Tag Archives: loyalty

TIBCO Loyalty Lab 12.3 release enhances real-time offers and increases value and convenience for shoppers

December 12, 2012

We’re proud to announce an exciting update to our unified marketing platform that allows enhanced real-time offer targeting and qualification capabilities. In response to the feedback we’ve received for more precise and relevant targeting that helps marketers learn more about each customer while providing those customers a more relevant and convenient shopping experience, Loyalty Lab released 12.3, available to all existing and future clients.

Capabilities include:

  • Real-time API enhancements
  • Basket profiles and targeting
  • Brand targeting and qualification

We’ve worked to make implementation as simple as possible. Read on to learn more about each of these improvements.

Real-Time API Enhancements

Marketers can now ensure real-time processing of threshold point calculations and reward issuance, so customers can access benefits as soon as they are accrued. Transactions are sent in real-time from a store’s POS system to TIBCO Loyalty Lab Reward and evaluated. The POS system instantly receives a response with any points, rewards or certificates earned as a result of the transaction. The customer then receives a receipt with their current points balance and rewards earned, and can access their benefits right away ­­– online, in-store or via their mobile phones.

Basket Profiles and Targeting

This latest update also gives marketers greater control over which customer transactions qualify for a reward through pre-defined conditions.

Marketers can set up shopping basket profiles with conditions based on specific tender types used or minimum quantity of items purchased. For example, an offer can be created within the Loyalty Lab Reward platform which establishes that all members making three purchases of a specific brand with an AMEX card will be issued a $20 rebate.

This gives marketers more control over conditions based on the contents of customers’ baskets. Targeting can also require or exclude specific products or brands, in addition to product categories.

Brand Targeting & Qualification

Now, marketers can also more effectively target customers and qualify offers based on brand purchases, right down to individual products. We designed this enhancement to offer more granular targeting and extra control. Marketers can leverage this capability for cross-category selling, which is extremely useful for new product introductions.

For example, an established beauty brand has launched a new lipstick. They can create an offer that awards a coupon for 5% off the purchase of this lipstick, with the qualifier that customers must purchase any item in that brand family.

With these enhancements to the Loyalty Lab Reward platform, the possibilities are endless for marketers looking to extend relevant offers to their customers. Contact us to learn more.

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Teacher Testimonial: How Loyalty Programs Can Help Teachers Outfit Their Classrooms

September 26, 2012

In our back-to-school with loyalty series, we’ve covered college and loyalty in a number of ways. First, we took a look at the students themselves, and examined both how they can benefit from joining top-notch loyalty programs, and how loyalty marketers should consider the student demographic a valuable priority group to target. Second, we discussed the universities themselves, and ways in which they could greatly increase the engagement of their student bodies by employing some of the best tactics used by our loyalty programs.

Today, we’re going back to school even further — to kindergarten. And we’re focusing on one of the most important groups of people behind our educational institutions — the teachers.

Teachers are largely responsible for outfitting their classrooms, acquiring the materials for special activities, and making sure they have everything they need to give their students the most positive school experience possible. Below, we have a testimonial from a first-year kindergarten teacher:

I just graduated college and I spent around $300 out of my own pocket to decorate and prepare my classroom. And I probably spent much less than other teachers because I already had a lot of the art supplies and a lot of other things were donated from friends, past teachers or left over in the classroom.

Remember all of those holiday parties you had in elementary school? Treats for the Halloween, Thanksgiving, and Christmas parties all come out of the teacher’s pockets, too. l also buy snacks for my students to get them through the day. And teachers have to purchase any special supplies we might need for a specific activity as well.

A fresh-out-of-college teacher has no money saved up. I’m paying rent and general life expenses, but I also have to factor in supplies, food and activities for 30 kindergarteners. The school gives an allowance to each grade but that has to be split between all of the teachers and it’s barely enough for one teacher for the whole year.

While teachers are often required to get materials from a ‘specialty store,’ there are still a number of ways that loyalty programs could help ease the cost of classroom-stocking.

Pharmaca’s Feel Better Rewards program is perfect to make sure your classroom is first aid-ready and read to cure the bumps, bruises, cuts, and sniffles that sometimes come with playground antics.

Orchard Supply Hardware’s Club Orchard is a great resource for arts and crafts activities, and for great materials to decorate the classroom and make it a friendly, welcoming place.

As for those classroom parties? Nothing is sure to put huge smiles on students’ faces like a big box of Dunkin’ Donuts. By using a Dunkin’ Donuts Card, teachers can earn Dunkin’ Dollars towards future parties, and more sweet treats for their students.

What other loyalty programs can help our elementary school teachers out?

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The Thrivent Community: Loyalty From the Heart

August 16, 2012

We have seen the impact loyalty programs have on consumer participation and retention. Over the years, programs have been successful focusing around offers and rewards that pull the consumer back in for more. Holding the proverbial carrot over their head; enticing them to remain loyal so they can continue benefitting from deals. But is there another way? Can you create deep rooted loyalty without the constant give and take?

A number of organizations believe that you can.  We’ve spent time this week talking about Thrivent Financial, and how they have managed to successfully cultivate this brand of philanthropic loyalty. What’s particularly impressive is how much of an impact they’ve managed to have considering they were founded in 2001. Within this brief time they have managed to develop a devoted membership of more than 2.5 million. How? Through a strong chapter oriented program that is deeply invested in the unique communities of its members.

Thrivent has a broad stretch of influence focused on building, enhancing and maintaining strong communities, thanks to those members’ involvement in local community chapters (1,336 nationwide). And then there are the personalized benefits, like Thrivent Choice, which we discussed as a prime example of ways to directly involve members, and reward them by giving them the opportunity to give back.  With the power to influence the allocation of more than $100 million to benefit people you know in your community, you can imagine the loyalty this can garner.

This concept of developing loyalty at the grassroots level is undeniably gaining traction. Building relationships with members from within a community by personalizing the loyalty experience at its core has its benefits. After all, what solidifies a relationship more than helping build a Habitat for Humanity home in someone’s community, or funding their neighbor’s child as they undergo treatment at St. Jude’s Children’s Hospital? Sometimes the greatest form of loyalty is created through the investment that is made in one’s own community by a complete stranger.

A study by The Center for Philanthropy shows that charitable giving in the United States totaled almost $300 billion in 2011 and is on the rise from 2010. With numbers like these it’s interesting to find only 5% of corporations participate in charitable giving each year. There is a gap in the philanthropic loyalty market that Thrivent Financial has taken the first stab at filling. Clearly there is room for further growth with statistics to back it up. According to Cone Cause Evolution, 79% of Americans say that charitable giving does have an impact on their product choices. When price and quality are close to equal they will likely switch brands if one is associated with a good cause.

In many ways this is an untapped variation of loyalty that has gone overlooked by a vast majority of corporations. It worthwhile to consider including philanthropic benefits to your loyalty program. Just take a look at Thrivent Financial who built their loyalty foundation on this basic principle – “we succeed when our member’s communities thrive”.

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Does Giving Back Pay Off? Thrivent Financial By the Numbers

August 15, 2012

In Monday’s post, we spent some time talking about the qualities that make Thrivent Financial – and their member-driven program, Thrivent Choice — stand out. We love how deeply community-minded they are, both in terms of making their members feel like a part of a tight-knit, care-driven group, and by actively giving back to schools and congregations. In addition to building up an undeniable loyalty among members, Thrivent raises the bar even more by allowing its community to participate in deciding exactly how their dollars will be donated, via Thrivent Choice.

But does it work? This approach is ethical, and admirable, but does it have the numbers to prove that it is, indeed, effective?

thrivent

In a word: absolutely. Thrivent is transparent about their financials, publishing numbers on their website and providing access to their annual reports. And the results that they have to show speak to the success of their loyalty-building tactics.

Thrivent Financial is number 332 on the 2011 Fortune 500 list (released in spring of 2012), based on an annual revenue of $7.8 billion. They have 2.5 million members across the US, and 1,336 chapters nationally. What’s more, they have $75.8 billion in assets under management, and $170 billion of life insurance in force.

This is not a small scale company experimenting with philanthropy and member participation — this is a massive, lucrative operation. The size and strength of this community has made Thrivent the financial force that it is; the continued loyalty of this community has allowed Thrivent to grow over the past 11 years.

There’s more. That promise of giving back? Thrivent delivers on that, too. Thrivent Financial, and their members, donated $175 million donated to communities in need, not to mention the 10.8 million hours members spent volunteering through local chapter projects. And then there’s the $304 million redistributed to members in dividends.

Thrivent Financial builds loyalty among its members in their attitude and approach, and the benefits of this are clear. The numbers don’t lie: Thrivent’s community is as lucrative as it is loyal.

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Thrivent Financial: Understanding the Philanthropic Side of Loyalty

August 13, 2012

We build loyalty programs to make customers feel that they are a part of something. That they are being recognized for their continued loyalty to a brand or organization. We can’t underestimate the importance of this — feeling that you are appreciated, that you belong, is the key mechanism that makes these loyalty programs tick. The rewards are the icing, but this deep-seeded feeling is the foundation.

It’s this belief that has made working with Thrivent Financial such a pleasure. Thrivent Financial embodies the best of loyalty in all of their programs — and perhaps most exemplifies the far-reaching potential that loyalty programs can have with Thrivent Choice.

First, a bit about Thrivent Financial. The organization has its roots in two early 20th-Century community-minded organizations that aimed to provide trustworthy mutual funds and valuable information for members. Self-described as a fraternal benefit society, Thrivent Financial has always aimed to make its members feel like a part of a distinct community — a community that will be a support system and resource in addition to a channel through which to organize your financial goals.

Thrivent provides personally tailored financial solutions, and also organizes volunteer activities and projects through local member chapters. By signing up, you automatically become a member, and receive member benefits. That means access to discounts on prescriptions and legal services. What’s more, Thrivent Financial members are given ample opportunity to have a say about how Thrivent should operate — and where your money goes.

Which brings us to Thrivent Choice. Every year, Thrivent Financial gives a healthy sum (last year, $100 million) to a wide assortment of of schools on all levels, ministries, and other charitable organizations. This alone sets them apart as an organization on the right path — but their implementation of Thrivent Choice takes it a step further. Thrivent Choice allows members to vote on exactly where their Choice Dollars will go — assuming a member is over 16-years-old, he or she can participate in online (or call-in) voting events.

We love that this specific kind of loyalty program allows members to do good while demonstrating that they have a say in the company’s actions. Thrivent members are treated like loyal customer by virtue of joining — they receive the benefits of Thrivent automatically by signing up. Thrivent Choice ups the ante even more, by giving members a real say in where their money goes. What’s more, this philanthropic lean can help loyal customers do good while insuring their own financial security.

It’s the ultimate win-win. Our work with Thrivent Financial has shown us that loyalty can, and should, exist on all levels — and that making your customers feel like a real part of your community brings nothing but more benefits.

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The Changing Face of Airline Loyalty

August 9, 2012

Having spent this week talking about Virgin America and their stellar Elevate program, we want to step back a little and take a look at the airline loyalty space at large. What we’ve noticed across the board: considering this has been an industry that has seen its fair share of turbulence over the past few years (record-high fuel costs, plunging budgets, a constant stream of bankruptcies), maintaining customer loyalty may be a challenge, but it’s a necessity to survive and to thrive.
virgin america

Loyalty programs provide airlines with an area of influence they can control. American Airlines pioneered this concept, and set the stage for loyalty programs in the late 1980s. These early programs focused around simplistic flyer rewards by tracking miles and rewarding frequent flyers with upgrades and free flights. The success was immediate and evident, and before long, airlines like Delta and United had jumped on the loyalty bandwagon.

Over the last 30 years, the loyalty landscape has evolved into multi-tier programs with rewards stretching far beyond upgrades and free flights. Attracting and retaining members is no longer a formulaic one-size fits all program: airlines must get creative to stay in the game. 

This summer, approximately 140,000,000 Americans have travel plans, with 22% using rewards from loyalty programs to finance those trips. According to an American Express finding, active loyalty participants have increased by 25% since 2011. This increase has contributed to an already competitive market, forcing airlines to discover new ways to innovate, paving a path for younger airlines like JetBlue and Virgin America to drive the industry toward new loyalty standards.

These newer players are disrupting the loyalty space with innovative programs giving older, more established programs like American Airlines’ AAdvantage a run for their money. The key difference with programs like JetBlue’s TrueBlue and Virgin’s Elevate is that they offer additional perks aside from the standard free checked baggage or priority boarding.

We discussed the building blocks of the Elevate program earlier this week, including a no blackout date policy, and the new Red-Silver-Gold tier system. But there are plenty of other highlights worth mentioning. Virgin’s offerings include chic lounges in select locations, enhanced social rewards, and to top it off, the “ultimate round-trip flight award”. The Elevate member who earns the most elite qualifying points between August 8, 2012 and August 7, 2013 will earn a sub-orbital space flight on Virgin Galactic. With the largest frequent flyer population of 1.8 million it is clear Virgin is doing loyalty right. It is unique perks like this that add a competitive edge to airlines willing to step outside of the traditional loyalty box.

The Aberdeen Group addressed this very issue in a recent report. They found that loyalty programs that incorporate mobile technology, engage consumers with social media, and implement a centralized cross-channel loyalty platform are more successful. When incorporating innovative ideas to these basic building blocks, customers are more likely to stick around and take advantage of such well-rounded offerings.

Fresh innovation drives industry forward. A steady stream of creative, technology driven advancements are increasingly important as consumers become more accustomed to loyalty perks and expectant of convenience and technological innovation. It takes robust, cutting-edge loyalty programs to shake things up and provide a unique experience worth returning for time and time again.

Read more about our work with Virgin America and the success of Elevate in our Customer Success Story, here. And keep up on all of the great things Virgin America is doing by following @virginamerica, @richardbranson, and @loyaltylab.

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Why I Fly Virgin America: A Customer Testimonial

August 8, 2012

I once somewhat jokingly referred to flying Economy class as “flying steerage.” Sure, it’s a dramatic description, considering air travel doesn’t exactly include the perils of traveling by boat in unsanitary conditions. But that feeling of being herded, of being treated like a nuisance rather than a valued customer, is never a pleasant sensation. Loyalty programs with hidden fees and blackout dates don’t help things, either.

Not so with Virgin America. Since my first flight, way back in 2007, I was struck by how pleasant the entire experience was, and continues to be years later. From being greeted with a smile at the check-in desk to the snazzy, touch-screen Red system in-flight, Virgin seems to know exactly what I’m looking for when I fly (right down to the wireless internet, too!).

While I’d always been hesitant to join other loyalty programs, joining Elevate was a no-brainer for me. And I’ve found that my experience with Virgin America’s loyalty program, unlike others, has been as comfortable, and enjoyable, as traveling on one of their planes. As soon as I sign in on their website, my points balance immediately appears under my name. As I go to book travel, I just have to click once to see how much the flights I want cost in dollars, or in points.

There’s no fine print here telling me that the Friday afternoon flight I need is blacked out. I can book anything, anytime, using my points. In fact, just last Christmas, I was able to book a round-trip ticket from New York to get home to San Francisco to see my family – on December 23rd. Not only was my holiday travel easy, but it was easy on my credit card, too. That’s the kind of flexibility I love in a loyalty program, and keeps me coming back.

What’s more, Virgin America keeps me updated both through email, Twitter, and Facebook of upcoming sales, contests I can enter, and updates. Cheap fares to Cabo and the chance to win a weekend getaway in LA? Yes, please.

With the loyalty program’s new Gold and Silver Elevate levels, I’m looking forward to complimentary upgrades to Main Cabin Select and Express, free checked bags, and 25% discounts on flights. Not to mention a members-only reservation line — another way Virgin America helps everyone feel like they’re flying First Class.

Watch Virgin America present on their success working with Loyalty Lab on the Elevate program here. And keep up on all of the great things Virgin America is doing by following @virginamerica, @richardbranson and @loyaltylab.

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Virgin America: A Loyalty Program That Elevates Above the Rest

August 6, 2012

At Loyalty Lab, we’ve been lucky to work with some of the most interesting and innovative clients around. We’d like to showcase what makes them, and their loyalty programs, unique. Kicking things off is Virgin America and their Elevate loyalty program.

Creating a loyalty program for a brand like Virgin America is why we love what we do. Talk about a cool airline: since they launched, Virgin America’s young, fun attitude towards flying was pure Richard Branson, and seriously stylish. Purple lights in and lounge music in the cabin? An in-flight interface that allows you to chat the good looking woman in seat 12A? Flying Virgin America reminded us of a time when flying was a glamorous activity worth looking forward to, rather than a frenzied hassle of shoe removal, lack of legroom, and running to make connections.

What’s more, the team at Virgin America made it clear from the beginning that they wanted their Elevate loyalty program to stand out from the rest. Which means that the Loyalty Lab crew got to roll up our sleeves and really think about what other airline programs our lacking. What were our priorities when booking air travel? What would make us want to come back, again and again?

The three major initiatives we came up with, and implemented using TIBCO software, have proven to be hits, considering Virgin America’s loyalty program is the fastest growing one in the industry. And the solutions seem so second nature, it’s no wonder.

First: there are no blackout dates or restrictions. You want to use your Elevate points to book a flight over Thanksgiving weekend? Go for it! Blackout dates over high-traffic travel times may make sense for an airline focused on profit and profit alone, but not for an airline looking to build their customers’ loyalty. Plus, every seat is fair game for points redemption, not just those middle seats in the back row. What good is it to be in with the in-crowd if you’ve got the worst seat in the house?

Second: point values are transparent and dynamic. Your Elevate balance will flourish whether you fly to LA or to Cabo; you earn points when you use your Virgin America credit card, book a hotel room or rental car, or shop with one of our partners. You know exactly how many points you have, and how many you earn. And if the dollar fare goes up, so do the number of points you earn.

Third: redemption is a painless process. Hate sitting on hold, trying to get an airline representative to explain why your points aren’t working? So do we! Never again  with Elevate. When booking travel, you can view the cost of each flight in dollars or points. The more a flight costs, the more points are needed — there’s no hidden restrictions here.

Using these three points as our foundation, we’ve loved seeing customers respond positively, and have also taken the opportunity to listen to their feedback. Elevate members expressed a desire for ‘tiers’ in the loyalty program: if you’re earning 50,000 points per year, you certainly should be rewarded.

Starting August 8, Virgin America is introducing Silver and Gold levels to the Elevate program, and will include perks such as upgrades, priority booking and boarding, and complimentary checked bags. Virgin is also stepping up their mobile game: Elevate Elites will be able to benefit from making use of social media. By checking in to gates and terminals on Instagram, Twitter, or Foursquare, they’ll earn double points. Really, the tiers are Virgin America’s way of showing love to their loyal customers — which is exactly what we like to see.

Virgin America has generally proved to be ahead of the game when it comes to today’s airlines, and the success of their loyalty program speaks to this. They seem to have a better insight into what customers need: choose-your-own-adventure entertainment choices, fresh and healthy meal options, wireless access in-flight, and a clean and usable mobile interface. This kind of creativity is exactly what loyalty programs need, according to a recent report done by the Aberdeen Group.

The Virgin America experience has always aimed to make everyone who flies feel like a VIP. But we love just how much their Elevate program emphasizes this: entry to exclusive events, great deals on flights, and the freedom to use your points as you choose. If the customer is meant to be king (or queen), Elevate actually delivers on this promise by making its loyal fliers feel like royalty.

Read more about our work with Virgin America and the success of Elevate in our Customer Success Story, here. And keep up on all of the great things Virgin America is doing by following @virginamerica, @richardbranson and @loyaltylab.

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The Pillars of Customer Engagement – Where to Influence and How

August 1, 2012

The classic corporate marketing view of loyalty is very long term – acquisition, conversion, retention – and is very different from the customer view.  For consumers, every decision is independent.  Brand loyalty will have influence, but choosing a product or restaurant or hotel or airline tends to happen quickly. Customers have the ability to learn quickly and make a snap decision, and even after that decision has been made, the ability to go back and change if a better offer comes along.

Just a few years ago, the decision-making process was much more predictable.

Customers might do a little research online or elsewhere, then go to the store and make a purchase, maybe with a little influence along the way by a radio or billboard advertisement. Now they might research an item and choose a product while in the store, check reviews and prices online, and end up buying elsewhere after physically examining a store’s inventory. The process is much tougher for retailers given the sheer quantity of potential distractions or better offers.

Winning the initial battle is no longer enough. Brands have to carry their message through beyond the purchase, into support and post-purchase satisfaction.

So if you be realistic and assume customers are just as technically savvy and mobile as you are, then the whole conversation changes.

The need for brands today is to compete effectively in this real-time mobile-dominated world.  We’ll touch on more areas around this theme soon.

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The New Detail of Retail

July 20, 2012

by Chris Taylor – TIBCO

Retail has gone through enormous stresses in the past decade, with more to come. Just the normal ups and downs of local and global economies, supply chains and personal taste are a huge challenge. Add to that mix the increasing maturation of concepts like e-Commerce, Big Data, RFID and mobile.

Each of these would be a whopper to digest and together are changing the foundation of an ancient industry.

New ways to sell

Traditional in-store sales are combining with web, mobile and social. While the social channel may not be ‘here’, it is expected to become viable within a few years. This combination of channels can’t be managed as silos, as branding and look and feel need to be consistent for the customer (ie. mobile can’t just be dumbed-down Web) and for internal maintenance cost.

In the store or kiosk, Near Field Communication (contactless communication between devices) is the simple way to speed purchasing and is used extensively already at Starbucks in combination with their loyalty app.

How much does speed of checkout matter? Studies show it makes a huge difference. I know my wife and I choose ‘self-checkout’ even if it’s slower simply because we feel don’t like standing in a line, dependent on someone else. We only have ourselves to blame and that’s fine.

Selling needs to take place at the time, place and pace that a customer desires.

New forms of loyalty

It was always a great idea to attract a customer once and sell to them many times. Loyalty programs were a way to lower the cost of customer acquisition. Today, loyalty programs offer something even more meaningful…contextual information about the customer.

Not just what they buy, but when they shop, demographics, product preferences and more. If you think Safeway gives discounts because you’re a loyal customer, think again. There’s a transaction going on when you give information that is just as valuable for them as when you buy.

What do they do with that information? They create a context for commercial transaction that has several benefits:

  • Manages customer satisfaction more closely with direct (experience surveys, requests for feedback) and indirect (purchase patterns) measurements
  • Understands and confirms your loyalty patterns
  • Cross-sells and up-sells other products to increase revenue per transaction. This goal depends on getting the right offer to you in the right moment and through the proper channel to make your buying easy and natural/non-clumsy.

Click here to read more.

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