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PRESENTATION:
Gamifying Retail Loyalty Strategies
with 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 Count

Walmart                                                            7%           19%           36%       38%           132    3,300

Target                                                            23%           37%           30%       11%           100    1,800

Warehouse store (e.g., Costco, Sam's or BJs)                      25%           31%           35%        9%             75   1,000

Amazon.com                                                        23%           41%           27%        9%             87

Best Buy                                                          47%           41%           10%        2%             70   1,300

Office supply store (e.g, Staples or Office Depot)                36%           47%           15%        2%             82   4,200




      Wedges Low Frequency                                Bells Moderate Frequency                   Direct Competitors High Frequency
50%                                              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 Program




Paid Program         Free Program
Something has to be done.




That something is gamification.
How retailers see “Gamification”
              should
I’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
Anxiety
Challenge




                      Boredom


               Skill
Think of it this way.
• Gamification is using
  digital candy to
  capture that special
  place in your
  customer’s brain for
  your brand, and
  defend your physical
  footprint.
Thank You




 Marc Parrish
 mparrish@book.com
Badgeville Summit, Engage 2012 - Presentation : Gamifying Retail Loyalty Strategies with America’s #1 Book Retail

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Badgeville Summit, Engage 2012 - Presentation : Gamifying Retail Loyalty Strategies with America’s #1 Book Retail

  • 1. PRESENTATION: Gamifying Retail Loyalty Strategies with America’s #1 Book Retailer MARC PARRISH VP of Customer Retention and Loyalty Marketing
  • 2. Gamifying Your Retail Loyalty Strategies Marc Parrish VP, Customer Retention & Loyalty Marketing, Barnes & Noble
  • 3. Retail Brands crave loyalty. It means that marketing dollars can be spent more effectively on a convinced audience. News Search Source: Google Insights
  • 4. 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.
  • 5. 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!
  • 6. The Goal of Loyalty Marketing is always white glove service….
  • 7. 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 Count Walmart 7% 19% 36% 38% 132 3,300 Target 23% 37% 30% 11% 100 1,800 Warehouse store (e.g., Costco, Sam's or BJs) 25% 31% 35% 9% 75 1,000 Amazon.com 23% 41% 27% 9% 87 Best Buy 47% 41% 10% 2% 70 1,300 Office supply store (e.g, Staples or Office Depot) 36% 47% 15% 2% 82 4,200 Wedges Low Frequency Bells Moderate Frequency Direct Competitors High Frequency 50% 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
  • 8. To bring your shoppers back, customer friendly machinery is required.
  • 9. 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
  • 10. CC Program Point / Money Back Program Paid Program Free Program
  • 11. Something has to be done. That something is gamification.
  • 12. How retailers see “Gamification” should I’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
  • 13. Because Retail has already been gamified. Retailers just didn’t lead the way.
  • 14. 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
  • 15. Anxiety Challenge Boredom Skill
  • 16. Think of it this way. • Gamification is using digital candy to capture that special place in your customer’s brain for your brand, and defend your physical footprint.
  • 17. Thank You Marc Parrish mparrish@book.com