Loyalty: the Customer Experience Ter Place and Improving Health
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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, custom- ers truly feel as though they are a part of the brand. O ering in- dividual and local customer ex- How to connect with consumers periences, the program rewards loyal shoppers with extraordin- ary 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 do- ing 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.