Where Our Loyalties Lie Presentation
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The presentation by Rebecca Huntley and Brett Tucker discusses the concept of loyalty, emphasizing that loyalty is fundamentally about relationships, particularly with family and close friends. It explores various forms of loyalty, the impact of personal connections in customer service, and the economic aspects of loyalty across different sectors such as banking and retail. The findings suggest that personal loyalty consistently outranks loyalty to brands and products, with significant implications for businesses aiming to foster customer retention.
![Reciprocity and trust are keyIts a two way street[Loyalty] has to benefit both parties to some degree. It doesnt have to be financial or whatever, but it has to be some benefit. Being trustworthy underpinned this reciprocityTrust and loyalty and respect. You cant have one without the other really. You need both to have loyalty. This mutual exchange brought with it comfort and securityIt gives you a good feeling, satisfaction. A level of comfort and security.](https://image.slidesharecdn.com/whereourloyaltiesliepresentationsydneyv2-13049057362097-phpapp01-110508205121-phpapp01/85/Where-Our-Loyalties-Lie-Presentation-11-320.jpg)
![Service keeps us loyalI have loyalty, in terms of products or consumables, if in the service I get something back that I think is above and beyond. Loyalty is to individual sales staffI think lots of companies dont nurture that loyalty [to staff]. Because you are more loyal to a person than you are to a product. You might shop at Target because you have had a good experience in the past. But I went in there to buy a few things and got shocking service. So they are on the blacklist now. One bad experience could dismantle previous loyalties](https://image.slidesharecdn.com/whereourloyaltiesliepresentationsydneyv2-13049057362097-phpapp01-110508205121-phpapp01/85/Where-Our-Loyalties-Lie-Presentation-14-320.jpg)
Where Our Loyalties Lie Presentation
- 1. Where Our Loyalties LieRebecca Huntley Director, The Ipsos Mackay ReportBrett TuckerMD, Ipsos Loyalty
- 2. Where Our Loyalties Lie PresentationWhats on for todayThemes from The Ipsos Mackay Report research findings Loyalty is about relationships Review Where Our Loyalties Lie Survey companion piece from the Ipsos Loyalty team Section 1 Customer, Employee and Personal Loyalty Section 2 The Economics of Loyalty Q&A and discussion
- 3. Meet the Presenters Ipsos Loyalty MD with 12+ years of MR experience with focus on customer satisfaction and loyalty research Prior to Australia, Brett was with Ipsos Loyalty in the US designing, implementing and managing Loyalty programs for companies like Microsoft, US Bank, Diners Club, MSN and Yahoo!. Prior to joining Ipsos, Brett was a Senior Consultant with Harris Interactives Customer Loyalty division BS from the Univ. of Washington (United States) with emphasis in marketing and org behavior.Brett TuckerDr Rebecca Huntley is a researcher and author with a background in publishing, academia and politics. She holds degrees in law and film studies and a PhD in Gender Studies. Rebecca is the Director of The Ipsos Mackay Report, now in its 33rd year. She is the author of two books, The World According to Y: Inside the New Adult Generation and Eating Between the Lines: food and equality in Australia.She is a sought after commentator on social trends on radio, in print and on televisionDr. Rebecca Huntley
- 4. Ipsos in AustraliaIn Australia, Ipsos opened its doors in 1999Since then, Ipsos has acquired TQA, Mackay Report, and Eureka Strategic ResearchIpsos Australia also owns the largest fieldwork companyin Australia, I-View. I-View employs over 1000 qualified market research interviewers with expertise in Door-to-Door, Central Location, Telephone, Mystery Shopping and Audits. ISO 20252 for Market ResearchIpsos publishes the widely publicised Ipsos Mackay Report and has recently been selected to conduct Australias second major readership surveyIpsos now has four offices in Australia (Sydney, Melbourne, Brisbane and Canberra) and approximately 130 full time employees.
- 5. Where Our Loyalties LieRebecca Huntley Director, The Ipsos Mackay Report
- 6. Themes from our research findings
- 7. Loyalty is about relationshipsThe only thing you feel obliged to be 100% loyal to is your family.
- 8. Intimate relationships set the benchmarkAgainst which all other forms of loyalty are measuredEndures through thick and thinIve got a friend that I went to school with and we might not see each other for forever. But when we get back together its like we never left, we pick up the threads instantly.If you come back to where loyalty is in your everyday life, its your family. Thats the only loyalty you can really trust. Its the one that doesnt shift. Periods of adversity or absence the greatest test of its strength
- 9. What can Corporate Australia learn from the local caf辿? You go back to the same caf辿 when you know them and they know you. Im loyal to my local caf辿. Ive been going to the same one for over six years. The thing about a business, like my caf辿, knowing your name is really important to me. It makes people feel good so theyll keep coming back. I have some friends who go to the same caf辿 even though the food and coffee is terrible, but they keep going back because theyre loyal. The owners are really nice and know them.
- 10. Loyalty can extend beyond familyBetween employers and employees Im very loyal to my boss because he is very loyal to me. He treats me very well, and loyalty, it doesnt work one way, it works both ways.Clients and customers Even at work we are loyal to suppliers over price. There is a good relationship there. And we can rely on them. They are always there when they say they are going to be there. Thats massive.Personal services (doctors, dentists, hairdressers) Im more loyal to people friends and family. Or if I know the hairdresser, I stay with her. Its all about people. Thats why I dont care about supermarkets, theres no contact with people.
- 11. Reciprocity and trust are keyIts a two way street[Loyalty] has to benefit both parties to some degree. It doesnt have to be financial or whatever, but it has to be some benefit. Being trustworthy underpinned this reciprocityTrust and loyalty and respect. You cant have one without the other really. You need both to have loyalty. This mutual exchange brought with it comfort and securityIt gives you a good feeling, satisfaction. A level of comfort and security.
- 12. This elasticity of loyalty also extends to The churchLocal businessesI like to be loyal to my church because it is where I grew up, where my spiritual family is, where my interest is. I want to be loyal to my church. Ive decided it is my spiritual house and I will be loyal to the end. I go to my local greengrocer, not the supermarket. You pay more, but you get conversation so you stay loyal.Cafes, pubs & restaurantsIm loyal to my local coffee shop. They know me there.
- 13. Loyalty to brands varied enormouslyCarsSome people are loyal to cars. My neighbour will only ever buy Holdens. Wont buy Ford. Hates Fords. Actually hates them.TechnologyIm loyal to my Mac. Ive had like four iPods. My loyalties have changed. I used to be a Playstation man but then Xbox brought out Fable and I have been Xbox ever since.
- 14. Service keeps us loyalI have loyalty, in terms of products or consumables, if in the service I get something back that I think is above and beyond. Loyalty is to individual sales staffI think lots of companies dont nurture that loyalty [to staff]. Because you are more loyal to a person than you are to a product. You might shop at Target because you have had a good experience in the past. But I went in there to buy a few things and got shocking service. So they are on the blacklist now. One bad experience could dismantle previous loyalties
- 15. Now lets look at some dataBrett TuckerMD, Ipsos Loyalty
- 16. The surveyWe asked Australians.Where do your loyalties lie? (loyalty measured across ~30 variables)
- 17. How loyal are you to your employer?
- 18. Do you have the propensity to be a loyal customer?
- 19. As a consumer, what are the drivers of your loyalty across six industries?Specifically, who did we talk to?
- 20. What did we find?
- 21. When thinking about loyalty family, friends and Australia clearly rose to the topCountry before brandsIf you come back to where your loyalty is in your everyday life, its your family. Thats the only loyalty you can really trust. Its the one that doesnt shift. My mum only buys orange juice thats made with Australian oranges. She feels like even though shes not being loyal to a particular brand, she feels like shes been loyal to the Australian orange growers Family first
- 22. And the top 10 are
- 23. From an overall loyalty perspective politics & politicians rate poorlyWith politics, my family used to vote a certain way and then I voted that way out of loyalty. And then I realised I needed to think for myself and process these issues for myself. We need to reconsider why we are loyal. Has loyalty to politics changed?
- 24. And the bottom 10 are
- 25. How do our loyalties lie together?Primary wealth management firm or fundParticular beerPrint news sourceAustraliaFederal political leaderParticular butcherOnline news sourceFriendsGrocery store brandParticular wealth managerPetsFamilyState political leaderTelevision news sourceGrocery store locationSpouse/partnerMain superannuation fundRadio news source or talk showPolitical partyDepartment store brandMobile phone handset brandMain financial institution
- 26. Does loyalty to family & friends = loyalty to employers and products?Loyalty to family is the real thing. So when you are talking about loyalty to makeup and credit cards, it is meaningless. Its all marketing. Its all about people trying to tap into something that has real meaning to try and sell a productIm loyal to my friends and family. Im also fiercely protective. Im not the same with products.
- 27. The answer is no looking at the different forms of loyaltyPersonalloyalty3%Our loyalties to other people, employers and products are uniqueEmployeeloyalty4%2%Customerloyalty
- 28. Generational differences regarding loyalty? Opinions differA new generation?Theres no loyalty in the me, me generation.A generation like any other?I see with my kids they are loyal to their parents. And to their employers as well. Loyal to friends, not sure. Its a transitional stage so they flit from group to group.
- 29. The concept of loyalty
- 30. The concept of loyalty across generations
- 31. The value proposition is different by generation
- 32. Do the forms of loyalty decline with age?
- 33. Loyalty differences between men and women...Bunch of blokesIm loyal to my husband because I wouldnt want another man to see me naked at this age.Man 1: Can you guys say your loyal to girls, apart from family members?Man 2: Nope.Man 3: No.Man 4: But with girlfriends its a bit different. But its still bros before hoes!!Woman in her 40s
- 34. No gender difference 姻艶温鉛鉛霞
- 35. The economics of loyalty
- 36. The Where Our Loyalties Lie industry survey We surveyed people about their attitudes and behaviours relative to six industriesAutomotive
- 37. Banking
- 38. Insurance
- 39. Grocers
- 40. Mobile services
- 41. Wealth managementCustomer loyalty defined
- 43. I said Id recommend but will I?
- 44. Are NPS and Actual Advocacy the same thing?Mean number of recommendations
- 45. Linking intent to advocacy to acquisitionLikelihood to recommend(NPS)ActualrecommendationAcquisition
- 46. Reasons for choosing your current carFriends or family recommended it to meLoyalty/rewards scheme
- 47. Reasons for choosing your primary bankFriends or family recommended it to meLoyalty/rewards scheme
- 48. Reasons for choosing your insurance providerFriends or family recommended it to meLoyalty/rewards scheme
- 49. Reasons for choosing your primary grocery storeLoyalty/rewards schemeFriends or family recommended it to me
- 50. Reasons for choosing your mobile providerFriends or family recommended it to meLoyalty/rewards scheme
- 52. Customer retention is about Attitudesand BehaviourBrandpreferenceAttitudinal loyaltyLikelihood to remain a customer (repurchase brand)Share of walletBehavioural loyaltyTrend in recent behaviour
- 53. We use our Ipsos Loyalty Index to understand customer retention Ipsos surveyed 10,000 customers of different brands in different sectors; and surveyed them again a year on. The variables that best predicted Loyalty were used to create the Ipsos Loyalty Index.Only 24% of those who were classified as High Loyalshad changed providers 12 months laterLoyalty Index has strong ties to retention
- 54. Shall we look at some of the results?
- 55. Banking loyalty Key Measures - 2009 vs 2011Ipsos Loyalty Index figures are available in industry reports
- 56. A company level view Retail BankingIpsos Loyalty Index figures are available in industry reports
- 57. A company level view GroceryIpsos Loyalty Index figures are available in industry reports
- 58. A company level view MobileIpsos Loyalty Index figures are available in industry reports
- 59. A company level view InsuranceIpsos Loyalty Index figures are available in industry reports
- 60. Going a level deeper Experience Drivers - Grocery
- 61. Going a level deeper Brand Drivers - Grocery
- 63. Share of wallet modelsColes monthly spendGroceryColes monthly spendWealth managementCustomers with 1 productCustomers with 2+ products
- 64. Applying this approach to your business
- 65. Copyright Ipsos Loyalty 息 2010
- 66. The Ipsos Loyalty 2011 Industry Reports1st half 2011 6 new industry loyalty studies: Automotive, Retail Banking, Insurance, Wealth Management, Groceries, and Mobile
- 67. The reports will cover:
- 69. Loyalty
- 72. SegmentationThe Ipsos Mackay 2011 report programMIND & MOOD PORTRAITSISSUE REPORTSMIND & MOOD STUDIESMind & Mood AprilAffluent Urbanites FebBeing Australian JuneYoung Families AugHow We Use Media DecMind & Mood October
- 73. Questions & Discussion
- 74. Thank youFor more information contact:Brett Tucker+61 2 9900 5130 brett.tucker@ipsos.comRebecca Huntley+61 2 9900 5100 rebecca.huntley@ipsos.com
Editor's Notes
- #20: Couple of points w/ loyalty to Aus how it impacts consumer behavior and the general loyalty to Aus
- #21: Pets just made the cut and Employers just missed it
- #26: Quick explanation of -1 to +1 scale
- #39: Key pointsClear leader is Automotive and yet we know actual repurchase in this category is lowGrocers 2nd lowest and yet 2nd highest actual recommendations
- #48: This is looking at the relationship between common Loyalty measures and company sales across three industries... Youll see that in each industry, using the Ipsos Loyalty measure with built in behavioral measures and value dramatically out performed other measures as it pertained to the measure that arguably matters most revenue.NEXT CHARTWe measured brand of service providers at one point in time and 1 year later. Only 24% of those who had been initially classified (in the first survey) as Highly Loyal churned during the next 12 months.50% had indicated they intended to switch provider but 50% did not say they intended to but did switch providers all the same.
- #49: For some companies, the greatest opportunity to increase company revenue is not through acquisition nor solely retaining, but actually by retaining & growing the business you get from your existing customers getting your existing customers to buy more of your products. Looking at Wealth Management as an example...Restate Loyalty Index & Retention is the foundation and core program. Advocacy to Acquisition is an easy model to bolt onto your Loyalty Index program... SOW model also easy to bolt onto your Loyalty Index program.