Your Loyalty Program: Time to Refresh                                                                          The key To ...
communications, and a con-s i n c e l o y a lT y p r o g r a m s a r e b e c o m i n g s o c o m m o n -       tinuously n...
It’s not the destination                  loyalty programs are becoming                maintain the attitude that you’re  ...
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Loyalty Program: Time for a Refresh

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It seems that everybody has a loyalty program these days. Some were created years ago and don't look a day older than the day they were rolled out. Others have undergone dramatic facelifts. So how do you know when the time is right to make some changes?

More CRM and Loyalty Marketing Resources

Loyalty Blog: http://www.customerinsightgroup.com/loyaltyblog/

eBooks: http://www.customerinsightgroup.com/white-papers

Loyalty Workshops: http://www.customerinsightgroup.com/custom-loyalty-workshops

Audit Loyalty Program: http://www.customerinsightgroup.com/loyalty-audit

Pinterest: http://pinterest.com/engagekeepgrow/

Who is Customer Insight Group?

Customer Insight Group, Inc. leads the way in the evolution of how companies engage their customers, positively motivate them and earn their long-term loyalty. Our extensive client work is testimony to our depth of knowledge and ability to apply strategic insight and solutions to a wide variety of business objectives. Our team’s client experience includes: NHFA, Thomasville Furniture, The Maxim Group Carpet Franchise, Ashro, A&P, The Bon Ton, Crate & Barrel, Dick’s Sporting Goods, Edwin Watts Golf, GE Consumer Finance, Monroe and Main, Swiss Colony, Midnight Velvet, MySwingle.com, The Great Indoors, G.H. Bass, Golf Galaxy, Helzberg Diamonds, HSBC, Kohl’s, La-z-boy Furniture Franchise, MCI, Payless ShoeSource, Pier 1 Imports, Petco, Proflowers.com, Regis University, Ruby Tuesday, S&K Menswear, Sierra Trading Post, Stein Mart, Tommy Hilfiger, Ulta, as well as various other leading companies.

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  • Continual optimization should be a goal for every loyalty program. Automatic reporting, ideally via a simple but comprehensive dashboard, should be established at program launch, and KPIs monitored and analyzed on an ongoing basis. Competitive activity and customer feedback should be closely watched. Today’s best program designs feature tools to allow dynamic adjustments to program earnings and redemptions, so responding to market conditions and consumer needs shouldn’t require a total program redesign. Loyalty programs in place for more than two years, especially if they have fixed benefits and rewards, should be audited by an objective third-party and benchmarked against best practices.

    Howard Schneider
    Partner, Metzner Schneider Associates
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Loyalty Program: Time for a Refresh

  1. 1. Your Loyalty Program: Time to Refresh The key To a successful l o y a lT y p r o g r a m i s u n d e r s Ta n d i n g T h aT i T n e e d s conTinual care and nurTuring.It seems that everybody much-lauded debut, but it’s Jump to thehas a loyalty program all too frequent that we see bottom line. programs that were launched,these days. there’s customer response and put on a shelf and not givensome were created years ago then there’s bottom line num- much more thought. the keyand don’t look a day older than bers. every year, it’s important to a successful loyalty program to scrutinize all the elementsthe day they were rolled out. is understanding that it needs of your loyalty program. thisothers have undergone dramatic continual care and nurturing. list serves as a starting point infacelifts. so how do you know measuring customer response honing in on what the numberswhen the time is right to makesome changes? Let a heavy and opinion, not only after an are telling you:dose of customer insight influ- initial launch, but throughout the > Are your redemption ratesence your strategy along with an life of the program helps keep trickling in or staying strong?open mind and the best refine- you on top of what your program > Which departments arements will present themselves participants want and need. At customers redeeming?loud and clear. the heart of all loyalty programs > Are enrollment rates slowing is the creation of a relationshipexamine program between you and your customer. or on the rise?response over time. Keep that dialogue going and > Are new members migrating up?It seems so obvious that you the response you receive will > How are your response rates?should look at how your program help guide every aspect of your > Is the program getting theis being received long after its refinement strategies. ROI forecasted?|| ©2010 Customer InsIght group, InC. ph: 303.422.9758 www.CustomerInsIghtgroup.Com
  2. 2. communications, and a con-s i n c e l o y a lT y p r o g r a m s a r e b e c o m i n g s o c o m m o n - tinuously nurtured strategy thatplace, iT’s imporTanT To be diligenT in keeping keeps the program topmost iny o u r s f r e s h a n d r e l e v a n T. customers minds. one of its more notable refinements is how the program now uses the Is your CFO concerned about was reinvented again into Crown information it has gleaned from the impact on profit margin? Rewards. with the name change its various customer segments What are the changes in the came a new tiered loyalty pro- to tailor messaging and offers competition and marketplace? gram with a fresh set of rewards specific to each segment — and ways to earn them. the new ultimately making the message Do you have new services program is strategically focused even more relevant to each and/or products that impact on getting customers to move customer and in turn, their the program? up and earn more rewards. membership more valuable. program benefits are designedmy, how Best Buy Reward Zone to increase basket size byyou’ve changed. giving customers bonus points Launched in 2003, Best Buy’ssome of the most successful for purchasing three or more Reward Zone has since made itsprograms started very differently cards, drive shopping frequency own transformations. After solic-than they are today. By respond- through new monthly member iting feedback from customers,ing to changing customer needs, offers and rewarding high-value they dropped the $9.99 enroll-shifts in business climate and platinum customers with more ment fee, made it easier fornew inroads from competition, points and rewards. members to use the web, andloyalty programs succeed in simplified the way customersremaining fresh, relevant and DICK’S Sporting Goods receive exclusive offers, dealsprofitable. here’s a quick look Sports a New Look and reward certificates by e-mailat how some popular retail pro- recreation retailer Dicks or by accessing myrewardZone.grams have evolved. sporting goods has featured com. As an example, Best Buy their ScoreCard Rewards pro- offered up a never-before-seenHallmark Gold Crown gram for years with a stable perk for program membersBecomes Crown Rewards rewards structure that has – exclusive access to The PoliceIn 1994 the Hallmark Gold remained unchanged over time. Live in Concert tickets. thisCrown program debuted, a fre- what has changed, thanks to unique benefit was right onquent-buyer reward program insight from current customers, target for their entertainment-for customers at selected are its enhanced benefits, a savvy member base and ranghallmark retail stores. two fresh new look to the program true to their program’s goalyears later, the hallmark stores that’s supported across all of maximizing their members’participating in the reward pro- print, electronic and in-store entertainment lifestyle.gram were rebranded underthe Hallmark Gold Crown namethrough a $100 million remod- one of iTs more noTable refinemenTs is how Theeling program in which stores program now uses The informaTion iT has gleanedwere revamped with a fresh from iTs various cusTomer segmenTs To Tailorlook. then more recently, the m e s s a g i n g a n d o f f e r s s p e c i f i c T o e a c h s e g m e n T.Hallmark Gold Crown program|| ©2010 Customer InsIght group, InC. ph: 303.422.9758 www.CustomerInsIghtgroup.Com
  3. 3. It’s not the destination loyalty programs are becoming maintain the attitude that you’re so commonplace, it’s impor- on a journey of continuous test-— it’s the journey. tant to be diligent in keeping ing and refinement to constantlythe key to optimizing program yours fresh and relevant. use improve the customer experi-performance is to keep an open customer feedback as well as ence and build profitable cus-mind and be willing to try some- purchase behavior to test, refine tomer relationships.thing new and different. since strategy and freshen creative. sallie burneTT c u s T o m e r i n s i g h T g r o u p, i n c . strategist. leader. innovator. Customer Insight Group is a strategic With over 20 years’ experience in marketing company that uses customer strategic marketing, sales management information to help its clients engage in and customer relationship management, successful and profitable long-term rela- Customer Insight Group founder Sallie tionships with each and every customer. Burnett has built her vanguard reputation It provides marketing strategy, customer by crafting solid customer-centric strate- research, data analysis, program develop- gies that drive bottom-line success for ment, implementation and refinement her clients. Renowned for her out-of-the- of customer-centric programs including:Sallie Burnett box thinking and wealth of experience, loyalty, social media, customer engage-president, Ceo she’s been sought out by many of the ment, retention, win-back and newCustomer Insight group nation’s top companies to engage, keep customer acquisition.twitter.com/sallieburnett and grow their customer relationships at every point along their customer relation- ship journey. Her insight results in better aligned sales, service and marketing, while generating the greatest return on investment based on the voice and value 671 Secrest Circle 1 of the customer. Arvada, CO 80007 ph: 303.422.9758 www.customerinsightgroup.com info@customerinsightgroup.comCustomer relationships — engage.Keep.grow. twitter.com/internethowto|| ©2010 Customer InsIght group, InC. ph: 303.422.9758 www.CustomerInsIghtgroup.Com

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