Loyalty and Rewards

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Loyalty and Rewards A SUPPLEMENT DISTRIBUTED WITHIN THE GUARDIAN ON BEHALF OF MEDIAPLANET WHO TAKE SOLE RESPONSIBILITY FOR ITS CONTENTS In association with No. 3 / December 2012 Distributed within The Guardian LOYALTY AND REWARDS STEPS3 TO CONNECTING WITH CONSUMERS Meet the needs of your customers Understand what’s important to them Analysing data How to gain a 360 degree view of your customer The importance of a loyalty strategy Deliver rewards and connect to people THE POWER OF Coalition loyalty The benefi ts of CUSTOMER DATA multi-partner coalition Bryan Pearson, President of LoyaltyOne and author of The schemes Loyalty Leap off ers his best tips to achieving customer intimacy PHOTO: COLLOQUY 2 · DECEMBER 2012 AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET CHALLENGES Today, when it comes to companies winning your heart, so much depends on what is in your hands, says Carlos Dunlap of COLLOQUY. WE RECOMMEND Caroline Papadatos Senior Vice President, International, Key trends for winning LoyaltyOne PAGE 6 ‘Coalitions yield loyalty in a digital age data that is more ust think about the customer complaints. If that means a descriptive, predictive items you interact with gift from duty free, it will happen. and actionable than most — a mobile phone, anything a retailer a tablet and perhaps a More security stores’ laptop. Across all of these In May 2011, the EU updated the screens, you engage with 2 Privacy and Electronic Commu- communities through nications Directive, requiring web- Facebook, Twitter, TripAdvisor, Yelp, sites to get user consent before stor- JFoursquare and many more. In short, ing cookies on their computers. As of people network to meet their exact October 2012, most UK users were al- We make our readers succeed! needs. Any email or communication lowing third-party cookies according Carlos Dunlap that is irrelevant can be zapped away to Computer Weekly. This implies Editorial Director, COLLOQUY LOYALTY AND REWARDS, with the touch of a button. businesses are gaining trust, but we 3RD EDITION, DECEMBER 2012 Brands and organisations, thank- know the demand for greater trans- Entertainment Managing Director: Chris Emberson Editorial and Production Manager: fully, are learning to connect with parency, and relevance, will continue. Call it the emergence of “play- Faye Godfrey consumers on their own terms. They 4 sumers”: Shoppers want Business Developer: Dominic Webber are tailoring operations to suit the Immediacy brands that are fun, so games and Responsible for this issue way people live, and connecting in Mobile technologies have cre- contests are entering the fray. For in- Project Manager: Lee Harrison Phone: 020 7665 4441 meaningful ways. At COLLOQUY, we 3 ated an on-demand market- stance, M&S Money last Christmas E-mail: [email protected] have seen these trends: place that is universally accessible launched a contest that gave its club Distributed with: The Guardian via a multitude of devices. Compa- members the chance to win one mil- Print: The Guardian Print Centre Employee empowerment nies from Sainsbury’s to Starbucks lion M&S points, worth £10,000 — Mediaplanet contact information: More companies now train and are developing apps for a variety of and it won some awards itself. Phone: 020 7665 4400 1 trust their employees to make services, including mobile pay- So next time you click on, consid- Fax: 020 7665 4419 E-mail: [email protected] snap decisions to resolve service is- ments. These apps translate to a er all of the opportunities at hand. sues. This makes sense since one an- speedy check out, they may let you And if you do not like what you see at Find Mediaplanet UK on: gry Tweet can reach thousands of peo- jump a queue at a crowded venue, the moment, no worries — there are ple in minutes. Virgin Atlantic even and they serve up off ers based on plenty of savvy companies that un- trains its staff on the cost of servicing your preferences and GPS location. derstand what is important to you. 300m HOUSEHOLDS INSPIRING LOYALTY WORLD’S LEADING BRANDS We help some of the world’s leading brands connect with their best customers through loyalty and insight programmes. Why not speak to us about how we can help you transform your customer relationships? contact Will Shuckburgh / MD European Commercial Development T 0207 152 4806 / [email protected] Proud sponsors of the Loyalty Awards 2013 4 · DECEMBER 2012 AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET STEP NEWS 1 CREATE A LOYALTY STRATEGY COLLECT POINTS Loyalty schemes like Nectar offer the customer the opportunity to earn points that they can spend in a number of different ways PHOTO: AIMIA Nectar sign up Loyalty is the retail boosts loyalty for British Gas currency of the future When research by energy provider British Gas ■ Question: How can a points to save money, eight out Benefits for all revealed its customers business retain customers and of 10 accumulate points wherev- Johnston adds that loyalty wanted to be rewarded increase sales in today’s tough er they can and one third collect schemes also help companies to for their loyalty it joined times and the years ahead? more points now than they did re-engineer their businesses by the UK’s largest loyalty ■ Answer: With a loyalty four years ago. encouraging consumers to take programme Nectar. strategy that connects with For companies operating in a actions that save the organisa- people however they shop and challenging and often compet- tion money. This could include British Gas, along with its en- delivers relevant rewards. itive marketplace, an effective persuading customers to switch ergy competitors, suff ers from loyalty strategy will be one of the from paper to online billing. a low level of trust and heavy The economic downturn has most powerful weapons to in- Customers are no longer be- customer churn so it needed to fuelled the shopper’s passion for crease sales, drive customers to ing rewarded just for the transac- diff erentiate itself and engage loyalty schemes and prompted different parts of the business tions they make but also for the more with existing and poten- retailers and brands to analyse and keep them faithful. “Loyal- different interactions they have tial customers. more closely the data they collect ty may seem all about cards and with a brand across different Nectar is a loyalty coalition to boost their customer relation- points on the outside but ulti- marketing channels. This trend of brands including Sainsbury’s ships and sales. mately it is about customer re- will accelerate in 2013, powered and Ebay and British Gas saw its lationships and managing these by the increased use of mobile de- involvement as a way to build Economic downturn effectively in future,” says pres- vices such as tablets and smart- lasting customer relationships. boosts loyalty ident and CEO of Aimia, Europe phones that are becoming useful Awarding Nectar points Since 2008, loyalty has become a and the Middle East, David John- shopping aids. boosts retention rates and peo- valuable currency for consumers ston. “Consumers are demanding Johnston expects to see a ple are given points for taking as household incomes have been more of a value exchange when growth in what is known as actions that save the company squeezed. Shoppers are work- they share their data and loyalty showrooming activity where money, such as taking their own ing harder to earn and redeem schemes are popular because this shoppers visit a store and use meter reading or choosing to pay rewards online as well as on the trade-off is very transparent and their smartphones to compare by direct debit. high street. they get relevant rewards.” prices before purchasing at a The campaign reached its fi rst Figures from global leader lower price online. According to year enrolment target of 2.35m in loyalty management Aimia, a YouGov survey conducted for customers within the fi rst eight which owns the UK’s top coali- David Johnston Aimia, about one third of men weeks and direct mail response President and tion loyalty programme Nectar, CEO, Aimia, and one in five women already rates are up by 160 per cent. reveal the importance of loyalty Europe and the shop this way. schemes in the current econom- Middle East STEVE HEMSLEY ic climate. Two thirds of Nectar’s STEVE HEMSLEY [email protected] 18m collectors openly collect [email protected] 1BZXJUIQPJOUT*UTUIBUTJNQMF 5IFVMUJNBUFSFXBSEFYQFSJFODFBUBOZQPJOUPGTBMF Use your points or miles anytime and anywhere with PointsPay® Are you a consumer? Do you run a rewards program? "WBJMBCMFPO t 4IPQPOMJOFXJUIZPVS7JSUVBM$BSE t .PSFPOMJOFSFXBSETUIBOFWFSCFGPSF t 4IPQJOTUPSFXJUIZPVS1MBTUJD$BSE t *OEVTUSZmSTUHMPCBMJOTUPSFSFXBSETPMVUJPO J1IPOF 8JOEPXT.BD t .VMUJQSPHSBNXBMMFU t (MPCBMQMBTUJDDBSEEJTUSJCVUJPOTFSWJDF t DMJDLQBZNFOUQSPDFTT t 3JDITFHNFOUBUJPODBQBCJMJUJFT t "DDFQUFEBUNJMMJPO1PJOUTPGTBMF t *ODSFBTFEQSPHSBNDVSSFODZSFMFWBODF t 0WFSXPSMEDVSSFODJFTTVQQPSUFE t 5SBOTBDUJPOEBTICPBSE t 4BGFSUIBOZPVSUSBEJUJPOBMXBMMFU t &BTZUPJOUFHSBUFXJUIZPVSQSPHSBN www.pointspay.com +PJO1PJOUT1BZ¥ 6 · DECEMBER 2012 AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET STEP INSPIRATION 2 Measuring the CONSIDER WHETHER A benefi ts of a COALITION SCHEME COULD loyalty scheme BE RIGHT FOR YOUR COMPANY Retailers must work hard to benefit from loyalty schemes, says Chris Jacobs, a loyalty consultant at Business Assyst. Loyal retail customers spend between 30 per cent and 50 per cent more each transaction than the average customer, vis- it a store three times more of- WORKING TOGETHER ten and spend four times as Caroline Papadatos of much each year. LoyaltyOne says the ability A loyalty scheme not only to share data is just one of the many benefits of rewards customers for being coalition loyalty schemes faithful but by identifying pur- PHOTO: SHUTTERSTOCK chasing patterns it allows a re- tailer to segment its customers and communicate with them in a more meaningful way. Choose to believe: Gathering valuable data Yet before launching a scheme, a retailer must know who its typical customers are, average three coalition myths spend and how frequently they visit.
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