PRESENTATION:Gamifying Retail Loyalty Strategieswith America’s #1 Book Retailer MARC PARRISH VP of Customer Retention and Loyalty Marketing
Gamifying Your Retail Loyalty Strategies Marc Parrish VP, Customer Retention & Loyalty Marketing, Barnes & Noble
Retail Brands crave loyalty.It means that marketing dollars can be spent more effectively on a convinced audience. News Search Source: Google Insights
But most Retailers cannot pivot easily…… they think little about loyalty and believe it will naturally occur. Also, ads to acquire new customers are sexier.
But technically, customers evolved quickly. So must retailers. Email & Direct Marketing 1995 2000 2005 2013 Individualization Customization Segmentation From Inbox to Clutterbox.Spray & Pray 12 hours in my digital life … and these are brands I want to relate to!
The Goal of Loyalty Marketing is always white glove service….
But one hat does not fit all Customers How Often Do You Shop? Once a Once a Unique Once a Year Several Times month or week or Yearly Cust. or Less a Year more more (M) Store CountWalmart 7% 19% 36% 38% 132 3,300Target 23% 37% 30% 11% 100 1,800Warehouse store (e.g., Costco, Sams or BJs) 25% 31% 35% 9% 75 1,000Amazon.com 23% 41% 27% 9% 87Best Buy 47% 41% 10% 2% 70 1,300Office supply store (e.g, Staples or Office Depot) 36% 47% 15% 2% 82 4,200 Wedges Low Frequency Bells Moderate Frequency Direct Competitors High Frequency50% 50% 50%40% 40% 40%30% 30% 30%20% 20% 20%10% 10% 10% 0% 0% 0% Once a Several Once a Once a Once a Several Once a Once a Once a Several Once a Once a Year or Times a month week or Year or Times a month week or Year or Times a month or week or Less Year or more more Less Year or more more Less Year more more
To bring your shoppers back,customer friendly machinery is required.
So all Retailers have loyalty programs. But after decades, who listens? • In 2009* – 1.807 billion: loyalty program memberships in US • Up 25% from 2006 – 14.1: average memberships per US household – 56%: percent of memberships that are inactive • No engagement within a 12-month period – 6.2: active programs per household – 80%: percent of consumers with at least one loyalty card * 2009 Colloquy Report
CC Program Point / Money Back ProgramPaid Program Free Program
Something has to be done.That something is gamification.
How retailers see “Gamification” shouldI’m a Gamer! I’m a retailer!• I can’t wait for the next • How can I use gaming great gaming experience! to make my products & services more• Mobile engaging?• Casual• Hard Core Scary
Because Retail has already been gamified. Retailers just didn’t lead the way.
Starbucks went out front.Mobile gamification tied to Retail Strores. From January 2011 beta to today, Starbucks is now the largest mobile payments company, with 8,000 outlets.Starbucks cards now account for 22% of all transactions