Loyalty Lab Blog

by Joshua Tretakoff | EVP, Services

A lot of clients we’ve worked with focus on rewarding customer shopping behavior. Some are starting to go outside that, broadening the appeal of their programs to award customers for reviews and social networking. H-E-B, a San Antonio-based market chain, decided to increase the appeal of its program by focusing on some issues that are important to its customer: reducing traffic and waste.

Starting tomorrow, Houston residents who sign up with H-E-B for the Commuter Challenge will be able to earn $5 off every $50 in groceries when they earn points by “taking cars off the road.” They’ve teamed up with a third-party company, NuRide, to track the points earnings, and will be encouraging all shoppers to earn jointly towards the goal of “conserving” 15 million miles.

A revision to a loyalty strategy that involves tangible earnings, core customer values, and a joint participation goal? Sounds like a winner to me.

by Mickey Neuberger | VP Loyalty Strategy

Local Mini dealer develops interesting loyalty/retention program based on key insight that car owners defect from dealer servicing when their cars reach a certain age, especially when price is cheaper by 30-50% somewhere else. The solution: a 100k mile club that provides incentives to stay via discounts and badge recognition.

By Mark H. Goldstein | Chairman

I’d always liked these guys and we were going to build a program with competitor Backcountry 2 years back until they back-treaded a bit…..but take a close look at Moosejaw…this is a powerful programs…simple benefits, but what i like most….look how easy they allow you to use points OR $$$ to buy…this is the new world order and what consumers expect and demand..other than 50% off everyday

by Joshua Tretakoff | EVP, Services

Nine West has just launched their Loyalty Lab-powered program, Nine Loves, and you can sign up today.  Valid in any of the hundreds of Nine West stores, on NineWest.com, you earn 10 points for every dollar you spend on the shoes you love today. Plus, you get birthday gifts, possibilities for free shoes, and more!

We’re not usually ones to talk about our great clients here, but this one is irresistible. While we know the program is going to a big hit with the great Nine West customers, we look forward to seeing the new customers who join as a result!

by Joshua Tretakoff | EVP, Services

One of the latest trends with many retail loyalty programs is a shift of emphasis from a hard, points-based accumulation program, to one that emphasizes more exclusive access or “surprise & delight.” While Best Buy is certainly one of the most prevalent points programs out there, they have definitely stepped up the access benefits. For instance, they are now offering $100 off the purchase of an iPhone, exclusively for Premier Silver Reward Zone members.

When you think of how hot this phone is, and that unlike almost every other phone, there are no discounts allowed by Apple, this is a pretty serious perk for loyal customers. Other retailers should follow suite, with special discounts on specific hot products, or the ability to get to the front of the line (think Wii Fit). Augmenting or replacing your points based program with these exclusives is what keeps those customers coming back for more and more.

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:

•  “[Kroger] offered gas discounts and free groceries in exchange for points earned through its loyalty-card program…data from its loyalty-card program are being used to send unique coupon offerings to specific households. “We understand and appreciate that no two customers are alike,” said David Dillon, Kroger’s chairman-CEO. “Some may live in the same city, some in the same neighborhood and even on the same street, but we know that they don’t have the same shopping habits. This level of personalization is a direct link to our customers [that] no other U.S. grocery retailer can replicate.”
• CVS: “Rob Price, the chain’s senior VP-marketing and advertising, pointed out that not all of the retailer’s programs are captured in measured-media data. Its massive ExtraCare loyalty program, for example, is not tracked. That program, which counts more than 50 million cardholders, has spawned more targeted marketing efforts, with promotional offers at the register, coupons, e-mail and direct mail.”

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

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 Joshua Tretakoff | EVP, Services

Halo is one of the most popular videogame franchises ever, inspiring books, fan films, and, most critically, merchandise. McFarlane Toys, has decided to reward Halo fans by offering points for purchasing the action figures, redeemable for special unique Halo-themed merchandise. No word yet if the points will translate back to the game for even more rewards.

by Joshua Tretakoff | EVP, Services

The Dallas Morning News reports on the trend of sit-down restauarants to try to keep their longtime customers coming in by embracing coupon programs. However, buried in the article was this tidbit:

“Dallas-based TGI Friday’s occasionally uses coupons to bolster sales at a particular restaurant. The company’s main focus, however, is on offering discounts to members of its “Give Me More Stripes” customer loyalty program, a spokeswoman said. Members recently were e-mailed $5 off coupons for certain entrées.”

Nice to see that the nationals are realizing that the ROI for loyalty is far higher than coupons. I’m off to eat my green bean fries…