Loyalty: the Customer Experience Ter Place and Improving Health

A speciAl Advertising feAture by MediAplAnet

No.2 / May 2012 LOYALT Y: THE CUSTOMER EXPERIENCE

EXPERIENCE TORONTO’S LUXURY A holistic approach connecting Canadian consumers to quality brands for lifetime loyalty

3TIPS swipe it! get revved up

FOR GETTING THE the power of Harley-davidson’s MOST OUT OF YOUR carrying loyalty unique customer SHOPPING EXPERIENCE cards experience NAME SURNAME PHOTO: BISHA.COM 2 · MAy 2012 A speciAl Advertising feAture by MediAplAnet CHALLENGES Did you know that one-third of all loyalty reward points go unredeemed each year? Learn how you can turn your

points into big opportunities. WE RECOMMEND Take the leap learn what true customer intimacy means in this must-read book. pAge 6 “customers have much higher Good deeds: Innovative expectations regarding the value exchange that occurs when they rewards programs share information.” The lap of luxury p. 4 oyalty programs most important life goals. Why travellers are fl ocking to toronto for have always focused Canadian marketers making some extra pampering. on helping custom- changes in this direction are mo- Instant expecations p. 7 What retailers are doing to ensure your ers get more value tivated by ever-increasing custom- happiness—right now. from each dollar, er demand for relevance. The Can- but now they want adian loyalty marketing environ- to help boost your ment is, after all, among the most Lsocial consciousness and health as mature in the world—the number well. Imagine saving money, earn- of loyalty memberships in which ing points and achieving your lofti- Canadians were active rose a mod- er goals, like making the world a bet- est 3.9 percent based on the latest lOyAlty: tHe custOMer eXperience ter place and improving health. It’s two-year loyalty census from COL- 2nd editiOn, MAy 2012 all possible. LOQUY. Loyalty marketers have suc- Responsible for this issue: Today’s most innovative compan- ceeded in winning the public’s trust; Publisher: Tyra Bouhamdan ies see customers as individuals, not growth now depends on their ability [email protected] Designer: Penelope Graham rows of cookie cut-outs. As market- to further improve the value equa- Contributors: Tyra Bouhamdan, Kelly ers increase their understanding of tion for consumers. Hlavinka, Pauleanna Reid, Bryan Pearson, each customer, by studying insights Here are just a few of the new, Tim Sansbury, The Social Parlour generated from loyalty program ac- highly creative loyalty programs Managing Director: Chris Vassallo tivity, they’ve come to appreciate that demonstrate one of the big- [email protected] the value of a long-term relationship gest trends in customer loyalty pro- SOURCE: THE 2011 COLLOQUY CROSS-CULTURAL LOYALTY STUDY Distributed within: Toronto Star, May 2012 with their best customers. And they grams—a focus on individual social This section was created by Mediaplanet are creating more rewards “carrots” causes and wellness issues: choices. The program demonstrates partnered with Lawtons Drugs on an and did not involve the Toronto Star or its to help customers achieve their how the cost-e cient capabilities innovative pilot program using AIR Editorial Departments. Unused points present an of loyalty marketing can extend be- MILES reward miles to encourage “canadian opportunity for good. yond traditional consumer relation- healthy behaviours. Lawtons stores COLLOQUY research shows that ships into the public arena. in the Halifax-Dartmouth area of- marketers are one-third of all loyalty points go un- AIR MILES for Social Change has fer a personalized health program redeemed each year. Sobeys gives partnered with the Ontario Power called PROfi le Health Club, at no motivated by customers in Ontario the opportun- Authority to cost-e ectively reach charge. It uses a combination of in- FOLLOW US ON FACEBOOK AND ever-increasing ity to donate points to local char- more than two-thirds of provin- formation and rewards to help pro- TWITTER! itable organizations such as Boys cial households with a pledge cam- mote a range of healthy behaviours, www.facebook.com/MediaplanetCA www.twitter.com/MediaplanetCA customer and Girls Clubs of Canada and Daily paign that rewards utility custom- including medication compliance Bread Food Bank, with those char- ers for conserving energy. The Power for chronic conditions such as high Mediaplanet’s business is to create new demand for customers for our advertisers by providing ities able to redeem the points for Pledge increased participation levels blood pressure, high cholesterol and readers with high quality content relevance.” food purchases or gift cards. more than seven-fold—for half the diabetes. The program shows the that motivates them to act. Aeroplan’s Beyond Miles Program cost of the utility’s previous pledge power of rewards incentives to in- DON’T MISS! lets members donate miles toward program. fl uence positive health behaviours. the travel costs of several Canadian Working with the Toronto Tran- Consumers are demanding more non-profi t organizations. The Money sit Commission, AIR MILES for So- of these kinds of collaborative part- Can’t Buy category of the program cial Change created the Metro Dis- nerships, coming together for caus- made news across Canada recent- count Plan, rewarding riders who es on a scale that makes them truly ly when an Aeroplan charter mem- purchased annual transit passes — influential, and companies are ber used points to purchase a guitar and driving incremental sales of 57 paying attention. Quality results always signed by Kiss vocalist and founder percent. The program has demon- Loyalty programs have always win Canadian shoppers Gene Simmons, and his wife, Shan- strated how a rewards currency can been striving to stretch custom- ■ TJX Canada, the country’s non Tweed. All proceeds from the be o ered as an incentive for switch- er dollars, but now they can boost leading o -price retailer, which transaction went to a charity, War ing to long-term passes, for adopting customer community service and brought us Winners, Home- Child Canada. electronic smart cards or even for health as well. Sense and Marshalls, has recent- shifting daily commutes outside of ly launched an excellent loyalty Earn by doing good. peak times. rewards program called TJX Can- In another example, LoyaltyOne in- A prime example of a health-fo- ada STYLE+. Not only is the pro- stituted AIR MILES for Social Change cused loyalty collaboration also gram free to join, but the exclusive Kelly Hlavinka to provide consumers smart in- comes from LoyaltyOne. The AIR KELLY HLAVINKA benefi ts make this rewards pro- Managing Partner, COLLOQUY centives to make more sustainable MILES Reward Program operator [email protected] gram really unique. Without a doubt, customers truly feel as though they are a part of the brand. O ering individual and local customer ex- How to connect with consumers periences, the program rewards loyal shoppers with extraordinary perks such as: an extended re- and generate loyalty success turn policy, early shopping access to stores, advance tips on fresh ar- As Canadian businesses Rob Daniel the most: the buyers. No brand Susie Maloney rivals at their favourite locations, strive towards differentiat- Vice President, is perfect—on occasion they will Senior Vice special promotions and ‘front of Loyalty & Re- President, ing themselves within an search, Maritz make an error—but gaining true Coverdell the line’ access to new stores and evolving loyalty landscape, Canada loyalty awards forgiveness that exclusive collections. fulfilling consumer expecta- maintains a relationship beyond “We want to reward and ensure tions is more important now the credit card. our TJX Canada STYLE+ mem- than ever. bers get more for their loyalty Customers are an asset to our stores. This means more True loyalty is the key to long-term ten by Daniel and co-author Kyle Points, cash giveaways and re- Cola are at the forefront when it time to make returns, more con- success and establishing a brand Davies, consumers modify their wards are great ways to score cus- comes to tapping into the hearts tests, more access to our stores, community. shopping experience in order to tomers, but they aren’t the on- of consumers. “Starbucks is very and more notice on new prod- “In order to compete in the Can- maximize the rewards they earn ly ways to inspire and motivate boastful about how they listen uct,” says Shannon Johnson, TJX adian marketplace, loyalty operators from loyalty programs. When an them. “We have trained consum- to their customers on Facebook, Canada spokesperson. have to do an amazing job on two emotional connection is formed ers in Canada to expect delivery which is a great loyalty strategy,” Canadians keep coming back fronts, such as: building meaningful in the early stages of the relation- on our promises. It’s about giving remarks Daniel, whose study al- because TJX Canada delivers on value inside loyalty programs and ship between a brand and its audi- them incredible experiences that so concludes that there is a tre- designer and brand name fashion enabling communication between ence, a deep rooted trust develops mark a significant, notable mo- mendous correlation between and home décor with exception- the brand and consumer,” says Rob over time. Furthermore, provid- ment in their lives,” says Susie successful communication and al value; and now with TJX Can- Daniel, vice president of Loyalty & ing the window of opportunity Maloney, senior vice president of satisfied members. Social media ada STYLE+, loyal shoppers can research at Maritz Canada. Accord- where loyalty marketers can de- Coverdell, a marketing services is a vital component and should reap even more benefi ts while doing to the “Maritz Insights: the loyal- sign strategies to succumb to the company. Shoppers want reassur- be immensely incorporated into ing what they love—shopping and ty report”, a Canadian study writ- desires of the people who matter ance that if they remain loyal, communication strategies. Cus- saving. With great initiatives that in return, the brand will afford tomers have a platform to voice are hard to beat, the loyalty pro- DID YOU KNOW? them the chance to contribute their opinion. To ensure a posi- gram not only establishes a rela- their own ideas to help create the tive outburst, brands shouldn’t tionship, but showcases that the The value of loyalty grams make them more likely to best customer experience. “From lose sight of their objective. organization is willing to go above continue doing business with a a business perspective, if you and beyond in order to prove its ■ Forty five percent of consum- particular company. can keep your current custom- worth within a competitive retail ers get a “rush” from watching ■ Nearly one-half of consumers ers happy, it will encourage them market. loyalty program balances grow. say that loyalty programs cause to repeat their purchase,” states ■ Sixty two percent of Canadian them to modify when and where Maloney. Brands such as Har- PAULEANNA REID PAULEANNA REID shoppers say that loyalty pro- they shop to maximize benefi ts. ley-Davidson, Apple and Coca- [email protected] [email protected] A speciAl Advertising feAture by MediAplAnet A speciAl Advertising feAture by MediAplAnetT:5.1” MAy 2012 · 3

SUCCESS TIP 1 LOOK FOR As if you RETAILERS WHO CUSTOMIZE REWARDS TO YOUR INTERESTS needed another reason to shop.

PRESTIGE HITS THE ROAD “Owning a Harley-Davidson motor- cycle gives you instant recogni- tion. Your nose isn’t in the air, your head is definitely held high”, as a HOG (Harley Owners Group) member puts it. PHOTO: DEELEY HARLEY-DAVIDSON® CANADA The strength of the Harley-Davidson brand cannot be dis- puted—with over a million members, the familiar orange insignia is emblazoned on highways worldwide. The secret to their success? Establishing a unique relationship with each and every customer.

REVVING UP THE T:20.29”

PASSION FOR Introducing the THE CUSTOMER TJX Canada STYLE+TM EXPERIENCE Loyalty Card. Established in 1982, The Harley Pick up your free Card at Owners Group is an iconic brand that has achieved longevity through any Winners, HomeSense or building unique relationships. Marshalls store near you for With over a million members worldwide, three decades later, their strategies still produce extraordinary results. + 30 day returns* “Proven brand loyalty, such as through membership of the Harley Owners Group, drives competitive advantage and increased proﬁ tability, but more importantly, it is the + Exclusive contests tell-tale sign of achieving the coveted brand A DRIVING FACTOR Tara Hunter believes key relevance among your customer base,” says competitive advantage is Tara Hunter, senior manager of Strategy, Plan- caused by customer loyalty. + Early shopping hours PHOTO: DEELEY HARLEY-DAVIDSON ning & Analysis at Deeley Harley-Davidson CANADA Canada. The Harley-Davidson brand strongly † believes in the power of consistent, personal- and more ized experiences. Although deﬁ ned by the ba- and loyal brand community. “The secret is de- by boomer generation, as its audience evolves veloping a strong retailer network which under- and attracts the interest of younger riders, the stands the importance of nurturing and re-kin- focus has now been shifted towards nurturing dling a passion for the brand,” says Alex Carroni, the newcomers without alienating an existing media relations and social media specialist at Deeley Harley-Davidson Canada.

“Often we just ﬁ re Let your message be heard There will always be challenges when establish- for the aptitude ing true loyalty, but according to Dolly Konzel- and forget the mann, president of the International Customer Service Association, the solution is a combina- attitude. it’s about tion of both aptitude and attitude. “Often we just ﬁ re for the aptitude and forget the attitude. It’s delivering the right about delivering the right message and creating the experience for the customer to ensure message and that the brand’s message is being heard,” she says. It’s no secret the key area to focus on is get- creating the ting closer to the customer and to accomplish this task, employee engagement is important. tjxstyleplus.ca experience...” “The old mantra ‘a happy employee gives you a happy customer,’ has never been truer than it is Dolly Konzelmann right now,” Konzelmann a rms. To gain happi- President, International Customer er employees, better press and increased sales, it Service Association, all boils down to transforming the customer ex- Toronto Chapter perience. But it won’t happen overnight—this * When card is used with purchase, the return period for a refund in the original tender is extended from 10 to process is a journey. 30 days. PAULEANNA REID † Shop with your card at least 3 times at any Winners, HomeSense or Marshalls store in Canada. Purchases [email protected] must be made at three separate stores and/or three separate days to qualify. See full Terms for more details.

OGILVYOGILVY DIVISION DIVISION PUB: Loyalty – The Customer Experience AD #: Winner Loyalty Print Production Contact: FORMAT: Newspaper FILE: 01-34836-WinnerLoyalty-NWS.pdf Louise Dagenais TRIM: 5.1" x 20.29" CLIENT: Winners RedWorks Delivery/Technical Support: (416) 945-2388 JOB #: P.WNN.WNN.GEN.12014. 4 · MAy 2012 A speciAl Advertising feAture by MediAplAnet INSPIRATION TIP 1 2

SHOP FROM RETAILERS WHO EXPERIENCE UNDERSTAND THE CONNECTION BETWEEN Toronto’s top QUALITY AND REPEAT hotels BUSINESS 2 The Four Seasons ■ In Toronto since: 1961—Four Seasons Hotels & Resorts was founded right here in Toronto! ■ Must experience: The new property in the heart of upscale Yorkville, opening this summer. ■ Distinctive features: As the newest fl agship to the city, the hotel will feature 259 guest rooms including 42 suites, the largest luxury hotel spa in the city spanning across two fl oors and 30,000 square feet, glass-enclosed event spaces and Café Boulud and bar by inter- 3 national restaurateur and Chef, Daniel Boulud. The Fairmont Royal York ■ In Toronto since: 1929 ■ Must experience: Rooftop garden and apiary. ■ Distinctive features: This is Toronto’s landmark hotel, with To- ronto’s most cherished attractions and cultural institutions in close proximity. The rooftop garden and 1. Guests can relax amidst carefully-selected apiary are known to gardeners art in their personal suite living rooms. around the world for their unique 2. Sip cocktails in style and comfort in Bisha’s sleek lounge. contributions to urban agriculture. 3. Elegance abounds in every corner—and Be sure to visit EPIC, the hotel’s sig- corridor. nature Four Diamond restaurant. PHOTO: BISHA.COM The Ritz Carlton ■ In Toronto since: 2011 ■ Must experience: The cheese Question: How can Canadians benefi t from the cave at signature restaurant, TOCA, by Tom Brodi. Toronto luxury real estate market? ■ Distinctive features: The only 5 Diamond Hotel in Toronto; Answer: It’s all about the details. City Staycation package (for two), featuring a Club Level experience; a 23,000 square-foot spa and Urban Sanctuary; a proudly “Canadian” theme, spanning the culinary offerings, spa design, interior design Luxury with a bite: The and art program. The Park Hyatt ■ In Toronto since: 1999 new high-end Toronto ■ Must experience: Kosher At The Park Package, Art of Shoes HOW I MADE IT lishment presents investment op- states Khabouth. Package. portunities into a thriving real es- ■ Distinctive features: Presti- Toronto is going through a tate market. It attracts sophisticat- Three heads are better gious Four Star Award —2012 Forbes major transformation, and ed young professionals and injects a than one Travel Guide (hotel & spa), Pinnacle Bisha Hotel and Residences plush high-end lifestyle experience The 150-million-dollar project will also Award —2011 Hotelier of the Year- is part of it. into a community that has been be produced in partnership with Life- General Manager, Paul Verciglio; anxiously anticipating what sur- time Developments, whose credibil- Top 500 Hotels in the World - 2011 The newest, most luxurious, cut- rounding cities like New York, Lon- ity and holistic approach also honours Travel + Leisure Magazine. ting-edge development on the don and Montréal have already been the value and passion that both Kha- rise, it is also the extraordinary vi- doing for years. bouth and Kravitz Design Inc. illus- The Thompson Hotel sion of Entertainment District mo- trate. Among their portfolio, Lifetime ■ In Toronto since: 2010 gul Charles Khabouth, CEO of INK The creative process Developments has worked on M5V, ■ Must experience: Scarpetta Entertainment. The most anticipated addition to join Liberty Market, Water Park City and Outdoor Dining Pavilion, Rooftop Widely known for his previous Bisha is the 10,000 square-foot fl oor is currently developing the new Four Lounge, 889 Yoga and Wellness Spa. successes—This is London, Guvern- designed exclusively by Kravitz De- Seasons Hotel/Residences. “There’s ■ Distinctive features: The ment, Kool Haus, Tattoo Rock Par- sign Inc. Founded in 2003 by Lenny only one major hotel brand that had a size and scope of the dining and lour, La Société, CUBE Nightclub, Kravitz, the Grammy Award-winning strong focus on the four-star category, entertainment amenities sets Ultra Supper Club and Dragon- rock star turned creative director em- which is the Thompson Hotel. So we Thompson apart: Scarpetta, The fl y Nightclub are included in his 28 braced a talent hidden to most and in- believe that there’s tremendous op- Diner (24-hour); lobby bar; rooftop plus years of experience in the hos- fused his expertise into the recording portunity at that level. It’s a category lounge; 1812 Lounge; The Terrace; pitality and entertainment indus- studio interiors located at the Setai Re- that has huge potential,” says Brian 40-seat screening room; confer- try and contributed to his accurate sort & Residences in Miami Beach, the Brown, vice president of Lifetime De- ence room, function room, & large foreshadowing of the luxury gap in TOUCH THE SKY Florida Room at Miami’s Delano Hotel, velopments. The inspiration behind A rendering shows the finished fi tness facility. Toronto. The 41-storey boutique ho- vision for Bisha. and most recently, a 47-storey condo- the name, Bisha, comes from Kha- tel and condo project will include PHOTO: BISHA.COM minium Paramount Bay also located bouth’s childhood nickname. “This Also check out: approximately: 100 hotel rooms, in Miami, Florida. Khabouth describes project is a representation of myself. ■ The Shangri-La Hotel (opening 322 condo suites, two restaurants, ployee uniforms will be more than the work created by Kravitz Design It’s a collection of my experiences August, 2012); a 24-hour café, in-house entertain- the usual,” says Khabouth. A recent Inc. as nothing less than spectacular and enthusiasm in one building,” af- ■ Trump International Hotel & ment, a 7,000 square-foot rooftop report by Forrester Research, “The and emphasizes that the merge was fi rms Khabouth, who plans to take Bi- Tower (opened January, 2012); patio, a basement car wash and an Business Impact of Customer Ex- formulated by an undeniable chem- sha world-wide, by enriching and em- ■ The Hazelton Hotel (opened infi nity pool overlooking the city. perience” (March 26, 2012), shows istry and a genuine understanding powering those who desire nothing summer, 2007) “A lot of luxury developments play that “better customer experience and respect for design and fashion. but the best. it safe. Bisha is the marriage be- can mean millions in revenue”, and “I’ve always been interested in lux- tween luxury and edge. The style of the hotel industry could reap top ury real estate, it was just a matter of PAULEANNA REID service, public art and even the em- benefi ts. The awe-inspiring estab- the right time, partners, and location,” [email protected] A speciAl Advertising feAture by MediAplAnet A speciAl Advertising feAture by MediAplAnet MAy 2012 · 5 INSPIRATION

TIPS

Aaron Carr General Manager, Product Management, Aeroplan 2 Why digital media matters As Aeroplan’s membership continues to evolve, digital media now plays an integral role in the development of different redemption opportunities and communication tactics.

In February of 2012, the com- MEETING OF THE MASTERMINDS From left to right: pany launched a new Canadian Mel Pearl, Principal, Lifetime Developments; loyalty approach with its digital Sam Herzog, Principal, Lifetime Developments; Charles Khabouth, CEO, INK Entertainment media store which includes: e- PHOTO: LIFETIME DEVELOPMENTS T:8.375” books, games, apps, download- able music and Facebook cred- its. In addition, a mobile app has been created as well to meet the high level of interest and equip customers with a tool that will help them stay connected in their busy day-to-day lives at any given time. “This device allows consumers to maximize the value they get from the program. Communication is evolving, so it’s critical that Aeroplan always stays ahead of the trend to ensure we remain connected with our members,” says Aaron Carr, general manager of Prod- uct Management at Aeroplan. Accumulation opportunities are endless and increasingly ex- pected to grow in the future.

PAULEANNA REID [email protected]

Get carded Check out how you can make the most of your stay with hotel loyalty offerings

Fairmont President’s It’s your trip. Club www.fairmont.com/ fpc/ How you get there is your choice. T:13.5625” 1 The Ritz Carlton Rewards www.ritzcarlton.com/ 2 en/Rewards

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1Earn 50% more on purchases at merchants classifi ed by Visa or MasterCard (as applicable) as grocery stores, service stations or drugstores until total annual account purchases (at these stores & elsewhere) reach $80,000. Ask for details. ®Aerogold and Aeroplan are registered trademarks of Aeroplan Canada Inc. TMVisa Int./CIBC lic. user. TM1World MasterCard is a trademark of MasterCard International Incorporated. All marks used under license. ®1Registered trademark of CIBC. TM2Trademark of CIBC. “CIBC For what matters.” is a trademark of CIBC. *Insurance coverage(s) are underwritten by Royal & Sun Alliance Insurance Company of Canada (RSA). To learn about this insurance and important information regarding coverage eligibility requirements, benefi ts, limitations and exclusions, see cibc.com/ca/credit-card/agreements-insurance. For more information, call RSA toll-free at 1-866-363-3338 in Canada, the continental U.S. and Hawaii or collect from elsewhere at 905-403-3338.

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CIB_N_12_131C.indd 1 3/19/12 5:27 PM

PRODUCTION NOTES

APPROVALS BY DATE • IMAGES ARE LINKED TO HI-REZ Studio • IMAGES ARE VECTOR-BASED Client: CIBC Art Director: JOHN FINN • Project: CARDS PRINT Copywriter: JIM GARBUTT Type Mgr. Docket: CIB_12131 Print Mgr: BERNIE BANIGAN Client Code: 0222A-12/85692 Client Serv: NUCCI WALSH Proofreader Colour: 4C Print Mgr. Fonts: TT SLUG OTF, FRUTIGER LT STD Title: IT’S YOUR TRIP. HOW YOU GET THERE IS YOUR CHOICE. V.O.: 8.375” X 13.5625” Trim: 8.375” X 13.5625” Art Director Pubs: TORONTO STAR Safety: NONE Bleed: NONE Copywriter Date: 3-19-2012 2:03 PM Creative Dir. Region/Layer Code: Artist: OPTIC PREPRESS Typesetting: Optic Nerve AD NUMBER/COMPONENT: LASER% Acct. Mgmt. This advertisement prepared by PUBLICIS X 100%, Y 100% Client CIB_N_12_131C

REVs PDF CYAN, MAGENTA, YELLOW, BLACK DUE DATE: MAR 19 0 1 6 · MAy 2012 A speciAl Advertising feAture by MediAplAnet MUST READ! TIP

SUCCESS Elizabeth 3 Gladney Director, Loyalty, Indigo Books & One small step for LOOK FOR GIFT Music CARDS THAT OFFER FREEDOM AND SECURITY PUBLISHER’S marketers, one giant PICK! Building plum relationships leap for customer intimacy by actively listening ■ BE INFORMED out was cumber- consumers share personal in- Indigo Books & Music is an some, the employ- formation with you, they are en- extraordinary brand leader. The Today, loyalty marketing and ees were ill in- tering into a value exchange. Give secret behind the company’s suc- information sharing are as formed, and that them something of worth in re- cess isn’t rocket science, but in common as coconuts in the she was often turn for the data they give you. fact a very simple concept: listen- produce aisle. overcharged on ■ Make the loyalty leap: ing fi rst and building second. sale items. Get organization-wide commit- With astounding growth of But getting from customer infor- Yet every week ment to redirect your focus from the year-old plum rewards mem- mation to customer intimacy has she returned, the product to the consumer. bership to more than four mil- taken many leaps—in technol- using her loyal- lion customers, Indigo has un- ogy, in confi dence and in consumer ty card that re- These four steps should en- doubtedly tapped into the hearts understanding. corded all of her able most any merchant to hold of their audience by getting them Consider that years ago, back purchases, even on to its customers, even in the actively involved in what’s mean- when the concept of customer in- though the cou- face of worthy competition. Take ingful to their loyalty program. timacy sounded like something that pons she got my friend. She eventually dropped “Hard benefi ts alone are certain- could get you fi red, I was fi ghting an in return were her nearby supermarket in favor ly not enough to establish true uphill battle just trying to get mer- rarely for prod- of a merchant that is further from loyalty. Customers want and ex- chants to understand something a ucts she pur- home and no less expensive, but it pect more. Programs have to o er lot less sexy: the power of customer chased. responds to her shopping patterns compelling, relevant and unique data. My friend with o ers and services that are rel- benefi ts,” says Elizabeth Gladney, I recall one presentation, when was hardly evant. director of Loyalty at Indigo Books a skeptical retail executive sco ed loyal, though I It took a leap of faith on her & Music. Trust can only be creat- at my results. “How many of our have a hunch part, and some responsible ed through unparalleled custom- customers were captured in this the merchant data use on the part of the new er service, which has always been study?” he asked. “Two hundred, thought she merchant, but now she is much a guiding principle at Indigo. Re- 500 or 1,000?” I told him: “Roughly was. In fact, happier. search and data help the brand 689,375.” I bet a lot of to prepare o ers and experiences Twenty years later, that merchant companies de- BRYAN PEARSON that consistently meet or exceed and I are still working together, fi ne “loyal customers” by repeat How is customer intimacy [email protected] customer expectations. Since the though the landscape has changed business and longevity. achieved, then? My guide launch of the Plum Rewards pro- markedly. Loyalty is now a multi- But it would be a mistake to con- includes four basic, but AUTHOR PROFILE gram, Indigo, Chapters and Coles billion-dollar, global industry span- fuse repeat business with custom- important, steps: have more than doubled their ac- ning most every industry. And er loyalty, or intimacy. Repeat busi- Bryan Pearson quisition targets by tailoring re- customers have much higher ex- ness may be the simple result of lo- ■ Build emotional loyalty: Know ■ Bryan Pearson is President wards to suit personal taste. “Can- pectations regarding the value ex- cation, price, service or product. It what your best customers love about of LoyaltyOne and author of The adians trust Indigo and we aim to change that occurs when they share also is driven by routine, needs and you and build on that. Loyalty Leap: Turning Customer enrich the lives of our members in information. availability. ■ Assure you are relevant to Information Into Customer In- everything we do,” says Gladney. For instance, I have a friend who Customer intimacy, meanwhile, is your customers: Resonate with timacy, which will be published used to shop at the same grocery when a customer chooses to stay with you customers through a in May, 2012. For more PAULEANNA REID store almost every week. And every a brand even when an equal or poten- di erentiated experience. information, visit [email protected] week, she complained: the store lay- tially better alternative is available. ■ Use data responsibly: When www.pearson4loyalty.com.

Members Get More. Enjoy access to invite-only product previews, meet & greets with world-renowned authors, private movie screenings, exclusive offers and more!

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® Indigo Books and Music Inc.

Priority Access to Bill Clinton’s Book Launch A speciAl Advertising feAture by MediAplAnet A speciAl Advertising feAture by MediAplAnet MAy 2012 · 7 RETAIL INSIGHT ! PUBLISHER’S PICK

shop! ‘til you drop ■ The Cadillac Fairview shop! card gift card program is a multi- store, multi-mall gift card program that allows card holders to shop at 24 premier Cadillac Fairview shopping centres across CANADA’S LOYALTY LEADERS Canada. The card runs on a credit card network, which makes it very di erent from an individual re- RESPOND TO CONSUMER DEMAND tailer card because it can be used at multiple stores. “What our gift card program o ers is choice and FOR INSTANT REDEMPTION security,” explains Tina Burgess, National Gift Card Manager at The hree-time Os- retailer famous for its paper money Cadillac Fairview. This card is a car winner Meryl “...if managing and redeeming unveiled in February the Canadian ticket to premier shopping cen- Streep once fam- Tire “Money” Advantage program. tres from New Brunswick to Brit- ously uttered, “In- rewards were easier, there The upgrade to Canadian Tire’s icon- ish Columbia with approximately stant gratification ic loyalty o ering was launched on a 4,000 retailers to choose from. It is is not soon enough.” would be far less unclaimed pilot basis in Nova Scotia’s 21 stores no wonder the redemption rate is The modern day value on the table.” and eight gas bars. 96 percent. customerT rewards industry would The new program o ers members “The shop! card gift card is an at- be hard pressed to find a more the option to collect Advantage points tractive gift on an individual level, timely and appropriate tag line. managing and redeeming rewards something our Collectors have been electronically with a new loyalty card however a large percentage of our In fact, a 2011 study conducted were easier, there would be far less asking for and we’re happy we can or key chain fob. The company said its customers are corporate compan- by loyalty marketing research ﬁ rm unclaimed value on the table. now make it even easier for them research demonstrated consumers ies,” states Burgess. Companies COLLOQUY showed that when 1,000 That point isn’t lost on operators to get the most out of their reward want a more convenient and electron- looking to reward their employees Canadians were asked why they of the AIR MILES Reward Program. miles,” said Neil Everett, AIR MILES ic option to collect and redeem. or their customers turn to this card joined a customer loyalty program, AIR MILES launched a new feature chief marketing o cer. “We are now “Members will now be able to take because it’s easy to manage. “We of- 57 percent said it was because the in March 2012—AIR MILES Cash— the only loyalty program in Canada home that kitchen appliance, BBQ, fer people one stop shopping where program makes it easy to redeem for that enables Collectors to instant- that provides the option to redeem snowblower or thousands of other the gift allows the recipient to make a reward when you have earned it. ly redeem their AIR MILES reward instantly on everyday purchases products even faster,” said Rob Shields, their own choices,” a rms Bur- A separate COLLOQUY study that miles in-store for everyday and high- from a variety of participating retail- Canadian Tire senior vice president of gess. Shop! card gift cards can be attracted attention in Canada and value purchases like gas, grocery ers across multiple categories.” marketing. There’s no minimum and obtained at any Cadillac Fairview the United States in 2011 showed and drug store items at key retailers In Ontario, Collectors can redeem points can be redeemed at any time to- shopping centre Guest Services, that U.S. rewards collectors earned known as AIR MILES sponsors. from their AIR MILES Cash balance wards the thousands of eligible prod- and, launched just last summer, $48 billion in loyalty points and With an AIR MILES Cash balance at Shell, Metro, Rexall, Jean Coutu ucts in-store.” it can also be purchased online at miles in a year, but left an eye-pop- of 95 reward miles, Collectors can re- and RONA (spring 2012). For more information on these pro- www.shops.ca. ping $16 billion of those unused—redeem instantly for $10 o at check- Canadian Tire is rolling down a grams, visit:www.airmiles.ca/ sulting in an average of $205 worth out and then in $10 increments, similar path. and www.canadiantire.ca. TYRA BOUHAMDAN of unused points and miles per up to a maximum of $200 per day, In a second major example of a [email protected] household. including taxes. Canadian business leader o ering TIM SANSBURY The point of the study was that if “The ability to redeem instantly is faster, easier reward redemption, the [email protected]

A whole new level of exclusive savings PUBLISHER’S PICK! We’ve all done it—pulled out Parlour.com), a new online rewards counts to Toronto’s most popular “Not just for the savings, but for the ‘needing a a coupon in the middle of site, takes good old-fashioned cou- restaurants, shops and services, as ‘cool factor’ around being a part of discount’ in- dinner at a nice restaurant poning to whole new heights. With well as exclusive events and line by- this prestigious club. So I went on- to ‘deserving a dis- and quickly handed it over one sleek personalized card, well- pass privileges at the city’s hottest line and tried to sign up, only to re- count’,” explains Frank Sinopoli, to the server trying not to be heeled members can access dis- clubs. ceive notiﬁ cation that my request Founder of The Social Parlour. “It’s noticed by fellow diners. was declined. Who wouldn’t want an innovative approach to luxury Selective savings me as a member?” It turns out the that can save members hundreds of While online coupons are every- The one catch is that not just any- only way to gain access to a mem- dollars each month on their favorite where we turn, the social stigma at- one can be a member. “After hear- bership is through an invite from an products, services, and restaurants tached to using them is still strong. ing about this card, I wanted to existing member or an access code while also gaining them access to So Torontonians have found a sign up,” says a young professional from one of the company’s ambas- the city’s hottest night life.” new way to reap discounts, VIP Torontonian who had heard about sadors. style. The Social Parlour (TheSocial- the card through a group of friends. “The Social Parlour has turned COURTESY OF THE SOCIAL PARLOUR [email protected]

Collect points. Earn rewards. Join for free.

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TM/® Indigo Books and Music Inc. 8 · may 2012 A special advertisingT:10.375” feature by MediaPlanet

Designer: Caroline NeronPhoto: George Pimentel Photography T:20.29”

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Certain restrictions and terms & conditions apply. Limited quantities available and limited time o er. Visit pricelesstoronto.ca for complete terms & conditions. For Canadian MasterCard cardholders only (Quebec excluded). The site and its o ers are not intended to be used or accessed by residents of Quebec. ®/™ MasterCard, Priceless, World and World Elite MasterCard, and the MasterCard brand mark are registered trademarks of MasterCard International Incorporated. “Toronto Maple Leafs,” “Leafs” and associated word marks and logos are trademarks of Maple Leaf Sports & Entertainment Ltd. and are used under license. “Toronto Raptors” and associated word marks and logos are trademarks, designs and other forms of intellectual property of NBA Properties, Inc. and the Toronto Raptors and are used under license. © 2012 NBA Properties, Inc. All rights reserved. © D.R. © 2012 MasterCard International Incorporated. All trademarks are the property of their respective owners and are used with permission.

MAC12085–MC-DISTILLERY 10.375x20.29-4C-003.indd MCD12055-003-4C-12 R1 4-27-2012 4:45 PM None Rodrigues, Pedro (TOR-MCL) Cyan, Magenta, Yellow, Black Distillery Steve Ferreira MasterCard 100% None SPEC ORIGINALLY GENERATED: by Operator PAGE: 1 MCD12055 10.375” x 20.29” SAFETY: None TRIM: 10.375” x 20.29” Bleed: None Gotham (Book, Bold, Medium; OpenType), Gotham Condensed (Book; OpenType)

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