attentive to them and ready to solve their problems, and how quickly. Do I really give the opportunity to feel like a valuable customer or I exist only in the form of numbers in the presentation under the heading “Valuable customers”? Between the expectations of the buyer’s vision in the face of the marketing Director there is a big gap. If you want to build a working loyalty program, do not give the customer the points for which he will not be able to buy anything. Give it a simple and memorable experience that will benefit both sides. For most of my customers the client – is nothing more than a number in an Excel table or an ID of the client in high-cost technological system. This is a road to nowhere. In my presentation I will provide examples of how improving the customer experience in loyalty programs allows us to move in a new direction.

What was the main secret of success of a good loyalty program.

J. O.: You need to surprise people. Today the consumer is in possession of too many channels in which gets an excessive amount of information from countless companies. A simple example: in the morning at the weekend in less than 3 hours I about 20 times checked the mobile, several times went to the social network, turned on the TV, game console — each of these carriers transmits a message from a specific company. About 25-30 years ago was dubbed the concept “world in the mind of the consumer.” Now, this world no longer exists, because in my head any more does not remain places. The client has lost the ability to passively take in information, how he’s changed and his environment. The only way to “reach out” to people, to enrich their experience – to surprise them. So today we are going to see more custom moves.

Is there a common metric for loyalty programs? As marketers and business owners to evaluate their effectiveness?

Y. O.: For different markets, industries, and countries different metrics. The most obvious indicator tracked is the index of consumer loyalty (NPS) showing commitment to your product or company, willingness to recommend her services to others. If you are creating a loyalty program, it is necessary to attract more customers. Thus, the first metric can be considered as how much your customers are involved in the program, how much are you active link, how many of them you can surprise. Further it is necessary to determine NPS for those customers who participate in the program and what for those who are not involved. It is important to understand that the benchmark in this case is purely within your company, and not compared to the outside, formed on the basis of experience of other companies and sectors.

What channels of communication to loyalty program today become the most effective?

J. O.: the Main trend is mobility. On the Turkish market, which in some aspects is ahead of Europe and the United States, today there is an active migration of loyalty programs to the mobile environment. Soon all the physical card will disappear, and the main channel, which will be “live” all loyalty programs will be mobile phone. The consumer uses a smartphone almost constantly, searches and compares the competitive deals that comes with it shopping areas, doing the cash transaction. It is therefore logical that the main point of contact and transformation are not maps, not Internet, and mobile devices. The growth of the business build loyalty will be directly related to the increasing mobility of consumers and the loyalty program will contain more content is generated for specific purposes.

What will be relevant in addition to the General trend of mobility users?

J. O.: Great interest the services of micro-geolocation. We will also see more mobile payments with loyalty programs. More obvious will be the implementation of social responsibility, for example, in the form of transfer of accumulated points to charity. However, the most relevant trend for loyalty programmes as a whole will offer a unique experience. If we talk about reducing costs, it is possible to give customers an experience like this is much more efficient than to give them simple physical gifts.

Can we say that certain industries and companies more receptive to loyalty programs?

Y. O.: For many of them this implementation is mandatory, “subject of care” for businesses. This group includes mobile operators, banks with their card-based products, major retail food chains with high turnover and high competition, distributors of petroleum products, etc. Also there are industries that loyalty is not as necessary, but companies prefer to implement, to further promote your business. It insurance companies, car dealers and service companies. The third group uses loyalty programs exclusively to stand out in your market. These include, for example, producers in the food group. In fact, Coca-Cola does not require a loyalty program, but they are implementing it to further emphasize their status.

What was the most memorable experience of implementing loyalty programs.

Y. O.: For me one of the key projects in the business was to work on a mobile loyalty platform for Vodafone. Also interesting, although very painful, can be called a project for a large shopping centre. The fact that I prefer to do projects is not the way it was done before me. It has good and bad sides. Often it is necessary to overcome the challenges associated with the peculiarities of operating activity of the companies to further innovate. I admit, I don’t like to program standard form – “let’s make cards and let’s add the points”. I like to create a new model that people will accept and will follow it in the future. For some such an approach is unusual.

What areas of the business most attractive to you in Ukraine?

Y. O.: For me it is primarily a question not of the industry, and the relationship to the business and willingness to innovate. I love working with banks and mobile operators. But the company in the first place, should be ready for a change and as a goal to see not largest market share, and the willingness of other companies to follow you. In this case, my efficiency will be maximum.

What would you like to wish the participants of the CRM Conference?

J. O.: don’t be standard. Create. Innovate to meet the needs of the modern customer. And today I will tell you at the conference.

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