Kobie Quarterly Magazine: Travel Edition, November 2013

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Airlines, with the hotel industry close on their heels, pioneered the modern loyalty program, so it’s fitting that both have been the focus of recent news. Airline, travel and hospitality rewards programs, like much of the loyalty industry, find themselves at a critical junction. With two Deloitte reports – one on airline loyalty and the other on hotels – indicating lackluster engagement, brand fickleness and mounting consumer frustration, it’s as if the airline, travel and hospitality industries have been given a challenge. How do they re-invigorate customer engagement and long-term loyalty?

Encouragingly, brands within these sectors – along with third-party loyalty program providers – are meeting these challenges head-on. Rather than feed the perception of themselves as verticals forever dialing back rewards or making higher tiers more difficult to reach, the airline, travel and hospitality industries are re-writing that narrative. Through their efforts, brands are discovering:

• The evolving importance of Big Data and coalition loyalty programs. How can airline and hotel partnerships embrace omnichannel tenets that offer more personalized experiences? Big Data analysis is also being used to help airlines cut costs by finding minute inefficiencies. Once corrected, savings can be used to augment new loyalty initiatives.

• The need for airlines (and hotels) to adopt a tiered, omnichannel loyalty strategy that combines tangible and status-based rewards and allows them to be transferred between programs. American Airlines and its AAdvantage frequent-flyer program is an excellent example of this. The program lets members redeem their miles with most of its partners as well as give miles as gifts or to charity. They also have the ability to bid on exclusive VIP experiences such as plush outings to high-profile sporting events, awards shows and more.

• The re-popularization of SoLoMo (social, local, mobile) – especially as it relates to hotel guest engagement. To loyalty marketers who thought they knew what SoLoMo stood for: think again. Spelled out as Social, Local, Mobile, too often the ‘Lo’ in SoLoMo is thought of as a strictly location-based initiative. But thinking in those narrow terms fails to consider a vital and valuable subset of hotel guests: locals.

These trends – and additional insights – are what the Kobie Quarterly Review: Airline, Travel and Hospitality edition is all about. We hope the Kobie Quarterly Review: Airline, Travel and Hospitality Edition broadens your appreciation for what loyalty programs entail and the genuineness they seek to deliver. Airline and hotel loyalty programs may have encountered some customer engagement difficulties of late. But thanks to its long and robust history, no industry is better equipped to confront and rise above these challenges.

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Kobie Quarterly Magazine: Travel Edition, November 2013

  1. 1. KOBIE QUARTERLY REVIEW NOV 2013 TRAVEL EDITION 9 Spotlight Three Things Airline Loyalty Programs Should Be Doing Right Now By David Andreadakis 17 Why Personalized Experiences Are Key to Airline Loyalty By Bram Hechtkopf on.fb.me/17n5zxV @Kobie_Marketing linkedin.com/company/kobie-marketing kobie.com
  2. 2. CONTENTS 4 5 7 9 TURNING THE TABLES ON AIRLINE LOYALTY TURBULENCE: HOW BIG DATA AND OMNICHANNEL LOYALTY CAN HELP You don’t have to be a frequent flyer, a cabin crew member or loyalty provider to know that the airline loyalty industry has faced some serious turbulence of late. But there’s also some good news – especially as it relates to Big Data metrics, analytics and omnichannel loyalty tactics. WHAT AIRLINES AND HOTELS CAN LEARN FROM STARBUCKS’, COCA-COLA’S AND SEPHORA’S APPROACH TO SOLOMO SoLoMo, or social, local, mobile, is a term that’s back in the news and once again gaining prominence. Like retailers, travel and hospitality brands are no strangers to attracting and retaining customers in innovative ways. But there are clearly some lessons to be learned from particularly successful brands doing SoLoMo well. THREE THINGS AIRLINE LOYALTY PROGRAMS SHOULD BE DOING RIGHT NOW There’s no denying airlines have weathered a challenging several months – not for their bottom lines so much as in traveler perceptions. Here are three recommendations to help improve the relationships airlines have worked so hard to build. www.kobie.com
  3. 3. 11 12 14 17 21 A NEW AIRLINE LOYALTY PROGRAM THAT PUTS B2B FRONT AND CENTER Little by little, brands are realizing the importance of business-focused loyalty programs, and now airlines are jumping on board too. The MileagePlus Small Business Network allows businesses to earn reward miles for products they normally buy. AIRLINES AND HOTELS: TIERED OMNICHANNEL LOYALTY DONE RIGHT What does tiered omnichannel loyalty look like and which airline and hotel brands are doing it well? How can such loyalty-challenged industries learn from their mistakes and drive loyalty and ROI? Is American Airlines AAdvantage Program the model others should emulate? HOTEL LOYALTY REBIRTH: FIVE THINGS YOUR LOYALTY PROGRAM SHOULD BE DOING NOW What can hotel loyalty program managers do to make their brands more appealing? Here are five recommendations to help hotels get maximum engagement and ROI from their loyalty programs. WHAT’S UP WITH AIRLINE LOYALTY? For the most part, the airline industry gets a bad rap. Reporters and travelers alike long for the days of attentive and personalized service yet lament the loss of perks that were previously included in the fare. Encouragingly, a “loyalty fix” is within reach, coming down to airlines’ better use and understanding of omnichannel loyalty. WHY PERSONALIZED EXPERIENCES ARE KEY TO AIRLINE LOYALTY It’s no secret that for airlines, the most valued fliers are those who accumulate the most miles flown per year, spend the most on tickets and make generous use of their ancillary services – on or off the plane. That’s why the notion of “personalization” has become so important. Only by giving passengers incentives that speak to their needs delivered on preferred channels will the loyalty experience be satisfying enough to drive long-term engagement. HOW HOTELS CAN IMPROVE GUEST LOYALTY THROUGH SOLOMO MARKETING AND A LOCALS-FIRST FOCUS To loyalty marketers who thought they knew what SoLoMo stood for: think again. Too often, SoLoMo is thought of as a strictly location-based initiative. But thinking in those narrow terms fails to consider a vital subset of hotel guests: locals. www.kobie.com 2
  4. 4. FROM OUR PRESIDENT Airlines, with the hotel industry close on their heels, pioneered the modern loyalty program, so it’s fitting that both have been the focus of recent news. Airline, travel and hospitality rewards programs, like much of the loyalty industry, find themselves at a critical junction. With two Deloitte reports – one on airline loyalty and the other on hotels – indicating lackluster engagement, brand fickleness and mounting consumer frustration, it’s as if the airline, travel and hospitality industries have been given a challenge. How do they re-invigorate customer engagement and long-term loyalty? Encouragingly, brands within these sectors – along with third-party loyalty program providers – are meeting these challenges head-on. Rather than feed the perception of themselves as verticals forever dialing back rewards or making higher tiers more difficult to reach, the airline, travel and hospitality industries are re-writing that narrative. Through their efforts, brands are discovering: • The evolving importance of Big Data and coalition loyalty programs. How can airline and hotel partnerships embrace omnichannel tenets that offer more personalized experiences? Big Data analysis is also being used to help airlines cut costs by finding minute inefficiencies. Once corrected, savings can be used to augment new loyalty initiatives. • The need for airlines (and hotels) to adopt a tiered, omnichannel loyalty strategy that combines tangible and status-based rewards and allows them to be transferred between programs. American Airlines and its AAdvantage frequent-flyer program is an excellent example of this. The program lets members redeem their miles with most of its partners as well as give miles as gifts or to charity. They also have the ability to bid on exclusive VIP experiences such as plush outings to high-profile sporting events, awards shows and more. • The re-popularization of SoLoMo (social, local, mobile) – especially as it relates to hotel guest engagement. To loyalty marketers who thought they knew what SoLoMo stood for: think again. Spelled out as Social, Local, Mobile, too often the ‘Lo’ in SoLoMo is thought of as a strictly location-based initiative. But thinking in those narrow terms fails to consider a vital and valuable subset of hotel guests: locals. These trends – and additional insights – are what the Kobie Quarterly Review: Airline, Travel and Hospitality edition is all about. We hope the Kobie Quarterly Review: Airline, Travel and Hospitality Edition broadens your appreciation for what loyalty programs entail and the genuineness they seek to deliver. Airline and hotel loyalty programs may have encountered some customer engagement difficulties of late. But thanks to its long and robust history, no industry is better equipped to confront and rise above these challenges. Michael Hemsey, President Kobie Marketing www.kobie.com 3
  5. 5. TURNING THE TABLES ON AIRLINE LOYALTY TURBULENCE: HOW BIG DATA AND OMNICHANNEL LOYALTY CAN HELP By Bram Hechtkopf You don’t have to be a frequent flyer, a cabin from Delta) – especially as it relates to Big crew member or loyalty provider to know Data metrics, analytics and omnichannel that the airline loyalty industry has faced loyalty tactics. some serious turbulence of late. Here’s one example: Alaskan Airlines landed First there was the American-US a glowingly positive review in the New York Airways merger that’s raised fundamental Times. Compared to other carriers, Alaskan questions over how the two vastly different Airlines has expanded mostly without corporate cultures will combine, along with mergers and was profitable for 33 out of the their respective philosophies, in terms of last 39 years, achieving a record $316 customer reward programs. Then there million in net income last year. is Delta with a major announcement that its 32-year-old Sky Miles rewards program will Part of that success came in the form of be linked to additional passenger spend and strict cost savings. Not through tinkering with pegged to ticket price costs – a new its Mileage Plan™ loyalty program, mind you passenger hoop designed to better manage two-thirds of Alaska’s 730,000 residents are (read: limit) the number of travelers who members of the program – which includes reach elite status, thus, reducing airline discounted tickets – but by using Big Data to costs. their advantage. When Kobie talks about loyalty programs engendering genuine customer relationships that inspire experience-driven outcomes, returning customers and improved ROI, somehow this is not what we envision. And unfortunately, there’s growing public skepticism that airlines are only loyal to one thing: profits. Thankfully, in airspace littered with troubling news, there’s also some good news (even 5 By tracking a wealth of minutiae, such as the time it takes pilots to begin taxiing, the airline discovered that cutting just one minute of taxiing time per aircraft saves $25 to $30 million. Now that’s what I call turning data into action. Revenue like that gives airlines more room to continue supporting their loyalty initiatives. That’s true even when faced, as Delta was, with rising loyalty program popularity that threatened to undermine Sky Miles’ profitability if something wasn’t done.
  6. 6. “Sharing rewards between hotels and airlines is a great way to maximize benefits, streamline point accrual and drive loyalty simply by adding transparency to the process.” Smoother Skies Ahead? Of course, Sky Miles’ changes aren’t all that’s happening with Delta. The airline recently announced a joint loyalty program, called Crossover Rewards, with Starwood hotels. Sharing rewards between hotels and airlines is a great way to maximize benefits, streamline point accrual and drive loyalty simply by adding transparency to the process. The move follows the popularity of similar coalition programs like Air Miles in the UK and Canada and is also inspired by loyalty program partnerships between grocery stores and gas stations. In the latter example, a topic we’ve written about in a recent blog, Five Things Your Retail Customers Expect This Year, shoppers earn points toward discounted fuel based on the amount they buy. Since food and fuel are necessities, the programs’ symbiotic nature is encouraged. deluge and a fear of “loyalty cannibalism” – where one company operates more parasitically than symbiotically – considering its success elsewhere, Delta shouldn’t be the only pioneer. Sky-High Pioneers Speaking of pioneers from a pioneering state, I really hope Alaska Airlines will be similarly inspired by Delta’s doings. Regardless, both carriers, in separate ways, have advanced the airline/FFP conversation, demonstrating that the tables can be turned on frequent flyer program turbulence. Whether Alaska Airlines’ revenue success can be emulated by other carriers (augmented by Big Data analysis) remains to be seen. Likewise, it’s anyone’s guess if Delta’s revamped Sky Miles program will ultimately hit its stride. But one thing is certain. Only through the most detailed, granular analysis of their program successes and failures will this information be discerned. For many, how people fly and where they stay is equally linked. While I applaud Delta for its actions in this regard, I’m surprised airline-hospitality partnerships aren’t more common. As we discuss omnichannel loyalty, an enterprise-level initiative to drive, track, measure and reward incremental behavior throughout the customer experience, going “omni” might also include omni-partnerships. In this advanced scenario, interdepartmental data will be de-siloed as will customer behaviors shared across verticals, improving loyalty management. While crossover loyalty programs are fraught with security risks, data GET AMPED! A revolutionary new loyalty marketing platform is coming. Find out more info@kobie.com 6
  7. 7. “In perhaps one of the greatest realizations of the phrase ‘everything old is new again,’ SoLoMo, or social, local, mobile, is a term that’s back in the news and once again gaining prominence.” WHAT AIRLINES AND HOTELS CAN LEARN FROM STARBUCKS’, COCA-COLA’S AND SEPHORA’S APPROACH TO SOLOMO By Bram Hechtkopf In perhaps one of the greatest realizations of the phrase “everything old is new again,” SoLoMo, or social, local, mobile, is a term that’s back in the news and once again gaining prominence. smartphones into mobile wallets, one links to Starbucks’ rewards program, My Starbucks Rewards™, and the other partners with the mobile payment company Square. Using the second app, for instance, customers can find a nearby Starbucks Like retailers, travel and hospitality brands are no as well as other area retailers that accept Square strangers to attracting and retaining customers in payments and offer additional deals and innovative ways. But there are clearly some lessons discounts. A popular SoLoMo example comes from to be learned from particularly successful brands China. In 2011, Starbucks offered a free drink to doing SoLoMo well, like Starbucks, Coca-Cola and everyone who checked in to specific store locations, Sephora: which culminated in more than 20,000 weekly check-ins. This wasn’t a Groupon-like daily deal; it Starbucks was a fun, social and collective experience where Starbucks pioneered the SoLoMo movement back “team unity” built brand awareness and long term in 2011 and today offers two apps for different loyalty – and continues to do so. customer segments. While both apps turn users’ 7
  8. 8. Coca-Cola Coca-Cola’s “The Coke Machine Fairy” also stands out as a great SoLoMo example. Launched in Sydney, Australia in September 2012, the two-week campaign distributed prize-winning Coke cans in vending machines throughout the city. Prizes included a $300 voucher, flight tickets, a helicopter ride and others. The goal: to generate brand excitement and gamify the search-for-rewards process. Participants signed in to locationbased social network Foursquare, then friended and followed The Coke Machine Fairy to find the nearest vending machine. Additional tips narrowed the search. The Coke Machine Fairy earned more than one thousand friends on Foursquare in 14 days and helped hidden vending machines find new life. Sephora Sephora, the French cosmetics chain, might be doing SoLoMo best. The brand has a Facebook page, a Twitter feed and a YouTube Channel, also engaging shoppers through its Beauty Talk community and helping them share in-store experiences through Instagram. Users share products and ideas on the brand’s Pinterest page while the “Sephora to Go” app provides real-time GPS mapping to store locations and in-store information. With some 2 million downloads and a 300% mobile sales increase in 2011, Sephora knows that engaging users via social media must occur across multiple channels. It also knows that tablets are not oversized smartphones. That means the successful use of its “virtual mirror,” where users can follow how-to makeup tutorials while seeing their own image on screen. Flying SoLo(Mo?): Travel and Hospitality Lessons Learned So, after reviewing the above examples, what’s the common thread? What does SoLoMo do well regardless of vertical? In each instance, the SoLoMo campaigns were fun, engaging, timely and useful. They all generated genuine excitement, conversation and loyalty. They also: • Sought engagement across age, gender and socio-economic brackets: The lesson? Smartphones and gamified approaches to collective enjoyment aren’t limited to teens and 20-somethings. Many travelers are older but no less interested by these loyalty-generating tactics. • Two of the three examples employed SoLoMo strategies in narrow windows: Airlines and hotels should remember to keep their SoLoMo experiments limited in duration, but frequent in updates – especially when campaigns’ gaming aspects figure prominently. Such diversity will help keep consumers engaged and their wallets open. • Sephora’s efforts downplay gaming but promote the need for an omnichannel approach. SoLoMo may be a threepart abbreviation, but hotels and airlines must continuously be reaching out to their customers on the channels they prefer with an engagement style, email, SMS and/or push notification that speaks to them best. “The point is that SoLoMo can be an engagement method easily adapted to many verticals and airline, travel and hospitality brands are re-discovering its marketing and brand loyalty potential.” With the above examples in mind, consider these hypothetical scenarios. In light of the tightening mobile booking window, imagine a Coca-Cola-like scavenger hunt that incentivizes guests’ hotel stays – especially in chains with multiple locations per city. Instead of “lucky” soda cans, guests are awarded “lucky” room numbers. Airlines, too, might employ additional social media. Or envision a campaign wherein smart digital airport signage connects to consumers’ mobile phones, sending timely and relevant travel information as well as offers related to future trips and allowing travelers to share this knowledge instantly with friends and family via Facebook and Twitter integration. The point is that SoLoMo can be an engagement method easily adapted to many verticals and airline, travel and hospitality brands are re-discovering its marketing and brand loyalty potential. So is everything old new again? You’d better believe it. 8
  9. 9. THREE THINGS AIRLINE LOYALTY PROGRAMS SHOULD BE DOING RIGHT NOW Quick Tip: Don’t wait for the findings on a macro airline study to gauge your airline’s loyalty success. By David Andreadakis There’s no denying airlines have weathered a challenging several months – not for their bottom lines so much as in traveler perceptions. Earlier this year Delta Air Lines ended its policy of allowing SkyMiles members to pass on unused points to relatives after their death. The merger of American Airlines and US Airways has raised concerns that loyalty program perks won’t be honored in the same way as before (read: more rule changes). And, according to the 2013 Temkin Experience Ratings, the airline industry’s overall score on customer satisfaction landed it right on the border between “OK” and “poor.” Then there were the furloughs the Federal Aviation Administration implemented as part of government spending cuts known as sequestration. While shortlived, reduced staffing caused longer lines at airports, unnecessary delays and overall traveler frustration – not to mention a lingering fear that such snags represent the “new normal.” But enough with negativity. Airlines pioneered the frequent flyer program more than 30 years ago and today they net billions in revenue. As a result, these loyalty programs rank very high on an airline’s priority list. So how can airlines leverage this priority to ward off customer angst? 9 Here are three recommendations to help improve the relationships airlines have worked so hard to build: • • Be Transparent: Airlines must spell out how their loyalty programs work. What are the rules? How, where and when can accrued mileage be used? And if there is a rule change – even one that raises the points-for-miles threshold – don’t use crafty language that calls something a traveler benefit (like narrower seats yielding more leg room) when it’s not. Passengers aren’t stupid and they’ll read right through such efforts. Be Engaging But Be Simple: A recent study by Dr Andreas Liebrich of Lucerne University of Applied Sciences and Arts found that an airline’s website layout is critical in driving loyalty. Mobile apps and mobile web pages shouldn’t be ignored either as smartphones and tablets are the centerpieces of SoLoMo – social, local, mobile – initiatives. The same goes with rewards technology. Virgin Australia recently announced the launch of a new prepaid contactless payment credit card, partnering with American Express. Contactless payments streamline payment processes and continue to test the waters of the still-nascent mobile wallet era. By making this an opt-in experience, the airline leaves loyalty program control in members’ hands. • Measure, Manage, Mitigate: Don’t wait for the findings on some macro airline study to gauge your airline’s loyalty success. Customer relationship management software and loyalty program data work better when they’re operating under one desiloed roof.
  10. 10. “The goal is to measure how well your airline loyalty program is working. That means asking how many members are actively engaged and discovering what their travel experience is truly like.” The goal here is to measure how well your airline loyalty program is working. That means asking how many members are actively engaged and discovering what their travel experience is truly like. Raising these questions across an omnichannel loyalty framework is critical if an airline is to best manage the results and mitigate any downstream errors. So airlines, the time for action is now. Some 9.7 trillion frequent flyer miles go unredeemed every year. While airline loyalty programs remain successful, the 9.7 trillion-mile sieve needs to be plugged and traveler perceptions require some serious improvement. developments and trends their programs must stay ahead of. With airlines facing criticism for being loyal to revenues first – and not their customers – it wasn’t surprising that much of the conversations centered on how airlines can go beyond the typical points-for-rewards paradigm and deliver engaging experiences to their passengers. The degree to which airlines have turned these words into actions is top priority in the months ahead. Earlier this year, I attended the Loyalty Innovation Show and Freddie Awards in Washington, DC with my colleague Bram Hechtkopf, Kobie’s VP of Business Development & Marketing. We met with airline loyalty execs to discuss the latest 10
  11. 11. A NEW AIRLINE LOYALTY PROGRAM THAT PUTS BUSINESS TO BUSINESS FRONT AND CENTER By Bram Hechtkopf Brands are slowly realizing the importance of business-focused loyalty programs, and now airlines are jumping on board too. United’s MileagePlus Small Business Network is the first US B2B travel loyalty program of its kind. program. Small Biz Rewards allows Verizon customer companies with fewer than 20 telephone lines to accumulate one point per dollar spent on a variety of Verizon service upgrades including Long Distance and/or High Speed Internet, FiOS and certain charges on their phone service. They can also earn points by participating in surveys and by shopping on the Small Biz Rewards online mall. Regardless of the vertical, loyalty programs that are geared towards businesses can help: • Improve communications and networking potential between brands Heighten internal company loyalty, which can in turn influence consumer brand allegiance Inspire new and innovative consumerfacing loyalty initiatives Reduce business expenses by incentivizing bulk purchase of goods and services • The MileagePlus Small Business Network allows businesses to earn reward miles for products • they normally buy. Thanks to partnerships with more than a dozen vendors including Dell, UPS, • Staples, Chase Paymentech, Canon, McAfee and the Apple Online Store, everything – from printing, shipping, credit card payment processing, office supplies and computing Whether business- or consumer-facing, loyalty in services – is covered. And, just like consumers, all its forms is about building genuine trust and companies can convert their earned miles into transparency and, ideally, reciprocal travel reward upgrades. relationships that rise to the level of moral obligation. That’s a tall order. But that’s why Even in our age of perpetual connectivity and loyalty programs require constant real-time instant communications, traveling to trade employee/customer feedback and adjustment. conferences and meeting with clients or new prospects is vital to any company. Anything that So congratulations to United Airlines on its new helps small businesses thrive is great for the business-focused loyalty program. Here’s to the American economy. introduction of more B2B programs that truly focus on the needs of enterprise and business – Small businesses, despite an improving a largely underserved segment. economy, continue to struggle and they’re looking for a leg up. A CNN survey found only 14% of small businesses plan to add more workers and two-thirds aren’t hiring at all. “Whether business- or Considering that small businesses employ over consumer-facing, loyalty in half of the US workforce and contribute up to all its forms is about building 50% of the nation’s GDP, there’s an opportunity here for big businesses to help smaller ones – genuine trust and and earn their loyalty in the process. Benefits of a Business Loyalty Program As some of my colleagues have written about on the Kobie blog, B2B customer rewards programs are often the unsung heroes of the loyalty landscape as they empower genuine professional relationships while reducing overhead. Dell and its efforts to prevent its own death spiral via a B2B loyalty program is a good example. Another great B2B loyalty example comes from Verizon and its “Small Biz Rewards” 11 transparency and, ideally, reciprocal relationships that rise to the level of moral obligation.”
  12. 12. AIRLINES AND HOTELS: TIERED OMNICHANNEL LOYALTY DONE RIGHT “Omnichannel loyalty is as much about consumers’ mindset as it is about delivering messages on member’s preferred channel of engagement.” By Bram Hechtkopf For the past 23 years, business scholars at Wichita State and Purdue universities have been analyzing the performance of US airlines based on metrics such as percentage of on-time arrivals, mishandled bags and consumer complaints about overselling, reservation issues and service to disabled passengers. However, even though frequent flyers are airlines’ highest-value customers, issues related to loyalty programs don’t have much of an impact in the Airline Quality Rating Report: they’re relegated to the “other” category on the list of 12 customer complaint types. That’s quite surprising, since airlines (and their travel industry partners, hotels) are among the companies that do loyalty best. And this is particularly true about tiered programs. program’s partners as well as give miles as gifts or to charity. They also have the ability to bid on exclusive VIP experiences such as plush outings to high-profile sporting events, star-studded awards shows and the like. memberships through multiple channels including mobile. It’s important to remember omnichannel loyalty is as much about consumers’ mindset as it is about delivering messages on member’s preferred channel of The program’s elite members also engagement. American, Delta, get plenty of special perks that United and many others have include: clearly taken this lesson to heart • Complimentary access to and put it into practice as a model for other airlines – as well as exclusive Preferred Seats Take, for example, the world’s other verticals – to follow. and Main Cabin Extra second-oldest frequent-flyer • Priority Access security program, American screening and boarding Airlines’ AAdvantage. AAdvantage • 100% mile bonuses for offers members an omnichannel Platinum and Platinum experience with a mix of tangible Executive members and status-based rewards. • Unlimited complimentary Members can earn miles by upgrades for Platinum booking on AA and the other Executive members members of the OneWorld Alliance as well as over 10 other Other great programs that offer partner airlines. They can also earn miles by booking hotel stays, these types of status-linked benefits include Delta’s SkyMiles rental cars, vacation packages and cruises with a wide variety of and United Airlines’ MileagePlus. partners and access bonus miles As I mentioned earlier, hotel chains such as IHG and Marriott through limited-time deals. International also have excellent tiered multichannel programs that All members of AAdvantage, which won Program of the Year in reward members not just with the Americas category at the 2013 points, but with memorable Freddie Awards, can also redeem experiences. And members can access and manage their their miles with most of the 12
  13. 13. WOULD YOU ASK A MECHANIC TO PERFORM OPEN HEART SURGERY? PUT YOUR PROGRAM BACK IN THE HANDS OF THE LOYALTY EXPERTS Kobie is the secret. Reach your customers at every touchpoint with omnichannel loyalty. Go to kobie.com to learn more.
  14. 14. HOTEL LOYALTY REBIRTH: FIVE THINGS YOUR LOYALTY PROGRAM SHOULD BE DOING NOW By Bram Hechtkopf While forecasters predict a rebound in the hospitality economy – albeit a slow one, because the vast majority of Americans still feel their economic situation is too precarious to safely absorb the expense of a vacation – this kind of uncertainty can cause hotel managers to cut back on loyalty programs and eliminate amenities like room service, as the New York Hilton Midtown did in August 2013 (it has since brought back limited room service). There is plenty of good news in the industry: • According to the latest American Express Spending and Saving Tracker report, summer travel plans were up 17% from last • • • year as two-thirds of consumers plan to get away. Eighty-one percent of affluent consumers were forecast to travel in 2013 (versus only 73% in 2012) and 38% of those polled said they will be traveling abroad. Nearly onethird, 31%, planned to spend $1,000 or more per person. That’s an increase of 4% from 2012. Analysts forecast stable fuel prices, settling to around $3.66 a gallon for regular. According to a Harris poll, 43% of Americans planned to travel this past summer no matter what the macroeconomic picture looked like. 14
  15. 15. “Increasingly, both business and leisure travelers seek genuine engagement and offerings beyond the points-forrewards model.” • • STR forecast that this past summer hotel occupancy rates would rise 1% compared to 2012, to 70%. ADR would increase 4.4% to $112.21 and revPAR would increase 5.4% amounting to $78.50. What do these mixed economic messages mean? Consumers will likely be more discerning when it comes to the hotel loyalty programs they choose. Increasingly, both business and leisure travelers seek genuine engagement and offerings beyond the points-for-rewards model. Deloitte’s recent study, “A Restoration in Loyalty” – which many in the industry saw as an indictment of their existing loyalty programs – underscores the need for hotel program rebirth. • 15 Hotel loyalty programs are a low priority for most travelers; nearly half of members’ annual spend is not with their preferred brand. Respondents said their grocery stores’ loyalty programs offered more value than their hotels’. Clearly the hospitality industry has some work to do – on many fronts. Five Tips for Giving Your Loyalty Program a Boost Taking the above statistics and findings into account, what can hotel loyalty program managers do to make the summer season a more successful one? Here are five of my recommendations to help hotels get maximum engagement and ROI from their loyalty programs: 1. Engage Guests on Multiple Channels The vast majority of customers, 86%, will pay more for a better experience. They’ll also be more likely to engage with a particular hotel brand if it’s easy to do so. Thus, today’s channel proliferation and high mobile device adoption rates make it easier than ever to attract, engage and retain guests. Potential guests can be engaged via a number of channels: smartphones, tablets, SMS, push notifications, digital signage, social media, phone calls, email, radio, TV and print advertisements and even oldfashioned letters and post cards. So, when hotels consider omnichannel loyalty they must include traditional channels. That’s because guests, while increasingly tech-savvy, still crave personal one-on-one connections. 2. Offer Genuine Experiences that Trump Rewards Fostering genuine, personalized experiences is critical. Too many travelers already feel that their hotel loyalty program is indistinguishable from competitors’. That’s an important reason why the Deloitte study found such high levels of consumer disengagement in the first place. Hotels must get creative, offering rewards like discounted or free day trip excursions, concert tickets, access to wine tastings, city nightlife, restaurants and retail opportunities.
  16. 16. Westin hotels, for example, has begun offering guests 3 p.m. Monday checkouts as part of its “Make Mondays Better” program – a simple but effective way to promote product differentiation. Status, too, plays an important role. Imagine if frequent guests had a vote on hotel program decisions, the way publicly-traded companies’ shareholders do. Such efforts would make frequent guests feel empowered because their voices would literally matter. business centers, conference rooms, etc. Airlines, the world’s largest lowcost carrier, to link Mlife with the carrier’s Rapid Rewards program. But loyalty programs and the Loyalty aggregation may be information they collect are often challenging but its time has more effective at discerning guest undoubtedly arrived. psychographic data: how do they wish to be engaged, which Moving to a Sunnier Loyalty channels do they prefer, what Outlook specifically makes them loyal and One final suggestion hospitality what experiences will help them brands should consider: become ambassadors who • Evaluate each of the promote a hotel brand long after their stay? The more data above five loyalty collected from various sources, upgrades through what I 3. Consider Multi-Tender the more accurate the picture of call the “5 Es,” which are: Options to Improve Flexibility individual guests’ preferences. Enterprise, Economics, Multi-tender loyalty is often Enablement, Execution neglected and rarely considered. Guest profiles can be thought of and Engagement. If your hotel loyalty program is as broader personal interest Enterprise speaks to the operating in an omnichannel snapshots, similar to Facebook business at hand (hotels in fashion, toggling between intrinsic homepages showing individuals’ this case) and making and extrinsic rewards, why likes and dislikes. Learning how to loyalty an enterprise-level shouldn’t it also give guests’ use a customer’s profile to initiative, economics program interactions maximum deduce likely preferences is really concerns the cost of flexibility? Multi-tender loyalty where the digital and mobile generating such loyalty, means expanding points future of hotel guest engagement enablement relates to the accumulation beyond a branded lies. mechanics and technology or co-branded credit card. For running the program, instance, hotels could consider 5. Combine Existing Loyalty execution refers to its realupgrading all on-property Programs with Others in time deployment and transactions to a points-accrual Related Verticals operational effectiveness model. Beyond paying for rooms, Aggregation is my final and engagement relates to guests spend money in multiple recommendation because it may the brand relationship locations and often make smaller be challenging to implement. The customers seek. transactions with cash. That hospitality industry is known for its includes tips for bellmen and valet aggressive brand pride. And the Of course, adopting the above parking, drinks at the bar and idea of sharing customers checklist and reviewing it through basic travel necessities, like between loyalty programs might the “5 Es” filter doesn’t guarantee toiletries and sunscreen, that cause C-level backlash. After all, a rosier hospitality forecast. As I guests sometimes forget to bring. the goal of a hotel’s loyalty wrote earlier, economic trends program is not to fill a continue to put a damper on 4. Merge CRM and Loyalty competitor’s pockets. But just as hospitality industry health and, Management Software for More guests use their smart mobile indirectly, to affect customer Granular Guest Insights devices for a host of functions, engagement as hotel managers Convergence of CRM and loyalty they want that same level of remain cautious. program databases is a topic I’ve seamlessness and one-stop discussed at length before. Until efficiency from their loyalty But with Deloitte’s study still fresh recently customer relationship programs. That’s why MGM in hoteliers’ minds, it’s imperative management software was resorts and Hyatt Hotels are hotels breathe new life into old excellent for collecting consumer embracing the risks associated loyalty programs. Making genuine metrics. In a hotel’s case that with loyalty aggregation. Their engagement and experiences a includes: new partnership (announced in priority can help hotel brands • Number of visits per year June) links the Mlife Tier Credits ensure their guests go home with • Total number of stays and Hyatt Gold Passport positive memories that linger for • Average duration of stay programs, allowing members to life. • Reason for trip earn and burn points toward stays • Typical amount spent onat both chains. MGM Resorts is property at restaurants, also partnering with Southwest 16
  17. 17. WHAT’S UP WITH AIRLINE LOYALTY? “There are simply too many miles chasing too few seats, a challenge affecting many airlines and their loyalty program members.” By Bram Hechtkopf For the most part, the airline industry gets a bad rap. Reporters and travelers alike long for the days of attentive and personalized service and lament the loss of perks previously included in the fare. Increasingly, airlines are coming under fire for the significant changes being made to their loyalty programs. Though some changes such as earning miles on partner airlines, converting hotel stays into airline miles and access to more lounges are good, others, like higher award ticket fees, minimum annual spending requirements and disappearing bonuses have caused members genuine distress. Other changes are a little of both: last summer Virgin America added “gold” and “silver” tiers to its Elevate frequent flier program. Of course new tiers mean new status, but as my colleague David Andreadakis has pointed out, such changes can make existing members feel less important. And changes like these, as evidenced in the dissatisfaction with reward earned air miles on a preferred redemptions by frequent flyers airline. have led to an even more fractured airline loyalty landscape. Delta’s challenges, as I see it, aren’t surprising. Ever since its According to a recent Frequent 2008 merger with Northwest Business Traveler and Airlines, the airline has struggled FlyerTalk survey, Delta’s SkyMiles and Air Canada’s Aeroplan ranked with loyalty program currency devaluation – which is bound to at the bottom of the satisfaction drive customer satisfaction levels list. Both loyalty programs face dissatisfaction rates as high as down. There are simply too many 67% and 68%, respectively. miles chasing too few seats, a Meanwhile the latest Deloitte challenge affecting many airlines study finds airline brand loyalty and their loyalty program “dangerously low” with fewer than half of all travelers, 44%, flying at members. least three quarters of their WHY PERSONALIZED EXPERIENCES ARE KEY TO AIRLINE LOYALTY By Bram Hechtkopf It’s no secret that for airlines, the most valued fliers are those who accumulate the most miles flown per year, spend the most on tickets and make generous use of 17 their ancillary services – on or off the plane. Call them an airline’s cash cows: losing their loyalty could negatively impact profits at a time when other industry variables like fluctuating fuel costs, low cost carrier competition and mergers threaten to create additional turbulence.  Con$nued  on  page  19
  18. 18. Continued from previous page top Endomondo, recently launched a new program called “Keep Fit with BalticMiles,” Contrast Delta with American Airlines, which rewards members with points based though, and a different picture emerges. on their physical activity. During the month Loyalty program rewards and traveler of August 2013, members received virtual perks (like seat upgrades) aren’t as easy to lottery tickets for every 1,000 calories they obtain and their perceived value burned where, at the conclusion of the therefore increases. competition, 10 winners would be awarded 10,000 BalticMiles points, good enough for An Airline Fix: Omnichannel Loyalty several free flights with airBaltic. Encouragingly, a ‘loyalty fix’ is within reach, coming down to airlines’ better using and understanding omnichannel loyalty. For airlines, mobile is an increasingly important communications medium due to its ability to link easily with other channels and do so anywhere. In other words, communication channels are converging and mobile is that conduit. While airlines still need to do a better job integrating mobile as part of their passengers’ loyalty experience, encouraging changes are beginning to unfold: airlines are moving beyond mobile flight booking and status update capabilities and adding more “mobile 2.0” features. This is especially true inside the cabin. More airlines are equipping flight attendants with tablets that can access passenger profiles. These actions are helping flight attendants create more accurate pictures of what passengers might want to purchase even before they board the plane. They’re also enabling loyalty program managers to understand the types of incentives or program perks that best speak to their passengers’ personalized needs. Something as simple as an airline communicating seat upgrade lists to passengers via a native app or by SMS is a major improvement. Fuelling For Takeoff Convergence, however, isn’t just channelfocused or about coalition, multi-partner loyalty programs. It’s a larger phenomenon unfolding across all walks of life. That’s why, in addition to omnichannel loyalty and improved mobile capabilities, coalition or multi-partner programs like Delta and Starwood’s Crossover Rewards program (where a member’s hotel and airline points are shared) are where the future of loyalty lies for many travel, airline and hotel brands alike. My advice to airlines and their loyalty programs is simple: remember that consumers are smart and when they see a smart message they’ll likely want to engage it. So whether we’re talking about coalition programs, seat upgrades or the emerging trend of personalized pricing, relevant offerings combined with a seamless customer rewards program will remain a vital component to keeping passengers happy and brand-engaged. It also helps if airlines and their affiliated loyalty programs get downright creative. Back in April, American Airlines tweaked its Elite Rewards program, giving members incentives and special rewards as they progressed between tiers – a move that inspired loyalty as it became easier to utilize points. Even more creative incentives have stemmed from BalticMiles. BalticMiles, a multi-partner loyalty program in Northern and Eastern Europe and Russia, owned by Latvia-based Air Baltic Corporation in partnership with 18
  19. 19. Continued from page 17 bottom That’s why the notion of “personalization” has become so important. Only by giving passengers timely and relevant incentives that speak to their needs delivered on the channels they prefer, will the loyalty experience be satisfying enough to drive long-term engagement. the breadth of experiences out there. But excessive tiering can have drawbacks, too. Many perks are too exclusive and others may feel left out. Which brings me to my final point… Considering how web-enabled and reliant on connectivity passengers and elite travelers That’s why the airline loyalty have become, it makes sense to experience works best if customer broaden creative and exclusive rewards program exclusivity is content offerings via reliable, lowpaired with creativity. cost high speed WiFi. Thus, it will be interesting to see how Virgin Encouragingly, such creativity was America’s partnership with GoGo, And one of the best ways airlines displayed in abundance at the an inflight connectivity provider drive loyalty is by wedding recent Future Travel works out. elements of personalization into Experience convention in Las ultra-exclusive tier structures. Vegas. Allegiant Air, for instance, GoGo is promising to deliver the These are tiers barely publicized is experimenting with expanding first high speed in-cabin Internet on airline’s website and whose its in-flight inventory to include access at 60Mbps called GTO, to membership requirements are cowboy hats on trips to Texas. help airlines personalize new purposely kept undisclosed in an Qantas, meanwhile, is working offers, whether their passengers effort to build mystery, excitement hard to learn everything about its are elite fliers or just your average and a feeling of “I want in”. passengers’ right down to the Jane or Joe. names of pets. Case in point: United Airlines and Whether it’s through in-flight WiFi its ultra-elite Global Services Other airlines are going ever or something entirely different – program, an invitation-only service further: it’s clear personalized offers are • Brazil’s TAM Airlines’ available to travelers who fly key to continued airline loyalty. hundreds of thousands of miles “Commandant Kid” per year. What does program where children personalization look like at this help flight attendants “Only by giving level? A recent Wall Street Journal wheel carts down aisles article offers a compelling to help keep them passengers timely and glimpse: occupied. relevant incentives • Travel between connecting • Flight attendants on Air that speak to their flights in luxury cars; bags New Zealand read already stowed bedtime stories, while needs delivered on the • More than 400 airline Emirates has recently channels they prefer, employees across 60 launched a squadron of will the loyalty airports tracking Global “flying nannies.” • Japan Air Lines is Service member flights experience be watching for delays in offering a curtained off satisfying enough to order to anticipate arrival “women’s only” area for drive long-term snags flights from Tokyo to • No terminal or security Honolulu to allow women engagement.” lines and ticket agent firstto breastfeed children or name greetings with apply makeup, reducing already-printed boarding long lavatory lines. • Canada’s WestJet passes • Personal assistants, increated Tray Vu – tray airport letter mailing and tables specifically suit pressing designed for tablets. Beyond United’s latest loyalty initiative, many offers to elite tiers focus on experiences. These can include tickets to sporting events and concerts, wine tastings and gourmet events, arts and cultural festivals – there’s really no limit to 19 In each of these examples, you can see creativity and exclusivity working well. But when it comes to personalization and relevant rewards practicality speaks volumes, too.
  20. 20. HOW MANY PILOTS DOES IT TAKE TO DELIVER THE BEST POSSIBLE EXPERIENCE FOR YOUR CUSTOMERS? Then why task your internal loyalty team with solving your loyalty program and technology needs? Kobie is the secretdelivering end-to-end loyalty solutions to help your team soar. kobie.com
  21. 21. HOW HOTELS CAN IMPROVE GUEST LOYALTY THROUGH SOLOMO MARKETING AND A LOCALS-FIRST FOCUS By Bram Hechtkopf To loyalty marketers who thought they knew what SoLoMo stood for: think again. Spelled out as Social, Local, Mobile, too often the ‘Lo’ in SoLoMo is thought of as a strictly location-based initiative. But thinking in those narrow terms fails to consider a vital subset of hotel guests: locals. missing as much as 85% of local customer feedback. It also found that locals are 12 times more likely to give a brand positive feedback compared to non-locals. Meanwhile, another study by hotel software company Monscierge found that 73% of hotel guests want local recommendations. So “local” and locationbased marketing isn't simply about performing a search for "hotels in Nashville" or researching “Vietnamese restaurants near New York’s Plaza Hotel.” It's also about people living in proximity to a hotel. And, for hotel loyalty marketers, tapping that lucrative ‘Lo’ segment. But as hotels are working harder to engage guests and create new experiences (which include 4-star onsite dining, book readings, poetry nights, free in-lobby Wi-Fi, wine Think about it. How often tastings and the do locals say, "Oh, I wish I “Starbuckification” of the could be a tourist in my lobby itself) they should own city?" Instead of being also consider the truly local incentivized to walk aspects of the marketing through hotel doors via an term SoLoMo. Perhaps we engaging experience or should also be asking how rich loyalty program, locals hotels can more effectively fail to consider options that wed that local engagement are nearby or right in front to social and mobile of them. Only on special marketing. occasions like birthdays, anniversaries or nights out Engaging Locals at the theater do some Through the Five ‘Es’ locals buck this trend. Nearly four years since the Otherwise, a largely Great Recession began, untapped market is being one in four travelers still unfairly ignored. plans vacations close to A recent infographic released by The Location Based Marketing Association and Venuelabs speaks to this point. In a review of 265 cities, it was found that hotel brands are 21 home to save money. Especially in an uncertain economy where the “staycation” is alive and well, locals can be a hotel’s most valuable asset.
  22. 22. Localizing Loyalty Outreach For a variety of reasons, locals are a great test market to measure the success of a hotel’s loyalty program: • The hotel in question can easily turn mobile outreach for promotions and on-property events into physical action because locals can conveniently reach nearby establishments. For instance, if a mobile app sends push notifications for discount drink specials the following Tuesday, residents can quickly make the trip. • Likewise, engagement should be easier as hotel brands can better appeal to local pride, improving guest outlook. That means hotels can partner with restaurants, sports teams and retail and entertainment outlets for specific events, attracting local interest. • There’s also an intrinsic sense that many locals want their area hotels to succeed. The Venuelabs study also found that consumers are 35% more likely to discuss a local brand positively – a fact hotels can use to great advantage. Such neighborhood staples attract out-of-towners, increase foot traffic and have a generally positive influence. • Speaking of discussing brands positively, if guests are already feeling passionate or optimistic about a stay or visit, hotels can encourage them to share their positive experiences on social media, making the enablement and execution of a loyalty program easier than it would be if nonground up. Capella went out of its residents were the primary way to keep area residents focus. informed on the design and aesthetic impact the new hotel • Locals often travel fewer would have on the neighborhood. than 50 miles to a hotel. The hotel offers locals access to This means that, as exclusive Washington Ballet guests, they’re likely to performances, classes and even spend on hotel amenities behind-the-scenes tours. In what they saved on flight another example, the still-underand other travel expenses. development Hard Rock Hotel & Costs lower not only for Casino New England, in West locals but for hotels too, as Springfield, Massachusetts, is all aspects of loyalty using social media to keep locals outreach are less abreast of the latest progress and expensive, operating (at designs plan. least initially) on a localized scale. Upon completion, the property will include a 350-room hotel and a Locals also serve another 100,000-square foot casino with important benefit. While their 100 table games and 2,500 slot proximity and pride are pluses machines as well as a Hard Rock that can’t be replicated, their Café. Ensuring this large, smartphone usage patterns can. complex project fits West That means the metrics and Springfield’s overall aesthetic will analytics gained from engaging be very important. Also, returning locals via mobile and social can to our 50-mile threshold, West be quickly adapted to guests at Springfield, although a small city large. of 28,000, may prove critical. Located at the crossroads of In this way, local guests are like south-central New England (and beneficial test subjects. SoLoMo’s an immediate bedroom linchpin, the smartphone (uniting community of Springfield proper), social media and location-based West Springfield is within short marketing together in one device) driving distance of: the has become one of the world’s southwestern Boston suburbs, most ubiquitous technologies. greater Hartford, Albany, New According to Expedia at the York, southern Vermont and the second annual Cornell Hospitality extreme northeastern suburbs of Research Summit, more Internet New York City. If a project like this traffic is recorded over mobile sours, the impact will be felt devices than over desktops or across a large region, affecting laptops, two-thirds of Americans not only “hyper locals,” who live in sleep with their smartphone within West Springfield, but regional arm’s reach and mobile bookings locals too. (a vital measure of mobile outreach’s ROI) are expected to That said, Hard Rock New double from $16 million to $32 England would further benefit by million by 2016. employing tactics used by the Omni Fort Worth Hotel, in Fort Worth, Texas. Rather than just Examples of Localized inviting locals to comment on their Engagement experience or on the property in Encouragingly, some hotels are general, the Omni offers local starting to better engage local residents reduced rates and patrons with positive results. The Texas-themed events. recently-opened Capella hotel, in Washington D.C.’s Georgetown neighborhood, began the local engagement process from the 22
  23. 23. It also has relationships with an area museum and a famous Texas luxury boot maker. Even the property’s on-site restaurant, Cast Iron, (one of four) was created with locals in mind and evokes frontier living while emphasizing native foods. What if locals could earn a free night’s stay provided their reviews were the highestranked for a given week? Homegrown Hospitality Considering that more than 90% of global smartphone users search for content on And Boston’s Liberty Hotel goes one step their mobile devices and that 61% research beyond Capella, Omni and Hard Rock New local content, it’s clear mobile engagement England by offering free events five days a is a vital way for hoteliers to attract, engage week for downtown Boston residents. and retain their guests. Yet infographics While none of these examples explicitly like the one produced by Venuelabs reference mobile, you can be certain they underscore how a critical component for all have Facebook pages, Twitter feeds and hotel outreach – locals – is being that friends and family are texting and overlooked. Even as the economy tweeting about their experiences. Given continues to improve and staycations lose time, some of these brands might go the their luster, engaging locals through loyalty route of Marriott’s Renaissance Hotels, program perks and unique offerings that which launched the Navigator Program last only residents can enjoy is a great way to year. In conjunction with Twitter and build brand commitment while serving as a Instagram, the hotel built a database launching pad for more expansive out-ofgenerated by locals listing the best places town loyalty outreach. for eating, shopping and entertainment. After just six months the campaign saw the Now is the time to make sure the ‘Lo’ in your hotel’s SoLoMo efforts is fully hotel’s number of Facebook ‘likes’ rise to maximized and switched into high gear. 303,000 from 40,000 (a 658% increase) while Twitter followers grew to 28,000 from 5,000, a 460% increase. Here, too, the current program has much potential for further growth. Rather than simply soliciting local reviews, future programs could easily add loyalty and gamification elements to such outreach. 23
  24. 24. ABOUT THE AUTHORS Michael  Hemsey,  President As  President  of  Kobie  Marke2ng,  Michael  is  responsible  for  leading  all  facets  of  the  loyalty   marke2ng  organiza2on  including  business  development,  IT  ini2a2ves,  client  services,  as  well   as  the  overall  direc2on  of  the  Kobie  brand.  For  20  years,  Michael  has  cul2vated  a  rich   background  in  client  services,  product  development,  marke2ng,  technology  and  opera2ons   through  several  key  posts.  Prior  to  Kobie  Marke2ng,  Michael  was  Execu2ve  Vice  President  of   TSYS  Loyalty  (formerly  ESC  Loyalty)  and  led  the  loyalty  marke2ng  implementa2on  and   rela2onship  management  teams  serving  the  world’s  largest  issuers  and  retailers.   Bram  Hechtkopf,  Vice  President  of  Business  Development  &  Marke=ng     Bram  leads  the  “marke2ng  of  Kobie  Marke2ng.”  He  consults  with  current  and  prospec2ve   clients  on  new  business  opportuni2es,  helping  to  develop  customer  reten2on  and  loyalty   marke2ng  strategies  and  solu2ons  that  drive  increased  reten2on  and  spend.  Following  in  the   footsteps  of  his  father,  Kobie’s  founder,  Bram  is  eager  to  con2nue  Kobie’s  vision  of   technology  and  data  analy2cs  as  enablers  of  leading-­‐edge  marke2ng  execu2ons  for  world-­‐ class  customer  loyalty  ini2a2ves.  Bram  has  consulted  with  a  wide  array  of  leading  brands   including  AMC  Entertainment,  TGI  Friday’s,  BJ’s  Restaurants,  Verizon,  Bank  of  America,  RBC,   Flagstar  Bank,  JPMC,  Sagicor,  Coca  Cola,  Cox  Enterprises,  Ruby  Tuesday,  Hawaiian  Airlines,   and  Royal  Caribbean  Cruise  Lines. Dave  Andreadakis,  Vice  President  of  Loyalty  Strategy Dave  is  focused  on  business  development  with  a  bent  towards  helping  clients  and  prospects   think  through  the  strategic  and  financial  aspects  of  loyalty  and  the  benefits  that  we  can  bring   from  a  strategic,  design,  analy2cal,  behavioral  and  plaYorm  basis.  Prior  to  Kobie,  Dave  led   Business  Development  for  AIMIA  and  played  a  key  role  on  the  Loyalty  Strategy  team.  His   primary  focus  was  to  understand  markets,  ensure  the  op2mal  selec2on  of  strategies  and   tac2cs  that  will  meet  the  needs  of  clients,  and  then  design  programs  that  drive  maximum   value.  
  25. 25. HOW MANY FLIGHT ATTENDANTS DOES IT TAKE TO DELIVER THE BEST POSSIBLE CUSTOMER EXPERIENCE? Then why task your internal loyalty team with solving your loyalty program and technology needs? Kobie is the secretdelivering end-to-end loyalty solutions to help your team soar. kobie.com
  26. 26. PROVEN RELATIONSHIPS POWERFUL RESULTS
  27. 27. WE ARE KOBIE Kobie Marketing is a diverse team of loyalty enthusiasts who are passionate and dedicated to the day-to-day management and long-term success of your loyalty program. We deliver quantifiable ROI and engaging customer experiences to increase customer retention. Kobie Marketing is a global leader in loyalty marketing and an industry pioneer, delivering end-to-end strategy, technology and program management solutions. Kobie drives results and ROI through Kobie Alchemy®, a best-inclass loyalty marketing technology platform. Find out more at info@kobie.com

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