Beruflich Dokumente
Kultur Dokumente
METRICS
Improve Customer
Experience
IN THIS ISSUE:
FEATURES
10 12
For CenturyLink, Metrics Make Early Investment in Tech
the Difference for Improved CX Builds Better CX for Edible
Mark Johnson | Loyalty360 Arrangements
P.F. Wilson | Loyalty360
38
Whats New Ask the Experts
18 FEATURED TECH
28 TECHNOLOGY, TRENDS & REWARDS
Three Customer Experience Shortfalls
PREVIEW
10 FEATURES of Video Marketing
For CenturyLink, Metrics Make the Summer Felix-Mulder | The Draw Shop
Difference for Improved CX
Mark Johnson | Loyalty360 30 BEST PRACTICES Loyalty Management Editorial
An Incentive Framework to Align the & Production Team
12 FEATURES Buyer and Partner Journeys P.F. Wilson - Editor-in-Chief
Early Investment In Tech Builds Better Claudio Ayub | Perks Mark Johnson - Contributing Editor
CX for Edible Arrangements Carly Stemmer - Contributing Editor
P.F. Wilson | Loyalty360 32 STATE OF THE INDUSTRY Shawn Cunningham - Design Director
From the Trenches: Insights & Best Elizabeth Shular - Design
14 BEHIND THE BRAND Practices from Real World Receipt-Based Steve Taggart - Content Strategist
Jeff Pearson | Lids Crescent Printing Company - Print Production
Loyalty Programs for CPG Brands
Ritesh Bhavnani | Snipp
16 TECHNOLOGY, TRENDS & REWARDS
Technology Providers Don’t Build Contacts
34 BEST PRACTICES Article Submissions & Advertising:
Brand Loyalty 3 Steps to Preparing a Roadmap to
Loyalty360
Jeff Sopko & Evan Magliocca | Baesman Customer Engagement Transformation. info@loyalty360.org
Manmohan Gupta | Pitney Bowes 513-800-0360
18 BEST PRACTICES
Omnichannel Loyalty: Connecting the 36 STATE OF THE INDUSTRY
Dots for a Better Customer Experience Payback Time: What Your CFO
© 2017 Loyalty360, Inc. and/or its affiliates. All Rights Reserved.
Emily Rudin | CrowdTwist Wants to Know About Your Loyalty Reproduction and distribution of this publication in any form without
prior written permission is forbidden. The information contained herein
Rewards Program.
20 STATE OF THE INDUSTRY Len Llaguno | Willis Towers Watson
has been obtained from sources believed to be reliable. Loyalty360
disclaims all warranties as to the accuracy, completeness, or adequacy
The Product Ubiquity Challenge of such information. The opinions shared are those of the contributing
& Opportunity authors and not necessarily reflective of Loyalty360 and/or its affiliates.
Chris Martin | Montrose Travel Loyalty360 shall have no liability for errors, omissions, or inadequacies
in the information contained herein or for interpretations thereof. The
opinions expressed herein are subject to change without notice.
22 BEST PRACTICES
Loyalty Is More Than a Marketing Program
Kevin Murphy | Epsilon
ON LOYALTY360.ORG
loyalty360.org/content-gallery
LOCAL EVENTS
After a successful pilot event, Loyalty360 is in the process of
expanding local events both in size and in scope. These events
provide networking in a smaller, more intimate setting than our
bi-annual expos, and feature presentations delivered by executives
from a local brand. With upcoming local events coming to cities
across the nation, keep your eyes peeled over the coming months
for information about a local event near you!
As we have written before, the pace of change has increased Loyalty360 is also currently working with our board of advisors to cre-
significantly for marketers recently. With that rapid pace of change ate a standards and certification process for our members. Currently,
(technology, data, competition, changing consumer preferences both we have over 25 brands going through a pilot program consisting of
economic and political), the need for collaboration and community a six-part standards process that will allow brands to benchmark and
between marketers has never been greater. Recently, I took a call eventually be certified around their loyalty and CX efforts.
from the SVP of a large retail brand and she said, “I need help keep-
ing up in the age of uncertainty with Amazon, Apple, and changing These standards will allow brands to benchmark not only to their
consumer preferences, my team and I cannot keep up. There are too peers, but also to those outside of their competitive set. This will lead to
many experts and too much change. I need help.” training and certification processes and continuing education initiatives
for brands that will allow them to not only learn more about customer
Loyalty360 has always believed that customer loyalty is the most experience, engagement, and loyalty (getting certified in the process),
important facet of marketing, and we believe that the loyalty program but have a process that is being driven by brands to discuss externally..
is a part of the bigger picture customer loyalty efforts for a brand.
The initial findings will be released at the 2017 Customer Expo in
We always ask would you rather have a loyal customer, an engaged Nashville, and we would love to have you join us. Also, should you have
customer, or an experienced customer? an interest in learning more about the certifications and standards, or if
We understand that experiences drive engagement (however that there is something Loyalty360 can do to help you with your journey, we
may be defined), and we believe that leads to the cache of goodwill would love to know. Please feel to email me (markjohnson@loyalty360.
an individual has with a brand, which in turn leads to long-term, org) or call me (513-545-5612). I would love to hear from you. We are
behavioral-based loyalty. Hence, should an individual customer have trying our best to listen to the needs and expectations of the market
a few not-so-pleasant experiences, he or she can draw on that loyalty and address as many of them as possible, and we would love to get you
reserve (think of it as a piggy bank) but will still have loyalty to that more involved with Loyalty360.
brand.
There has been some confusion as to what Loyalty360 is. Are we a
Yet, every day we see some form of disruption that creates pause, media company, are we an analyst firm, or are we a trade association
confusion, or consternation. When Macy’s launches a new loyalty for the industry? We are THE trade association for customer loyalty, yet
program, they have a PLCC program and are part of a larger coalition we are a bit unique as we have so much content, including analyst and
initiative. However, we get calls from our members asking “well, technical briefs. There is a great deal (and growing) amount of content,
should we do that?” insight, and research that is exclusive to our members, and we would
love to have you join Loyalty360. This fall on our new website, along
Why is Macy’s doing that? When Toys“R”Us launches an aggres- with the new certifications and standards processes, we will be rolling
sive restructuring that is based on virtual reality that will drive the out new memberships (individual and corporate) with new access,
customer into the store, we get calls from our members asking what insight, and functionality.
that means for them.
We have listened to the market, brands, and customers over the past
Loyalty360 is focused on helping brands create deeper emotionally- year and we are bringing about the changes that you have asked for.
based connections with their customers. We are also focused on We are very passionate about customer loyalty and want to bring the
helping brands through a robust website and community, listening to ideas and process that are working in a measurable manner to the mar-
the challenges they have, and asking that community for solutions, ket for our members to learn from. We would love to have you join our
insight, and best practices. community and look forward to seeing you November 6-8 in Nashville
at Customer Expo.
Over the next six months, Loyalty360 will be launching a new
website with increased networking and community access for our
members. To that end, members will be able to engage with one
another in a very unique manner to discuss online, and in person, the
challenges they are facing as well as understanding from others on
how they may have addressed a similar situation.
November 6 - 8, 2017
Sheraton Music City
With sessions from leading brands and networking that can’t be found anywhere
else, Customer Expo is the only conference dedicated to every aspect of your
organization’s most crucial resource: the customer.
Mark Johnson
MarkJohnson@loyalty360.org
loyalty360.org
LOYALTY FORUM: FEATURED TECHNOLOGY
Featured Products,
Advancements &
Technology
Technologies
& Services
Loyalty. Engaged.
Historically, marketing departments have too often needed to Designing and maintaining a full-featured and effective loyalty
rely upon CRM systems that were designed not for them, but program is a challenge for even the world’s largest brands, let
for sales departments. This retrofitting has resulted in alone those with a smaller business scope. CrowdTwist offers
suboptimal, even clumsy, marketing processes that leave much flexibility in its loyalty programs to equip brands across the
to be desired. In a response to this internal inefficiency, Clutch spectrum with the tools needed, not only to design and
Loyalty Marketing has built its platform from the ground up implement a loyalty program, but also to maintain it and
with data-driven, omnichannel customer engagement in mind. leverage the resulting consumer data. CrowdTwist’s platform is
set apart through customization; in working with clients of all
At the center of this platform’s power is its ability to unite shapes and sizes, the company allows for a brand to have as
consumer data from disparate sources, including (but not much or as little involvement with implementation and
limited to) mobile, social, and POS systems. From this data, the maintenance as desired.
Clutch platform is able to build behavior-based promotions and
experiences that are customizable according the preferences of Customizable widgets allow for complete control over every
individual customer segments. The platform is particularly aspect of the program, while data-driven campaign expertise
useful for clients with expertise outside of the data analytics provides a more “hands-off” option. Program reward mixes
space, for whom Clutch is able to serve as the “eyes and ears” provide the same level of flexibility, with incentives that range
when it comes to gathering, analyzing, and planning according from digital to experiential, sweepstakes, physical, or promo
to a constant stream of consumer data. codes. Through this selection of rewards, CrowdTwist remains
agile and able to engage a variety of audiences across age
For companies looking for a platform designed specifically to demographics and interests.
engage customers from a marketing standpoint and
deliver them to the eventual endpoint of Through this flexibility, CrowdTwist has set itself apart in the
brand evangelism, Clutch may just customer loyalty space and continues to boast one of the most
have the solution flexible solutions in the market today.
Mark Johnson
Loyalty360
Headquartered in Monroe, Louisiana, CenturyLink provides communications and data services to homes, businesses, government,
and wholesale customers in 37 states. The company operates as a local exchange carrier and Internet service provider in the U.S. and
is the third-largest telecommunications company in the country in terms of lines served, behind AT&T and Verizon. Through a series of
acquisitions, including its one of Level 3 Communications that’s expected to close by Sept. 30, 2017, the company has recently ramped
up its B2B efforts, particularly in the area of digital transformation. The main areas of focus in this effort are agility, CX, operational
efficiency, and security. CenturyLink CMO Bill Hurley chats with Loyalty360 about the opportunities and challenges therein.
The third area that we see when we’re having a digital transformation
conversation is around operational efficiency. [Customers will] say “look, I It seems some brands understand that
want to transform my internal back office and digitize it because we’re out
of data. Help me in bringing digital network capabilities to my organization
concept, while others struggle. Is that
in that space.” an accurate observation?
The fourth is that as I expose my business processes and digitize my Hurley: That’s true. This is going to sound harsher than I mean it to,
business I’m opening myself up to a whole host of new risks that maybe but there’s not necessarily a full grasp of the change that is going on
didn’t exist when I was paper based. So, clients want help managing the in the world and in the market today by a lot of the senior leaders in
risks and security issues. many companies. It’s happening around them, not with them.
There isn’t one sit down where we have a conversation around digital The power of that network is really changing a lot of the dynamics in
transformation and everybody knows what it means. But when you peel the market. Getting a grasp on being able to wrap a metric around it
that onion back one layer at a time we inevitably find its one of those four. so that you can articulate in a manner that makes sense to everyone,
that’s a key to success.
With the Internet of Things, it’s going to generate even more data, so
And we’ve got a broad enough portfolio to do that right now. With the
you’ve got to know how to analyze it and what to look for. You also have
proposed acquisition of Level 3, we can double down now and provide a
to steep yourself in that data and be ready for information to come at you
greater breadth of network access around the world at a more cost-effective
that you are unprepared for, knowing you have the systems, algorithms,
rate. That’s all predicated on the size of the company and what they’re trying
and processes that will allow for that data to surface and really change
to do statistically, but inevitably it ends up in one or more of those buckets.
the way you operate and do business.
Better
CX
The company’s roots go back over 40 years to the
hopes and dreams of an immigrant family.
for Edible home mom with five boys and one girl.”
Tariq soon began working at the fast food restaurant, too. The franchise
Arrangements owner hired him as a favor to the elder Farid. During his time there Tariq
started from the bottom cleaning the restrooms. He soon learned that
working hard to execute even small tasks would pay off, and it did when
he got to move behind the counter to work the register.
P.F. Wilson “It was the best favor he could have done because from then on I grew
Loyalty360 up around businesses,” Farid remembers. “Growing up I delivered
newspapers and cut grass, and I learned to do it all well.”
Building on his experience in the A woman who lived down the street from the Farids, and for whom
floral industry, Tariq Farid launched young Tariq would cut grass and shovel the driveway, once said to him,
“I love how hard you work, and if you keep working this hard, you’ll be a
Edible Arrangements in 1999. Today millionaire by the time you’re thirty-five.”
it is one of America’s top franchise This inspired him to work even harder.
companies. Mr. Farid, still the When he was 17, his father saw an ad in the local newspaper for a flower
shop that was going out of business.
company’s CEO, tells Loyalty360
“They were selling all their equipment and liquidating all the assets,” Farid
how it all came together. recalls, “and my father thought we should go down there and make a deal
to buy it.”
The Farid family reopened the shop in 1986 and that was the very
beginning of the Edible Arrangements story. The family bought a few other
flower shops and from working in the stores, Tariq came up with an idea.
“Who would want arranged, cut fruit on sticks in a basket?” he “As we started franchising,” Farid adds, “I would ask people ‘what
asked. does it take to support franchisees?’ And they would tell me ‘it
takes about one person for every ten franchises you open.’”
As it turns out, of course, a lot of people.
In general, it’s one person to handle marketing and another to
“We started franchising accidentally in 2001,” Farid says. handle operations, for example.
“Somebody’s mom in East Haven received an arrangement and the
guy walked into our store and said, ‘I want to open a franchise.’ That “You realize ‘I don’t have that type of money, I’m surviving off a five
first franchise location was in Boston, then came Atlanta and the percent royalty.’ So, when that franchisee makes $100,000, all I get
rest is history.” is $5,000. I can’t have that many people, I’ll be in debt and upside-
down and unable to grow,” Farid remembers.
Farid is convinced that IT played a critical role in the company’s
initial success. The solution was to build portals.
“I went out and tried to borrow money in the beginning but back “When the franchisee logged on it told them ‘this system is going
then, no one really gave you funding,” Farid explains. “The one thing to tell you pretty much all the things you have to do to build a store.’
we had was being able to give the perception of being a lot bigger Then the supply chain system that would connect them with all the
than we were.” vendors came along and the franchisee simply had to go and place
an order.
This allowed Edible Arrangements to demonstrate to prospective
franchisees that the company had efficiencies in place, which “When you talk to a franchise company about customer loyalty,”
indeed it did, that would allow store owners to focus on the most says Farid, “they may not first think of the franchisee. They’ll think
important thing: customers. of the end user even though the most important person really is the
franchisee. That’s who I need to create an infrastructure for, so they
“What I love about technology is it allows people to do a lot and can provide those services through the franchise to the customer.”
still focus on the customer and the product.”
In 2001, Edible Arrangements sold three stores, but just four years
Instead of spending time on bookkeeping, processing credit cards, later the company granted over 300 franchises.
and other ancillary functions, owners could focus on running the
stores from a customer experience perspective. “The reason we were able to do so many is that we had this
infrastructure and ecosystem in place,” Farid says. “When people
“Before we implemented our system, it was a fairly complicated came into our system, the technology helped manage their whole
process,” Farid says. “Taking credit cards used to be very life cycle.”
cumbersome. You would take an order on a triplicate carbon
paper form and walk over to the credit card machine, punch in the The system is still being upgraded even today. For example, in the
number, wait for the machine to dial into the processing center, and early days, a prospective franchisee would find a potential location,
then get an authorization number which would be hand written on take a picture, send it to Edible, and await a decision.
the card with the delivery address.”
“Now it’s magical,” says Farid. “Now they take a mobile device, go
With the Edible Arrangements POS system, the entire process was the location, we scan it and we can immediately tell them ‘yes’ or
streamlined. ‘no.’ It has allowed us to do a number of things and emphasize that
loyalty component to the most important person in my franchise,
“We were authorizing credit cards back in the eighties with 1900 the franchisee. That’s my customer.”
bps modems,” he says.
Jeff Pearson is the brand’s Senior Vice President of E-commerce and Marketing. Pear-
son is responsible for multiple websites operated by Lids including Lids.com and Lids.
ca. In addition, Lids has over 1300 stores in the US and Canada where Jeff leads the
marketing, promotions, and store support. Before joining Lids in August of 2016, Jeff
was the Senior Vice President of E-commerce, Marketing and Strategy for hhgregg,
where he spent 10 years in various leadership roles.
Loyalty360 sat down with Pearson for a closer look at what drives the SVP, both in
and out of the office.
IF YOU COULD PICK ONLY ONE THING, WHAT IF YOU COULD HAVE ONE SUPER
DO YOU BELIEVE MOST INFLUENCES A GREAT POWER, WHAT WOULD IT BE?
CUSTOMER EXPERIENCE? AND WHY? It’s from the Harry Potter books.
The ability to Apparate. (Go anywhere
A kind and courteous person that interacts with a sincere desire at any time in an instant. I hate wasting
to assist a customer or potential customer. In one word: NICE. time traveling to places.)
1
WHO HAS HAD THE MOST INFLUENCE ON QUICK FIRE QUESTIONS*
YOUR PROFESSIONAL LIFE, AND WHY? WHAT IS YOUR
2
YES
FAVORITE WORD?
David Provost from Whirlpool Corporation. He gave me
many opportunities, was my boss, was a mentor, and still is
WHAT IS YOUR LEAST
3
a mentor to me. He helped me believe I could be successful. CAN’T
FAVORITE WORD?
Best of all, he’s a good friend that I know I could call at any
time to help me. And a key point is that he earned my wife’s
trust through his actions. Great person. WHAT TURNS YOU ON A GOOD WORKOUT WHILE
4
CREATIVELY, SPIRITUALLY, LISTENING TO U2 OR
OR EMOTIONALLY? CHRISTIAN ROCK
5
WHAT TURNS YOU OFF? WEATHER
MUSICAL ARTIST OF ALL TIME?
U2—Hands down. WHAT SOUND OR NOISE DO
6
UPLIFTING MUSIC
YOU LOVE?
7
HONKING HORN
YOU HATE?
CUSTOMER EXPERIENCE? WHAT
MAKES THIS MEMORABLE? WHAT PROFESSION OTHER
8
THAN YOUR OWN WOULD PROFESSIONAL GOLFER
American Airlines quickly giving a full refund for YOU LIKE TO ATTEMPT?
tickets I had to San Antonio, Texas during the
Hurricane Harvey disaster. They made the outreach WHAT PROFESSION WOULD ANYTHING IN THE FIELD
and coordinated the refund. Very easy process and YOU NOT LIKE TO DO? OF MEDICINE
was the right thing to do for me and my family.
*Inspired by James Lipton on Inside the Actors Studio we asked Brad to share his quick-fire response to
the questions originating from the French series, Bouillon de Culture hosted by Bernard Pivot.
TECHNOLOGY PROVIDERS
DON’T BUILD BRAND LOYALTY
“Brands need to find partners
that will support them through ongoing
Jeff Sopko
President of Insights & Marketing
Baesman
management and analysis to keep up
with customer expectations throughout
”
Evan Magliocca
Brand Marketing Manager
Baesman
the program’s life.
Their work is done but the real work begins for you.
You’re running a loyalty program from strategy to
execution—the parts that really matter to be successful.
YOU DON’T GET WHAT YOU PAY FOR CUSTOMER EXPERIENCE IS CONSTANTLY
EVOLVING
No matter how great a technology is, it can’t make a program
successful by itself. In some cases, your program is doomed
from the moment you sign the SOW; loyalty technology
platforms are notorious for sunken costs, and the provider’s
Customer expectations change fast and drastically. Trying to
keep up can be difficult with budget constraints, development
build times, stakeholder buy-in, and technology limitations.
expertise and support are siloed to the technology, not loyalty. The best strategy to keep customer experiences positive
is to capture, analyze, and react to customer interactions.
Furthermore, brands using these platforms quickly realize
that their provider lacks the capability to help drive the actual Customer experience is all in the data—their actions,
program; they don’t recognize shifts in behavior, engagement, movements, and purchases are a prognosis on their thoughts,
and incremental sales. Yet those strategies and objectives are wants, and expectations. But to produce insights on those
paramount to justify the investment in the technology. data points requires rigorous analysis. Brands need to find
partners that will support them through ongoing management
As a result, many programs fail before they’re even launched and analysis to keep up with customer expectations
because they’re overburdened during a fragile and volatile throughout the program’s life.
part of the program’s life.
Omnichannel Loyalty:
Connecting
the Dots for a
Better Customer
Experience
Emily Rudin
Chief Customer Officer
CrowdTwist Loyalty. Engaged.
According to recent research1, How can brands ensure they are meeting customer expectations?
Most brands are moving toward adopting an omnichannel loyalty
companies are already competing approach. A successful omnichannel loyalty program will connect
customers to a brand across all touchpoints. It will go beyond one-
solely on customer experience. dimensional discounts, offering deeply personal and authentic
customer experiences that will yield stronger engagement and
Consumer expectations set the bar higher spend among customers.
77%
of strong omnichannel
companies store customer
compared
to
48%
of weak omnichannel
companies
data across channels
samples, and help you refine your marketing messages to better Why Omnichannel Strategy Matters” Internet Retailer; December 31, 2013
4
suit your audience. You can start rewarding members who are
mothers for Mother’s Day, for birthdays, and for program join
anniversaries, for example.
THE PRODUCT
UBIQUITY CHALLENGE
& OPPORTUNITY
Chris Martin
Director of Marketing & Application Development
Montrose Travel
Unfolding before us is the concept of ubiquitous access The human touch of an experienced travel professional is still in
to all products, across all channels, anytime. demand and preferred by consumers for many transactions. To
quote a wise colleague, “travel is both cutting edge and ancient
Operating as legitimate e-commerce platforms in their own right, at the same time.”
loyalty programs offering multiple redemption and purchase options
are compelled to compete with non-loyalty e-commerce entities For example, while flight booking has evolved to a relatively
that often have quite a head-start in this new paradigm. ubiquitous self-service product, products like cruises and tours
are evolving differently and may never be similarly adopted by
To some vendors in the loyalty space, the prospect of complete consumers.
ubiquity may be the Holy Grail; to others, it may be as realistic as a
desert mirage. Some products just aren’t well-suited for the omni- The functionality of booking a flight online has matured to the
channel distribution model, yet contribute value to the customer point where consumers have well-established expectations of
experience and should maintain a place in the loyalty future. If a researching, booking, and maintaining their air reservations.
key to CX success is finding the balance between product ubiquity Though it is one of the more complex products to book online
and consumer value, how do we arrive at that balance? (especially on mobile devices), it is by far the most transacted
across all device types in the travel loyalty space.
The Ubiquity Challenge and distributors in evolving the booking engines for the product
and thus in shaping consumer expectations. Significant
expansion in capabilities for online, mobile, and voice interaction
The challenge starts at the level of product definition, and are serving to further propel flights into a ubiquitous status.
extends to consumer expectations of that product. For certain
products important in the customer experience, the proposition In contrast, travel products like cruises or tours are evolving
of ubiquitous availability means considerable investments in as vehicles more for consumer research than for self-service
technology, operational processes, and ongoing maintenance that, booking. While improvements in systems for consumer reviews
in the final analysis, may not yield sufficient return. are helping inspire buyer confidence, consumer adoption of
online booking functionality remains a hill to climb.
Let’s consider travel products – flights, cars, hotels, cruises,
tours, activities, and custom vacations. Why? Travel is a These products are complex enough that consumers prefer to
particularly interesting case study in that it faces considerable rely on the expertise of a travel professional when booking. It’s
challenges in the omnichannel distribution model, yet offers important products like these that sit on the periphery of the
so many opportunities to enhance the customer experience. omnichannel model.
While many consider the travel space a leader in terms of making
complex transactions possible in an online environment, not every
product is well-positioned to become ubiquitously consumed in
this omnichannel future.
When considering product ubiquity, some of the factors For example, according to Expedia, over 80 percent of travel activities
that distinguish some products from others include: (i.e. “things to do in Rome”) are booked immediately prior to, or
during, the vacation stay. Implementation of personalization features
Product complexity to offer recommended activities as a cross-sell to a flight or hotel
booking can help enhance the customer experience and, at least,
Is the product easy to understand, or is the buying decision stimulate some thought on the activities product.
heavily nuanced requiring collaboration? For example, a
custom vacation package requires the expert input of a travel But perhaps an even more effective channel for recommending these
professional, whereas booking a car rental is a fairly straight- products is in a touch point email just days before travel begins, or
forward, easily understood transaction. by providing travelers with a native app-based portal to consume
additional information during their travel – information like restaurants
or points of interest, or to purchase activities like city tours.
Value communication
Can the best possible price or value be communicated across Product evolution also plays an important role in the distribution
all channels? Some suppliers impose price parity requirements. strategy. As product features or characteristics change, so may the
In these cases, the best possible price may only be offered in a approach to different distribution channels.
closed-loop e-commerce environment, or the currency must be
masked by points, making it impossible to share via channels like The availability of mobile-only hotel pricing is a perfect example of
social media. Both travel and merchandise vendors may contend a product adaptation that begs for a distinct user experience in the
with suppliers or manufacturers that impose restrictions on the mobile booking channel versus the desktop channel (or the offline
type of transaction by which a product may be sold (for example, booking channel). Here, the mobile user looking to book a close-
points redemption only). in stay has come to expect discounted, last-minute inventory; in
contrast, the desktop user may be looking for hotel deals 30 days
Finally, most travel products are priced real-time (especially from today and has considerably more time and space to research.
volatile are flights and, to a somewhat lesser degree, hotels),
making it difficult to convey accurate pricing across all channels, Another prime example of an evolving product is flights. Just two
years ago, while there was price complexity in air travel, the variations
so other value aspects may need to be communicated over price.
in the product were pretty well understood by consumers – choice of
first, business, economy, and premium economy seating.
Content richness
With the introduction of new, no-frills economy permutations, seats
Is the product generally homogenous? Or does it have many in an aircraft may come with different attributes (seat style, bag
variations, or value-added options? Is the product best allowance, etc.), and it’s now possible for consumers to redeem
communicated to the consumer via rich imagery, detailed for upgrades and ancillaries from within the loyalty platform rather
descriptions, and ancillary details? than purchasing them directly from the airline (Montrose/CTM is
introducing this functionality for its loyalty clients).
Consider the many factors beyond just price that go into
a consumer’s choice of a hotel stay; attractive images, Though this provides an unprecedented level of consumer control
placement on a map, points of interest, and amenities are over the travel experience, it also poses challenges in communicating
generally more important in the decision-making process than the new depth of the offering in certain channels.
even the property description.
The suggestion here is not that a product must pass all three
of the above tests to be suitable for ubiquity, but that a more Finding balance
strategic approach to multi-channel distribution may yield
The concept of ubiquitous access to products presents an
better results for the business and the consumer alike.
attractive future for e-commerce but not if at the expense of
the customer experience. The elimination or deprecation of
products not suitable for ubiquity, or attempts to force certain
The Ubiquity Opportunity less-suitable products into the ubiquity model, will only serve to
erode consumer satisfaction and, in turn, loyalty.
Distribution strategy is key to capitalizing on the ubiquity
opportunity. Organizations need to consider not only today’s Being thoughtful about your products and how your customers
model but need to give thought to where consumers buy, what consume those products will lead to the right blend of product
consumers expect on their CX journey, and how products may ubiquity, consumer value and, in turn, loyalty to your brand.
evolve over time.
The distribution strategy should include an assessment of Chris Martin is Director of Marketing & Application Development for Montrose
consumer expectations (and the tools they need) at various Travel/CTM, the U.S.-based Loyalty arm of global travel giant Corporate Travel
points in the decision-making/buying/post-purchase process. Management Ltd. (ASX:CTD). Montrose Travel/CTM provides best-in-class
This consideration is yet another driver of the ROI discussion travel loyalty solutions for marquee brands in financial, retail, and marketing
do all distribution channels for access need to be maintained services sectors.
LOYA LT Y
IS MORE THAN A
MARKETING PROGRAM
Kevin Murphy
GM Loyalty and Global Marketing Solutions
Epsilon
There are 3.8 billion total U.S. loyalty program members according to the 2017 COLLOQUY Loyalty
Census. In today’s marketing landscape, customer loyalty should not be viewed as just a marketing
program. Loyalty is something you receive from consumers by delivering on your brand values and
offering a superior customer experience. Marketers looking to advance their loyalty program need to
determine what their consumer values, what encourages them to participate and what entices them
to remain active in a loyalty program.
For example
Domino’s invests time and research into understanding what their
customers want from their Piece of the Pie® rewards program
(pizza!). Domino’s focuses on where their customers are. If their
customers are online, Domino’s is making it easy for them to order
online. The pizza giant performed analytics and conducted research
to learn what consumers wanted from a Domino’s loyalty program.
They want it made simple, of value and to be genuine. At a recent
event, Stephen Kennedy of Domino’s stated,
Through these efforts, don’t lose sight of the importance of your As you’re continuing to advance your loyalty efforts within
existing customers. Marketers naturally tend to focus their efforts on your organization, remember:
acquiring new customers. However, the lifetime value of an existing
customer has proven to be more profitable. • Loyalty cannot be viewed as a tactic
The probability of selling to an existing customer is • Executive support is essential for the continued growth
of your loyalty initiatives
60-70%
while the probability of selling to
• Think with an innovative mindset and have some fun
5-20%
Loyalty marketing has entered a new phase. Marketers need to
determine how loyalty programs fit into their overall corporate
goals and sustain both the funding and support to continue to
grow their programs and maintain profitability.
Shop Your Way and Integrated Retail are at the core of Sears Holdings’
transformation. We are investing in our members through these two
strategic priorities so we can serve them on their terms – when they “With a lot of these product
want, how they want, and where they want.
categories becoming more
Through Integrated Retail, we invest in capabilities that allow us to
bring the best of both worlds together for our members – the ease
complicated, we’re looking for ways
and convenience of shopping online and the physical experience of to differentiate our service and
shopping in-store.
Leena Munjal,
improve that in-store experience.”
SVP, Customer Experience
and Integrated Retail
Sears Holdings
John Learish,
Sr. VP of Marketing
Rite Aid
24 Loyalty Management™ | SUMMER 2017
We have worked to build the customer experience from the ground We track our metrics very closely. We’re always looking at
up. This encompasses the whole experience from the first contact things like retention; what does attrition look like among different
the customer has to the last. How we interact with our customers segments, what does spend per trip look like? We also do surveys,
from the beginning to the end has to be consistent. This starts with which provides feedback from members to determine different
the potential customer seeing our online banner, to a visit to the aspects of our value proposition. And I think all those things are
rental shop, to signing up for our loyalty program – RedZone, to things that we’re focused on in the next year, in terms of everyday
their first time redeeming points. Every touch matters, even the way benefits that we’re giving members versus the additional targeted
communication is sent out. Every experience with our company and promotions or additional services that are available.
our brand has to be consistent for the customer.
Stephanie Meltzer-Paul,
Rich Mohr, VP, membership engagement
VP Rental & Global Product Manager BJ’s Wholesale Club
Ryder
The movie industry continues to be threatened, if you will, I think externally what the customers want is better visibility
by the latest in-home entertainment. But I think it’s good into our business. They want better visibility into what our
for the industry because it drives us to deliver the best inventory is. They want to know what our inventory is, what
customer experience possible. Who knows if all the advances types of equipment we have, when they want it, and where they
like recliners, extended menus, cocktails, and premium want to pick up. There is a lot more access to the business now.
formats--- where would those amenities be today without the Once, the business was only done from 7am to 5pm Monday
competition? So far, we’ve been able to go above and beyond through Friday, and maybe a couple hours on Saturday. That was
and produce an experience that the customer finds value in the old model. But now our clients are expecting to self-serve
and I believe that we will continue to do so. more. We’ve seen that shift over the last three or four years with
web-based reservations and live inventory. And that’s not as
Kelly Hawkins, easy as it sounds with such a diverse array of equipment that we
VP of loyalty marketing have to carry. Being able to manage life inventory with the new
Regal Entertainment Group customers’ expectations becomes more and more complicated.
Rich Mohr,
VP Rental & Global
I feel like guests are really after convenience and options. Product Manager
They want what they want when they want it, and of course Ryder
the snack industry is no different there. Consumers are looking
for programs that make their lives easier and provide value.
So, if we can provide that with our My Pretzel Perks program,
or any of our other offerings, such as connecting on social, that
is really going to drive value for each and every guest.
Meredith Wenz,
Director of Marketing
Auntie Anne’s Pretzels
Even the most loyal consumers purchase more of their favorite brands when better engaged.
21% 33%
increase in “occasional diners” at their favorite
restaurant brands as engagement increases
INCREASE IN
CONSUMERS
WHO SHOP THEIR
FAVORITE STORES
96%
“most of” or “all of” of highly-engaged CPG loyalty program
the time at higher members buy their favorite brands
levels of engagement “most of” or “all of” the time
SHORTFALLS
OF VIDEO
MARKETING
Summer Felix-Mulder
Co-founder and CEO
The Draw Shop, LLC
The oft-quoted numbers show us why, too: It makes sense then why,
nowadays, everyone has a
• Landing pages that include videos reach up to 80% higher video. But videos aren’t without
conversion rates1 their own customer-experience
problems. And in a world where
• Emails with explainer videos have a click-through rate uplift customer experience is poised to
of between 200% to 300%2 overtake both price and product
as the key brand differentiator in
• And on social media, using texts and images resulted in the next few years4, innovative
1200% FEWER shares than using the tried-and-tested video3 companies are looking for a fix.
Agree with
Say you
You’ve seen one or two, maybe from Deloitte or other leaders
Leave the boss
who use interactive videos to jumpstart everything from customer
disagree
engagement to employee hiring. the office
And the secret as to why interactive videos are so valued might just
be because they fix the problems that traditional video presents.
THE THE
ENGAGEMENT IMPROVEMENT
PROBLEM PROBLEM
Having a video in and of itself does not elicit a “Wow”. When you put a video out into the world, you can collect a
certain amount of stats on it. How long someone stayed on
While watching videos is more engaging than reading text, you it, when they quit, and ... that’s about it.
just don’t get that same lean-in engagement that you get with
media that compels you to actively interact with it. In interactive media, every decision point the viewer
encounters provides you with valuable information:
Not so with interactive video. Viewers are in control with preferences, tendencies, time interacting with each portion,
interactive media, which makes them spend on average 64% when people got bored or left—this and more amalgamated
more time with it than traditional video. into fresh, actionable data waiting to be used. This makes
it easier than ever to take action, plugging the leaks in your
marketing video and improving the overall experience of
your customer.
THE According to the White House Office of Consumer Affairs,
AUDIENCE customer loyalty is worth, on average, up to 10 times the
amount of the customer’s first purchase.
PROBLEM In a world short on loyalty, interactive videos improve the
customer relationship by personalizing and updating the
Traditional videos are linear—you watch it from the beginning to customer’s experience with your brand—not to mention
the end, and that’s that. You make a video for a certain audience your ability to consistently approve your message and
and hope it reaches them. But if you want to target more than approach.
one audience, you either try to reach everyone with one video
(bad idea) or make multiple videos (which can get expensive). Every day, our world becomes more interactive: in a few
short years, interactive media might well be the new norm.
Interactive videos change according to what the individual The good news is that, while corporate behemoths might
watching it picks. That not only lets you target several have already begun filtering into the Interactive Media
audiences—it allows you to target people on a granular level. space, it’s still relatively new on the scene. That “Wow”
Every choice they make on your interactive video segments factor still applies. Small- and medium-sized companies can
them that much more, putting them in front of specific break in and stand apart from their competition.
information or experiences made specifically to entertain them,
enlighten them, or move them.
Maybe that’s why interactive videos see twice the conversions,
and over 14 times the click-through-to-purchase rates5 when
Summer Felix-Mulder is a serial entrepreneur and author who’s dedicated
compared with traditional video. Finally, we have...
to making the world a better place. She’s also co-founder and CEO of The
Draw Shop, LLC, the video-animation company that makes attention-
getting sales & marketing videos for the world’s best minds and companies.
1
http://www.eyeviewdigital.com/documents/EyeView-White-Paper-Making-Video-Accountable.pdf Summer holds creative degrees from Pepperdine University and loves
2
https://www.forrester.com/The+Email+Marketing+Playbook+For+2015/-/E-PLA230
writing, momming (is that a verb yet?), and competing in triathlons.
3
https://smallbiztrends.com/2016/10/video-marketing-statistics.html
4
https://www.walkerinfo.com/customers2020/
5
http://www.cyberalert.com/blog/interactive-video-the-next-big-marketing-trend/
An Incentive Framework to
Align the Buyer and
Partner Journeys
Claudio Ayub
Chief Strategy Officer
Perks
It is no secret that CPG and other multichannel brands are and figuring out what works best for them, we are seeing
facing an almost existential set of challenges. In particular, some clear benefits and common themes and trends emerging
the increasing fragmentation of both their customer bases in terms of program design and promotion implementation,
and their distribution channels along with the ever-increasing especially when compared to previous pin-on-pack programs.
competition from private labels and upstart brands (which are
easier than ever to launch) makes it a lot harder for brands to Time & Geography Delimited Programs: For those reared on
differentiate themselves on shelf and drive repeat sales. pin-on-pack, this is especially powerful. With receipts, you
know the date when the product was purchased as well as the
Further, the crumbling of today’s media audiences and the store address and zip code, and can hence create time-based or
explosion of new media channels (primarily digital and mobile) geography-restricted promotions during specific periods.
means that it is very difficult for brands to build profitable
relationships with their best customers through brand We have a client that ran a month-long “double points”
advertising and other above-the-line marketing spend alone. promotion as part of its launch strategy to increase visibility and
support for the program. Brands are also running promotions
As alternatives, loyalty and below-the-line shopper marketing during specific promotion windows (such as “back-to-school”)
efforts are proving to be more effective in addressing some of for certain products. Programs can also be restricted to specific
the challenges above and in driving sales – and tend to have a zip codes, cities, states or DMAs – or have promotions that
much greater (and more tangible) ROI for the spend. reward participation from those geographies.
Historically though, CPG brands have shied away from loyalty Retailer Support: Receipt-based programs are very effective
programs due to the difficulties and expenses in program for creating programs in partnership with specific retailers,
implementation. However, with widespread consumer especially if the objective is to get better retailer support for
smartphone adoption and the advent of receipt processing as sales and shelf placement. One brand created an entire loyalty
a viable alternative to pin-on-pack (receipt processing being program targeted at one specific retailer; consumers could only
both more convenient and cost-effective), increasing numbers get points for purchases made at this retailer. Other brands
of CPG brands are revisiting loyalty programs today. have run retailer-specific promotions where consumers got
double or triple points for purchases made at those retailers.
3 STEPS TO PREPARING
A ROADMAP TO CUSTOMER
ENGAGEMENT TRANSFORMATION
Manmohan Gupta
Digital Transformation | Product Marketing
Software Marketing
Pitney Bowes
PAYBACK TIME:
Len Llaguno
Chief Customer Officer
Willis Towers Watson
$3.926
of dollars in some programs. And like $2.789 $2.574
any other kind of prospective financial
commitment, CFOs are interested in $0.685
$0.446
the balance between risk and reward.
For loyalty programs, that balance Amex United Delta American Marriott IHG Hyatt
largely depends on predicting member
revenue, how members earn and KEY TAKEAWAY: Program changes don’t just affect cost of points issued in the
redeem points, the role of affinity future, but also impact the cost of points issued in the past!
partners and suchlike. The methods
for doing these things are moving on. Advanced analytics techniques are enhancing loyalty program investment cases and helping to more
consistently blend financial and marketing objectives.
NASHVILLE
November 6-8, 2017 | Sheraton Music City | Nashville, TN
38 Loyalty Management™ | SUMMER 2017
The only
conference
focused
completely on
your customer
The inaugural Customer Expo will focus on all aspects of the customer comprehensive forum to meet and discuss the challenges facing brands
journey, including an exploration of crucial audiences both internal and today. Covering topics from performance management metrics, to interest
external. Through a robust slate of best-in-class speakers and interactive & acquisition, to organizational commitment & alignment, Customer Expo
discussions, actionable case studies, and proven world class technology truly is the complete customer conference.
suppliers, attendees will learn about the latest theories, best practices,
relevant case studies, emerging trends, and strategies that drive Brands in attendance at Loyalty360 events last year included:
measurable behavioral change and quantifiable results. American Airlines, Wyndham Hotel Group, Johnson & Johnson, GE
Energy, Allergan, Microsoft, United Airlines, MoneyGram, Best Buy, US Bank,
Customer Expo will provide insight on all customer-facing processes, from Ulta, Hilton, Sears, Citi Bank, Citizens Bank, GameStop, and many others.
the initial interaction that engages the customer, through the personalized
experiences that create a deeper relationship with that customer, to
the loyalty and retention processes need to keep a customer profitable
and loyal for life. In addition, the conference will touch upon the internal The three-day event will be jam-packed with
processes needed for organization excellence. This includes organizational learning and networking opportunities, including:
alignment and customer insights, as well as other internal factors that
create unique alignment between internal and external audiences. • 20+ sessions
• interactive workshops
The ability to understand the unique expectations of customers is more • peer-to-peer marketer-only roundtables
important now than ever. Customer Expo will give you insights on how to • new consumer and industry benchmark research,
transform your relationship with consumers, both today and going forward. receptions, meals, and breaks in the exhibit hall
• member-only networking
Creating increasingly relevant, personal, and customized experiences to
• post conference offsite learning opportunity at a
build sustainable bonds with customers is what will set your brand apart local recording studio to get a unique behind the
from the competition. From the first touch point to the most recent, these scenes perspective.
experiences are vital to elevating the experience, using data and actionable
insight in a more simple and manageable manner, leading your customers
down the path of engagement, and allowing for long-term mutually
beneficial relationships and brand advocacy on the journey to loyalty.
While past Loyalty360 events and conferences have focused on the
customer in specific areas, Customer Expo will encompass the complete
journey, and we are pleased to be able to offer this conference as a
From the Inside Out: CenturyLink’s Key takeaways from the session include:
Application of First-Hand Digital
Transformation Lessons Creates • The significance of the digital transformation
Effective Client Relationships process Ways in which internal processes
can be applied to outward-facing projects
Bill Hurley
CMO Digital transformation is a phrase that is often thrown
around by companies across all verticals, but rarely is it fully
understood and executed. Simply defining and socializing
the hurdles faced by companies looking to improve their
digital presence can often prove to be a challenge, with many
brands unable to even identify the problems that need to be
solved. CenturyLink offers a unique perspective on the topic,
given that the company went through its own transformation
recently, giving them a first-hand look at the process from
both sides of the table.
Lisa B. Erickson SleepNumber is a long purchase cycle business, which is non- • Ways in which internal processes
traditional for most loyalty program brands. However, loyalty can be applied to outward-facing projects
Sr. Director of
and engagement is not a new concept for the brand. Before
CRM & Loyalty
integrating their existing Innercircle loyalty program with the
InnerCircle online program, SleepNumber had been creating
champions out of clients by incentivizing their Insiders with
refer-a-friend initiatives and building leads from those referrals.
Emily Rudin
Chief Customer Officer
Loyalty. Engaged.
The company has worked to make every employee feel like a contributing factor to overall organizational
success, and is proactive in sharing customer feedback with all employees. As a result, the brand has seen
positive outcomes in employee engagement and, consequently, customer experience as a whole.
Michael Marino
CXO
Michael oversees the Total Rewards Loyalty program, which consists
of customers from Caesars’ gaming, hospitality, and online businesses.
Michael also oversees the Caesars.com e-commerce business, digital
media, and PlaybyTR, Caesars’ mobile app. Michael’s previous roles within
Caesars include Vice President and Executive Associate to the Chairman,
President and CEO and Director of Marketing Analytics. Prior to joining
Caesars, Michael worked at Bain & Company and Capital One Financial.
Jamie Russo
Vice President of Loyalty Programs
and Customer Engagement
Jamie Russo, Vice President of Loyalty Programs and Customer Engagement, joined Choice Hotels
International in October 2014 to spearhead strategic direction of Choice’s award-winning loyalty
program, Choice Privileges. In his role, he is responsible for growing and further enhancing the
loyalty program as well as managing relationship marketing. He also oversees reservations and
customer and franchisee engagement across Choice’s network of call centers.
Jamie came to Choice from American Express, where he had various positions spanning card
acquisition, product management, and business development. In the consumer division of American
Express, he managed marketing of co-brand products (including the Delta SkyMiles Card),
negotiated and launched the Mercedes-Benz credit cards, and began acquisition programs with
Amazon Prime and Universal Studios. He also held positions in the Merchant Services organization,
where he was responsible for managing global hotel and industry relationships.
He holds a B.A. in Economics and Spanish from Bowdoin College in Brunswick, Maine.
Mark has significant experience in selling, designing and administering prepaid, loyalty/CRM programs, as well
as data-driven marketing communication programs. He received his start in loyalty program design while at
Fifth Third Bank in Cincinnati, OH where he developed the bank’s open (merchant-based gift card) and closed
(MasterCard) system stored value programs (Premiere Issue).
Mark has his undergraduate degree in mass communications (media management) from Miami University, an
M.B.A from the University of Cincinnati, and is currently pursuing an M.B.A. in Business Information - Statistics
from Xavier University. A recognized thought leader in loyalty marketing, Mark shares his expert insights with
media worldwide. He is a regular contributor to Hotel Executive and 21st Century Business and has been featured
in FoxBusiness, NBC News, ABC News, New York Times, Washington Post, 1to1 Magazine, MarketingSherpa,
CRM Magazine and The PrePaid Press.
Marc Rashba
VP of Digital Partnerships & Development
Marc Rashba is currently the Vice President of Digital Partnerships &
Development for Sony Pictures Entertainment. Previously Marc was the
Vice President of Marketing for Sony overseeing the company’s customer
marketing group for RVOD, digital and physical accounts working on
reward winning programs at Amazon, Best Buy and Walmart. During
that period, Marc was able to work on efforts with both the My Best Buy
rewards team as well as with Amazon Prime. Marc also developed a new
product line and a new technology that were awarded patents which he
shares with Sony.
Prior to Sony, Marc spent a number of years in the music industry at EMI
Music Group in a variety of strategic roles, but loved his time working
with Brett Michaels and the band Poison the most. Marc also held a
number of other entertainment roles with Bagdasarian Productions,
Amblin Entertainment and others. He lives in Oak Park, CA with his wife
and three children.
Stephen Kennedy
Director of Loyalty
As an expert in engagement marketing, Stephen leads the development,
execution and management of the award-winning Dominos® Piece of the
Pie Rewards program; which has been a significant contributor to Domino’s
continued business success. As Director of Loyalty Marketing, Stephen is
responsible for the overall success and ongoing management of the loyalty
program, directs the testing of the program to ensure continued success
and has responsibility for member engagement, experience and program
profitability. Leveraging over 15 years of marketing experience focused on brand
strategy, insights, innovation, advertising and strategic planning, Stephen is
constantly striving to take the Piece of the Pie Rewards program to the next
level of engagement.
Doug Zarkin
VP - CMO
Doug Zarkin is a senior-level, global strategic marketing executive with an
impressive array of honors and recognition for his marketing and brand building
successes in the retail arena at companies such as Avon, Limited Brands and
Kellwood. In 2012, Doug joined Luxottica as the VP-Chief Marketing Officer
for Pearle Vision where he is currently responsible for the global strategic
marketing, visual merchandising, product promotion and store design for
Luxottica’s global optical franchise business.
In 2015 and again in 2016 , Doug was recognized with an Effie for marketing
excellence in HealthCare Services Marketing for leading the brand revitalization
work for Pearle Vision. When not at the office, Doug can be found on the tennis
court or in the pool with his two kids.
Marcos Czacki
Chief Operations Officer
Marcos Czacki is Chief Operations Officer in Daimler Financial Services
Mexico. Czacki is Coordinator of the Anticorruption and Compliance
Committee of the Corporate Counsels Association in Mexico (ANADE),
member of the Mexican Bar, ACAMS Chapter Mexico, ACFE and also
Board member of the International Chamber of Commerce (ICC) in Mexico.
HERE! RyanHarder@loyalty360.org
*Valid only for new members. Cannot be combined with any other discounts/promotions. Offer expires December 31, 2017.