MARC PARRISH, VP of Customer Retention and Loyalty Marketing · Barnes & Noble

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