FANBOX Loyalty
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FANBOX Loyalty
Our mission is to help you get the most out of your loyalty programs and allows you to build profitable relationships with your customers.
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Connecting with customers through the power of social media and mobile : The next SoLoMo

Google, IBM, Apple, Facebook and Microsoft all have the same goal — to connect with consumers. Thanks to the democratization of information technology, the global retail landscape has drastically changed in the last decade.

 

Welcome to the Knowledge Era — it’s the Klondike again, but this time we’re not gold mining; we’re data mining. Therefore, to remain competitive, retailers must start to connect with their customers and collect relevant information about them.

 

One of the most effective ways to do that is to launch a loyalty program. A good program will allow you to capture relevant data and eventually make offers that truly cater to customers’ needs. Contrary to an ad campaign, where the main objective is to attract new customers, a loyalty program is designed to retain and engage customers. In this time of economic slow-down, customer retention is becoming even more important for retailers.

 

Loyalty programs aren’t new — they’ve been around for the past couple of decades — but with technology trends such as social media and mobility, the game is changing … once again.

While some retailers have established their own loyalty programs, they may not yet be taking advantage of social media and mobile devices. It can be a daunting task to build a customer database and design a loyalty program that effectively incorporates these new technologies. But there’s an easy solution.

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Interbrand - Best Global Brands 2012 - this year big winner is Apple with an increase of 129%

Interbrand - Best Global Brands 2012 - this year big winner is Apple with an increase of 129% | FANBOX Loyalty | Scoop.it

1- Coca-Cola

2- Apple

3- IBM

4- Google

5- Microsoft

7- GE

 

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5 tips to get the most out of loyalty programs - Clean house, Get organized, Keep track, know your rewards and think quality not quantity

How many loyalty/ reward cards are taking up space in your wallet right now?

 

I have 11 and that’s after I cut up the ones that I almost never use. If you’re like the average American household, you belong to 18 of these programs and you only actively participate in about half.

It’s time to get out from under all that extra plastic and make sure you are taking advantage of the programs you are actively using. These tips can help.

 

Clean house. First decide based on your lifestyle which cards you really need and get rid of the rest. Keep the cards you use on a daily basis, hold on to a few for travel unless you travel extensively for work and get rid of the ones you haven’t used in 6 – 12 months. Check first to see if you have redeemable rewards or if you can transfer existing rewards to another program.

Get organized. Loyalty cards only pay if you use them so keep them in one place. Put them in your wallet or if you’re the couponing type you might keep them in a pouch with your coupons. Years ago, I kept mine on a separate key ring but as I added more and more cards, it started to annoy me.

 

Keep track. In 2011, $16 billion (one-third) of rewards earned went unused! Stay on top of your balances, expiration dates and promotions to make sure you get the most out of your membership. It may help to focus on the top 5 programs that you use. Online resources such as Points.com and UsingMiles.com are designed to help you streamline the tracking of your reward programs and will notify you with promotions, expiration dates, etc. Check to see if these sites have partnered with programs in which you participate.

 

Know your rewards. The most important factor here is to know how reward programs work. Some let you use points to purchase items, some reward you with free gifts, others give you ‘immediate’ cash back. I have been a member of CVS ExtraCare for years and just discovered I’ve been tossing rewards in the trash with my receipts! No wonder I never accumulated any points! Study your most commonly used programs and make sure you know the deal.

Think quality, not quantity. In the future, when you’re tempted to enroll in a new rewards program, take a minute to think it over. Ask for information, check out the program online and decide if it will really benefit you and your family.

 

How do you manage your loyalty programs? Which programs to you love and which ones could you do without?

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near-field communication can be used to increase in-store engagement

near-field communication can be used to increase in-store engagement | FANBOX Loyalty | Scoop.it

“Incorporating Mobile Solutions In Store To Provide A Seamless Shopping Experience” session. Additionally, the session presented examples of companies that are using mobile and digital in-store to improve the in-store experience.

“We’re obsessed with thinking about NFC in terms of payments,” said Peter Sheldon, senior analyst at Forrester Research, Cambridge, MA.

 

“As we think about NFC, don’t just think about payments,” he said. “In fact, don’t think about payments. Think about what else NFC can be used for or to enable interaction in a store environment.”

 

Multichannel retail
One of the main challenges for multichannel retailers is sifting through the massive amounts of technologies available to decide which will be most helpful to improving both the in-store experience for consumers and ROI.

 

Forty-four percent of total retail sales will be influenced by the Web by 2016. With consumers actively relying their devices as a shopping tool to price compare, research and buy, this presents a strong case for mobile Web and applications.

 

The need to have a product immediately is a key driver in why consumers prefer to go into a store to shop, per Mr. Sheldon. However, retailers such as Amazon and Walmart are increasingly looking at same-day online shipping, which will be a trend to watch in 2013.

 

Digital touch points – such as mobile and tablet – are the glue that hold together the digital world to the bricks-and-mortar world.

Although the idea that consumers use mobile devices in-store is not new, there are key business metrics that retailers are using as they think about investing digital into the in-store experience.

 

For example, during the holidays consumers often know exactly what they are looking for and want to get in and out of stores as fast as possible. Mobile POS allows retailers to empower associates to line bust. Other uses including clienteling help retailers upsell and create a stronger one-on-one relationship between retailers and consumers.

Efficiency becomes one of the main reasons that retailers use digital in-store technology.

 

Over time, consumers have become more empowered with their smartphone in-hand while they shop than store associates. Additionally, consumers expect to have mobile in-store experiences such as Wi-Fi and being able to scan QR codes.

 

Per Forester’s research, 17 percent of consumers have used a self check-out aisle. Although the percentages of consumers that have used an in-store technology is small, there is a sizable interest from consumers to use the technology.

 

When it comes to showrooming, the key is to put the power in retailers’ associates hands.

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25 factors for driving greater loyalty – Download the report from ICLP - http://bit.ly/TzDBZv

25 factors for driving greater loyalty – Download the report from ICLP - http://bit.ly/TzDBZv | FANBOX Loyalty | Scoop.it

ICLP are presenting at this year’s Loyalty World Conference in London focusing on “Bridging the Loyalty Chasm” Stuart Evans will be exclusively presenting the findings from their global consumer loyalty research study in association with Forrester Consulting at the event on 5th November. Pick which seminars you would like to attend and register here.

 

With the loyalty landscape changing dramatically over the past 25 years, the future promises to be very exciting for brands looking to deepen and make more emotional connections with their customers.

The fast pace of technological change and the exponential growth in the ways customers can now engage with your brand means that it is no longer sufficient to deliver upon what your customers want today. As the legendary Steve Jobs once said: “You can’t just ask customers what they want and then try to give that to them. By the time you get it built, they’ll want something new.”

 

The past is not always an indicator of the future but it does contain a rich history of insights and learnings. With 25 years’ experience in working with brands to positively motivate their customers across multiple industry sectors, on a local, regional and global basis, we have determined 25 of the key considerations for improving customer loyalty 3 of which include:

1. Embrace digital convergence

Understanding digital convergence and how using rich social data can generate gaining greater customer insight means that brands can give customers the personalised, interactive experiences that will consistently arouse their interest enough to earn their loyalty.

2. Redefine the meaning of valuable customers

Brands are having to work much harder to maintain a positive impact on purchase behaviour and continue to engage their more commercially valuable customers. However the value of social media influencers and peer recommendations is increasing so it is vital to also cultivate the business opportunity presented by these online and mobile advocates. Look again at your definition of “valuable” customers to determine and invest in the most appropriate strategy for nurturing them both now and in the future.

3. Foster more fun and enjoyment

The game has become an acceptable vehicle to drive engagement on a more informal level. Gamification is also being used within traditional loyalty programmes such as Priority Club Rewards’ “Win it in a Minute” trivia game and American Airlines “Penalty Challenge.”

 

The next generation of loyalty programmes must focus on generating more consumer emotion – creating games that are involving and exciting, stretching the brand into other areas of the customer lifestyle.

 

Download our free insights report to read all 25 considerations including case studies and find out:

-Successful strategies for inspiring deeper customer engagement
-How to harness technology and interactivity to get closer to your customers
-Key considerations for improving loyalty globally and locally

 

download the report

http://bit.ly/TzDBZv

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Safeway bets that loyalty program will pay off

Safeway Inc. is betting that its investment in a new customer loyalty program will eventually pay off, as the supermarket operator looks to fend off big-box retailers and other competitors that are expanding their grocery aisles.

 

The Pleasanton, Calif.-based company, which also owns Vons, Dominick's and other grocery chains, said the cost of launching its "Just for U" program continued to eat into its profit margins in the third quarter. But the program is already showing signs of boosting results, Safeway said, with its market share up and sales in the current quarter running up 1 percent.

 

Safeway also noted that the launch costs are now in the past.

The loyalty program, which offers personalized discounts based on past purchases, is intended to help Safeway hold onto shoppers in an increasingly competitive environment. In addition to competition from retailers such as Target, traditional supermarkets are increasingly competing with drugstore chains and dollar stores.

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Four Steps to Grow and Cultivate Your Loyalty Program - 1.Review your goals - 2.Focus - 3.Innovate - 4.Optimize program benefits

Four Steps to Grow and Cultivate Your Loyalty Program - 1.Review your goals - 2.Focus - 3.Innovate - 4.Optimize program benefits | FANBOX Loyalty | Scoop.it

My colleagues can tell you that although we're well into fall in New England, I still love the garden as loyalty program metaphor. That's because loyalty programs, like gardens, are living entities that require ongoing monitoring and periodic refinements to ensure they grow stronger, continue to operate at peak performance, and deliver the results you need for your business. Here are the four steps to getting your program ready to support growth:

 

Step 1: Review your goals and the (competitive) landscape

  

Before you tackle the issue of “what” and “how much” to offer to members to incent their behavior, take time to review:

 

Desired behaviors: Are you trying to encourage members to visit more frequently? Spend a bit more? Advocate to friends and family?

 

Customer’s needs: What goals are your members trying to realize? What activities are they passionate about?


Brand alignment: How well does your program reflect the unique selling point or values of your brands? Where are the misalignments?

 

Program goals: What key metrics do you measure to report on program success: member acquisition or retention, e.g. the percent of customers who redeem?

 

Competitive activity: What outcomes are these programs focused on? How differentiated is your program from theirs?

 

Determining which, and how many, rewards to give your customers, requires careful consideration of multiple factors. Before you proceed down a “program optimization” path—test the soil. It’s impossible to build a successful garden if you’ve chosen the wrong plants or haven’t added the nutrients your soil needs to support them.

 

Step 2: Focus

 “If you persist in trying to be all things to all people, you will fail. The alternative, then, is to be something important to a few people.” – Seth Godin, in We Are All Weird

 

The focus of your program may be on high-value members and that’s okay. Today’s high value customers are fairly easy to identify; they’re the ones who buy higher margin products, visit often, and spend in multiple departments and categories. But concentrating solely on these customers means that you may be missing an opportunity to lay the foundation for future success. Consider identifying customers who have high valuepotential (via predictive modeling) and nurture those relationships as well. In addition, you may find, upon reviewing your goals and objectives, there are certain other segments of customers that matter as well – and for whom you need to focus activities and attention.

 

For example:

Caesars Entertainment’s re-launched its Total Rewards program to celebrate its position as the country’s leading entertainment loyalty program. The new program offers additional offerings and experiences designed to appeal to Entertainment Seekers (in addition to the core avid gamer); their relaunch included concerts by Cee Lo Green, Mariah Carey, P.Diddy and Gavin DeGraw.

Best Buy gave select members of its Reward Zone loyalty program a ‘surprise and delight’ reward, a ticket to the Twilight premier. Sales remain the driving force behind their points-based loyalty system, but in surprise-and-delight programs, marketers can choose consumers who might be major spenders but also because they're passionate or the kind of people who drive incremental buzz online. They’re using this approach to build greater engagement among high-value customers and create more PR-worthy and effective programs in a crowded loyalty space.

Bottomline: focus on the people that are aligned with what you are trying to do.

 

Step 3: Differentiate and innovate

Colloquy’s report on the state of the loyalty industry finds the average US household has 18 loyalty program memberships. Eighteen!

 

If your program is purely a frequency-based program, differentiation isn’t your goal. However, dialing up program innovation to differentiate from competitors may prove valuable if your desire is to create loyalty, drive incremental spending, stronger customer engagement, and additional brand advocacy.

 

I love home-grown vegetables, and the varieties I pick are those that do well in my garden and that I can’t buy in a store. Although I love to garden – if the only product I could grow was one that I could easily buy, I may reconsider the time I was willing to invest. My pride in this activity would decrease and I’d tell fewer people about my garden.

For the members you’ve decided to focus on, differentiate your program from competitors. Give your members a reason to return— pride in their association with you and something to talk about!

 

Step 4: Optimize program benefits

You’ve reviewed your objectives and the competitive landscape. You’ve targeted specific members and have embarked on a program to identify innovative ways to differentiate yourself in the marketplace. What now?

 

To justify changes in your program, you’ll need to articulate the incremental value additional benefits will deliver. You’ll need to do that if the additional benefits require additional investment – or if you are working with franchisors who demand financial justification to justify additional investment!

 

Over the last ten years, we’ve worked with industry leading programs to analyze the cost-benefit of program benefits to support program development or refinement. Here are a few examples where we conducted quantitative research using advanced analytics (like Discrete Choice):

 

A leading upscale hotel chain, needed to figure out an on-property benefit it could provide in place of a guaranteed suite upgrade since some the upgrade wasn’t a viable option at some of their hotels. An alternative was identified and members are given the choice at check-in.

 

As it develops and acquires new brands, this hotel loyalty program needed to identify the right type and level of benefits to offer at to guests at its extended stay hotels – benefits that would be of value to guests who stay, on average, for two weeks at the hotel

A leading luxury retailer wanted to optimize structure to drive incremental sales and refresh benefits to incorporate more brand-relevant experiential elements for the refresh of its flagship shopper loyalty program

 

Discrete choice is a great tool for loyalty program optimization because it allows us to:

 

Optimize programs based on client’s goals: By examining member interest in thousands of alternative benefit packages – and calculating the cost of providing those benefits – we can identify the best programs in terms of profit (‘high customer value’ and ‘low cost’), or for other key outcomes like member acquisition, increasing take rate from competitor’s customers, etc.

 

Estimate shifts in market share that could result from changes to your program benefits

 

Examine incremental spend - attributable to program benefits - from a couple of different angles

 

If you’re looking to optimize your loyalty program resources to get as much benefit as possible, following this four step plan may cause you to think differently about your program, the benefits it offers and the potential that exists. Focus on what, and who, is most important and pruning back where you may be over-delivering can help ensure that your program grows stronger, operating at peak performance, and delivering the results you need for your business.

 

By Judy Melanson

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The use of loyalty cards has exploded since the beginning of the crisis - the case of the Spanish market.

Since the begining of the crisis, the use of loyalty cards by consumers has exploded, and consequently, companies try to offer new benefits to meet the new needs of consumers, focusing in particular on promotions and discounts. This article was released following the publication of a study by The Logic Group and Ipsos. According to this study, the Spanish have on average 5.8 loyalty cards, indicating a trend sharply upward. Moreover, 52% of the respondents said that the negative economic climate has led to an increased use of their loyalty cards, especially in restaurants and cafes. In addition, 21% have joined new programs for this reason, hoping to save money. These statistics validate the predictions made by the French agency 'Observatoire de la Fidélisation' in its Loyalty Barometer (http://www.observatoire-fidelite.com/barometre-de-la-fidelite).

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How loyalty schemes can unlock real value

Loyalty programmes that stay attuned and responsive to their members by giving them tangible rewards are those that will be left standing in an increasingly competitive environment, according to Jolande Duvenage, CEO for the South African coalition loyalty programme, eBucks.

 

Duvenage asserts that the increase in rewards programmes in the market, and a greater commitment from the companies that run them, has matured the sector and created some healthy competition in the South African loyalty market. In addition, consumers are becoming more savvy and knowledgeable when it comes to joining and using rewards programmes - and tend to use them to extend their purchasing power and stretch their wallets. mbragoli This article is copyright 2012 TheWiseMarketer.com).

 

"Consumers want to feel like they are in control of their finances and are wary of being exploited. We have found that many eBucks members see the rewards they earn each month as a way to stretch their wallets," said Duvenage.

 

Rewards and loyalty programmes are seen to play an increasingly important role in the economy as they help increase purchasing power. For example, in good times, loyalty points earned by making everyday purchases can be set aside to purchase big ticket items or luxury items such as expensive electronics, holidays or expensive jewellery. In tougher times, members of rewards programmes tend to rely more on their rewards currency to make ends meet by purchasing everyday items like fuel, groceries, medicine and airtime.

 

Duvenage said eBucks has brought more retail partners on board over the last few years to add everyday value to members. In the past year alone, nearly half the total eBucks spent each month were redeemed on necessities.

 

Loyalty programmes generally use one of four mechanisms to reward members, with each reward type offering its own set of benefits:

 

Discounts and cash back
Discounts offer an immediate monetary reward to members but are generally limited to transactions at specific partners. A cash back programme generally gives customers cash back in the form of a credit against an outstanding balance.

 

Rewards currency programmes
This would be a programme like eBucks where the rewards currency is not a reward in itself, but a means to a reward. These programmes offer versatility and choice.

 

Soft benefits
Soft benefits hold significant appeal for many rewards programme members. In this case there is no money that customers will receive back and no rewards currency. Rather, soft benefits involving additional services or exclusive privileges for customers are offered.

 

Hybrid rewards
The latest trend in the loyalty industry is to offer a combination of rewards currency, discounts, cash back, and soft benefits. A hybrid programme allows consumers to use their rewards currency as a way to extend their purchasing power. For example, eBucks now allows its members to take advantage of significant eBucks discounts on selected items in the eBucks shop (such as gadgets, movie tickets, flights and more) using their eBucks as a method of payment.
These different mechanisms are then packaged into a rewards programme offering either in the form of a customer club, where you pay a membership fee, or as part of a free rewards programme.


Whether a consumer prefers several frequent, smaller rewards or the ability to save or pool their rewards currency for a luxury item, the success of a rewards programme to a large extent depends on how relevant the reward is to the individual. It is important for consumers to establish whether their lifestyle and behaviour is aligned to the rewards programme of their choice to ensure that the most value can be derived.

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Free Download of White Paper - Building Brand Loyalty In The Digital Age

Leading marketers today are creating nothing short of a “Relationship Renaissance” with their customers. Integrating the power of digital media with their broader marketing efforts, they’re putting personal, one-on-one relationships at the heart of their efforts to build lasting customer loyalty. That’s the inescapable conclusion of The Relational Capital Group’s most recent research report: “Building Brand Loyalty in the Digital Age.”

 

In the course of our research, we talked at length with CMOs at ten leading companies to find out how they’re embracing the Relationship Renaissance and to crystallize key insights that other marketers can put to work. Here’s what we found:

-Marketers are rediscovering the roots of customer loyalty
-Loyalty begins with the brand experience
-Engaging brand experiences cut through the clutter
-Today’s technology enables unprecedented engagement
-Repeated engagement leads to strong relationships
-Strong relationships drive lasting loyalty
-Customers are actually loyal to people, not brands
-Social and mobile apps are fueling the Relationship Renaissance

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Loyalty Programs, Other Strategies Can Help Retailers Monetize Big Data: Study | Loyalty360.org

Using loyalty programs can help retailers monetize Big Data, according to a newly released report from IDC Retail Insights, Framingham, Mass.

 

“The goal of big data analytics – monetization of its insights through traditional levers of customer loyalty, revenue growth, cost reduction and new business models – depends on harnessing four big data streams, customer data social data, social data, market data and supply data within the decision management frameworks of key retail business processes and their four types of intelligence,” the research says.

 

IDC says that the “3rd Platform of information technology” and its four pillars—big data and analytics, mobility and broadband, social business, and cloud services – is creating an ecosystem within which retail business and IT strategies will continue to rapidly evolve. The 3rd Platform is already playing out in retail, creating new line of business roles, bases of competition, applications and analytics, and the adoption of consumer and associate online devices inside stores.

 

The research firm adds that together these forces create an information environment within which retailers earn customer loyalty, bring successful new products to market, collaborate through supply chains with business partners, enable associates, reduce risk, ensure compliance, promote their brand. However to do this effectively, retailers need to capitalize on big data and analytics.

 

There are some of challenges as well. The research points out that value creation requires alignment of big data and analytics with “the three imperatives of omnichannel retail” – insight across the retail value chain, personalization of consumer touch points, and opportunities for community engagement with the brand.

 

Also posing challenges in the successful monetization of Big Data are volume, velocity and variety of data. IDC says retailers can meet these challenges by integrating Big Data insights with transaction systems and traditional business intelligence; revealing opportunities by spotting episodic, recurrent and systematic patterns; discovering and determining the meaning of unstructured data; extending retail data models to encompass big data entities; finding new skill sets and fitting technologies to meet business needs.

 

“Four quadrants of the intelligent retail economy—customer data sources, social data sources, market data sources, and supply data sources produce constant streams of data creating millions of transactions and billions of interactions,” said Greg Girard, IDC Retail Insights program director, one of the experts who conducted the research, in prepared remarks. “The returns on investment in big data and analytics can be monetized through traditional levers of customer loyalty, revenue growth, cost reduction, and new business models. Value creation requires aligning big data and analytics projects with three imperatives of omnichannel retail – insight, personalization, and personalized community engagement with the brand. Retailers will derive more value from big data and analytics as they successfully manage five dimensions of change – intent, process, people, data, and technology."

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Zipcar CEO Sees Loyalty Program for Heavy-Use Customers

Zipcar CEO Sees Loyalty Program for Heavy-Use Customers | FANBOX Loyalty | Scoop.it

Zipcar Inc., the company that rents cars by the hour or day, said it’s “pretty likely” to begin offering a loyalty program that rewards frequent users.

 

“We’re looking more narrow and deep, our best members, as opposed to thin and wide for all members,” Griffith said at the company’s Cambridge, Massachusetts, headquarters. “They tend to be frequent users. But it’s more than how often you use it. We’re building a community, right? Are you back on time? Do you fill up the gas when it’s below a quarter of a tank?”

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Walmart launched a first-of-its-kind program called Vitality HealthyFood, offering a 5% discount on produce items to HumanaVitality members.

Walmart and HumanaVitality have developed a unique way to incentivize people to eat healthier while promoting increased customer traffic at Walmart stores.

 

The companies on Wednesday morning launched a first-of-its-kind program called Vitality HealthyFood, whereby Walmart offers a 5% discount on produce items to HumanaVitality members. The discount is loaded on a card in the form of a credit within five business days that can be redeemed on a subsequent trip to Walmart.

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Social CRM Offers Big Rewards If You're Persistent

6 Realistic Social CRM Expectations

 

With all this, it's easy to have unrealistic expectations about what social CRM will give you. Look beyond the slick veneer of vendor presentations and demos. In truth, only six things are for sure at this point:

 

1, You'll need to collect new types of data about your prospects, and more of it, than ever before. Expand your "terms of use" and opt-in verbiage.


2, Identity management-that is, understanding exactly who's who across your infrastructure-is a significant issue. Be prepared to expend significant effort on this.


3, Getting the payoff from social CRM is going to require a lot of integration and/or custom code. Watch out for data model issues.


4, Putting all this data in doesn't mean youll be able to predict anything for a while. People are complicated. Models are fallible.


5, Useful analytics are usually more complicated than you might think. Think Big Data.


6, It's still the early days for products, skills, processes and best practices. Now is the time to upgrade your internal toolbox.

 

Reaping the benefits of social CRM will require some work on your part, and it won't happen overnight. Remember, though, that innovation rarely comes to those who wait.

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Sears Competes On Big Data and Loyalty Programs - Forbes

Sears Competes On Big Data and Loyalty Programs - Forbes | FANBOX Loyalty | Scoop.it

Sears is doing amazing things with technology; it has a hit on its hand with its loyalty program. Retail trade magazines have focused on the loyalty program, the technology, and the significant investment which Sears has made as indicators of improved performance in the future.

 

In naming Sears Holdings the Master of Enterprise Loyalty (Global) COLLOQUY said the company recognized that it had great brand recognition including Sears, Kmart, Lands’ End, Craftsman, Kenmore and DieHard, but it lacked customer recognition.

 

“Their best customers didn’t know they were best customers… a risky situation in a love them or lose them retail environment…

“The solution was 3 years in the making, which included programming that would capture, analyze, and report on customer activity at an individual level, across all 4,000 locations. The ensuing information would enable Sears to provide the differential treatment and personalized attention their best customers deserved…

 

“Results: Sears achieved an active member base in the 8 digits, exceeding the projected 36 month membership target in 17 months. Member spend is now identifiable, enabling SHC to understand member purchase history, leading to more relevant and targeted communications and offers. And just as anticipated, members shop more often and spend more per transaction than non-members.”

In fact, participation in the loyalty program is up to 80 million members and counting, according to the Sears Holdings website.

Sears Holdings manages that huge amount of data with the latest technology; Shelley joined the company to work on the transition from legacy systems.

 

Shelley said that big data and Hadoop allow the company to keep all its customers’ history to the lowest level of detail — “every customer, every SKU, every store, every point of history for as long as you want to and do statistical analysis on it. With Hadoop there really isn’t any restriction.”

 

Sears has been a leader among non-Internet companies in making the most innovative uses of big data, he added.

“We are bleeding edge on a large scale, Some of the innovations are just amazing. Now you can put all your data in one place and achieve a single point of truth and use it at a granular level that was pretty much impossible before.”

 

The tools can be used across the company’s operations. Fraud detection was an early use case but big data is also used for supply chain optimization, personal pricing, promotions, tracking marketing campaigns and locating and pricing overstocked inventory for clearance.

 

“We are re-engineering an old legacy company to become a big data company.”

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brands that are pushing the boundaries and trying new and innovative ways to increase customer engagement

Here are just a few of the brands to be watched or even followed for their interesting and innovative approaches to loyalty and engagement today:


Apple is an iconic brand and the innovations never cease: new store concepts, the 'geeks' at the Genius Bar, iTunes, iCloud, iOS6, Apple Passbook and iTravel. But perhaps Apple's greatest achievement is how it builds loyalty into the core of its products and experiences. Their pre- and post-sale support is literally, pure 'Genius' - a recent study from market research group NPD found that 60% of Apple owners are more likely to buy Apple again because of their positive experience with Apple's in-store technical support.

 

Virgin America - one of the true innovators in the airline space - recently announced a prize of a sub-orbital space flight on Virgin Galactic for its most frequent flyer. Not only does this utilise the assets owned by the Virgin group of companies, but it also offers a money-can't-buy experience. The programme offers its everyday frequent flyers a raft of innovations, perks, bonuses and benefits that are easily accessible.

 

KLM - whose innovative Surprise social media engagement campaign combined social data with the classic loyalty elements of surprise and delight. Based on passenger's social media activity they KLM delivered personalised gifts in real time to a targeted group of loyal customers flying from Amsterdam's Schiphol airport. These gifts were personalised based on insight gleaned from passenger's social profiles (see video). Furthermore they have recently launched a new feature called ' Meet & Seat' - which allows passengers to view each other's Facebook or LinkedIn profiles (if authorised) and choose a seat based on whom they want to sit next to.

 

Zappos has built itself on a culture of providing the ultimate customer experience, and going 'above and beyond' the call of duty. The company's commitment to staff empowerment delivers 'random acts of kindness' to both surprise and delight customers. Zappos are the masters at customer experience and service, showing how to drive customer loyalty without a formal rewards programme.

Starbucks recognised the importance of customers in the innovation process with the launch of MyStarbucksIdea in the US, through which customers can submit ideas on how to improve the business via Twitter. With over 70,000 ideas submitted in the first year, the strategy ensured that customers felt empowered and part of the brand experience. For example Starbucks used feedback from MyStarbucksIdea to add mobile payments (through the Starbucks App) even at drive-thru windows. Not only do customers remain engaged with the brand across all channels, but data is captured to allow more personalised offers.

 

Nike+ is a fitness app that works by tracking the performance of runners through a wireless connection and GPS. By attaching a sensor to a running shoe, Nike+ can track time, distance, pace, calories burned and other details as you run. Nike+ has become a case study for marketers around the world for a number of reasons, but it's the seamless GPS integration that makes it such a compelling example of Social-Location-Mobile or 'SoLoMo'. The Nike team approached the whole concept from the audience's perspective, identifying functionality that adds real value to runners - from tracking your route to connecting you with other runners, and even letting your friends send you live 'cheers' messages while you're out on the road.

 

American Express continues to innovate in the social media space, working with Twitter, Foursquare, Facebook and recently they have teamed up with gaming company Zynga (developers of Farmville). This latest move is a first in the prepaid card market by offering in-game incentives for daily expenditures. The reloadable pre-paid card offers reward users in Farmville cash. This again highlights how American Express is really pushing the boundaries of loyalty from a reward perspective.


Building loyalty at the heart
Brands that have an inherent focus on loyalty from the outset and who strive to create a loyalty ecosystem (such as Apple) are the real pioneers. But should this level of innovation be more about the technology rather than employing advanced techniques, or does the key to success lie in building innovation into business culture? While the technology is an essential component, corporate culture must openly embrace innovation at all levels, along with a strong brand message around the benefits of innovation that will empower staff to produce a more satisfying customer experience. In short, technology has become the key enabler to innovation (i.e. as a platform or mechanism), but innovation should not necessarily be all about the technology itself. Furthermore innovation is not always about being the first or the best; it can be achieved through creating differentiation or improving one aspect of business performance.

Whatever the situation, one thing is clear - if brands do not do the basics really well, then any innovation could be a wasted effort. For example, when Research In Motion's (RIM) servers crashed in October 2011, and millions of Blackberry users were left without email or text services, the last thing on consumers' minds was the company's innovation: their concern immediately came back to the basic element of providing a reliable service.

 

In today's atmosphere of competitive innovation there is of course a risk that brands will fall behind or even stagnate completely. So, in order for brands to start thinking and acting more innovatively, they should look at what the pioneers and early innovators did right. For example, brand must allow for a customer-centric culture that allows ideas to flow. Brands must also prepare to invest more in innovation while understanding that not all new ideas will produce results, so a results-driven culture is unhelpful to those pushing the boundaries of innovation: a sensible balance must be found between a results-driven focus and an innovation focus.

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Square services to be available in Canada

Square services to be available in Canada | FANBOX Loyalty | Scoop.it

Square, a firm which enables smaller businesses to accept credit cards, will be providing services in Canada, its first market outside the US (view press release). Square’s Mobile Card Reader plugs into the headphone jack of an iPhone, iPad or Android device. The Square Register app allows users to accept credit card payments at a transaction rate of 2.75% per swipe.

 

“We are focused on making commerce easy for everyone,” said Alyssa Cutright, VP of International for Square. “Square builds free tools for local businesses of all sizes and types to thrive. We’re thrilled to introduce Canadian businesses and their customers to the most seamless and enjoyable way to do business.”

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What Marketers Are Getting Wrong About Loyalty / DECISION-MAKING + BUSINESS DESIGN + EXPERIENCE DESIGN

What Marketers Are Getting Wrong About Loyalty / DECISION-MAKING + BUSINESS DESIGN + EXPERIENCE DESIGN | FANBOX Loyalty | Scoop.it

The biggest mistake brands make with loyalty programs is to model them on human loyalty. Human loyalty is an admirable, deeply emotional bond that unites us. It’s irrational, inexplicable and often counters our survival instinct. The marketing world, ever the imitator, often looks to these emotional bonds as its guide to creating loyalty.

 

This is a mistake. It’s time not to make loyalty more "human," in the traditional way, but to treat it as a question of economics and behavior.

 

It’s an old obsession of marketing to make us care about products as much as we care about each other. Brand building is, in the words of Saatchi & Saatchi CEO Kevin Roberts, to “inspire loyalty beyond reason.” It’s all about turning brands into human bonds. But at the same time, most loyalty programs don’t take into account some (non-emotional) very human preferences and behaviors. Consider the typical loyalty program from an airline like Delta. The point-building process is painfully slow and there’s a single-year window for customers to keep their Medallion status. After that, the process starts over. Customers begin with an impossibly high minimum point requirement, making gratification too delayed. Those who don’t give up on the spot await laborious redemption (they can use their miles for certain destinations but not for others), often irrelevant partner benefits, and disinterested customer service.

 

Marketing is not where loyalty programs belong. Their place is within a company’s revenue structure and within users’ decision-making process. With loyalty programs, companies are dealing with customers’ clear expectations of tangible economic benefits. To their interactions with a company, customers bring a specific assessment of some form of economic gain with behavioral dynamics to match. The new model for building loyalty capitalizes on these dynamics. It is based on decision-making, business design, and experience design for tangible outcomes.

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NFC mobile payment transaction spend to reach USD100 billion in 2016 :: NFC mobile payment transaction spend to reach USD100 billion in 2016

NFC mobile payment transaction spend to reach USD100 billion in 2016 :: NFC mobile payment transaction spend to reach USD100 billion in 2016 | FANBOX Loyalty | Scoop.it

The total value of spend of NFC mobile payments will rise from USD4 billion in 2012 to USD191 billion in 2017, breaking the USD100 billion mark in 2016 (view press release). According to ABI research, mobile payments and the convergence between payment types, proximity, P2P and online, stored on a single NFC handset will be the initial trigger driving market convergence across a number of other markets, including ticketing, retail, loyalty and access control.

 

 

However, market convergence is not ready, as yet, for mass commercial roll out, but the potential value add that NFC brings has been identified. Smart card and IC vendors, device OEMs, MNOs, partnering service providers, and payment networks should benefit if convergence proves successful.

 

“There remains a number of barriers and limiting factors that need addressing before convergence success. The business models have not yet been clearly identified and proven with no real-world case studies to demonstrate the potential returns,” said ABI’s practice director John Devlin. “Current MNO pricing strategies makes market entrance and investment difficult for potential partners. This is demonstrated by MNOs holding back from large-scale investment in NFC smartphones. Also Telefonica O2’s mobile wallet and Barclays PingIt have not included NFC functionality at launch. Although NFC is in their roadmaps, initial convergence is based upon the use of other technologies.”

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5 Rewards Insights from Best Buy

In building its rewards program, RewardsOne, Best Buy learned five important insights about loyalty promotions, Ana Grace, senior manager of emerging platforms, said during a recent Loyalty360 webinar on What’s Hot in Rewards.


Best Buy built its program around the concept of thrilling the customer, Grace said. “A receipt marks the beginning of a relationship with a customer. It’s our job to delight them every step of the way.”


To do that, Grace said, Best Buy and other companies offering loyalty programs need to:


1. Offer a broad assortment of choices. Many of the programs offered today don’t meet consumer needs because rewards are difficult to redeem, there are no attractive redemption options, and there is a lack of redemption flexibility. Worldwide there are some 2 billion memberships. In 2010, there was $48 billion in rewards offered, but one-third not redeemed, according to Grace, adding that 60 percent for consumer rewards are for electronics. The best in class rewards programs offer a catalogue with a wide variety of options. But even the most popular ones can fall out of favor quickly, so it’s important to offer “long tail” items.


The first redemption locks customers into the program, so the quicker the retailer can get customers involved, the more value the retailer will gain, Grace said.


2. Offer transparent value. Customers are more educated than ever before; they shop through a variety of sites. Customers don’t want to pay a premium to redeem points. Grace recommended offering merchandise with long expected value. For example, a gaming system bought via rewards will remind customers of the program every time they use the product, building long-term goodwill.


3. Customers are expecting a retail-like experience with their rewards redemptions. Retailers need to offer convenience and flexibility. Customers want things when they want it, how they want it and where they want it. A rewards program is no exception, Grace said. So offering flexibility is critical. For example, customers want to be able to pick up items at the store or the warehouse as well as the option of having friends or family members making the pickup. They also want to be able to make returns at the store rather than through the mail.


4. Go mobile. By 2013, there will be 1 trillion connected devices (that’s seven per person). Customers are increasingly using a combination of digital and physical channels to purchase products and services. However, only 21 percent of loyalty programs have a mobile app. Apps make redeeming points faster and more convenient for customers.


5. Always innovate. APIs are accelerating growth because they enable a company to be wherever the customer is at exactly the right moment. Building on the backbone of APIs gives companies they greatest flexibility to design for the presentation formats of the future. Customers can stay within the company’s domain and it reduces the lag time between redemption and gratification. APIs enable real-time access to pricing and inventory as well as allowing for targeted offerings.

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Facebook-Datalogix Partnership to Track Offline Purchases by 100 Million+ Households

Facebook-Datalogix Partnership to Track Offline Purchases by 100 Million+ Households | FANBOX Loyalty | Scoop.it

Facebook has announced a new partnership with market analytics firm Datalogix, designed to measure how often Facebook's 1 billion users see a product advertised on the social site, then complete the purchase in a real-world retail store. How do they plan to do this? By tracking the purchases of more than 100 million households at 1,200 brick-and-mortar retailers.

 

So how can consumers opt out of the program? Go to the Datalogix Privacy page and scroll down (wayyy down) until you see the “Choice” section. The link in the top paragraph will only opt users out of cookies. Read to the last sentence in the Choice section and click on the link in the sentence, “If you wish to opt out of all Datalogix-enabled advertising & analytic products, click here.”

 

Fill out the form to opt out of the program, which should prevent Datalogix from including your information in the hashed data they provide to Facebook.

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Building relationships with retail showroomers

Building relationships with retail showroomers | FANBOX Loyalty | Scoop.it

Aimia’s Millennial loyalty survey compared Millennials and non-Millennial consumers and their attitudes towards brand loyalty, data privacy, social media marketing and rewards programme participation. The results from this research brought to life some interesting points on showrooming, and formed the basis of Aimia’s latest whitepaper – ‘Through the Looking Glass: Building Relationships with Retail Showroomers’.

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PointsPay(R) Launches First Mobile-Based Wallet to Convert LoyaltyPoints and Miles Into Cash

PointsPay, Inc., a company that offers a mobile wallet and payments solution for leading loyalty programs, has launched its PointsPay mobile app, the world's very first mobile-based wallet for redeeming loyalty points and miles at the point of sale (POS). Part of Loylogic, a leader in loyalty e-commerce and e-payments solutions, PointsPay is set to change the way loyalty program members redeem their points, by giving them the option to convert points or miles into more than 150 currencies, to spend in-store or online at over 30 million merchants worldwide.

 

"Millions of consumers participate in multiple loyalty programs, but struggle with lack of options and choice when it comes to redeeming and spending their hard-earned rewards. The ideal scenario is a loyalty solution that allows them to convert their points or miles into any currency, and to use that currency however they want," said Dominic Hofer, Founder and CEO of Loylogic and PointsPay. "PointsPay addresses this need on behalf of loyalty programs and their millions of members."

 

Turning Loyalty Redemption into Liquid Currency

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Raley's partners with dunnhumbyUSA to launch their customer loyalty program

Raley's partners with dunnhumbyUSA to launch their customer loyalty program | FANBOX Loyalty | Scoop.it

Raley's Inc. has launched a customer loyalty program that provides personalized offers based on customer preferences and past purchases.


The West Sacramento-based grocery chain spent more than three years developing the program that it created with strategic marketing partner, dunnhumbyUSA, which is a joint venture between grocery giant The Kroger Co. and London-based dunnhumby, according to a news release.


The “Something Extra” program, which is available in 120 stores, gives participants one point for every buck they spent on eligible products at Raley’s, Bel Air and Nob Hill Foods.


Customers get points in the form of quarterly rewards vouchers that can be used to save on future purchases, according to Raley’s.

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eBay teams with Aimia on customer loyalty plan

eBay teams with Aimia on customer loyalty plan | FANBOX Loyalty | Scoop.it

Digital retailing giant eBay Inc. is about to get into the loyalty marketing game, and it has turned to a Canadian company to make the move.

 

Aimia Inc., the Montreal-based company that manages Aeroplan and other loyalty programs around the world, will announce Thursday that it has inked a strategic partnership with eBay in the United Kingdom. It is the first time that the Web retailer has launched a loyalty program for its customers anywhere in the world.

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