28, SEPTEMBER 2012 • USa Today AN iNdepeNdeNt SUppLeMeNt froM MediApLANet to USA todAy revenue vs. mileage engage your employees two sides of SHrM on rewarding and the coin incentivizing the workplace loyalty & rewards

cAtegories to contemPlAte when choosing A rewArds 4 ProgrAm

EngagE, REwaRd, REpEat Author and loyalty expert Bryan Pearson discusses trust, responsible use of data, and respect for privacy in an evolving industry. 28, SEPTEMBER 2012 • USa Today 2 AN iNdepeNdeNt SUppLeMeNt by MediApLANet tO USA tOdAy challenges Minimize the spam and maximize rewArd what is important to you. choices 1 We recommend the mobile revolution

pAge 8

A new paradigm p. 8 A coalition option for loyalty making loyalty work p. 10 the new “I-network” for you eeling swamped? We chise Tasti D-Lite piggybacks on the These apps provide a super-fast Maximizing your programs know that consum- inclination to share by encouraging check out, might let you jump a ers like you are blitzed customers to earn loyalty points not line at a crowded venue, and serve by come-on pitches only for making purchases, but also up extra-relevant coupon offers like never before. We through social activity like letting based on your preferences and your also know that you’re friends know through Foursquare phone’s GPS location. responding to the sen- that they just purchased a treat. My sory overload by deleting company Starbucks Idea goes a step further, entertainment loyalty & reWards F 4th edition, sePtemBer 2012 emails before opening them or sim- asking what customers care about. Call it the gamification of the mar- ply shutting brands out, and instead The online forum is a place for sug- ketplace or the emergence of play- Publisher: steve trifon [email protected], turning to friends and other trusted gesting new Starbucks products, sumers: Shoppers want brands that nathan tuchman sources for information. potential locations and easier ways are fun. Leisure Systems, a franchi- [email protected] Business developer: Becky Weinstein COLLOQUY calls this the new to place orders. It has also gener- sor of Yogi Bear’s Jellystone Park [email protected], I-Network. You probably intuitively ated over 8,375 “social responsibil- Camp-Resorts, sends birthday post- ian silbert [email protected] understand the concept: Every time ity” ideas about things like smarter cards (from Yogi) to kids who have designer: alana Giordano you ask Facebook friends for recom- recycling and better ways for stores visited, good for a gift at their next [email protected] managing director: luciana colapinto mendations or go to a social forum to use water. Kelly hlavinka trip. FedEx used its NFL sponsorship [email protected] like TripAdvisor for advice, you’re Managing partner, CoLLoQUy to come up with an NFL-themed editorial manager: sara Quigley [email protected] networking to meet your exact Personalization promotion called Game Time that needs. Personalization can mean custom- compared shipping goals to “first ‘we recommend’ photo: istockphoto. com Fortunately, we see that some izing information, like SAS Scan- “smart down,” “second down,” and so on. companies, brands and local mer- dinavian Airlines does with its GameStop, the video game and contributors: dennis armbruster, companies are christopher Barnard, Greg Brown, chants are catching on. They are EuroBonusMatchMe frequent flyer entertainment software retailer, Phaedra hise, Kelly hlavinka, Bill learning to connect with customers service. Instead of presenting just has in-store kiosks where members hornbuckle, simon Keogh, Bruce Kerr, fitting what John lavin, Bryan Pearson, randy on their own terms. They will work a grid of how many miles you need of its PowerUp Rewards program Petersen, Jill smits, raymond h. to make your life easier, entertain to earn a free ticket, its Web site can look up (and show off) listings stanton, iii, melissa studzinski, they do into the tim Winship you, and only offer information or generates specific destination sug- of their personal game collections. deals that you care about. gestions for solo, romance, or family rhythm of how So next time you’re dealing distributed within: Usa today, september 2012 Smart companies are fitting what trips based on the points you have. with a company that swamps you this section was created by mediaplanet they do into the rhythm of how you you live, and with irrelevant emails, have a look and did not involve Usa today or its editorial departments. live, and connecting with consum- speed connecting with around — there are plenty of savvy ers in four powerful ways: Mobile technologies have created companies you can turn to that an on-demand marketplace. Mobile consumers in minimize the spam and maximize engagement FolloW Us on FaceBooK & tWitter! is personal and it’s fast, and we’re what is important to you. facebook.com/mediaplanetUsA No question: companies know that seeing companies like Starbucks four powerful twitter.com/mediaplanetUsA your growing power to connect with and Dunkin Donuts develop mobile Mediaplanet’s business is to create new anyone who shares your passions is apps for a variety of personalized ways.” customers for our advertisers by providing transforming the brand-consumer services, including making pay- kelly hlavinka readers with high-quality editorial content that motivates them to act. relationship. Frozen dessert fran- ments right from smart phones. [email protected] Elite With Another Hotel Program? We’ll Match It!

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Visit bestwesternrewards.com for complete terms and conditions. Each Best Western® branded hotel is independently owned and operated. ©2012 Best Western International, Inc. All rights reserved. 28, SEPTEMBER 2012 • USa Today 4 AN iNdepeNdeNt SUppLeMeNt by MediApLANet tO USA tOdAy InspIratIon As “industry insiders,” we at COLLOQUY get to study and analyze a lot of loyalty programs. we have seen what works and what doesn’t, and which cutting-edge innovations offer real value to customers. In fact, we tiers vote on them every year in our own version of the Academy Awards. 2 drUmroll PleAse! this year’s best loyalty programs are...

The programs that win our annual a customer-rewards program and COLLOQUY Loyalty Awards are the worked with its retailers to deploy it. best of the best worldwide, judged ■■ Indigo Books in Canada used its by loyalty industry experts. The win- loyalty program to launch itself ners are chosen because they under- online, making the transition stand what customers want, and to the digital age of bookselling. they offer something compelling The program offers customers like valuable rewards or a creative personalized recommendations, way to engage with the program. We points for online purchasing, and recently announced this year’s win- special game options. ners — nine leading programs that By figuring out what customers are models for others in the indus- wanted, Indigo was able to leverage try. Here, we summarize the best its loyalty program to transform its of the best, why they lead the pack, business and adopt a new strategy. and how other loyalty programs will Business-to-business initiatives like soon be copying them. PHOTO: ISTOCKPHOTO.COM those from Samsung and Hero show their mobile wallet. of exotic destinations and top- customers to redeem so that they that loyalty programs aren’t just for the mobile migration These three programs exemplify tier merchandise to encourage its stay engaged with the program, and consumers, but can also help shore ■■ American Express realized the hot trend of more and more loy- high-end customers to redeem the best ones find ways to make it up distribution channels and sup- that its Membership Rewards alty programs migrating to mobile their points. easy, fun and compelling. In today’s ply chains. Look for more U.S.-based customers were big mobile users, platforms, which will very soon out- ■■ Kimpton Hotel Group decided economy, companies recognize the B2B companies to create loyalty pro- so the company created a mobile number websites as customers move to reward its top customers with a value of keeping their “best” or top- grams that reach down to retail cus- app to browse rewards, shop and their online engagement away from surprise reward based on how much tier customers. Those customers tomers, and for increasing numbers redeem points. the desktop and onto mobile devices. they spent at the hotel in the past are increasingly more likely to be of companies to refocus their busi- ■■ SCENE, a movie loyalty program Likewise, programs are starting to year. Kimpton customers were able offered highly-customized rewards ness strategies around finding out in Canada, won two awards for its reward for social media interaction, to choose their own personalized that reflect their preferences, which what you, the customer, wants. mobile initiatives. One is a mobile which is a plus for members (usually reward for food, travel, wines or spa means it can pay off to focus your Today’s hot program winners app that lets members buy tickets younger) who are highly social any- treatment’s. activity in a few of your favorite pro- point toward the future of loyalty and redeem points; the other is its way. International programs lead ■■ Qantas wanted to hang onto grams in order to reach that level. — mobile and social, offering per- SCENEtourage social media game, the pack, but look for more U.S. mer- its frequent business travelers, sonalized rewards, and relying on which awards badges and points chants to offer mobile apps that save so it created a new Platinum remaking the business customer input and information to to members who create online you time and make it easy to track One membership tier, and then ■ Samsung India created a loyalty help shape business strategy. And characters that go to the movies. your loyalty program membership. increased the mileage earn rates to program for its distributors, offering the Oscar goes to — the customer! ■■ Subway in New Zealand created help customers get there. It also gave them information on new products, the country’s first mobile loyalty design-your-own rewards members a dedicated customer- performance rewards, and a series of PhaeDRa hiSe app, which lets iPhone customers ■ BDO Bank in the Philippines service phone line. social events. SenioR eDitoR, colloquy place orders for pickup, and pay with created a “bucket list” catalog full The best loyalty programs want ■■ Hero MotorCorp in India created [email protected]

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greg Brown raymond h. stanton iii christopher Barnard Vice President, loyalty, Promotion ceo and President, President and co-founder, & relationship marketing, savearound Partnership Points.com choice hotels international, inc. solutions, inc.

Question 1: in a word, engagement. Successful A successful loyalty and rewards pro- i think there are three core tests a loy- hotel rewards programs attract and retain gram will positively influence the custom- alty program must pass to be considered suc- How do you define a members because they are delivering real ers purchasing behavior by making it more cessful. successful loyalty program? value for travelers. Delivering points for profitable for the company through a series 1. Engage your members. There should be stays are important and one can accumulate of well thought out targeted campaigns. The many options to earn and burn points to fit great value by staying frequently. A more campaigns are based on data analysis of all the needs of every member. important value is the recognition and of the collected customer data, such as, pur- 2. Stand alone. Usually, both the economics appreciation elements that are the focus of chasing, demographics and product level of the program and the overall business are successful programs. Travelers spend lots of information, thus ensuring future com- included in profitability measurement. Suc- time on the road, and want the hotels they munications offer value to each individual cessful programs have evolved to measure stay at to be thankful for their business and customer. The goal of a successful loyalty the program as a core business. show appreciation for the loyalty. This extra program is to capture businesses’ strengths 3. Create mutually beneficial partnerships. attention is what drives engagement, and by offering enhancements to their products Loyalty programs are continually entering engagement is a higher level of loyalty than that will make the customer become more into business partnerships to expand their just passively collecting points. All success- engaged in the services/products that they value. The advantage a program delivers ful programs seek to achieve engagement provide. The client needs to be top-of-mind needs to be beneficial on both sides of these with their members. for their customers. partnerships.

Question 2: the primary benefit of joining multiple with fierce competition in every ver- one size does not fit all. Loyalty is programs is the ability to compare and con- tical, almost every major company and quickly evolving to become a vehicle for What are the benefits of trast your experiences with each program. financial institution has a loyalty program delivering value to a unique customer joining multiple programs This would also ensure you earned points for and if they do not they are researching profile. With a growing list of tools avail- versus joining a select few? your stays when your preferred hotel brand how to get one. There are many benefits able to consumers to manage multiple is not available. The downside of participat- to joining multiple programs, the main is, programs — consumers should be able to ing in multiple programs is that you may consumers should be able to save and be efficiently maximize their participation not achieve the Elite status benefits in your rewarded for each purchase they make: in multiple programs. Done correctly, a preferred program. Our program, Choice grocery stores, retailers, fuel, local mer- free flight, a free stay, and some targeted Privileges, offers increasingly attractive ben- chants and financial institution relation- discounts can all add up to a big benefit efits across our three Elite levels, which are ships. It is important that loyalty programs every year. In many cases it’s like getting a relatively easy to attain compared to other are kept fresh and enticing. Consumers are 5 percent salary raise! programs. The more you concentrate your very intelligent and connected. When cre- stays with your preferred program, the more ating a loyalty and rewards program one likely you are to earn the extra benefits and must keep in mind that their offerings can recognition that will drive engagement and be compared to others in the marketplace a higher level of satisfaction for your stays. with the click of a mouse.

Question 3: At a high level, much more firmly headed loyalty programs should be put in Personalization, flexibility and dis- toward participatory models that go above place to last for a long period of time. I tribution will be the main trends driving Where do you see the and beyond the traditional rewards trans- see programs evolving and gaining more the loyalty industry over the next decade. loyalty/rewards industry action model. In the next five years, there reach because of mobile capabilities. With Not surprisingly, these are the same forces in five years? Ten years? will be more focus on expanding program mobile solutions, consumers will receive driving commerce in general. Mobile and involvement beyond the transaction itself, instant rewards for responding to promo- internet technology will increasingly allow and finding methods to keep the member tions and based on their location with geo loyalty to be present in all aspects of people’s engaged on site, on device. This means targeting. Success is driven by companies shopping lives, creating a more personal delivering compelling value through rap- that embrace enhancements in technol- connection. Many large eCommerce players idly maturing channels like social media, ogy such as delivering relevant commu- accept partial payment with points, adding app development and gamification. Over nication and savings via mobile and web- valuable flexibility to the member. Points. the longer term, the loyalty industry will enabled channels. In doing so, those with com in fact powers the ability for busi- require supporting an even more mobile- a strong technology foundation along nesses to use top tier loyalty programs as an focused membership, requiring instant with rich local, regional and national mer- incentive (vs. starting their own program), information, access and transparency both chant offers will lead in the marketplace which solves the loyalty distribution issue at home and abroad. in the years ahead. at national and international levels. Point 3 exPirAtion FRoM MileS to Money the evolution of frequent flyer programs ■■ Question: How many frequent flyer Members of Virgin America’s Elevate pro- dollars and in points. tickets. If this were high finance, we’d call it miles will you earn for your next flight? gram earn five points per $1 spent. And in As it stands today, the division between arbitrage. ■■ Answer: there are two answers, Southwest’s Rapid Rewards program, mem- mileage and revenue-based programs The downside: Award seats at the most depending on what type of program bers earn six, 10, or 12 points per $1, depend- breaks cleanly between the legacy airlines desirable price points are heavily restricted your airline operates. ing on the type of ticket purchased. and the discount carriers. The aforemen- and may be non-existent on popular routes Schemes such as JetBlue’s are known as tioned three major discount airlines operate during peak travel periods. If you’re traveling on one of the so-called leg- revenue-based programs, or fixed-value revenue programs; everyone else operates By contrast, there are no restrictions or acy carriers — traditional full-service airlines programs, because there’s a predetermined according to the old model. But that could capacity controls on award seats in revenue like American, Delta, United, and US Airways relationship between spending and earning. change, and soon. programs. Every seat on every flight may be — you’ll earn as many miles as you actu- Of course earning is only half the story. There has been speculation in recent booked with either cash or points. No more ally fly, with a bonus thrown in for first- or The other half is redemption. How are the months that both Delta and US Airways are stressing out over scarce availability. business-class passengers and for program prices of award tickets established? contemplating, and may be close to launch- On the other hand, you’ll never get out- members with elite status. In traditional mileage-based programs, ing, their own revenue-based programs. sized value from your points. With the value That’s how mileage-based programs work. awards are priced according to region. Which raises the specter of other airlines pre-set on both the earning and redemp- And because it’s the way most programs Flights within the continental U.S. cost doing the same, and a shift to revenue pro- tion sides of the programs, the return-on- have awarded miles since the advent of 25,000 miles; Europe flights cost 50,000 grams as the new industry standard. investment is pretty much set in stone. (The modern airline loyalty programs in 1981, it’s miles; and so on. The regional categories Such conversions are not to be under- exception is Southwest’s program, where what most travelers have come to expect and act as approximations for distances flown, taken lightly. some leverage can be had by earning points accept. which in turn approximate the cost of com- When Southwest replaced its old program for high-priced Business Select fares and Basing earnings on flown miles has proved parable paid tickets. with a revenue scheme in March 2011, the redeeming them for low-cost Wanna Get to be a serviceable approach. Loyalty pro- Once again, the revenue-based programs change required new systems and proce- Away fares. But that’s a strategy that will grams have always aimed to reward custom- take a very different tack, tying the price of dures throughout the entire company, from only work for business travelers whose com- ers for their contribution to a company’s prof- an award ticket directly to its market price. reservations to operations to finance. The panies foot the bill for pricey unrestricted its, and miles are a ready if rough proxy for To illustrate, here’s how an award book- cost: almost $100 million. fares.) how much travelers spend on their tickets. ing using Virgin America points might work. To even contemplate such an enormous In the end, what works best for you But there is an alternative approach, one For a round-trip flight from Los Angeles to undertaking, the airlines must think that depends on which set of tradeoffs best suits which may be poised to become the new Dallas in mid-August, the airline’s website revenue programs have a lot to recommend your purchase and travel behavior. industry standard. showed three flights, ranging in price from them. Such programs must, in other words, If you insist on squeezing outsized value If you’re flying on Southwest, JetBlue, or $470.60 to $639.60, based presumably on be in the airlines’ best interest financially. from your program and accept scarce award Virgin America, your earnings will be com- demand. Prefer to pay with points? Those availability as part of the challenge, then tra- puted according to a completely different same flights could be purchased for between two sides of the coin ditional programs are your best bet. formula. Rather than flight miles, you will be 20,885 and 28,745 frequent flyer points. Where, then, do the best interests of con- If your preference is for a reliable but mod- awarded points that correspond directly to sumers lie? When choosing between mile- est rebate and unfettered access to award the price of your ticket. the true value age and revenue programs, there’s no defini- seats, then a revenue-based scheme will suit The points, in other words, are worth around tive “best.” Each has its strengths and offset- you better. think differently 2.25 cents apiece when cashed in for award ting weaknesses. In JetBlue’s TrueBlue program, for instance, flights. But you won’t have to do the math The primary benefit of traditional mileage yourself — with Virgin America’s online programs is the ability to squeeze excep- you earn six points for every $1 spent on tick- tiM WinShiP ets booked on JetBlue’s website. So a $300 booking widget, you can simply toggle back tional value from them. Earn miles for long, PuBliSheR, FRequentFlieR.coM ticket nets you 1,800 TrueBlue points. and forth between the price of any ticket in cheap flights. Then redeem them for pricey [email protected] PHOTO: ISTOCKPHOTO.COM 28, SEPTEMBER 2012 • USa Today AN iNdepeNdeNt SUppLeMeNt by MediApLANet tO USA tOdAy 7 InsIght

ing industry: Consumer trust with neW heiGhts wHEn It organizations appears to be fading, and they are seeing a declining navigating your frequent flyer awards value in sharing personal informa- COMES tO tion with marketers. As everyone knows, it’s not within the U.S. (including popular For instance, among the findings: always easy to spend miles for flights to Florida), Monday, Tues- pRIVaCY, ■■ 88 percent of respondents flights when you’re ready to day and Wednesday; to Hawaii feel companies use data for spend those miles. We often hear or Europe, Tuesday, Wednesday the company’s own benefit, from frequent flyer program and Thursday; to Asia, Tuesday, COnSUMERS unchanged from one year ago; members who search for award Wednesday and Thursday; and to ■ 78 percent do not feel they receive flights on the days they wish the Caribbean, Mexico or South REVEaL anything of value in return for their to travel and find no available America, Tuesday and Wednesday. personal information, compared seats. But as the saying goes, “no” And there are some worst days: with 74 percent a year ago; doesn’t always mean “no” and within the U.S., Friday and Sun- SURpRISIng ■■ 63 percent said they would be there is a distinct advantage to day; to Hawaii, Friday, Saturday, willing to give more information if understanding that. Sunday and Monday; to Asia Fri- FIndIngS they received relevant products and “No” doesn’t always mean day, Saturday and Sunday; to the Bryan Pearson, author of “the services — down from 67 percent in loyalty leap: turning customer “no” is certainly true when look- Caribbean, Saturday, Sunday and when it comes to privacy, 2011; information into customer intimacy” ing for a free ticket. Our research Monday; to Europe, Mexico or some personal information ■■ Only 45 percent expect tailored has shown that award availabil- South America, Friday, Saturday is still about as protected as information based on what they shift the course of this trend, and to ity is much better when calling and Sunday. your social security number. buy, down from 49 percent. enhance the perceptions of market- the reservation center vs. using As for the time of the day, mid- Worse, consumers are increas- ing among consumers. They can do the airline online booking tool. day flights are the best because This, at least, is what ingly unsure of the it through the responsible use of Sometimes this is because the that is when flights are less 2,000 U.S. and Canadian how their informa- data. award search tool on the website crowded — you aren’t competing respondents said in the tion is being used. But to accomplish this, market- does not allow members to book for the seats with a good portion 2012 LoyaltyOne Pri- Almost 60 percent of ers need to: flights on partner airlines and of business travelers who prefer vacy Study conducted respondents said they sometimes it’s simply because early morning or late afternoon in June —15 percent were concerned about ■ ne v e r d i s r e s p e c t the online tool isn’t as good as or evening flights. And if you can said they’d be willing to their behavior being the data: what the reservations agent can plan and book your award travel share their exact loca- tracked, for example, Ensure that every communication do to check for flights. The only in advance, and be flexible within tion via smartphone when using a cus- is relevant and speaks to the drawback I see to calling the res- a few days of your departure and and just 11 percent tomer loyalty card. consumer’s needs and interests; ervations center, is that you more return, that will help you find of respondents say- That figure is up from ■ Find ways to create value: than likely be charged a $25 book- an award seat. And again, “no” ing they’d share their 52 percent in 2011, a 15 Continually seek new ways to ing fee for calling to book instead doesn’t always mean “no” — it social security number. percent increase. recognize and reward the customer of booking online. If, when you doesn’t hurt to check back after Consumers are much These are compel- with benefits that are meaningful; call, you receive an agent who your first attempt to see if seats more willing to share other personal ling results. Too often, the consumer ■ listen: Whenever possible, look does not seem willing to work have become available. information — 66 percent of respon- is not experiencing a mutual advan- deeper into the meaning behind with you, thank them for their If you are interested in flights to dents said they’d reveal their sexual tage from sharing his or her data transactions to understand what time, hang up and call again until Europe from the U.S., my advice orientation, 59 percent, would share with marketers and businesses. But motivates consumers. you get a more helpful agent. And has always been to consider mak- their religion, and 52 percent would that could change. And, by the way, even in this do your homework before you call ing a connection on the East Coast, share their political affiliation. election year I won’t ask you about — research the flights you ware as many do, but avoid the evening These are eye-catching statis- rebuilding trust your political preference. If more interested in before picking up flights that are so popular—try tics, however behind the findings As noted in my book, The Loyalty marketers would be as respectful of the phone. arranging some of the early morn- are results that point to a more Leap, businesses already possess the their customers’ private informa- ing flights from the U.S. as they problematic trend in the market- technology and the wherewithal to tion, then everyone would win. timing is everything have yet to catch on for popular- As for the best days and times, ity and we have often seen empty Almost 60 percent of respondents said they were that too can make a difference award seats. Good luck with your when getting an award seat. After award quest! concerned about their behavior being tracked, RanDy PeteRSen BRyan PeaRSon 20+ years of researching award PReSiDent anD ceo, for example, when using a customer loyalty card. PReSiDent, loyaltyone redemption, I happen to have FRequent FlyeR SeRviceS [email protected] some tips. Here are the best days: [email protected]

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eAse oF PHOTO: ISTOCKPHOTO.COM tiPs 4 eArning AT YOUR FINGERTIPS: the four best digital innovations for managing loyalty activities

melissa studzinski Vice president of Customer relationship Management, CVS/pharmacy There are scores of apps and web list of my top four and how each the company create more with Pushpins. For businesses, sites, and new ones appearing delivers a unique technology one- personalized offers. the plus is the patented coupon- tips for scoring sweet daily, to help us manage and keep two punch for both consumers delivery algorithm. The overall savings with loyalty track of our loyalty activities and companies: ■ Starbucks: I know what you’re experience is enjoyable for programs with a flick of the thumb. The thinking: Haven’t we talked customers, which translates to best apps offer a life-changing ■ google Wallet: Launched last enough about the Starbucks app? repeat visits. loyalty programs are every- combination of customization year to mixed reviews, Google’s Maybe, but I still love it because where—from grocery stores and speed to help us cut through mobile tap-to-pay technology it demonstrates what a stand- ■ citi thankyou Point-Sharing and department stores to the marketing clutter and power has continued to evolve (adding alone loyalty program can do. app: Everything is better with local coffee shops. But the through our busy days. new credit card options and Starbucks helped shape mobile friends, right? This app enables top programs have evolved Customizing means that many mobile handsets). Google Wallet loyalty by combining members’ Citi ThankYou members to share over the past decade by of today’s loyalty apps can be now securely stores credit cards, reward management with their points with Facebook using the newest technol- straight forward, cutting-edge friends, so they can actually team ogy to encompass more Use of mobile payments payment application. For users, up or build a community around than just scanning a card to (% of Americans who have used their moblie phone to make a purchase) this means handheld access to a rewards. Users can combine points receive a few generic perks. 2012 vs. 2011 digital, pre-paid account that can for merchandise or experiences, the smartest brands are Yes be reloaded with any major credit and Citi says that members have using rewards programs to no card, as well as an active record of pooled points for goals including form meaningful connec- 19.3% rewards gained. Such ease builds charity fund-raiser walks, student tions with their customers 33.9% loyalty and an avid user base. loan rebates, kitchen remodels, and offer them value each The payoff for Starbucks is and a plane ticket for a baby in time they shop. here are 80.7% 66.1% that the app generated $110 need of surgery. some tips to bear in mind million in 2011 sales. In July This community model when choosing a rewards Starbucks rolled the app out to the translates to valuable word-of- program that can make a big U.K. and Canada, while adding mouth marketing for participating impact on your wallet. 2011 2012 new features, including PayPal companies, not to mention support. exposure to countless potential

1. Be selective: While signing soUrce: idc FinAnciAl insights new customers. How users pool up for a new program is usually ■ Pushpins: The geograph- their rewards provides rare insight free, it can become a burden to personalized to provide relevant loyalty program cards and digital ically-smart Pushpins app can into consumer behavior. manage too many of them, so ask offers, product information and offers on the mobile phone, and it store a consumer’s shopping list, I know there are other worthy yourself if the rewards are worth services. Speed means that they works both in-store and online. digital coupons and the nutrition innovations out there (looking it. Look for programs that allow move quickly enough to save A key benefit: It simplifies facts of thousands of items. Its forward to Apple’s Passbook you to earn rewards every time us valuable time (and they are checkout by consolidating ability to find coupons for local coming this fall), but these four you shop, not just when you pur- quickly and regularly updated). payment, loyalty and coupons merchants, sorted by aisle, enables are a great place to start to keep chase select items that are on sale. There are so many new apps into a single tap when used with users to simply scan foods and your thumbs, and your wallet, and web sites popping up that it Google-approved merchants. tap to redeem instant savings, happy. 2. opt for programs that is a challenge to choose which Businesses love it because which are automatically applied make it easy to redeem your technologies deliver the best this app drives higher sales. to their loyalty cards at checkout. rewards: Some programs rely value. More importantly, by compiling Such service enhancement tells SiMon keogh on complicated systems that Looking at a few of the latest consumer credit card and customers, “We understand your DiRectoR, Digital MaRketing, require math and guesswork innovations (and some old loyalty data, Google wallet needs.” MoBile anD Social MeDia, to figure out what rewards you favorites), there are a few that delivers a clear understanding This is why more than 2,000 loyaltyone have. The best programs pay you truly do stand apart. Below is a of the consumer, which helps grocery stores have agreed to sync [email protected] back with rewards you can easily spend on your next shopping trip so you actually benefit each time you shop.

3. check your inbox: Nearly MORE Bang FOR YOUR BUCK: all retailers these days ask you for an email address to share news and extra incentives. If you’re time for a coalition option? looking to save more money and stay in-the-know about sales and Are you earning enough for coalition — a type of loyalty pro- promotions, register an email points to make your loyalty gram popular in most other parts of address so you’ll get these exclu- programs pay off? the world. A loyalty program that really delivers sive offers. Shoppers sometimes struggle to here’s how it works that value in a unique way has obvious 4. make it easy on yourself: manage their memberships in many ■ A coalition is a loyalty program Saving money through loyalty different loyalty programs, and can in which multiple companies appeal — perhaps the U.S. is ready for programs shouldn’t take a lot of feel that they aren’t getting the best reward customers for shopping time or be difficult to navigate. The value from each one. Yet, consum- with merchants within the what the rest of the world already has. best programs give a choice in how ers keep signing up, because in this coalition. Members only have you want to engage. If you’re digi- economy, who can turn down a way to carry one loyalty card to earn This approach to loyalty marketing points-earning opportunities. tally-minded, pick a program that to stretch a dollar? points for each transaction, was created to deliver high value But when it comes to everyday lets you manage rewards online And so you join yet another pro- across all of the retailers, travel and more options to customers. spending, the benefits of a coalition or from your mobile device. Some gram, but sometimes the value companies, groceries and credit Coalitions have long been popular in program are easy to understand. It programs allow you to store your earned doesn’t seem to be worth card companies participating in other world markets, such as Canada, eliminates the confusion of shuf- card on your phone, eliminating the trouble. For example, are you the coalition. the U.K., Germany and Australia, but fling through numerous cards to fig- the card clutter from your key ring earning enough points to redeem ■ The coalition offers a common they have not yet taken hold in the ure out which one provides the most or wallet. for what you want by the end of the currency (points, miles or dollars) to U.S. value. It also provides the fastest year? Or do you find yourself looking reward customers who do business Coalition doesn’t mean erasing time to reward and widens the range 5. stay current on the latest at a dozen different loyalty program with the participating companies. existing loyalty programs, many of of redemption options. promotions: Many loyalty pro- statements with a few points here Members can redeem those points which offer their own unique and With the economy still moving grams host special promotions to and a few points there, but none add- for a wide variety of experiences, irreplaceable value. For example, slowly, we all want as much value as double or triple your earnings, or ing up to much value? merchandise and in-lane and rollback popular gas/grocery programs let cus- possible in exchange for the money reward you with gift cards during At COLLOQUY, we know that redemptions. tomers earn fuel discounts for their we spend. A loyalty program that certain times of the year. Keep an consumers want to better manage ■■ Because most of the coalition everyday food shopping. Some credit really delivers that value in a unique eye out for these and take advan- their loyalty program memberships companies are in the category of card programs offer members access way has obvious appeal — perhaps tage, which means more money and find a way to earn meaning- “everyday spend” (which includes to exclusive events like sold-out con- the U.S. is ready for what the rest of in your wallet. ful rewards faster. It may be time fuel, grocery and credit card certs, NASCAR pit passes or celebrity- the world already has. for “something new” in which the companies), coalition members attended film screenings. Other pro- BRuce keRR value is significant enough to make usually earn points more quickly grams, most notably from airlines, contRiButing eDitoR, colloquy PReSiDent, loyaltyone u.S. MeliSSa StuDzinSki joining yet another program worth- than they do in individual loyalty have one or more merchant partners [email protected] [email protected] while. U.S. consumers may be ready programs. to offer a wider range of benefits and

28, SEPTEMBER 2012 • USa Today 10 AN iNdepeNdeNt SUppLeMeNt by MediApLANet tO USA tOdAy news the rules of emPloYee engagement it sounds so simple: lem, Byam says, because they “often ees for their efforts produces busi- them. But Orndorff says a successful engaged employees QUestion and ansWer work counter to the business objec- ness results in retention, productiv- program doesn’t necessarily have to are more productive. tives and can have a negative impact ity and engagement. Ultimately, it be elaborate. on the morale of their coworkers.” creates a more successful organiza- “While some companies have Why wouldn’t they be? Engaged tion and produces a work environ- thousands of dollars to invest in employees are enthusiastic, chal- A little reward goes a long way ment where people feel enriched by a formal rewards program, small lenged, dedicated, and proud to con- But anyone who’s ever worked in an their contributions.” companies can achieve the same tribute to something they believe office knows that becoming engaged Lisa Orndorff, SHRM manager of ends through small things like giv- is important. As an added bonus, it is not necessarily a simple feat, and employee relations and training, ing a movie ticket to employees turns out that engagement equates depends largely on factors outside agrees, saying all companies should when they meet a challenging to success. their control. Factors like: auton- have some kind of employee rewards goal.” “Employees who are engaged omy, task variety, communication program in place because people The trick, she says, is knowing at work deliver a higher degree of with management, and advance- need to know the work they’re doing what makes an employee tick, quality and service to their custom- ment opportunities. is meaningful to the company, and because they will appreciate know- ers,” says Mike Byam, CEO of award These are not factors that are that they’re making a difference. ing the company has made an effort consulting services firm Terry- changed or implemented easily. “Companies today can’t afford not to understand a bit about them. berry. “The results consistently link But recognition, another big factor to have a recognition system. They “Not everyone wants to be on top engaged employees to a more profit- in employee engagement, is fairly may think they don’t have the time of the float going down Main Street. able organization.” simple to implement and is known or money to recognize an employee, One employee might prefer a public to have big payoffs. but they really don’t have time to acknowledgement while another Bill hornbuckle the face of engagement The Society of Human Resource recruit and train the person who may value a handwritten thank you Chief Marketing officer, MgM resorts international Engaged employees are different on Management’s (SHRM) 2011 replaces the one who leaves.” note.” many levels from their disengaged Employee Job Satisfaction and Whatever the method, the ulti- counterparts, Byam says. Whereas Engagement report states, “manage- Bigger isn’t necessarily better mate goal of a rewards program is in order to maximize the engaged employee is emotion- ment’s recognition of employees’ There are professionals who can help to foster engagement by making their benefits, what ally connected to an organization’s performance through praise, awards companies create rich recognition employees feel valued. Orndorff should consumers look mission and willing to give their and incentives is a cost-effective way programs, and there are a nearly infi- says, “People need to understand for when choosing a full effort to the cause, disengaged of increasing employee morale, pro- nite number of ways people can be that they are part of the bigger pic- rewards program? employees don’t feel that emotional ductivity and competitiveness.” rewarded. From innovation awards ture, and that the company couldn’t Consumers should look for connection and are not likely to per- Byam says there are numerous to retirement gifts, mentor recog- do what it does best without them.” rewards programs that ful- form to the best of their ability. reasons to implement a rewards pro- nition to quality level attainment, fill individual, personal prefer- Employees who are “actively dis- gram, one of which is that it’s a solid companies can pat employees on the Jill SMitS ences and evolve with members’ engaged” pose an even greater prob- investment. “Recognizing employ- back in ways that are meaningful to [email protected] changing expectations and desires. Key partnerships that strategically align with rewards programs add value by allowing are your loyalty programs working for you? members to gain access, receive offers and earn additional bene- How many loyalty cards are in your use? Of course, everyone likes program is active on those platforms, merchant. fits with complementary brands wallet, or on your keychain? If it’s “cash back” or discounts. But and if it will reward you for social ■ Points expiration: Will located throughout the country 18, then you’re like the average what about a retail program that media activity. your points expire before you reach and world. American household. But the aver- offers the option of storing receipts ■ ease of earning: How your goal? Programs sometimes Customers also want that age American household is actively electronically in your customer many points, miles or other loyalty change their policies regarding “wow” factor and bragging rights. participating in only eight of those records? If you make exchanges program currency do you need to expiration, so pay attention to the If a loyalty program can provide programs, according to the 2011 frequently and don’t want the earn to start redeeming for what communications you receive from that, such as access to exclusive, COLLOQUY Loyalty Census. That hassle of storing paper, this perk you want? Weigh that against the program. Can you transfer unique experiences you can’t get means that fewer than half of those might save you time and hassle. how often you transact with that points to family members or friends? anywhere else, then you’ve got a cards in your wallet are actually use- Sometimes a single benefit like particular merchant. Will you earn Check the membership details to winner. ful. Before you sign up for your 19th this can make a program highly quickly enough to make this card make sure you understand how the loyalty program, take a moment to valuable, as with free shipping meaningful? Are there ways you can program’s valuable currency can be how essential are consider what we loyalty marketers for Amazon Prime or Zappos.com earn more points, for instance, by used, and that the options fit your loyalty programs to call the “value proposition.” In other customers. signing up for a co-branded credit lifestyle and expectations. building customer words, is this new program worth it? ■ Accessibility: How many card? In fact, these guidelines don’t retention in today’s Loyalty programs offer a range of ways are there for you to track ■ tiers: “Gold” and “silver” levels apply only to new programs — market? benefits, and while the rewards may your point balances and redeem are popular with airline and hotel review your existing memberships Today’s informed, discern- sound tempting in theory, it pays to for rewards? For example, if you programs in particular. Reaching with these guidelines in mind. ing consumers want to be determine if you will actually use use your cellphone more than your higher levels in a tiered program Don’t clutter your wallet with loy- recognized and appreciated for them. Ask questions, read the fine laptop, you’ll want to know if the offers great perks, but will you ever alty programs that aren’t working their loyalty. Dynamic rewards print, and decide whether or not the loyalty program has a fully featured get there? Read the fine print and hard for you. programs that go a step further by program will pay off for you in the app. If you prefer to store your do the math to see what it takes to personalizing offers and demon- following key categories: shopping lists on your cellphone, advance, and whether or not you DenniS aRMBRuSteR strating a commitment to what’s ■ reward choice: This may you may want digital rewards in can attain your goal if you modify vice PReSiDent, important to each individual seem obvious, but are the rewards addition to paper coupons. If you use your shopping habits to consolidate loyaltyone conSulting member are able to build deeper actually what you want, or will Facebook and Twitter, find out if the your spending with this particular [email protected] and more long-term relation- ships with the consumer. With experienced-based products such as destination resorts, loyalty programs are critical in tracking FOUR KEY COnCEptS tO CUStOMER EngagEMEnt and defining people preference getting consumers’ attention and giving customers the pre- their touch points, making it dif- audience. Branded mechanisms, John ferred access we all enjoy. is difficult enough, but ficult for consumers to even absorb like cheerleaders and a jumbotron, lavin keeping their attention is president, the message. You don’t form a long- will help to keep the attention of the destination how have even harder. term relationship with one conver- audience focused on the field. These rewards, inc. advancements in sation, nor should you expect to do interactive tools must be moni- social media and Consumers are actively avoiding so with one customer interaction. tored and adjusted to ensure that technology led to brand messaging by way of con- You must begin by identifying the your message is getting through the increased loyalty and stantly evolving technology that desired end result of each specific distractions that are sure to occur. brand advocacy among allows them to see and hear infor- touch point. A deep dive into the a customer base? mation how and when they want dynamics of each interaction is develop a strategy that incor- example, the currency increases the Consumers have become to engage with it. Therefore, every required in order to develop realistic porates multiple engagement value of each interaction as it works brand ambassadors and customer touch point you have goals for each. Then work backward tools. In today’s society, consum- to reinforce your brand position- more invested than they once must be cherished as a key strate- to develop the proper position- ers are bombarded with compet- ing. This combination of customer were. Through strategic market- gic asset. The following describes ing and messaging to reach your ing media messages every day. If touch points, engagement tools ing relationships, we’ve enabled an approach that incorporates four desired goals. you’re sending the same message and integrative methods is part of M life to identify and reward key concepts within a customer over and over again, you’re at risk a communication strategy that is engaged members, whether they engagement strategy. integrate a consistent brand of disengagement or, worse yet, a critical to building long term rela- are at one of our resorts or inter- position and messaging. If you loss of relevancy with your cus- tionships with customers. acting with us on their mobile develop a complete inventory look at each of your customer touch tomers. Engagement tools like Making sure your entire orga- phones and social networks. This of every possible customer points as players on a football team sweepstakes, auctions, games and nization understands the value of ability helps to enhance mem- touch point. From initial push carrying your brand message across special promotions can provide its customer touch points and of bers’ travel experiences, develop advertising to fulfillment of your the goal line, would they all be work- excitement and unique brand using a strategic, holistic approach relevant and timely interactions, product or service, each customer ing from the same playbook to pro- interactions within your customer for each new and existing touch recognize loyalty when members interaction with your brand should duce a cohesive team effort to win touch points. But remember, these point will help ensure long term share with their community of be itemized and then prioritized the game? Or would it look more like engagement initiatives should customer engagement in this friends and ultimately reward based on engagement opportuni- the pregame warm-up — jumbled work together. Integrating them ever-changing communication them for it. Technology and social ties. This process can be tedious, but, and chaotic, with each player work- reinforces your brand messaging marketplace. Today’s consumers media are ever-changing and cre- if not done properly, some touch ing on individual drills? and drives overall engagement up choose what messages they see and ate endless possibilities. Rewards points can be overlooked, resulting It is important to note that even if more than each of the initiatives when and how they see them. They programs that effectively interact in lost communication opportuni- you have all the players on the same would individually. An example of can choose to shut out your brand with members will see dramatic ties. No matter how insignificant a page, success is not guaranteed. The one such integrative method is a messages if they are not impactful growth, not only numerically but touch point may seem, it is a valu- players may be putting forth a great virtual rewards currency that can enough, or they can absorb them in loyalty as well. able asset that must be understood, team effort on the field, but what be applied across each engagement if they are relevant to their lives. monitored and managed over time. happens if the audience gets dis- tool. The use of the currency ties all Capitalizing on every opportunity tracted by a couple of fans who are of the individual elements together, to engage with your customers in a Understand the desired end fighting? When a distraction like making your program cohesive and consistent manner will ensure that result from each touch point. this occurs, some of the benefits of your brand expansive. This invites they choose to pursue a relationship Consumers are making split sec- the team’s effort may be lost. You your customers to take a holistic with your brand that lasts and pros- Bill hoRnBuckle ond decisions to determine if they need engagement tools to minimize view of your brand, lending itself to pers. [email protected] will read beyond a headline, and distractions that impede brand complete immersion rather than a John lavin yet companies continue to overload messaging from reaching your series of casual interactions. In this [email protected] Ask how 25,000+ “Clients have used our Employee Recognition Solutions to Improve Retention & Increase Productivity. ”

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