VOLUME 41 NUMBER 28 | FEBRUARY ISSUE 2024

Food Lion’s “Count On Me”

Company Culture:
Essential for Excellence
IN THIS ISSUE

BRAND FOCUS TECH TALKS: 2024 TRENDS TECHNOLOGY & TRENDS

• Food Lion •Talon.One on Taking an Iterative Approach in • Adding Gamification to Customer Loyalty
• Bojangles Customer Loyalty Programs: Experts Offer Advice for Brands
• Fubo • Phaedon on Listening to Customers and • Building Proprietary Loyalty Systems In-house:
• Hooters Improving Loyalty Programs Technology Experts Weigh In
• Subway • Brierley on Leveraging AI in Customer Loyalty
• 1-800-FLOWERS.COM, Inc
 In This Issue
FEBRUARY 2024 | VOLUME 41 NUMBER 28 | LOYALTY360.ORG

BRAND FOCUS

14 22 34
FOOD LION BOJANGLES FUBO
Keeping Customer Shaping the Customer Building Brand Love by
Loyalty and the Experience with the Right Rewarding Consumers and
Customer Experience Technology and a Dash of Investors
at the Forefront Southern Hospitality

46
HOOTERS
Customer Engagement,
Brand Partnerships, and
the Role of Today’s CMO
52 56
SUBWAY 1-800-FLOWERS.COM,
A Simplified Customer INC.
Loyalty Program Provides a Helping Customers Build
Better Customer Experience Meaningful Relationships
Builds Better Customer Loyalty

TECHNOLOGY & TRENDS

26 ADDING GAMIFICATION TO CUSTOMER LOYALTY PROGRAMS:
EXPERTS OFFER ADVICE FOR BRANDS
Brierley, CataBoom, Group FiO, Talon.One

38 BUILDING PROPRIETARY LOYALTY SYSTEMS IN-HOUSE:

TECHNOLOGY EXPERTS WEIGH IN
Baesman, Capillary Technologies, Lacek Loyalty Management Editorial Team
Mark Johnson - CEO and CMO
Carly Stemmer Ivory - VP, Research Analyst
BEST PRACTICES Elizabeth Shular - Senior Designer
Tracy Brown-Simmons - Content Creator, Staff Writer

60 FROM FIRST PURCHASE TO BRAND AMBASSADOR: BRYAN’S JOURNEY

Contacts
WITH BLUE RIDGE CAMPING GOODS
Article Submissions & Advertising:
Clutch
Loyalty360

TECH TALKS
info@loyalty360.org
513-800-0360

18 2024 TRENDS: TALON.ONE ON TAKING AN ITERATIVE APPROACH IN © 2023 Loyalty360, Inc. and/or its affiliates.
All Rights Reserved.
CUSTOMER LOYALTY
Talon.One Reproduction and distribution of this publication in any
form without prior written permission is forbidden. The
information contained herein has been obtained from
30 2024 TRENDS: PHAEDON ON LISTENING TO CUSTOMERS AND IMPROVING sources believed to be reliable. Loyalty360 disclaims all
LOYALTY PROGRAMS warranties as to the accuracy, completeness, or adequacy
of such information. The opinions shared are those of
Phaedon
the contributing authors and not necessarily reflective
of Loyalty360 and/or its affiliates. Loyalty360 shall have
42 2024 TRENDS: BRIERLEY ON LEVERAGING AI IN CUSTOMER LOYALTY no liability for errors, omissions, or inadequacies in the
information contained herein or for interpretations thereof.
AND PRIORITIZING DIFFERENTIATED MEMBER EXPERIENCES The opinions expressed herein are subject to change
Brierley - Capillary without notice.

2 Loyalty Management™ | February 2024 | loyalty360.org Loyalty Management™ | February 2024 | loyalty360.org 3
 LOYALTY360 TEAM
LOYALTY360
The Association Focused on Customer Loyalty Is Here for You
Loyalty360 is the association for customer loyalty. We bring
together the best loyalty-focused professionals from the biggest
brands and technology and service suppliers under one roof.
Through Loyalty360, these professionals find invaluable
resources, networking opportunities, and guidance provided by
internal thought leaders and brands/suppliers on the cutting
edge of customer loyalty.
Our members are provided with the network and resources
they need to continue their path to true customer centricity.
Our membership options are focused on brand/marketers and
suppliers — and are tailored to meet the specific needs of each.
As an association, our goal is to arm our members with the
insights, network, and resources to advance their careers, build
stronger brands, and deepen relationships with their customers.
We are here for our members and their brands as we work to
transform the entire customer loyalty industry.
OUR MISSION
Our mission at Loyalty360, the association for customer loyalty,
is to bring together professionals focused on all facets of the
customer journey from initial engagement, through to brand
loyalty. The association enhances the respective program efforts
of our members and facilitates a deeper understanding of the
customer via actionable best practices from peers who share a
unique passion for and intellectual appetite around customer,
channel, and brand loyalty.
OUR VISION
Through Loyalty360 member-only initiatives, programs, and
community-driven insights, professionals in the customer
loyalty community will find invaluable resources and networking
opportunities aimed to help them and their peers across a variety
of industries. Brought together by Loyalty360, a community of
thought leaders, brands, and supplier partners, come together
to address pertinent challenges while deepening expertise and
learning to make loyalty programs and processes more effective.
OUR BRAND COMMUNITY
Loyalty360 brand-only meetings allow members to actively
engage in a trusted, peer-focused community. Brands can voice,
in confidence, challenges and opportunities on their respective
customer loyalty efforts, and via the community, derive insight
needed to make their programs more effective, their jobs more
rewarding, and deepen their industry knowledge.
4 Loyalty Management™ | February 2024 | loyalty360.org
Exclusive Brand Insight
for Members Only
As the association for customer loyalty,
Loyalty360 speaks with top brands on
a daily basis regarding the challenges,
opportunities, and trends they are seeing
in this constantly evolving market.
OUR ADVISORY BOARD AND WORKING GROUPS We invite you to join Loyalty360
Loyalty360’s Advisory Board and Working Groups meet and become part of one of the fastest
regularly to exchange ideas and address current and future growing communities in the space.
trends affecting customer loyalty. Together, members navigate
the uncertainty now inherent with the growing complexity Access exclusive insights, member-only
in technology, strategy, and regulations. The community and discussions, and the opportunity to
industry thus work in unison to elevate their brand performance learn from brands that continue to
and their program performance. Advisory Board and Working
Group members work to: blaze a trail in the customer experience
arena. With 300+ members on
• Determine relevant and needed research topics, both the brand and supplier side,
data points, benchmarks, and standards for the industry.
what are you waiting for?
• Provide a member-driven forum for feedback on current or
potential solution providers, understand industry trends,
and provide insight for those running programs to elevate Contact us for Loyalty360
their offerings. membership opportunities today!
• Suggest opportunities for community improvement, and
discuss potential partnerships and growth opportunities
within the community.
• Play an integral role in planning topics, recommending
and vetting speakers, and suggesting enhancements for
Loyalty360 conferences and virtual events.
PARTNERING WITH OUR VENDOR MEMBERS
Our vendor members receive valuable access to our analysts
who have a wealth of experience with evaluating and guiding
providers. We partner with vendor members, providing
extensive opportunities to build their presence through
publication of thought leadership content to our member-only
content sections on Loyalty360.org, in our daily email
newsletter, and via advertising and promotions on social media.
Partners are also featured in our digital magazine, through
podcasts, and in video interviews addressing the biggest
challenges marketers face today.
For more information on Loyalty360 membership, visit loyalty360.org/join
or contact Mark Johnson at MarkJohnson@Loyalty360.org.
513.800.0360 | loyalty360.org | @loyalty360
Loyalty Management™ | February 2024 | loyalty360.org 5
 LOYALTY360 TEAM
A Focus on Customer Loyalty Excellence:
Opportunities for 2024
As brand marketers and loyalty industry professionals seek to
understand and leverage customer loyalty opportunities offered in
the new year, the Loyalty360 staff is excited to publish the first issue
of Loyalty Management Magazine of 2024. Now a quarterly digital
publication, Loyalty Management Magazine is packed with articles
and advice from experienced brand marketers and leaders. You will
also find crucial insights from technology vendors and consultants who
partner with some of today’s top brands.
First, I want to highlight our call for entries for the 2024 Loyalty360
Awards (page 8). Brands from any industry are welcome to submit
their entries through the online portal until March 28, 2024. Finalists
and winners will be recognized at Loyalty360’s Loyalty Expo
in Orlando, FL, June 4-6, 2024.
The roster of marketing and loyalty professionals in this issue is
impressive. You’ll learn from Neil Norman, Director of Loyalty & CPG
Marketing Partnerships at Food Lion; Sergio Perez, Sr. Director of
Omnichannel Initiatives at Bojangles; Alison Sternberg, SVP, Investor
Relations at Fubo; Bruce Skala, Chief Marketing Officer at HOA Brands;
Mike Kappitt, Chief Operating and Insights Officer at Subway; and
Jason John, Chief Marketing Officer at 1-800-FLOWERS.COM, Inc.
These in-depth exclusives cover topics ranging from keeping efforts
focused on the customer experience to driving personalization and
cultivating brand love to the expanding role of today’s CMO and so
much more.
Founded in 1957 in Salisbury, NC, retail grocer Food Lion has spent
over six decades delivering fresh and affordable products to its
customers. With over 82,000 Food Lion associates serving more than
10M customers each week, the brand’s 1,100+ store locations span
a 10-state operating footprint. Food Lion’s Neil Norman (page 14)
discusses the brand’s dynamic MVP Program and its “Count On Me”
culture.
Bojangles is a Carolina-born restaurant brand specializing in Southern
food. Founded in 1977, Bojangles now operates over 800 restaurants
in the Southeast, and the brand is poised to begin an aggressive
expansion across Florida, Texas, Nevada, and Ohio. Bojangles’ Sergio
Perez (page 22) shares more about the loyalty strategy behind the
Bojangles Reward program and forming partnerships that leverage
customer affinity.
Originally established in 2015 to provide soccer fans with a way to
stream matches, Fubo is now a direct-to-consumer live TV streaming
service enjoyed by 1.48M paid subscribers in North America. Fubo’s
Alison Sternberg (page 34) explains the value of rewarding platform
users and investors and describes the Share Perks program created
through a partnership with TiiCKER.  
6 Loyalty Management™ | February 2024 | loyalty360.org
Benefits and risks are discussed in Building Proprietary Loyalty Systems
In-house (page 38). With the overwhelming number of technologies Exclusive Brand Insight,
supporting customer loyalty available, brands can struggle with
whether to partner with an outside company or direct in-house
resources to provide solutions. Leaders in this article share what
for Members Only
they have learned when working with brands and offer ideas such as
developing a hybrid model or leveraging external partnerships. As the association for customer loyalty, Loyalty360
speaks with top brands to address the challenges,
Mark Johnson This edition of Loyalty Management Magazine is packed with opportunities, and trends of a constantly evolving market.
observations and advice from top customer loyalty professionals. Our goal is to pass this insight along to members and
CEO & CMO
Digest what you read in these digital pages and be prepared to to bring companies together to build authentic loyalty
markjohnson@Loyalty360.org take new ideas and considerations back to your teams. Get ready predicated on reciprocal benefit.
to elevate the customer experience your brand provides program
members by committing to authenticity and tapping into the right We invite you to join Loyalty360 for access to exclusive
technologies. The success of your customer loyalty efforts depends insights, member-only discussions, and the opportunity
on it. to learn from a host of brands. For more information on
Loyalty360 membership, visit loyalty360.org or contact
Founded in 1983 in Clearwater, FL, Hooters has become a Loyalty360 would like to hear from you! What successes are you Mark Johnson at markjohnson@loyalty360.org.
globally iconic, image-based, casual dining restaurant brand planning for in 2024, and what challenges do you anticipate? Let’s
with nearly 370 stores — including domestic and international start the dialogue and broaden the view to consider all that this new
franchisees. Hooters’ Bruce Skala (page 46) discusses building year can bring. Reach out to us. How can we help you with your 513.800.0360 | loyalty360.org | @loyalty360
successful partnerships with sports figures, the value of forming customer loyalty efforts? We are waiting to hear from you.
unique NILs, and leveraging social media influencers to drive
sales.   To your success in 2024!
Sandwich giant Subway — with locations in over 100 countries Mark
— counts more than 37,000 quick service restaurants and a
franchisee network of over 20,000 entrepreneurs and business
owners. Subway’s Mike Kappitt (page 52) offers his thoughts
on developing the brand’s new MVP Rewards program and
leveraging partnerships.  
1-800-FLOWERS.COM, Inc. offers products through more
than a dozen brands encompassing gourmet food, personalized
products, and, of course, bouquets of flowers. 1-800-FLOWERS.
COM, Inc.’s Jason John (page 56) shares his perspective on how
communications can reflect enterprise values at the brand level
and how the company’s focus on helping customers build better
relationships fosters increased loyalty.
Loyalty360 conducts interviews with supplier members in our
popular Loyalty Live series. In this issue, you’ll learn more about
predicted 2024 trends in customer loyalty from member experts
and find topics covering everything from using data to form long-
term goals when developing AI strategies to measuring success
while keeping a sharp eye on point liability to what generative AI
means for brands.
Diving deeper into subjects focused on gamification and
developing technologies in-house, professionals from seven
technology and consulting agencies shared their perspectives
with Loyalty360. In Adding Gamification to Customer Loyalty
Programs (page 26), brands and marketing teams interested
in adding gamification to programs while maintaining brand
integrity will learn more about elevating the customer experience
and triggering engagement through gamification options.
Loyalty Management™ | February 2024 | loyalty360.org 7
 LOYALTY360 TEAM

Loyalty360 Announces Call for Entries for the

2024 Loyalty360 Awards

This year’s call for entries is open until March 28, 2024, with
finalists and winners recognized at Loyalty360’s Loyalty Expo in
Orlando, FL, June 4-6, 2024.

Loyalty360, the association for customer loyalty, has announced the

call for entries for the Loyalty360 Awards is officially open. With an
emphasis on objectivity, the Loyalty360 Awards recognize brands
of any industry that build lasting and profitable relationships with
customers. Any brand with a customer loyalty strategy, initiative, or
program is eligible to enter. The call for entries runs until March 28,
2024. All submissions must be through Loyalty360’s online entry
portal.

Submission guidelines include:

• Any brand with a customer loyalty strategy, initiative, or program is

eligible to enter
• Brands may submit themselves, or supplier partners may submit on
behalf of their clients
• Brands are encouraged to submit for multiple categories, and
vendors/partners may submit numerous clients for the Loyalty360
Awards
Categories for this year’s Loyalty360 Awards include:
• B2B Customer Loyalty
• Brand-to-Brand Program Partnerships
• Corporate Social Responsibility and Loyalty
• Creative Campaign and Communications
• Customer Analytics, Insights, and Metrics
• Customer Experience Strategy
• Customer Loyalty Innovation and Transformation
• Customer Loyalty Strategy
• Employee Engagement and Impact
• Loyalty Program Design
• Offer, Incentive, and Reward Design
• Technology and Trends
• Champions of Customer Loyalty
• Emerging Loyalty Leaders
In addition to the categories mentioned above, Loyalty360’s
comprehensive overall award — the 360-Degree Brand Award —
recognizes brands for overall excellence in all facets of customer
experience and loyalty. To qualify for this award, brands must enter
three or more of the categories and be named a finalist in at least one.
In addition to the 360-Degree Brand Award, Loyalty360 will also
recognize the solution providers whose clients have the best combined
performance across all categories.
Loyalty360 will name finalists in April, and finalists will
participate in a second judging round at the 2024 Loyalty Expo
in Orlando, Florida, in June. As a part of the event, all conference
attendees can vote for Platinum, Gold, Silver, Bronze, and
Honorable Mention winners after the finalists’ presentations.
Award winners and final placements will be announced in a
ceremony during the conference.
“We’re pleased to announce the call for entries for our 2024
Loyalty360 Awards,” said Carly Stemmer Ivory, VP, Research
Analyst, Loyalty360. “From their internal commitment to the
qualitative and quantitative metrics supporting their efforts,
Loyalty360 Award finalists and winners continually prove they
are in the vanguard of customer loyalty and experience — and
we’re looking forward to another great year of submissions.”
Benefits for Loyalty360 Award finalists and winners include
industry and peer recognition as well as brand coverage by
Loyalty360 — a feature article and video in Loyalty Management
magazine, official Loyalty360 Award winner logo usage rights,
trophies, and more. Conference attendees can take advantage
of numerous networking opportunities and have the chance to
learn from some of the best marketing and loyalty professionals
in the industry.
Last year’s Loyalty360 Award winners include leading brands
dedicated to customer loyalty and customer experience,
including 7-Eleven, Bank of America, Blue Buffalo, Certified
Angus Beef, Giant Food, LEGO, Scene+, Signia (Aspire), TELUS,
Tim Hortons, Wawa, and more.

There is a two-part judging process for the 2024 Loyalty360 Awards, To start your submission or learn more about the 2024
which makes these awards unique and truly objective. Initially, all Loyalty360 Awards, visit Loyalty360.org or contact Loyalty360
entries will be anonymously reviewed by a judging panel comprised of at carlystemmer@loyalty360.org.
Loyalty360 committee members.

8 Loyalty Management™ | February 2024 | loyalty360.org Loyalty Management™ | February 2024 | loyalty360.org 9
 LOYALTY FORUM: FEATURED TECHNOLOGY
Featured Products,
Advancements &
Technology
Technologies
& Services
Clutch, a technology-first customer loyalty and marketing solution
provider, embraces the notion that no single solution or program model
will be a best fit for every brand or a perfect fit for each customer. Instead,
with an informed and data-driven approach, brands can better
understand their top customers on an individual level and tailor their
programs, strategies, offers, campaigns, and rewards to create stronger
and meaningful connections with their consumers.
Founded in 2013, Clutch’s technology set was initially deployed as a
platform to aggregate customer data. In the years since the company
has heavily invested in and expanded its product suite to offer clients
more than a CDP but a complete customer loyalty solution. Today, Clutch
powers marketing, customer loyalty, and customer experience strategies
for brands of various sizes and industries, including traditional enterprise
loyalty and rewards programs, as well as specific use cases for gift cards,
solutions for franchisees, small to mid-market clients, and more.
Clutch’s technology helps its brand clients meet and exceed consumer
expectations by identifying, understanding, and motivating consumers
through a set of data-driven, integrated solutions. With a customer data
platform (CDP) as the core component of the Clutch Platform, clients
have access to all of their customer data in one central location, allowing
for a 360-degree view of individual consumers, segments, and overall
customer insights, which are continually updated in real-time.
Additionally, with the platform’s built-in marketing capabilities and
dedicated modules, clients can access a complete toolset to drive and
optimize consumer behavior, resulting in positive customer experiences
and long-term customer loyalty.
Read more about Clutch in the complete analyst brief here.
What are Loyalty360 Analyst Reports?
Analyst Reports help brands narrow down to core competencies,
strengths, and industry expertise. If you are a vendor or provider
interested in learning how Loyalty360’s Analyst Reports can help you
reach new prospective clients, please contact Mark Johnson at
markjohnson@loyalty360.org
To view Analyst Reports please visit: loyalty360.org/resources/analyst-
reports
10 Loyalty Management™ | February
May 20222024
| loyalty360.org
| loyalty360.org
With 25+ years of industry experience, Comarch is a technology-driven
customer loyalty platform provider and strategic partner for its clients
across various verticals, from retail to fuel, travel, and more. The
Comarch team includes over 600 individuals in loyalty-focused roles,
2024
including platform integration, development, enhancement, and loyalty
strategy design.
Comarch’s core company focus is its technology, ensuring its platform is
marketer-friendly and can be managed day-to-day by internal marketing
teams. However, no partnership is complete without support and
services. With any client engagement, Comarch offers packages for
“pre-go-live” and “post-go-live” services and technical support to
ensure integrations, campaign planning, configurations, and employee June 4-6, 2024
training are all completed to fit the client’s needs.
Embassy Suites by Hilton Orlando
Lake Buena Vista South
Comarch’s corporate headquarters is in Cracow, Poland, with offices
spread globally, including the United States, UK, Germany, France, Italy,
UAE, Thailand, and Australia. Typically, best-fit clients are enterprise to
mid-size brands within the retail, travel & hospitality, fuel, banking/
finance, and insurance verticals. However, Comarch’s platform can scale
to meet the needs of brands of varying sizes across industries.
Read more about Comarch on their Loyalty360 member page here.
As a partner for brands in search of customer loyalty, experience, and
engagement solutions, Marigold enables brands to build and cultivate
relationships throughout the customer lifecycle, helping marketers
manage data, connect with their audiences, gain valuable audience
insights, and reward behavior beyond mere transactions.
A new name to the customer loyalty world, Marigold is comprised of a
family of brands with decades of combined collective industry
experience. Marigold emerged from the successful merger of Cheetah
Digital and CM Group in 2022, bringing together the power of Cheetah
Digital’s customer loyalty and experience technologies, with the
marketing technology companies under CM Group, which included
Campaign Monitor, Emma, Vuture, Sailthru, and Selligent. Now known
as Marigold, the companies have come together to offer a Past Attendees Include:
comprehensive suite of customer loyalty, marketing, email solutions, and
services unified under one distinctive brand.
To complement its technology solutions, Marigold provides a wide range
of services supported by dedicated teams, including customer success,
technical services, creative and design, and program strategy. This
comprehensive approach establishes Marigold as a true partner to its
clients, dedicated to enhancing their loyalty efforts.
Read more about Marigold in the complete Loyalty360 Analyst Brief
here.
Loyalty Management™ | February 2024 | loyalty360.org 11
 INDUSTRY NEWS
Real-world Hilton Honors
Points and Benefits Earned
through Loyalty Campaign
Launched on Roblox
Paris Hilton and Hilton Honors have teamed up to offer Roblox users
visiting Paris’ Slivingland a new way to earn loyalty points and benefits
by completing challenges in the virtual world. Building off a 2023 Hilton
“It Matters Where You Stay” ad campaign featuring Paris in a TV spot,
the new initiative reflects the original commercial with Roblox avatars
filling in for Paris and other actors.
“We are always looking for meaningful ways to engage our Hilton
Honors members and connect with new travelers. There’s no better
advocate and champion of the Hilton Stay than Paris Hilton. Paris has
been an amazing partner — connecting her family’s legacy with her
love of travel to inspire the fan community she has built over the years,”
says Mark Weinstein, Chief Marketing Officer, Hilton.
Slivingsland, Paris’ virtual Entertainment Hub, was developed by
11:11 Media, a company she co-founded. The content presented in
Slivingland includes music, podcasts, programs, movies, and brands
partnering with Paris.
“I want my fans in the metaverse to have unforgettable and rewarding
experiences. I’m so excited to bring them this first-of-its-kind
collaboration with Hilton that lets them stay — and slay — like me,
both in our virtual world and at amazing hotels and resorts around
the world. Getting actual Hilton Honors loyalty points for playing in
Roblox? That’s iconic,” adds Paris.
Kroger’s New Goal Aims To Protect Pollinators
Protecting pollinators and supporting biodiversity are part of Kroger’s
latest efforts to create a more sustainable world. The newest initiative
impacts the grocery retailer’s fresh produce supply chain, requiring
medium- to large-scale growers to use Integrated Pest Management
(IPM) practices by the end of 2028, while smaller growers must meet
the same requirements by 2030. Using fewer pesticides can improve
pollinator health. Kroger has partnered with the Sustainable Food
Group, a branch of IPM of North America, to establish the goal and
Suppliers can demonstrate compliance by earning at least one
determine the necessary steps to reach compliance.
of 12 certifications ranging from Certified Sustainably Grown to
Sustainable Food Group Sustainability Standard. Kroger continues
“We depend on a healthy and resilient agriculture supply chain to keep
to work toward protecting biodiversity under its community impact
bringing fresh, affordable food to more of America. This new goal
strategy, Thriving Together.
reflects Kroger’s evolving approach to sustainability and resource
conservation, including setting clear expectations with growers to
Learn more about Thriving Together in Kroger’s 2023 Environmental,
support the transition to more sustainable fresh food production,” says
Social & Governance report.
Lisa Zwack, head of sustainability for Kroger.
12 Loyalty Management™ | February 2024 | loyalty360.org
A Meaningful Rewards
Program Launched by the
American Red Cross
Victoria’s Secret Teams Up with
Google Cloud
Victoria’s Secret is leveraging AI to deliver more inclusive and
personalized interactions to its customers, providing an in-store
Visitors to Slivingland on Roblox can enter for a chance to win
experience online. By partnering with Google Cloud, the brand seeks
Hilton Honors points:
to enhance online shopping for Victoria’s Secret and Victoria’s Secret
PINK customers.
• 111 winners will receive 111,111 Hilton Honors Points
• 11 of those winners will be elevated to Diamond Tier in
The team at Victoria’s Secret has developed a multi-year plan to
Hilton’s customer loyalty program for a year
study AI options and observe how the technology will drive a better
customer experience for the online shopper, which includes:
Roblox users interacting in Slivingland will also have a chance to
receive digital wearables provided by Hilton Honors and Paris.
1. Using a generative AI virtual assistant (chatbot) to support
Hilton Honors Harajuku Antlers will be included in the digital
customer conversations The American Red Cross recently reported a severe blood
collection. Other exclusive perks are planned.
2. Expanding product discovery to make it better shortage, followed by the launch of its new Blood Donor Rewards
3. Improving product search program. The vital charitable organization providing lifesaving
“In 2024, we expect to see many top brands on Roblox tie
4. Measuring customer sentiment blood, platelets, and plasma seeks to encourage donations while
their activations to the physical world in some way — be it via
5. Optimizing response to product demand through forecasting and offering thanks in the form of perks.
loyalty program tie-ins or twinning fashion items inspired by
enhancing associate training programs
Roblox collaborations or real-world commerce once it becomes
The points-based program allows rewards participants to earn
available. The consumer demand across physical and digital
“We look forward to exploring more ways we can partner with Google at least 100 points each time they donate blood, up to six times
is clear, and brands are smart to tap into it on Roblox, where
Cloud to use the latest technologies to make shopping even more during a 365-day period. The American Red Cross has developed
over 70 million people connect and communicate daily, nearly
intuitive, seamless, and welcoming for all,” says Chris Rupp, Chief a formula to help determine the total amount of points earned
half of them GenZ,” finishes Stephanie Latham, VP of Global
Customer Officer, Victoria’s Secret. during an individual’s donation:
Partnerships at Roblox.
Learn more about Google Cloud solutions here: https://cloud.google. Total Points Earned for Each Donation =
Video: Stay like Paris Hilton on Roblox and earn Hilton Honors
com/solutions/ Base Points + Procedure Bonus + Blood Type Bonus + Need
Points in Slivingland:
Based Bonus
https://youtu.be/lQEUYPyw_4c?si=f3_CLACuvwuDak3k
(terms and conditions apply)
CiCLO® Technology Threaded through Procedure Bonuses can include an additional 100 points for
Power Red, Platelets, or AB Elite Plasma. Blood types, such as
McDonald’s New Sustainable Crew Type O whole blood, might also earn donors additional points.
Uniforms Program participants who earn enough points can redeem
up to 10 e-gift cards from a selection of merchants during the
year. Alternatively, they can save up to redeem points for one
As part of its commitment to sustainability
American Red Cross merchandise item after the organization’s
goals, McDonald’s is investing in new
store opens in early 2025. Points do expire, and to redeem them,
uniforms made with CiCLO technology for
individuals must have a RedCrossBlood.org account or a Blood
its team members. Fast-food restaurants
Donor App profile.
typically choose polyester uniforms as
they are often more durable and launder
In a separate initiative, the non-profit organization partnered
well. However, polyester “sheds” plastic
with the NFL to encourage blood donations in January, featuring
microfibers during the fabric’s creation
a giveaway for a chance to win a trip for two to Super Bowl LVIII.
and also when washed. CiCLO technology is used to help synthetic
materials — like polyester — biodegrade at rates more in line with
Learn more about Blood Donor Rewards here: https://www.
natural fibers. The textile ingredient from CiCLO is added alongside
redcrossblood.org/donate-blood/blood-donor-rewards.html
traditional polyester and is “activated” when the uniform is exposed
to microbes and water. All U.S. McDonald’s restaurants have access to
the new fabric for the brand’s classic denim uniforms.
Learn more about McDonald’s efforts here:
https://corporate.mcdonalds.com/corpmcd/our-purpose-and-impact/
our-planet/packaging-toys-and-waste.html
Loyalty Management™ | February 2024 | loyalty360.org 13
BRAND FOCUS
Food Lion: Keeping Click here to listen to our
Customer Loyalty
interview with Neil Norman,
Food Lion
and the Customer
Experience at the
Forefront
By Mark Johnson, Loyalty360
Founded in 1957 in Salisbury, N.C., Food Lion has spent over six
decades delivering fresh and affordable products to its customers.
With over 82,000 Food Lion associates serving more than 10M
customers each week, the brand’s 1,108 store locations span a
10-state operating footprint in the Southeast and Mid-Atlantic
regions of the U.S.
A part of the Ahold Delhaize USA family of brands and supported
by partners at Peapod Digital Labs, Food Lion prioritizes listening
to customers in order to deliver fully on its brand strategy while
celebrating its “Count On Me” company culture. All efforts are
designed to improve Food Lion customers’ emotional connection
to the brand.
The company also places an emphasis on serving local towns
and cities through Food Lion Feeds and its partnerships with
community food banks, working to alleviate hunger as part of the
brand’s commitment to corporate social responsibility efforts. The
brand’s current goal is to provide 1.5B meals to individuals and
families experiencing hunger by the end of 2025.
Mark Johnson, CEO of Loyalty360, spoke with Neil Norman,
Director of Loyalty & CPG Marketing Partnerships at Food Lion,
about its dynamic MVP Program, the brand’s “Count On Me”
culture, and keeping efforts focused on the customer experience.
A Seamless Process
Shop & Earn is part of Food Lion’s overarching MVP loyalty
program strategy built around customer engagement and creating
a rewarding customer experience. First, the MVP Program
delivers the brand’s weekly HotSales! deals and “Priced Low
14 Loyalty Management™ | February 2024 | loyalty360.org
Every Day” items through its pricing strategy. Next, the brand’s
shopper-marketing omnichannel events provide additional
overlay value to the customer. Customers receive weekly
personalized coupons and participate in Shop & Earn, a digital
monthly personalized rewards program. On the first of the
month, customers visit the Shop & Earn page or the app to
activate personalized offers. Grocery dollars are earned on
qualifying purchases and transactions throughout the month,
and customers can also earn additional rewards.
“We do all the work by tracking the offers and congratulating
the customers when an offer is earned,” says Norman, affirming
the seamless experience for Food Lion shoppers. “Wallet
earnings are automatically redeemed on the next transaction
for our customers.”
“Count On Me” Company Culture
Food Lion has been recognized as a finalist for the 2023
Loyalty360 Customer Experience Awards based on the brand’s
personalized loyalty program and “Count On Me” company
culture. Norman sees the emphasis on empowering Food Lion
associates as essential to the brand’s success and the ability to
fully deliver the best experience to customers. In tandem with
Food Lion’s loyalty program, the enhanced CX strengthens
emotional loyalty with customers.
“When a customer has a need, our associates are empowered
and trained to handle that need in the moment to do the right
thing to keep the customer satisfied,” explains Norman. “Each
associate is trained to know what to do and how to do it with
care.”
Loyalty Management™ | February 2024 | loyalty360.org 15
BRAND FOCUS

During onboarding, new associates are trained on the MVP
Program and provided with details on Shop & Earn, as well as the
overarching loyalty experience, digital coupons, personalization
delivered through email communications, and push notifications.
Associates are fully engaged in the program and become
advocates. They extract the same value that all Food Lion
customers have access to by setting up an MVP digital account.
Monthly scorecards are provided to retail partners to utilize and
engage with their teams. Digital and loyalty engagement training
sessions are conducted periodically across divisions. Norman and
his team believe this has been the critical success component of
growing the brand’s digital engagement five times since 2018.
This focus on knowledge and caring extends to the brand’s
shopper-marketing and loyalty programs as well. Within the
MVP Program, delivering an exceptional shopping experience
is validated through customer surveys, which indicate a 95%
success and satisfaction rate with Shop & Earn and Food Lion’s
other loyalty program mechanisms.
Looking Forward
Creating a memorable, positive customer experience
remains at the forefront of Food Lion’s loyalty efforts. There
are always new technologies and best practices to vet and
study through the lens of what customers look for and value.
Norman notes that he keeps an eye on the growing customer
engagement space while considering adding elements
such as badges and gamification and leveraging artificial
intelligence (AI) and other technologies that can create
a better omnichannel customer experience and build
emotional connections.
“We are reviewing opportunities around additional
gamification, badging, ‘surprise and delight’ rewards
programs, and how we currently bring that to life for our
customers,” finishes Norman. “We look to other customer
loyalty programs to learn what they are doing, too.”

Maintaining Momentum, Delivering Excellence Visit https://foodlion.com/

This is not the first time Food Lion has been recognized by
Loyalty360. In the past, the brand has received awards for
customer loyalty and customer experience strategy. Maintaining
QUICK-FIRE Click here to view the
Quick-fire Questions, Ft.
a level of excellence in its customer loyalty program is made
possible by listening and responding to customers’ needs.
QUESTIONS* Neil Norman, Food Lion

“My team and I think of our brand as a symphony orchestra, What is your favorite word? Growing.
where our customer is the conductor,” shares Norman. “We
stay connected to our customer insights, strategy, and analytics
partners to play the right notes — at the right time, at the right What is your least favorite word? Declining.
tempo, and at the right volume.”
Using data and insights
to really create a
What excites you? differentiated brand
Leveraging VoC experience.

Customers actively involved in the Shop & Earn program spend Yearly budgeting and
What do you find tiresome?
more per month than customers not enrolled in the program. As program modeling.
mentioned previously, surveys conducted by Food Lion indicate a
consistently high satisfaction rate, and the brand leverages Voice When shopping at Food Lion, what’s The sauces and
of Customer (VoC) feedback when developing new initiatives your favorite aisle to browse? condiments aisle and
the meat department.
within the MVP Program.
What profession other than your
To measure customer satisfaction, Food Lion employs several Small business advisor.
own would you like to attempt?
tools and methods: Customer Satisfaction Score (CSAT), Net
Promoter Score (NPS), VoC surveys, and specific program and What is your favorite
experience surveys. This allows Norman and his team to garner book recommendation to The 360 Degree Leader,
considerable feedback that can then be incorporated into the by John C. Maxwell.
make to colleagues?
brand’s future product roadmap with IT partners, determining
enhancements while shaping additional associate and internal Who inspired you to become
My brother Mark.
team training programs. Prioritizing customer feedback drives the person you are today?
improvement of the customer experience.
What do you typically think How did our team
benefit the customer
about at the end of the day? uniquely today?
As a person who
How do you want to be remembered loved and generally
by your friends and family? cared about them
and who they are.

*Inspired by the quick-fire portion of “Inside the Actors Studio.”

16 Loyalty Management™ | February 2024 | loyalty360.org Loyalty Management™ | February 2024 | loyalty360.org 17
 TECH TALKS
TECH 2024 Trends: Talon.One on Taking an Iterative
Approach in Customer Loyalty
TALKS
Click here to view our
Loyalty Live interview with
Sam Panzer, Talon.One
More than ever, brands endeavor to meet customers in real-time with
loyalty program benefits and experiential rewards that set them apart
from the competition. Yet many brands struggle, unable to properly
leverage customer data while operating without the right technologies
and integrations. Talon.One, a loyalty and promotions engine for brands,
is focused on evaluating program incentives through loyalty rewards,
challenges, tiers, and personalized promotions to ensure brands are
executing strategies aligned with their goals. Talon.One’s platform
brings together customer and session data to evaluate personalized,
targeted incentives used in a loyalty or promotional context.
Talon.One works with widely recognized brands, such as adidas,
Ticketmaster, Eddie Bauer, FanDuel, and retailer Harry Rosen, on their
incentive strategies, with retail and fashion as the largest industries
served.
Mark Johnson, CEO of Loyalty360, spoke with Sam Panzer, Director
of Industry Strategy at Talon.One, about the 2024 trends in customer
loyalty and some of the opportunities he sees within his organization
from the brand side.
Change as a Trend
Over the last 12 months in the customer loyalty space, it’s become
clear that many brands are motivated to change or enhance their
customer loyalty efforts, either by adding functionality or changing
loyalty program structures to improve or adjust benefits.
For Panzer, the last 10 years have witnessed such advanced
technology that any brand can create a loyalty program, from
corner coffee shops to the biggest brands, with the latter having been
involved in building customer loyalty programs for decades.
18 Loyalty Management™ | February 2024 | loyalty360.org
In that competitive market, many programs have launched — at
times simply to follow a trend.
“Now what we’re seeing is a rationalization of benefits with brands
better understanding what actual loyal behavior is and focusing
more on rewarding that,” explains Panzer. “It sounds basic, but
some programs were launched because the perception was that it
could drive some incremental value.”
A glut of what Panzer calls “scattershot programs” gave a
perpetual liability to every customer that signed up. Today, brands
want to become more precise in defining what behaviors constitute
loyalty — customers voluntarily sharing data and purchasing across
categories.
The newsworthy changes Delta made to its SkyMiles program
in 2023 are a good example of what Panzer has observed. In the
past, anyone who flew with Delta with any regularity received
appreciable value from the program. When changes for 2025 were
announced to make sure flyers who displayed more loyal behavior
were rewarded, more casual travelers were upset as some of the
benefits they had received were no longer going to be part of their
experience. Although Delta has pulled back on some of the planned
adjustments to its program, it’s clear that the airline is seeking a way
to make sure authentic loyalty — and frequency — are rewarded.
Brand Focus for 2024
Talon.One sees two key areas for brands to focus on in 2024. First,
brands are encouraged to think about how their loyalty programs
support the organization’s data strategy. Loyalty programs offer a
great vehicle for both collecting and using zero- and first-party data.
As laws and regulations surrounding privacy and data have changed
the way customer data can be collected, access to certain data — such
as third-party cookies — previously available will no longer be a source
of customer information brands can leverage.
“By the end of next year,” Panzer begins, “Google Chrome will phase out
99% of their third-party cookies. Basically, third-party data is becoming
more expensive and less usable. This affirms to brands that they need to
collect and manage their own estate in terms of customer data.”
Preference centers and surveys also allow customers to share
information with brands, and program members and customers can be
rewarded — the data helps determine which program members are truly
engaged. A perk for the brand is that it can more effectively market to
the member on a “one-to-one” basis.
“I’d say the most noteworthy change in the last three to four years,
and what feels like is accelerating into next year, is the data strategy in
organizations and how loyalty programs are helping brands get closer to
an idea of ‘data completeness,’” says Panzer.
Brands might form a long-term goal around developing an AI strategy,
but to do that, the brand needs to start with good data.
The second area for brands to prioritize is being smart in investments
focused on the customer. The last 18 months have witnessed a
challenging economy, and brands should employ greater scrutiny and
efficiency with anything that is passed back to customers through
acquisition spend and retention spend.
What Gets Measured Right, Gets Managed Well
First, brands need to know how to define and measure success after
changes or enhancements are applied to a loyalty program. Talon.One
helps their customers with both — initial ROI program models and then
when assisting in quantifying improvements to programs. Panzer admits
it’s almost easier to measure improvements rather than quantifying the
value in the first place.
“There’s been a shift and a move from a passive ‘earn and burn’
static program where everybody gets the same benefits toward a more
personalized, targeted direction. As brands make that improvement,
they’re going to have more micro-moments with customers — meaning
different permutations of offers and activations to test.”
This leads to a fuller calendar of communications and touches that are
going out to the customer. As that vehicle moves from the passive model
to an active iterative marketing vehicle for the brand, opportunities to
measure individual activations or attempts within that increase.
Talon.One works with customers to understand how to take modeling
that might be seen in campaign-level attribution or marketing
attribution of individual offers and move that into a loyalty context.
Brands can then review all the various initiatives they’re trying and
measure the impact of each of those experiments or activations.
A “Sea of Sameness” Persists
Brands report consistently that they want to stand out from their
competition and differentiate in their customer loyalty strategies and
customer experience offerings. And yet, the “sea of sameness” continues
years later. Panzer notes this is something Talon.One has observed.
A majority of Talon.One’s customer base comes from retail and
fashion. A mature space for customer loyalty — with continued
growth in retail loyalty, especially — it can be challenging to differ-
entiate solely by offering a loyalty program. In fact, those loyalty
programs are not necessarily going to drive behavior in a way that
they might have a couple of years ago. It’s a crowded loyalty space.
However, many brands still seek to enhance their offerings to
help increase the efficacy or impact of a program.
“Brands must be able to measure the effectiveness of individual
things they try in the context of the program,” Panzer says. “In
terms of showing how a program is different, this could be
accomplished by making sure that anything the program does
accentuates the values of the brand. What is the lifestyle the
brand is helping the customer achieve?”
Being true to the lifestyle built around the brand and
understanding customers’ perceptions are key aspects of
differentiating from other brands. The next step is to find the
best way to highlight that difference and underscore it with the
program.
Navigating Privacy
Privacy, from both legislative and corporate steward perspectives,
is gaining ground as a chief concern for brands in the U.S. and for
those who also have global customers. While many brands are
navigating the challenges brought on by data and privacy
regulations and newly enacted laws, additional ones are likely to
surface.
Talon.One is a German company, with many of its customers and
employees based in the U.S., although the company is also active
in APAC. The company’s entire research and development team is
still in Berlin, and Panzer says Talon.One is “baptized in data
privacy,” as Germans tend to take privacy seriously. He nods to
the E.U.’s General Data Protection Regulation (GDPR) and other
concerns around data privacy in Europe as creating a strict
environment.
“What we see in the U.S. is that most of the changes are coming
from private entities,” begins Panzer. “They’re coming from very
large online platforms, browsers, operating systems, and the use
of third-party data and tracking. That’s been a more impactful
needle that’s moved in the U.S. versus one affected by government
action.”
Brands should focus on building a consensual marketing
relationship where they transparently collect and use customer
data in a way where customers understand what they’re sharing,
why the brand is interested in the information, and how it’s going
to be used.
“A loyalty program is where that opportunity shines because it’s a
chance to ask customers for information in a clear way and offer a
value proposition associated with that sharing,” finishes Panzer.
Avoiding Mistakes
Brands have many challenges and opportunities in customer
loyalty, and sometimes, brands stumble. Brands need to be clear
in their understanding of what loyalty behavior looks like for the
Loyalty Management™ | February 2024 | loyalty360.org 19
 TECH TALKS
brand and then use modeling to test the different ways customers
might react to the benefits they are given.
“You should have a clear assumption of exactly how the loyalty
program is going to change behavior, such as increasing basket size
and frequency and improving sentiment so that customers refer more
people to you,” affirms Panzer. “This clarity is vital versus simply
thinking that changes made to the program will boost general
customer needs. Brands must have a clear thesis of exactly how the
program will drive revenue and a focused list of the outcomes the
program will produce.”
Panzer sees some companies launching large programs purely as
brand activation because they feel it’s something missing in their
arsenal. They fail to consider what the different levers are. It’s truer
for smaller brands, as enterprises can be a bit more mature in that
area.
“Being as specific as possible about expected outcomes is probably the
most important foundation that brands occasionally will miss,” says
Panzer.
Experiential Benefits
Interest in rewards is changing. There is a movement toward more
personalized rewards, and brands are focused on delivering special
experiences to customers, not only discounts and freebies.
Experiential benefits can include in-person experiences and digital
experiences. Simply put, they are anything else the program offers to
improve a customer’s life and facilitate interactions other than the
core commercial relationship with the brand.
“The main shift is toward, ‘what can we do other than offer points and
discounts?’” shares Panzer. “The huge focus for us in the last two years
has been on partnership-driven programs. What are the complemen-
tary other products and services that can be introduced to customers?
That’s been a thing in telecommunication and credit card loyalty for a
long time, and I see it entering into new sectors — certainly in retail.”
Panzer cites point transfers as a value within partnerships and extra
opportunities to earn points on something as simple as paying rent —
which is a component of Bilt Rewards. The benefits offered in the Bilt
Rewards program are all partner-driven. Members can even use Bilt
Rewards points to book SoulCycle spin classes — which speak to their
ideal customer. Again, it’s displaying a commitment to the lifestyle
around the brand. Mastercard might help Millennials and Gen
Z unlock a “cool urban lifestyle.” Panzer also nods to less flashy
programs, like a landscape company’s program that partners with
a business to help customers prepare taxes — not necessarily a fun
experience, but certainly experiential.
When considering partnerships to create experiential benefits for
program members, brands need to take a win-win approach.
Some partnerships might even be commercially neutral. While there
might not be an emotional connection for customers, the rewards or
benefits the partnership offers can still be meaningful to the member
and increase the likelihood of staying with the brand instead of
switching to a competitor.
“The playbook varies from business to business, and you might realize
there’s not a way to make the partnership work commercially,” says
Panzer. “But I would say that it’s at least worth exploring.”
20 Loyalty Management™ | February 2024 | loyalty360.org
All Peer,
Panzer admits it can be difficult to manage customer validation
technically with a third party. A focus for Talon.One is how it can
manage the sequence of API calls to handle that validation.
Taking an Iterative Approach in Customer Loyalty
No Pressure
Many of the brands coming to Talon.One have static loyalty
programs consisting of “earn and burn” points and tiers. They’re
not iterative; they do not evolve. Instead, the programs are stuck
in a perpetual liability with customers.
Talon.One endeavors to move brands to embrace that iterative
approach in loyalty — especially with being in real-time.
“A big focus is how do we [Talon.One] make sure that everything
about the program is being evaluated in real-time before, during,
and after purchase so that even in the order confirmation email, Join dozens of your brand peers in Loyalty360’s Roundtables, where brand
brands can start to communicate with the customer,” explains
Panzer. “Brands have the opportunity to say, ‘Hey, here’s the progress marketers and loyalty managers talk securely about issues and items that matter.
you’re making toward your next reward milestone or the next tier.’
It’s powerful psychological information you can show users, letting It’s a chance to meet others in a different role but with the same challenges.
them know that they only have ‘this far to go’ or this much to add
to the basket to hit the next year. There’s so much in-the-moment
marketing that program operators leave on the table simply because
there’s an overnight sync with their loyalty program legacy
technology before they can show anything in the program to the
customer.”
Remaining involved throughout the customer experience in real-time Loyalty360 Brand Members can now watch the following
is the most important part. Value must be shown throughout the
shopping experience, on the checkout page, in the order confirmation Digital Roundtables on-demand in the Brand Panel:
emails, etc., so that customers clearly know what they are working
toward and what they need to do next.
• Loyalty360 Lunch & Learn - Effective Partnership Management Best Practices
Look for Real-time Challenges
(Meeting Kickoff Presented by Parkland)
There is a move to more “real-time interactions,” especially within
some industries. However, it’s a challenge for brands to meet
customers “in the moment” due to a variety of factors, including • Loyalty360 Lunch & Learn - CPG, Channel, and Product Relationships
having the right data, technology, and integrations in place. Panzer (Meeting kickoff presented by Peapod Digital Labs)
acknowledges this and advises a comprehensive audit to understand
where lags and overnight syncs are located and what weekly manual
BI jobs are stitching everything together.
• Loyalty360 Brand Member Roundtable - Next Generation Customer Loyalty
“For the more commercial managers or marketing managers of a
program, they might not understand where the issue is located. It’s
always worth reinvestigating exactly where those delays are,” says
Panzer. “There might be something in the CRM, the CDP, or the
• Loyalty360 Lunch & Learn – Customer Research and Feedback Management
point-of-sale system where there’s a delay, or if your store is offline (Meeting kickoff presented by Cinemark)
20% of the time because the internet at the shopping mall your store
is located is poor. You need to understand where the connectivity
is breaking down in the stack and make sure that you know exactly • Loyalty360 Lunch & Learn – Customer Loyalty & Marketing Platform
where the blockers to real-time are.” Transitions (Meeting kickoff presented by Wawa)
--
Download the Loyalty Strategies for 2024 report here for more
insights, plus examples for each strategy from the brands getting it
right.
Loyalty Management™ | February 2024 | loyalty360.org 21
BRAND FOCUS
Bojangles is a Carolina-born restaurant brand specializing in
Southern food like hand-breaded fried chicken and made-from-
scratch biscuits. Founded in 1977 in Charlotte, N.C., by Jack
Fulk and Richard Thomas, the brand now operates over 800
restaurants in the Southeast. Deeply influenced by “Southern
hospitality,” Bojangles draws guests back to its restaurants with
friendly crews focused on making the experience memorable for
Bojangles: Shaping the
customers.
Click here to listen to our interview
with Sergio Perez, Bojangles Bojangles is poised to begin an aggressive expansion across
Florida, Texas, Nevada, and Ohio. The fast-food brand is on a
Customer Experience
mission to deliver a “taste of the South” to the rest of the country.
Mark Johnson, CEO of Loyalty360, spoke with Sergio Perez,
with the Right Sr. Director of Omnichannel Initiatives at Bojangles, about
building the Bojangles Reward program, forming partnerships
that leverage customer affinity, and driving personalization by
Technology and a Dash knowing what resonates best with customers.
of Southern Hospitality Program Evolution
Perez has witnessed an interesting evolution of the brand.
When he arrived at Bojangles three years prior, he inherited a
rewards program that was simply a website and club program.
By Mark Johnson, Loyalty360 No ordering capabilities were provided. A rudimentary
database existed, but not much more than that from an overall
infrastructure and program perspective.
Over the course of six months, the brand constructed a new
website and produced an app. Sparkfly was engaged to build out
digital wallet capabilities, and the brand also launched a new
customer data platform (CDP) and began to leverage a customer
relationship management (CRM) tool. Bojangles added artificial
intelligence (AI) and location technology to power the overall
experience.
While Perez and his team managed these multiple efforts, the
primary mission was simple: Develop a customer engagement
program that drives profitable transactions for the business
while creating meaningful, personalized experiences for users.
Bojangles’ program focuses on three big pillars. The first is
delivering deals and promotions to users based on their purchase
history and how they engage with the brand. The second is about
exclusivity — the brand wants to make sure the program delivers
exclusive bundles, offers, or certain price points to customers
through the app and on the website.
The third — and perhaps the most interesting — component of
the program is that members can unlock exclusive offers through
sports partnerships and influencers.
“For example, the Carolina Panthers are a big partner of ours,”
explains Perez. “Anytime the Panthers force three false starts,
everybody in the stadium — and anybody in North and South
Carolina — would get an offer or a deal.”
An extensive partnership with Barstool Sports allows Bojangles
to leverage talent, create content, and deliver promotional codes
22 Loyalty Management™ | February
February2024
2024 | | loyalty360.org
loyalty360.org
through partnerships to unlock special rewards and offers
specific to the app and the website.
Determining the Right Partnerships
When vetting partnership opportunities, Bojangles considers
a couple of different measures. First and foremost is the
affinity of its customer base and the geographic location of its
restaurants. Another is sports. Football is at the heart of the
history of Bojangles. Music is important to customers, too.
“We look for properties that have the geographic footprint
coverage of our restaurants and brands and partnerships
— or entities — where guests have a high affinity for them,”
says Perez. “We also look at opportunities where potential
customers fit the model of our target audience and where
they engage — for example, college football. The ACC and the
SEC are long-standing partners of the business.”
Bojangles has formed partnerships with sports celebrities like
NASCAR legend Dale Earnhardt Jr. and Carolina Panthers
rookie quarterback Bryce Young, in which themed content is
released throughout the Panthers season.
A partnership with country musician — and former Clemson
football player — Lee Brice helped bring a different audience
to the business. This example showcases how Bojangles’
approach considers geography composition and an affinity
that will either attract new customers or drive the frequency
of those the brand already engages in its footprint.
Recognition for Engagement Strategies
Bojangles has been recognized as a finalist for this year’s
Loyalty360 Customer Experience Awards based on the
brand’s engagement strategies utilizing technology, strong
customer acquisition numbers, and improved data insight
initiatives.
“For us, the way we think about the overarching success in the
business, it’s all about sales,” begins Perez. “We recognize that
there are KPIs — conversions, customer lifetime value, and
frequency — but ultimately, the most important measure for
the business is how we’re growing transactions.”
While the ability to acquire and convert users is critical,
how Bojangles is leveraging digital — whether it’s through
technology or by using data — to drive incremental and
profitable transactions is key.
Perez adds, “The biggest success story is being able to take
a business that was delivering zero dollars from a digital
perspective to a space where we’re on track to deliver over
$100 million in digital sales for the business. This is a big
accomplishment. It’s the result of building the right strategy,
choosing the right tech stack, and developing a program that’s
meaningful to our customers.”
Loyalty Management™ | February 2024 | loyalty360.org 23
BRAND FOCUS
Technology Helps Shape the Customer Experience
Technology is at the forefront of Bojangles’ loyalty program
strategy. The brand seeks to create experiences that will
resonate with customers while offering seamless engagement.
First and foremost, it must be easy for people to order. While
this might seem to be a simple task, some Bojangles menu items
take time to prepare. Customers need to be able to order their
favorite food without having concerns over long wait times.
This became the core of how the brand could provide a good
ordering experience.
The brand’s digital wallet makes it easier for customers to
receive and redeem offers, which drives conversion rates.
Location technology with radar allows the brand to bring
fresher, hotter food to takeout customers. This technology
takes into account where a customer is during travel to ensure
the order is delivered to the restaurant POS at the right time.
“For those fried chicken and biscuit lovers, there’s nothing
more soul-crushing than cold fried chicken and cold biscuits,”
jokes Perez. “Making sure that we can deliver it hot and fresh is
incredibly important.”
Bojangles also leverages an AI upsell engine that recognizes
what’s in a customer’s cart and makes meaningful
recommendations to improve the ordering experience. For
example, if a customer adds only a single biscuit to an order,
the AI engine will recommend making it a combo. For those
ordering family meals, it might suggest tea or an extra side.
Additionally, the AI engine will recognize if an order is missing
something the customer typically includes.
“Across the board, we’re leveraging a slew of different solutions
to make that experience richer for customers,” says Perez.
“From a customer data platform perspective, it’s empowering
us to make better decisions around where we’re buying media,
what channels we’re investing in, what kind of content we’re
producing, and which influencers or partners are delivering
more personalized experiences for customers.”
Bojangles’ IT and Operations team members are actively
testing AI drive-thru technology in restaurants. Bolinda — as
she’s come to be called — always shows up on time and takes
good care of customers.
By leveraging drive-thru AI technologies, the brand plans
to consistently deliver accurate orders and focus on the
hospitality quality of the experience in-store. While not a plan
to reduce labor, it allows Bojangles to reinvest the labor in
those restaurants so employees can get better at execution and
create memorable experiences for customers.
AI technologies continue to be studied closely — for the
drive-thru, the app, the website, and the location technology
currently in use. All this drives back to creating a great ordering
experience and giving customers what they expect as a big
component of the loyalty experience.
24 Loyalty Management™ | February 2024 | loyalty360.org
“It’s not just about building a good app or website,” says Perez.
“You can have the best points or rewards program in the world, but
if we’re not executing well at the store level, it doesn’t matter how
good the perk is. Customers are not going to want to continue to
use the brand.”
Perez also nods to the amount of technology and rapid innovation
in the brand’s restaurants impacting customers, franchisees, and
in-store teams and crew members. It’s imperative that changes
make the desired impact on all three constituencies. Perez’s team
must ask, “How are digital options and data making crew member
experiences easier? How are they driving real value to customers
and financial benefit to franchisees and the brand?”
“Advocacy around how we create best practices and improve
digital literacy for our crew members and our franchisees to
understand the real impact of data and investing in digital is crucial
for the adoption and evolution of loyalty programs,” says Perez.
Generating Emotional Loyalty
Executing a successful customer loyalty program and facilitating
brand love and emotional loyalty is challenging in today’s
landscape. Perez acknowledges there is much competition,
and more than ever, people have many restaurant choices.
Within customer loyalty, the margin of error — in execution and
experience — is slim.
“There is a cult-like following for the brand unlike any other that Hospitality, simplicity when ordering, personalization, and easy
I’ve seen in terms of the Southeast area,” shares Perez. “Any time redemption are nudges that, over time, further strengthen
you say ‘It’s Bo Time’ — which is our tagline, people tend to smile. loyalty to the brand and allow the customer to feel like they are
They’ll tell you a story about a favorite item. That is part of the part of the brand. Another key element is elevating perceived
DNA of the brand.” value and helping people feel like they are getting more when
they spend.
Perez can point to over 46 years of this cult-like following.
During the holiday on social media, it’s not unusual to find brand “In the South, when you go to someone’s house for dinner,
enthusiasts making comments such as, “I know I’m finally home there’s always an extra seat at the table just in case you weren’t
when I’ve had my first Cajun Chicken Filet Biscuit,” or “I know I’m expected or brought a guest,” says Perez. “For Bojangles, it’s
home when you know, I’m sharing a plate of food with my family about mirroring that ease, convenience, and warmth from
over a tailgate.” individual experience and making sure that the food delivers on
an abundance of value over time.”
The team at Bojangles has been fortunate to be able to tap into the
cultural relevance of the brand. Perez also believes the drivers of
customer loyalty have not changed, and executing consistently in Visit https://www.bojangles.com/
the restaurant to ensure good customer experiences are delivered
remains a vital component of the program, as does providing the
right value.
“It’s also about driving personalization beyond knowing and using QUICK-FIRE Click here to view the
Quick-fire Questions, Ft.
a name,” asserts Perez. “It’s about recognizing how somebody
is engaging with you and tapping into that. If somebody spends QUESTIONS* Sergio Perez, Bojangles
90% of their transactions at breakfast, some marketers still want
to move them to a different time of day. They’ll send a dinner What is your favorite word? Howdy.
message. Instead, we need to leverage what customers tell us
about themselves.”
What is your least favorite word? Offline.
It’s this perspective that drives Bojangles to build communications
and marketing programs that are pertinent and personal for
customers. Understanding the data customers share about their
menu, location, and time-of-day visit preferences helps the brand What excites you? Profitable transactions.
implement marketing campaigns that drive conversions because
they are relevant.
Long meetings that could
What do you find tiresome? be an email.
Cultural Relevance and Southern Hospitality
Outside of Bojangles, what is your
Superica.
The culture influencing Bojangles’ menu is borne of the welcoming favorite restaurant?
family kitchens of Southerners, resulting in a friendly familiarity
between the restaurant and its customers. This familiarity makes it What profession other than your own
Public office.
easier for the brand to deliver the dishes hungry diners seek. Add would you like to attempt?
in a little Southern hospitality — Bojangles’ “secret sauce” — and
the recipe for success practically writes itself. What brand do you think
Delta.
does loyalty the best?
“One of the things that I’ve always been struck by at Bojangles is
how managers and crew members know their customers. Someone Who inspired you to become Joel Bulger — the former
might pull up, and before they’ve ordered, the cooking has begun,” CMO of Zaxby’s and
the person you are today? Johnny Rockets.
says Perez. “If I ask how they knew, the crew member will tell me
the person comes in every day and gets the same thing. They know What is your favorite book Measure What Matters.
their customers.” recommendation to make to It’s the discipline of
colleagues? objectives and key
results.
Taking that in-store hospitality moment and bringing it into
the digital front is vital to ensure Bojangles is delivering that Someone who’s
Southern hospitality, whether it’s copy used in communications How do you want to be remembered made meaningful
or presenting the menu in a way that makes ordering a seamless by your friends and family? contributions to the
experience. In other words, if a customer orders a two-piece communities in which I serve.
chicken dinner, that is the first menu item that should be seen.
*Inspired by the quick-fire portion of “Inside the Actors Studio.”
Loyalty Management™ | February 2024 | loyalty360.org 25
TECHNOLOGY & TRENDS
Adding Gamification to Customer
Loyalty Programs:
Experts Offer Advice for Brands
By The Loyalty360 Team
Gamification has the potential to make customer experiences
more rewarding and interactive, and many brands are interested
in learning if adding such elements to their loyalty programs and
strategies will improve engagement. Indeed, it’s not unusual for
customers to be presented with gamified elements during digital
interactions with their favorite brands. Friend referral challenges,
seasonal games, quizzes, and polls are seemingly ubiquitous.
However, before jumping into the world of instant win games,
spin-the-wheel promotions, and online “scratch-offs,” brands and
marketing teams must explore what types of gamification could
be authentically presented while vetting possible restrictions (e.g.,
industry regulatory guidelines) and risks.
Loyalty360 spoke with supplier members and loyalty strategy
experts about increasing member engagement through gamification,
considerations for brands seeking to add gamification to their
customer loyalty strategies, and maintaining brand integrity.
Article contributors:
• Randy Hernandez, Vice President of Strategy, Brierley
• Aaron Lobliner, Chief Client Officer, CataBoom
• Steve Palladino, Chief Growth Officer, GroupFiO
• Chris Mills, Chief Revenue Officer, Talon.One
Elevating the Customer Experience through
Gamification
While gamification has the potential to enhance customer
experiences across various industries, its success depends on careful
consideration of industry-specific factors, target demographics, and
the nature of the products or services involved.
“It’s essential to tailor gamification strategies to align with the
goals and characteristics of each specific context,” says GroupFiO’s
Palladino.
26 Loyalty Management™ | February 2024 | loyalty360.org
He suggests the following consideration points for brands:
• Will gamification have universal appeal? Rewards,
competition, and achievement are fundamental human
drivers, but specific game mechanics and themes might
resonate differently with various demographics.
• Are there industry-specific challenges? Industries with strict
regulations, like finance or healthcare, might face challenges
in implementing certain gamification elements due to
compliance requirements.
• Who is the target audience? Considerations of age, cultural
preferences, regions, etc., must be made. Various
demographics will have different preferences in how they
want to engage with/be engaged by a brand.
• Does gamification make sense for the product(s) or service(s)
offered by the brand?
• Will gamification align well with the brand’s image and
values?
• Is the right technology in place to support gamification, and
does the target audience the brand seeks to engage have
access to the technology required to participate?
Brierley’s Hernandez agrees that gamification can make
engaging with customers more fun, rewarding, and memorable.
“It’s also a great way to create and reinforce more emotional
loyalty with members. We’ve implemented gamified
promotions, surveys, and challenges for multiple clients across
many industries ranging from consumer packaged goods
(CPGs) to eyeglass manufacturers and for direct-to-consumer
as well as B2B programs. If done properly, application for
gamification is virtually limitless,” says Hernandez.
“Gamification appeals to the basic human psychological desire to
compete, achieve, and be rewarded. We have built and executed Loyalty360 Expert Panel
gamification across over 10 different verticals for B2C, B2B,
and B2E targets, seeing ROI across the board,” adds CataBoom’s
Lobliner.
Gamification — A Means To Trigger Engagement
Games, like reward programs, can satisfy the human desire
for status and achievement. Smart brands review essential
Randy Hernandez
Brierley
Aaron Lobliner
CataBoom
Steve Palladino
Group FiO
Chris Mills
Talon.One
elements of gaming that they can transfer directly to their loyalty
programs.
or leaderboard to a brand’s app can help a member visualize
“Games are the ultimate tactic to engage loyalty members in
progress within the program and motivate them to act — getting
between purchases and help to achieve program objectives,”
them closer to reaching the next tier or reward.  
affirms Lobliner.
Hernandez reminds brands that while a competitive spirit may
These objectives can include:
contribute to a program member’s desire to play a game, not
everyone is “in it to win it.” Many will play to try something
• Acquire New Members new and maybe even socialize if that is part of the gamification
• Drive Repeat Sales strategy.
• Increase Repeat Visits/Time Spent
“It’s important to keep in mind for any game you’re exploring for
• Inspire Brand Advocacy
your loyalty program to provide a little something for everyone
• Engage Lapsed Members
— bonus points for entering as well as the all-expense trip to
• Motivate Point Earn or Burn the Super Bowl ‘for one lucky winner,’” Hernandez says. “Make
it exclusive to your members, and ensure the gamification is
The game itself isn’t as important as the value exchange that consistent with your brand.”
brands can create with the game experience. Lobliner sees the
game as a means to trigger an engagement. It’s the combination
of the game plus the incentive that helps enable behavior change
in the customer.
Develop a Gamification Strategy
When developing a gamification strategy, Hernandez
“An Instant Win game with chances to win prizes that are
recommends starting with goals for the initiative. For example,
strategically curated or a simple offer can make the experience
what is the brand trying to drive with the campaign? Is it the next
successful if aligned with your target audience preferences,” says
purchase or a seasonal promotion? Is the planned gamification
Lobliner.
designed to reengage lapsed or inactive members?
Talon.One’s Mills explains that gamification can be as simple
“You may want to start as broadly as possible for gamification
as awarding badges for purchases or as involved as creating an
to ensure you get as many members engaged as you can and
entire in-app game for users to play. The guiding principle is the
then gather performance insights to help fine-tune future more
same: gamification makes a serious process — i.e., accessing a
targeted efforts,” advises Hernandez.
website to find out more information or purchasing a product
online — more attractive and compelling, which improves the
Lobliner emphasizes that brands need to keep the game easy to
likelihood that the customer’s interest will be held. Even better,
understand and familiar.
it’s a tactic that can incentivize the entire customer journey, from
acquisition to retention, while not jeopardizing the economics of
“Understand and leverage human psychology. Gamification can
the purchase.
take many forms but works best when intentionally designed
to tap into people’s innate desire to compete, achieve, and be
“Gamification boils down to understanding what behaviors are
essential to your business and how to create incentive structures
rewarded. To be most effective, marketers should keep these
psychological factors in mind to create something that is both
around these actions that tap into the mindset of competition and
engaging and motivating,” explains Lobliner.
scarcity,” continues Mills.
Additionally, incorporating gamification doesn’t always need to
be a heavy lift. Gamification mechanisms like badges for reaching
a certain number of loyalty points positively reinforce behaviors
and appeal to a user’s inner collector. Adding a progress tracker
Loyalty Management™ | February 2024 | loyalty360.org 27
TECHNOLOGY & TRENDS
He provides further tips to help brands better ensure their
gamification efforts will achieve desired outcomes once
implemented:
• Know the target audience and their motivations — this also
helps determine prizing.
• Set clear goals, such as increasing brand awareness, generating
leads, or driving sales.
• Design a compelling user experience.
• Measure results against baselines. Consider key metrics and
performance indicators like user activity, time spent, completion
rates, session duration, sales growth, customer acquisition, lead
generation, and social media engagement.
Like Lobliner, Palladino believes developing a successful
gamification strategy requires careful consideration of various
factors. He adds the following key considerations:
• Select game mechanics that resonate with users and
complement the brand.
• Ensure that gamification elements align with brand values and
image.
• Offer meaningful and achievable rewards that motivate
participants; leverage customer feedback when reviewing and
updating the reward system.
28 Loyalty Management™ | February 2024 | loyalty360.org
• Incorporate elements of competition to drive engagement,
but ensure that it remains friendly and inclusive. Encourage
collaboration in addition to competition to cater to different
preferences.
• Design a user interface that is intuitive and easy to navigate.
• Establish mechanisms for users to provide feedback on the
gamification experience.
• Ensure that the gamification strategy is inclusive and
accessible to users with varying preferences, abilities, and
backgrounds.
Hernandez also recommends projecting performance based
on prior campaigns (with or without gamification) and
calculating the minimum lift required to — at a minimum —
break even on the costs of the promotion.
“If possible, consider setting up a test versus a control strategy
where you send the same campaign to both cells, but only
include the game in one,” suggests Hernandez. “We have
typically seen gamified promotions and communications
perform significantly better than those without.”
Gamification and Maintaining Brand Integrity
Among some brands, there is a concern that gamification could
tarnish brand image by introducing themes like chance and
fantasy. However, any perceived “danger” to brand integrity
can be mitigated through a strategic, well-conceived approach
to leveraging gamification.
Palladino believes that gamification can be a powerful tool for
engaging customers but also sees potential risks that could
impact a brand’s image if not carefully managed. Some of the
potential dangers might include:
• Misalignment with Brand Values
• Unintended Consequences (e.g., users exploiting loopholes or
engaging in undesirable behaviors to game the system.)
• Alienating Certain Customer Segments
• Overemphasis on Chance
• Lack of Transparency
• Inconsistent User Experience
• Inappropriate Targeting (e.g., targeting vulnerable
demographics or using gamification in sensitive areas
such as health or finance)
• Neglecting User Feedback
“Risks to brand integrity can be mitigated through careful
planning, alignment with brand values, transparency, and
responsiveness to user feedback,” says Palladino. “By being
mindful of these potential pitfalls, brands can leverage
gamification effectively while maintaining a positive and
authentic brand image.”
Lobliner and Hernandez agree that any gamification added
to existing customer loyalty strategies needs to be aligned
authentically with the brand.
Overall, Lobliner doesn’t see gamification as posing a danger to
brand integrity if designed with the brand’s standards, values,
and target audience in mind. He believes that the creative
concept, design, and types of prizing, offers, and rewards also
contribute to the positioning of the brand.
“This is a decision the brand owner needs to make; however,
in most cases, gamification can work for nearly any product
or service if designed consistently with the brand,” adds
Hernandez. “For example, a beer brand would want to avoid
gamification tied to the number of bottles consumed, but an
in-app trivia game played with others online at bars and homes
might reinforce the brand’s image of bringing friends and family
together.”
Gathering Zero-Party Data through Gamification
With restrictions and regulations placed on collecting customer
data affecting brand loyalty strategies, gamification has become
an attractive source of zero-party data. Brands seek effective
ways to tap into it, understanding that some gaming features
can generate valuable data for brands to leverage. Loyalty360
asked our member-supplier experts how brands can use
gamification and benefit from it.
“Gamification, particularly through hosting fun quizzes on
your website or app, can be a rich source of zero-party data,”
shares Mills. “This helps you acquire valuable, permission-
based information about your customers’ product choices and
personal characteristics.”
Mills goes on to share an example. JCPenney® uses online
quizzes to better understand their users’ lifestyle preferences
and shopping habits, and this additional information
supplements existing transactional data. The quizzes also help
boost the adoption of JCPenney’s loyalty program, as users are
incentivized by gaining reward points for every quiz completed.
Brands that would like to do the same can work with a quiz
software and pull the data back into the customer database
integrated with their loyalty program.
Lobliner agrees. “Capturing preferences via trivia, personality
quizzes, or simple games like CataBoom’s SwipeIt’s ‘swipe right,
swipe left’ experience elevates the engagement and can capture
critical zero-party data about your customers.”   
Hernandez offers another example. “Instead of fielding a
standard pet owner survey, why not ask members about their
pets — names, ages, and breed — to spin the pet food bowl for a
chance at free pet food for life and 100 bonus points?”
There is room for personalization in gamification, and Palladino
points out that brands can allow users to create profiles within
the gamified experience, including customizable avatars,
preferences, and personal details. Furthermore, brands can
gather data on user preferences, demographics, and interests,
enabling personalized targeting and customization of the user
experience. By incorporating storytelling elements where users
make choices that impact the narrative, brands can gain insights
into the decision-making processes, preferences, and values
through the choices users make in the game. Additionally,
soliciting feedback from program participants can provide
valuable qualitative data on user satisfaction, preferences, and
areas for improvement.
“Brands should ensure that data collection is transparent,
aligned with privacy regulations, and accompanied by
clear value propositions for users who willingly share their
information,” finishes Palladino. “Creating a mutually beneficial
exchange between brands and users fosters trust and
encourages ongoing participation in gamified experiences.”
 TECH TALKS
2024 Trends: Phaedon on Listening to Customers
TECH and Improving Loyalty Programs
TALKS
Click here to view our
Loyalty Live interview
with Tom Madden and
Katie Berndt, Phaedon
In a crowded marketplace, brands are challenged to stand out and win
brand love. Transforming customers into authentic brand advocates can
be a challenging journey for many brands.
Phaedon helps clients move their customers toward becoming true
advocates for the brand and business. It starts with awareness and
understanding, then acquiring new customers and engaging with them
in meaningful ways, which can, ultimately, lead them to become loyal
customers who are true advocates for the brand. Through loyalty
strategy consulting, program design and optimization, advanced
analytics, and their proprietary loyalty technology, Tally®, Phaedon
works with clients to create the experiences customers seek.
Mark Johnson, CEO of Loyalty360, spoke with Tom Madden, Executive
Vice President, and Katie Berndt, Vice President, at Phaedon, about
expected trends in 2024, challenges and opportunities for brands,
and how listening to customers will determine loyalty program success.
Improving Customer Loyalty Efforts
In 2023, many brands sought to improve customer loyalty efforts and, in
some cases, revamped their entire program — adding functionality and
changing the program structure and benefits with an eye on their
customer value proposition. Madden spoke to how Phaedon is working
with clients to ensure that the value is in the right place for their
customers.
“It’s one thing to offer something, but if that doesn’t mean anything to
the members of the program, then it’s going to fall flat,” explains Madden.
“We’re seeing brands add more non-transactional benefits through
their programs and also add value through external partnerships with
complementary brands to extend engagement by creating experiences
with the brand or program on more of a day-to-day basis.”
30 Loyalty Management™ | February 2024 | loyalty360.org
Many customers do not engage in daily transactions with a brand —
in some cases, perhaps transactions happen only occasionally.
The challenge for those brands lies in how to continue engagement
and offer value to loyalty program members between transactions.
Partnerships can really help to extend engagement and deepen the
relationship at all points along the journey.
Enhancements for 2024
Phaedon predicts a renewed focus on the utility of points where
redemption options are expanded outside the existing ecosystem
of the brand, and members can use program currency to make other
purchases or earn points in other ways.
With economic challenges persisting, people are savvier when it
comes to getting the most out of loyalty programs.
“If you think about points as a true currency,” begins Madden, “it
helps you think through what you can do differently. It’s not just
about the loyalty program itself but the entire CRM experience.
For example, if you look at the customer journey, it helps us identify
gaps where we can effectively engage with customers when they
need attention.”
Madden suggests that when loyalty is considered over a longer
period, there’s always a new “shiny object” to capture a brand
marketer’s attention. Two years ago, non-fungible tokens (NFTs)
were that shiny object, and now, fewer people are talking about
using them. Phaedon works to keep brands focused and reduce the
tendency to chase after the proverbial “Squirrel!” This allows the
clients Phaedon partners with to improve their loyalty programs so
that they are customer-centric and not distracted by fads.
Berndt agrees with Madden on the importance of point utility and
adding more partnerships to enhance programs. She also believes
that CRM is a huge topic that goes hand-in-hand with loyalty.
“We’ve had more conversations with clients around targeting and
personalization and what that means at the segment or tier level,”
says Berndt. “Ultimately, brands are striving for those one-to-one
interactions to make the experience more personalized for their
customers. That’s where the true relevance lives, and you can create
more of those meaningful moments, establishing connections and
driving emotional loyalty.”
Offering members special experiences and “surprise and delight”
rewards are some ways brands are delivering standout experiential
rewards to engage members and build loyalty. From early or special
access to events and one-of-a-kind experiences outside the typical
program, brands endeavor to foster emotional loyalty and cultivate
brand love.
Measuring Success and a Sharp Eye on Liability
Point liability continues to grow, and brands want to ensure they’re
not caught off guard. Phaedon sees an opportunity to lower liability
through point utility. This can create a win-win for brands and
program members. Brands benefit from reduced financial exposure
on their books, and program members receive more value for
engaging with the brand — feeling more connected and more
appreciated.
People are familiar with brands releveling, reevaluating, or revaluing
their programs. When this is done poorly, it can create a huge rift
between the brand and its customers and potentially impact loyalty
to the brand. But when it’s done right, brands can add more utility to
program currency in ways that reflect customer preferences, helping
members to feel the brand is looking out for them. This can increase
trust and keep members feeling more connected and like they’re part
of something.
“Incremental lift in enrollments, net sales, frequency, and retention
rate are the big metrics for loyalty programs,” answers Berndt when
asked about measuring success. “These are what our clients care
about most and what we’re helping them actively track and measure.”
Voice of Customer (VoC) should also be monitored and measured
through a combination of customer satisfaction and Net Promoter
Score (NPS) surveys, along with social listening and other topical
research initiatives. While typically a secondary metric, Berndt
recommends all brands use a feedback loop to track customer
insights on an ongoing basis and apply key insights to their loyalty
and CRM initiatives.
“Something like an NPS helps you develop a benchmark and watch it
over time,” explains Berndt. “You can also specifically target your
detractors — those giving you a poor rating — and know who your
promoters are — those true advocates — to ensure they remain
happy. Listening to these audiences can help you find gaps in the
customer experience and fix them.”
Madden agrees with his colleague. “By understanding what
customers are asking for and working toward that NPS, it ultimately
feeds strategy and future changes, additions, and partnerships.”
In the case of Tally®, Phaedon’s proprietary loyalty platform, clients’
call center agents can access extensive information through the
customer care app, giving them a 360-degree view of the customer. If
a member calls about a problem that needs to be resolved,
agents can see how the caller feels about the loyalty program and
determine how best to resolve the issue and keep the customer
feeling positive about the brand and actively engaged with the
program.
Measuring Efficacy in Customer Loyalty
For Berndt, what’s driving frequency, regardless of industry, is
typically the number one key performance indicator (KPI), followed
by enrollment rate and revenue. Measuring not only month-over-
month and year-over-year but also the incremental lift — especially
when changes have been made to a program or testing new CRM
activations — will give clients a full picture of the efficacy of the
program.
“Enrollment rates by channel is also something to keep a close eye
on,” says Berndt. “For example, a hotel loyalty program member
could enroll online, through an app, through Wi-Fi while staying
at the hotel, or when talking to someone at the front desk.
Revenue is another key metric — how much you’re taking in and
how much you’re spending to get people to enroll and participate
in the program.”
Additionally, Berndt recommends that brands pay attention to
redemption rates (of points, miles, stars, and other rewards) and be
able to attribute that back to members who are actively engaged.
“Redemption is an important loyalty participation metric. You want
people to redeem and get value out of the program,” says Berndt.
Participation is a subject that Phaedon discusses with clients,
and this can lead to conversations around lifecycle targeting and
understanding incrementality based on the promotions they’re
running or modifications they’re making to their program. Program
modifications could be related to new CRM activations being tested
or loyalty program specific. From an analytics perspective,
incrementality is one of the most important measurements when
trying to understand what levers can be pulled at any given time to
drive more impact.
Top Trends for Brands in 2024
Getting the program’s foundation right is key, and Phaedon
advises brands not to react to every trend. Being on top of trends is
important, but whether a new idea or technology is a match
depends on the brand and the maturity of its loyalty and CRM
program.
“Some of the trends we continue to see are personalization and
being able to provide more flexibility and choice,” says Berndt. “It’s
important to put your customer at the center of your flywheel, so to
speak, and map and build the experience — whether it’s UX, CRM,
loyalty benefits, or the functionality of the program around your
customers, and let active program participants help you drive the
enhancements.”
One of the best things a brand can do to add innovation to a
program is to look across industries. Marketers for hospitality can
keep a pulse on what’s happening in retail and restaurant loyalty
and can bring interesting aspects of the member experience and
weigh the feasibility of how to incorporate something similar in
their own programs and vice versa. That kind of inspiration can
guide innovation.
Loyalty Management™ | February 2024 | loyalty360.org 31
 TECH TALKS
The Economy’s Impact on Retail Spending and Loyalty
With retail sales slowing in October, economic concerns are on the rise
as brands move to add more value to their programs and
differentiate their offerings.
Phaedon’s clients are focusing on a couple of key areas. Privacy is one —
something they must focus on, as privacy and data regulations impact
how data is collected, maintained, and leveraged. In terms of truly
differentiating post-pandemic, brands are, first and foremost, working
to understand the customers who aren’t in their programs today and
what they must do to attract those customers and drive participation
in their programs. Additionally, for customers already enrolled, brands
need to determine where they can center the value most effectively.
Once again, the VoC can offer guidance.
“If somebody has the propensity to shop at a retailer only once a year,
spending a lot of your marketing or your rewards budget on that
person is probably not the best return on investment,” advises Madden.
“Whereas, if somebody is shopping with your brand a couple of times a
year, but you know they’re shopping somewhere else 50 other times a
year, that’s when you can choose to double down on efforts and explore
what you need to do to increase attraction and encourage them to
come to you more. Determine what they value, add more value, and
move them toward loyalty.”
Madden notes that brands are also looking at different customer
segments and questioning where to invest dollars to earn the best ROI.
Differentiate or Drown in a Sea of Sameness
Brands want to differentiate their offerings. And yet, this requires
the balance of offering the right customer value proposition, aligning
disparate technologies or investing in the right platforms to enable a
more personalized experience, and driving ROI. A “sea of sameness”
plagues many customer loyalty programs, and standing out is critical for
success.
“Simplicity is still a guiding principle,” asserts Berndt. “No matter
what maturity your program is in, when you try to stand out too much
32 Loyalty Management™ | February 2024 | loyalty360.org
or stand out for the wrong reasons, it can absolutely backfire.
Instead, focus on knowing your customers and what they want and
Challenges for Brands in 2024
QUICK-FIRE Click here to view the
Quick-fire Questions, Ft.
QUESTIONS*
expect. Then, deliver on that to the highest level possible in every Madden recalls how data was limited in the past. Then, when data Tom Madden, Phaedon
channel that you interact with them.” was accessible, loyalty-focused analytics were lacking. Now, the
challenge is storytelling.
Berndt believes eliminating silos amongst your team can help
What is your favorite word? Raconteur — a person who
facilitate approaching loyalty as a whole or outcome (versus only “We still don’t necessarily have the greatest storytelling going on excels in telling anecdotes.
thinking of loyalty as a points program). Leveraging the data in the industry,” says Madden. “For example, when a brand sends
collected through loyalty programs can help improve CRM, the out an email every single day to you, it just becomes noise. You
user experience, and personalization just by activating it. start to ignore it, even if offered something for free. You’re going What is your least favorite word? Bore, boring, or bored.
to miss the offer because you get messages from the brand all the
time.”
Let Research and Strategic Plans Guide Decisions
In some cases, the marketers sending those daily emails know they What excites you? People!
Making big changes to a customer loyalty program without could be more effective with a more strategic approach, but their
conducting proper research is a mistake, and brands that do this executive team may not understand. Sometimes, the decision is
need to be ready to deal with the repercussions. made to continue with the status quo rather than go with what the What do you find tiresome? Being home all day.
data suggests could bring a bigger return simply because that’s the
“Delta Airlines is probably the biggest case study from 2023,” says way it has always been done.
Berndt. “When they initially announced upcoming changes to their Any brand that has levels
What brand do you think does
SkyMiles program, it quickly became a prime example of what not Internal alignment is a big challenge as well. Madden cites a client that address different
customer loyalty well? segments of their base.
to do. They attempted to simplify, but instead, the trusted, best-in- case in which the brand brought various aspects of its marketing
class leader for loyalty created a firestorm. They broke the trust.” team together throughout discussions and the process of building
out its loyalty program. What profession other than I would love to own a
Most people expect that brands will need to make changes to the one you’re currently in little burger joint; that’d
their programs over time, but communication is key when rolling “While the loyalty team is driving the effort, they’re bringing in would you like to attempt? be fun.
out changes. Keeping a finger on the pulse of the customer while their media team, email marketing team, and all other teams that
making small changes instead of massive ones that might draw need to understand what’s going on and how they can be a part Who inspired you to become My extended family and
significant criticism is vital. of it. Those teams must learn how they will benefit alongside the the person you are today? my closest friends.
loyalty team and program members,” says Madden. “When a chief
“Investing the time and energy into a fully thought out ‘qual and marketing officer looks at initiatives and realizes the impact across
quant research’ strategy before launching anything major is rule the organization, they will want to bring folks in early to partner What do you typically think Somebody who’s
in the efforts because a well-designed and well-executed plan about at the end of the day? generous and is always
number one,” says Berndt. there for them when they
embraced by all stakeholders is great for members and customers need me to be.
“I think the biggest mistake is when brands aren’t looking at a — and in turn for the brand.”
long-term strategic plan and then working out their annual *Inspired by the quick-fire portion of “Inside the Actors Studio.”
objectives and goals to help get to that plan,” adds Madden. “You
always have to make adjustments to plans, but when you have an Learn more at https://www.wearephaedon.com/
overriding strategic objective, it helps keep the noise at bay and
the shiny objects out where they belong.”
Loyalty Management™ | February 2024 | loyalty360.org 33
BRAND FOCUS
Originally established in 2015 to provide soccer fans with a
way to stream matches, today, Fubo is a direct-to-consumer
live TV streaming service enjoyed by 1.48M paid subscribers
in North America. Growing through strategic acquisitions, the
service has expanded its scope of programming to encompass
additional sports, news, and entertainment content, operating
Fubo: Building Brand
in the U.S., Canada, and Spain, as well as in France as Molotov.
Click here to listen to our While the company still sees itself as a sports-first service, a
interview with Alison wide portfolio of content has been designed to keep consumers
Sternberg, Fubo engaged.
Love by Rewarding Fubo completed its initial public offering as a New York Stock
Exchange (NYSE) Company in October 2020. In fall 2023, Fubo
Consumers and Investors announced a partnership with TiiCKER, a software platform
that engages, verifies, and rewards retail shareholders.
Mark Johnson, CEO of Loyalty360, spoke with Alison
By Mark Johnson, Loyalty360 Sternberg, SVP, Investor Relations at Fubo, about building
brand love, rewarding platform users and investors, and the
Share Perks program created through a partnership formed
with TiiCKER.
Beyond Sports
Once called “the Netflix of soccer,” Fubo has evolved past its
nickname to offer broader programming to appeal to a wider
audience, growing subscriber numbers as the brand better
articulates the business and builds out its long-term plans.
Acquisitions — a French streaming service and an Indian
company with patent-protected AI technology — have shaped
an important part of the brand’s product roadmap.
“I saw in Fubo a direct-to-consumer business that was trying
to solve an unmet consumer need,” shares Sternberg. “The
industry developed into an aggregated model with a handful
of players owning all the content. The disruption that followed
created a more disaggregated model where a multitude of
platforms offered all different kinds of content.”
Sternberg and her team see a return to “rebundling of
content” — a return to aggregation to meet that unmet
need. Many consumers “cut the cable cord” because of costs
and inconvenience, but the disaggregated model made it
cumbersome and expensive for consumers to get the content
they wanted. It created a situation where consumers found
themselves spending as much, if not more, to get the content
they wanted. There’s still a need for consumers to have a
single aggregated destination for all their content where it’s
discoverable and the interface is navigable.
Today’s consumers want to interact with their content.
Whether they take a passive approach to their viewing (“lean
back”) or want a more personalized experience (“lean in”), Fubo
can customize the content subscribers want.
“Building brand love and brand articulation takes time, but it’s
why people choose one thing over another,” says Sternberg.
34 Loyalty Management™ | February 2024 | loyalty360.org
“We offer a differentiated product experience. The brand
characteristics of the platform and the Fubo community are
what sets us apart. Joining Fubo means something. We spend
time thinking about how to create brand love and loyalty.”
Rewarding Passion and Loyalty
Fubo’s subscribers and platform users care deeply about the
platform’s navigability. This enthusiasm prompted the brand to
focus on rewarding them for their loyalty. Fubo also observed a
crossover where end users and investors came together. Some
investors were passionate about the platform, while others
were not. Some engaged end users were also investors. Fubo
saw that intersection as a place where the brand could foster
significant engagement. The brand needed to determine how to
turn end users into owners and owners into end users.
The brand is leveraging two tools to support the initiative. Say
Technologies is a platform where investors and retail investors
can submit questions in the run-up to the brand’s earnings
reports. People who wouldn’t necessarily be able to access
Fubo’s CEO or CFO can ask questions of management. This
allows Fubo to tap into the pulse of what retail investors care
about. Questions are surfaced and answered on earnings calls.
Sharing Perks
The Share Perks program is a partnership formed with TiiCKER.
At a high level, it’s a perks program based on certain thresholds
of shareholder ownership, and it’s tiered in such a way that
different levels command their own perks. For example, the
Share Perks program provides new subscribers (1 share
required) with an initial discount off Fubo’s base channel plan,
Fubo Pro, as well as offers shareholder exclusives (100+ shares
required), such as early access to Fubo features before they are
released to the public.
“It’s very early,” explains Sternberg. “We just launched this
initiative, and we’re still learning as we go and assessing its
impact. We’ll continue to expand the program — we have that
flexibility. We can change up the perks.”
Loyalty Management™ | February 2024 | loyalty360.org 35
BRAND FOCUS

Flexibility is critical to the program’s success. Modifying the

program as the brand gets a sense of what’s resonating and QUICK-FIRE Click here to view the
Quick-fire Questions, Ft.

QUESTIONS*
what is not will determine the best offerings for shareholders. Alison Sternberg, Fubo
The program will continue to be refined and brought to scale as
needed.
What is your favorite word? Excoriate.
“Finding new audiences is an expensive and uphill battle for many
public brands,” says Jeff Lambert, founder and CEO of TiiCKER.
“Big names like Fubo are demonstrating the value of offering
compelling perks to get their everyday investors — an already What is your least favorite word? Moist and Mani-Pedi.
loyal audience — excited about their products.”

What excites you? Music.

Increasing Ownership Commitment

Previous studies have determined people who own shares in a What do you find tiresome? I hate emptying the
company are often more loyal — they become advocates and dishwasher.
promote brand love. Creating that deeper level of engagement
is vital to Fubo. There is a desire to build a positive momentum
What’s your favorite sport to watch? Hockey.
around advocacy for the brand and a connection to the platform.

“Loyalty programs can do exactly that,” affirms Sternberg. “It What’s your favorite team? The New York Rangers.
also gives us the opportunity to connect with these cohorts and
constituents to understand more about what matters to them and
what they’re interested in. It creates a dialogue.” I’d be in a band, or I’d
What would you like to attempt be a roadie for a band.
if you didn’t have your current job? Honestly, I would love to
This dialogue can be valuable for both sides of the equation. host my own talk show.
Sternberg sees the relationship with TiiCKER as helpful in terms
of providing precedent and examples of what other companies I don’t think I could be
What profession would you avoid?
have offered, as well as what some of the tiering might look like a barista.
when the program is rolled out. TiiCKER can offer a template as
guidance as to what makes sense to offer program participants, Who inspired you to become the
person you are today? My dad.
but the company is not particularly prescriptive about it,
something that Sternberg appreciates.
What do you typically think When can I go
about at the end of the day? lie down again?
Measuring Success
How do you want to be remembered
Affectionately.
Success can be measured in many ways, and Fubo leverages the by your friends and family?
data it collects to determine if an initiative has met expectations.
Sternberg believes there are tangible and intangible avenues that *Inspired by the quick-fire portion of “Inside the Actors Studio.”

can provide direction.

“If you look over a certain period of time since a program was
initiated, you can likely get some visibility into increases in retail
holdings that could be ascribed to people who participated in
the program,” she explains. “That certainly is representative of
success in a more tangible way. Over time, the benefits of unaided
brand awareness, where we become part of the conversation,
would become measurable. I think that exists today to some
extent, but capturing mind share is also something that we want
to drive through the program.”

Visit https://www.fubo.tv/

36 Loyalty Management™ | February 2024 | loyalty360.org Loyalty Management™ | February 2024 | loyalty360.org 37
TECHNOLOGY & TRENDS
Building Proprietary Loyalty
Systems In-house:
Technology Experts Weigh In
By The Loyalty360 Team
In today’s loyalty landscape, brands can become overwhelmed by
the number of technology solutions available promising to meet
their unique needs as they build out organizational and loyalty
strategies. Working with existing technologies and platforms within
the organization adds another layer of complexity. The question of
whether to fully develop a solution in-house or to partner with a
technology company specializing in solutions that support a brand’s
loyalty needs while assuring an enhanced customer experience is not
an easy one to answer. Different brands should thoroughly vet all
options before drawing on their own resources to produce in-house
solutions.
Loyalty360 spoke with supplier members and loyalty strategy experts
about possible benefits and pitfalls, if the strategic value of developing
and maintaining systems in-house outweighs the cost, and the
potentialities of implementing a hybrid model.
Article contributors:
• Cassie Preston, Director of Client Services, CRM & Loyalty, Baesman
• Sameer Garde, CEO, Capillary Technologies
• DuWayne Mahlen, Jr., VP Information Technology, Lacek
38 Loyalty Management™ | February 2024 | loyalty360.org
Benefits vs. Risks
Several major brands are developing and implementing their
own technology solutions instead of relying on vendors to
do the job. Recent in-house or home grown tech products
include mobile apps, kiosks, artificial intelligence (AI) modules,
and even entire operating systems. Brands have stated that
investing in proprietary technology will enhance analytics and
personalization and support the continued digitalization of
company operations.   proprietary systems.
Bringing technology in-house may initially appear to offer
greater control; however, in many cases, it can lead to
unforeseen challenges, particularly when technology is not a
core aspect of a brand’s business. The development of a robust
technology platform with the necessary security and scalability
features demands a considerable level of technological
expertise.
“One of the primary drawbacks of internalizing technology
is the potential to overlook the innovative contributions
that specialized technology-first loyalty solution providers
can offer,” explains Capillary’s Garde. “The right provider with
significant experience in AI-driven innovations can deliver a
strong platform alongside a well-defined roadmap encompassing
all the essential functionalities needed to establish and operate a
profitable loyalty program.”
It’s no secret. Brands today have numerous tech solutions in
their tech stacks, and many are centered around managing the
customer experience, which means they require integration with
one another.
“Building a tool in-house, whether to manage your data or act
on it, can be cumbersome,” says Baesman’s Preston. “But in
some cases, it can be beneficial. A business-driven roadmap and
prioritization, the ability to integrate with other systems, and cost
savings on hours-based work with an outside party are benefits
to building in-house.”
Still, she notes, building in-house doesn’t come without risks.
Data security and privacy have become increasingly important,
so if brands decide to build in-house, they’ll be expected to
take on and manage the associated risk. Internal alignment on
prioritization and capacity constraints can cause bottlenecks for
build and future enhancements. Integrations with other software
or hardware providers in the tech stack often require external
vendor engagement, which can also delay product development.
Moreover, adding to a company’s headcount to build internally
can be expensive.
Lacek’s Mahlen echoes the sentiment on cost. “The main potential
risk is cost. The necessary expense and expertise to support
technology functions may be unsustainable. Brands won’t want
to deplete resources that could otherwise be earmarked for
innovation.”
Mahlen goes on to say that a benefit to bringing technology in-
house is control. Any technology strategically important to the
core business should be supervised closely. Bringing technology
in-house allows the brand to maintain complete control of its
intellectual property, data (including customer data), the location
of storage and processing, and the direction of innovation.
Resources and Expertise
While deliberations are being made, brands must determine
the resources and expertise required to develop and maintain
Mahlen points out that some brands may already have the
hardware and expertise required to create a proprietary system.
However, to bring technology in-house, they need to establish a
host of other capabilities — software development best practices,
code management, quality analysis, security reviews, load testing,
documentation, and customer support.
“Brands must carefully consider whether the strategic value
of developing, hosting, maintaining, and supporting their own
solutions is enough to outweigh the costs,” cautions Mahlen. “Will
those solutions provide enough strategic differentiation to make
it worth it?”
Loyalty360 Expert Panel
Cassie Preston Sameer Garde DuWayne Mahlen, Jr.
Baesman Capillary Lacek
Technologies
Garde believes a brand choosing to develop its own system
will need to attract top-tier engineering talent capable of
constructing a proprietary system that operates efficiently at
scale, exhibits adaptability to address diverse use cases inherent
in business operations, and adheres to stringent security
standards. He warns the endeavor can divert attention and
resources away from the core business, essentially necessitating
a significant shift toward technology platform development — a
distinct and demanding venture in its own right.
However, if a brand decides to move forward with designing and
developing the system in-house, it’s imperative for a strategic
brand leader to drive the business requirements behind what’s
being built. Preston explains that other headcount and resources
from the team in IT, project management, product management,
and beyond may be needed to maintain an ongoing roadmap for
the product. Loyalty platforms require ongoing enhancement
to keep up with necessary integrations and servicing as loyalty
programs adapt to meet evolving customer expectations.
“External partners can be helpful in identifying strategies that
consider the industry and market trends that may influence
roadmap items,” she adds.
Hybrid Models Are Possible
Loyalty360 asked the technology experts if they anticipated
brands embracing a hybrid model using a mix of in-house and
outsourcing solutions in 2024. Preston asserts it’s already a
reality.
“Brands have several different ways they look at technology —
some build fully in-house solutions, some outsource everything,
and most ultimately rely on a healthy mix of those options to do
what they need to do,” Preston says.
Indeed, some tech providers offer a base configuration,
which allows for customization down the line by the brand’s
technology teams. However, Preston reminds brands that there
are significant items to consider when outsourcing access and
integration.
“You don’t want to be in a position where you’re unable to
access the solution or the external team,” Preston continues.
“Integration is also key, especially from a marketing standpoint.
Loyalty Management™ | February 2024 | loyalty360.org 39
TECHNOLOGY & TRENDS
The systems in your tech stack must talk to each other and
pass information about the customer safely and securely for
marketing teams to create the customer experience that drives
engagement and purchasing behavior.”
Garde also sees a hybrid model as a viable option for brands,
wherein they maintain a modest in-house technology team
or collaborate with a trusted consultant well-versed in the
intricacies of the field. This type of approach ensures seamless
integration while outsourcing the heavier lifting to specialized
solutions providers. He explains that large enterprises, in
particular, can benefit from this approach, as it allows them to
engage actively in technology-related matters while entrusting
the implementation and execution to seasoned experts.
Mahlen offered that one way to achieve a hybrid model is for
brands to focus on developing a proprietary interface and
user experience that could then “bolt on” to open, API-driven
outsourced solutions that are built, maintained, and supported
by specialist third parties.
“Another way brands can leverage outside expertise to support
their solutions is in outsourcing specific required functions, such
as customer support,” adds Mahlen.
Leveraging the Power of External Partners
Even when a brand chooses to develop systems in-house,
there is still ample room to work with an external technology
partner to leverage expertise and take advantage of additional
resources.
The right partner can assist brands in understanding the pros
40 Loyalty Management™ | February 2024 | loyalty360.org
and cons of certain technology platforms, what to look out
for in the onboarding process, and how to prepare business
requirements and a strategic roadmap for any tools a brand
may choose to develop internally.
“We commonly support brands who have long-term
engagements with other technology providers, so we’re
familiar with how much of the customer relationship
management and loyalty technology works,” says Preston.
“We also support integrations that a brand’s current
providers can’t when building in-house.”
To this, Mahlen adds that the negative effects of
protectionism — limiting integrations and increasing costs
due to data conversion and mapping — can be mitigated
if external partners develop standards and universal data
models to guard against them.
“Interoperability is key, especially if the in-house solutions
must work with other software or systems,” emphasizes
Mahlen.
Even when brands invest in developing their own technology,
the reality of an interconnected world makes it nearly
impossible to completely avoid reliance on external partners.
Whether it’s for in-depth engagement solutions, specialized
AI capabilities such as hyper-personalized segmentation, or
providing valuable insights and guidance to marketers, there
will inevitably be situations where external partners can
contribute effectively.
“It is prudent to carefully consider the available options,
maintain open avenues for partnerships, and navigate the
path ahead with flexibility and adaptability in mind,” finishes
Garde.
Loyalty Management™ | February 2024 | loyalty360.org 41
 TECH TALKS
2024 Trends: Brierley on Leveraging AI in Customer
TECH Loyalty and Prioritizing Differentiated Member
TALKS
Experiences
Click here to view our Loyalty
Live interview with Don Smith,
Brierley - Capillary
With loyalty professionals facing increased competition in the customer
loyalty space, it is critical to understand the right direction to place
energies and resources while taking advantage of technologies and
ideas that can elevate the customer experience, making a brand stand
out. Certain hot trends in customer loyalty tempt marketers with
seductive solutions, but which are worth pursuing? How do brands keep
and build momentum, tapping into the best fit and low-hanging fruit
consisting of high perceived value and the lowest cost?
Helping clients design and enhance customer loyalty programs
worldwide, Brierley — a Capillary company — works with brands
seeking to understand which ideas to pursue and how to improve
marketing and communications strategies by leveraging financial
modeling, data and analytics, research, and customer engagement
mapping.
Mark Johnson, CEO of Loyalty360, spoke with Don Smith, EVP, Chief
Consulting Officer at Brierley, about defining and measuring success,
trends Brierley notes for 2024, and what generative AI means for
brands.
A Healthy Loyalty Evolution
Many brands faced customer loyalty challenges in 2023. As a
result, some brands revamped their customer loyalty efforts and
restructured programs, adding functionality and changing benefits.
For some brands, new initiatives and restructured tiers were rolled
out and were well received. A few brands did not fare as well, like
Delta.
42 Loyalty Management™ | February 2024 | loyalty360.org
Brierley witnessed the same, and Smith believes it’s part of healthy
loyalty evolution.
“We believe that if your loyalty program is going to stay fresh, you
have to continually inject new elements, experiences, and features
to revitalize it,” affirms Smith. “It stays ‘brand fresh,’ and the member
is more likely to stay engaged in the program.”
In its consulting practice, one of the things Brierley focuses on in
redesigns for some clients is determining the most desired
behaviors that need to happen for the brand. With clients, they
ask, what are the highest margins, highest growth, or stickiest
categories? Can you find ways to recalibrate the program formally
or informally to drive those desired behaviors and guard against
dilution?
A lot of time is spent on changing the program structures.
The company also discusses gamification with clients.
“Gamification sometimes gets a bad name because people think,
‘Oh, that’s spin to win. That’s playing a game.’ That can be one
element of it, but done correctly, gamification is about putting a
challenge out there and trying to drive people to stretch their
behavior, move to their next best action, and appeal to their
sense of accomplishment and competition,” explains Smith.
Smith advises letting consumers believe they are gaming the
system, as they might perceive they’re “getting hooked up” or
“double dipping.” Done correctly, it’s a win-win. Brierley
continuously auditions different augmented reality (AR) solutions
where it makes sense, such as a virtual mirror in cosmetics and
fashion industries.
“I’m big on leaning into biometric solutions, whether that’s facial
recognition, optical, or other. They are the future of how customers will
securely do business, and loyalty programs would do well to innovate and
adopt those,” asserts Smith.
Every program Brierley works on involves zero-party data. Discussions
with customers emphasize the importance of collecting profile data from
customers and honoring a social contract to use it in a meaningful way.
“If you do that, you’ve got something special,” says Smith.
The Challenges of Defining and Measuring Success
At times, when brands add iterative technologies into their technology
stack, employ gamification, or begin to leverage zero-party data
opportunities, they struggle to measure the ROI of their efforts and
how it impacts the ROI of the program.
Smith acknowledges that many clients with existing programs come to
Brierley not knowing what is working and what is not. They want to
know the ROI, but more importantly, they want to know if they’re moving
the needle on desired behaviors.
“Our first rule of thumb before you even worry about an ROI model or
try to go deep is to focus on the theory of action that underlies the
program changes you made,” says Smith. “In other words, if you made
structural changes or enhancements to the program, it was probably to
drive certain desired behaviors.”
Brands should then quickly start making comparisons, pre- and post-
change. If new features were introduced, are customers using them?
What’s the take rate? What’s happening for those customers who are
using them? Do they try it once and drop it, or does it contribute to
stickiness? And finally, should the brand be propagating those features
and adopting more?
The low-hanging fruit is the opportunity to see if desired outcomes
happened. After that, brands can make adjustments. For Smith, the
number one reason to make changes to a program should be to
recalibrate it in a way that enhances the member experience. Brands
may want to fix profitability — which is valid — but if they’re not doing it
in a way that creates a more impactful and engaging experience for the
member, it’s probably not going to work.
“One of the first things we recommend doing is measuring your rational
and emotional loyalty,” says Smith. “Look at whether customers trust the
product and the brand, what they’re saying, and what the net promoter
score (NPS) is. That’s rational. Then, go deep on emotional loyalty. If
you’ve changed your program, you want to ask questions to determine
how much customers love your program.”
Brierley developed the Brierley Loyalty Quotient (BLQ), a framework
that captures and analyzes both rational and emotional loyalty. It’s the
first pulse that the company takes pre- and post-program changes for
brands. Brierley needs to see emotional loyalty tick upward as a result of
program changes without undermining rational loyalty.
After these actions, brands can delve into customer loyalty program
ROI. It takes time to get a clean measurement of ROI change.
“Brierley-Capillary is a big believer in triangulating the research design,”
says Smith. “We want to do cohort analyses — preferably with member
and non-member data where possible, nearest neighbor algorithms,
and match it up with econometric approaches that do the best of
modeling to track those changes and treat it like an interrupted
time series from pre- and post-program change. This is what we
want to do to truly measure that effect, but brands can’t expect it
to happen overnight. It requires patience and a methodology to
consistently measure and track ROI.”
To Measure Efficacy, Focus on Metrics
Brands can have difficulty in measuring the efficacy of customer
loyalty programs, and Smith sees a customer or member-centric
component, as well as indirect indicators that can point to how
well a program is working. The first step Brierley asks clients to
take is to do the BLQ and measure rational and emotional loyalty.
This is crucial to learn where a brand may be over- and under-
indexing relative to its competitive set.
“Contextualize emotional loyalty with the competitive set with
which your current customers are splitting,” directs Smith. “And
they’re almost always splitting — understand that and what you
have because you should be trending upward and using your
loyalty assets to shore up your program.”
Smith’s second number one metric is the BALO — the “becoming
active to lapsing out” ratio. When a brand thinks about the cost of
acquisition, it should be looking at the health of its funnel — who’s
coming in and joining versus who’s dripping out. Brands need to
know if they are “hiring” and sourcing more profitable members
than they’re losing due to attrition.
“My third metric would be retained member velocity of the
customers that are sticking with you period over period, year over
year, quarter over quarter,” says Smith. “Are they spending more,
or are they spending less? Are they going deeper into your product
and service hierarchy? Or are they becoming one-trick ponies?
Getting a pulse on what happens in that retained member
audience is essential to understanding the health of your program.”
Lastly, Smith observes a profitability and ROI piece that is critical.
A focus on customer profitability is one of the things Brierley
emphasizes. Too often, the company sees programs labeling
people as high value, but they are contributing the lowest margin
behaviors and, in many ways, gaming the system or program.
Every Year Brings New Requests
Brierley sees an increased focus on truly understanding share
of wallet and potential for share shift. The company spends
time going through Voice of Customer (VoC) data to get a
representative sample of members and customers to understand
where else they shop and why. What’s the brand’s true right to win
for share shift and conversion? Modeling helps make those
determinations.
“We’re seeing a lot of emphasis on non-transactional engagement
rates to understand all the ways a customer can interact with a
program or a brand without spending money,” shares Smith.
This includes taking advantage of features in a brand’s app,
looking at product reviews, going on the website, watching videos,
and playing games. Brands must understand how those
non-transactional engagements are working and which ones are
Loyalty Management™ | February 2024 | loyalty360.org 43
 TECH TALKS
the most appealing so that they can lean into them or come up with a
strategy around them.
Brierley emphasizes product and service indexing, and Smith believes
those reports and views are becoming essential to narrow down to the
stickiest products and services a brand is selling.
“They are the gateway to a greater customer relationship and
understanding what satisfied customers are buying, compared to
what less satisfied customers may have purchased,” says Smith.
“This is critical to understanding how you can recalibrate
relationships and lean into best products.”
At the end of the day, brands are going deeper into the metrics.
They’re not simply looking at retention. They want to see retention
broken out within their product category and hierarchy.
Trends for 2024
Certainly, experiential rewards and experiences, in general, are big
trends for 2024, but reward choice is significant — customers want
more control over how they earn and redeem as well as how they are
rewarded.
“An outshoot of this is digital wallet propagation,” says Smith. “Even
when I’m in an airline program, and I’ve already hit my status for the
year, I love that they’re depositing new things into my wallet that I can
consume at different milestones.”
Smith acknowledges that generative AI is critical, and it impacts
generative loyalty as well — leveraging AI to make programs better.
“If you do not have a clear path for incorporating artificial intelligence
into your loyalty program, you’re going to be left behind,” warns Smith.
Phygital continues to increase in importance, and brands need to find
ways to take digital assets and reinforce physical goods and in-store
experiences. There needs to be synergy. Programs are becoming
increasingly app-based and hyper-mobile. Smith also predicts a rise in
coalition loyalty.
44 Loyalty Management™ | February 2024 | loyalty360.org
“Brands are approaching it in a much more consumer-centric and
friendly way. It’s win-win; the rising tide of loyalty across brands
lifts all boats,” says Smith.
He sees more suppliers and CPG brands as wanting to be a part of
loyalty programs. They’ll be willing to sponsor and fund programs
to gain data insights and build customer relationships. Loyalty
professionals should prepare for a whole new world ripe for
authentic partnerships enabled by coalitions.
Furthermore, adopting an idea, practice, or technology simply
because it is a trend is a poor choice. Brands need to produce a
business case for the adoption that’s tied to a financial model.
Desired behaviors must be defined alongside what outcomes
will result. Testing and engaging in VoC research are critical.
Low-hanging fruit consists of high perceived value actions (on
trend) that will ultimately be the lowest cost. A high perceived
value and a low cost could indicate a winning trend.
Standing Out with Differentiated Member
Experiences
While a “sea of sameness” in customer loyalty can persist, Smith
explains that when Brierley first partners with a client on design,
they look at the brand and the program structure, as well as the
consumer experience. Using a spatial map, the value proposition
versus how many experiential, fun, and engaging elements are
present are scored.
“It’s no surprise that in a particular vertical, there’s one leader
and many copycat programs,” explains Smith. “What truly sets a
program apart is offering the most differentiated member
experiences.”
Loyalty programs set up data assets and enable relationships
with members and consumers. The true mark of a good program
is consuming those data assets and facilitating special
opportunities — talking to the customer, giving the person a
chance to try something new, mapping in additional benefits and
perks that are truly tailored to proclivities and what the
customer wants and needs. Brands can have a similar-looking
program structure but offer a completely different member
experience — constantly pulsing with new opportunities.
“Creating better experiences will produce better outcomes for
your business,” finishes Smith.
Leveraging AI in Customer Loyalty
For Smith, AI represents the science of producing machines that
can think like humans. They can be smart, recognize patterns,
and exercise decision-making and judgment skills. AI can ingest
massive amounts of data that humans cannot.
“Generative AI is the buzzword that’s capturing the lion’s share
of attention right now,” says Smith. “Generative AI is using AI to
create text and images — media content — using generative
models.”
Generative models are simply algorithms that learn the structure
and pattern of input or training data — similar to the way predictive
models were manually built. However, generative AI means that
brands can generate new models and constantly cast new data. This
enables brands to look at response rates and what is happening while
algorithms continuously adapt and build new data sets, fine-tuning
and optimizing parameters and results. They can audition multiple
methods for looking at it.
“It’s a constant evolution in perfection,” adds Smith. “As loyalty
marketers, we’ve got something almost no one else has. We have the
best set of data assets tied to a customer. Customers are increasingly
sharing what they love. We have first-party data from transactions
and zero-party data from profile attributes. There are third-party data
and contextual variables. All of this is tied together.”
When it comes to leveraging AI, everything needs to start with theory
and strategy. A marketer’s AI focus needs to be driven by what they’re
trying to do for their brand and understanding what is needed to do to
grow a customer — making them more profitable and more involved
in products or services, creating true lifetime loyalty. Everything
invested into that mix will be amortized over an extended customer
lifetime value.
“Sitting down and asking, ‘What are the desired behaviors? What are
the outcomes those behaviors will lead to as we go forward?’ That’s
probably one of the most important things that we work on when we
do this with clients,” says Smith. “Laying that theory of action out is
absolutely essential.”
Looking for Opportunities
Brands have much to consider when looking for opportunities to
leverage in the field of customer loyalty — strategy, technology,
organizational buy-in, etc. In more fortunate cases, sometimes a brand
can uncover a quick win to improve the efficacy of its programs.
Listening to customers and taking a recalibration are key. Brands must
understand quickly what a customer likes about the brand and its
program. That’s where opportunities can be discovered.
“I counsel clients to not boil the ocean with loyalty — don’t assume
that you can do everything overnight,” asserts Smith. “Focus on some
things that will have a clear impact on your business, lean into them,
optimize them, get them into market, and see how they work. Then,
fix them, recalibrate them, get better, and learn what you can rule out.
Simple adoptions and experiences are often what gets moved into
client programs.”
While leaning into personalization and hyper-personalization is a
priority for almost all brands, exercising restraint in messaging is
crucial. Multiple emails sent daily clutter a customer’s inbox and can
get lost in the shuffle. Spray-and-pray marketing is not going to work.
A little bit of restraint and discipline will enable what brands really
want to do, which is hyper-personalization. Done correctly,
hyper-personalization is the next thing that happens, and this leads
to “clienteling.”
“Clienteling is the in-person connection with the store associate or the
customer service representative,” explains Smith. “Combined with AI
and hyper-personalization to understand what the next best ac-
tion is for the customer — what they like, or any problems they’ve
had — and serving all that up empowers an associate at the point
of human interaction. That’s the sweet spot.”
This is what the brands Brierley works with are embracing as they
seek to become more phygital. Brands want to get people back
into the stores, and they need to empower the people who are the
true face-to-face brand representatives.
Engagement Opportunities Beyond the Transaction
As the economy ebbs and flows and buying patterns adapt,
keeping customers involved and engaged without always
pushing a sale can be challenging for many brands. Brands can
evolve strategies to encompass what matters most to customers
through sustainability measures, messaging, and corporate social
responsibility (CSR) initiatives. Still, sales need to be optimized.
There must be a balance, and brands need to determine how to
best navigate customer engagement.
For Smith, it comes down to relevance and a commitment to
creating a good customer or member experience.
“It can’t always be about the next sale. If a customer comes in and
makes a big purchase, we ought to be empathetic and understand
that was probably a big deal for the customer,” begins Smith.
“They made a decision to do something with you. The next
communication should not be, ‘Hey, here’s a coupon for 10% off.
Come back again.’ Maybe they just made a big purchase.”
Instead, a more authentic dialogue might be a message sharing
how other customers are using the product. For example, if the
product was a sweater or a belt, perhaps the brand might suggest
ways to produce a certain look through styling. Smith sees AI as
helping brands identify need state — taking advantage of what
customers need when they need it and knowing that buying
patterns may change.
“If you’re doing AI right, along with smart marketing, those things
should be synergistic, identifying patterns and recalibrating,” says
Smith. “You cannot just set course on one channel and assume the
best route is hammering home the discount. It’s a path to dilution,
and it often feels tone deaf.”
Learn more at https://www.brierley.com/
Loyalty Management™ | February 2024 | loyalty360.org 45
BRAND FOCUS
Hooters: Customer Click here to listen to our
interview with Bruce Skala,
Hooters
Engagement, Brand
Partnerships, and the
Role of Today’s CMO
By Mark Johnson, Loyalty360
Hooters is a globally iconic, image-based, casual dining
restaurant brand founded in 1983 in Clearwater, FL. The
company consists of nearly 370 stores in total, which include
domestic and international franchisees. The brand’s footprint
counts 42 states in the U.S. and 29 countries and endeavors to
serve great food in a fun environment.
Hooters’ tagline is Hooters Makes You Happy — and that’s the
brand’s goal. Hooters wants to give its customers a break from
the everyday routine and offers an escape featuring cold beer,
chicken wings, and the legendary Hooters Girls, who deliver
memorable customer experiences in a fun and engaging way.
Mark Johnson, CEO of Loyalty360, spoke with Bruce Skala,
Chief Marketing Officer (CMO), HOA Brands, about how
the responsibilities of the CMO have changed, successful
partnerships with sports figures, and leveraging social media
influencers to drive sales.
See also: Hooters: Creating a Culture of Empowered Employees and
Elevating the Customer Experience
The Evolving Role of the CMO
The role of chief marketing officer is evolving rapidly in today’s
customer loyalty landscape. In the last five years, the role
that typically focused on creative elements is now prioritizing
analytics and technology alongside a more traditional
marketing perspective.
46 Loyalty Management™ | February 2024 | loyalty360.org
Skala has witnessed these changes. He notes that in the past
two years, it’s become increasingly important for the chief
information officer (CIO) and the chief marketing officer to
form a partnership. He agrees that data, utilizing IT, and the
capability of IT are all critically important parts of marketing.
“I rely on data. I rely on information to make smart decisions.
The analogy we use is this: if it’s a thousand-piece puzzle and
we have 600 pieces, we know what the picture is going to look
like,” says Skala. “Let’s go after it. Let’s take some directional
steps, and we can adjust as needed.”
Marketing needs to work with IT in terms of layering in
priorities. IT will have its own list of highly important projects,
from POS to tracking to the technical aspects of the business.
Marketers need to factor into their bandwidth of opportunity
what they are working on at a given time. Skala’s team works
closely with the CIO and the technical managers responsible
for providing his team with the data needed to make smart
decisions while ensuring the right steps are in place to track
initiatives before they are executed.
Skala acknowledges that adding new technologies can be a
challenge for some brands.
“You don’t have to create the wheel right now,” he says. “So
much is changing, and there are many success stories out
there. Keeping a finger on the pulse of what’s happening in the
marketplace and in the tech world is part of what we do. We
plan to expand our efforts based on best practices.”
Loyalty Management™ | February 2024 | loyalty360.org 47
BRAND FOCUS

“We wanted to partner with him,” affirms Skala. “It made a lot of
sense from a brand perspective and a NIL (name, image, likeness)
perspective, extending what we’re doing beyond football into golf
and college golf.”

The partnership was bound to get some attention. Skala reports

that photos of the Dalys and Hooters Girls went viral.

Looking at Hooters’ core demographics and noting their interests,

the brand determined a significant interest in NASCAR. Driver
Chase Elliott has served as one of Hooters’ primary sponsorships
for quite some time. In fact, the restaurant chain is the sponsor
of Elliott’s Hooters-branded number nine car. The partnership
between the brand and Elliott helps Hooters reach the NASCAR
audience — they are loyal and will engage with brands who
support the sport.

“Chase has been named NASCAR’s most popular driver for the
past several years,” shares Skala.

To remain relevant in the world of sports, Hooters has embraced

Challenges Facing Today’s CMOs
One of the biggest challenges Skala sees for CMOs is how the role
has moved from a narrow lane to encompassing much more in a
campaign or a program. For example, there is a shift from focusing
on a 30-second TV spot as a part of mass communication practice
to determining what kind of content should be created that will
engage current and future guests in a meaningful way.
“For me, ‘a meaningful way’ is how that engagement links into
loyalty,” explains Skala. “How does that link into check average or
limited-time-offer menus? How does that link into a competitive
set?”
As an image-based brand, Hooters leans into the fact that the
brand can talk about more than food. Hooters leverages its
strategic asset — its most important strategic asset — the Hooters
Girl. This iconic figure can tell the brand’s story.
This means social media is extremely important for Skala and
Hooters. Leveraging the reach of employees, as well as the brand,
is an important role for the CMO to understand. It’s about tapping
into the true strength of the brand’s organization.
Increasing Engagement with the Customer
Hooters reaches its audience in many different ways. First, local
stores can market to their unique customers. What is happening
in the local community matters more to many than on a mass
scale, and customers like to learn what’s new at “their Hooters.”
Local stores run their own social media accounts, and they
can tell their own stories: “Come down for karaoke night!” or
“Join us for a car show!”
Next, there are regional opportunities, followed by national
and global. The brand stacks its tactics and messaging to
reach its consumers in the way they want to interact.
“Understanding what’s important to them is a big part of
it,” says Skala. “If you like showing up on a Saturday night at
10 o’clock to watch UFC, I’m going to know that. I’m going
to reach out to you, and I’m going to target my messaging
accordingly. Communications sent by Hooters must be
delivered in a fashion that’s relevant to the customer.”
Customer Engagement and Sports-focused
Initiatives/Partnerships
Skala acknowledges that Hooters is a fun and irreverent
brand, and that’s the approach he and his team take.
“We have a few special brand ambassadors,” Skala begins.
“John Daly is one of them. He’s an iconic, not-your-standard
professional golfer by any means. He is ‘off the cuff,’ fun, and
someone who relates to our consumer. He is a great global
brand ambassador for us.”
Hooters also engaged John Daly’s son, John Daly II, in an
endorsement deal in 2022. It made sense for the brand to
engage with the younger Daly as his opportunities in golf
increased.
several NIL opportunities. However, the brand’s approach to
leveraging an NIL relationship was executed in a “Hooters’ way.”
Instead of approaching and sponsoring one star athlete, the brand
decided to celebrate the “unsung heroes” of college football: the
offensive line.
“These are the guys who don’t get a lot of credit but do much of
the work,” explains Skala. “If you go into a Hooters restaurant and
look around at who’s sitting in the store, it’s the offensive linemen.
It made a lot of sense for us to say, ‘We’re not going to sign up only
one offensive lineman. We’re going to sign up the entire offensive
line.’ We pulled them from certain schools near our restaurants
that matched our intentions from a demographic standpoint. We
gave those big guys love and attention.”
For the offensive linemen initiative, Hooters filmed different
types of content in its restaurants. The players, reports Skala, had
a great time eating and earning money. It was a win-win for the
brand and the players.
Partnerships Can Help a Brand Remain Relevant
Successful partnerships require a good return on investment
(ROI), and Skala sees that ROI as appearing in several different
ways. The first is a true return on sales. In other words, the brand
spent X and received Y as a return on sales. That’s always the
guiding point Hooters follows. The brand wants to drive sales.
“We’re not doing this [forming partnerships] for PR purposes,”
says Skala. “But PR is an important part of it. Keeping our brand
relevant and in front of a potential customer who likes wings
and goes to sports bars — but maybe hasn’t been to a Hooters
in a while — is also an opportunity to speak to that younger
demographic in a way that is meaningful to them because they’re
following a sports team.”
Hooters’ decision to highlight the offensive line was hugely
popular. In fact, Hooters was named Brand of the Year during the
NIL Awards at the College Football Hall of Fame in Atlanta
during the second annual NIL Summit in 2023. Hooters beat
out big-budget brands like adidas, H&R Block, Kellogg’s,
Raising Cane’s, and Wrangler.
“We were happy to be nominated,” says Skala. “When we
were announced as the winner, it was validation of what
we’re doing — that a good idea can trump budget sometimes.
Make sure your idea fits with your brand and execute it in a
way that it’ll grow and go viral.”
Hooters earned much press because of its offensive linemen
initiative. Local media and sports channels picked up the
story. USA Today and ESPN also reported on Hooters’ unique
idea — it was something that hadn’t been done before.
“We can’t do a lot wrong — the name of the place is Hooters,”
shares Skala. “We’re a fun place to go, so let’s take some
risks.”
NIL is a way for athletes to earn rewards, and Hooters
wanted to make sure it delivered good corporate
sponsorship, providing a win for them. It’s also a chance for
athletes to build their own brand equity.
“We’re a global, iconic, well-known brand,” explains Skala.
“For someone to utilize us to build their own brand, in the
end, we all win together.”
At the end of the day, Skala and his team want to drive
traffic. The reason the NIL opportunity worked so well is
because Hooters is a great place to watch games, and the
brand helped provide the offensive line with a voice to
tell that story. While partnerships with brands like Chase
Elliott benefit Hooters on a national scale, NIL sponsorships
support the brand on a more local level.

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BRAND FOCUS

Influencer Marketing — Sales Over Brand Keeping Loyalty Programs Simple

Recognition
Many marketers would agree that ‘influencer marketing’ is a hot
buzz phrase. Brands like Hooters are looking for opportunities
to partner with influencers who can put brands in front of new
audiences — and for Skala, that includes people who may have
never eaten at a Hooters but have heard of the brand.
“Social media influencers can reach that same audience in an
effective, valid way because they already have followers,” says
Skala. “I think the true opportunity exists to reward social media
influencers by actualized sales — I’m more than willing to figure
out a way to reimburse someone when they’re driving sales for
the brand.”
Skala emphasizes that for Hooters, the global brand recognition
is already there. Social media influencers can best help the brand
by driving sales. One of the ways Hooters can measure influencer
marketing success is by creating a unique QR code or link that
can be integrated into the point of sale. The link identifies the
When Skala considers other customer loyalty programs
and efforts, he sees simplicity as key — in other words, not
having to figure out how to participate or navigate a complex
system. Programs need to be easy for customers to engage
with, and they need to understand what they are getting in
the way of benefits. Receiving perks, such as a free menu
item for completing a questionnaire, makes the experience
better. Programs must make sense for the members.
“We took our loyalty program, HootClub Rewards, and made
it easy, fun, and rewarding to interact with,” finishes Skala.
“We have a lot of people who are very loyal to our brand.
Getting that loyal fan base engaged with our loyalty program
is important for us.”
Visit https://www.hooters.com/

QUICK-FIRE
influencer who drove that transaction, and Hooters can give
credit back to them. Click here to view the
Quick-fire Questions, Ft.

QUESTIONS* Bruce Skala, Hooters

Technology and Data within Influencer Marketing

Campaigns What is your favorite word? Nimble.

It’s imperative that technologies leveraged by a brand integrate

well into existing systems or complement them to remain efficient. What is your least favorite word? Constraint.
For Hooters, that means technology must support tracking,
engagement, and content. Skala sees the brand as having a leg The opportunity to
up when compared to other casual dining restaurants because do things that are
Hooters is an image-based concept. The brand can feature more What excites you? not expected of us —
surprise and delight our
than wings and sandwiches. The iconic Hooters Girls — America’s potential guests.
cheerleader — can engage customers at the restaurant table,
online, and in social media. What do you find tiresome? Rinse and repeat
marketing efforts.
“Individual social media influencers do a great job for us in telling
the story, and technology helps us track the success of what we’re What is your favorite item on the Smoked Wings with our
doing,” affirms Skala. “From a social standpoint, an engagement Hooters menu? Spicy Garlic Sauce.
standpoint, and a sales standpoint, they’re all intrinsically linked.”
What profession other than your
For Skala and his team, the common denominator is demographics Sports agent.
own would you like to attempt?
and understanding everything from guest ages to the time of day a
particular age group likes to visit Hooters. He wants to know who
is in the audience, gender ratios, interest levels, and what those What profession would you avoid? Being an accountant.
guests like to drink, among many other considerations.
Who inspired you to become
“All that goes into the formula of who makes sense in terms of the person you are today? My parents.
picking a social media influencer,” says Skala.
What do you typically think The ability to disconnect
Next, the brand must consider how it wants to deliver its message and re-engage with my
about at the end of the day? family when I’m home.
in a relevant manner. To authentically speak on a topic — for
example, a UFC fight — the team at Hooters must understand the
How do you want to be remembered As a good guy who
sport and how to convey that watching it at the restaurant versus looked out for more
by your friends and family?
other locations elevates the viewer’s experience. Skala believes it’s than himself.
a better customer experience because the brand is credible and
engaged. *Inspired by the quick-fire portion of “Inside the Actors Studio.”

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BRAND FOCUS
Click here to listen to our
Subway: A Simplified interview with Mike Kappitt,
Subway
Customer Loyalty
Program Provides
a Better Customer
Experience
By Mark Johnson, Loyalty360 In 1965, Pete’s Super Submarines was opened in Bridgeport,
Connecticut, by Fred DeLuca and nuclear physicist Dr.
Peter Buck after the 17-year-old DeLuca asked Buck how
he should pay his college tuition. With an idea to make fresh
and affordable sandwiches for local guests, Buck invested
$1,000, and the two business partners sold 312 made-to-order
sandwiches on the shop’s opening day. In 1968, Pete’s Super
Submarines became Subway®. One shop grew into 16, and in
1974, DeLuca and Buck adopted a franchising model to meet
their 32-restaurant goal.
Today, the quick service restaurant (QSR) has established
locations in over 100 countries. With more than 37,000
restaurants and a franchisee network of over 20,000
entrepreneurs and business owners, Subway has grown from its
humble beginnings in Bridgeport into the iconic brand known
worldwide.
Mark Johnson, CEO of Loyalty360, spoke with Mike Kappitt,
Chief Operating and Insights Officer at Subway, about
developing the brand’s new rewards program, cultivating brand
love, and leveraging partnerships.
A Tasty New Rewards Program
Subway’s new MVP Rewards program is points-based with
three tiers: Pro, Captain, and All-Star. Guests can move through
the higher tiers and unlock additional benefits as they increase
their spend.
“It’s an intuitive program, one that’s easy for our guests to join,
earn, and redeem for rewards,” says Kappitt. “We’re proud of
the new program. It’s in its early days — we just launched it at
the beginning of September — but we like what we see so far.”
52 Loyalty Management™ | February 2024 | loyalty360.org
Brands often want to simplify and personalize programs, which
can be challenging. For Subway, the guest is kept at the center
of everything the brand implements, and Kappitt’s team knew
they had an opportunity to improve the existing program —
Subway MyWay®.
The brand prioritized understanding what guests wanted
and what they liked or disliked about the MyWay program.
Subway was also interested in learning what guests liked about
competitors’ programs and even loyalty and rewards programs
outside the restaurant industry. Kappitt’s team talked to
Subway’s franchisees and the in-store Sandwich Artists®. All of
this allowed the brand to construct a better program.
The MyWay program was based on badges, and it was difficult
for Subway’s guests to understand how to earn them. Sandwich
Artists struggled to understand as well. This confusion was
confounded by employee turnover at that level — keeping
employees well-trained and fully informed about the program
was difficult.
“It was incumbent upon us to create a much more intuitive
points-based program,” explains Kappitt. “It’s a common format,
and that’s where we went.”
The old program didn’t offer guests enough value compared
to what was offered in the competitive landscape. The
brand introduced tiers in the new rewards program and the
opportunity to benefit more with each level achieved.
As guests join the MVP Rewards program, they come in at
the Pro level and earn 10 points for every dollar spent. More
benefits are delivered when $200 or more is spent during a
year. This leads to unlocking the Captain tier, and guests will
then earn faster — 11 points for every dollar. Captain-level
guests get access to an exclusive Subway Swag store.
Loyalty Management™ | February 2024 | loyalty360.org 53
BRAND FOCUS
Guests spending $400 or more annually reach the top tier in
the program, All-Star. At this level, guests earn 12 points for
every dollar. Other niceties, such as free chips on Fridays with a
purchase, are delivered. All-Stars also receive more bonus point
days and extra “surprise and delight” perks.
The scale and the marketing budget available to the brand have
allowed Subway to unlock many benefits for guests because of
the relationships they already have. Plans are in place to deploy
them to the brand’s most frequent users through the program.
“We modeled it out financially, and we hit the sweet spot between
what the guests wanted and what we thought we and our
franchisees could afford,” says Kappitt.
Engaging and Training Employees
To ensure a successful rollout of the new loyalty program and to
give employees the confidence needed to explain the benefits
of the MVP Rewards program to customers, Subway developed
a solid method for training. Kappitt acknowledges that the
simplified program makes it much easier to educate employees.
The brand brought in its field teams and implemented a “train the
trainer” process. Training videos were created, and employees can
access the Subway University.
“We used every tool at our disposal to ensure that our Sandwich
Artists understood this program,” emphasizes Kappitt. “We’re
seeing it in our early results. Sandwich Artists display more
confidence in explaining the program and how it works to our
guests.”
Cultivating Brand Love
The Subway team has a unique ability to create initiatives that
inspire guests to demonstrate their extreme love for Subway —
whether getting a foot-long subway tattoo, changing their name
to Subway, or going up in a Subway blimp.
As part of the rewards program launch, Subway challenged its
most loyal program members to travel to Alaska and visit the
northernmost city in the U.S. Ten fans could earn a million points
and an automatic upgrade to All-Star, unlocking the program’s
best perks.
“We challenged guests to raise their hand if they wanted to go to
the most northern part of the world. Six thousand folks entered,
and we selected winners from that group,” says Kappitt. “Now,
we’re approaching the time of year when it’s quite dangerous to
travel in the most northern part of our country in Alaska. None
of the entrants went, but we put the offer out there, and people
were ready to do it.”
The Alaska challenge was a unique campaign, but Subway
engaged guests in another unusual initiative — especially in the
QSR/restaurant industry.
54 Loyalty Management™ | February 2024 | loyalty360.org
A rewards program matching opportunity.
Kappitt nods to the special environment and the culture
fostered at Subway — the team constantly strives to launch
creative ideas. For National Sandwich Day, the brand offered
consumers the ability to join its new program, and if they took
a screenshot of a competitor’s program, Subway would match
points up to 5,000 points per consumer. Participation in the
initiative was great, and the brand received nearly 2,000 new
member sign-ups.
Personalization Makes a Difference
The brand spent the last year investing in personalization
capabilities. The robust consumer data produced by the loyalty
program is incredibly valuable, and Subway is leveraging it.
“To be perfectly candid, we were behind for a brand as big as
Subway,” admits Kappitt. “We’ve spent the last year trying to
catch up. We’ve implemented a proper marketing tech stack that
helps us leverage data and deploy personalized emails.”
This emphasis on developing the right mar-tech stack informs
Subway’s media campaigns — both paid and through CRM
efforts. Already, the brand sees what fruits that data can bear
with the proper team structure. Building the organization and
tech capabilities was crucial. Early insights from guest data
indicate personalization efforts are going well.
Partnerships Can Make Programs Better
Subway has over 20,000 restaurants in the U.S. and thousands
of restaurants inside service stations — truck stops, gas stations,
etc. Kappitt points out natural synergies.
“Because our brand travels so well, we have such a large non-
traditional business, with a presence in C-stores and Walmart,”
says Kappitt. “There are almost 1,500 Subways inside Walmart
stores. There are opportunities we can leverage for our guests
with partners we already have.”
Kappitt and his team are also inspired by other programs,
particularly in the travel industry. Many elements in the MVP
Rewards program resemble some in the travel industry —
tiers, how benefits are unlocked as guests move up, and VIP
experiences. Kappitt likes programs that engage a lifestyle. This
provides more benefits for members beyond what’s offered by
the brand running the program.
“We look to do that with our VIP experiences — whether it’s the
guest experience inside the restaurant, when guests interact
with our brand outside of the restaurant, or even in those
interactions that happen outside our brand,” finishes Kappitt.
“We want to provide those experiences and be a part of the
consumer’s life.”
Visit https://www.subway.com/
Loyalty Management™ | February 2024 | loyalty360.org 55
BRAND FOCUS

In the journey from that first retail flower shop founded in

Manhattan by Jim McCann in 1976 to the gift-giving resource
giant known as 1-800-FLOWERS.COM, Inc., the trajectory of
the company has been one of growth. From that first location
and over the next ten years, McCann went on to open 13 more

1-800-FLOWERS.COM, Inc: stores. In 1986, the company secured the toll-free phone
number 1-800-Flowers and adopted it as its name. An exciting
opportunity to become the first merchant provider to appear

Helping Customers Build on AOL opened up in 1994. The company’s own website
went live in 1995, and in 1999, the company was renamed
1-800-FLOWERS.COM, Inc. in conjunction with its IPO.

Meaningful Relationships Builds The 2000s were one of expansion as the company began to
offer more products. Multiple digital and voice platforms were

Better Customer Loyalty developed in the 2010s, giving customers more ways to shop.
Today, gift-givers are presented with a broad variety of choices
as 1-800-FLOWERS.COM, Inc. offers products through more
than a dozen different brands encompassing gourmet food,
By Mark Johnson, Loyalty360 personalized products, and, of course, bouquets of flowers.
With such a wide selection of offerings, the company can serve
a diverse customer base that seeks to celebrate important
moments, give messages of comfort in difficult times, and
improve relationships with friends and family members through
the act of sending a meaningful gift.
Mark Johnson, CEO of Loyalty360, spoke with Jason John,
CMO at 1-800-FLOWERS.COM, Inc., about the brand’s
Celebrations Passport loyalty program, how communications
reflect enterprise values at the brand level, and how the
company’s focus on helping customers develop better
relationships builds better loyalty.
Growing Meaningful Customer Relationships with
Celebrations Passport
1-800-FLOWERS.COM, Inc.’s mission is to help customers
develop more and better relationships. The 17 brands under
the company’s umbrella — including widely recognized ones like
1-800-Baskets.com, Moose Munch, and Personalization Mall
— all have that same guiding principle. 1-800-FLOWERS.COM,
Inc., along with its portfolio, endeavors to facilitate customers’
relationships through gifting and by providing content and tools
to help customers eliminate friction points.
Celebrations Passport, 1-800-FLOWERS.COM, Inc.’s loyalty
program, allows the customer to take advantage of all the
offerings provided across its brands. The program enables
customers to unlock free shipping and avoid service fees on
items they want to give throughout the year and over holidays.
It also helps customers manage important dates and address
book information. Everything is centralized for convenience.
When a customer is ready to act on gift-giving desires,
Celebrations Passport makes it easier for them. Leveraging the
program is efficient and lowers the cost.
“The number one challenge is to educate people that we do
offer so many gifting choices through our brands,” says John.
“Many people are not aware that we have a portfolio ranging
from our gourmet food group brand, like Harry & David and
Cheryl’s Cookies, to our personalization group, which includes
Things Remembered.”
For any occasion and any recipient, Celebrations Passport
allows shoppers to find real value with diverse choices.
Educating the customer on what is available and about the core
benefits of the program is critical for success.
Once the education process happens and people understand
the breadth of 1-800-FLOWERS.COM, Inc.’s portfolio, the
company has an opportunity to solve problems for customers
throughout any gift-giving communication, relationship hurdle
they are trying to surmount, or relationship they want to
celebrate.
Making It Personal
For brands, personalization is a crucial part of customer
engagement strategies. John looks at it first from a traditional
standpoint, as if the customer is visiting a local florist shop for
gift-giving needs.
“The customer would probably have a nice dialogue with that
florist,” he explains. “The florist might even know the customer’s
family members. They would know what was ordered in
the past and be able to recommend the right product. If
the customer’s mother liked the color purple, they could
recommend a beautiful bouquet with a lot of purple flowers.”
This is the level of product recommendation 1-800-FLOWERS.
COM, Inc. seeks to provide to Celebrations Passport members.
The more the company can deliver on providing relevant
options, the more the customer will want to share. It becomes a
useful cycle of communication where the customer feels known
and trusts the brand.

56 Loyalty Management™ | February 2024 | loyalty360.org Loyalty Management™ | February 2024 | loyalty360.org 57
BRAND FOCUS
In addition to personalization and a variety of choices,
1-800-FLOWERS.COM, Inc. is, essentially, creating better gift
givers. This can enhance relationships.
The Beauty of Simplicity
1-800-FLOWERS.COM, Inc. knows the key to a successful
program is keeping it simple. There are three different tiers —
Gifty, Gifted, and Giftastic — that can be attained depending on
how many points have been collected. Points are earned through
purchasing, but also in other ways. Engaging with content allows
members to earn.
“We have a newsletter called Celebrations Pulse that goes out
every Sunday,” says John. “It’s authored by our CEO and founder,
Jim McCann. It focuses on relationships.
The beauty of the newsletter is that it does not try to sell the
customer a product. The content centers on relationships, the
loneliness pandemic, and the health and mental wellness side of
having relationships and staying in communication with friends.
Customers earn points simply by engaging with the newsletter
— reading online articles, liking them, and leaving comments.
1-800-FLOWERS.COM, Inc. has built a nice combination
of commerce and “beyond transaction” opportunities for a
customer to earn points and, ultimately, be inspired to grow more
meaningful relationships.
“The loyalty program has to fuel the company strategy, and the
company strategy is about relationships. The loyalty program
58 Loyalty Management™ | February 2024 | loyalty360.org
must reflect that,” emphasizes John. “The customer must get
value out of interacting with the program.”
The Challenges of Effective Communication
John cites communication as a key hurdle and something he
prioritizes daily. The number of diverse brands in the portfolio
in multiple places across the country with different time zones
and functional groups adds to the challenge. Communication is
the key to ensuring enterprise values are reflected in each of the
brands and that what the brands are trying to communicate to
the customer all adds up to the main vision of the company and
where company leadership wants to take the brand in the future.
“If there was one benefit that came out of the pandemic,” adds
John, “it’s the tools and technology that we leverage to make
people feel like they’re all connected.”
Communicating core values in a simplified form is imperative,
especially when there are so many brands in the portfolio. A
brand can take 1-800-FLOWERS.COM, Inc. core values and put
its spin on them. For example, if celebrations are a core value,
ensuring that a celebratory opportunity — like birthdays — is
there to leverage is key. Cheryl’s Cookies might focus on kids’
birthday parties, whereas Harry & David might not, as their
products may be more appropriate for adult relationships and
adult birthday parties. Thus, the content they communicate
would more likely discuss entertaining and recipes. The core
value — celebrations — is simple and yet translates differently
from one brand to the next.
“Then there are channel translations,” says John. “You can’t take Celebrations Pulse newsletter, the company asks what topics are
long-form blog content and put it in an email that will be read on on customers’ minds and what they liked — or didn’t like — about
a mobile device and expect people to interact with it in the way the content. Asking simple questions can yield useful insights.
you want.”
Social media is another place where 1-800-FLOWERS.COM,
Having the right people in place to take core content Inc. gathers feedback, as opinions are shared freely. Leveraging
and translate it for the customer is critical at the channel listening tools, reading comments, and learning what’s on the
level. It must resonate with the customer. In social media, customer’s mind are all part of the process of understanding
1-800-FLOWERS.COM, Inc. provides “snackable content” versus what’s impacting the customer.
a full blog post. For those on mobile or using the Celebrations
Passport app, customers can get content in shorter form. “With inflation and other macro news that is not so good, many
external factors are changing customer behaviors and their
mindset,” finishes John. “You need to keep a pulse on what that
A Nuanced Opportunity mindset is. It will inform you as to how they want to interact.”
Personalized content might sound simple, but it can be
a nuanced opportunity for most brands because people Visit https://www.1800flowers.com/
experience different events at various points in their lives. John
acknowledges that while you can’t be presumptuous about what
somebody is going through, at the same time, you need to be
able to offer some sort of content repository that’s there for QUICK-FIRE Click here to view the
Quick-fire Questions, Ft.
them when they need it most.
QUESTIONS* Jason John, 1-800-FLOWERS
“For example, a customer might want to know how to write a
sympathy card or what sympathy gifts to choose,” says John.
What is your favorite word? Forward.
“They wonder what’s the right way to express themselves during
those moments.”
What is your least favorite word? Can’t.
As a company, it’s not necessarily something a brand could
or would want to try to project or predict, but at the same I have two girls in travel
time, 1-800-FLOWERS.COM, Inc. endeavors to be there for soccer. I think getting
customers in those moments. Leveraging the loyalty program What excites you? over the travel part and
to keep customers educated about what the company offers
getting back to a more
personal side is exciting
for notable life events is vital. Even less poignant moments right now.
are relevant to 1-800-FLOWERS.COM, Inc. because they are
important to customers and their relationships. The daily grind, keeping
What do you find tiresome? up with it.
“We had a series around adult male friendships and how adult
males tend to miss the benefits that friendships bring to the What is your favorite flower? The peony.
table,” explains John. “Sometimes you get sucked into other parts
of your life, and you overlook those little things. But ultimately, it
What profession other than your
all adds up to mental wellness.” Psychiatry.
own would you like to attempt?
The brand’s loyalty program is a vehicle for such education and
Who inspired you to become Martha Stewart, Mickey
works to “be there” for the customer when that moment or need Drexler, Kevin Ryan, and
the person you are today? Jim McCann.
arises.
What is your favorite book
recommendation to make to The Purple Cow.
A Growing Membership colleagues?
Celebrations Passport has 1.3M members and is growing. How do you want to be remembered Just having a sense of
John notes that it’s important to consistently keep a pulse on by your friends and family? humor through it all.
customers and understand the macro environment and other
issues that might be affecting customer segments.
*Inspired by the quick-fire portion of “Inside the Actors Studio.”
Customer feedback is solicited, and 1-800-FLOWERS.COM,
Inc. uses surveys to help inform decisions. At the end of the
Loyalty Management™ | February 2024 | loyalty360.org 59
BEST PRACTICES
From First Purchase to Brand Ambassador:
Bryan’s Journey with Blue Ridge Camping Goods
By The Clutch Team
July 15, 2023
It was an ordinary summer day for Bryan, a 40-year-old avid
hiker, until he stumbled upon the brand new Blue Ridge Camping
Goods store during his lunch break. The shelves were adorned
with gear that spoke directly to his outdoor-loving soul. Bryan
couldn’t resist and ended up purchasing a much-needed water
bottle. The friendly cashier offered him a 20% discount at the
cash register if he signed up for their mailing list. Bryan agreed,
marking the beginning of a transformative journey with Blue
Ridge. Little did Bryan know that his simple purchase was the
catalyst for a meticulously designed customer experience.
Blue Ridge Camping Goods utilized a cutting-edge retention
marketing platform, powered by machine learning and customer
data, to create personalized interactions. Bryan was immediately
placed into an audience segment based on his purchase history,
setting the stage for targeted engagement.
August 5, 2023
Recognizing the potential for customer loyalty, Blue Ridge
launched a campaign encouraging sign-ups. Bryan, now part of
an audience segment, received an email a week later offering him
a Buy One Get One (BOGO) deal on water bottle accessories if
he joined their Tier-Based loyalty program. “Why not?” Bryan
thought as he filled out his information, providing valuable data
such as his address, phone number, birthday, and interests in
hiking and backcountry camping.
October 10, 2023
Over the next couple of months, Bryan made occasional visits to
Blue Ridge, each time earning loyalty points for small purchases
like socks, waterproof matches, propane refills, and easy-to-pack
protein bars. With each visit, the retention marketing platform
continued to collect data, dynamically segmenting Bryan into new
audience segments even more individualized to his preferences
than the last.
60 Loyalty Management™ | February 2024 | loyalty360.org
November 3, 2023
Then came Bryan’s birthday, and Blue Ridge surprised him with
a personalized email and a $25 credit. His wife, well aware of
his passion for the store, gifted him a $100 Blue Ridge gift card.
Excitement filled Bryan as he logged into his profile, entered
the gift card number and envisioned his next purchase with the
$125 credit sitting in his digital account.
November 7, 2023
One ordinary Tuesday afternoon, Bryan was drifting off at work
when he received an email that perked him up. “Let us get you
ready for your next big hike,” the message read, offering him a
25% discount on hiking packs. With his credit and the discount,
Bryan seized the opportunity, leaving work early to pick out his
dream hiking pack at the store. At the checkout counter, Bryan
was delighted that he could redeem his credit and enjoy the 25%
discount. As he left the store with his brand-new hiking pack, he
couldn’t help but think, “This store is amazing!”
November 15, 2023
Now equipped with his Blue Ridge gear, Bryan embarked on his
next big hike, spreading the word to his hiking buddies. Whether
out of genuine interest or maybe a touch of exhaustion from
Bryan’s contagious enthusiasm, they promised to check out Blue
Ridge Camping Goods when they returned home.
Bryan’s journey from a casual shopper to a brand ambassador
was a testament to the power of individualized experiences
and innovative marketing strategies employed by Blue Ridge
Camping Goods. During this journey, Blue Ridge continued to
collect revenue from Bryan’s many purchases that otherwise
would have gone to competitors. Now as a brand advocate,
the ROI from their offers and loyalty points given to Bryan are
exponential. This journey would not have been possible without
the support of an AI-powered retention marketing platform.
The store not only met Bryan’s outdoor needs but also forged a
connection that turned a customer into a loyal advocate.
For more information please visit https://www.clutch.com/
Loyalty Management™ | February 2024 | loyalty360.org 61
513.800.0360 | loyalty360.org | @loyalty360