by David Rosen | SVP Strategy & Channel Development
Thank you to Mark Silva of Real Branding for posting this graphic from SXSW today. It’s a great visual of Zappo’s culture = brand = customer loyalty presentation by their CEO Tony Hsieh. Here is a link to the original
by Joshua Tretakoff | EVP, Services
Consumer Goods companies are feeling the pinch of the tough economy; after all, their customers are less inclined than ever to spend money. But an excellent article in Promo this week calls out a prescription for how CPG’s can save money and defray the effects. Not surprisingly, Loyalty is the primary recommendation. Highlights:
by Joshua Tretakoff | EVP, Services
Advertising Age Magazine has a good article today on the retailers who are thriving in the down economy. The common thread through most of their case studies is the presence and prevalence of a strong loyalty program. Salient clips from the article:
There’s also an anecdote about how certain companies who are definitely hurting the most, like Pottery Barn, are rolling out a loyalty program to try to turn the tide. Overall, yet more good reason for retailers to embrace loyalty.
by Joshua Tretakoff | EVP, Services
One of the more controversial aspects of a retail loyalty program is around the concept that a customer is made aware that you, as a retailer, are gathering their purchase information. For some privacy advocates, this seems intrusive, which is why loyalty programs are always opt-in. However, in recent months, some retailers are turning that aspect into a benefit to the customer; recent examples include food retailers being able to contact customers who purchased items that were subject to a recall.
Safeway has decided to add some significant value to their loyalty program, the Safeway Club, by unveiling a special site called FoodFlex. You sign up, input your Club Card number, and within 6 hours they import your last 6 months of shopping data. Once the data is imported, you can then use a series of reporting tools to analyze your purchase history for cholesterol, protein, and more. Best of all, you can then see healthier alternatives to the items you have been purchasing, all without the customer having to enter in a single receipt or write down anything. In addition, the site supports goal setting, as well as advice.
This type of complimentary service allows customers to truly appreciate a retailer as not just a purveyor of goods, but as a partner, and recasts a loyalty program as a two way communication strategy.
by Joshua Tretakoff | EVP, Services
Brandweek reports a study that talks about one of the ancillary effects of having a loyalty program: word of mouth recommendations to others. According to the over 7,000 people interviewed for the study, people in the loyalty program were 70 percent more likely to actively recommend a product, service or brand than the general population.
In an economy where maximizing every dollar is key, being able to retain your best customers AND attract new ones through the same mechanism is increasingly becoming a no-brainer.
by Joshua Tretakoff | EVP, Services
Many retail loyalty programs got their start in grocery, but the vast majority of them are now way beyond that: they’ve evolved from a simple coupon system to a highly sophisticated and personalized dialog between best customers and the retailer. In grocery, specialty gourmet food retailers were the first to make this evolutionary link, and The Gourmet Retailer has a fascinating, in-depth article on how they got to where they are today. It’s a great read, complete with honest examinations of what works and what doesn’t, as well as case studies.
Some nice excerpts:
“If the retailer is an upscale retailer, people should be proud to have it on their key chain. It should be almost a status symbol — similar to an American Express Platinum card — that this is a good thing to have.
“Another important element in building a successful loyalty program is taking the time to look for a company that supplies you with the data, which will, in turn, help serve your customer better.”
by David Rosen | Senior Vice President
Today the Marketing Executives Networking Group released their latest study of current marketing trends. Canvassing over 2000 senior-level marketing professionals across mutliple industries, revealed the following priorities for the new year:
In the words of the study’s authors, “all of which indicate a return to the basics of marketing.”
At Loyalty Lab we’re redoubling our efforts in 2009 to be the most effective, productive and profitable tool for top marketers to manage their best customers, increase retention and promote the highest levels of brand loyalty.
by David Rosen | Senior Vice President
I read today a story about Calgary-based WestJet (The “Southwest Airlines of Canada”).
For many travelers in North America this past week, long lines and crowded planes have been the least of their worries. The news was filled with reports of people stuck in Seattle and struggling to be rebooked after cancellations in much of the East and Midwest.
Meanwhile, in Canada — in the spirit of the holidays — WestJet went out of its way to provide nearly 5000 stranded customers with free meals, hotel rooms and alternate travel options (including charting aircraft from other airlines).
What WestJet understands is that airline loyalty really has little to do with points or perks. What truely endears loyalty to a carrier (or any business for that matter) is that unique connection with their customers at times when the effort is most appreciated.
by Joshua Tretakoff | VP, Account Management
A telling piece in today’s DIRECT that may shed a little light on why so many businesses have been unable to shore up their customers in the wake of the economic downturn.According to the CMO Council, “just under 47% of marketers around the world have ‘good insights into retention rates, customer profitability and lifetime value,’ “And, “more than three-quarters of the respondents believe they aren’t realizing the full revenue potential of their existing customers.”
Wow. Talk about untapped potential. We live in a world of massive computer horsepower and a slew of talented analytics folks. Just choose the right data collection mechanism (say…oh, I don’t know…a loyalty program? 
), and a set of embedded analytics tools, and you’re seeing some pretty significant profitability swings. It may not be as sexy as paying for a Superbowl commerical, but I bet it yields a lot greater ROI.
by Michael Greenberg | President
Many moons ago I wrote an article titled “Build a Fence Around Your Customers” on Chief Marketer. The idea is even more current now given the economic environment.
As a relationship marketer, you cannot forget – even for a day – that your competitors are gunning to take your customers away from you. When discretionary spending starts to move sideways, customers are even more susceptible to the siren song of lower prices and promotions. So now is absolutely the time to stay focused on identifying potential defectors, identifying and servicing top customers, and creating compelling reasons for customers to consolidate wallet share with you.
