Professional Documents
Culture Documents
2017 Loyalty Management Magazine Q1
2017 Loyalty Management Magazine Q1
2017 Loyalty Management Magazine Q1
SunTrusts Omnichannel
Understanding
2 Loyalty Management | WINTER 2017
In this Issue...
WINTER 2017 | VOLUME 10 NUMBER 1 | LOYALTY360.ORG
FEATURES
10 12
For PSE-run Buffalo Sports SunTrust Strives to
Teams and Loyalty, Its Not Know its Clients in an
Just About Points Omnichannel World
Mark Johnson | Loyalty360 P.F. Wilson | Loyalty360
14 16
Balancing Online with Cigna Customer-Centric
Brick-and-Mortar Helps Approach and the Quest
rue21 Provide a Winning for Healthier Outcomes
Customer Experience P.F. Wilson | Loyalty360
Mark Johnson | Loyalty360
46 LOYALTY EXPO
CX and the art of storytelling
16 BEHIND THE BRAND Confirmit
Brian Venuti, Luxottica Group PREVIEW
32 LOYALTY FORUM: Q&A
18 360 INSIGHTS
Mark Johnson, Loyalty360 34 STATE OF THE INDUSTRY
Why the Future (and Loyalty) Belongs Loyalty Management Editorial
18 TECHNOLOGY, TRENDS & REWARDS to Millennials & Production Team
Where Is Mobile Marketing DataCo Solutions P.F. Wilson - Editor-in-Chief
Headed in 2017? Mark Johnson - Contributing Editor
3Cinteractive 36 TECHNOLOGY, TRENDS & REWARDS Carly Stemmer - Contributing Editor
Give Them What They Want: Shawn Cunningham - Design Director
20 STATE OF THE INDUSTRY Consumer-Controlled Content David Rickerd - Design
Members Want Options, Steve Taggart - Content Strategist
Drawshop Crescent Printing Company - Print Production
Not Just Rewards
Baesman 38 TECHNOLOGY, TRENDS & REWARDS
Creating Engagement with Contacts
22 TECHNOLOGY, TRENDS & REWARDS Personalized Interactive Videos Article Submissions & Advertising:
Marissa Hanson
Driving Loyalty and Engagement HapYak Client Relations/Account Manager
with Prepaid Commerce marissahanson@loyalty360.org
CashStar 40 TECHNOLOGY, TRENDS & REWARDS 513.800.0360 ext. 131
Driving Shopper Engagement through
24 STATE OF THE INDUSTRY Digital Technology 2017 Loyalty360, Inc. and/or its affiliates. All Rights Reserved.
2017: The Year of Social Loyalty Synchrony Financial Reproduction and distribution of this publication in any form without
Chirpify prior written permission is forbidden. The information contained herein
42 STATE OF THE INDUSTRY has been obtained from sources believed to be reliable. Loyalty360
26 BEST PRACTICES Rewards and Incentives in the Real World disclaims all warranties as to the accuracy, completeness, or adequacy
of such information. The opinions shared are those of the contributing
7 Ways to Create a Seamless Virtual Incentives authors and not necessarily reflective of Loyalty360 and/or its affiliates.
Experience Between Mobile and In-store Loyalty360 shall have no liability for errors, omissions, or inadequacies
Clutch 44 LOYALTY FORUM: FEATURED TECH in the information contained herein or for interpretations thereof. The
opinions expressed herein are subject to change without notice.
Featured Technology, Products,
28 BEST PRACTICES Advancements & Technologies
How Your Big Data Can Grow Traffic
Cogensia
Loyalty Management | WINTER 2017 3
FROM THE EDITOR
BehindtheBrand
WITH BRIAN VENUTI | VICE PRESIDENT GLOBAL CRM, LUXOTTICA
Brian Venuti is the vice president of Global CRM at Luxottica Group and is based in
Cincinnati. He leads global CRM for Luxotticas patient, optical, and sun businesses.
Brian supports Luxotticas extensive retail network of approximately 8,000 stores, with
LensCrafters and Pearle Vision in North America, OPSM and LensCrafters in Asia-Pacific,
GMO in Latin America, Salmoiraghi & Vigan in Italy and Sunglass Hut worldwide.
With a background in marketing, CRM, and customer experience, Brian has previously
worked for and with some of the most recognized brands in the world including Capital One,
MasterCard, Discover, Dun and Bradstreet, Sears, and E-Trade.
At Luxottica, Brian and his team are accountable for delivering personalized CRM campaigns,
which contribute hundreds of millions of dollars in incremental revenue to the global
retail business. His team also owns and manages the patient platform that facilitates the
scheduling of millions of optical appointments annually. Additionally, he oversees the loyalty
strategies across all retail brands, including the Sun Perks loyalty program for Sunglass Hut.
Through the efforts of Brians team, customers are able to unlock a more personalized
experience with the brands they love like Ray-Ban, Oakley, and Persol. Mr. Venuti was kind
enough to let the readers of Loyalty Management get to know him better by answering a
series of questions about his life on and off the job.
2
WHAT IS YOUR PERSONAL MOTTO? YES
FAVORITE WORD?
Keep things in perspective. Life can get overwhelming if you dont.
3
NO
FAVORITE WORD?
WHAT DID YOU WANT TO BE WHEN YOU WERE GROWING UP?
An advertising executive. Interestingly, I now strongly prefer being WHAT TURNS YOU ON
4
on the client side. CREATIVELY, SPIRITUALLY, RESPECT
OR EMOTIONALLY?
5
WHO HAS HAD THE MOST INFLUENCE ON YOUR PROFESSIONAL WHAT TURNS YOU OFF? HYPOCRISY
LIFE, AND WHY?
My manager. As the researchers say, people are most influenced to
WHAT SOUND OR NOISE DO
6
stay or leave a company by their manager. OCEAN WAVES
YOU LOVE?
7
U2. They are forever relevant and awesome. YOU HATE? MIDDLE OF THE NIGHT
WHAT WAS YOUR LAST AH-HA CUSTOMER EXPERIENCE? WHAT PROFESSION OTHER SOMETHING WITH
8
THAN YOUR OWN WOULD PROFESSIONAL SPORTS
WHAT MAKES IT MEMORABLE? YOU LIKE TO ATTEMPT?
9
content about that restaurant when I walked in. Amazing relevancy POLITICS
YOU NOT LIKE TO DO?
to get the scoop on reviews, but more importantly, it kept them
front of mind for me to leave a review.
IF HEAVEN EXISTS, WHAT
WOULD YOU LIKE TO HEAR WELL DONE GOOD AND
GOD SAY WHEN YOU ARRIVE FAITHFUL SERVANT
AT THE PEARLY GATES?
*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.
We continue to see more terms in our industry that lack definition, There is plenty of new technology that is meant to create simplicity,
structure, and an explicit understanding of what these new terminolo- that often does the opposite, with new offerings being introduced
gies actually mean. As we talk to brands on a daily basis, we ask them constantly. How one technology provider may define, sell, or measure
about how they define customer loyalty, how they socialize customer a customer experience or customer loyalty program is completely
loyalty, and how customer loyalty can impact their organization. different from peer organizations. The topic of the day, the shiny object
of the moment, really drives focus from within many organizations, yet
There is a divide between those who talk customer loyalty and those they still struggle with how to leverage technologies in an integrated
who talk to the loyalty program. Loyalty360 has always believed that fashion that help empower the relationship, create reciprocity, and
the loyalty program is but a piece of a comprehensive strategy that strengthen the brand promise. More and more brands are realizing
brands should enable to create total and comprehensive customer and they must focus on customer loyalty and be able to engage the cus-
brand loyalty. tomers in a unique way.
We also continue to see the growing complexity and increasing num- Still, they struggle with regards to benchmarking and with what
ber of technology platforms that are intended to create simplicity, but technology they should use. As we ask brands what we can do for
have done the exact opposite. Terms such as frictionless loyalty and them, and what keeps them up at night, the growing and diverse set of
empowered engagement are often heard but dont necessarily help responses is quite interesting.
brands in their customer journey. In fact, they tend to do the opposite.
Over the next year, Loyaty360 is going to work with a board of advisors
The need for standards, definitions, and a more detailed ability for to create a series of certifications and standards as well as continuing
brands to benchmark themselves has become quite apparent. education resources that will help create simplicity and bring unity to
the industry while coalescing thought around customer loyalty.
As we talk to brands, we continue to see an increasing divide between
the brands that are doing well in creating customer loyalty and unique Again, its not about the loyalty program, its about driving true brand
experiences that are based on reciprocity, with a detailed understand- advocacy and true customer loyalty, based on a set of experiences that
ing of their customer, and those who struggle. that individual has with that brand. We look forward to bringing more
of our thoughts to the process and to the industry over the next six to
The challenge is, brands still have a difficult time listening to their cus- nine months.
tomers. Hearing their customers is a passive process, but active listen-
ing and engagement is something that brands really struggle to do.
Mark Johnson
MarkJohnson@loyalty360.org
loyalty360.org
FEATURES
The pro sports calendar in Western New York is pretty much owned by Pegula Sports & Entertainment.
The sports conglomerate owns the citys football, hockey, and lacrosse teams. Knowing that the fans of
those teams were already loyal, PSE sought a different way to reward the faithful. Scott Miner, director of
business solutions at Pegula Sports & Entertainment explains.
Mark Johnson
Loyalty360
If youre watching pro sports in Western New Scott Miner, director of business solutions at
York State, theres a good chance youre watching Pegula Sports & Entertainment. Its not really a
a team owned and operated by Pegula Sports & rewards program. We never call it a rewards or
Entertainment, or PSE. The company was formed loyalty program. Rewards programs will tell you
by Kim Pegula to bring all the Pegulas interests information you already know and not drive new
under one umbrella. PSE owns the NFLs Buffalo fans, affinity, or loyalty.
Bills, the NHLs Buffalo Sabres and their farm To that end, PSE avoids the terms loyalty
team the Rochester Americans of the American program or rewards program. For us this is
Hockey League, as well as the Buffalo Bandits of a status program, Miner explains. This is a
the National Lacrosse League. PSE also owns the program that allows you to earn status for your
arena in which the Sabres and Bandits play. affinity with our brands, whether thats football,
hockey, lacrosse, or entertainment. We never
Tying all of the Buffalo based teams together really go down that road, of points and loyalty.
is My One Buffalo, an all-encompassing status
program. It is a full circle initiative for us, says
Garden-variety sports reward or loyalty programs typically There are three groups of fans, Miner explains. A typical
offer points for buying tickets and items at the concession football fan is one type of user. A hockey fan is another type
stand. Points can then be redeemed for merchandise. and then there is a randomness in that third group because it
could be anybody.
With a loyalty program, youre rewarding a fan for their
interactions with your brand, Miner says, which doesnt
What PSE found in the third group are those willing to cross
really work because they were already there. No one is going
over. But we havent found the symmetries within them yet
to come to a game to get points to get a free hat. But what you
because it could really be anything, adds Miner. Some people
can do is leverage the fans you already have in-venue.
are in it for entertainment. Some people are in it for sports.
Some people are in there just for the excitement. Its all over
Its a benefit to be a part of this program rather than just
the place. Were consistently analyzing our data-set to find
getting points and goods, Miner says. And the benefits
factors that are common across all those fans.
arent just physical loss-leaders. Instead of them being loyal
to the team or teams, PSE is showing loyalty to the fans and
bestowing status as a way to differentiate themselves within
their community.
SunTrust
Strives to Know
its Clients in an
Omnichannel
World
P.F. Wilson
Loyalty360
Like many industries, banking has changed drastically over the past half
century. Atlanta-based SunTrust is one institution that is at the forefront of
meeting the needs of customers across a variety of channels and platforms.
We
up to three years.
That type of product isnt necessarily unique, but we provide the kicker, look to technology
as I was talking about, Randolph adds, so with us you also get rewards
with that product, which is unique in the industry. The trend, according as a way of providing the
to Randolph, is around not just building products but looking for ways to
integrate them more with other relationships that clients have with their speed, the ease-of-use
bank.
While this helps the banks bottom line in the long run, its also a more so that clients can bank
socially responsible approach on the front end.
Customers now expect speed, ease, and overall efficiency along with
courteous service. We try to deliver on those, Randolph adds. We
look to technology as a way of providing the speed, the ease-of-use so
that clients can bank through any channels that they choose. The way
we think about it is, again, based on what the client wants from the bank
and what solution they want to have fulfilled through that channel at that
point in time.
Many clients now move seamlessly across channels. You may have
clients do research and get their questions answered via the web,
Randolph says. But then they may want to actually walk in and meet the
branch manager because the branch is convenient to where they live, and
that is where they want to get the solution that theyre looking for. Maybe
its a credit card, maybe its some other service, a checking account, or a
deposit account.
Mark Johnson
Loyalty360
Like any and all retailers in apparel, or brick-and- has become easier over the years, but making
mortar retailers in general, were certainly hitting returns back through that same channel has not.
some headwinds, says Joel Layton, VP, digital Customers prefer to make exchanges and returns at
marketing for rue21. I think were doing a good job a physical store, even if they bought online.
of cutting through it. Were not getting beat up quite
as bad as others are, which is a net win. Because our footprint is so vast we have to
understand that, Layton says. We have to be able
While the waters remain choppy in to, by the nature of our size and product blend, and
the malls and shopping centers more importantly by the nature of our demographic,
in which the chain primarily understand fully how digital is affecting that. So, we
operates, rue21 is steadily have to ask ourselves is it free returns in stores?
growing its e-commerce
business. We have some To that end, rue21 is launching its ship-to-store
big dreams over the program. The question is how does that
next couple of years to eventually evolve from the perspective
make that a bigger play, of one day understanding
Layton says. Were real-time inventory
relatively new in pure in a store?
e-commerce. Our website
was turned on in 2013.
Were able to grow quickly
just because, in effect, at some
levels, were catching up. But Were
theres a real appetite for our stuff nowhere
based on our fairly massive twelve-hundred near there
store footprint. yet, Layton
says, but these
The growth, according to Layton, comes from are the things that
being able to help educate not only people inside were starting to
the organization but customers as well in terms of talk about.
how digital affects brick-and-mortar. And so really,
the goal is to become a good, solid e-commerce or We have this massive
omnichannel play, Layton adds, because ultimately footprint and people
thats how its going to go down for us. Were going are going into the
to right-size the digital because many of the efforts stores because on their
that I do as the head of digital marketing are to handheld they searched
support the stores. Thats part of my charter; to for rue21 Ts or rue21
drive traffic into the store. So, were embarking on tops, or tops in general.
some very interesting initiatives down that road. They see that pin on a
map and thats where
One way digital is driving traffic into brick-and- we are.
mortar locations is via returns. Purchasing online
Cignas Customer-
Centric Approach
and the Quest for
Healthier Outcomes
Like many health insurers, Cigna has two
customers: the employers that partner with
Cigna to provide benefits to employees and the
employees themselves. Balancing the needs
of both is a constant challenge. Rick Long,
global head of customer experience at Cigna,
discussed those challenges.
P.F. Wilson
Loyalty360
I think what really kind of turned it for us is a recognition that the insurance marketplace is really going towards customer service, says Rick Long,
global head of customer experience for Cigna and that health insurance service companys recent efforts to build a more customer-centric culture.
A lot of things that were put in place a few years ago, were certainly accelerated over the last six or seven years.
Like many health insurance companies, Cigna obtains most of its customers through
employer-provided health plans. To that end, Cigna is focusing more on the end users.
Employers may still be subsidizing an employees insurance choice because theyre
bringing in multiple insurance companies to have their workers choose from, Long
explains. We really felt that it was important that we distinguish ourselves with
customers to make ourselves their number one choice.
Its a new approach in the industry, and while others are starting to move in that
direction, Cigna appears to be leading the way. Id like to believe were out in front of the
curve, says Long, but you certainly do see it from several of our competitors. A number
of them have said that theyre going to do some new customer activities and focus more
on the customer. Certainly, with some of the products weve put out recently were a bit
ahead of them.
The key to that has been a bit of introspection on the part of Cigna. What we found,
Long reveals, is people will work at Cigna because they want to help take care of people.
They look at it as a noble cause. That for us is something that were able to
tap as we start to really kind of drive back toward customers.
As one of the top five health care providers in the U.S., Cigna
is reflective of what is happening in the industry as a whole
according to Long. Its an industry that is notably complex and
notably fragmented, he says, and we have built around that
fragmentation in some ways. What Im doing to help change
the culture of Cigna is bringing together those fragments so its
seamless to the end customer.
Weve integrated all those things into a system that we call the
One Guide.
What weve done, kind of for the first time, Long continues, is integrate our administrative call
center and our clinical call center. Our pharmaceutical call center is also part of that. The behavioral
data is coming in there on the phone side so that you get one rep that can answer questions on those
boards as opposed to before when it was siloed.
Its also integrated with a new mobile app named myCigna. Weve
got pretty good reviews on that too, Long boasts. Weve taken a step
back from the traditional health insurer application, which tends to be
everything to everybody to really try to refine that down to the things
that we really know customers are coming for.
It is this information that can lead to healthier outcomes not just for
Cigna customers but industry wide.
We see all the medications that people buy, Long says. We see all
the procedures people have. That all comes through us. Were helping
providers who have a big job on their hands to be able to sift through all
that information and understand what their patients are doing. We can
tell if a patient is actually getting the best care possible.
Where Is Mobile
Marketing Headed
in 2017?
Margie Kupfer
Vice President Marketing INNOVATING COUPON DELIVERY
3Cinteractive
Retail marketers will be focusing on coupon delivery in 2017.
Studies have shown that 40% of consumers dont make
2016 was the year of Pokmon Go, a purchase simply because they left their coupon at
AI, chatbots, mobile video, and home1. Mobile-enabled coupon delivery eliminates
this obstacle and, according to consumers, actually
location-based marketing to name motivates them to make purchases more often.
a few. So, whats next on the The proof is in the data: mobile coupons have been
seen to increase redemption as much as 10X over
minds of marketers to win share their printed counterparts2.
Mobile coupons have been seen to
from their competition increase redemption as much as 10X
over their print counterparts2 Mobilizing these coupon programs is essential to
and boost customer capturing the all-important millennial shopper, who
will spend more than $200 billion annually starting in
engagement in 2017? 20173. Winning this demographic is crucial to any retailers
strategy and they do not clip paper coupons.
Jeff Sopko
President, Insights & Marketing
Baesman
As loyalty programs become more ubiquitous with new innovations and Flexibility
strategies, customer expectations are simultaneously rising. New ideas,
offers, and models are penetrating the market, opening new doors and expanded
for rewards.
offers attract
Perhaps more importantly, every program is now held to the standard
of blue-chip programs in the customers view. All brands these days are new customers
held to the level of industry leaders: Amazon Prime, Costco, and
Marriott are a few examples. and prevent
Given the competitive set, its increasingly imperative brands offer a wider current
range of rewards that covers a broader selection of interests and even
shallower offers customers can use more frequently. Flexibility and expanded
members
offers attract new customers and prevent current members from lapsing. from lapsing.
They also have a high probability of increasing frequency and engagement.
Gift
stay at the chains top-tier resort. But for many members, that hotel stay in Fiji is too distant and
unattainable. In fact, those points become a liability for the company as theyre unlikely to be
massage redeemed.
Thanks For many business travelers, a simple free water or drink voucher might be a better option than
for your loyalty
a free stay. Even discounts on common hotel services could increase program frequency
examples could be spa services, or discounted partnerships with local restaurants and
attractions.
For many travelers, those simple offerings are reachable and increase the value of their stay,
which in turn increases customer loyalty.
Grocery Retailers
Grocery chains are another industry ripe for flexible rewards. To some extent, many chains have
expanded with fuel points, but theres been little innovation since then. While slightly more
diverse, theres still a wide range of options to increase program engagement.
Movie
Voucher CinemaImagine if a customer lives in a city and doesnt drive, fuel points become useless, and theres
not much else to spend points on. Thats a major problem in some larger cities in the U.S., where
Thanks Seat public transportation is often usedNew York and Chicago for example.
for your loyalty Also, consider the data grocery chains have on what members are buying. For many shoppers,
groceries tend to be a rather consistent routine of items theyre picking up from week-to-week.
Imagine utilizing that product affinity and matching rewards back to similar servicesanywhere
from dry-cleaning, movie tickets, or even health club discounts. The goal is to keep those
customers coming, and a more flexible, data-driven offering can resonate well with many
members.
Brands that innovate and provide better service within rewards will see the most success. Theyll also build a solid
foundation in customer loyalty thats needed in the tumultuous years to come with changing shopper behaviors.
Driving
Loyalty and
Engagement
with Prepaid
Commerce
Gerry Gilbert
Vice President of Product Management
CashStar
Author Bio
Gerry has 20 years of experience in the payments and software industry, and deep expertise leading product strategy,
management and development for payment-related products. Prior to joining CashStar, Gerry was Group Manager at Intuits
Payments Solution Division where he led teams building merchant-focused self-service and CRM solutions. Before that
Gerry held various product management positions at Electronic Clearing House, CyberSource and Chase Paymentech. Gerry
graduated from Saint Anselm College.
2017:
The
Year
of
Social
Loyalty
Chris Teso
Founder and CEO
Chirpify
Weve all heard the impressive statistics about the reach of social media. Across
demographics and geographies, social media has significantly, if not completely,
penetrated our customer bases. Yet, many brands have up until now struggled
to do more than simply lift and shift their existing loyalty program to social
media. Adding to the challenge is that consumers increasingly understand that
social media gives them a megaphone with which to
influence the path to purchase -- and they want to
be rewarded for it. For a growing number of
leading brands, the compelling answer
to these two trends is social loyalty.
2017 t
he year lty
of social loya
there is greater value their favorite brands. Engaging with people over social media
through a social loyalty program does exactly this, effectively
in their time, attention, putting the utility of a social media remote control for loyalty
in the hands of customers.
and their social media
footprint, and expect to The traditional cornerstones of loyalty programs cannot
be rewarded accordingly continue to succeed much less thrive without social media
as an integral component. Indeed, social loyalty directly
for that. addresses critical, business-impacting trends that are here
to stay and in the process creates an important virtuous
Indeed, customers are eager to be rewarded for more than cycle of brand advocacy, customer acquisition, and lifetime
their purchases. Knowing the significant amplification that loyalty. Customers who have been looking for greater utility
social media provides, people expect a value exchange for in social media are now able to interact with the brand there,
sharing about your brand, endorsing your product or service, and brands can help channel that activity by reinforcing
or advocating on your behalf. those specific behaviors that benefit the brand. From greater
customer acquisition and conversion to enhanced advocacy
and greater loyalty, social loyalty allows brands to create
Where this collides with social media is incredibly powerful
an effective value exchange on social media. Given the
for both brands and customers. Indeed, social loyalty allows
momentum behind social media and its empowerment of the
brands to connect social IDs to the loyalty member database,
customer, its clear to see why 2017 will be coined the year of
which allows the brand to recognize consumers in social
social loyalty.
media, and reward them in real-time. For example, a brand
might recognize a loyal customer on Instagram and reward
them with 10 points in exchange for a positive post about their
new product. Most brands begin this exercise with an email
inviting their loyal customers to connect with them on social
media. In the process, brands learn which social
media channels their customers prefer.
Author Bio
Chris Teso is the founder and CEO of Chirpify, a company that enables brands to create a currency exchange
between social media and loyalty programs to drive member acquisition, engagement, and spend.
7 WAYS
to create a
seamless
experience
between mobile
and in-store
2 Make it fun.
Smartphones have opened many avenues for creative messaging. Mobile scratch-and-wins, dynamic video, and even a
simple happy birthday message are great ways to engage loyal fans.
5 Leverage Loyalty.
Loyalty programs are great tools for capturing data, but they can also provide a forum for marketers to connect store and
mobile experiences. A customer might sign up in store, but give them the option to receive notifications of points value,
expiring points or rewards earned via mobile message.
Before e-commerce, calculating the return on investment of Retail stores, despite what youve read, arent going to die.
a physical store was relatively straightforward it was based Their value is evolving to fit a different path to purchase. Some
on sales. But in the e-commerce world, the path to purchase online retailers are even moving into physical locations that
is harder to track. A shopper might try on a pair of pants in complement their e-commerce offerings. So dont believe that
the store, then buy them online. But when all channels are mobile is killing brick-and-mortar retail. Believe that mobile
working together, and you can see all the data in one place, represents yet another way to build a relationship with a
the physical store is a valuable part of the equation, lending customer in conjunction with in-store.
a certain credibility, and a host of brand messaging, that
influences and builds a relationship with shoppers.
Loyalty Management | WINTER 2017 27
BEST PRACTICES
If you are like many restaurants, you may be wondering However, depending on the
how you can harness the promise of big data to increase information collected, it is nothing
profitable traffic to your locations. Well, the truth is, big data more than a promotional file with
cogensia
can help build your business. You are sitting on a veritable gold limited ability to support targeted A C A C | G R O U P Company
mine of information that, when used properly, can increase or 1:1 communications from big
traffic, reduce your need to discount continually, and increase data. There is no way to see which of your e-club members are
the brand experience for your customers! actually dining in your restaurant, or who your big spenders
It can figure out which of your customers are really important, are. Therefore, there is no other way to communicate than
as well as who dines at lunch, who comes in with a family, generic, one-size-fits-all e-blasts.
who only comes in with a promotion, and many other things Unlocking the true potential of your e-club and other big
that could help your business. Lets see how this works. data sources employs the four levers for driving traffic:
If you are like most restaurants, you have an e-club used to demographics, dining behaviors, dayparts, and menu items.
send updates and promotions to their registered guests.
When you hear big data, think customer-centric ideas that can boost your sales.
One word of caution: outside expertise will bring you results much faster than trying
to do this on your own. Some companies, like Cogensia, have a platform that is easy
to use and executes on all of the above ideas. Our tools, experience, and dedication to
your success will bring you increased sales and traffic, personalized communications,
and accelerated execution.
Theres no reason why you cant start down your journey of bringing big data to life
in your organization to drive traffic and sales. My recommendation is to pick one of
the examples on the next page and start mapping out how you can execute that idea
in the next 30 days. Once youve started, you will see results and be on your way
building deeper customer relationships!
Promotion Coding
Many POS systems can support personal promotion codes tied Pure prospecting
to email offers. While there are technical details to manage,
Predictive modeling is available to use your customer data
the end point is that a promotion can be connected to an email
and find other consumers in the vast field of consumer data
address, so you know when a customer redeems in-location.
that best look like your customers. These models look at
This provides actual information about visits and engagement.
thousands of variables and identify the characteristics that
This doesnt tell you about their non-promotional visits, but
are most prominent in differentiating your customers from
you can certainly start more advanced behavioral promotions.
the overall universe of consumers. The models identify your
Things like a best customer night for those with 10 or more
BEST prospects for email, direct mail, and Facebook targeting.
visits (that can be tracked) increase the relevance of your
Response rates will be much lower than any communications
communications, and will drive traffic.
to your current customers. However, you should be able to do
better than break even, and this investment will lead to new
customers that can then be put into your customer
Behavioral Tracking contact database!
With a little more sophistication in integrating your POS data,
you can begin tying transactions together to a customer without
a promotion code. There is payment data available that is
consistent for an individual over time, and can be used to link Guest satisfaction
transactions together. This level of big data integration allows Could you imagine effectively contacting yesterdays
you to target preferred dayparts, menu items, party size, and customers today to see how they enjoyed their visit? If
types of food (apps, healthy, etc.). Weve seen this level of youve integrated your email and POS data, theres no reason
relevance drive 20% increases in visit frequency and traffic. why you cant automate the collection of a short survey to
know what is working well. In our experience, this will give
you more than 10x the number of responses than from the
bottom of your receipt. Since this is so much volume, you
Customers outside the e-club can get feedback on new menu items, restaurant re-designs,
Theres a benefit to marketing to your e-club; these customers and service levels in weeks, not months!
are your biggest fans. However, how do you market outside of
this limited pool? Well, the answer again lies in your POS data,
but not on its own. There are other big data sources (we have
one) that utilize personal information from your transactions
to provide name, address, and demographics. We typically are
able to add this information to about 35%-45% of transactions,
giving our clients an instant database of customers to market
to! About 30%-40% of the matched transactions may have
an email capability as well, which means you can significantly
expand your email marketing program to CUSTOMERS who
have visited your locations.
There is no doubt that Voice of the Customer (VoC) programs, when planned and implemented properly,
not only make a significant impact to an organizations bottom line, but also drive cultural change and
improve customer loyalty. Because of this, organizations are working harder than ever to gather and use
customer feedback across multiple touchpoints, channels, and geographies to track and drive business
improvements at a global level. Yet, global isnt the only focus businesses are simultaneously trying to
make this feedback work at a deeper level as well. By leveraging the insight gained, businesses can truly
understand how to retain active promoters of the business, minimize loss, increase loyalty, reduce the cost
of dissatisfaction, and improve business results overall.
There is an increasing need for customer data to be integrated with CRM, operational, and financial data. The
value will emerge when this data is presented to the executive team in a digestible dashboard, then sliced and
diced in a meaningful way. CX and loyalty will then become the heart of the business once customer metrics
are adopted as strategic KPIs alongside sales and profit targets.
Would our CX program be more successful if VoC specialists were better able
to translate and communicate the story (read strategy) to a wider audience?
Could we make a bigger effort to tell better stories that can be shared with the
widest possible audience the entire company and not just a select few, like
the CX team?
Its this ability to translate flat data into coaching and learning aides that ultimately makes a VoC program thrive. Understanding why CX is
important and how each individual can make a difference is what takes customer-centricity and loyalty from the drawing board to the real
world. Action management and operational reporting combined with effective storytelling can have a significant impact on NPS, NES, and
NSS scores, all of which can deliver increased revenue from a greater number of promoters and cost savings from a reduction in returns,
complaints, and refunds. The key is to focus on using data to tell meaningful stories that bring the multitude of charts and graphs to life.
*All trademarks are the property of their respective owners. Net Promoter, Net Promoter Score, and NPS are trademarks of Satmetrix, Inc., Bain & Company, Inc., and Fred Reichheld.
Our customer is very emotionally connected with our product. We provide them with an The ever-changing dynamics
emotional experience each time they read a Harlequin novel. Theyre very passionate about
their Harlequin books and we want to share their passion through the loyalty program.
of the digital landscape, both
The ever-changing dynamics of the digital landscape, both in the publishing realm and
in the publishing realm and
ecommerce realm, have made maintaining brand loyalty more challenging. What has ecommerce realm, have made
changed is that, in addition to buying books at retail stores, readers are also supplementing
their reading through ebooks and online purchasing. They have more choice now than ever maintaining brand loyalty
before as to where, when and how they like to buy books and read them. Having a loyalty
program helps us enhance the relationship we have with our consumers no matter where
more challenging.
she shops.
Lucy Scinocca
Director, Loyalty and Customer
Insight, North America, Retail
& Digital Marketing
Harlequin Books
Fiverr is unlike any other service-based company. Our community drives our brand. By listening to our customers, both buyers and sellers, were
able to create an experience that theyve asked for. I feel that keeps our unchanging promise in delivering a highly engaged and quality driven
marketplace for everyone to enjoy.
Ryan Bajnath,
Director of Customer Success
Fiverr
Megan West,
Director of Consumer Marketing
Seattle Sounders FC
I think the overarching reason that people are loyal to us is that we do have an incredibly strong brand. The Canadian Red Cross is well
over 100 years old. Its in the news and people recognize the symbol. People know that when a disaster happens anywhere in the world
the Red Cross will be there to help. Another thing that were certainly seeing, and its given us a big boost in the recent past, is that
weve actually been awarded a fundraising efficiency A+ grade by MoneySense magazine as well as a Four Star rating for transparency
and accountability by Charity Intelligence, which is a research group that rates charities. So at a time when charities are under a lot of
scrutiny by how they spend, we are proud to put those messages out, that we have been graded at the top of the class. It gives a lot of
credibility in our fundraising.
Andrew George,
National Stewardship Specialist
Canadian Red Cross
Why
the future
(and Loyalty)
belongs to
Millennials
Tom Koeppen
CMO
DataCo Solutions
In the 1970s, the Me Generation was a term that referred to the narcissism culture among baby boomers
(born between 1946 and 1964). In 2017, almost 50 years later, research and studies indicate that the Millennials
(the children of these baby boomers) are exhibiting some of the same behaviors as their parents. Some even
suggest the name, ME ME ME Generation. Because of the size of these two generations, roughly 160MM
combined, we decided to perform deeper research and analysis to answer two strategic questions:
Loyalty Both claim loyalty to roughly 70+% of the same brands, products,
and service providers according to a Media Post survey
Product Place
Production capacity will be critical due to the size of the market Fast becoming the most irrelevant of the 4 Ps due to connectivity
Increases in technological diversity will be embraced by both and distribution
Quality and satisfaction are paramount; deficiencies in either As the world shrinks, location may matter only from a brand
will be known quickly perspective; political, social, and environmental issues could affect
the consumer choice of where or how the product is manufactured
and delivered
Price
Increasing elasticity is required as research and social media drive Promotion
product choice These two generations are the most highly educated of any two
Less affluent Millennials and improved research will put generations in U.S. history. Also, they are the most reliant on family,
downward pressure on margin friends, and a social circle for their influence and social standing.
Inelastic pricing possible only through technological superiority Guidelines for advertising and promotion: genuine, conscience-
and flawless performance driven, and innovative.
The above answer was structured to highlight technology and personalization will reign supreme. Marketers must provide
One to One marketing. To do this, marketers need to combine big data capabilities with their strategy development and tactical
implementation. For example, embrace digitally enhanced video or personalized video delivered digitally via email. Marketers
should be marrying technology with big data analytics.
What about the impact these two generations have on the future
of loyalty? Projected population by generation
In millions
Our research and analysis found that differences between the two 90 81 Millennial
generations do exist, but they are slight. Millennials tend to favor the 75
70
genuine, sustainable, and communal attributes intrinsic to customer loyalty Gen X
65
programs. This may explain why, even with this distinction, Boomers and 50
66
Millennials share loyalty to the same brands at a rate of over 70%. Boomer
30
Given all of this similarity, why do we think the future and 28
Silent
10
loyalty belong to the millennial generation?
2015 2028 2036 2050
Quite simply, its a matter of size. As the graphic to the right illustrates,
Note: Millennials refers to the population ages 18 to 34 as of 2015
the next 50 years will be dominated by the Millennial generation. An Source: Pew Research Center tabulations of U.S. Census
understanding of the similarities and differences between the two Bureau population projections released December 2014 and
2015 population estimates
generations and using technology to reach them appropriately will be
PEW RESEARCH CENTER
critical to gaining and keeping their loyalty.
Consumer-
Controlled
Content
Summer Felix
Co-Founder
The Draw Shop, LLC
A few years ago whiteboard animation hit the mainstream. old law to marketing, and it goes something like this: even the
Companies everywhere began pumping out animations sharpest knife dulls with use.
to convert potential customers into long-time brand-loyal In common-sense terms, people are bombarded with a
proselytisers. A whole industry sprouted up, along with its million and one videos a day, and the lustre of web video has
top players and pretenders. But for every company, the goal thusly been diminished. Yes, whiteboard animations help
was no longer to engage the customer but to create brand companies stand out from the typical video crowd. But with
evangelists. People wanted lean-forward engagementthe this trend gaining popularity, how long will whiteboard stay
kind that drives people to share. And whiteboard delivered. the frontrunner for driving qualified leads? And, arguably more
Still does. importantly, what will be the answer to whiteboard animations
But as more and more marketers begin wielding this magical in 2017?
web weapon, the less magical it will get. See, theres an age-
The answer: interactive whiteboard animation, or IWA
Simply getting a customer to notice you exist is no longer the object of the game. Getting customers to lean forward is a great
start, but interacting and engaging with hyper-personalized media made to convert them is the next frontier.
Interactive marketing is poised to, as Forrest Research analyst Forrester Mullen suggests, Move beyond Awareness, and into
developing richer experiences across display, select publishers, and on your own sites.
Of course, it is always more difficult to be the leader in these technology advances than a follower. But those who make the leap
to IWA sooner rather than laterwhether it be for advertising, training, or any environment where consumer data is valued to
foster brand advocateswill have a head-start on the competition.
1 http://www.adweek.com/socialtimes/interactive-video/625901
2 http://www.sparkol.com/engage/how-scribe-videos-increase-your-students-learning-by-15
3 http://www.cyberalert.com/blog/interactive-video-the-next-big-marketing-trend
Attract with
90%
Play Rate.
50% Increase
Custom Visuals in Open Rate
Use email campaigns to pass in user data directly into video. Be sure to include personalized
elements in the poster image as well as within the first few frames of the video. Use APIs
to leverage CRM, LMS, and MAP software to manage returning viewers and known users.
Remembering a users preferences as well as where they left off is further incentive for the
viewer to continue along the buyers journey.
Engage with
93%
Engagement
Rate
Adaptive Paths
Chapters are an easy way to add engagement to existing videos. Giving the viewer the ability to
quickly navigate to the content that is most relevant and important to them creates ownership
and engagement. Creating a choose-your-own-adventure or branching style video requires a
little extra planning in the video production process, but will provide rich insight into the viewers
behavior, interests, and ultimately provides custom paths to specific call to actions.
Connect known user information with choices and viewing data to present the right CTA to the
right person at the right time increases click-through and conversion rates. Give viewers the
option to purchase early on in the video. Couple the CTA with an option to dive deeper, or get
more information. This gives the ready-to-buy users a quick and easy way to make a purchase,
ultimately achieving your business goals, without having to wait for the end of the video.
Ask for feedback. Add questions in your videos and turn a passive viewing experience into a
valuable insight conversation. Create brand loyalty and empower your viewers. Live Chat. An
interactive video works just like the rest of the web. Find areas of the video with high dropoff
rates and add a live chat widget to provide real time support and continue the viewer on the
buyer journey.
Driving Shopper
Engagement through
Digital Technology
Sue Yasav
Vice President, Thought Leadership and Market Insights
Synchrony Financial
In this preview of its sixth annual Digital Study1, Synchrony Financial sees a dramatic rise in digital shopping,
with almost 70% of the U.S. population taking part. Over the past year, it has also seen increases in the usage of
digital and social tools in almost every shopping category. For the full report, visit synchronyfinancial.com.
1
Source: 2016 Synchrony Financial Digital Study. May/June 2016.
*Millennials: Ages 18 - 34, Gen X: Ages 35 - 49, Baby Boomers: Ages 50 - 64,
Silent: Ages 65+
While 61% of consumers report that they have tried mobile wallets,
only 9% indicate they are likely to use them in the coming year.
More than half of shoppers say mobile offers Social media drives shopping behavior
would drive behavior
The impact of social media on purchasing behavior cant be ignored.
Consumers are becoming much more open to retailers using
About 50% of the U.S. population now state they have purchased
texts and location-based offers to communicate discounts
a product as a result of social media. This is a substantial increase
and promotions.
over last year, when the percentage was only one-third.
Jonathan Price
CEO
Virtual Incentives
Rewards and incentives are the quintessential way for brands to create moments
that have a real impact on their target audiences. This type of touch point with a
consumer can be a specific, magnetic moment in time to stand out from all the
noise and clutter people deal with on a daily basis. But, to understand how rewards
and incentives can truly be the ultimate engagement tool, we have to understand
consumer preferences surrounding them.
Author Bio
Jonathan Price is a pioneer in the incentive and reward industry, and has led Virtual Incentives to develop an industry-leading
incentive platform that enables businesses to reward in a way that is simple, cost-effective, secure, reliable, green and, most
importantly, instant. @JPrice_CEO https://www.linkedin.com/in/jonathanmarcprice
Featured Products,
Advancements &
Technology
Technologies
Social media, once a way to simply stay in touch with friends A successful business isnt built all at once; rather, its an
and family, has evolved over the course of several years into iterative process based on objectives, market dynamics,
a nearly omnipresent network of dialogue and interaction and, perhaps most importantly, feedback data from
not only between individuals, but between brand and customers and employees alike. While leveraging this
consumer. Chirpify saw an opportunity to leverage this feedback may seem easy on paper, any marketer will note
connectivity to promote customer engagement and loyalty, that this sentiment could not be further from the truth. To
and has seized the chance to create a unique position in the tackle the huge challenge of aggregating, analyzing, and
loyalty market. leveraging this data, Confirmit has developed robust Voice
of the Customer (VoC) and Voice of the Employee (VoE)
The platform monitors social engagement for client brands, platforms for its clients.
and rewards this engagement with rewards that had
previously been exclusively linked to transactional Because VoC data can vary significantly across industries,
engagement. Through the alignment of loyalty and social Confirmit has designed its platform with flexibility in mind,
media data siloes, Chirpify allows brands to monitor social allowing for data collection across verticals including retail,
engagement and, consequently, reward actions like using insurance, software, electronics, and media, just to name a
hashtags, sharing photos, and even tagging friends. The few. Because of the sheer volume and evolving nature of
value of social media engagement is difficult to overstate, feedback channels like social media, Confirmit allows clients
and the Chirpify platform provides the ability to recognize, to combine feedback streams in order to streamline the data
reward, and promote these activities automatically. and avoid analysis paralysis caused by an overflow of
information. Additionally, the company leverages its
With customizable triggers like geofencing and social GeniusTM Social and Text analytics tools to provide the
media influence, Chirpify provides powerful tools able to framework necessary to turn unstructured data into
tailor recognition in a way that rewards customers with actionable insight. Confirmits VoC and VoE tools are
benefits that correlate to the value of the engagement. By invaluable resources to companies looking to capture
leveraging these power social media monitoring customer sentiment in a form that is both powerful and
technologies, brands can bring loyalty out of purely easy to act upon.
transactional engagement, and promote social
media engagement as a means to create
loyalty and spread a brand
message through the most
important channel of all:
social influencers.
Loyalty360 is the unbiased, objective, and market-driven association for customer loyalty,
which seeks to enable and encourage dialogue among industry leaders. From our introductory
individual memberships to our top premium tier, our members are provided with the exposure,
certification, and exclusive content they need to continue their path to true customer centricity.
Loyalty360 memberships offer unique benefits to both brands and suppliers including access
to exclusive content, content promotion, networking opportunities, and more.