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of Things to Come
IN THIS ISSUE:
Mark Johnson
MarkJohnson@loyalty360.org
loyalty360.org
FEATURES
10 12 16
Keeping up Breaking the A Taste of
with the Clauses Engagement Barrier Things to Come
The Yin and Yang of Loyalty 42 STATE OF THE INDUSTRY contained herein has been obtained from sources believed to be
reliable. Loyalty360 disclaims all warranties as to the accuracy,
Program Design Going from Connected to Engaged: completeness, or adequacy of such information. The opinions
Chris Barnett | The Lacek Group The Evolution of Loyalty shared are those of the contributing authors and not necessarily
reflective of Loyalty360 and/or its affiliates. Loyalty360 shall
Adeline Heymann & Vincent Rescigno | Kobie
have no liability for errors, omissions, or inadequacies in the
26 Q&A information contained herein or for interpretations thereof. The
opinions expressed herein are subject to change without notice.
Brand Vision
ON LOYALTY360.ORG
FIND A PARTNER
Find a Partner is your one stop shop for finding the match you need
to bring your loyalty initiatives to the next level. Browse potential
brand partners or technology/service providers by location, industry,
capabilities, and more in order to find the one perfect for your
company’s goals. In addition to the tool’s filters, explore Loyalty360
Analyst Briefs and Verified Reports, which offer additional detail on
why a Loyalty360 member may just be exactly the partner your
marketing team needs.
ASK AN EXPERT
For the latest example of Loyalty360’s quest to connect
customer loyalty thought leaders with the marketers
looking for a head start on their brand’s CX initiatives,
look no further than our new Ask an Expert section. Ask
an Expert is Loyalty360’s way of connecting questions
around the industry to responses from those blazing a trail
in the space. Ask your question, and see them answered by
Loyalty360 members that have the insight you need!
When I learned that the first SONIC was Sign-in through the app, she says, and
opening in our area, I mentioned this and any personalized messages will appear to you on
further discussion about where we would eat the menu board. For my wife, that will probably
next became moot. be, “Want to order your usual?”
2017 was a very interesting year, to say the least. It was, in my mind, be engaging with, and a customer talk section that allows customers to
The Year of Consolidation of Influence, as the “Big Four” and others speak to brands.
aggregated and merged companies, technologies, power, and
influence over customer interactions. Walgreens was finally allowed We are continuing to roll out our standards and certifications. We are
to purchase Rite Aid; Amazon consolidated, and potentially increased, also growing our Board of Advisors, who will help shape the standards
its influence with the acquisition of Whole Foods; CVS made a daring / certification process, drive more meaningful content, bring more
acquisition of Aetna; AT&T attempted to acquire Time Warner; members to the table, and help elevate the focus and discussion
Disney bought most of the assets of the Fox companies. All of these around customer loyalty.
were attempts to create more convenience and reach customers in
the right channel / medium with the products and services they were A members-only podcast channel is launching in January. New video
looking for in a more personalized and meaningful manner. content and brand-only meetings for corporate members are in the
works. We are launching a thought leadership series with authors /
If successful, these changes will create engagement and increase speakers who have the pragmatic and academic insight that we feel
revenue with differentiation versus their competitive set and, hence, has as opportunity to impact / influence the market. We are also
increasing customer loyalty. planning more webinars, starting with our executive perspective series
that focuses on the qualitative insight the market is looking for.
Loyalty360 saw a great deal of change in 2017 as well. We grew the
number of individual and corporate brand members, and we saw a We look forward to 2018 with a renewed passion and commitment
growing number of brands that were both more open to discussing driven as a reflection of what our audience has imbued in us.
their challenges as well as wanting to collaborate with other
brands—sometimes with brands that have, in the past, been
strict competitors.
94% Recommend
Increase in social posts and 9 out of 10 members are
user-generated content most likely to recommend
in 7 months the program
Richer Insights.
Smart Decisions.
Faster Reactions
Richer Insights. Smarter Decisions.
Faster Reactions
With Confrmit’s Voice of the Customer
solution you can:
Featured Products,
Advancements &
Technology
Technologies
& Services
Loyalty. Engaged.
A successful business isn’t built all at once; rather, it’s an iterative Designing and maintaining a full-featured and effective loyalty
process based on objectives, market dynamics, and, perhaps most program is a challenge for even the world’s largest brands, let
importantly, feedback data from customers and employees alike. alone those with a smaller business scope. CrowdTwist offers
While leveraging this feedback may seem easy on paper, any flexibility in their loyalty programs in order to equip brands
marketer will note that this sentiment could not be further from the across the spectrum with the tools needed not only to design
truth. To tackle the huge challenge of aggregating, analyzing, and and implement a loyalty program, but also to maintain it and
leveraging this data, Confirmit has developed robust Voice of the leverage the resulting consumer data. CrowdTwist’s platform is
Customer (VoC) and Voice of the Employee (VoE) platforms for its set apart through customization; in working with clients of all
clients. shapes and sizes, the company allows for a brand to have as
much or as little involvement with implementation and
Because VoC data can vary significantly across industries, Confirmit maintenance as desired.
has designed its platform with flexibility in mind, allowing for data
collection across verticals including retail, insurance, software, Customizable widgets allow for complete control over every
electronics, and media, just to name a few. Because of the sheer aspect of the program, while data-driven campaign expertise
volume and evolving nature of feedback channels like social media, provides a more “hands-off” option. Program reward mixes
Confirmit allows clients to combine feedback streams in order to provide the same level of flexibility, with incentives that range
streamline the data and avoid “analysis paralysis” caused by an from digital to experiential, sweepstakes, physical, or promo
overflow of information. Additionally, the company leverages its codes. Through this selection of rewards, CrowdTwist remains
GeniusTM Social and Text analytics tools to provide the framework agile and able to engage a variety of audiences across age
necessary to turn unstructured data into actionable insight. demographics and interests. Through this flexibility,
Confirmit’s VoC and VoE tools are invaluable resources CrowdTwist has set itself apart in the customer loyalty space
to companies looking to capture customer and continues to boast one of the most flexible solutions in the
sentiment in a form that is both powerful market today.
and easy to act upon.
CLAUSES
Skip Tate
Loyalty360
At Sleep Number, the business of Santa Claus knows when you’re sleeping, and he knows when you’re awake.
Well, so do Sleep Number 360 smart beds. In fact, the beds even go a
beds is high-tech territory. With the few steps further than anything Santa can deliver, such as offering dual
adjustability—so you and your partner can sleep just right—Responsive Air
smart beds that know when you’re technology that automatically adjusts the bed if you roll over in the middle
of the night, a foot warming option to help you fall asleep faster, a layer with
sleeping and know when you’re dual temperature controls to prevent tug-of-wars with the covers, or even
slightly lifting the head of the bed if it detects the person on the other side
awake, even Santa Claus has is snoring. Now, those are presents you just won’t find under any tree.
become a loyal brand ambassador. With their love of sleep tracking in common, though, it only made sense
that the mattress innovator and pioneer in biometric sleep tracking joined
forces with the jolly old elf by becoming the “official bed of Santa.” In
mid-November, the company announced its agreement and began posting
a daily blog—“Keeping Up With the Clauses”—on its website, showing
how he and Mrs. Claus are enjoying their new mattress, and even turning
the table on the big man by allowing readers to monitor the couple’s sleep
profiles so they can know when he’s sleeping and awake.
“The one thing about our product is, the people who have it really love it
and feel very emotionally attached to the brand,” says Lisa Erickson, senior
director of CRM and loyalty at Sleep Number.
So it faced a challenge: finding ways for sleep apps that can track sleep, which helps example, I receive sales reports every day,
customers to express that pent-up passion. emphasize the importance of sleep, and so I know which promotions work and which
The company has had a longtime loyalty motivates people to sleep better—but our ones don’t. I know which age group of our
program called InnerCircle in which it offers role is to convey the importance of having a insiders—and by age group I means how long
insider discounts for referrals to family and good bed to deliver that quality sleep.” they’ve owned their beds—how they’re
friends. In the 21st century, though, email performing. I know the ones who are more
and direct mail communications weren’t active in our online program. I know what
proving to be enough. They had to go digital, they do compared to the ones that are not.
so earlier this year the company added a “The beds automatically It’s all a way of getting them—and more
variety of social activities—in a big way. adjust if you roll over, have a people like them—engaged in our brand and
Now customers can gain reward points by to sleep better.”
connecting and engaging with the company foot warming option to help
on social media, completing surveys, writing you fall asleep faster, feature The mattress industry is highly saturated and
product reviews or even doing something highly competitive, so referrals are key—even
as simple as reading and watching content dual temperature controls if it’s just getting people into the stores.
about how to improve their sleep. to prevent tug-of-wars with Unlike typical mattress stores, Sleep Number
stores are “not a sea of mattresses,” she
“We care deeply about our customers’ sleep the covers, and even slightly says. Customers are taken through a process
quality, and we share timely articles that lift the head of the bed if it that begins with an “IndividualFit” scan that
can help improve their sleep,” says Erickson. measures their pressure points and gives
“From daylight savings time hacks to tips on detects the person on the them their specific “Sleep Number setting.”
caffeine consumption, we’re a sleep resource other side is snoring.” Everything after that is personalized to fit
at their fingertips. We even have live ‘Sleep them, based on their unique sleep needs. The
Better chats’ on Twitter where people can company even fits its customers for pillows.
ask a variety of sleep questions, and get an
answer in real time so they can sleep better The constant communication not only “Once our customers experience the
that night.” allows the company to keep engaged with its IndividualFit and find their Sleep Number
customers before they need another mattress setting, they can feel and see the difference,
The company adds new material on a weekly eight years down the road, but gives them learn about the bed and how it can adjust
basis, she says. It’s also offering customers valuable data and encourages customers to to meet their unique needs, and begin
the option to donate their rewards points to make referrals to their friends and family, to understand about the value the Sleep
a charity and are exploring adding a which is the company’s most effective and Number mattress offers—ultimately, how it
gamification component. most cost-efficient sales tool. really will improve their life.”
“Now, with all of the new social platforms “We look at the data every day,” Erickson
we offer, there’s a way for our customers to says. “We constantly compare our different
voice their love of the brand,” says Erickson. activities to see which ones are engaging
“We also emphasize with our customers the people more and which ones aren’t—so
importance of sleep. You see more and more we can do more of the ones that are. For
Barrier
many cases devaluation—
among loyalty programs,
which makes it difficult for
customers to understand
what they actually get.”
the key to a great customer As the crew foreman got his keys and headed to his
rooms, Hamlisch approached, introduced himself and
rewards program for told him he was in charge of the Wyndham Rewards
program.
Wyndham Hotels is simple: “He then proceeded for the better part of five to 10
minutes to share how impactful and meaningful the
program has been for him and his crew as well,” says
Don’t make it complicated. Hamlisch. “It wasn’t just the benefits, but the friendly
smile he got from the general manager, who not only
recognizes him and his crew when they are there but
offers them personalized service as a result. That
brought to light not only how impactful the program
Mark Johnson can be, but how important our franchisees are to truly
Loyalty360 take care of our most valuable members.”
Taste OF THINGS
TO COME
A
Mark Johnson
Loyalty360
Each year, SONIC Drive-In has a competition among some of its highly
visible and creative employees—its carhops. Many of its carhops, who
deliver meals to customers parked in drive-in stalls, use roller skates as
their preferred mode of transportation, and rather than simply walking an
order to a car, they spin, turn, zig and zag their way, all while balancing
a tray filled with food and drinks. So, the company invites five of its best
skating carhops to its headquarters in Oklahoma City for its annual Skate-
Off Competition, awarding prizes to those who demonstrate the best
From wheeled guest service, delivery skills, personality, originality and, of course,
flair.
workers skating
Some might simply dismiss carhops on roller skates as a
food to customers to gimmick, but SONIC officials consider them something
much more important—a differentiator. They are part
Footlong Chili Cheese of the company culture, part of the drive-in’s fun
atmosphere, and one of the keys—along with its
Coneys, being iconic unique food and drink offerings—that keep customers
from driving to the other place next door. It’s certainly not
is a key for SONIC. something you see from pizza delivery guys or the counter
workers at the burger place.
But so it utilizing
“Our carhops are on the front line and interact directly
new technologies— with our guests, and we think that is one of our key
strengths,” says Kim Lewis, Vice President of Digital
if they enhance the Strategies for SONIC. “Our iconic carhops are one of the
reasons guests really enjoy visiting SONIC. You can see
experience. why that personalized attention brings joy to our guests
who interact with them. It makes it much more than just a
typical fast-food experience.”
In the highly competitive, highly “Moving forward, we’re looking at how down the line, we want to introduce
crowded world of fast food, any little to continue personalizing the guest additional capabilities that make
differentiator can make a difference. experience through digital initiatives— each guest’s experience even more
SONIC has always been a little bit both through our digital communications meaningful. There’s a kind of magical
different—with Footlong Chili Cheese as well as through our personalized interplay between our app and the POPS
Coneys, Tots as an option instead technology,” Lewis says. “We have screens.”
of fries, and drive-in stalls where the capability to have one-on-one
customers stay in their cars instead of communication with our guests in their As with just about every other business
sitting at a table. And it takes constant drive-in stall through what we call our out there, creating a personalized
watching and evaluating the market to POPS—point of personalized service. In experience is the ultimate key to creating
see if there are new technologies or food each drive-in stall, we have our static customer loyalty. Everyone wants to feel
movements taking place that might help menu board as well as our POPS screen, catered to by people who know your
enhance what Lewis calls a “distinctly which we’re able to populate with name and preferences. It’s becoming the
SONIC experience.” dynamic content. That can be limited expectation. That, of course, is not an
time offers or exclusive offers you can easy task to manage.
But, she adds, they aren’t changing with get through our app or a suggestion to
every new trend that hits the scene. consider ordering mozzarella sticks with Making it even more challenging, SONIC
your burger. can’t limit its insights and efforts to
“We have to effectively evaluate and only other quick-service restaurants,
prioritize the constant stream of new as the brand finds itself competing
technology and capabilities. Certainly, with a variety of other restaurants for
there are many brands that are racing “I see the pace of consumer’s attention, especially through
to create endless new initiatives,” Lewis innovation likely its communications.
says. “That’s not us. We’re interested
in introducing the right features and continuing to accelerate, “Even though we are a quick-service
functionality to truly enhance the guest so distinguishing those restaurant brand, we’re competing
experience in a distinctly SONIC way with all the other emails that you might
versus just being buzzworthy. I see the true difference makers receive,” Lewis says. “We want to
pace of innovation likely continuing from short-lived trends outperform our competitors’ emails in
to accelerate, so distinguishing those is going to require more your inbox, but it’s also important to
true difference makers from short-lived compete overall for that mindshare. In
trends is going to require more and and more discernment that regard, there are certainly specific
more discernment on our part.” on our part.” cases where you can’t look just within
our industry, but you have to consider
One area they are focusing on the consumer’s overall attention span
considerably is how to take what is and how you get to be a part of it.”
already a distinct experience and make “If you create a profile and then check in
it highly personalized for the millions through our app, your picture appears on If only those emails could arrive on
of customers who pull into one of their the POPS screen and it says, ‘Welcome roller skates.
drive-ins and place an order. back.’ That’s the opening step. Moving
Driving Engagement
Among Your Loyalty Base
Five Proven Promotional Tactics
Kaitlyn Mitchell
Director of Loyalty
at HelloWorld
ONE
Guaranteed Rewards
Entice loyalty members by giving them bonus loyalty points, a guaranteed reward, or a
coupon offer for their next purchase. In our research, 37% of shoppers indicate that they
would be more likely to purchase a product over a competitor if there was a guaranteed
37%
reward or coupon offer*. Take advantage of product launches or special times of year by
offering a chance to earn bonus points for purchase.
of shoppers indicate
TWO that they would be more
Chances to Win likely to purchase a product
Use instant win games, personality tests, trivia, and sweepstakes within your loyalty over a competitor if there
program to give members a chance to earn additional points, win prizes, or access was a guaranteed reward
exclusive content. On average, our data shows that sweepstakes tactics encourage or coupon offer
consumers to return to a campaign three to five times within the promotion period,
which makes it an effective tactic to drive engagement to your loyalty program. - HelloWorld’s Digital and In-Store
Engagement Report 2017
THREE
Mobile Offers
Deliver real-time coupons or offers to your members to build loyalty and drive purchase.
With 45% of consumers preferring to access offers on their phone or via SMS while
in-store*, mobile is a key channel to hook them. Consider a surprise and delight offer
that pops up as a notification. Scheduling these in a streak of offers that increase
in value as members redeem is an irresistible way to drive purchase while keeping
members excited about your program. 45%
FOUR
Viral Activity
Encourage members to snap photos or share content with a promotional hashtag on of consumers prefer
Instagram or Twitter. This promotional overlay can drive buzz, excitement, and activity to access offers on their
for your brand. Our benchmarks show that consumers will participate in social media phone or via SMS
programs up to three times throughout the program period. while in-store
- HelloWorld’s Digital and In-Store
FIVE Engagement Report 2017
Engagement Hubs
Even without a formal loyalty program, there are many ways to inspire long-term loyalty.
Engagement hubs (sites designed to incentivize interaction with branded content) are
an effective way to keep your brand top of mind. Tactics may include hashtag and photo
contests, advergames, collect & win campaigns, surveys, viewing branded content or
videos, and more.
Karine Del Moro is Vice President at Confirmit and approach to the Voice of the Customer. A Certified Net
has 20 years experience designing and managing Promoter Associate and Certified Customer Experience
marketing programs, including customer retention Professional (CCXP), Karine has considerable knowledge
and business development. Karine was instrumental on best practices in customer experience management.
in the development of Confirmit Voices, a customer She is a recognized speaker and thought leader in the Voice
engagement model that provides an end-to-end of the Customer industry.
Customer Experience, and its close friends, customer satisfaction That means providing true clarity into what really motivates
and customer loyalty, are rather well-established as indicators of the board-level executives to invest in CX. To demonstrate this
repeat business and increased spend. Customer Experience (CX) value, companies need to build and maintain a systematic and
is generally recognized as a critical competitive battleground in a disciplined financial argument to invest in a successful CX pro-
world where price and product features are increasingly gram and initiatives that deliver results and business change.
homogenous.
For board-level executives, revenue and profit are the language
So, in many respects it is frustrating, if not surprising, that CX must of choice, so securing budget and authority to implement a
still justify its existence. But that is the reality we face, and in the strategic VoC program must involve proving that the program
long run it is the best approach. Any CX program that was brought can make an impact on the bottom line.
into life by being seen as “the right thing to do” will be on thin ice
when budgets are tight, so we need to ensure we present a real Making the financial case for CX at this level may seem like a
business case to get senior support. complex task, but it should follow the same core principles as
any other investment:
Three Ways to
Create a Culture of
Marc Vanlerberghe
CMO | Medallia
Marc Vanlerberghe leads Medallia’s
Global Marketing organization. Prior
to Medallia, Marc was VP of Marketing
for Access and Energy at Google.
93%
airport and pass through security quickly with the use of thumbprint
technology and biometrics at easy-to-use kiosks. This year, Medal-
lia partnered with the VA to give VA employees real-time access to
80%
veterans’ feedback to help identify and correct both one-off and sys-
temic problems, and also identify new sources of value for veterans.
Unstructured Data
It’s not just possible, it’s imperative that organizations connect with
Structured Data
their customers and take action on their feedback.
We’ve found three best practices that enable established companies 3. If you want a reality check, listen to your
to innovate and become truly customer obsessed. employees
Your employees are the ones on the front lines interacting with
1. Consistently integrate customer feedback customers, designing processes, and making adaptations.The best
way to get real input is by engaging with your employees regularly and
from digital channels listening to their feedback. Then take those learnings back to your team
and bring reality into your business. Omni Hotels is a great example.
Today’s customers have extremely high expectations for a unified
A staggering 97.6 percent of Omni properties log into Medallia daily
cross-channel experience. It’s important to focus on digital first, as
to access actionable, real-time data measuring customer experience.
customers are shifting from brick and mortar stores to using websites
and apps on their smartphones. Most customers will soon manage an
At every Omni property, each morning begins with the staff review-
estimated 85 percent of brand interactions without speaking to a human.
ing customer feedback from the previous day. Their employees then
discuss specific problems and general trends, and managers
Although the vast majority of customer journeys begin on the web
give guidance and goals for the day. This has led to Omni winning
and mobile devices, many companies are still flying blind. It’s
numerous accolades for their great service and averaging 8.8 (on a
vital to solicit feedback and gather data on the consumer’s web and
10-point scale) for Overall Satisfaction across all properties for the
in-app experiences and integrate it into a unified view of the overall
past three years.
customer experience. Medallia for Digital, for example, helps companies
collect this feedback and turn this feedback into clear action plans
The solution is simple: focus on what’s working and continue
for improvement.
to do more of that. Listen to your employees, listen to your
customers, and then share that information at all levels of the
company to create a culture that is truly customer obsessed.
Chris Barnett
VP, Strategic Services
The Lacek Group
Emotional brand stories get a lot of play these days — in articles, social media
posts and more. After all, there’s enormous appeal to transformative customer
experiences. They’re fun to talk about as marketers and even more compelling
to experience as consumers.
Consider the first time Oprah Winfrey shocked her in-studio audience
by giving each of them all of her “favorite things.” Or the media splash
that followed when every audience member received a new Pontiac?
As Winfrey later explained, “It’s about knowing that something really
magical and joyful and wonderful can happen to you when you least
expect it.”
In fact, the research says that while the value of a product or service is ultimately up to the consumer, there are universal building blocks of value
— including elements of rational value like currency, promotions, and partnerships — that can be used in new combinations to deliver greater
value, stronger consumer loyalty and a bigger bottom line. Thus, as marketers, we need to push back against the idea that emotional rewards
alone win the day.
Moreover, just because consumers love surprises and amazing experiences, that doesn’t mean they aren’t emotional about rational benefits.
As evidenced by past public reactions to program currency changes, customers feel attached to earning and redeeming too.
CHANNELS, CONTENT
That’s because emotional benefits are seldom as scalable as rational & MESSAGING
benefits. In most cases, extending emotional benefits to broad audiences
would wreak havoc on a program’s financial foundations and/or exceed
the company’s ability to consistently deliver them. In addition, emotional Explicit Value Proposition
The reasons members join and initially engage with a program -
benefits that are scalable generally aren’t compelling enough to drive core elements they consider the “advantages of membership.”
longer-term loyalty. Often tiered to recognize differences in member value.
HARD SOFT
Listening to consumers also confirms the importance of balanced BENEFITS UTILITY BENEFITS
loyalty program designs. According to research by PwC, the worldwide
professional services firm, 70 percent of global online shoppers name
member-only discounts as their top loyalty program benefit. Collecting Engagement Motivators
reward currencies and accessing hard benefits like free shipping lag Provide a richer experience and targeted value to members -
flexible, dynamic and often phased in over time.
closely behind at 61 and 58 percent respectively. Again, while emotional
benefits play a role, rational benefits are greatly desired. CURRENCY PROMOTIONS
& REWARDS PARTNERSHIPS & OFFERS
Throughout these brand interactions, personalization is key. For Consider National Car Rental. Sure, members of its Emerald Club® loyalty
example, an email may take the form of a personal note, including the program appreciate special offers, a.k.a. hard benefits, but they equally
member’s name and asking for feedback about a recent experience. enjoy the program’s soft benefits and utility, in particular, the ability to
It’s through such personal connections that we build relationships. skip the rental counter and select any car they like — usually with a free
To the extent that marketers can leverage customer data, we can create upgrade — from the Emerald Aisle. The explicit value proposition delivers
the perception of personal relationships across millions of members. rational value and gives members emotional choice and control.
A good example of this experiential wrapper plus personalization is To recap: Offering both emotional and rational benefits is vital to creating
Mr. Porter. When I first joined the online men’s retailer, I had to look a strong loyalty program. That said, remember that most successful loyalty
twice when its logo suddenly transformed from Mr. Porter into my programs evolve; some initially offer rational benefits and layer on emotional
name, Mr. Barnett. Talk about personalization. After placing an order, benefits. Leave room too for future innovations and technology adoption.
I received my merchandise, a thank-you note and a pocket square as Finally, every company needs to be cognizant of a changing business
an unexpected gift. Today, I receive shopping-event invitations, free environment and competitors — and adjust loyalty program features to suit.
shipping, a weekly online style guide and more. In short, Mr. Porter
offers a lifestyle, expressed across all member touchpoints, while
delivering emotional and rational value.
Brand Vision
We’ve always been a very technology-focused It’s a combination depending on the channel.
company from the very beginning. We’ve always The retailers have said they want to tell our
had an iPad-based point-of-sale system. We felt like unique story. Their consumers want to have a
that was a very easy system for our team members connection with the food, how it’s grown, and
to use and learn. We want to always be on that the people behind it. We’ve worked closely
cutting edge of technology while still offering a very with the stores and our selling partners at retail
traditional product and a very traditional service so to bring those stories to life.
it’s a balance. It’s a part of who we are.
Distribution is a big thing for us in trying to I think our strength is—and always has
create a presence. Online, we can fill the gaps been—our diversity. By that, I mean we hope
in some cases where people might not be near to appeal to pretty much every demographic
a Target or a Walmart or another store where group, because we have something that
they can access our trading card products. The appeals to everyone. We don’t have a niche
omnichannel strategy is making people aware of or certain focus. When you go into an H&M
new product offerings like Topps Now or the digital store you can pretty much find everything
apps for digital trading cards. It’s really through these days. We’ve expanded our sports
digital marketing, social media paid and earned, collections, for instance. The idea is that you
email marketing that we do through e-commerce should be able to find everything at H&M no
affiliates, and SEO. We really try to create a matter what your preferences are. It’s up to
360-degree strategy to let all fans and customers you basically, and for us it’s really important
know about the specific products we have in to emphasize that diversity.
the marketplace and we may try to target, for
example, Star Wars fans. It’s certainly a little bit of
a different demographic and behavior set as far as Sara Svirsky,
the websites they visit versus baseball fans. Group Manager Film Production,
H&M Global Marketing Dept.
Jeff Heckman,
Director of e-Commerce,
Topps
The
Omnichannel
Path to Mobile
Loyalty Success
Dan Slavin
CEO
CodeBroker
Everyone wants to boost engagement in their loyalty program, find an effective way to
capture the interest of millennials, and nail the perfect contact strategy for each of their
members. There’s no doubt that a sound, carefully planned mobile strategy is a key
component to address these challenges.
Consider that 43 percent of consumers say that carrying a Consumer Preference on How
loyalty card is a primary pain point with loyalty programs, and
71 percent say they would be more likely to use a program to Access Loyalty Programs
if they could do so from their smartphone, according to a
34.75%
CodeBroker mobile loyalty survey.
Text Message
But which mobile channel should you pursue? It’s a good idea
to probe a little deeper into those survey results. The 1,207
consumers surveyed did not share the same preferences about
how to interact with their loyalty programs.
Mobile App 18.5%
Mobile is a platform with several channels, and what works for
Apple Wallet
or Android Pay 15.4%
one consumer may not work for another. The best results will
be achieved by inviting consumers to enroll and allowing them
to access cards and rewards via their preferred mobile channel.
Other 31.2%
According to an EKN mobile loyalty study, 61 percent
of retailers believe the most important element in
building a comprehensive personalization strategy
is being able to make it work across many channels;
and average basket size is expected to jump 10 percent
as a result.
Acquisition:
When promoting your program, increase
your member sign-ups by offering multiple
sign-up options.
Engagement:
Customers will be more likely to engage
with your program if they can do so via
their preferred channel.
Contact Strategy:
Your program will be more effective knowing the
customer’s preference for contacts. Contacting
them via the communication channel of their
choice is much more likely to result in successful
long-term engagement. Get used to an omnichannel approach to mobile loyalty. We know
that millennials are much more likely to enroll in the first place if they
can do so via their preferred mobile channel. By delivering relevant
communications, integrated across multiple channels, and learning
Mobile L gement
and Enga nnel approacthitisdoes
nicha enticing, bu
The om e and ning.
inclusiev proper plan
• Existing members who add or convert to mobile should have their
requir ters records automatically synced.
ew poin
af
Here are n mind: • Deploy mobile analytics capabilities so you can track engagement.
i
to keep Knowing how your customers interact with your loyalty program
gives you insight on how to refine your tactics.
TheValue
of Loyalty
Jonathan Seabolt
Head of Sales & Strategy
LoyaltyEdge
Breach (noun) \ ˈbrēch \: The breach included Social Security Numbers of 143 million
consumers as well as 11 million individuals who also had
a law, obligation, tie, or for employment and verification income obtained through
various sources, including banks.
standard a breach While that information hasn’t been compromised yet, all that
This word is now synonymous with banking, credit scores, Forrester Research, one of the sources I regularly use for desk
quick service restaurants and just about any company who research, recently served me with this message upon login,1
has your Personally Identifiable Information (PII). As you
probably know by now and with a 48 percent chance of “Today, we announced that Forrester.com experienced a
falling victim to it, Equifax recently disclosed one of the cybersecurity incident this week. To date, our investigation
most significant data breaches in history. has determined that the attack was limited to research
reports made available to Forrester clients on Forrester.com.”
LIOR ARUSSY
When employees are empowered to make a difference and see the 6. Purpose-centric rituals – Create culture rituals that carry out the
impact they make in the eyes of the people whom they serve, they company’s purpose and fulfillment on a regular basis. Make sure that
the purpose is at the center of everything that you do and discuss.
know that they matter, and they act accordingly. So, how do we
translate the intended culture to an operational behavior for each and
When discussing culture with executives, we often see the reluctance in their
every one of your employees?
eyes. They all admit how important it is, but few champion culture as often as
1. Love your customer – Speak about your customer as a person you love to they should. Through deeper discussion, we find that they feel uncomfortable,
work with. Humanize his or her needs, and develop an approach to connect assuming it will portray them as weak and less commanding. Living by
with him or her emotionally. your purpose is probably the most empowering thing you can do in your
2. Do the human thing first – Explore ways to demonstrate empathy and organization.
sympathy when relevant. Always focus on how you make your customer feel
first. This emotion will determine their advocacy Allowing your employees to see your humanity and your commitment to
and loyalty.
making a difference. The purpose-driven leader gets the most commitment
3. Empower to surprise – Provide your team with the tools, knowledge, from employees and creates the most impact. Delivering culture often
decision scope, and confidence to approach difficult situations so that they and authentically is the new way to attract the best talent and most loyal
may turn “difficult” into “delightful.”
customers. It is at the center of delivering the results you promised. Let’s
start by being human.
YOUR
MARKETING
WORKED!
OR DID IT...
Brad Rukstales
President and Chief Executive Officer
Cogensia
IT FINANCE
MARKETING MARKETING
1. Wrongly Measured Impact: give you an extremely valuable and honest assessment of the impact of
your marketing. Suppose 16% of your eClub customers, who received a
Promo code redemptions do not necessarily equal impact.
promotion, made a purchase. In the control group, it could be, say, 12%.
A redemption is just that – someone who received your email and showed
The incremental performance, of the promotion, is 4%. However, the
it to the associate who entered it (or something like it) into the system.
promotion most likely offered a discount to the portion of the 16% who
Most consumers who engage with your marketing are already active with
used the promotion, whereas the 12% didn’t receive the discount. It is
your brand. There is no concrete evidence that this is at all incremental.
MARKETING MEETING
I will say that I have a client who has been able to model a impact by
looking at same store sales and tracking daily redemptions. Over time,
critically important to add sales, discounts, and margin to the analysis to
truly understand the impact of your campaign.
they can understand (and use as a rule of thumb) what that impact is. The next time your CFO asks you how your email campaign performed,
No, I’m not going to say what that rule of thumb is because we see wide you can have an answer.
variation across industries and clients.
ϯϱй
way to link the actual dollars that are received from people that received ϱй
an email. This makes measurement and testing difficult. ϱй
marketing. What activity would your customers have if you didn’t market Ψϵ Discount
Ψϴ͘ϬϬ of $1.60
at all? Controlling for this can be tricky. Can you email only to customers Ψϴ
in certain markets? If so, you can track same-store sales before and after A 4% lift in response
the promotion for the stores in the marketed group versus the stores in the Ψϳ can be eaten away
Ψϲ͘ϰϬ
control group. This will be noticeable if you do have a relatively large eClub Ψϲ͘ϬϬ Ψϲ͘ϬϬ by a 20% discount.
Ψϲ
(or loyalty program, or mobile program – whatever tactic you would like to
ƵƐƚŽŵĞƌsĂůƵĞ
LOYALT-E:
IT’S ALL
ABOUT
THE BRAND
EXPERIENCE.
IS YOURS
READY
FOR 2018?
Kevin Nix
CEO
Stellar Loyalty
If the last few years have taught us anything, it’s that brand experience matters most when
it comes to building loyalty. Rewards may be the icing, but experience is the cake. We know
this from the rapid adoption of approaches that make interacting with the brand a lot more
convenient and satisfying. Advancements like mobile ordering and pay, location-based offers,
and personalized communication are now mainstream. The brands that have adopted these
methods are thriving, while those that haven’t are stalling.
1 Using Experiential to
Once in the store, beacon technology can Excelling
4 (for Real)
provide personalized messages in-aisle, making
Drive Emotion offers and recommendations as they make their
at Mobile
According to the Freeman Global Brand way through the store. Shoppers can also get The one-off, me-too mobile app is dead. More
Experience Study, one in three CMOs expects reminders about past purchases in case they engaging, rewarding, and higher-functioning
to spend between 21 and 50 percent of their want to repurchase. These features turn the mobile experiences will be key to keeping
budget on brand experience marketing over the shopping experience into a smart, assisted tour consumer loyalty alive. This means more
next three to five years. Experiential spend is through the aisles. relevant and satisfying interactions such as
growing because marketers see it’s one of the receiving a communication when a desired item
most effective ways to build brand loyalty. just became available or getting a special offer
Blending Physical and Digital on a favorite drink at the coffee shop around the
2 corner or being the first among their friends to
Assets More Effectively
Augmented Reality receive exclusive news and information.
Successful retail brands will leverage their brick
Unique immersive experiences help forge an and mortar assets in new ways to compete Content is king for mobile. Great content must
emotional connection by engaging multiple against Amazon and other pure digital plays, be relevant and entertaining and be delivered at
senses. We’re already seeing increasingly more using their physical real estate to deliver unique the right frequency to ensure memorable brand
creative applications of augmented reality experiences the online channel cannot. Exclusive experiences.
(AR) to create differentiation and amaze product demos that let you try-before-you-buy,
brand customers. access to pre-released items, elite experiences
with experts, and quicker, easier purchase Exalting Simplicity
Take for example M&M’s launch of its new pickups are all tactics physical brands will 5
caramel flavor with a special AR experience leverage.
and Convenience
in Times Square. “M&M’S ARcade,” campaign Above all, experiences have got to be simple
turned a dozen billboards into an AR arcade Conversely, digital brands will mimic certain and make customers’ lives easier. Certain airlines
consumers could play on their mobile phones. aspects of the physical world. Consider how and hotels have been ahead of the curve in this
The launch garnered over 466 million Wayfair uses its WayfairView AR app to let regard. They’ve evolved their programs beyond
impressions, but more than that, it created an customers test how renderings of the online miles and points to offer new kinds of perks to
unforgettable brand experience that reached far retailer’s home furnishings look in their homes. different customers, taking not just price, but
beyond Times Square. the entire customer experience into account.
Not every brand can pull off such a massive Personalization Perks like expedited security lines, mobile
AR stunt, but consider what AR can do in-store. 3 boarding passes, the option to pick their own
With image recognition and AR, consumers can and Customization
hotel room and keyless room entry have
simply “point and shoot” their mobile device at been embraced by harried travelers. These
a product to unlock key features, benefits, and Consumers like brands that take an interest in
them. Successful brands understand this and are approaches that help simplify their lives
comparison data. According to a 2016 study by engender loyalty that runs deep.
Interactions Consumer Experience Marketing, investing in backend technology to really know
71 percent of shoppers said they would shop at a their customers – not just their spending history,
but their preferences, behaviors and purchase These five practices are quickly gaining traction
retailer more often if they used AR. Moreover, as retailers witness the successes of competitors
72 percent of shoppers who have used AR said habits. This will transform the mundane
experience of entering a store into an engaging, who are taking fuller advantage of these
they purchased items they weren’t planning to. trends. Yet this is only the tip of the iceberg: the
personalized digital “meet and greet” by which
the staff can recognize and better serve the evolution and adoption of these practices is
There is no doubt that 2018 will be the year AR guaranteed to accelerate and elevate in the year
goes truly mainstream, combining value-added customer.
ahead. There’s no patience for mediocre loyalty
information, entertainment, and experience to programs or retail experiences. Either you’re
generate greater engagement and loyalty. Consumers also want to have control over
their brand communication. As a result, winning at the brand experience game or you’re
communication will become increasingly on your way to losing.
tailored to the consumer’s needs versus
Location-based Technology
generic ad offers.
Expect, too, to see location technology become
Driving this wave of hyper personalization
more prevalent and precise. Geo-fencing
is a nimbler use of Big Data, analytics and
technology can deliver offers to consumers’
Machine Learning which will all act in concert
smartphones in close proximity. Nearly three
to increase the intelligence of retailers’
quarters of consumers say they follow through
customer engagement systems. Increasingly,
with a call to action if they receive it near
these systems will proactively communicate
the retailer’s physical location (Source MDG
with loyalty marketing on key trends and
Advertising).
opportunities as well as recommend actions
to detect and prevent consumer churn.
FROM MACRO
TO MICRO:
NEW DIRECTIONS
FOR COALITION
PROGRAMS
Ritesh Bhavnani
Co-Founder, President, Chief Technology Officer and Director
Snipp Interactive Inc.
Coalition programs (when successful!) are the holy grail for loyalty marketers and brands. Unlike single
brand loyalty programs, a coalition program brings multiple businesses together under one loyalty program
umbrella. Consumers can earn points across the various businesses and subsequently spend their points
on a similarly wide variety of rewards provided by those businesses. Many of the most well-known loyalty
programs today are coalition programs, and programs like Aeroplan (Canada), Nectar (UK), SMILES (Brazil),
AirMiles (various countries) are well known – and wildly successful – in their home countries.
In Finland and South Korea, the penetration levels of the leading coalition programs (K-Plussa and OK Cashbag respectively)
among adults have already exceeded 85 percent. In fact, according to Finaccord, over 2 billion people worldwide are
members of at least one coalition loyalty program.
There’s a reason coalition programs work: by leveraging the collective strength of all partners, individual brands within the coalition benefit
from increased engagement, a greater sense of value and engender loyalty to their own programs. Most importantly, coalition programs offer
consumers much greater convenience and flexibility in being able to collect and spend points across several different businesses – and that
matters greatly to consumers. An American Express study found that 72 percent of Americans prefer a program that allows them to shop at
many stores versus a singlebrand, and Collinson Latitude research found that 82 percent of consumers said loyalty programs would be better
if they offered more choice.
Most of the coalition loyalty programs that people interact with today shop at independent stores on their own high streets instead
tend to be large nationwide programs. These programs typically all of at big box retailers. Geographically adjacent stores could easily
have a similar structure and operating formula to them (they usually band together and create their own loyalty program that would
only include retailers and not multichannel brands; and usually have a increase foot traffic and basket values for all coalition members.
combination of one grocery store, one gas retailer and one or more
airline partners). Historically, such programs have been very expensive Such micro-coalitions can be a boon for all kinds of different commu-
to set up, even more costly and cumbersome to maintain, and have nity-based marketing efforts, as well as for business development
required millions upon millions of members to justify the expenditures agencies and other government entities charged with developing com-
and generate an ROI for participating brands. merce in a particular area.
However, the pervasiveness of smartphones and tablets, and technolo- Interest-Based Coalitions
gies like card-linking (like Empyr and CardSpring), receipt processing Consumers are increasingly self-segmenting themselves into narrow,
(like Snipp), and new forms of card payments (like Square) have the specific and highly identifiable “interest-based” clusters –either
potential to change both the economics and the dynamics for coalition based on lifestyles (e.g. people who only purchase green /organic/
programs. These technologies significantly drive down the startup and sustainable products), a particular time in their lives (e.g. those who
maintenance costs required for coalition programs (by removing the are about \to have or have just had a baby), politics (e.g. those who
need for costly POS hardware and/or POS system integrations), while are strongly conservative), religion, etc. Retailers and brands who are
at the same time offering significantly more flexibility and customization focused on serving those specific segments could band together to
than was previously possible (by effectively leveraging mobile and its create highly-targeted loyalty programs aimed at those particular audi-
attendant features). ences.
Taken together, these new technologies open up the possibility for In these instances, the coalition program itself would act as a
entirely new kinds of coalition programs. trusted curator and play a significant role in the discovery process or
consumers. For example, if there was a “Green Loyalty” program that
Small Business Coalitions a consumer belonged to and trusted, they could rest easy knowing
Historically, coalition programs have comprised of a few very large that all the brands and retailers that were part of the program had
businesses partnering together. As mentioned, though, new technolo- been carefully curated based on a published set of key qualifications.
gies have significantly reduced the barriers to entry and setup costs This would ensure that consumers would be more likely to purchase
|for such programs – enabling small businesses to just as effectively products offered by participating coalition businesses.
participate as large ones. Probably the best example of this is Belly,
which has signed up over 8,500 businesses across 2,500 cities and Pop-Up Coalitions
created a very strong value proposition for consumers and merchants. One can imagine taking this trend to an extreme and creating tempo-
Consumers only need to sign up to one program, but can use the same rary coalitions for special events (e.g. World Cup, Olympics), holidays
membership across numerous different businesses; merchants get a (Christmas) or a variety of other time-bound occasions. The logic and
cost-effective and flexible way to not just launch a loyalty program for incentives for doing so are similar to those of interest-based coalitions.
existing customers, but can also leverage the Belly network to draw in
new customers. Once the structures and software are in place, setting up new kinds of
coalitions can be a relatively straightforward exercise. Where previ-
Micro-Coalitions ously the setup and marketing costs for coalitions were such that they
The convergence of technologies previously mentioned makes it much could only be entertained by large businesses and required millions of
easier to create and launch “micro-coalitions” of small groups of related members to be successful, technology today allows us to experiment
businesses. An excellent application for such micro-coalitions would be with multitudes of different kinds of loyalty programs and significantly
for the burgeoning “Shop Local” movement that encourages people to reduces the barriers to launch for these kinds of programs. Expect to
see many more coalition programs, both large and small!
The Foundation
of a Powerful
Member
Retention
Strategy
to distinguish a brand. Companies now who are at risk of becoming disengaged.
Mark Jones
Director
must develop member-focused marketing Management can then proactively target
PWC strategies that keep the most valued marketing strategies to re-engage these
members engaged and prevent them from members with the brand. However, before
losing interest in the brand. embarking on the development of a
Loyalty programs date back a century
member-engagement model, companies
or more to businesses that issued faux
must first define what constitutes member
currencies to customers in reward for Seeking a higher return on their loyalty
engagement, which may vary by member
their purchases. Over the past three program spend, leading companies are
segment.
decades, loyalty programs have evolved looking toward improving the engagement
substantially, becoming effective tools of existing members in addition to
in improving a brand’s image and a prospecting for new business. With vast What is member
company’s revenue. As a result, companies amounts of data providing significant engagement?
compete vigorously to grow their member information about the past behavior of
base, and customers are inundated with existing members, companies are building The level of member engagement varies,
depending on the type of business and the
offers to join loyalty programs with each member engagement models to aid
nature of the member’s relationship with
in-store or online purchase. According management in developing strategies the brand (e.g. spend, number of transactions,
to Colloquy1 , the average American to improve member retention and co-branded credit card). Loyalty programs,
household has signed up for nearly 30 direct targeted marketing to their most such as those in the hospitality and airline
industries, must explicitly define engagement,
loyalty program memberships. Because valued members. For a relatively modest since members may discontinue or reduce
there are so many programs, simply investment, models can be built that alert utilization of services at any time
offering a program is no longer enough companies to highly valued members without notice.
the member-engagement model while segmentation strategy to loyalty programs, product offerings, and
the impact of marketing interventions may
monitoring and recalibrating the model After assessing the data, the next step significantly affect member behavior. A
on a regular, ongoing basis. is to analyze the data to determine an well-designed model should adapt to these
effective member segmentation strategy. changes, automatically or through manual
A segmentation strategy should identify
Assess the data relatively homogeneous blocks of
intervention.
The first step in creating a predictive analytics members that display similar engagement
solution to model member engagement is to characteristics. In conclusion
assess the available data in four dimensions: The definition of the level of member Companies devote significant resources to
engagement should vary across the identifying and attracting new members,
segmentation. For example, the highest but these same companies often lose sight
value members may utilize the product or of the foregone revenue resulting from
NUMBER QUALITY service as often as several times each week, existing members who become disengaged
OF AVAILABLE OF DATA compared to only a few times each year for
DATA FIELDS CAPTURED from their programs. As a result, prescient
the lowest value members. This step in the companies have begun to change their focus,
analysis may reveal that limited value may leveraging the vast amount of data they
ABILITY
result from a member-engagement model collect from current members to identify
VOLUME TO ATTACH focused on the least engaged members. valued members at risk of disengagement. By
OF DATA EXTERNAL
doing so, management can develop effective,
DATA
targeted marketing strategies to keep
Build and implement the members from disengaging in the first place.
member-engagement model This analytics approach also provides deep
Available data fields insights into the drivers of customer loyalty,
After assessing the data and implementing which management can use to design more
A member-engagement model can provide
an appropriate segmentation strategy, the effective loyalty programs and improve overall
more information about member behaviors
process of building a model can begin. The member engagement.
if it has more relevant data to work with.
first step is to determine the specific factors
In addition to information describing the
that affect member engagement, separately
type, number, and timing of individual
for each member segment. After modeling
transactions, member-specific information
the selected factors, the factors are validated 1
U.S. Customer Loyalty Program Memberships Top 3 Billion
(e.g. program tenure, demographics, and
to prove their predictive capabilities. for the First Time, 2015 Colloquy Census Shows; colloquy.
loyalty program co-branded credit card com, February 9, 2015
ownership) can provide valuable insights. The Tailoring model output to the business
model development process can help identify need, typically using some type of scoring
non-intuitive relationships between member mechanism, is a critical step in the modeling
characteristics and their behavior. process. Using a scoring mechanism, the
GOING FROM
CONNECTED TO
ENGAGED: THE
EVOLUTION OF
LOYALTY
When building a loyalty program, it’s essential we have a clear under- ENGAGING THROUGH A COMMUNITY: W \ hile many brands say
standing of who the customer is, what gets them to come back and what they have a community, we see a big opportunity in fostering both
they expect. According to Google Think’s “The Power of Gen C: Connect- brand-to-consumer and cross-consumer communication to build an
ing with Your Best Customers” the “Connected Customer” or “Generation engaged community. If done correctly, this type of community can have
Connected” is a new cohort lens to look through while keeping up with these impact to both acquisition and retention. Sephora encourages their
evolving expectations. While most generational segments are clearly Beauty Insider members to upload their “looks,” making members feel that
defined by an age bracket, Gen C is not. They are based on psychograph- the community is exclusive and only for them. While anyone can see the
ics around creation, curation, connection and community. This consumer posts and give a “heart” to the ones they like, only members have special
mindset spans across generations focused on inspiring technology and access to create content. Sephora recognizes their members by giving them
looking for purpose through a community. an icon showing which tier they’re in (such as “Rouge,” “Insider,” or “VIB”)
and how long they’ve been a member using words like “Rookie”
Customer expectations are changing and the same is true for loyalty or “Go-Getter.” There’s also a dedicated section on their website for
programs. We’re seeing programs go beyond transaction-based rewards conversations between members. It operates similarly to a web forum
to focus on engagement-based rewards. As a result, a rising interest in allowing them to contribute by asking and answering questions.
earning points for non-transactional behaviors such as liking a social media
post, publishing a review or sharing a personal story are all vehicles to build GOING FROM CREATION TO CO-CREATION: Connected customers
emotional loyalty. These positive feelings associated with interactions from the create content for expression and form bonds with others. Google Think
brand support both an increase in the customer’s lifetime value and the reports that 90 percent of connected customers create online content
likelihood that they’d come back and spend more. By incentivizing engage- at least once a month because they feel it’s meaningful and necessary.
ment, the brand not only shows that they are listening, but also creates Whether posting an image, video or publishing a review, they want to be
opportunities for members to feel special and recognized. vocal supporters of brands they love. “My Starbucks Ideas” reinforces com-
munity and engagement by letting members come up with ideas that they
Three trends for the future of loyalty: feel would be most relevant to them through solving problems, products/
services and reacting to others. As a result, the bond between the com-
BUILDING AN EMOTIONAL CONNECTION: Tying loyalty programs pany and their most loyal customers is strengthened. A co-creation com-
with a sense of belonging builds trust between members and the munity has helped Starbucks add Wi-Fi, private lounges and bring endless
company’s products/services. User-generated content encourages this exact cups to their storefronts. By giving members the opportunity to not only
behavior. Verizon Small Biz Rewards started a movement in the engage with their favorite brands, but also actively work to make them bet-
industry and launched their Ugly Sweater Sweepstakes, which allowed small ter, members feel as if their voice matters – which leads to greater loyalty.
business owners to upload a photo of themselves in an ugly sweater with a
holiday theme, giving members a chance to earn points and entries into Bottom Line: Engagement-based earning is the new loyalty marketing.
the sweepstakes. The grand prize winner won a $15,000 Reloadable
Verizon Small Biz Rewards Prepaid MasterCard and five other winners won The change in customer expectations had a direct effect on how loyalty
$1,000. This was timely, relevant and made members feel as if they were programs offer rewards. Now they are using more engagement-based
“breaking out of the holiday monotony.” The emotional appeal around this rewards to make their most loyal customers feel good and come back.
circumstance showed how the brand was authentic and started a genuine Fostering community through user-generated content makes an impact on
dialogue between the members and the brand. customer loyalty and co-creation will continue to play a role in 2018.
Caesars Entertainment has been a powerhouse Another crucial piece of the brand’s CX initiative protocol designed to create guest experiences
in the customer loyalty space for years, and is Ivy, the brand’s chatbot concierge available that are both effective and, perhaps even more
solidified its place among the best brands in the to guests at select locations. This staple of importantly, unique to the brand.
business by being named the 2017 Company the Caesars customer experience has the
of the Year at the Loyalty360 Customer Expo in power to respond naturally to guest inquiries Building this kind of differentiating commitment
Nashville in November. including information on amenities and checkout to
the customer takes more than theoretical
assistance, allowing front-desk associates research, however, and that’s where Caesars
Caesars also earned a Loyalty360 Honors to focus entirely on providing memorable Circle comes in. An exclusive group of both
Award for Operational Innovation, Gold experiences for customers. Ivy is a proven current and potential Total Rewards members,
Awards for both Loyalty & Advocacy as well success, improving guest engagement, service Caesars Circle serves as a constant source of
as Organizational Commitment, and a Silver satisfaction, and likelihood to recommend at feedback for the brand. A great example of the
Award for Operational Excellence at the Expo. In locations offering the technology. effectiveness of the Caesars Circle program is
addition, it won the Platinum Award in the Brand the improvement in customer reaction to the
360-Degree Award category. To qualify for the Another advantage of the Ivy platform is Caesars Entertainment loyalty app, Play by Total
360-Degree Award, a company must submit an its scalability: from its largest resorts to its Rewards. After the first release of the app the
entry in at least three of the six categories. smallest properties, Caesars is able to markedly company commissioned a study of Caesars
improve the customer experience through the Circle customers to see how we could improve
The cornerstone of the Caesars loyalty automation provided by Ivy. the app in our next iteration. The brand was
effort is its rewards program, Total Rewards. able to gather precise metrics regarding app
Unsurprisingly,
given the space occupied by the Beyond its technological advancements, the usage, and shape future updates of the program
Caesars brand, Total Rewards makes extensive strength of the Caesars customer experience accordingly.
use of gamification to engage customers and is largely thanks to its frontline associates. To
incent interactivity with the brand. ensure that each and every guest receives the
best possible experience, Caesars has created a
In one example, players were tasked with philosophy it calls Delight and Deliver.
earning badges by playing in each Caesars
property. With each badge earned out of a Delight encompasses the behavior of people at
possible 36, players earned progress toward all levels and includes the skill, ability, attitude,
higher tiers within the Total Rewards program. and empathy presented daily by staff. Deliver
The promotion was a success, with the brand covers everything in the quality space such
seeing increased engagement and play revenue as speed of service, process, clean and safe
when measured year-over-year. By offering environments, functionality of equipment
(non-redeemable) tier status points, the brand and technology, and product presentation.
was able to create strong incentive for guests, By “delighting” the customer with engaged
while avoiding costs often associated with employees and “delivering” with its CX process
similar promotions—a win-win for both the in place, Caesars has established operational
brand and its customers.
With customer loyalty now being latest theories, best practices, relevant
recognized as the key to business success, case studies, emerging trends, and
brands who excel in the effort were strategies that drive measurable behavioral
honored at the Loyalty360 Customer change and quantifiable results.
Awards dinner during the inaugural
Customer Expo in Nashville in November. “We had more than 100 brands submit
entries and this year’s winners demonstrated
The Customer Expo focused on all aspects excellence in customer-centricity,” said
of the customer journey, including an Loyalty360 CEO and CMO Mark Johnson.
exploration of crucial audiences both “The awards recognize brands that are
internal and external. Through a robust truly working to build stronger and deeper
slate of best-in-class speakers and relationships with their customers. The
interactive discussions, actionable case categories represent key tenets of a brand’s
studies, and proven world class technology interactions with its customers.”
suppliers, attendees learned about the
2017 2017
From its beginning, Overstock.com has been about bringing big Sberbank today is the largest bank in Eastern and Central Europe,
ideas to life. Its 1,700 employees have cultivated an organization with 129 million retail customers, 12 territorial banks and more
and atmosphere that values great ideas, and acting on these ideas than 16,000 branches. More than 70 percent of Russian citizens
is what has allowed the company to continue to evolve and grow use the bank. It has more than 30 million online users, 18 million
into a leading online retailer with $1.8 billion in revenue in 2016. mobile users, 90,000 ATM machines and 260,000 employees.
The company recently redefined its Customer Care team’s training The company’s mantra is “Everything for our customer,” and
process, relaunched its Quality Program and re-evaluated its employee—including the vice presidents and board members—
customer loyalty program. It also enhanced its mobile apps to are judged quarterly by how well they follow that rule. The results
offer customers a personalized experience, including a soon-to-be of the review determine the employee’s benefits.
introduced Augmented Reality feature.
In 2015, Sberbank implemented a new customer-centric model
As a result, it’s seen a 2 percent improvement in First Contact based on a customer priorities survey, and it receives more
Resolution to 78.1 percent. Its Incident Resolution Time saw a 50 than 6 million responses each month. In 2016, Sperbank also
percent improvement, and its service level is up 25 percent from implemented an automatic text messaging survey to gauge
last year to 91 percent. customer satisfaction levels.
Finalists Finalists
2017
2017
AARP is one of the largest nonprofit, nonpartisan, social welfare RBC is the largest bank in Canada and 12th-largest bank in the
organization’s in the world, with nearly 38 million members. The world based on market capitalization, serving more than 16 million
organization offers a wide range of benefits to its members while clients in Canada, the U.S., and 36 other countries.
also rewarding them with its loyalty program, Rewards for Good.
RBC’s most recent innovation, the RBC Rewards App, has helped shift
The program uses data to guide discovery on topics that matter most consumer behavior to be always on and always connected with
to people age 50 plus, and identify interested individuals, create instant access to information. Its new RBC Offers platform allows
a connective thread through its digital ecosystem, track content clients to receive relevant merchant-funded cash-back and bonus
consumption and browsing behavior, and motivate learning related to points offers based on their transaction history, and presents these
AARP’s social mission. offers via digital channels.
The data also helps AARP prove that engaging with the brand leads to Through the program’s data driven targeting capabilities and card-
high lifetime value and drives conversion to AARP membership and linked offer technology, clients are provided with easy ways to save
renewals. and earn faster, making them feel valued and rewarded.
Finalists Finalists
Wyndham Rewards Ryder System Global Hotel Alliance Best Western Ryder System CIBC
2017
2017
MGM Resorts International is a global entertainment company that Domino’s is a world leader in the pizza/QSR field with 14,200
creates immersive, iconic experiences through its suite of Las Vegas- stores. The company believes loyalty is a more of an organic
inspired brands. Much of the brand’s success can be attributed to its connection between customer and brand that can’t be bought or
ability to acquire new customers through its S.H.O.W. Service Basics manufactured. With this in mind, it engineered its Piece of the Pie
program, which empowers employees to provide guests with the rewards program to go the extra mile in showing appreciation for
on-site experience they’ve come to expect from the brand. customers that demonstrate holistic loyalty.
It also relaunched its website and took steps to ensure guests are being In addition to the traditional options like free pizza, members have
engaged from the moment they visit the site through a personalized a chance to win stock in the company and an actual piece of store
experience featuring tailored offers and account information that, profits through social media engagement with the hashtag
combined with the companies advanced CX practices, creates a #PieceofthePie. The company’s headquarters features displays
holistic guest experience. Members can also select the song for the of winning #PieceofthePie images, and franchisees can recognize
Fountains at Bellagio or get a cooking lesson from a celebrity chef, their most frequent customers, empowering them to demonstrate
and serve to further distinguish the program from others in the space. appreciation in less formal and more personalized ways.
Finalists Finalists
Choice Hotels Nissan & Infiniti RLH Corporation Caesars Best Western Royal Bank of Canada
Loyalty Expo is a true Voice of the Customer-driven, best practice-focused customer loyalty and reward conference.
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