41 Loyalty Marketing Ideas 2015 Edition Loyalty

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41 Loyalty marketing ideas 2015 Edition Loyalty. Engaged. Give Members a Boost ��24 Contents 21. Offer Occasional Bonus Points ��24 22. Surprise and Delight Your Customers ��25 Introduction �� 3 23. Encourage Sales With Free Shipping ��26 Put Consumer Data to Work �� 4 24. Feature Expedited Check-In/Check-Out Services ��27 1. Remember Customers’ Birthdays With Rewards �� 4 25. Team Up and Offer Multi-Brand Loyalty Programs ��28 2. Incentivize Profile Updates �� 5 Leverage Content Marketing ��29 3. Prompt Survey/Questionnaire Responses With Points �� 6 26. Encourage Customers to Read a Blog/Article ��29 4. Segment Customers With Tiered Programs �� 7 27. Incentivize Customers to Write Product Reviews ��30 Go Social �� 8 28. Motivate Members to Read Emails/Register for Newsletters ��31 5. Motivate Social Sharing �� 8 29. Drive Engagement With Video Content ��32 6. Entice Action With Badge Rewards �� 9 30. Incentivize Consumers to Download an App ��33 7. Prompt Customers to Use a Hashtag With an Incentive �� 10 Get Into Gaming ��34 8. Recognize Members for Social Check-Ins �� 11 31. Let Consumers Bid on Unique Rewards ��34 9. Motivate Members to Refer-A-Friend �� 12 32. Encourage Point Redemption With a Sweepstakes ��35 10. Reward for Retweeting �� 13 33. Integrate Digital Motivation Into Your Loyalty Strategy ��36 11. Connect Social Accounts �� 14 Don’t Forget Traditional Loyalty Strategies ��37 Include Unique and Experiential Rewards �� 15 34. Drive Purchases With Product Codes ��37 12. Offer One-Of-A-Kind Rewards �� 15 35. Motivate Customers to Make a Purchase for Points ��38 13. Treat Your Customers to Brand Experiences �� 16 36. Offer a Choice of Loyalty Rewards With a Catalog ��39 14. Offer Members Advance Notice of Sales to BuildLoyalty �� 17 37. Drive Interest By Offering Free Samples ��40 15. Allow Members to Be Philanthropic and Donate Rewards �� 18 38. Give Customers a Cash Back Incentive ��41 16. Give Exclusive Sales and Offers to Members �� 19 39. Capture Interest By Offering Free Products ��42 17. Give Customers Access to a Personal Stylist or Shopper �� 20 40. Incentivize Sales By Distributing Member-Only Coupons ��43 18. Engage Customers With VIP Events �� 21 41. Expand Your Loyalty Offering With Partner Rewards ��44 19. Reward Customers With Gasoline Discounts �� 22 Conclusion ��45 20. Give Members a Sneak Peek With Product Previews �� 23 2 Introduction

Loyalty has changed.

Consumers demand more than just coupons and discounts. For 2015, it’s all about the customer. Brands must offer experiences and rewards that are personal, relevant, and highly targeted to move the needle and drive incremental sales from their best and most loyal fans. Today, companies are expanding their spend and get mentality to not only engage customers, but to reward them for taking action with their brands.

This e-book offers 41 loyalty marketing ideas to help you keep customers engaged with your brand beyond transactions and develop more rewarding relationships.

3 3 Put Consumer

Kellogg’s celebrates Data to Work members’ birthdays and rewards their loyalty with gifts of bonus Consumers today expect you to know them and cater to their needs. It’s all about making use of your customer data effectively. To fulfill points and credit with this expectation, it’s important to mine the data you collect—across a partner company. channels—and personalize your content to build more targeted marketing campaigns and programs. By capturing data over time and using it wisely, you can strengthen your connections to customers and drive long-term loyalty.

No. 1 Remember customers’ birthdays with rewards

Obtaining a customer’s birth date can help you move the needle on a number of loyalty marketing initiatives. Not only will it give you an opportunity to acknowledge the happy occasion with a free gift, such as bonus points, a sizeable discount, or free samples, but birth date data can help you refine your marketing messages to better suit your audience.

Kellogg’s, for example, offers bonus points, as well as a $20 credit with Shutterfly as birthday gifts for loyalty program members. The strategy creates positive feelings toward the brand and serves as a good incentive for customers to make a purchase. Other brands that employ this strategy: Lancôme, Chico’s, Sephora, Xbox, The Body Shop

4 4 No. 2 incentivize profile updates

It’s essential to collect as much information on consumers as possible to use for remarketing efforts. To encourage customers to share more about themselves, consider offering an incentive for loyalty program members to update their profiles. You can use the additional insight to personalize and strengthen your current marketing messages and increase your relevance.

The San Francisco 49ers gives loyalty program members extra points for updating their profile details, including phone number, mailing address, and gender. This helps the brand capture additional data points about its fans to refine its marketing efforts and develop segmentation strategies. Other brands that use this strategy: Zumiez, Purina, USA Track & Field, Duck Tape, VIZIO

The San Francisco 49ers gives loyalty points to consumers who share additional details in their profiles.

5 5 No. 3 prompt survey/ questionnaire responses with points

Brands employ a variety of strategies to learn more about customers to enrich their lives. By incentivizing customers to take surveys, you can motivate them to offer additional insight and help you improve your marketing outreach.

Ultimate Fighting Championship (UFC) gathers information about its fans with occasional surveys. Members of the UFC Rewards loyalty program respond to various questions, including naming their favorite heavyweight lifter and their cable services provider to earn additional loyalty points. Other brands that use this strategy: RecycleBank, Southwest Airlines, Fresh Step, AARP, Xbox Live Rewards

Ultimate Fighting Championship (UFC) rewards fans with points for responding to various survey questions to gain additional insight.

6 6 No. 4 SEGMENT customers WITH TIERED PROGRAMS

Tiered loyalty programs are a good strategy if you want to segment your customers around engagement or spending habits. Rather than having a one-size- fits-all program, consider implementing a structure that rewards customers differently based on data about their activity level and purchase behavior.

White House | Black Market (WHBM), a women’s fashion retailer, offers a tiered loyalty program called WHBM Rewards, which segments members based on spending habits. The initial tier allows customers to earn 10 percent off their next purchase and exclusive offers online and by mail for registering. After spending at least $500 in a year, members reach the Silver tier, which offers the welcome benefits and an additional 5 percent off purchases, free shipping, and a birthday gift. The Gold and Platinum tiers offer greater rewards for spending at least $1,000 or $2,000 or more, respectively. Additional perks include greater value birthday offers and rewards cards. Other brands that use a tiering strategy: Nordstrom, Sephora, Kimpton Hotels, Best Buy, Virgin Airlines White House | Black Market (WHBM) offers a tiered loyalty program that rewards customers based on spending habits with the brand.

7 7 GO SOCIAL In this multichannel environment, incorporating social media into your loyalty marketing strategies is a must. With the power and reach that the channel offers, you can amplify your marketing messages, as well as boost acquisition rates. Recognizing members with points or other incentives for sharing your products or brand news via social media can help you reach the masses and potentially acquire new customers.

No. 5 MOTIVATE SOCIAL SHARING

Prima Donna When incorporating social media into your loyalty motivates customers strategy, it’s crucial to capitalize on the power of Word- to socialize its brand of-Mouth. And offering incentives is a good strategy to and products with loyalty points. achieve that goal. The use of incentives to reward for social sharing not only helps you achieve a short-term boost to your network traffic, it allows you to develop a loyal following of individuals who want to keep interacting with your brand.

Take Prima Donna, an accessories brand, for example. The fashion retailer sets itself apart from the competition by awarding loyalty points to customers who share products on Facebook, tweet about the brand on Twitter, and pin products on Pinterest. Other brands that use this strategy: Marriott, Tilly’s, Perdue, Gilt Groupe, 20th Century FOX

8 8 No. 6 ENTICE ACTION WITH BADGE REWARDS

In this digital age, loyalty is all about making an emotional connection to consumers. Recognition (or public acknowledgement) is a powerful tool to form a deeper link with your most loyal members. What’s more, it’s a lower cost way for you to reward action. It’s important to recognize these consumers on your social channels and also encourage members to share their badges on their own social accounts.

Yamaha is one example of a company that provides “social recognition” by highlighting members’ loyalty and value on a social network. By prompting customers to take specific actions (e.g., visiting the brand online or finding a local dealer), Yamaha unlocks badges that tie to members’ accounts. Members can then share their badges on Facebook as bragging rights to their friends. Other brands that use this strategy: Total Rewards, JetBlue, SpaWeek, Walgreens, Showtime

Yamaha offers badges to amplify its social reach and recognize loyalty program members for their actions.

9 9 No. 7 prompt CUSTOMERS TO USE A HASHTAG with AN INCENTIVE

Keeping customers in the know is important for any brand. With the dominance of social media channels like Twitter, you can keep members up to date about your brand’s news and motivate customers to stay connected at the same time. After all, tweets with hashtags receive two times more engagement than 1 those without hashtags.6

Zumiez, a specialty retailer of action sports related apparel, footwear, equipment, and accessories for fans of skateboarding, snowboarding, surfing, motocross, and BMX, rewards members of The Zumiez Stash points for tweeting to a hashtag. For example, members who explain what they love about the loyalty program to #MyZumiezStash receive 1,000 loyalty points, enough points for two entries to brand- sponsored sweepstakes. Other brands that use this strategy: Marriott, Scentiments, Duck Tape, Pepsi, Ultimate Fighting Championship (UFC)

Zumiez offers loyalty program members points for tweeting about their love for the brand.

1 Infographic: Twitter Tweet Cheat Sheet To Increase Engagement, 1010 March 7, 2013, Linchpinseo No. 8 RECOGNIZE MEMBERS FOR SOCIAL CHECK-INS

Consumers love to be recognized, especially on social media. Offering a check-in opportunity on Facebook or Swarm, Foursquare’s new app, will reward your loyal customers, potentially bring in new business, and will likely influence shopping behavior.

Under the Starwood Preferred Guest (SPG) program, Starwood Hotels & Resorts occasionally runs special promotions that allow guests to earn bonus loyalty points for checking in to participating hotels by using their Swarm or Facebook accounts. Other brands that use this strategy: JetBlue, DirectTV, Best Buy, Hilton Hotels & Resorts, Pepsi

Members of the Starwood Preferred Guest Program can earn loyalty points for checking in to their Swarm and Facebook accounts while at Starwood properties during special promotional periods.

1111 No. 9 MOTIVATE MEMBERS TO REFER A FRIEND

When participating in a loyalty program, social media and Word-of-Mouth marketing are powerful tools for customer acquisition. And referrals take it one step further. Brand advocates can help you connect with new customers. In fact, 92 percent of people trust recommendations from friends and family more than all other forms of marketing.22

For example, StriVectin, a cosmetics brand, offers members loyalty points when they refer a friend and that friend joins the Inner Circle loyalty program. Additionally, the company offers four times the amount of loyalty points to members when their friends make a purchase from the brand. Other brands that use this strategy: Omaha Steaks, Zyrtec, Marriott, Royal Caribbean, Xbox Live

StriVectin gives loyalty program participants points for friend referrals to expand its network.

1212 2 Global Trust in Advertising and Brand Messages, Nielsen, April 10, 2012 No. 10 REWARD FOR RETWEETING

Like any social media platform, Twitter offers you an opportunity to interact with customers. Fans not only engage with the content you post on the channel, but they share it with their social universe to spread the word about your brand and services to other prospects.

FoodSaver, a manufacturer of vacuum packaging products, gives loyalty program members points for retweeting a FoodSaver post on Twitter. This incentive encourages participants to share content with their larger social network to amplify the company’s messaging. Other brands that use this strategy: Hilton Hotels & Resorts, BJ’s Restaurants, USA Track & Field (USATF), Marriott, VIZIO

FoodSaver motivates customers to share content on Twitter with a points incentive.

1313 No. 11 CONNECT SOCIAL ACCOUNTS

Social media gives brands an opportunity to engage customers in creative ways. Brands that reward customers for connecting their social accounts can interact with members in another channel and collect pieces of social data to build a more comprehensive profile of their members.

TOMS Shoes awards points to members who connect their Facebook, Twitter, Instagram, and Swarm/ Foursquare accounts to TOMS’ My Passport Rewards loyalty program. By encouraging the use of social media, TOMS increases engagement, analyzes what content is most meaningful to customers, and reaches new buyers. Other brands that use this strategy: Purina, Ultimate Fighting Championship (UFC), Pepsi, Lancôme

TOMS Shoes rewards customers for connecting their social accounts, such as Twitter and Facebook, to its My Passport Rewards program.

1414 include UNIQUE EXPERIENTIAL REWARDS

With any loyalty offering, discounts and coupons remain valuable commodities. Yet today, consumers have a growing expectations to be valued by the brands they love beyond discounts. In this competitive environment, companies that offer rewards that appeal to customers’ emotions win their business. To stand out, it’s important to feature unique rewards that offer choice, prestige, and fun to retain customers and show them how much you appreciate their loyalty. No. 12 OFFER ONE-OF- A-KIND REWARDS

Exclusivity reigns in customer loyalty programs. To truly stand apart from competitors, consider offering unique or limited edition rewards to build greater affinity for your brand. The scarcity of money-can’t-buy rewards will help your brand increase its competitive edge and heighten its appeal to participants.

For example, Sport Clips offers top loyalty program members the opportunity to redeem points for limited edition merchandise, such as a copy of the Sport Clips offers limited edition rewards book, “Game Plan for Life,” autographed by former for high point-earning Redskins coach Joe Gibbs. By limiting the number of loyalty members rewards available to customers, Sport Clips promotes a sense importance and urgency to prompt quicker redemption. Other brands that use this strategy: 1515 Sephora, Starbucks, Theory11, Zumiez, blu e-Cigs No. 13 TREAT YOUR CUSTOMERS TO BRAND EXPERIENCES

When it comes to recognizing loyalty, there’s probably nothing more rewarding than a one-of-a-kind experience with a brand. With experiential rewards, customers connect great memories to your brand, which can build a lasting bond. Consider shifting how you reward customers. Rather than just handing out discounts, add in some interesting experiential rewards that will keep members buzzing.

Audience Rewards, a program designed to thank patrons of the performing arts for their loyalty, allows customers to earn and redeem ShowPoints for unique theater experiences, events, and merchandise. As part of the reward program, members can redeem their loyalty points for once-in-a-lifetime experiences, including meet-and-greets with stars, backstage tours, and one-on-one singing lessons. Other brands that offer this strategy include:T he North Face, Theory11, SPG Moments, Ultimate Fighting Championship

Audience Rewards offers money-can’t buy experiential rewards as part of its rewards program for theater fans.

1616 No. 14 OFFER MEMBERS ADVANCE NOTICE OF SALES TO BUILD LOYALTY

Participating in a loyalty program often comes with the expectation that members will receive preferential treatment, but it doesn’t always have to be in the form of discounts. Consider exploring the option of letting members be “in the know” and giving them advance notice of upcoming sales or promotions.

Toys “R” Us, for example, offers Rewards “R” Us loyalty program members pre-sale opportunities and advance notice of sales. During the 2014 holiday season, the retailer gave members access to Black Friday specials five days early. Customers had the option of shopping online with a special code, or showing their loyalty card at checkout to take advantage of the deals. This early access enticed shoppers to make a purchase and engaged them further with the brand. Other companies that use this strategy: Royal Caribbean, GameStop, Anthropologie, DSW, ECCO

Toys “R” Us gives loyalty program members advance notice of sales to drive commerce and interest.

1717 No. 15 ALLOW MEMBERS TO BE PHILANTHROPIC AND DONATE REWARDS

Not every customer wants to keep their earned points to themselves. Roughly $48 billion worth of consumer loyalty reward points and membership benefits are dispensed each year, yet about one-third of that value is unredeemed and unused.36 As a result, several brands are allowing members to donate their points to national charities or other important causes.

Kellogg’s lets members donate their Kellogg’s Family Rewards points to featured charities through KFR Giving, including The American Red Cross, The United Way, and Feeding America, among others. Each time members redeem 1,800 points, they received a code worth $1. Participants enter the code and select the charity they wish to benefit. This option lets members do a good deed, generating goodwill toward the brand. Other brands that use this strategy: Pampers, Fresh Step, Best Western, Expedia.com, American Airlines

Kellogg’s lets members put their points to good causes by making charitable donations.

3 $48 Billion Worth of Consumer Loyalty Reward Points Dispensed Each Year, Yet One-Third Are Never Cashed In, April 19, 2011, Reuters.com 1818 No. 16 Give EXCLUSIVE SALES AND OFFERS TO MEMBERS

Consumers want to feel appreciated, but that doesn’t mean you always have to offer physical goods to communicate the sentiment. Sometimes giving members something that is just for them (not the general public) is a far greater perk than a tangible gift. For example, let your loyal customers in on an exclusive sale or offer.

Godiva, for example, gives members exclusive discounts for in-store and online purchases. This perk heightens the importance of belonging to the program and demonstrates how the brand values its loyal members. Other brands that employ this strategy: Saks Fifth Avenue, Big Lots, Gilt Groupe, Best Buy

Godiva engages loyalty program members with exclusive member-only offers.

1919 No. 17 GIVE CUSTOMERS ACCESS TO A PERSONAL STYLIST OR SHOPPER

Sometimes, customers just need a little help with their shopping. Offering the assistance of a personal shopper as part of your loyalty marketing strategy not only engages customers in 1:1 conversations, but it also gives you a chance to educate them about your products and services and create upsell opportunities.

Saks Fifth Avenue offers personal fashion consultants to members upon request as part of its SaksFirst loyalty program. This 1:1 touch elevates customers’ perceptions about the brand, and the free service helps strengthen shoppers’ relationships with the retailer. Other brands that use this strategy: Sears, White House | Black Market (WBM), Anthropologie, Nordstrom

Saks Fifth Avenue is one of several retailers that offer personal stylists to generate loyalty and build stronger THE MORE YOU USE YOUR CARD, THE MORE relationships with EXCLUSIVE PRIVELEGES YOU ENJOY customers.

2020 No. 18 ENGAGE CUSTOMERS WITH VIP EVENTS

Consumers enjoy being part of something exclusive. By inviting customers to special VIP events, you can generate excitement around your brand, and enhance your image to promote greater loyalty.

Cruise brand Royal Caribbean understands the importance of making guests feel valued by hosting VIP events. As part of its Crown and Anchor Society loyalty program, Royal Caribbean invites members to special parties and events to recognize repeat customers. During the events, guests receive complimentary beverages, hear upcoming news about the ship, and have the opportunity to ask questions and mingle with other guests. Other brands that use this strategy: Gilt Groupe, Nordstrom, The North Face, Kiehl’s, GameStop

Royal Caribbean hosts VIP events aboard its ships to recognize guests for their continued loyalty.

2121 No. 19 reward Customers with gasoline discounts

Despite temporary relief on gas prices, consumers always seem to appreciate a discount at the gas pump. One way to reward consumers and help them save money is by offering gas rewards.

Supermarket chain Stop & Shop awards gas points for every dollar spent on groceries. Customers save 10 cents per gallon for every 100 points they earn. The savings increases up to 30 cents off a gallon when customers earn 300 points. Gas rewards are popular because they help customers save money and they drive basket size for participating brands. Other brands that use this strategy: Shell, Lowes Food, Exxon Mobil, Safeway

Stop & Shop offers customers a break on gas prices through its gas rewards program.

2222 No. 20 give members a sneak peEk with product previews

Not every benefit you offer as part of a loyalty strategy must have a monetary value. Some perks have little to no associated cost, but customers nonetheless find tremendous value in them.

As part of its loyalty program, Anthropologie, a women’s clothing, accessories, and home décor brand, lets members of its loyalty program preview its latest products and campaigns. For example, the email below informs customers about the brand’s spring fashion line, allowing them to shop before the products are available to the public. This entices shoppers to make a purchase and engage further with the brand. Other brands that use this strategy: The Container Store, Sears, Teleflora, Columbia Sportswear Company, The Body Shop

Anthropologie gives members of its loyalty program a first glimpse of its new product line as one of its perks.

2323 GIVE MEMBERS A BOOST

There’s no question that all loyalty programs are rewarding in their own way. What makes one program stand apart from the others is the degree to which a brand helps customers reach their goals, or offers memorable perks that keep members returning. About 75 percent of consumers belong to up to 10 loyalty programs, so it’s important to stand out.46 To maintain interest in your offering, give members access to the little things that offer a greater perceived value. No. 21 offer occasional bonus points

An important goal for any brand using a loyalty tactic is to drive sales. One effective strategy to increase your bottom line is to offer additional point-earning opportunities. This approach increases customers’ earning ability and drives basket size as members work toward a specific award goal.

As part of its retention strategy, VIZIO, a producer of consumer electronics, offers bonus points to inactive customers to rekindle interest in its loyalty program. The unexpected offer not only gives members a VIZIO offers bonus reason to interact with the program, but it also points as part of a generates positive feelings toward the brand. Other re-engagement strategy to remind members brands that use this strategy: Ulta, Hallmark, eBay, about its program Aveda, Sears, My Coke Rewards benefits.

244 2014 Shopper Experience Study, Cognizant 24 No. 22 surprise and delight your customers

In a world where consumers are bombarded with marketing messages, consumers expect and need more from brands to earn their loyalty. While it’s important to offer consistency with your loyalty strategy and rewards structure, giving occasional surprise gifts can strengthen your relationship with members. The tactic serves as a vehicle to wow customers and encourage them to spread the news with others.

USA Track & Field (USATF) uses a surprise and delight strategy to retain its best fans, as well as re-engage dormant loyalty program members. The brand selects its top two most engaged fans and its two least engaged fans and surprises them by mailing autographed photos, personalized postcards, or personal letters from their favorite athletes. More engaged fans generally remain active in the program, USA Track & Field whereas the surprise typically prompts less engaged (USATF) surprises fans fans to share their unexpected gift on social media with autographed photos of their favorite athletes and and become more active participants. Other brands other items to keep the that use this strategy: MasterCard, Zumiez, Caribou brand top of mind and Coffee, Panera encourage engagement.

2525 No. 23 ENCOURAGE SALES WITH FREE SHIPPINGs

When it comes to online shopping, some 42 percent of consumers favor free shipping when offered as part of a loyalty program perk, according to a global survey.65 The incentive of free shipping not only encourages sales, but it reduces shopping cart abandonment over the long term. What’s more, it’s one of the nice extras you can offer as part of your program that customers will appreciate.

To encourage online sales, Nine West, a fashion wholesale and retail brand, offers free standard shipping on any purchase to members of its 9WLoves loyalty program. The perk of free shipping gives shoppers the convenience of shopping from home. Other brands that employ this strategy: Columbia Sportswear Company, ECCO, Staples, Saks Fifth Avenue

Nine West motivates loyalty program members to shop with free shipping on any order.

5 Consumers’ Favorite Loyalty Program Benefits and Biggest Turn-Offs, Marketing Charts, Nov. 15. 2013 2626 No. 24 FEATURE EXPEDITED CHECK- IN/CHECK-OUT SERVICES

It’s a no-brainer that no one likes to wait in line. That’s why it’s important to give your most loyal patrons perks, such as preferential check-in or a separate line, to shorten the wait time for your service or products. Show that you value members’ time, and they will respond with gratitude and loyalty.

Many travel and hospitality brands like US Airways offer priority check-in to members to accelerate the boarding process. Car rental companies, too, are offering the service. For example,H ertz’s Gold Plus Rewards program offers “Carfirmation” of a rental. Customers receive a text message with the car type and location sent directly to their phones. They arrive at the rental facility and find their designated car with the contracts in the vehicles waiting for them in the parking lot. Speed and ease of service are long remembered by consumers. Other brands that use this strategy: Delta, Hilton Hotels & Resorts, JetBlue, Century 21 Department Store, and most other travel and hospitality and auto rental brands

Hertz offers convenience as a top perk in its loyalty program with an expedited check-in service.

2727 No. 25 TEAM UP AND OFFER MULTI-BRAND LOYALTY PROGRAMS

Starbucks now allows Sister brands often join forces in an effort to pool customers to earn their marketing power and reduce costs at the same Stars beyond its flagship time. This strategy also benefits loyalty initiatives by retail store. allowing customers to shop from multiple brands and collect loyalty points across those brands more quickly and easily. For companies, multi-brand programs boost a company’s profitability.

Take Starbucks, for example. Customers can earn and accumulate MyStarbucksRewards “Stars” for purchases at Starbucks, La Boulange, Evolution Fresh, and Teavana stores. Under the loyalty program, members redeem their Stars for rewards at Starbucks or Teavana stores rather than with a single brand. This strategy broadens customers’ point-earning capability and introduces them to another brand to drive acquisition and sales. Other brands that use this strategy: Marriott, Gap, 1800flowers.com, TJ Maxx

28 28 LEVERAGE CONTENT MARKETING In the world of loyalty marketing, content is king. To engage consumers, it’s essential to offer material that customers will find valuable and useful. Content marketing is more than a tool to create exposure or market your products. It’s also a way to position your company as an expert that cares about its customers and forge 1:1 conversations.

Pepsi finds ways to engage consumers through content by rewarding members for No. 26 reading online articles. ENCOURAGE CUSTOMERS TO READ A BLOG/ARTICLE

Not every action customers take with your brand needs to be transaction-based. It’s crucial to encourage consumers to learn more about your brand, products, or services by awarding loyalty points for reading blogs or articles.

Pepsi awards points to members who visit Pepsi.com and read various articles about famous and up and coming musicians. The content appeals to Millennials, Pepsi’s core consumers, and helps them connect with the company in a more meaningful way. Other brands that use this strategy: USA Track & Field, Purina, Lancôme, Pampers, blu e-Cigs

2929 No. 27 incentivize customers to write PRODUCT REVIEWS

Consumers live in a world where they base product and brand decisions on experiences from peers. What better way to obtain information about a brand than from a product review? According to Social Times, customer testimonials are the most effective form of content marketing.6 It’s important to encourage customer feedback about your products and services. Consider motivating members with incentives to write online reviews, or to leave feedback about their interactions with your brand.

Lancôme, for example, lets members of its Elite Rewards program earn rewards for posting a product review. In addition to earning points, customers earn boasting rights for seeing their review posted on the website. Other brands that use this strategy: Tarte, Wayfair, Samsung, B4 Brands, Kate Somerville

Lancôme encourages customers to write product reviews by offering loyalty points for each post they make.

6 [Infographic] 20 Marketing Trends and Predictions to Consider for 302014, Social Times, Oct. 31, 2014 30 No. 28 MOTIVATE MEMBERS TO read EMAILS/REGISTER FOR newsletters

Email is a great tool to help you target and nurture prospects, and turn repeat customers into loyalists. To keep the communication going, give loyalty program members a reason to subscribe to your emails or newsletters.

Nestlé Purina Cat Chow offers members loyalty points for reading emails from the brand. Purina’s email newsletter, for example, contain pet care tips, product reviews, and details about the brand’s My Cat Chow Perks loyalty program. Other brands that use this strategy: Pepsi, Dingo, Southwest Airlines, USA Track & Field, Scentiments

Nestlé Purina rewards members for reading branded emails to learn more about the company and its products.

3131 No. 29 DRIVE ENGAGEMENT WITH VIDEO CONTENT

It’s important to keep customers engaged, especially in an era when people are interacting with multiple channels. Adding video content to your site piques visitors’ interests and persuades them to spend more time on your website.

Showtime, the premium television network, awards points to members of its Red Rewards loyalty program for watching short videos about its TV series. Members can also watch more in-depth videos featuring the cast of their favorite shows. The exclusive videos give fans a unique way to engage with the network and introduce them to other content. Other brands that use this strategy: USA Track & Field (USTAF), Omaha Steaks, Lancôme, VIZIO, Zumiez

Showtime rewards members of its Red Rewards loyalty program points for watching video previews of its TV shows and actor interviews.

3232 No. 30 INCENTIVIZE CONSUMERS TO DOWNLOAD AN APP

Technologically savvy consumers are always looking for new ways to stay in touch with a brand. And apps are an increasingly popular tool you can use to engage consumers and keep them loyal to your brand and products.

Take Denny’s, for example. The casual-dining chain offers members in select areas a free Grand Slam meal for downloading the Denny’s Diner Perks app. The app lets members find participating Denny’s locations and receive promotions, offers, and surprises. Other brands that use the strategy: Omaha Steak, Duck Tape, USA Track & Field, VIZIO

Denny’s motivates members in select areas to download its loyalty program app with an offer of a free meal.

3333 GET INTO GAMING Brands typically reward consumers for taking some kind of action. But some companies reward members for playing games, taking engagement marketing to a whole new level. Thanks to digital technology, it’s easier than ever to get a massive audience engaged and interacting with your brand. Companies are implementing approaches to tie gaming and brand loyalty together.

No. 31 LET CONSUMERS BID ON UNIQUE REWARDS

Consumers are always looking for something memorable from a loyalty program. To keep them engaged, consider kicking things up a notch with an online auction. Members can use their loyalty points to bid on a posh event, a dream getaway, or must- have merchandise.

As part of its ShowStoppers feature, Sony Rewards lets consumers use their earned points to bid on VIP experiences each month, such as autographed movie posters, or hard-to-get tickets It’s a strategy that allows participants to quickly burn their points for specific Sony Rewards’ items that they want. Other brands that use this ShowStoppers program strategy: Delta, Starwood Hotels & Resorts, Verizon lets consumer bid on Wireless cool swag and hard-to- get tickets

3434 No. 32 ENCOURAGE POINT REDEMPTION WITH A SWEEPSTAKES

Some customers like to try to win a coveted prize, so sweepstakes are an ideal tie-in to your loyalty strategy. Allowing members to use their points for sweepstakes entries increases their chances of earning a much sought after reward. Another great benefit of this approach is that members can burn points in the program with little cost to the brand.

Fresh Step, for example, allows members of its loyalty program to use earned points to gain sweepstakes entries. The more points members use on entries, the greater their chances at winning a prize. Other brands that use this strategy: My Coke Rewards, Purina, Verizon Wireless, VIZIO, Zumiez

Fresh Step lets members explore their passion of chance with the option to redeem loyalty points on sweepstakes entries.

3535 No. 33 INTEGRATE DIGITAL MOTIVATION INTO YOUR LOYALTY STRATEGY

Sometimes, consumers just want to have fun with your brand. To increase engagement, many organizations are turning to digital motivation—the use of game mechanics to engage audiences and make mundane tasks fun—and providing users with incentives for their action. By offering the ability to earn points, achievement badges, progress bars, virtual currency and leaderboards, digital motivation can help you improve sales, boost customer loyalty, and increase engagement.

Technology company AMD lets members earn points for playing games, participating in the community, and using the brand’s Gaming Evolved app to optimize games. Gamers can redeem points for free games, hardware, discounts, and sweepstakes entries. Other brands that use this strategy: MLB.com, Total Rewards, Dave & Buster’s

Members of AMD Rewards earn points for playing games and participating in the online community.

3636 DON’T FORGET TRADITIONAL LOYALTY STRATEGIES

When it comes to customer loyalty, it’s essential not to ignore the tried and true methods of engaging customers and rewarding them for their patronage. These particular methods harken back to the very roots of loyalty and still provide results. To truly be successful, these original approaches should be incorporated into a larger, multichannel loyalty and engagement strategy to meet today’s consumer needs and expectations. No. 34 DRIVE PURCHASES WITH PRODUCT CODES

Pampers adds codes If you are a manufacturer, you have an ideal to diapers and baby opportunity to engage loyalty customers and wipes that customers encourage purchases by printing codes on your enter to earn points for rewards and other product packages. This allows frequent buyers to merchandise. collect points and earn merchandise in exchange for their spending habits.

Pampers, for example, drives purchases by prompting customers to enter codes from its packages of diapers and baby wipes. Members collect points via the codes, which can be redeemed for apparel, gift cards, digital cameras, and other merchandise. Other brands that use this strategy: Starbucks, Pepsi, Kellogg’s, ABC (Disney Movie Rewards) 37 37 No. 35 MOTIVATE CUSTOMERS TO MAKE A PURCHASE FOR points

Points for purchase is the most used model for loyalty programs. It’s the foundation on which loyalty was built. Customers simply make a purchase from your brand and you reward them with points or other loyalty currency.

TGI Fridays, for example, offers members one “stripe” for every dollar they spend on food purchases. Customers earn stripes for dine-in, to-go, and delivery orders, in addition to other benefits. Members can redeem their earned stripes for free food items. The more customers spend, the more they earn. Other brands that use this strategy: Hallmark, The Sports Authority, DSW, Ace Hardware

The TGI Friday’s Give Me More Stripes loyalty program enables members to earn “stripes” for purchases and redeem those points for free food

3838 No. 36 OFFER A CHOICE OF LOYALTY REWARDS WITH A CATALOG

There’s nothing like the gift of choice. While consumers are apt to enjoy most freebies from your brand, having the ability to handpick their own reward is the ultimate in loyalty.

Zyrtec, the allergy relief brand, offers members a slew of options as part of its rewards catalog. Members earn points by entering codes from Zyrtec products, for interacting with the brand, and completing activities on the website. Customers can redeem their points for rewards from an online catalog, which features product discounts, magazine subscriptions, music downloads, point donations, and gift cards, among other items. Other brands that use this strategy: Citi, Xerox, Huggies, Chase, Kellogg’s

Zyrtec lets customers select their own rewards as part of its catalog offering

3939 No. 37 DRIVE INTEREST BY OFFERING FREE SAMPLES

There’s nothing like the feeling of trying something for free. Some brands let consumers sample products as part of their loyalty strategy to educate users and boost sales.

Tarte, a cosmetics brand, offers free samples to loyalty program members as a way to introduce other items in its product line to shoppers. It’s a great strategy to highlight products offering while giving customers a nice surprise. Other brands that use this strategy: Sally Beauty Supply, Sephora, Anthony Tarte offers customers Brands, Post-It free samples as part of its loyalty program to encourage sales.

4040 No. 38 GIVE CUSTOMERS A CASH BACK INCENTIVE

Consumers won’t say no to earning back a percentage of their sales. After all, it’s free money that they can use on other purchases, or spend back with your brand.

In one example, eBags allows members to earn at least 5 percent back in rewards on every order. Points are automatically tracked to members’ accounts. Other brands that employ this strategy: Overstock, Discover, CVS/pharmacy, The North Face, PetCo

Participants in the eBags Rewards program receive a percentage on every order to drive additional sales and ongoing loyalty.

4141 No. 39 CAPTURE INTEREST BY OFFERING FREE PRODUCTS

Who can resist a free item? Some 75 percent of consumers say discounted or free products was the most valuable loyalty program benefit, according to Nielsen.76 Freebies are good incentives to capture interest and persuade members to keep doing business with your brand.

Some brands offer free products as part of their loyalty offering. Panera Bread, for instance, offers new members of its loyalty program a free pastry or dessert as a welcome reward for signing up for its MyPanera loyalty program. The program also offers other surprise treats based on engagement. Other brands that use this strategy: Pinkberry, Auntie Anne’s, Godiva, Lexmark, Kiehl’s

Panera encourages program sign up with a free pastry or dessert, along with other rewards as part of its loyalty strategy.

7 Nielsen Survey: 84 Percent of Global Respondents More Likely To 42Visit Retailers With a Loyalty Program, Nielsen, Nov. 12, 2013 42 No. 40 INCENTIVIZE SALES BY DISTRIBUTING MEMBER- ONLY COUPONS

Once you have established a relationship with your customers, you are in an ideal position to offer additional perks, such as member-only coupons. This strategy allows you to further incentivize purchase and engagement with your brand based on customers’ shopping history, as well as offer creative ways to upsell customers to drive spending.

CVS/pharmacy, for example, periodically sends coupons by mail and email to encourage future in-store purchases. This approach gives customers an additional incentive to visit a store to drive additional purchases and increase basket size. Other brands that use this strategy: Stride Rite, Vitamin Shoppe, PetCo, Payless, Gymboree

CVS/pharmacy sends members coupons to drive incremental sales as part of its loyalty effort.

4343 No. 41 expand your loyalty offering with partner rewards

Partnerships can play a key role to drive additional value and utility for customers in loyalty programs. With expanded shopping and engagement options, consumers will appreciate the opportunity to earn points or rewards faster through partners that offer different products and services.

Virgin America lets customers earn more points with its airline, hotel, shopping, and rental car partners. For example, participants can earn 10 points for every dollar they spend at Teleflora and 1,000 points per stay at Virgin Hotels. Other brands that use this strategy: United, Thrifty, American Express, Pepsi, Sony

Virgin Atlantic gives members more ways to earn loyalty points through its network of partners.

4444 CONCLUSION

Loyalty IS CONSTANTLY EVOLVING.

To keep pace, it’s imperative that you evolve your loyalty strategy. Offering the same program with little change provides no value to your customers.

With so much competition in the marketplace, you need to stand apart from the crowd and show why consumers should continue doing business with you. The keys to winning customer loyalty are to demonstrate relevance and provide consumers with engaging activities to keep them interested, get them talking about your brand and products, and most of all, find reasons for them to keep returning and doing business with your company.

About CrowdTwist CrowdTwist is an industry-leading provider of comprehensive multichannel loyalty and analytics solutions that drive engagement and incremental spend, leading to better customer data, stronger insight, and more personalized experiences. We are revolutionizing loyalty, helping top brands including:

For more information visit www.crowdtwist.com, or call 646.845.0646. 4545 For more information contact

Dennis Tze Chief Revenue Officer [email protected]