Documente Academic
Documente Profesional
Documente Cultură
Fazoli’s CMO
Discusses Customer
Experience and
Personalization
IN THIS ISSUE:
12 14 Conference
As the association for customer loyalty,
Fazoli’s Executive Jodie
Conrad Discusses
The Giant Loyalty
Enhancement
Review
32
Loyalty360 speaks with top brands on Customer Experience
Fazoli’s and Personalization Giant
a daily basis regarding the challenges, Mark Johnson | Loyalty360 Mark Johnson | Loyalty360
10 Q&A Loyalty360
Brand Vision 30 LOYALTY READS info@loyalty360.org
513-800-0360
Loyalty360
20 TECHNOLOGY, TRENDS & REWARDS
© 2019 Loyalty360, Inc. and/or its affiliates.
Starbucks Shifts Workflow to Increase All Rights Reserved.
Customer Engagement
Reproduction and distribution of this publication in any
Chris Malone | Fidelum Partners form without prior written permission is forbidden. The
information contained herein has been obtained from
sources believed to be reliable. Loyalty360 disclaims all
22 BEST PRACTICES warranties as to the accuracy, completeness, or adequacy
Generation Z: What You Need to Know of such information. The opinions shared are those of
to Connect Throughout the Purchase Cycle the contributing authors and not necessarily reflective
of Loyalty360 and/or its affiliates. Loyalty360 shall have
Julie Wojtowicz | Helloworld
For more information on Loyalty360 membership, visit loyalty360.org/join no liability for errors, omissions, or inadequacies in the
information contained herein or for interpretations thereof.
or contact Mark Johnson at MarkJohnson@Loyalty360.org. 24 STATE OF THE INDUSTRY The opinions expressed herein are subject to change
without notice.
Beyond CLV - How to Really Understand
Your Customer’s Value
Stacey Allgeier | Hinda Loyalty Group
A lot of families have a Sunday ritual. After waking up early, memberships and then return that clothing without feeling
getting dressed in their best outfits, and attending church like they wasted money when the clothes are no longer
ON LOYALTY360.ORG services, they head out to lunch at a local restaurant. useful to them. Members can also borrow items for dress-
Growing up, I didn’t know that other families did this pretty up events like weddings or galas.
frequently. I thought going to lunch with my mom and
brother at a fast food joint near church was our special thing. Hopefully, these four articles, along with the other content
We usually rented videos too (on VHS), which made the ritual offered in this issue of Loyalty Management, provide
feel even more special. Now that I know other people did this insight into how marketers can flourish in a loyalty space
Committees kind of thing as well, I realize our ritual was standard practice. that is changing more rapidly than ever before. Unique
But it still feels good to think about. experiences, emotional connections, and strong value
Loyalty360 is introducing member committees, which will enable Loyalty360 members to provide propositions are all the rage these days, and brands need to
feedback and insight to our association that can lead to positive changes. Through involvement in I remember one Sunday we tried a new restaurant that know how to use them to drive loyalty. Loyalty360’s mission
one of four committee groups, members will help guide, provide feedback on, and support a variety popped up in the area. Fast food Italian. What? Who had is to help brands do this, and this magazine issue is curated
of Loyalty360 initiatives. The four groups have been designed to help meet the evolving needs of ever heard of fast food Italian? I was 11 or 12, and I thought to reach this goal.
the member community and will meet regularly to exchange insights and highlight the trends it was just about the best thing I’d ever experienced. Not
affecting customer-loyalty-focused marketers. The committees are as follows: only did you get spaghetti with marinara or fettuccine alfredo
within a minute or two of ordering, but you also got unlimited
• Research, Benchmark, and Standards breadsticks! What’s more, servers came out to the tables
• Technology and Trends while you were eating and brought the breadsticks to you. Patrick Barney
• Membership, Partnership, and Community Senior Content Editor
• Conferences I’m an adult now, but I still love Fazoli’s. Unfortunately, the Patrick Barney@loyalty360.org
closest location to where I live in Cincinnati is half an hour
away, so I don’t get to go there as often as I’d like. But the
dine-in experience, combined with the company’s quality
pasta, pizza, and breadsticks, sticks way out in my memory.
Clearly, Fazoli’s knows how to provide its customers with a
Member Benefits fantastic experience.
Loyalty360 corporate brand members now have access to VIP upgrades, experiences, and rewards at Loyalty360 recently spoke with Jodie Conrad, Chief
some of the world’s leading companies—all thanks to the commitment of our growing community of Marketing Officer for Fazoli’s (pg. 12), to discuss how the
prominent brands. The inspiration behind the Loyalty360 Member Benefits Program was driven by the brand is reacting to changes in the QSR space, specifically the
community, which wanted to add incremental value to Loyalty360 membership. The program has advent of third-party delivery services. As Conrad pointed
THE THINKING.
been designed to enable members to participate in and learn from customer-loyalty-focused out, the company is making moves to modify its one-of-a-
programs, and to provide valuable feedback to those who run them. By participating in and engaging kind dine-in experience for an environment in which more
and more customers are eating out while staying at home.
with other programs in a reciprocal manner, members can glean insight and a better understanding of
other customer loyalty offerings. This insight will enhance brand’s own programs. In addition, the
Member Benefits Program will provide access to exclusive upgrades, discounts, and more—all
We also spoke to representatives of Giant Food Stores (pg.
14) a grocery brand, The Vitamin Shoppe (pg. 16), and Le Tote
THE TECHNOLOGY.
THE EXECUTION.
provided by members of the community. (pg. 18), a subscription apparel brand. All of them, like Fazoli’s,
are making changes to adapt to a marketing space that is
increasingly going digital. Giant is reaching customers through
its Giant Direct offering, which enables customers to order
groceries online and have them loaded directly into their cars
at pick-up.
4 Loyalty Management™ | Q3 & Q4 2019 | loyalty360.org Loyalty Management™ | Q3 & Q4 2019 | loyalty360.org 5
LOYALTY FORUM: 360 INSIGHTS
Loyalty
Becomes
Experiential
Mark Johnson
CEO/CMO
Loyalty360
Loyalty continues to change and evolve. Transactional loyalty Brands are evolving to meet their customer needs by adding
strategies, while still the norm, are being supplanted by
experiential offerings. More and more brand representatives
new services to make it easier and faster for customers
to purchase. They’re personalizing content to be more
Exclusive Brand Insight,
we speak to say that improving their customer experience
offerings is a major, company-wide priority. This is a result
meaningful. They’re adding partnerships that extend the
brand value to the customer at other important moments.
for Members Only
of listening to customers, who are demanding personalized, They’re even adding purposeful activities for overall
timely, and frictionless experiences. sustainability. As the association for customer loyalty, Loyalty360
speaks with top brands to address the challenges,
opportunities, and trends of a constantly evolving market.
Because of these changes, loyalty is becoming less and less This might account for the rise of innovation teams within
programmatic. Findings from Loyalty360’s 2018 and 2019 brands. These teams are tasked with devising new strategies
Our goal is to pass this insight along to members and
to bring companies together to build authentic loyalty
Your Partner in Creating
Loyalty Landscape reports demonstrate this point. In our 2018 and processes as loyalty is being redefined. As such, this is an
Lasting Customer Relationships
predicated on reciprocal benefit.
report, 78 percent of respondents said that their company exciting time for innovation and evolution.
has an explicit, points-based program. However, in our 2019 We invite you to join Loyalty360 for access to exclusive
report, only 57 percent of respondents said they have an However, as brands embark on these efforts, they need to insights, member-only discussion, and the opportunity
explicit program. This decrease of 21 percent tells us that remember that executive-level and interdepartmental buy-in to learn from a host of brands. For more information on
transactional programs are no longer defining loyalty. are not enough to be successful. They need to make sure there Loyalty360 membership, visit loyalty360.org or contact
Mark Johnson at markjohnson@loyalty360.org.
is alignment and commitment from all department heads to
Instead, brands are starting to focus on customer experience succeed. Each team needs to be committed and accountable
and customer engagement. Engagement still has a broad for the success of a brand’s customer-first strategy. 513.800.0360 | loyalty360.org | @loyalty360
connotative and denotative meaning, but the traditional,
points-based, buy-stuff-get-stuff programs are going away. Mark Johnson,
Instead, it’s surprise-and-delight, customer experience, voice CEO
of the customer, and more. It’s about extending your brand Loyalty360
to be more meaningful to your customer. How is your brand
improving your customer’s life? Connections@Baesman.com | 614-771-2300 | Baesman.com/insights
Featured Products,
Advancements &
Designed to help brands and marketers navigate vendors and providers in the market that support customer loyalty, customer
experience, and customer engagement strategies in any capacity. With a focus on objectivity, rigor, and transparency, the
Technology
Technologies 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
ICF Next’s loyalty and CRM platform, Tally, is the company’s proprietary Yotpo offers a suite of solutions for customer reviews, visual
loyalty and campaign management solution that clients can use to marketing, loyalty programs, and referrals. Its Swell Rewards
bolster customer relationships and build their brands. Tally is designed to platform is designed to turn customer content into sales by Brands today are looking to loyalty vendors to help guide their
engage customers, drive desired behavior, improve the customer collecting product ratings and written reviews, extracting success. Kobie Marketing has the consulting, analytics, and creative
experience, and give clients the insights they need to capture greater actionable data, and enabling clients to design campaigns based experience, along with the technology, to meet each brand’s unique,
market share. It is fully configurable and works precisely the way clients on that data. The platform is also designed to increase customer customized needs. This makes the company a partner that can drive Iris Concise offers end-to-end program design and optimization, a
need to increase customer loyalty and achieve business goals. engagement by combining customer photos and reviews with success and help clients navigate a complex, changing landscape. comprehensive suite of marketing program management services, and
customizable options. other strategic services. These include program redesign; performance
The platform leverages the latest technology to meet the growing The company understands that loyalty is the emotional connection management; ROI optimization; opportunity analysis and modeling;
demands of clients and program members for experiences. The Tally In addition, Swell Rewards is intended to enable clients to build that customers have with brands. Brands that deliver meaningful technology enablement and customer development; customer journey
platform offers several key functional areas that provide the capability customized loyalty programs to acquire customers and retain value will come out ahead of competitors. In the past, the value analysis and management; change management, training, and support;
and flexibility to enable interaction at key points and “moments of truth” currents ones through engagement. The platform is designed to exchange involved points and miles, but the future is about proving to personalization engine, campaign, and promotion management;
that enrich and enhance the customer experience. These include help clients understand what their customers are saying about members that brands know them, understand them, and can community building; and user experience management.
program management, Member Experience, Customer Care, Clientele them and gain actionable insights to make better business anticipate their needs. This is where Kobie Marketing is ahead of the
Management, Reporting & Insights, Advanced Analytics— decisions. As such, the company is a perfect fit for D2C curve: understanding emotional drivers of loyalty. This approach The company also offers a strategic planning process designed to
Segmentation, Modeling, and Predictive Analytics . organizations looking to build loyalty. drives Kobie Marketing as a full-service creative agency that can meet deliver customer insight. It strives for growth in revenue and for
any client’s creative needs. innovations in loyalty services. A combination of consulting assignments
and ongoing retained business provides a range of exposure for the
company’s team members and enriches their perspectives.
Jebbit’s mission is to help clients build the best programs to engage Engage People offers a loyalty platform, Podium, and an e-commerce Ansira’s mission is to make organizations and their marketing efforts
consumers and capture declared data by offering them a clear value redemption solution, Access, for clients working in the customer loyalty better, from the brand to the local level. To achieve this, the company
exchange. To this end, the company provides its engagement platform to space. Podium has a range of capabilities. It has automated builds upon what’s already in a client’s ecosystem. Being technology
enable clients to build immersive, interactive content experiences that communication features that can produce system-generated neutral, Ansira can enhance numerous aspects of its clients’ efforts to
directly engage customers and immediately personalize their outcomes. notifications, including password reset, order confirmation, account produce the best results from client initiatives.
statement emails, and more. It is also designed to handle campaign
Using the engagement platform, the company’s core approach is to management through configuration and API requests. It can support Ansira encourages and enables clients to develop a sound understanding
automatically identify and capture moments of consumer attention, both earn and redemption campaigns. of customers at the brand-to-customer and local-to-customer points of
translate that attention into business results, and store that data to drive intersection. As such, the company takes a data-first approach to
insights. The platform captures consented, first-party data and Access is designed to give clients the ability to enable customers to customer strategy, enabling brands to understand their customers and
integrates it into existing data and technology infrastructure. The redeem their program points anywhere in the world and in any how best to engage them. As a core service, Ansira develops an up-front
company also offers an integration services team that can support nearly currency. It also enables customers to simultaneously earn bonus customer strategy for each client, creating a path to testing, optimization,
all marketing technology integration requests. points whenever they pay for purchases partially with cash. In this way, and long-term success management.
Access is designed to elevate the personalization of loyalty and reward
The platform provides a machine-learning-driven experience builder, programs to a whole new level.
which enables clients to build customizable, on-brand experiences that
are optimized for any device. Clients use the builder to set up attributes Podium, Access, and Engage People’s suite of other solutions also offer
for each consumer. From there, segments can be created and activated mass communication capabilities. Engage People leverages
through a client’s omnichannel marketing technology stack. In addition, segmentation and member data to personalize offers and program
the experience builder can optimize by media, experience structure, rules. Podium is designed to enable every interaction to be one-to-one.
question analytics, and A/B testing. The company manages mass communication through users lists.
Brand Vision
“We’re big on social. We have, over the last couple “We are trying to increase our voice on social media.
of years, kind of taken a deep dive into that. We were For example, we have a blog that we keep. My alliance
on the outskirts for a while and really made a big manager uses a technology called Paper.li. This creates
commitment specifically going after the millennial an electronic newspaper based on social media feeds
folks because that’s where they are. But not just the that goes out to the community. We are also looking
millennials. Everyone migrates to social media to some at gamification technology that HMI has to add to our
extent or another and we’re out there. Whether its website. Also, one thing we did in the last year was
Q:
Facebook, YouTube, Twitter, LinkedIn, you name it, make our website mobile friendly. There was a point in
we’re pushing out content on a regular basis. We’re time where you could only use our website via laptop
How are you using social media updating our feeds on a regular basis because that
seems to be, media wise, where the industry is going.”
but now it is completely mobile-friendly.”
Todd Owens
“Social media gives us the ability to do two things. It “In the early days of social media, for us, it was a channel “Over the last few years, we’ve spent a lot our time,
helps us meet people where they are, and it enables us for consumer feedback. Recently we’ve begun to leverage “If you look at where people spend their time, there are energy, and resources here. We’ve been very fortunate to
to have conversations with them through technology, social media as more of a marketing channel as opposed multiple hours a day spent in social media, whether it’s sell out every game in franchise history—but if you have
because by and large, that’s what this generation is to only a customer service channel, and Facebook Facebook, Twitter, Instagram, Snap Chat. Whatever it limited ticket inventory, how do you reach out and engage
comfortable with, as opposed to talking over the phone. has been an effective way to promote the brand, might be, people are on their devices browsing social with new fans? How do you share those moments that
It also gives the platform to talk with people about our experience, and services we offer. That said, Twitter sites. [We want] to be a part of that conversation, happen in a match if people can’t actually experience
purpose and the reason they might want to engage with remains much more geared towards being a consumer either for an existing costumer to build more of that that in person? You have to try and tell the story across
us. Social media really does provide the opportunity to servicing channel. It’s relatively early for us, but we see brand loyalty and that top-of-mind aspect, or as a social platforms. For instance, one project from last year
tell a broader story about purpose and how important opportunities to leverage social media for things like prospect who maybe saw one of our ads, clicked on that leveraged digital was the creation of a video game
meaningful work is to individuals. We know that’s customer reviews and reviews of the CarMax website..” it, looked at it, to open an account. We use the social we called “Set Piece.” It was inspired by a chant from the
important, particularly for millennials.” space to reinforce [our] messaging. We create special Timbers Army (our group of supports) called Tetris. It’s
Jim Lyski content. We have special story boards and things that a play on the iconic game. For us, it was about creating
Chief Marketing Officer were filmed at an ad shoot, specifically for social. We something fun, accessible and repeatable.”
Stacey Force
CarMax bring that into the social space and share that out with
Vice President, Global Marketing
ManpowerGroup customers and prospects.” Cory Dolich
Senior Vice President of Business
“Our goal is to continuously connect with and engage Saloni Janveja Operations & Marketing
our customers, and the digital landscape provides an Executive Marketing Director Portland Timbers
“We have invested a lot more into social media and Ally Financial
ideal forum for us to do so through authentic, real-time
our interactions with our consumers. Customers can
conversation. Hearing from our fans and customers
use social media to schedule an appointment, ask a
directly is key to building meaningful relationships,
question, or get response to a complaint. We have
and we are inviting them to join in on the conversation
people on there 24/7 responding to them, and we also
by sharing their own stories and photos on Facebook,
have night and weekend coverage that we provide. In a
Twitter, and Instagram using #ShareMore.”
more proactive sense, we are starting to share content
that we think our customers are interested in, and not Michelle Farabaugh
just things about Safelite. We can be more engaging to Chief Marketing Officer
them and talk about things that are important to them Harry & David
rather than just important to us.”
Renee Cacchillo
SVP of Customer, Brand,
Safelite AutoGlass
10 Loyalty Management™ | Q3 & Q4 2019 | loyalty360.org Loyalty Management™ | Q3 & Q4 2019 | loyalty360.org 11
FEATURES
Cultivating long-term customer To address this challenge, Conrad and her team
loyalty within the restaurant are changing tech providers. She said, “We are in
industry has always come the process of going back to Olo as our technology
with unique challenges, due to provider for online ordering, for both catering and
its competitive nature. Now, individual orders. Part of what their tools allow us
consumers have more choices than to do is integrate with some of the larger third-party
at any point in history—not just choices of restaurant, delivery providers, so the orders come right into our
FAZOLI’S EXECUTIVE
but choices of how to procure food at a given POS system.”
restaurant. Increasingly, consumers expect to be able
to get dine-in service, takeout, or delivery from just Fazoli’s loyalty efforts are still young and in
about any brand. development, however. “Until a couple of years ago,
the sad truth was that our loyalty tactics were basically
To learn about these challenges and their impact on punch cards,” said Conrad. “We didn’t have trackability
JODIE CONRAD
loyalty initiatives, Loyalty360 recently spoke with or visibility in it. We launched our first mobile app and
Jodie Conrad, Chief Marketing Officer for Fazoli’s. Her loyalty program in the fall of 2017, and over the course
role has provided her with significant insight into how of the first 12 months got all of the franchisees on
customers are changing and how brands can turn board and participating. Part of it was having the right
those changes into an opportunity to drive loyalty. technology base. It took us a little while because we
all had to have POS systems that would integrate with
DISCUSSES
Conrad said, “When I first started here, not that long this new technology.”
ago, the majority of our business was dine-in, and a
lot of that was driven by service after the sale, which She continued, “We spent the first year-and-a-half
we do a lot of. We deliver food to the table; we use working on acquisition and trying to engage consumers
real plate-ware and silverware. A big part of our with the technology so that we had a good database of
value proposition for dine-in business is unlimited people and could look at behavior over time. Then, in
CUSTOMER
breadsticks. With our signature crave-able, delicious the second quarter of this year, with the promotion that
breadsticks, you can eat one or you can eat 10. We we kicked off, we started being smarter about how we
don’t judge. We’ll keep bringing them to your table as use the tool. Using it, we were able to drive frequency
long as you want them. It’s an important part of how of visits while still building our database, acquiring
we provide value to our guests.” new guests, and lowering the amount of discounting
EXPERIENCE AND
considerably from what we had been doing. Now we’re
However, Conrad also noted that this state of affairs maximizing profitability.”
is changing rapidly. “More and more of our business is
moving to off-premise. Between drive-through, take- Perhaps the most important goal for using this
out, online-ordering, third-party delivery and catering, technology is true personalization, and Fazoli’s
now the majority of our business is consumed outside efforts towards this goal are becoming more
PERSONALIZATION
of the restaurant. Today’s consumer prefers to take sophisticated. Conrad said, “In this upcoming
meals at home, and Fazoli’s has had to adapt.”
quarter, we’ll be adding some special offers that
Adaptation, though, has numerous challenges, are targeted to different behavioral segments,
especially when working with third-party delivery like for the people who are churchgoers or
services. “You don’t control the whole experience, families with children.”
and you also don’t control the relationship when they
order through the third-party provider’s website. They Conrad concluded by pointing out how important it is
have the data on the customer, in terms of who they to get personalization right. She said, “As a consumer
Mark Johnson | Loyalty360 are, when they order, what they order. We don’t have myself, if I get communications from brands about
things like dollar kids’ meals. I don’t have anyone in my
visibility into any of that, or very little.”
household that needs a kids’ meal. That isn’t relevant
Service issues (e.g., the customer is delivered the to me at all. It’s clear that they don’t know me and
wrong side order) also arise. Conrad said, “The reality don’t know who they’re talking to.” For this reason,
is, sometimes it is our fault, and sometimes it’s their Conrad believes that brands have to be on top of their
fault. But, generally speaking, the brand is the one who game as far as individualized marketing goes.
takes the blame.”
12 Loyalty Management™ | Q3 & Q4 2019 | loyalty360.org Loyalty Management™ | Q3 & Q4 2019 | loyalty360.org 13
FEATURES
14 Loyalty Management™ | Q3 & Q4 2019 | loyalty360.org Loyalty Management™ | Q3 & Q4 2019 | loyalty360.org 15
FEATURES Photos By: Vitamin Shoppe, vitaminshoppe.com
Personalization
The goal of the program, therefore, is to enable customers to bers can take comfort in the fact that the program has a scientific
create better versions of themselves as they define it. The key advisory panel to ensure that it functions in accordance with
to creating this better version is The Vitamin Shoppe’s ability to the best medical knowledge available. This panel consists of Dr.
engage in a mutually beneficial dialogue with its customers that Melina Jampolis, a physician nutrition specialist, and Dr. Taylor
leads to a greater understanding of customer needs and objectives. Wallace, a food science and nutrition expert. These two advisors
will incorporate new studies and
up-to-date scientific information
Can Truly Be
To help members be their best into the Only Me personalization
selves, the Only Me program
identifies the important nutrients
“ algorithms as needed to best serve
member needs. Furthermore, a
that they may be missing in their range of registered dieticians,
daily lives. But the true differen- clinical nutritionists, and well-
tiator of the program, and where ness coaches have contributed to
“however you define it” comes the knowledge base the program
into play, is that it takes well- offers.
ness goals into account. In this
16 Loyalty Management™ | Q3
Q1 &&Q2
Q42019
2019 | | loyalty360.org
loyalty360.org Loyalty Management™ | Q3 & Q4 2019 | loyalty360.org 17
FEATURES
“Customers can choose exactly what they get in each Le Tote’s stance, physically and digitally, is that experi-
shipment,” she said. “There’s no mystery-box aspect, no ences drive value for the consumer, which in turn drives
surprises, because we know that customers in a rental increased share-of-wallet. This is the primary metric
model are always planning for what’s coming up either Beiswenger and her team use to determine if consum-
The Opportunity
that week or that month.” ers are loyal and engaged. The marketing team’s goal,
therefore, is “creating sticky experiences that are based
By August 2019, this model had become so popular that on having the right product for the right people in the
the company found itself ready for a new challenge and right places at the right time and then leveraging data
signed a deal to purchase legacy retailer Lord & Taylor to ensure that [the customer] has a higher hit rate on the
from Hudson’s Bay Company. What all will result from stuff that she’s buying, trying, or renting.” This approach
in Le Tote’s Lord
this acquisition has yet to be announced, but Beiswenger is certainly customer-centric, and it will be fascinating to
indicated that Le Tote has every intention of preserving the see how it plays out in brick-and-mortar retail.
Lord & Taylor brand name. The acquisition will, in some
form, mark Le Tote’s entry into brick-and-mortar retail. Perhaps the greatest opportunity in the acquisition lies
in Lord & Taylor’s legacy. Le Tote has, by Beiswenger’s
The new stores will take a localized approach, in a admission, fairly low brand recognition (it’s quite high for
Back in 2012, friends and entrepreneurs Brett Northart they want delivered to them (on either a once- or twice-
and Rakesh Tondon noticed that both of their significant per-month basis), and pay a flat monthly fee. Le Tote’s
others were in the habit of getting together with friends customers also have the opportunity to purchase any of
and swapping clothes. At the time, Tondon’s wife was the rented items at a discounted rate.
pregnant, so these get togethers were of great value for
her—any clothes she bought during the pregnancy would The service has proven massively successful, particularly
be useless down the road, so borrowing was preferable among women seeking “everyday wear,” fashionistas
to buying. With this new insight into the behavior of an who lack the free time to shop traditionally, and
apparel consumer, Northart and Tondon realized that pregnant women who need temporary threads. In a
there was a massive opportunity for them. conversation with Loyalty360, Jana Beiswenger, Vice
President of Strategy for Le Tote, said that much of the
The duo founded Le Tote, a subscription service for ap- company’s popularity is due to the choice and flexibility
parel and accessories. Consumers who sign up digitally it offers its consumers—an important differentiator in
browse the company’s catalogue, select which products the growing subscription market.
Chris Malone
Author, Managing Partner
Starbucks Shifts
Workflow to Increase
Customer Engagement In particular, they told us about something called the Little Green Apron
Book, which as the name suggests, was a little green handbook sized
to fit inside the pocket of a Starbucks apron. The book describes for
employees what Starbucks calls “The Five Ways of Being,” which are: be
welcoming, be genuine, be considerate, be knowledgeable, be involved.
For each of these ways of being, the book offers specific examples of
While cleaning out her father’s apartment, the young woman found some-
thing that surprised and confused her. There were two large bags filled
with Starbucks cups with hand written notes to her dad that said things
like “have a nice day”, “come back soon” and “hope you feel better.”
Apparently they meant so much to her dad that he couldn’t bear to throw
behaviors that describe what that way of being looks like. them away. So she wanted to come down and thank them for the obvious
difference they had been making in her dad’s life. She never knew about
Perhaps most surprisingly, these “Ways of Being” weren’t just it before.
During a recent earnings call, Starbucks CEO Kevin Johnson senior vice president of marketing at Aramark, a $13 billion training ideas that sat on a shelf somewhere. They were the core
announced that the company has been busy redesigning its company that provides food service in schools, hospitals, management approach in every location. Every day, Starbucks So it begs the question, what caused Pete to keep the cups? Was it the
operational processes to enable employees to spend more time universities, corporate offices and stadiums around the world. “partners” would catch one another in the act of one of these Ways quality of the coffee? The price? The location or the rewards program?
engaging with customers. of Being, whether on behalf of a customer or a colleague. They No, it wasn’t any of those things. It was those simple gestures of goodwill
At the time, Aramark was a licensee of Starbucks and operated would present one of these cards to their colleague with a short de- and kindness that make another person feel valued and cared about.
“Our Starbucks store partners who proudly wear the green about 75 of its coffee shops on college campuses. But Aramark scription of what they had done on the back. The cards would then These little things that cost us nothing more than a bit of extra effort and
apron are at the center of connecting with customers and had been struggling to deliver the kind of customer experience be collected for each person in an apron on the wall with cardboard consideration that make all the difference in the world.
we are on a mission to support them by simplifying work and that Starbucks was known for. As a result, Aramark was at risk cuffs in the back room.
reducing some of the non-customer-facing tasks that histori- of losing its Starbucks license. That’s what we were lacking at Aramark in operating Starbucks stores.
cally have taken up to 40 percent of their time,” he explained. At the end of each month, these cards were sent to the district office We needed to aim higher than delivering prompt service or a properly
Now this would have been a huge problem for Aramark, so where they were summarized in stories that were shared across the or- made beverage. We needed to aim for making a lasting difference in the
As digital devices and services have proliferated in food service we pleaded with Starbucks to give us a chance to turn things ganization, celebrating all the ways these Ways of Being were practiced. lives of customers every day. It we are willing to aim for that higher pur-
over the past decade, it seems that customer and employee around. In a last ditch effort to salvage the relationship, a team of They shared some of these stories with us and one story in particular pose, we’ll get all the lasting loyalty and growth we want right along with
loyalty have generally become more difficult to build and sustain. Aramark executives was invited to spend a few days at Starbucks made a big impact on us. it. That’s the real secret to Starbucks continued success, as evidenced by
Despite this trend, a few companies have managed to continue headquarters in Seattle to get immersed in the company’s their recent workflow changes that enable employees to spend more time
their growth undeterred by The Digital Age. One of these is Star- operational philosophy and approach. I was fortunate to be We were told about a Starbucks store with a regular customer named engaging with customers.
bucks, which has generated +4 percent same store sales growth among those that made the trip. Pete. Pete was a quiet, elderly man that came in several times a week
in each of the past five years. What accounts for their consistent for a simple cup of coffee while he read the newspaper. The Starbucks So even in The Digital Age, the key to lasting loyalty customer and em-
growth and loyalty? I learned the secret to their success over a During our visit, I expected to hear about how Starbucks
baristas knew him by name and how he liked his coffee. Pete had been ployee loyalty in food service remains the basic human connections that
decade ago and Starbucks recent workflow redesign shows that prepared their coffee, designed their stores and standardized
a regular at the store for a few years, but then one day his visits suddenly occur between them. Food and beverage operators of all kinds would do
lesson remains just as relevant today. their customer experiences. And we certainly heard about
stopped. well to remember and embrace this in their own establishments as they
some of those things. But the thing that stood out most for
rush to implement mobile apps and online ordering.
It was the summer of 2006, when I first learned that Starbucks’ us – the thing that Aramark was missing was something entirely
Some weeks later, a young woman showed up at the store asking if any-
tremendous success is largely due to something other than the different. It related to how Starbucks recruited, managed and
quality of its coffee or the location of its stores. Back then, I was motivated its employees. one there knew of an older man named Pete, and of course, everyone
did. She told the employees that Pete was her father, and that he had
recently passed away.
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BEST PRACTICES
Julie Wojtowicz
Director, Strategy & Insights er
Julie Wojtowicz
Director, Strategy & Insights
CONNECTING POST-PURCHASE
CONNECTING DURING PURCHASE
INTERACTIONS WITH GAMIFICATION
Not all generations are created equal. Marketers CONNECTING PRE-PURCHASE WITH This generation prefers to research products online and shop brick
need to be more cognizant of this most recent STORYLIVING and mortar, which presents an opportunity to reach them at that Gamification is important, but you don’t need to run out and
moment of truth at-shelf to encourage purchase and build brand create an app to accomplish the same outcome. Remember that
generation, Gen Z, as the group enters adulthood affinity. This is achieved when the physical and digital worlds collide Gen Z is very choosy about the apps they download. Instead,
The way to gain Gen Z’s attention
and expands its influence and purchase power. is through storyliving. What is
to bridge the gap between offline users and online consumers. consider starting with web-based games that keep the consumer
engaged, even after the purchase has been made. For instance,
storyliving, you might ask? It is
Create an interactive experience with a short quiz at-shelf for provide a personality test that recommends additional products
Let’s first go through the basics. Gen Z includes modernized storytelling which
consumers to learn more about products and receive product or an advergame that highlights your product’s features.
enables consumers to experience
anyone born between 1997 and 2012. This group is a company’s brand narrative or
recommendations, product offers, and/or chances to win. This
massive, with 86 million generation members in the grabs the attention of consumers while shopping, motivates them Games use individual, physiological, and social motivators
brand DNA. This refers more to
to interact with your product, and generates share-worthy content. that encourage repeat action and specific behaviors. We can
United States, and more than two billion worldwide, the values on which the company
Additionally, these types of efforts can garner data acquisition into use gamified experiences to create fun, bite-size engagements
stands rather than what they do
compared to 72 million US Millennials and 73 million or sell.***Gen Z has forced marketers to evolve the way they tell their
CRM database for future conversations. that leverage Gen Z’s desire to interact with the brands they
US Boomers.* Gen Z holds more than 44 billion consider fun. Doing this allows the opportunity to continue the
brand story. This evolution has shifted from a one-way communication
Research shows that Gen Z prefers to shop in-store versus online. conversation beyond purchase and to stay top-of-mind among
dollars in annual purchasing power and influences of a brand to an anonymous consumer to a conversation between
This presents the brand with a unique opportunity to engage Gen known consumers. Whether playing for bragging rights or prizing,
brands and their consumers. Using Gen Z’s propensity for mobile
the majority of household purchases.** technology, we can facilitate those conversations in meaningful ways to
Z at-shelf or at home with product packaging. Web-based image it matters to this audience and will maintain engagement over
recognition can be a great way to trigger an experience through longer periods of time. Creating a bracket challenge or daily
build a deeper relationship with brands in the pre-purchase stage. Vocal
scanning product packaging. Add social and influencer content gamified experience anchored in cultural interests like sports,
As the first generation of digital natives, Gen Z has brand advocates can tell your brand story and build credibility and
into the experience to help tip the scales for the audience. movies, or pop culture can help connect with this group.
authenticity among Gen Z. Platforms like YouTube and Instagram will
already proven it’s truly a “mobile first” generation. reach this audience where they already learn about brands.
Gen Z uses social media for entertainment and information, so To learn more about connecting with this newest generation and see
Leveraging mobile will be the first point of contact
combining the digital and physical worlds to generate unique and some in-market examples of brands who are doing it right, check out the
for brands to connect with this audience, as well as Explore Augmented Reality (AR) experiences both in app and on web,
interesting content appeals to this audience. Making it fun and latest eBook from HelloWorld, a Merkle Company: helloworld.com/gen-z.
as well as with partners like Snapchat, to align with preferred Gen Z
continuing to use mobile to engage with them and share-worthy is even better! The key to relevance and authenticity
platforms. Being present in a relevant social platform in an authentic * U.S. Census Bureau, July 2017
build meaningful relationships. It’s obvious that this way could make a huge impact with Gen Z. Using web-based AR to
with this group is to put the consumer at the center as they interact
** Adweek, Gen Z Power List, June 2017
generation is a force to be reckoned with, but how reach the audience to allow consumers to experience your brand’s with your product in a genuine way.
*** Forbes, Why Storyliving Brands Win with Gen Z, June 2018
can you activate them in your brand’s purchase cycle? personality is a great way to create the fun and cool experiences this
generation gravitates toward.
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STATE OF THE INDUSTRY
This is only the first step. Suzy’s CLV to our brand may only be $6,750, With the EBV added to Suzy’s CLV, we now get a
but now let’s add her engagement and behavioral value. clearer picture of the additional value she brings to our
Stacey Allgeier organization. Her value went up, because she participates
Account Manager Engagement and behavioral value will be unique to your organization. in activities that are important to our brand. The EBV
You’ll need to put some heads together to determine which engagement allows us to divide our customers into better segments for
or behavioral metrics best align with the goals of your organization. One marketing, offer more personalized offers or target Suzy
REALLY UNDERSTAND
assigned a point value based on its importance to our brand: events because it wouldn’t be as valuable to acquire her
as it would be someone who engages with us on social
media. The EBV helps us create subgroups within our
• Member of Loyalty Program (30 Points) customer base and provide insights into what is resonating
• Length of Membership (10 points for every year of membership) with our customers, allowing us to figure out what the
• Active within the last 12 months (40 points) next engagement or behavior is right for them and for our
• Is opted into Email (10 points)
5 Years in program 50 points New EBV = 240 Points = $240 added to CLV
Suzy’s CLV Active in the last 12 months 40 Points New CLV +EBV = $7,000
Is opted into Email 10 Points
Shops In Store 10 Points
Average Purchase Value ($30) – Product Cost ($15) $15 profit margin Shops Online 30 points Happy, loyal customers are your brand’s best ambassadors. In order
Average Purchase Frequency 18x per year to spend the right amount of time to understand and nurture their
Redeemed Points for Sweepstakes 10 Points
Average Customer Lifespan 25 more estimated years of purchase behavior engagement in your brand, you need to dive into your customers’
Average Rate of Returns 0x behavior. The CLV can help you understand the transactional value
Potential to Retain Customer EBV = 180 Points = $180 added to CLV of your customer but adding the EBV can help you understand
(1+ 10% discount rate, 80% average retention rate) 30% potential to retain New CLV + EBV = $6,930 your customers’ future engagement with your brand and help you
segment and target them more appropriately to shift their behaviors.
Not only will this increase their value to your brand, they’ll also be
Customer Lifetime Value $6,750 *Note, your point value and calculation of EBV should be specific to your receiving more personalized and relevant value from your business.
organization’s needs and desired behaviors. It may take some sample
modeling to calibrate the right EBV calculation for your business.
NOT ALL FIRST-PARTY DATA IS CREATED EQUAL Just a few more pieces of declared data, such as what
additional accessories the teenager might be in the market
for, or the grandmother’s relationship with the gift recipient
Pam Erlichman The definition of declared data is straightforward; why it and the date of their birthday, and the retailer can set in
matters is a more complicated question, one that has to do motion a personalized, highly relevant retention campaign.
Chief Marketing Officer with the flaws inherent in other types of first-party data.
It’s not only a question of opportunity, but of cost as well.
THE GOOD SIDE OF INFERRED DATA… A 2017 Accenture study put the cost to businesses of
customers switching brands due to poor personalization
at $756 billion annually. Our own research at Jebbit into
Most first-party data is inferred data, data produced trust and consumer data shows that roughly a quarter
CUSTOMER EXPERIENCE
Transactional data is also known as purchase data—what
a consumer bought from a brand and when.
AND THEN THERE’S THE DATA PRIVACY PIECE
Inferred data offers plenty of benefits. With the right tech
stack in place, it’s relatively scalable, and better yet, it’s Declared data, by virtue of the fact that it is volunteered
proprietary—unlike second- or third-party data, it’s unique by consumers, is by its nature consented—an important
to a brand and can’t be accessed by their competitors. consideration given the steady drumbeat of data privacy
DIFFERENTIATOR YOU
laws, particularly GDPR in the EU and the upcoming
California Consumer Privacy Act, that restrict the collection
and use of consumer data.
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TECHNOLOGY, TRENDS & REWARDS
Samantha Iodice your campaign to start small, test, and grow the program. experience be coupled with time and budget limitations.
Director, Digital Solutions Much like any personalized element of your marketing Once you’ve completed building your strategy to meet your
strategy, gamification can become an essential piece of objectives, the game design can begin – a.k.a. the fun part!
your customer journeys from Welcome to Re-engagement. When designing the game with your internal business
Therefore, apply this age-old gem and keep it simple. partners, agency and/or vendor, keep everyone focused on
the strategy to prevent the “bubble effect” – allowing the
GAMIFICATION:
Now that you’ve decided to play with game to grow and grow out of control until it pops! Take
different approaches and perform research to see what
gaming in your email and other spaces, the competition has done. No one likes a copycat, despite
where do you start? Here are the steps imitation being the most sincere form of flattery.
to outline your business problem before
During the design phase, make sure to:
A REFRESHINGLY
digging into a game strategy and design:
1. Why do you want to use a game? 1. Maintain strategic alignment throughout the
2. What is your intended outcome? process (avoid the bubble effect!).
3. What channel(s) do you want the game to 2. Focus on simplicity and possible opportunities
AND REWARD
fresh approach.
Once you’ve nailed down your objective, you can begin 5. Keep it simple!
working on the strategy. It’s important to consider the
strategy before planning the design. Similar to putting the Make sure to measure and test your results and continue
cart before the horse – the horse is the strategy and the to build on your success. Also, remember that you don’t
LOYAL CUSTOMERS
cart is the design. Depending on your industry and space, have to award money or prizes for games – sometimes
consider the variables that could affect the performance rewarding members with knowledge, as in the Welcome
and outcome of your game as part of the strategy. As an Journey example, can be just as successful as cash prizes.
example, if you want to create a Welcome Journey game to The prize(s) should solve your business problem and be a
not simply engage members, but to show them how their ‘surprise and delight’ or a simple “that was a cool way to
new loyalty program works, you may not need to build a learn” reward.
game and can create an experience via email and landing
page design. This approach may be quicker to market as If your members feel fulfilled and delighted by their
Gamification in email - it’s not a new idea in the You’ve likely heard, and perhaps played, blockbuster it won’t require app updates or a game to be created and experience, you’ve created a successful gamification strategy
digital space. In fact, it’s been around since Club games from McDonald’s like their annual Monopoly coded in a platform for use either through a vendor or your that also helps grow your 1:1 personalization behavioral data
Nintendo awarded points for opens and clicks game running for over 13 years now, or how Starbucks loyalty agency. Let your strategy guide the design and the for additional optimizations moving forward.
within their emails. However, what is new-ish, and often uses games to collect more stars and increase
recently kicking up quite a fuss, is how gamification engagement.
has advanced and the myriad of ways to apply this
incredibly engaging technique, especially in email. Famous games have their iconic place in history, but
the secret to effectively employing gamification into
First, let’s tackle what exactly defines Gamification. your marketing arsenal is that it doesn’t have to be big,
Gamification is utilizing game mechanics in some form
within a non-gaming environment. It’s a pretty broad
flashy, or wildly expensive to drive some serious results.
Much like the original Club Nintendo example, the game
“MUCH LIKE ANY PERSONALIZED ELEMENT OF
definition, which is purposeful, because using the
concept of gamification can be applied in a multitude
was based solely on open/click behavior and nothing
more – no sign-up page, landing page, game pieces, etc.
YOUR MARKETING STRATEGY, GAMIFICATION CAN
of ways. You can apply game mechanics to everything
from email to your website, onsite at a conference, While we’re discussing how awesome gamification
BECOME AN ESSENTIAL PIECE OF YOUR CUSTOMER
via mobile app – like a number of games inspired by
Pokémon Go. You can even employ offline game tactics
is, let’s also discuss what gamification is not. It’s not
a magic bullet or mystical unicorn for driving loyalty,
JOURNEYS FROM WELCOME TO RE-ENGAGEMENT...”
in a store environment, such as how retail grocer member engagement, and revenue. As with any tactic,
Trader Joe’s hides a stuffed animal – a whale at my it’s only as good as its strategy and implementation. All
local store – somewhere in the store. If a kid finds it, too often clients get super excited to start playing with
they get a prize and get to ‘re-hide’ it for the next kid to games, and then get a little crazy about blowing the
find. A wonderful way to keep the kids entertained so idea up too much – but, who can blame them, games
their parents can shop. are fun! But, it’s vitally important to the success of
28 Loyalty Management™ | Q3
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2019 | | loyalty360.org
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Q2 2019 | loyalty360.org 29
LOYALTY READS
YOUR
create the most effective messaging for websites, brochures,
and social media. Every issue, Loyalty Management features the latest
Building a Storybrand should resonate with any type of leader, whether content from the members of our association. For
HERE!
and the unique value they bring to their customers. us @ loyalty360.org
In Friction, marketing expert Roger Dooley examines the inevitable points of friction
in businesses. Dooley defines these as “the unnecessary expenditure of time, effort,
or money in performing a task.” His book provides the tools and insight businesses
need to eliminate them. By understanding the impact friction can have, marketers
What makes
can establish positive habits and eliminate negative ones, all with the end result of
building a successful company. Turn your CRM
into a competitive
customers
Friction takes readers step-by-step through the process of empowering
advantage with
frank conversations, guiding individual and team behaviors, getting ahead
of friction, optimizing the customer experience, and building a frictionless
declared data.
loyal?
corporate culture. Combining scientific research with real-life examples of leaders
who have conquered business friction, Dooley teaches readers how to identify
roadblocks, alter them for the benefit of both business and customer, and create
Roger Dooley positive, lasting change.
In Red Shoes Living, author Lonnie Mayne explores an award- When you know
them better than
winning philosophy and five-step framework that leadership
teams are deploying organization-wide to engage employees,
win the battle for top talent, create standout customer
experiences, and build meaningful company culture. In a world anyone else.
that is increasingly noisy and negative, the Red Shoes
philosophy has become a symbol for making a positive impact.
Mayne shares his expertise on how people can stand out in the way
they live and the way they interact with others. He believes doing so can
make a huge difference in one’s professional and personal life. His
philosophy suggests that, simply by acknowledging another person’s
humanity and listening to his or her story, people can bridge the gulfs
that tend to separate them from others.
Lonnie Mayne
jebbit.com
7-Eleven has also added a new feature to its app, Scan & Pay, that makes it possible for
customers to select items from the shelves and pay for them on their smart phones.
This enables customers to skip the line while still earning points or redeeming rewards.
32 Loyalty Management™ | Q3 & Q4 2019 | loyalty360.org Loyalty Management™ | Q3 & Q4 2019 | loyalty360.org 33
Conference Review Conference Review
Caesars Entertainment Corporation owns and operates nearly 50 casinos in the United States
and the United Kingdom. Its major properties include Harrah’s, Horseshoe, and Rio casinos, Founded in 1960, Domino’s is the largest pizza company in the world based on global
as well as Caesars Palace, Paris Las Vegas, and Planet Hollywood. Caesars Entertainment’s retail sales, with a significant delivery and carryout business. It ranks among the world’s
operations, which comprise hotels, riverboat casinos, and gaming establishments, boast top public restaurant brands with over 15,300 stores in 85 markets. In Q3 of 2018,
millions of square feet of casino space and thousands of hotel rooms. Domino’s had global retail sales of nearly $3.1 billion.
The company has implemented a customer experience strategy based on analytics, CRM, Recently, Domino’s launched a campaign in which it gives away rewards points
and national scale. The strategy involves the Caesars Rewards mobile app, which enables whenever a customer scans a pizza through a function on the company’s Points for Pies
customers to check into and out of their rooms, order and pay for food, call hosts, check loyalty program app. However, in an industry-first, customers can scan any pizza in the app,
balances, and book rooms and shows. In addition, the app contains a digital concierge called even if it is a competitor’s pizza, homemade, or frozen. Customers earn 10 points, up to
Ivy. Ivy is an automated chatbot that converses with customers. Ivy has handled emergency 6 times total, throughout the campaign whenever they scan a pizza. After earning 60
medical situations, maintenance problems, and even been asked out on dates. Customers who points, they can redeem them for a free medium, two-topping Domino’s pizza.
download the app increase spend by 17 percent, and the NPS scores of those who interact with
Ivy increase by up to 9 points over those that have not interacted with the concierge. The two main campaign goals are to drive new customer acquisition and gain new
rewards members. The program was designed to get new customers to try the brand’s
The company also focuses on customer data and metrics. The company uses proprietary pizza and include Domino’s in their pizza line-up. Once customers are enrolled in the
algorithms to create detailed and sophisticated marketing segmentation schemes. In addition, program, they receive exclusive deals, personalized experiences, easier ordering, and
the company recently partnered with Adobe to enhance its personalization and segmentation free pizza.
efforts through Adobe’s audience manager platform. Whenever a customer clicks on a
Caesars advertisement or searches using a keyword, the company can now code that customer Since the program began, the company received a significant number of social media
into a segment. Upon arrival at the website or app landing page, content is dynamically impressions, which has helped to maintain and increase program recognition. In
rendered based on customer segmentation and previous behavior. addition, the Points for Pie rewards program has reached enrollment levels that make
it one of the largest programs in the QSR industry based on publicly available data. The
Caesars has also partnered with Salesforce to marry CRM data to anonymized data from the program now has more members than any of its competitors.
internet. This enables the company to personalize with relevant creative, copy, and offers that
resonate with customers. This has manifested in higher conversion rates. Overall, this focus on
metrics and data has led to an improvement in the company’s marketing efficiency ratio, from Finalists: Mountain Dew, Sony Rewards, Ally
25 percent in 2014 to 20 percent in 2018. The company also sees a fair share premium that
averages 15 percent.
Josh Margolis
Allie Porter
VP of Customer Journey Finalists: Sodexo, McClatchy Digital Marketing Program Leader
34 Loyalty Management™ | Q3 & Q4 2019 | loyalty360.org Loyalty Management™ | Q3 & Q4 2019 | loyalty360.org 35
Conference Review Conference Review
Food Lion has more than 1,000 stores in 10 Southeastern and Mid-Atlantic states and
Designer Shoe Warehouse (DSW) offers thousands of shoes for women and men employs more than 63,000 associates. The company offers low prices, convenient
in over 500 stores nationwide. It also offers a huge assortment of handbags and locations, and works to provide a full shop grocery experience in the Southeast.
accessories. In addition, the company’s website, dsw.com, makes shoe shopping very Through Food Lion Feeds, the company has committed to provide 500 million meals
convenient. Its DSW Rewards program enables members to earn points toward $10 to individuals and families in need by the end of 2020.
rewards certificates every time they shop.
To help tackle the problem of hunger in America, the company had dedicated itself to
In 2018, the company launched the DSW VIP loyalty program to 25 million existing providing ongoing hunger-related support to the communities it serves. In 2014, the
members. The program offers faster rewards and a new tier, and it creates a more company created the Food Lion Feeds to provide this support. Through the foundation,
personalized customer experience for members with relevant and compelling rewards. the company has worked to donate 500 million meals to hungry families by 2020.
The program is designed to be simple, meaningful, and buzzworthy.
Food Lion Feeds has donated more than 450 million meals to date, including more
DSW kicked off the program by collecting insights into the relationship between than 83 million meals in 2018. This was achieved through monthly community
women and shoes through a survey taken by 4,383 of DSW’s female loyalty members. donation events, associate volunteering, equipment donations, quarterly in-store
Key program elements were designed around customer feedback, including the ability promotions, and internal programs utilizing the business’s 63,000 associates.
to earn points by donating shoes, to earn more rewards more often, and to receive free
shipping on anything. In addition to this social impact strategy, the company offers a monthly rewards
program entitled the Personalized Savings Tool. Designed with the shopper
The program now includes three tiers: VIP Club (free to join), VIP Gold ($200 annual experience in mind, customers interact digitally by loading personalized offers each
spend), and VIP Elite ($500 annual spend). All three tiers receive birthday rewards. month with varying rewards and thresholds. This enables members to earn rewards
Gold and Elite can also give two $5 birthday rewards to friends and enjoy early access that are automatically redeemed on their next purchases.
to exclusive offers and events.
The Personalized Savings Tool program has led to a significant customer retention rate
Since the launch of the program, DSW has seen double-digit customer enrollment and increased monthly spend.
growth, best-ever member retention and reactivation rates, and increases in average
member spend. The company has experienced the best customer file growth and
health it has seen in years.
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Conference Review Conference Review
Omni Hotels & Resorts offers 60 distinct luxury hotels and resorts in
IHG Business Rewards, the loyalty program of InterContinental Hotels Group
leading business and leisure destinations across North America. In total,
(IHG), has approximately 280,000 members globally. The program rewards these properties feature 25 golf courses and 16 award-winning spas. Omni
planners for booking meetings, accommodations, and events at participating Hotels & Resorts is the official hotel of the PGA TOUR and PGA TOUR
IHG hotels on behalf of others. Members also qualify for Your Rate, an exclusive Champions.
rate offered when they book direct. In addition to flexible features such as
no blackout dates and free internet, members have hundreds of options for The company’s employee engagement strategy is an engagement contest
redeeming points. These include reward nights, digital downloads, brand name that focuses on five KPIs:
items, and retail gift cards.
1. Total conversion rate of non-member guest to members
The program supports the company’s drive toward long-term loyalty. It is
2. Conversion rate of online travel agency non-member bookers
3. Redemption of local experience awards
designed to enhance acquisitions and defend against competitors. The company
4. Member recognition
also recently embarked on a thank-you campaign in which it gave 150 million 5. Benefit delivery
rewards points to members for posting photos of themselves enjoying time at
home or at an IHG hotel to Twitter or Instagram. Members used the hashtags To help keep employees excited and engaged, the company has multiple
#HomeWithIHG, #RewardsOffer, and #Ad. contest themes throughout the calendar year. Ranging from card games
to board games to head-to-head, it adapts the rules and goals of each
The company secured nine top-tier influencers from the United States and game to align with the KPIs set at the corporate level. This strategy has
the United Kingdom to create content that aligned with IHG Rewards Club had several measurable benefits. The company has seen an increased
messaging and to invite their fans to follow along with #IHGRewardsClub and enrollment conversion rate, reward redemption, and recognition and
#HomeWithIHG. The influencers were selected based on criteria that aligned
benefit delivery.
with the brand’s values.
Lanna O’Connor
Finalists: Vitamin Shoppe, Dollar Car Rental, Sleep Number Sara Blackwood
Loyalty Marketing Manager
Finalists: Sodexo, MGM, Overstock
Global Direct Marketing Manager
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Conference Review Conference Review
Since implementing Sugarfina Rewards, the brand has seen an increase in referrals Sunglass Hut has been able to strike a balance between not only different types of
and has gained thousands of additional followers on social media. rewards, but also in the approach, as they have successfully demonstrated how to
engage customers and employees in the Sun Perks program.
Zainub Naqvi
Senior Marketing Manager
Shinjani Agrawal
Finalists: Tarte, Caesars Entertainment, MGM Sr. Marketing Manager, CRM & Loyalty
Finalists: Overstock, Wyndham, Sumo Sushi & Bento
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Conference Review Conference Review
Thermo Fisher Scientific Inc. is the world leader in serving science, with revenues of more Verizon Wireless is the largest wireless telecommunications provider in the United
than $20 billion and approximately 70,000 employees globally. The company’s mission States, offering a range of wireless products (e.g., mobile devices) and services (e.g.,
is to enable its customers to make the world healthier, cleaner, and safer. Thermo Fisher wireless plans) to over 113 million customers. The company, with headquarters in both
New York and New Jersey, employs over 144,500 nationwide.
Scientific helps its customers accelerate life sciences research, solve complex analytical
challenges, improve patient diagnostics, deliver medicines to market, and increase
Verizon’s mission is to deliver the promise of the digital world by enabling people,
laboratory productivity. Through its brands – Thermo Scientific, Applied Biosystems, businesses, and society to innovate and drive positive change. It currently operates
Invitrogen, Fisher Scientific, and Unity Lab Services – it offers combination of innovative the nation’s largest 4G LTE network, covering approximately 98 percent of the US
technologies, purchasing convenience, and comprehensive services. Thermo Scientific population and recently launched the world’s first commercial 5G service in 2018
instruments, equipment, software, services, and consumables enable scientists to solve with Verizon 5G Home.
complex analytical challenges in pharmaceutical, biotechnology, academic, government,
environmental and industrial research, as well as the clinical laboratory. Its products The brand’s loyalty program, Verizon Up, rewards consumers each month. Its approach
address a range of needs from sample, material characterization, and chemical analysis to engagement is built on a balance of rational and emotional rewards. Program
to clinical diagnoses and biological-based therapeutics manufacturing. members can access personalized rewards through a simple mobile experience.
Rewards are delivered through the different carousels within the app, and members
earn credits (one credit per $300 spent on wireless bills) than can be redeemed for
Launched in July of 2017, Thermo Fisher’s Aspire Member Program is a loyalty program
rewards. Members also have access to everyday rewards that do not cost a credit;
for the biotech and scientific community. In less than two years, Aspire has piloted and these range from bonus rewards like exclusive discounts and surprise and delight offers
launched a comprehensive platform that has inspired loyalty and brand affinity from its to local offers, with which members can save up to 50 percent off restaurants and
members and has also exceeded the business’ expectations on several key performance entertainment.
indicators. Since inception, Aspire’s goal has been to transform customers into vocal
advocates of Thermo Fisher products and drive growth. This has been achieved by offering Verizon has found that the majority of members consider Verizon to have a best-in-class
members differentiated rewards and trial products and investing in member’s career rewards program and that members feel 38 percent more valued than non-members.
pursuits through the program’s career accelerators. Members are more digitally engaged, averaging two times more visits to the app and
perform more transactions online, such as adding a line of service, upgrading a device
or purchasing accessories.
Aspire has substantially increased Thermo Fisher’s incremental revenue. Aspire’s CAS
(Customer Allegiance Score) was on average five points higher than the rest of the division.
Julia Russell
Director, Verizon Up Loyalty Program and
Finalists: Hilton, IHG, Floor & Decor My Verizon mobile app strategies Finalists: Mountain Dew, Telus, Wyndham
Carrie Thomas
Market Development Manager
42 Loyalty Management™ | Q3 & Q4 2019 | loyalty360.org Loyalty Management™ | Q3 & Q4 2019 | loyalty360.org 43
Conference Review
Emily Rudin
Chief Customer Officer
44 Loyalty Management™ | Q3 & Q4 2019 | loyalty360.org Loyalty Management™ | Q3 & Q4 2019 | loyalty360.org 45
7695 Beechmont Ave.
Cincinnati, OH 45255
SPECIAL
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LoyaltyExpo.com
Code cannot be combined with other offers or applied to existing memberships. Valid until December 31, 2019.