About Tim Tyler

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Protecting Customers from your Marketing


“Capturing Customers”, “Luring Customers”, “Attracting Customers” and “Keeping Customers” are all terms used daily in marketing departments.  They invoke images of carefully prepared fly patterns, practiced casts and the adrenalin of a good strike, ending with the satisfaction of a catch of the legal size, a ‘keeper’.

Many organisations view customers in the same way that the fishing industry viewed Atlantic fish stocks.

Some marketers, (not you gentle reader) allow various product managers to fish the same customer waters day in day out.  They use nets, lines, perhaps even explosives,in fact  any technique they can to catch all the fish they can for their product line. Large fish, small fish, dolphins and seals, no matter, the sheer weight of fish is all that matters, catch them and the folks in accounts or risk management can sort them out later.

But it can’t go on forever and interesting things happen as fish stocks deplete. [Read more…]

Managing Customer Loyalty: It has always been about listening and remembering


“If you strip away all the hype around how to ‘do’ relationships, you are left with one simple concept. The real essence of a relationship is simply a memory of past interactions.” [1]

Learning is at the heart of customer loyalty management and has been ever since the empirical work of Reichheld [2] (and others) in the early 1990’s showed that customer loyalty is directly related to corporate profits. Learning about customers and remembering them is central to the task of managing customer relationships.

Looking back all that way to the pre-Net Promoter Score primordial haze; Reichheld found 3 loyalty effects, each highly correlated with profitability,

Customer Loyalty Programs: 5 items for your next grease and oil change


We all know what we want from our customer loyalty programs; more, and more profitable, customers.  The trouble is that customers are notoriously fickle, changeable, arbitrary, and our lifeblood.

What worked last month may not work today.

So Loyalty Programs need regular check-ups to make sure they are still achieving their objectives – in just the same way you need to regularly check and service your high performance automobile.

In fact, I sometimes think all Marketing professionals should drive old exotic sports cars, to get a feel for how much tinkering is required to keep relationship marketing initiatives on the road!

So here are five things you should check when you raise the hood of your Customer Loyalty Program: [Read more…]

An introduction to Customer Life Time Value (LTV) and Loyalty Marketing for SMEs


We recently participated in a written interview for the SME magazine of one of our major Australian banks. The article was not all about us, so some of the input was edited to meet space restrictions. And we are posting the transcript here for those of you interested in Customer Lifetime Value and loyalty programs.

It is best that the original Q&A structure is retained as seen below. [Read more…]

The Buzz Insurance launch an innovative new customer loyalty program

The Australian general insurance business has become a hot house of competition, with heavy promotion by new overseas online insurers.

Intense competition can be a catalyst for innovation, and we believe that one insurer is innovating in a refreshing and effective way – by collaborating directly with customers. [Read more…]

Net Promoter® Links to Recency-Frequency-Monetary (RFM)


From the early days of data-driven marketing, it has been known that marketers can predict which customers are most likely to respond to an offer by ranking them on the basis of;

  • how Recently they have transacted with you
  • how Frequently they have transacted with you
  • how much money (Monetary) they have spent with you.

It is also well known that of the 3: RFM, Recency is the best predictor of future business. My favourite database marketing guru, Arthur Hughes says; [Read more…]

The 10 major marketing themes in 2000: still relevant?


Every now and then, I like to go back and read past work from the giants of our craft. And Philip Kotler certainly qualifies as a good set of shoulders for us to stand on so we can see further. In 2000, Mr. Kotler published “Marketing Management, Millennium Edition” (2000, Prentice Hall) and given the occasion, he looked forward and predicted the issues that Marketing would be dealing with in the new century.

More than a decade into the 2000’s, I can say I think he was correct. He may despair that we are still to resolve the issues, but he was correct in identifying the major tasks in what we have (un-poetically perhaps) called ‘do marketing’. [Read more…]

4 ways to involve your customers in new product development


Over the last 18 months or so, we have been working with an innovative client who has looked to their customers to co-create their business model, products and loyalty strategy. It has been an exciting and thrilling journey in a typically conservative industry; financial services. In their case, an online, conversational community was an invaluable supplement to focus groups and market research. And the conversation has been extended to social media such as twitter and Facebook.

This experience has us thinking about the opportunities organisations (those not afraid of public dialogue with their customers) have to develop new products in concert with their customers. [Read more…]

Control groups for customer loyalty programs; an impossible dream?


Measuring the effectiveness of customer loyalty programs has always been a bit of a problem.

We know the objectives of these programs clearly. These would be customers who;

  • stay longer
  • consolidate their spending with you
  • recommend you to their family and friends

But even if members exhibit all of these behaviours, how can you identify if it is because of your customer loyalty program investments, or your products or even your other marketing efforts? [Read more…]

Word of Mouth Programs – Making Money


Another thought-provoking piece of research from one of our ‘must read’ organisations, the Marketing Science Institute is the Sources of Social Value in Word-of-mouth Programs.

Using computer agent models based on 12 real world communities (several provided by Lithium), Libai, Muller and Peres focussed on the impact Word of Mouth (WOM) has on the value (discounted cash flow) generated in a new product introduction.

Their particular interest was on the WOM generated by ‘seeding’ programs, where organisations give new products to a portion of the customer population in order to invoke WOM. I believe the principles discussed in their paper probably apply to any WOM initiative, not just seeding programs.

The focus on hard dollar returns is notable and useful for marketers considering WOM programs (and certainly plays to our bias for ‘do’ marketing). The authors call these hard dollar impacts changes in ‘social value’ for the customer population.

Two ways that WOM can increase the value of the social network, i.e. make you money (versus new product diffusion with no WOM) were examined; [Read more…]