A SPECIAL ADVERTISING FEATURE BY MEDIAPLANET LOYALTY & REWARDS SECRETS OF THE JET SET “Word Travels” co-host Julia Dimon shares her expertise as a seasoned travel rewards collector 4TIPS Spread the word Keep em’ coming FOR COLLECTING The research The science POINTS—AND behind consumer behind loyalty and MAKING THE MOST OF THEM opinion branding PHOTO: PRIVATE A FREE NIGHT HOW LONG DID IT TAKE YOU TO IS CLOSER THAN EARN YOUR LAST REWARD? YOU THINK. With over 6,500 locations, rewards are right around the corner. NO, REALLY. Really. Earn points for free nights, air travel, gift cards and more. Or, earn Aeroplan® Miles for award travel. Join for free at WyndhamRewards.com/Star Points or miles are earned for qualifying stays at participating properties. As of May 2011, Travelodge® hotels in Canada do not participate in Wyndham Rewards. © 2011 Travel Rewards, Inc. Visit wyndhamrewards.com for program Terms & Conditions and Privacy Policy. ®Aeroplan is a registered trademark of Aeroplan Canada Inc. 2 · JUNE 2011 A SPECIAL ADVERTISING FEATURE BY MEDIAPLANET CHALLENGES TIP 1 GIVE YOUR WE RECOMMEND REWARDS PROVIDER Rewarding FEEDBACK research Why consumers SO THEY CAN love to spread the SERVE YOU word—good and BETTER bad. PAGE 4 “Word-of-mouth is a powerful force, epsecially today when we have so many choices... We value what we hear from those we trust.” Treating you right p. 9 What should customers expect from their rewards company? Cut back on cards p. 10 How smartphones are ringing in the future of rewards collection. Who doesn’t love a perk? These days, it’s the norm for most retailers to award hard-earned points in exchange for hard-earned dollars. But are you really getting the most bang for your buck? Approach your points with a strategy to really reap your rewards. The top loyalty trends include the “Three C’s” anadians do love Other programs o er similar value. That trend is going to grow: ABI Re- LOYALTY & REWARDS loyalty programs. SCENE, a joint program by Scotia- search estimates that by 2015, pay- 1ST EDITION, JUNE 2011 The average Can- bank and Cineplex Entertainment, ments on smart phones and other Responsible for this issue: adian house- rewards members for using the Sco- mobile devices will account for $119 Publisher: Brendan Curran hold is active in tiabank VISA card at Cineplex movie billion in sales worldwide, and col- [email protected] Designer: Penelope Graham nine of them, in theaters. Capital One Canada and IHG lectors will use phones to scan for [email protected] fact. What’s new (InterContinental Hotels Group) have discounts and instant promotions. Contributors: Christopher Barnard, Roger Dooley, Kelly Hlavinka, Frances Ho, in 2011 is that activity goes far be- a co-branded credit card for earning In fact, Aeroplan has already taken Ted Kritsonis, Bryan Pearson, Andrew C Seale, Colloquy, yond Loyalty 101—simply collecting points on all purchases with redemp- steps in that direction, o ering a con- LoyaltyOne points from one retailer and re- tion options such as free hotel nights, densed mobile version of its website deeming them from the same com- frequent fl yer miles, and brand name with information about its current Managing Director: Gustav Aspegren Kelly Hlavinka [email protected] pany. store vouchers. Coalition programs Managing Partner, partners. Editorial Manager: Jackie McDermott COLLOQUY At COLLOQUY, we can see why col- are spreading to other parts of the [email protected] Business Developer: Shannae Ingleton lectors are so excited to participate world as this trend grows. Cause [email protected] in today’s programs, and those rea- Points will change the world. Sobeys Photo Credit: All images are from sons correspond with three trends Community “Programs band gives customers in Ontario the op- iStock.com unless otherwise accredited. in the loyalty fi eld. We call them Social networking gives shoppers portunity to donate points to lo- together to Distributed within: the 3C’s: Coalition, Community and more power. There has been a revolu- cal charitable organizations such as Toronto Star, June 2011 Cause. tion in the last three years in online offer more value. Boys and Girls Clubs of Canada and This section was created by Mediaplanet and did not involve the Toronto Star or its interaction, and we’re just starting to Companies are Daily Bread Food Bank, with those Editorial Departments. Coalition see its impact on loyalty. Social media charities able to redeem the points Programs band together to o er more and mobile phones are not only mak- forming more for food purchases or gift cards. Aero- value. Companies are forming more ing loyalty program interactions partnerships for plan’s Beyond Miles Program lets partnerships for joint reward sinitia- more convenient, but they’re giv- members donate miles toward the tives. For members, that means col- ing “air time” to consumers-turned- joint reward travel costs of seven Canadian non- lecting points faster and cashing in brand-advocates. profi t organizations. FOLLOW US ON FACEBOOK AND initiatives. For TWITTER! on a wider variety of rewards. The website “My Starbucks Idea” Consumers are demanding more www.facebook.com/MediaplanetCA In Canada, AIR MILES and Aero- provides a forum for people to post members, that of these kinds of “collaborative con- www.twitter.com/MediaplanetCA plan dominate the loyalty landscape. ideas about new products, locations, sumption” partnerships, coming means collecting Mediaplanet’s business is to create new With over a hundred company “spon- and better ways to run the loyalty together for social causes on a scale customers for our advertisers by providing sors,” or partnering companies, AIR program—with over 7,900 ideas post- points faster and that makes them truly infl uential, readers with high-quality content that motivates them to act. MILES lets members collect points ed about the Starbucks Card alone. cashing in on a and companies are paying attention. into one account for everything from Companies are listening: The online Shoppers are driving these trends shopping at Amazon.ca and buying AIR MILES Community solicits feed- wider variety of by asking for loyalty programs to of- gas at Shell to staying at the Crowne back about sponsors and tips about rewards.” fer more value, and become more per- Plaza, using an AIR MILES credit card, earning rewards, and even offers sonal. When companies respond as and even selling a home through members rewards and recognition those in Canada have, it’s no wonder DON’T MISS! Century 21. for doing so. membership is booming. Point for point The emergence of “cause” loyalty Be mindful of expiry Only nine percent of mem- Our favorite stores seem to program saw a seven-fold increase Safeway stores. 1 bers know the expiration know exactly what we want, in participation at a third of the cost Health, recycling and green in- dates for all of their loyalty pro- and how to keep us coming versus the previous year. The pro- itiatives make the world a better grams. Check all of your program’s back for points, coupons or gram was so successful that AIR place, but small accomplishments expiry policies, and take action to other incentives. MILES for Social Change is currently like fl ossing and brushing every prevent expiration. working with public sector and not- day make you a better person. A few emerging loyalty programs for-profi t organizations across the DailyFeats.com was formed to sup- Roll with the punches are taking that relationship a very country implementing programs to port and reward everyday initia- Redemption goals are import- meaningful step further. They synch advance social change. tives like drinking orange juice or 2 ant, but maintain some fl ex- not just with our shopping prefer- reading to a child, for which mem- ibility with what you’ll redeem for ences but total lifestyle, encour- Trash to treasured rewards bers earn points for coupons to res- and keep an eye on deals and pro- aging involvement in social change, RecycleBank picks up recycling for taurants and stores in the U.S. and motions to ensure you don’t miss wellness or the environment. This customers in the U.S. and Canada, Canada. out on an amazing gets to the core of someone’s belief then weighs the trash and awards With WellQ, a program operated Today, loyalty isn’t just about alternative. system, and it’s a powerful thing points to the collector’s account. by LoyaltyOne, someone with dia- shopping; it’s about causes we all when grocery, pharmacy, airline Points are redeemable for coupons betes or arthritis not only earns believe in and want to support. Weigh your options and other transactions in daily life for specific products and stores. points for fi lling her prescriptions Finally, we can earn rewards for Before redeeming, consider all support what we value most. Members can also track their en- at a participating pharmacy, but doing something that helps us and 3 status levels. Moving up a For example, AIR MILES recently vironmental footprints on the Re- also for purchasing healthy foods the planet become healthier and level may provide access to perks launched a new social venture called cycleBank website. and signing up for support pro- happier. more rewarding than redeeming AIR MILES for Social Change, which Wellness is a growing loyalty fi eld, grams to help manage her condi- like more earning power or access to tested an energy conservation pro- with programs like Virgin Health- tion. In the American test program, lounges. gram with the Ontario Power Au- Miles partnering with compan- patients were 13 percent more like- thority.