Latest / Leaders in Customer Loyalty, Powered by Loyalty360 / Loyalty360 Loyalty Live | Bill Schneider, SheerID

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Loyalty360 Loyalty Live | Bill Schneider, SheerID · Leaders in Customer Loyalty, Powered by Loyalty360

• 0:04
  Speaker 1: Good afternoon, good morning.
• 0:05
  Speaker 1: This is Mark Johnson from Loyalty360.
• 0:07
  Speaker 1: Hope everyone's happy, safe and well.
• 0:09
  Speaker 1: I want to welcome you to another edition of Loyalty Live.
• 0:11
  Speaker 1: In this series we speak with the leading agencies, technology partners and consultants in customer channel and brand loyalty about the technology trends and best practices that impact the ability of brands to drive unique experiences, enhance engagement but, most importantly, impact customer loyalty.
• 0:30
  Speaker 1: Today we have the pleasure of speaking with Bill Schneider.
• 0:32
  Speaker 1: He's the Vice President of Product Marketing at Shear ID.
• 0:34
  Speaker 1: Bill, thank you very much for taking the time to talk to us today.
• 0:36
  Speaker 1: How are you?
• 0:36
  Speaker 2: I'm doing great.
• 0:37
  Speaker 2: Thanks, Mark.
• 0:37
  Speaker 2: How are you?
• 0:38
  Speaker 1: Doing well, thank you.
• 0:39
  Speaker 1: First off, we'd like to start these on a more personal level.
• 0:41
  Speaker 1: Get to know the individual we're speaking with.
• 0:43
  Speaker 1: We'd love to know a little bit more about you, your current role at ShareID and a bit about your background.
• 0:48
  Speaker 2: Sure.
• 0:48
  Speaker 2: So I head up product marketing and communications at ShareID.
• 0:53
  Speaker 2: That means I'm focused on identifying which groups of customers we are targeting and building products for those customer groups.
• 1:05
  Speaker 2: I love this role because it allows me to meet with lots of different customers and understand what their needs are and how we can fit in, and I've been in this type of role for a little over a decade.
• 1:24
  Speaker 2: I got started in tech and so I'm pretty much a tech guy, I think you could say, and I've always been in companies that have had some connection to getting a better, helping brands get a better understanding of their customers.
• 1:40
  Speaker 2: I started out in a web analytics company that was here in Portland, oregon, that had the first IPO for a web analytics solution.
• 1:51
  Speaker 2: We were serving tens of thousands of customers at that point.
• 1:55
  Speaker 2: That was a lot of fun.
• 1:55
  Speaker 2: And then moved to a company called Airship that ran mobile engagement and drove the first push notifications when the iPhone was first introduced, and over the last six years I've been working with Shire ID.
• 2:13
  Speaker 2: So it's been a journey and a lot of fun.
• 2:21
  Speaker 1: Excellent.
• 2:21
  Speaker 1: For those who may not be familiar with Shar ID, can you tell us about how Shear ID supports a brand's customer loyalty efforts?
• 2:27
  Speaker 1: Can you give us a brief overview of what you do, how you do it and the industries you support?
• 2:33
  Speaker 2: Sure, yeah.
• 2:34
  Speaker 2: So Shear ID is an identity verification company for commerce brands.
• 2:39
  Speaker 2: We work with companies like Walmart, target, nike, t-mobile.
• 2:44
  Speaker 2: We work with companies like Walmart, target, nike, t-mobile, at&t, spotify, youtube, and what we offer is a connection to the largest authoritative verification engine for verifying whether a person is part of a consumer community, like whether they are a college student, a teacher, a member of the military, or even a profession like fitness instructors, and brands retail brands will work with us to provide exclusive offers and rewards to those groups.
• 3:20
  Speaker 2: Like you know, target has a back to school program that they do for educators you know being a main destination for teachers to get their back to school supplies and so they use our service to ensure that people that are responding and redeeming those rewards are actually, you know, a teacher within the specific school district that they're trying to reach, and so our verification engine works in the background to do a lookup of the customer record that somebody provides in exchange for getting access to the rule.
• 4:06
  Speaker 1: We've had some discussions with you about the Shear ID verification platform.
• 4:10
  Speaker 1: Can you tell us in detail, for us, how it enables brands and marketers to collect verified data directly from consumers in exchange for exclusive offers, rewards and experiences?
• 4:22
  Speaker 2: Sure.
• 4:22
  Speaker 2: So you know I mentioned we have the largest authoritative database for verifying whether somebody is part of a specific community.
• 4:33
  Speaker 2: We have connections to 200,000 authoritative data sources that are around the world and authoritative sources like a university registrar for students right, or a government database like the Pentagon for verifying whether somebody is an active military vet or state license boards for professions, and we maintain those data sources and we're constantly growing more data sources.
• 5:08
  Speaker 2: We're expanding to more communities and more geographies around the world so that we can provide the highest incident rates to brands and consumers to verify those customers for those rewards.
• 5:23
  Speaker 2: So you know, a great example is Spotify.
• 5:27
  Speaker 2: You know Spotify.
• 5:28
  Speaker 2: They have a student discount that provides half off of their subscription while somebody is an actively enrolled college student.
• 5:37
  Speaker 2: That's a great savings, you know, and it's a great way to establish a relationship for Spotify with a student before their first career, before they're really making their first paycheck, and so they'll use our service as part of the signup process to ensure that it's going to actively involve students.
• 5:56
  Speaker 2: This protects them from any potential fraud because, as you can imagine, there's a lot of people that would love to get half off of their Spotify subscription and it also gives them a very strong acquisition and retention channel, and we generally see that customers report a higher customer lifetime value on these community-based cohorts than their typical cohort.
• 6:23
  Speaker 2: So that's why brands are investing in this type of approach and generally how the service works.
• 6:30
  Speaker 1: And with the complexity of data collection, maintenance and distribution.
• 6:34
  Speaker 1: How does Shear ID help brands navigate increased customer data and privacy laws, especially as they're evolving?
• 6:42
  Speaker 1: A number of states are adding more and more complexity to their own requirements.
• 6:47
  Speaker 2: So how do?
• 6:47
  Speaker 1: you help them address and assuage some of the challenges that are coming up in the privacy arena.
• 6:53
  Speaker 2: Yeah, yeah, this is a big new area of development and, as you pointed out, it's continuing to grow both at the state level and the federal level.
• 7:07
  Speaker 2: Um and we are a service that allows a brand to make a connection with a customer, um, so that they can collect and create a first party relationship with that customer.
• 7:20
  Speaker 2: All of the data that um, that that the customer provides, is opt-in.
• 7:25
  Speaker 2: Um.
• 7:26
  Speaker 2: You know, essentially what happens there, going back to the Spotify example, is they'll have a page up on their website that a student can provide a few basic pieces of information about themselves, like their first name, their last name, the university that they're attending, their email address, where we do a quick lookup in the cloud to ensure that there's an active record there and then we return a result back to the brand that the person is actively enrolled or there isn't enough information to make a decision, and at that point the student can upload a document to prove their eligibility.
• 8:08
  Speaker 2: All of that data, as I mentioned, is opt-in.
• 8:11
  Speaker 2: We don't share personal information with the brand without a person's consent and we never share or resell customer data to a third party.
• 8:23
  Speaker 2: So we are also a data processor, not a controller.
• 8:30
  Speaker 2: So you know all of our, the techniques that we use are in full compliance with GDPR and CCPA.
• 8:39
  Speaker 2: You know, and it's really, I think, for brands it's thinking about how can they collect data about their customer in a way that adds value to the customer relationship, where the customer has an understanding of how that data, of what is being collected how it's being collected and how it's going to be used, and so there's a level of transparency there, and then there's also the level of control that's required by the customer, and that's really what consumers are demanding right now, because they're recognizing that the data that they share is used in lots of different ways, and so our focus is really giving brands more an opportunity to create a value exchange with the customer so they can see how that data is going to be used, and then also create a relationship with that customer over time so they can remarket to them.
• 9:39
  Speaker 1: That's very well said.
• 9:39
  Speaker 1: What do you think is working for your clients when it comes to building successful loyalty programs and strategies?
• 9:45
  Speaker 1: Can you provide an example of two that seems to be working quite well for your clients?
• 9:50
  Speaker 2: Yeah, I mentioned earlier that we tend to see higher customer lifetime value scores for consumers that are part of these community cohorts compared to standard cohorts, and we've been doing some research to understand why is that?
• 10:09
  Speaker 2: What is unique about marketing to a consumer or a customer based off of the community that they belong to?
• 10:17
  Speaker 2: And what we found is that across the board, whether you're talking to a member of the military or a teacher or a nurse or even a college student, when they receive these offers they feel appreciated, they feel valued and in some cases, they feel honored.
• 10:38
  Speaker 2: Right, and there was some really interesting research that came about recently that I saw from Forrester Consulting that where they talked about you know important aspects of customer loyalty and the importance of creating an emotional connection, and those emotional values were so important with that regard.
• 10:55
  Speaker 2: So I think you know that's a very interesting dynamic for a brand to be aware of with these types of programs is that you can create that emotional connection and that people really feel recognized and valued when they see these offers and rewards.
• 11:16
  Speaker 2: So, from a customer perspective, what we see as a best practice is one is providing the offer but then using that data to remarket to them over time.
• 11:50
  Speaker 2: So we've worked with a home improvement company in the past and they have a military program where they would provide an everyday reward to members of the military of 10% off whenever they shop there and they would then take that data and remarket to them at different points of time where they would give them freebies, like at the 4th of July, where they would give them a free bag of briquettes for people to come into the store and if they were a part of a millet, if they were an active member of the military or military family, and those types of things create demonstrate, you know, that hey, this brand is really in our corner, they're really behind us, they see me, they recognize me, they value my business and oh, by the way, that you know that free bag of briquettes tends to turn into, you know, a 70 or 80 dollar average order basket ring, because now that the person's in the store they're making the purchase anyway.
• 12:37
  Speaker 2: So that's a great example of how you know these types of programs create a valuable connection with consumers that respond to these offers and are verified, and then how a brand can really create a relationship with that customer over time.
• 12:55
  Speaker 1: Loyalty 360 recently released our Next Generation Customer Loyalty Research Paper, which examined how brands think about the future of customer loyalty.
• 13:02
  Speaker 1: What does next generation customer loyalty mean to Shear ID?
• 13:07
  Speaker 2: For us it's, and I think more generally like if, when you look at next generation of customer loyalty, when thinking about customers, they have limitless choice these days right, in most cases, brands have some kind of points program in place.
• 13:21
  Speaker 2: Really, the next step is really getting a very close understanding of your core customer and serving them incredibly well better than your peers and I think we provide one small slice of that in terms of helping brands align with customers that are part of specific communities.
• 13:49
  Speaker 2: I mentioned Target, you know, and connecting with teachers for back to school supplies.
• 13:55
  Speaker 2: You know Home Depot has a long history of connecting with the military and military.
• 14:01
  Speaker 2: Families are, you know, index higher for home improvement.
• 14:06
  Speaker 2: You know YouTube and Spotify for college students.
• 14:09
  Speaker 2: So I think, really getting a deep understanding with who your customers have the expectation that brands understand their last interaction and are going to be speaking to them with that context in mind, and so data is a core foundation to that.
• 14:42
  Speaker 1: Looking toward the future, what is the next big thing brands can expect in the way of technology opportunities and tools?
• 14:49
  Speaker 2: I want to answer this question in two ways the way of technology, opportunities and tools.
• 14:53
  Speaker 2: I want to answer this question in two ways.
• 14:54
  Speaker 2: I mean, on one hand, I think, when we look at the next you know, six to 12 months, six to 18 months I feel like there's such a big push right now to collecting more first-party data on your customers, since, as third-party data sources are eroding and also there's just a general awareness and understanding of brands that you know, in order for them to really drive success, it's way more efficient for them to serve their existing customers than to spend an inordinate amount of money on customer acquisition.
• 15:25
  Speaker 2: Of course, there's got to be a balance there, but serving your existing customers well is a much more predictable and also lucrative proposition for brands, and data is the key there.
• 15:42
  Speaker 2: So I think there's there's a movement just in general that we're seeing in collecting high quality first party you know could say zero party data on different attributes of your customers, so that you can serve them well, right.
• 15:56
  Speaker 2: Then the other thing that's longer term that is that is that you know we're still kind of coming into focus.
• 16:07
  Speaker 2: So obviously we've got you know how you can build AI data models on that data so that you can build predictions and, you know, identify areas to serve those customers better.
• 16:22
  Speaker 2: I think that's kind of one layer.
• 16:24
  Speaker 2: And then another layer is the digital experience continues to expand with augmented reality and virtual reality.
• 16:30
  Speaker 2: I mean, there's some interesting things that are taking place right now, obviously, in the VR world, but also, like you know, I was just reading about, you know, the Ray-Ban collaboration with Facebook where, you know, the AR experience is coming into focus and the technology is still very young, but the form factor with sunglasses makes it much more approachable.
• 16:58
  Speaker 2: So I think that's really interesting to see how that's going to mature much more approachable, so I think that's really interesting to see how that's going to mature.
• 17:06
  Speaker 1: When you look at customer loyalty, are there programs you admire or are loyal to you from a customer loyalty perspective, and what do you like about their offerings?
• 17:10
  Speaker 2: You know, I'm a United Airlines customer and I'm really impressed with their level of communication with me, from the moment that I actually start to do some research on a flight, all the way through to I've arrived at my destination.
• 17:29
  Speaker 2: Their systems in terms of communicating gate changes and time changes are fantastic, and they also give me an upgrade that happens from time to time with, which is a nice bonus.
• 17:48
  Speaker 2: So I think, you know, from a perspective of looking at a brand that's getting the data side of things right, they're the ones that come to mind.
• 17:59
  Speaker 1: Bill, do you have any closing thoughts or pieces of advice?
• 18:01
  Speaker 1: You know what's next for Shear ID as we move forward into 2024?
• 18:06
  Speaker 2: Yeah, I mean our main focus is really popularizing, raising awareness that marketing to people based off of the communities that they identify with is a very powerful strategy for driving engagement, re-engagement in a loyalty program and, ultimately, revenue.
• 18:26
  Speaker 2: We found, when we've polled customers about the different types of attributes that describe who they are, based off of their demographics or their income level, or where they live or their latest behavior, the communities that they belong to have the most resonance because it's what they're working towards, it's what they are spending their lives towards, right.
• 18:52
  Speaker 2: If I'm a teacher, I'm dedicated to my classroom.
• 18:56
  Speaker 2: If I'm a member of the military, I've made a very conscious effort to serve my country, and by recognizing a person through those aspects can be very powerful.
• 19:07
  Speaker 2: So we're expanding to additional communities.
• 19:11
  Speaker 2: We're now adding different professions.
• 19:14
  Speaker 2: We also recently added the ability to connect with people that are on government assistance programs.
• 19:24
  Speaker 2: That has been a great way for brands to support those groups and we're also expanding geographically around the world.
• 19:32
  Speaker 1: And now we have our quickfire question seconds.
• 19:34
  Speaker 1: These we'd like to have one word or short phrase responses, please.
• 19:38
  Speaker 1: First off, what is your favorite word?
• 19:41
  Speaker 2: Opportunity.
• 19:43
  Speaker 1: What is your least favorite word?
• 19:44
  Speaker 2: I can't do it.
• 19:44
  Speaker 2: What?
• 19:45
  Speaker 1: excites you.
• 19:46
  Speaker 2: New possibilities.
• 19:47
  Speaker 2: What do you find tiresome?
• 19:48
  Speaker 2: Doing the same thing over and over again?
• 19:50
  Speaker 1: Is there a book that you've read that you'd like to recommend to colleagues?
• 19:53
  Speaker 2: Thinking Fast and Slow by Daniel Kahneman, because it really opened my eyes to biases and how that's kind of intrinsic in the way we see things.
• 20:03
  Speaker 1: What profession, other than the one you currently have, would you like to attempt?
• 20:06
  Speaker 2: I think it would be very interesting to be a monk for a period of time, for like a year or two.
• 20:12
  Speaker 1: What do you enjoy doing that you don't often get a chance to do?
• 20:15
  Speaker 2: I really enjoy rock climbing.
• 20:17
  Speaker 2: That I don't get to do very often because it takes me away from my family.
• 20:21
  Speaker 1: Who inspired you to become the person you are today.
• 20:24
  Speaker 2: My dad.
• 20:25
  Speaker 1: What do you typically think about at the end of the day?
• 20:27
  Speaker 2: On my best days, I think about gratitude.
• 20:31
  Speaker 1: And how do you want to be remembered by friends and family.
• 20:33
  Speaker 2: They're feeling that he was there for me.
• 20:35
  Speaker 1: Bill, thank you very much for taking the time to speak with us today.
• 20:37
  Speaker 1: It was great hearing your perspective on customer loyalty and we look forward to learning more from you and your team throughout the rest of the year.
• 20:44
  Speaker 1: Thanks, mark, absolutely Until then.
• 20:46
  Speaker 1: Thank you very much for everyone for taking the time to attend.
• 20:49
  Speaker 1: Make sure you join us again for another edition of Loyalty Life soon.
• 20:52
  Speaker 1: Until then, have a wonderful day.