Loyalty Lab Blog

by Mickey Neuberger | VP Loyalty Strategy

One of the best marketing examples I’ve seen for driving that next visit.

After my meal at CPK the server handed everyone in my party a secret envelope thank you card BUT DON’T OPEN IT. On your next visit to CPK, a manager will open it for you and you win the prize inside for being a loyal customer … EVERY CARD IS A WINNER. And some envelopes contain $50k prize.  Mine contained a 20% off discount (yeah I opened it).

As if the great Sicilian pizza and BBQ chicken salad weren’t enough.

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

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 | VP, Account Management

Kermit was right. With every statement I get in the mail, whether it be utilities, credit cards, or frequent flyer programs, there is inevitably an included blurb that I could be much greener if I chose to receive my statements online instead. Hey, I’m all about the eco-friendliness, but playing to my guilt to help cut your bottom line costs of mailing is not exactly going to be the best way to get me to save you a few $, or engender my loyalty.

Looks like HSBC has gotten that message, so instead of just hitting their customers with the guilt stick, they are offering a loyalty carrot, with a sweepstakes: cardmembers earn one sweepstakes entry when registering for Online Account Access and an additional two entries when electing to receive paperless statements. It even works for existing guilt-ridden folks who have already registered for online access.

While sweepstakes are not always the most effective method to drive loyal customer behavior, they sure are ideal for something like this. Now we’re hopping.

From the inbox: Today, you may have inadvertently and inaccurately received the below message during an initial email testing process. We sincerely apologize for any inconvenience or confusion. You continue to maintain your current membership status. If you are eligible for the Reward Zone program Premier Black test that will run in a limited number of select markets, we will notify you by a separate email.

Best Buy emailed all its members promoting them to a ‘Black’ loyalty program tier. But then said ‘Sorry—just kidding’. Imagine 5 million members being told, ‘Sorry, we didn’t really mean to invite you to our new party’. It is critical that brands run test lists and be super careful at the trigger. This is a costly mistake and surprising for a mature program.

by Mark H. Goldstein | CEO

The days are over when a 10% marketing spend on online ad campaigns cut it. The pendulum has shifted – and your commitment to engage in a more meaningful online experience is required to hook your most important buyers or buyer influencers.

But it’s not easy and the stakes are high. Getting her attention and keeping it requires that you understand the difference between phony and real, and that your creative agency or marketing partner really ‘gets’ what makes her tick.

My 5 requirements to being successful in this new online ad world:

1. Make your hot new products ‘virtual’ and tradable online–allow your potential customers to forward, share, show-off and try-on your latest fashion, vacation or benefit.

2. Extend into Facebook (and perhaps MySpace). This may require a media buy. But this is likely where she is, and if you think you can build a social island without connectivity, your ad dollars will be wasted.

3. Tie into celebrity or something super-topical. Your new product might be hot – but your definition of hot is nothing compared to Britney, Paris or this week’s new Hollywood release and intra-celeb du jour.

4. Make sure your physical stores (if you have them) aggressively bounce-back to your online promotion and vice-versa.

5. Have a brand or product that has the potential to be talked about as new. Last year’s styles and commodity products need not apply.

Today’s WSJ article got me thinking.

by Mark H. Goldstein | CEO

The retail paradigm continues to change. Its no longer OK to stack product and allow people to transact…not that this is a new observation but its a slightly different perspective for a geeky Silicon Valley guy.

The 50:50 Rule for Retail

by David Rosen | Senior Vice-President

Like many Americans, my family and I look forward to the summer as a chance to get away from home and enjoy a well-deserved vacation. 

Given my fascination (obsession?) with loyalty programs in general, and travel programs in particular, I blindly embrace all hotel, car, air — and even train frequency programs that I come across — often without regard for my privacy and the sanctity of my hotmail inbox.

Why?  For the most part joining travel company’s guest programs yields a better experience — well at least that is the true test of value.  As I’ve opined in the past, I’ve pretty much given up on redeeming the points/miles/stays that I’ve earned, but have come to expect a higher degree of service and general consideration when I travel.

So, planning our trips this summer, I joined two more programs (I think this brings me past the 50 mark just in the travel space — I still keep my Western Airlines TravelPassII card handy just in case).  The first was Loews-First.  From a customer experience standpoint, this program rocks.  Easy to join, relevant fields — including questions tied exclusively to member benefits and preferences (which treat do I want when I check in?  What newspaper do I want in the morning) — what a great way to introduce me to the benefits before I’m even a member.  Submit and I have a number.

I get on the phone to book the room (I want them to match the rate that I found on Hotels.com) and the number is already in the system and the agent has all of my contact and preference information.  And to my “surprise and delight,” I’m already a “Gold” member which includes a free upgrade upon reservation.

Clearly, a well designed and executed program.

Next, I joined Amtrak’s Guest Rewards Program.  OK, I’m not a big rail traveler, I live in California but am headed to New England this summer.  Unfortunately, the program lacks connection to the larger Amtrak experience.  I had to replicate my registration on both sites, I’m receiving emails from both entities and I’m uncertain how I will benefit from the program — but again, truth in advertising, I’m in infrequent rail passenger, so I’m not the definitive source for measuring perceived value.

Bottom line, good lessons for any loyalty program design:

• Keep registration simple and relevant
• Ask profiling questions that communicate the program value while gaining real marketing insights
• Use registration as the first chance to reward – Give something for the Get
• Be fast, be connected, be multi-channel
• Use the program as the primary touchpoint between associates and best customers/guests/members

By Mickey Neuberger | Senior Director, Loyalty Strategy

Re-engagement and inactivity campaigns are a huge part of any customer loyalty or retention management solution. Companies usually target customers who have been inactive for 90-180 days with a “we miss” you message and aggressive limited-time offer. I thought the email below from eBags (after 6-months of inactivity) was particularly good. It uses the touch-point to not only drive me back with a 20% offer but also as an opportunity to identify any problems with product/service.

By Mickey Neuberger | Senior Director, Loyalty Strategy

Good article on Email Is Not Dead, But Preferences Need to Evolve.

Relevancy is more than just targeted content. It’s also communication and frequency preferences. Brands that ask and listen will win the attention of their customers.