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Kobie Quarterly Review - Financial Services Edition - Mar 2014


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Despite a sluggish economic recovery, Americans continue to shell out ever-growing amounts during high-spending times of the year. Take, for example, the record $4.7 billion consumers spent on movie tickets during the summer of 2013 and their total holiday purchases, which have been climbing steadily since 2010 after a two-year drop. During the run-up to these free-spending periods, companies put in many long hours devising sales strategies to maximize consumer engagement and ROI. Consumers plan ahead, too, relying on friends, family, social media and mobile devices to research products, land the best deals and discover the ultimate customer experience.

During these times, loyalty programs take center stage – not just in the retail sector but also in financial services. And some exciting recent developments have helped financial services loyalty programs turn the image of the faceless, unresponsive bank into one that is driving genuine customer engagement year-round, including:

• The evolving importance of Big Data and its accumulation and analysis beyond traditional loyalty metrics. Financial services, like other verticals, are learning to cater holistically to customers. What can a brand learn about program members outside of how they shop, what they buy and how they interact with their financial institution? How does their lifestyle impact their loyalty experience?

• The growing need for FIs to get moving on mobile while attracting, engaging and retaining Millennials – a generation poised for significant spending power, but whose loyalty remains up for grabs. Banks need to be where their customers are and increasingly that means offering them an on-the-go experience that is seamless, intuitive and fun.

• The fundamental rethinking of how a customer’s predicted long-term economic value – commonly known as customer lifetime value (CLV) – is determined. FIs must embrace CLV as the total amount customers could spend over time if properly engaged, with transactional barriers removed.

These trends – and additional insights – are at the heart of the Kobie Quarterly Review: Financial Services edition. Its goal is simple: to educate readers about the evolving loyalty landscape in specific industries and where it’s heading. Our Quarterly Review also offers suggestions and analyses on how brands can improve their loyalty efforts, discussions on mobile technology and today’s two-way brand-consumer dialogue.

We hope the Kobie Quarterly Review: Financial Services edition broadens your appreciation for what loyalty programs are all about - a way for brands and customers to truly develop genuine relationships – relationships that can grow as robust as the most revered financial institutions.
Tell us what you think and keep the conversation going.

Michael Hemsey, President
Kobie Marketing

Published in: Economy & Finance
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Kobie Quarterly Review - Financial Services Edition - Mar 2014

  2. 2. FEATURED CONTENTS 8 FINANCIAL SERVICES LOYALTY PROGRAMS IN PERSPECTIVE: The Path Toward Engagement Success Thanks to mobile technology, systems that manage terabytes of data and new channels that can deliver genuine, personalized experiences, the loyalty program manager’s job has paradoxically AD grown easier, yet more complex. 13 20 HOW YOUR MOBILE-ENABLED MOBILE BANKING AND THE LOYALTY PROGRAM IMPACTS FUTURE OF LOYALTY: A LOOK CUSTOMER INTO THE NEXT GENERATION LIFETIME VALUE “Going mobile” means the future of The smartphone is an ideal mechanism many financial services programs will with which to drive loyalty thanks to focus on some form of mobile strategy. its unique ability to capture real-time And those programs will also be heav- customer insights. The key here is ily influenced by the latest loyalty pro- discovering how a bank’s customers spend their money and time beyond gram and technology developments. 24 THE EVOLUTION OF LOYALTY AND MOBILE BANKING FROM INDUSTRY PERSPECTIVES traditional banking The question at hand is simple, but transactions. critical: How can banks turn what is typically a 2-minute-or-less experience (a mobile banking transaction) and make it last 15 minutes or longer, to drive engagement and newfound loyalty? KOBIE QUARTERLY REVIEW 3
  3. 3. CONTENTS FROM OUR PRESIDENT 17 Despite a sluggish economic recovery, Americans continue to shell out ev- FOUNDATIONAL LOYALTY PRO- er-growing amounts during high-spending times of the year. Take, for example, GRAM GUIDELINES: ENABLING the record $4.7 billion consumers spent on movie tickets during the summer of TECHNOLOGY 2013 and their total holiday purchases, which have been climbing steadily since Enabling technology, one of the foun- 2010 after a two-year drop. During the run-up to these free-spending peri- dational loyalty program guidelines ods, companies put in many long hours devising sales strategies to maximize Kobie calls the “Five E’s,” can help consumer engagement and ROI. Consumers plan ahead, too; relying on friends, financial services brands advance their family, social media and mobile devices to research products, land the best programs, enhance customer experi- 6 deals and discover the ultimate customer experience. ence and engagement and drive ROI. TURNING SKEPTICISM INTO During these times, loyalty programs take center stage – not just in the retail sector, but also in financial TRUST: THREE THINGS THAT CAN services. And some exciting recent developments have helped financial services loyalty programs turn the IMPROVE FINANCIAL SERVICES image of the faceless, unresponsive bank into one that is driving genuine customer engagement year- LOYALTY PROGRAMS 22 Of any industry, the financial MOBILE BANKING AND LOYALTY services sector might be the most TRENDS WITH NEW APP contradictory when it comes to PHENOMENON loyalty program effectiveness. Since the vast majority of Americans 10 GARNERING MILLENNIALS’ LOYALTY: ALL-MOBILE LENDER GOBANK DRIVES NEWFOUND ENGAGEMENT GoBank – considered the first branchless lending institution designed solely for mobile devices – is tackling loyalty from the ground up, marketing itself to Millennials. Just out of beta, the bank is partnering with Barnes & Noble to promote its financial services in 555 Barnes & Noble-run college book stores. 18 HOW FINANCIAL INSTITUTIONS CAN USE BIG DATA AND CONVERGED DATA SETS TO IMPROVE CUSTOMER LOYALTY use traditional banking services, and • The evolving importance of Big Data and its accumulation and analysis beyond traditional loyalty metrics. Financial services, like other verticals, are learning to cater holistically to customers. What can a brand learn about program members outside of how they shop, what they buy and how they interact with their financial institution? How does their lifestyle impact their loyalty experience? • The growing need for FIs to get moving on mobile while attracting, engaging and retaining more than half are smartphone own- Millennials – a generation poised for significant spending power, but whose loyalty remains up for ers, mobile engagement is becoming grabs. Banks need to be where their customers are; and increasingly, that means offering them an increasingly commonplace. Ultimately, though, it’s up to consumers to help banks navigate their mobile needs and wants. on-the-go experience that is seamless, intuitive and fun. • The fundamental rethinking of how a customer’s predicted long-term economic value – commonly known as customer lifetime value (CLV) – is determined. FIs must embrace CLV as the total amount customers could spend over time if properly engaged, with transactional barriers removed. At its most basic, Big Data refers to the accumulation and analysis of massive round, including: amounts of information from many 23 These trends – and additional insights – are at the heart of the Kobie Quarterly Review: Financial Services digital channels in order to derive gran- THE FINANCIAL SERVICES LOY- edition. Its goal is simple: to educate readers about the evolving loyalty landscape in specific industries ular customer insights and behavioral ALTY PROGRAM LANDSCAPE: and where it’s heading. Our Quarterly Review also offers suggestions and analyses on how brands can preferences. For loyalty programs, it’s WHERE ARE WE TODAY? improve their loyalty efforts, discussions on mobile technology and today’s two-way brand-consumer about turning the data noise into a clear and actionable signal. When consumers think about banking, it often falls into the necessary evil category. But that stereotype is begin- 11 ning to change: the 2013 Maritz Loyalty CUSTOMER LOYALTY IN RETAIL are pleased with their financial services BANKING: STRATEGIES FOR loyalty program. Report found that 73% of respondents dialogue. We hope the Kobie Quarterly Review: Financial Services edition broadens your appreciation for what loyalty programs are all about - a way for brands and customers to truly develop genuine relationships – relationships that can grow as robust as the most revered financial institutions. Tell us what you think and keep the conversation going. SUCCESS Banks should avoid becoming too preoccupied with generating and amassing data from multiple sources, as they risk becoming overwhelmed with data that is peripheral rather than genuinely useful. 4 KOBIE QUARTERLY REVIEW Michael Hemsey, President Kobie Marketing KOBIE QUARTERLY REVIEW 5
  4. 4. TURNING SKEPTICISM INTO TRUST 1 Recognize and act on the nue, top-selling products, trans- new program, called Buzz Points™, importance of Big Data: It may actions, average payment volume encourages local business owners come as a surprise but financial and returning customers. to become Buzz Point Merchants, institutions aren’t as proficient as they should be when it comes to dealing with Big Data. Traditional consumer transaction data? No Three Things That Can Improve Financial Services problem. Loyalty data? Less so. A Loyalty Programs ness of Big Data, but uncertainty By: Michael Hemsey recent Celent report finds widespread financial services’ awareover what to do with the data collected. That’s despite the fact that 60% of firms believe information is key to their competitive Of any industry, the financial services sector might be the most contradictory when it comes to loyalty program effectiveness. At its most basic level, loyalty is about trust – not about program specifics. But recent data shows that Americans don’t trust their banks very much. Investors, too, have diminishing trust in the financial system, according to data compiled by the Securities and Exchange Commission. As for non-investors and everyday Americans, only 1 in 4 has faith in big banks. (an aggregator of financial rate information), says that 76% of Americans remain risk averse when it comes to stock tinvestments. advantage. 2 3 Build Trust through an Omnichannel Framework: As with loyalty programs in other industries, transparency in the financial services sector is critical – especially after the housing bubble implosion and the collapse of major banks, like Bear Stearns and Washington Mutual in 2008, at the start of the Great Recession. Building that trust and transparen- 52% of the money spent with local merchants remains in the local economy, versus only 14% for big box stores. The campaign relies on a host of social media, email, web and mobile outreach efforts – a clear nod to omnichannel engagement. er outreach across all marketing the reality is that consumers can’t Consider Convergence: channels and consumer touch live without credit cards or banks. Financial services companies points. That’s what we call omni- But neither can banks live without frequently keep customer rela- channel loyalty – an enterprise-lev- customers. tionship data and loyalty data in siloed collection centers. But convergence of these two data sets will help paint a more granular, accu- el initiative to 60 information of firms believe % is key to their competitive advantage. rate picture. So drive, track, measure and reward incremental behavior throughout the enterprise and customer experience. The fact that there if customer A ed, but chooses to spend XYZ, says nothing about their level of financial services companies can engagement or activity. Too often, put two and two together and loyalty cards - digital or physical - incentivize transactions via loyalty accumulate in consumers’ wallets rewards, possibly with gamified and on their smartphones without elements and mobile apps, add- ever being used. payments company that many strictly a financial services example, iZettle, the Swedish mobile hope will be Europe’s answer to Square, is a good example of data convergence. Rather than just logging credit transaction information, the latest device upgrades include the ability to analyze what was purchased, measuring reve- customer experience, demonstrate transparency, engage across all channels and utilize Big Data in a way that drives enhanced consumer knowledge are the best ways financial institutions can improve long term customer loyalty. American financial loyalty program memberships ing to the enjoyment. While not Loyalty programs that improve the are 400 million Bringing these challenges – skepticism of banks and a lack of clarity about loyalty program benefits and their differentiators – together, how can loyalty programs improve customer trust and preferences for a financial services brand? KOBIE QUARTERLY REVIEW 35%. The study also found that Despite post-recession skepticism, Yet considering the number and popularity of co-branded credit cards linked to customer rewards – co-branded cards make up nearly 50% of all credit card spending – many consumers are part of financial services loyalty programs (total membership is around 420 million, including multiple programs) even if they’re not actively engaged. 6 data, increases local spending by cy begins with engaging custom- has B amount of money invest- Here are a few ideas: which according to the company’s But while big banks still evoke mistrust, smaller banks have fared better. And some, like Birmingham, Alabama-based Cadence Bank, (with branches across the South- 400 million American financial loyalty program memberships says nothing about their level of engagement or activity. east) are implementing several of the above suggestions as part of their new debit card loyalty program. Cadence builds trust by giving back to the local community through a “buy local initiative.” The KOBIE QUARTERLY REVIEW 7
  5. 5. FINANCIAL SERVICES LOYALTY PROGRAMS IN PERSPECTIVE The Path toward Engagement Success It wasn’t long ago that loyalty mobile devices, financial services managers had a near-impossible providers have access task: discover consumer wants and to an unparalleled needs in real time – and unob- amount of data trusively. This was especially true which can be in the financial services loyalty used to segment program realm. customers based Thanks to new technology like smartphones, systems that manage terabytes of data and new channels that can deliver genuine, personalized experiences, the loyalty program manager’s job has on their level of more rigorous over time. FIs must also be aware of how much data they can An Interview with Don Hughes What are some of those specific What are the critical factors for spond quickly to new ideas, espe- threats? a successful financial services cially ones that are time-sensitive. The challenge for pull from other financial services loyalty sources and use providers is earning customer participation while those insights to honoring those customers’ inform their customers. channel preferences. Until recently, data breaches were Another loyalty man- brand engagement. Only 10 years ago these levels of granular insight were impossible. loyalty program? systemic in nature. Now, a lot more Financial services loyalty pro- organized data breaching activity grams must be cost-effective. and hacking are occurring over- That means the monetary value seas targeting companies within it brings to the brand exceeds its North America. We have a custom- cost of implementation. FIs must er who experienced what’s known also push the envelope and find as a DOS (denial of service) attack alternate funding sources within a that came from China. Essentially, brand’s financial services model, of open-architecture systems and it was a massive effort targeting moving beyond more traditional their capabilities. How can banks one particular company and its incentives like: entire service infrastructure. agement technology threat relates to fraud and the nature paradoxically grown easier, yet The challenge for financial ser- store highly-sensitive cardholder more complex. While enhanced vices loyalty providers is earning data while preventing or reduc- engagement means greater customer participation while ing the risk of a breach? And how customer behavioral insights and honoring those customers’ chan- can that data be protected from data, that information influx has nel preferences. How do programs emerging threats coming from led to an uptick in fraud and iden- vie for their customers’ voluntary Asia and overseas? tity theft. participation and on what chan- zero interest rates nels? And what type of message for six months Kobie Marketing’s Chief Information Officer, Don Hughes, discusses these challenges and opportunities, offering his insights on how financial services institutions’ loyalty programs can achieve customer engagement success with a top-notch loyalty experience. What are some of the biggest challenges and opportunities will improve members’ loyalty experience? Product-specific or program offers? These are some of the questions program managers must answer in order to maximize the customer experience. The bottom line particular credit card loyalty programs also require a tech- cial services institutions, due to their data-driven requirements, have long been at the forefront of gauging customer behaviors, wants and needs: • Today, the deck is stacked intechnology and new engagement methods help them collectively chart new paths forward • 15% off an item purchased Financial services ognized, but banks and finan- creasingly in their favor as new • 15% discount for opening a • Zero payments or It may not be consistently rec- in customer loyalty. 73% Even so, security risks must be reduced and communication channel management loyalty program approval rating nology partner that is a must. But with a 73% loyalty program ap- is innovative by nature and agile enough to re- • proval rating, there’s no question that banks and finan- Are there technological challenges cial services institutions are begin- that financial services loyalty pro- ning to find the right engagement grams face over other verticals? balance. for financial services loyalty FI programs face audit and com- programs? pliance challenges that other ver- The biggest opportunity for financial services loyalty management comes down to tapping into ticals don’t. They spend more on these due to frequently-changing standards as regulations become the real-time data stream. With programs delivered via “smart” 8 KOBIE QUARTERLY REVIEW KOBIE QUARTERLY REVIEW 9
  6. 6. GARNERING MILLENNIALS’ LOYALTY: CUSTOMER LOYALTY IN RETAIL BANKING: Strategies for Success By: David Andreadakis The following is reprinted from Datamonitor Financial’s recent report, Customer Loyalty in Retail Banking: Strategies for Success which includes Kobie Marketing insights as related to financial services brand loyalty. All-Mobile Lender GoBank Drives Newfound Engagement Once banks have mastered the use of internally-gen- of more qualitative, unstructured data that can be erated data, they can then consider using third party gleaned from external sources, such as social media. data on their customers. Retailers and merchants are By: Bram Hechtkopf Loyalty program providers, Kobie Much discussion around big data has involved the use However, although such sources can potentially yield an obvious source, given that they have access to valuable information in the longer term, banks should detailed transactional data. Banks should give serious focus on easily quantified, structured data for now, consideration to forming strategic partnerships with GoBank’s emphasis on mobile as this will have a much more immediate impact on retailers such as supermarkets, as this can give them customer service. an immense amount of insight into their customers’ of mobile phone users, they also included, often advise young comprise nearly half, 44%, of those makes sense not just for Millen- businesses that loyalty from the who do their banking on mobile. nials, but for all next-generation get-go is much easier to implement than loyalty after the fact. Customer rewards programs work best when they are organically and seamlessly wedded to the brand promise. This is especially true when it comes to “legacy banks” – a financial services industry subset that has historically struggled with best-in-class customer engagement as a transactions-only perception persists. But that perception is beginning to change. Launched last month, GoBank – considered the first branchless lending institution designed solely for mobile devices – is tackling loyalty from the ground up, marketing itself to Millennials. Just out of beta, the bank is partnering with Barnes & Noble to promote While GoBank hasn’t announced any specific loyalty programs just yet, it is already employing several highly effective loyalty-generating tactics, including: • Enhanced transparency and customer empowerment: members can choose how much they want to pay for the service – prices range from $0 to $9 per month. There are also no ATM withdrawal fees, no minimum balance requirements and no overdraft penalties. • Extreme dedication to the appbased customer experience: the fact that GoBank has been in beta testing since January speaks to that dedication. • A budgeting tool: This is likely its financial services in 555 Barnes to include gamified elements, & Noble-run college book stores. making saving money a fun and Mind you, this is the demographic engaging experience rather than least likely to be branch bank-af- a boring chore. filiated, yet also the most mobile-savvy. Underscoring the point: a 2011 Federal Reserve survey found that while those in the 18-29 age group make up 22.4% 10 KOBIE QUARTERLY REVIEW • Integration with social media: According to Kobie Marketing, a global loyalty consumers. Much has been written of late regarding the effectiveness of mobile wallets, the future of virtual currencies and the need for 18-29 MAKE UP 22.4% marketing agency, banks should avoid becoming age group of mobile phone users lifestyles and habits. In the US, Kobie Marketing highlighted Citizens Bank too preoccupied with generating and amassing as a strong performer in this area. Citizens Bank has data from multiple sources, as they risk becom- a large number of in-store branches, with around 170 ing overwhelmed with data that is peripheral outlets operating within Stop & Shop supermarkets, rather than genuinely useful. and is starting to make use of Stop & Shop’s detailed transactional data. This will allow the Therefore banks should prioritize using bank to, for example, fill the gaps data that can be clearly linked to be- industry standardization. Turning mobile banking into a ubiquitous loyalty; these are generally hard and engaging experience – sup- numbers on demographics, ported by a loyalty mindset – is a product holding, channel vital first step in shifting consum- usage and transactions, ers’ mindsets, heralding all-mobile among others. By customer engagement. looking at all these in its debit card data, where it havioural and attitudinal drivers of But what’s next for GoBank? Attracting new members, first of the Millennial demographic and then beyond, would seem most logical. With about 10,000 customers so far, the bank must grow rapidly if it hopes to survive. data in the whole, banks can start to build a holistic, 360-degree view of their customers, gain a much previously only had access to top-level information such as the time, location and …banks can start to build a holistic, 360-degree view of their customers fuller understanding of their And while pay-what-you-want fee act accordingly. entice in-debt college grads, this probably needs to be adjusted. Instead of removing the offering, bank customers can send money though, perhaps it should remain a directly to other individuals via on the specific items purchased within each transaction, Citizens Bank can combine this with its existing CRM data to make relevant offers to their that pursue this route will be able to gain a competitive advantage over their rivals, at least until they follow suit. customer perk for those who have Facebook (or email). transactional data With access to data customers. Other banks Banks should form partnerships with retailers to access valuable transaction. very accurate and financial requirements and structures might be a good way to total value of each helped establish new accounts and future brand ambassadors. KOBIE QUARTERLY REVIEW 11
  7. 7. HOW YOUR MOBILE-ENABLED LOYALTY PROGRAM IMPACTS CUSTOMER’S LIFETIME VALUE By: Michael Hemsey It wasn’t long ago that being loyal to a bank or finan- customers spend their money and time beyond Banks and FIs must be invited into While not yet mobile-enabled, cial institution was a given. Like other establishments, traditional banking transactions. And, only by giving numerous aspects of consumers’ League of Legends offers sev- the bank was a fixture or centerpiece of the local customers genuine offers that speak to them on their lives, so my advice is to proceed eral game-related apps like LoL community. preferred channels, can banks broaden the loyalty gently. Where do consumers’ lives Connect, a chatting program that experience. increasingly exist? Social media. lets users communicate in real Whether it’s on Facebook, Twitter, time. Such developments open the Instagram, Pinterest or through door for additional gaming (and text messaging apps like Kik and monetization) opportunities linked WhatsApp, mobile is an excellent to mobile-enabled bank loyalty way for FIs to learn about their programs. Today, however, banking culture in the U.S. is radically different. Instead of a personal relationship between Driving loyalty also comes down to assessing a cus- the teller and customer, many banks now charge for tomer’s monetary worth. Fortunately, there’s a way to that level of service – or have eliminated tellers alto- express this need known as customer lifetime value. gether. The result is strained relations between banks CLV, as defined by the American Heritage® Dictionary and their customers. According to a recent Temenos of Business Terms, is “the [predicted] economic value and Deloitte report, nearly a third of senior banking of a customer during the life of the customer’s asso- executives see retaining customers and their loyalty as ciation with a business. An estimate of customer life- the greatest challenge. time value allows a business to determine the amount While mobile channel innovation was cited as a top of money that can be spent on acquiring and retaining customers’ interests and service them at every moment of their lives, regardless of their physical location. ideal mechanism with which to drive loyalty, thanks to its unique ability to capture real-time customer insights. The key here is discovering how a bank’s What we are beginning to see is Consider a 22 year-old Millennial, airlines moving beyond creating this definition is only partially accurate. At Kobie, we part of a generation that spends apps that simply allow passengers consider CLV as the total amount customers could 14% more time on mobile devic- to book flights or check the status spend over time if they’re well-engaged and transac- es per week than any other age of their accumulated rewards tional barriers are removed. Mobile’s ability to simpli- group. Properly engaged, these points. Airlines are starting to link fy banking is only the beginning of its CLV potential. individuals could be customers their mobile engagement tools for decades. More than just a with seatback display screens and entertainment systems, while flight attendants are using tablets to access passenger profiles. through exciting and original loyalty programs. These actions are helping them create more accurate pictures of what their customers might want Take American Express and its to purchase before they even partnership with the makers of the board the plane. Knowing what popular online game, League of customers want before they know Legends. The credit card com- it themselves, collected and deliv- pany recently issued a League of ered via mobile, is an engagement Legends prepaid debit card as model that banks could easily part of its RP+ program. Activat- emulate. ing the card allows users to earn virtual Riot Points redeemable for in-game rewards as they purchase “real-world” items and services 12 2 Engaging customers doesn’t mean ‘how do we make them give banks and FIs their bottom dollar?’ Focus on providing loyalty experiences that make your customer more likely to spend their money at one place versus some- 3 lifetime value comes from airlines. a customer.” Though from our company’s perspective, tivizing increased customer spend they’re already on. where else. banking can be monetized, incen- gagement. That’s unfortunate as the smartphone is an from the engagement path/s channel maximizing customer make on-the-go deposits, mobile maximize this channel for long-term customer en- Don’t tear your customers away Another example of the mobile mechanism to check balances and priority by these executives, many banks have yet to 1 The ABCs of CLV: A Formula for Consideration Three simple, yet important pieces of advice to consider: Don’t make engagement more difficult. Be convenient and focused on maximizing those coveted consumer “in-between times.” For instance, if a customer wants to invest in a stock while walking to a meeting, then make this mobile experience less onerous. That means reducing the number of times a customer has to enter multiple passwords or the number of verification steps needed. Sometimes a customer will forget a first pet’s name from when they were six years old and they don’t want to be bothered with remembering excessive minor details. Therefore, it’s banks’ and FIs’ responsibility to reduce the number of hoops their customers must jump through. Ultimately, customer lifetime value isn’t just marketing jargon. It’s based on an actual formula. continued on page 16 KOBIE QUARTERLY REVIEW 13
  8. 8. $ $ $ $ $ $ $ $ $ $ 63%
  9. 9. continued from page 13 Rather than relying on traditional calculations, (summing up how much a customer spends across all channels and using that as a predictor for FOUNDATIONAL LOYALTY PROGRAM GUIDELINES: Enabling Technology By: Don Hughes future worth), I suggest employing the Fader-Hardie model, Probability Models for Customer-Base Analysis. Based on the work of professors A recent survey revealed that gy and technological agility really emotional status and psycholog- Peter Fader and Bruce Hardie, their business model considers ex- a majority of consumers, 57%, mean? It’s not just about acquir- ical triggers for enhanced brand pected customer lifetime value a potentially richer dataset than past would travel in driverless vehicles ing technology partners. It’s also engagement. transactions alone: controlled entirely by computer. about fostering a corporate cul- Considering the rate at which hard ture where technology is seen as drives crash and computer glitches the solution and not the problem cost businesses millions per year, of delivering a better loyalty ex- that’s an incredible finding. The sta- perience. C-level buy-in is a must tistic also demonstrates consumers’ from the beginning, but technol- powerful faith in technology even ogy enabling within the loyalty when their lives are at stake. program construct also requires E(CLV)=f E[v(t)]S(t)d(t)dt ∞ ˚ Complex calculations aside, bank and FI customers are a complicated mix of interests, spending habits and shopper desires. Encapsulating all of that diversity into a single formula that tries to predict long-term customer value is far from easy. But it’s an important start – and mobile technology is the financial services industry’s most valuable tool on two important levels. Mobile, as a portal to social media, is an excellent metrics gatherer and brand educational device. Banks and FIs learn about who their customers really are beyond banking transactions. And increasingly, it’s the platform where banks and FI loyalty programs must exist if they are to truly excite customers. I spoke of customers’ preferred channels above. More often than not, mobile is that preferred channel. If banks and FIs reduced the steps consumers need to use mobile banking effectively as well as send This belief, however, is more than frequent internal review across all true in today’s automotive industry as it is for financial services and their ability to implement effective customer rewards programs. Which is why enabling technology, one of the foundational Loyalty programs today want a complete picture of a customer’s emotional status and psychological triggers for enhanced brand engagement. cently announced it was to issue cards decorated with scenes from League of Legends, an online multiplayer game which includes the in-game purchase of real-world items. Cardholders will receive 1,000 Riot Points for 1,000 points for their first 10 in-game purchases – with 10,000 points awarded to those who link their card to a checking account. Considering the need for financial services brands to better engage Millennials, loyalty program guidelines Kobie calls the “Five E’s,” can help The credit card company re- signing up plus an additional faith. Technology has become necessity. That’s as Case in point: American Express. this would seem like an excit- departments in de-siloed ways ing, fun and data-rich endeavor. their loyalty program, enhance One of the biggest ways financial customers’ experience and en- services institutions are enabling Ultimately, enabling technology It’s time for banks and FIs to once again become fixtures of their com- gagement and drive ROI – all in an technology comes down to their munities – not with physical tellers, but by embracing the latest mobile omnichannel manner. use of traditional and non-tradi- rewards and offers based on a more holistic customer view, true customer lifetime value might be much greater than what the traditional formula predicts. technology has to offer. Today’s young adults represent potential decades of brand allegiance. Now is the time to begin courting their loyalty. financial services brands advance The enabling of both established and emerging technologies can make what happens under the “digital loyalty program hood” work seamlessly and effectively while remaining robust enough to be scalable as a business expands. This requires a third-party loyalty partner that is technology-agile – innovative by nature and able to adjust and respond to new ideas, especially time-sensitive ones. But what does enabling technolo- 16 KOBIE QUARTERLY REVIEW tional data. Traditional data sets include customer transactions and financial information. Now, thanks to the real-time data stream delivered to banks via smart mobile devices, additional customer metrics such as purchase location, level of social media interaction (either directly with a specific loyalty program or generally with social circles) and degree of brand engagement are available. At their is more than just flicking a switch or pressing the “power button” to launch a new tech-savvy loyalty program. It’s about fostering a culture where exciting and engaging ideas like the American Express example can take root and then take flight. Compare the marketing and branding differences between the American Express that first brought consumers the “don’t leave home without it” ad campaign in 1975 to League of Legends. core, the best financial services They’re in an entirely different loyalty programs today want a league, don’t you think? complete picture of a customer’s KOBIE QUARTERLY REVIEW 17
  10. 10. HOW FINANCIAL INSTITUTIONS CAN USE BIG DATA AND CONVERGED DATASETS TO IMPROVE CUSTOMER LOYALTY By: Bram Hechtkopf won’t be a disconnect between emotional chord with the consum- While banking on big data loyalty overall loyalty satisfaction and er – so much so, that under ideal success, privacy is a big must customer experience and moder- circumstances loyalty becomes a ately high program dropout rates. moral obligation. Here’s how: Of course, adopting these techniques isn’t easy. Considering consumers’ data privacy concerns • Banks should be thinking more can learn about non-banking – 89% of US adults worry about like other verticals, marketing their transactions only if they partner their online privacy and 43% do uniqueness in omnichannel ways. Read a newspaper, listen to a streamed • Speaking of shopping, banks with other verticals, like retail not trust businesses with their They should also expand beyond stores, grocery chains and travel personal information – data con- transactional datasets to include and hospitality brands, converg- vergence must be accomplished radio broadcast or go online and you’ll find consumer “lifestyle metrics.” That ing datasets under one, de-siloed carefully and with the right legal the term Big Data still scoring major press way, a bank can offer something roof. That’s because this – rather safeguards in place. truly distinct. For example, a cus- than a bank branch or mobile app tomer donates 2% of his or her an- – is where most consumer trans- nual income to charity. Rather than actions live and evolve. Grocery distributing generic points toward stores are a great example as experience for financial services brands and discounts via branded credit cards, food purchases reveal a tremen- why is all of this important? banks can incentivize loyalty by of- dous amount of personal shopper fering a selection of charities for this information and lifestyle habits. Do customer to choose from and do- your financial services customers nate. This demonstrates a financial buy ethnic foods? Do their travel institution’s tacit recognition of the habits suggest that they fly to and a topic of significant conversation across multiple industries. But what is Big Data, what is its relevance to the customer Let’s start with the first question. and reward incremental behavior grams become mechanisms for customer as a person with interests certain regions of the world where At its most basic, Big Data refers throughout the enterprise and disposable cash and there’s no ra- beyond simple banking transac- those dishes are indigenous? Big to the accumulation and analysis customer experience – to market tionale for customers to use them tions. As for customers, it tells them: Data can and does measure these of massive amounts of informa- themselves as distinct brands. beyond their face value. “this financial institution cares tion from many digital channels in Doing so evokes genuine loyalty order to derive granular customer based more on reciprocal emo- insights and behavioral preferenc- tional status and less on transac- es. It’s about turning the data noise tional behavioral triggers. While the 2013 Maritz Loyalty Report found that 73% of respondents are pleased with their finan- about the ‘whole me,’” driving a new level of loyalty commitment. types of metrics. 89% The key for banks is to tailored customer-centric rewards and charity-of-choice donation. The Royal Bank of Canada (RBC) has also upped its loyalty game and now offers the purchase of wide-ranging products – including gifts for pets like carriers, dog feeders and “doggie loungers.” Fargo Rewards® has a subsection dedicated to a variety of green to organize the merg- products like reusable shopping services customer profile look like? half, 53%, dropped out of at least adopted by many companies are well-versed in some And what motivates the custom- one loyalty program in the last verticals as an ef- aspects of Big Data – electroni- er’s continued brand loyalty? For year across all verticals, including fective way to engage cally gathering customers’ trans- some, that brand buy-in is based financial services. This is not the members and customers. action histories since the 1960s on incentives like higher interest most encouraging picture. Gamification’s particular strength accesses that bank’s mobile app, and 70s – the use of that data to rates on savings accounts, fraud (in this context) comes down to there will be an offer incentivizing fuel competitive advantage has protection, the reimbursement graphic visualization. Let’s say that their travel on an airline which flies been limited. For financial services of ATM fees or features such as in addition to offering customers to that region or offers discounts institutions to continue reaching smartphone apps that allow check charities from which to choose, for signing up additional family and engaging customers with deposits and other transactions. a financial services provider also members – especially if they’ve relevant information, it is critical For others, bank loyalty is more Used correctly, however, Big Data showed images of how many mos- just moved to the US. And to think they broaden their data horizons about the path of least resistance. can fundamentally change this quito nets or lanterns or bottles of this level of granular analysis and using the latest CRM software. Young adults join their parents’ picture by revealing how to better fresh water their donations direct- improved customer experience That means deepening customer bank or become customers by earn customer loyalty beyond ATM ly purchased. Measures like this began with what a shopper pur- relationships using omnichan- default as one institution merges withdrawal fee reimbursements, turn banks into places of genuine chased in Aisle 6. nel tactics – an enterprise-level with another. The result is that free checking or family history. experiences and not just places to initiative to drive, track, measure bank cards and their loyalty pro- That way, in future surveys, there KOBIE QUARTERLY REVIEW of the above tactics, including latest CRM software While many financial services 18 Advantage, already employs some er profiles, using the is gamification, of US adults worry about their online privacy deposit money. It also strikes an revamped loyalty program, Perks of eco-friendly purchases, Wells • Another example and lackluster engagement. stance, Bank of America’s newly And, recognizing the dollar value gram, it also found that more than loyalty inertia – lukewarm support can be truly impressive. For in- their existing custom- What does the loyal financial Instead, it sounds a lot more like successfully struck, the results combine that data with cial services sector loyalty pro- into a clear and actionable signal. But if that delicate balance is er. That ensures the next time a customer walks into a bank branch or totes, bicycles and battery-powered chainsaws. Ultimately, loyalty is about trust and transparency first. And it’s in brands’ interests not to abuse Big Data and converged data sets but channel them into their most effective consumer engagement tool. Doing so allows financial services brands to expand beyond their traditional loyalty offerings and provide customers genuine experiences they never would have believed could come from a bank. KOBIE QUARTERLY REVIEW 19
  11. 11. MOBILE BANKING AND THE FUTURE OF LOYALTY: A Look into the Next Generation An interview with Michael Hemsey Say goodbye to boring bank- of rapid catch-up. In 2012, accord- influenced by the latest loyalty following: focus on the utility of branch features or products. But, ing and get ready for an entirely ing to the Federal Reserve, nearly program and technology develop- those applications from a consum- again, this is poised to change as new experience. That’s because 21% of survey respondents said ments. Kobie’s president, Michael er perspective, discuss the enter- second-generation mobile apps banks are learning how to attract, they used some form of mobile Hemsey, shared his views on prise from the bank’s perspective evolve, helping consumers make engage and retain customers banking services during the pre- mobile banking and loyalty in an and dabble with social media. use of additional enterprise through mobile outreach while vious 12 months. Younger respon- interview with Robert McGarvey turning to innovative loyalty pro- dents were even more likely to of The Credit Union Times for his grams that better speak to chang- use such mobile financial services article, “Mobility Matters: Getting ing consumer habits – especially tools with nearly half of the 18-29 to Mobile Banking 2.0.” as they relate to smartphones and demographic “going mobile.” tablets. Below, Michael Hemsey explores But what does “going mobile” how wedding loyalty and expe- Just as other industries have come really mean? It means that the rience-driven engagement to to embrace mobile as a powerful future of many financial services mobile will help move tablet and engagement and metrics-gather- programs will focus on some form smartphone usage to the next ing tool, the banking and financial of mobile strategy. And those phase in financial services loyalty services industry is playing a game programs will also be heavily programs, among other things. What are the specifics of utility, enterprise and social as they Banks’ usage of social media via mention above? mobile is also set for change, From a utility perspective, banks are coming out with capabilities such as mobile bill pay, mobile POS enablement and the ability for consumers to check in to their bank, much like they already do at a restaurant. Doing so helps and what does the next genera- banks review tion look like? customer trans- tend to follow and not lead when it comes to creating mobile engagement. That way, they can see what others are already doing (successfully) and how they can improve mobile offerings. Banks are also behind the curve when it comes to tablet-enabled apps – applications designed specifically for these devices despite rapid adoption rates. Tablet engagement can be far more sophisticated and intuitive. That’s why I think we’ll start to see an uptick in investment for both smartphone and tablet apps. To categorize the short-term and longer-term innovation goals, banks should do the 20 management. relate to the innovation goals you How is mobile banking changing As a general statement, banks services like personal wealth action data and in turn tailor rewards or incentives for continued bank though I believe this is a longer-term development. Mirroring the efforts of other industries, social media is highly effective at incentivizing and promoting brand engagement. Its greatest potential, however, is not …banks are coming out with capabilities such as mobile bill pay, mobile POS enablement and the ability for consumers to check in to their bank… apps are moving in that direction. Banks must also be more sophisticated in how their loyalty and incentive programs integrate the overall experience. Today they can be very disconnected. The third utility-related development uses mobile tools like scanning receipts and taking advantage of voice-activated features. Regarding enterprise, many banks ing the online conversation, but understanding and acting on what other people are saying about loyalty. Real time is key and I think banks and most only monitor- the brand. Twitter, Foursquare, Facebook, The Takeaway Banks know they have some catching up to do in terms of mobile innovation. But, as seen here, the industry is very aware of what’s possible and what other verticals are doing. It is only a matter of time (and investment) before banks and financial institutions – led by consumer demand – upgrade their mobile offerings. Instagram, Snapchat and Pixnet What’s next? How to move beyond are all good examples. In July of setting the mobile banking loyalty this year, Pixnet became Taiwan’s stage, what industries are doing fifth most-visited website, and in mobile loyalty well and how banks October, Snapchat launched its can model their “mobile 2.0” first commercials – a clear sign approach. of its growing popularity. Crowdsourcing is another way banks can better unite their customer base. But that, too, might be further down the road. can’t even tell consumers where the nearest ATM is relative to their location, nor can they list bank KOBIE QUARTERLY REVIEW 21
  12. 12. MOBILE BANKING, LOYALTY TRENDS AND THE APP PHENOMENON An interview with Michael Hemsey THE FINANCIAL SERVICES LOYALTY PROGRAM LANDSCAPE: Where Are We Today? An Interview with Don Hughes The slogan used to be “there’s an Mint is definitely a good idea. But the time. Kobie works with a lot When consumers think about banking, it often falls into the necessary On the up side, consumers are app for that.” But for the banking there’s always a risk: if you build of the banks that do so. They’re evil category. But that stereotype is beginning to change: the 2013 Maritz much more open to interacting and financial services industry, it’s it, will consumers come? In this continuously focused on how to Loyalty Report found that 73% of respondents are pleased with their with financial services institutions not so much an overused expres- case consumers will come. Why? provide a better-integrated loyalty financial services loyalty program. directly through their smart- sion as it is a statement that raises Because the app lends itself to experience. On a macro level, the a fundamental question. Is there a more creative thinking than we’re ability to provide offers germane mobile banking app out there that seeing elsewhere. Even simple to user interests and spending can genuinely engage customers, things like alerts and the notion habits is essential. increase conversions, reduce costs of security, fraud and privacy. The and simply be fun to use, mimick- banking industry is central to all ing the types of app experiences of these issues and using mobile found in other industries? At least to send account alerts – especially one app, Mint, is trying to address in households with multiple credit these capabilities. and debit cards – is imperative. Someone using their mobile banking app for 15 minutes might strike you as odd. What can they be doing for all that time? But that’s where banks have to get. Do you have a sense that banks realize Another critical question their apps are primitive and is how a well-devel- that it’s time to raise the oped loyalty program can be used to further enhance the customer experience. And is it really possible for a mobile banking app to be as fun and as exciting as the latest mobile games? The answer may Is there a mobile banking app out there that can genuinely engage customers…? surprise you. Michael Hemsey discusses how “plain vanilla apps” won’t get the financial services industry anywhere. The folks at Intuit® are hoping to get consumers to spend a lot of time using their app Mint, which is a personal financial manager that’s been pretty successful. Is it a good idea? Can it be more successful? 22 KOBIE QUARTERLY REVIEW bar? I heard a senior executive at JP Morgan Chase say exactly that. Their goal is to programs evolving? Will their user frequency increase? including the benefits Wof new engagement channels and connected consumers and the challenges of economic regulation and security threats. What does the financial services loyalty landscape look like today? The current landscape can be categorized in two areas: single-product and multi-product programs. Single-product cial institutions send account-level data into the loyalty particular person (whether using credit or debit cards), but typically covering a single product. app. He’s not there yet. But process of implementing multiple financial products into one they’re trying. Do other loyalty program. These are less common now, especially after banks think that way? the Durbin Amendment, which reduced debit card interchange fees what we’ve been discussa more social (and fun) mobile banking experience. Some banks are thinking that way, but not and what happened to loyalty enough. Banks tend to rest on programs, banks have not turned their laurels until someone comes away from offering loyalty and out with the newest offering and incentives for use of their debit then they follow versus lead. and credit cards. Bank loyalty pro- Whether it’s for IT reasons or oth- grams need to be more relevant. erwise, many banks are risk averse. continued on page 24 nologies, banks are able to send highly personalized location-based ties for additional loyalty earnings to consumers’ smartphones, whether they’re in the bank lobby or miles away. respondents are pleased with their financial services loyalty program wherein the bank or financial services institution is in the ing – providing more utility and CRM, mobile and payments tech- 73 Multi-product programs are an enterprise approach The JP Morgan reference is convergence and new loyalty, % loyalty programs are batched in nature. This means finanenvironment, as well as all the transactions against that phones. Thanks to both channel offers and merchant opportuni- as the best-selling game With the debit interchange issue Mind you, banks work on this all with me about the loyalty landscape within the financial services sector, build an app that’s as good very insightful. It speaks to How do you see bank loyalty Don Hughes, Kobie Marketing’s Chief Information Officer, recently talked (usage fees charged to merchants), was passed in 2010 and multi-product programs fell out of favor. The best example of an enterprise loyalty environment would be Capital One, leveraged by the Tesus loyalty pro- What are some of the biggest loyalty challenges facing the financial services industry? Technical complexity and auditing requirements, as well as security and compliance costs, are on the rise costs are on the rise. Every year, additional gram that I designed while at that company. audit requirements for PCI, DSS What has impacted loyalty programs within the last 2-3 years? of performing loyalty services. From an overall industry perspective, the global economic crisis was probably the most significant negative impact with banks being pulled out of service as a result of their debt-to-asset ratios. Regarding loyalty programs specifically, the Durbin Amendment had one of the largest impacts. Debit card-linked loyalty programs were quite widespread prior to 2010 – and the fees merchants paid partly funded their success. However, or SSAE16 increase the base cost At the same time, programs are experiencing revenue leakage due to the decrease in earnings from interchange reductions. All of these factors present significant challenges to the industry. most financial services loyalty programs have now eliminated them and Service providers also need to get have sought additional services, such as couponing, discounts and daily smarter about how they opera- deals for their debit card loyalty propositions. continued on page 24 KOBIE QUARTERLY REVIEW 23
  13. 13. THE EVOLUTION OF LOYALTY continued from page 22 AND MOBILE BANKING FROM Conclusion INDUSTRY PERSPECTIVES Will mobile banking apps become the most frequently downloaded apps in Apple’s app store or Google Play, rivaling the coolest games? That’s unlikely, at least anytime soon. But the good news is that the financial services An Interview with Michael Hemsey industry is clearly beginning to think creatively and is rapidly learning from other industry mistakes and successes. Whether 2013 or 2014 becomes the year where mobile banking apps take on Siri-like qualities and include social media real-time engagement also remains to be seen. But with thought leaders in the financial services, loyalty and IT industries addressing these challenges, mobile 2.0 for banking can’t be too far off. Since the vast majority of Americans use traditional banking services and more than half are smartphone owners, mobile engagement is becoming increasingly commonplace. Ultimately, it’s up to consumers like us to help banks navigate our mobile needs and wants. Considering that the average doing so. Granted, bank experiences or less. Spending time on a mobile cost per consumer transaction aren’t motion picture events, but the banking app is not like shopping on same social media engagement rules the Gap’s app. Your thoughts? at a brick-and-mortar bank is $4 compared to just $.08 on a mobile device, banks should be strongly incentivized to still apply. Imagine a Wells Fargo customer who has a great banking experience. Why shouldn’t that individual earn rewards via a loyalty program, Given banking’s importance, you would expect people would spend more time on mobile bank apps. But it comes down to how the informa- convert more of their custom- promoting his or her experience and ers to the mobile channel. encouraging others to join? But how successful are they in that The restaurant industry is also a it let users pay bills (usually, that’s a endeavor? And how can banks turn mobile leader. Restaurants, of course, given)? Does the app let customers what is typically a 2-minute-or-less lend themselves to social experienc- receive offers based on their stand- experience (a mobile banking trans- es, starting with the fact that people ing and relationship with the bank? action) and make it last 15 minutes like to take pictures of their food, Can they access mortgage informa- or longer, driving engagement and who they’re dining with and where tion? Wealth management services? newfound loyalty? they’re eating. TGIF and BJ’s restau- An auto loan, a credit card, a debit rants are strong examples of social card? Banks can and should do a lot more, says Kobie’s president, Michael Hemsey. The following interview with continued from page 23 tionalize the work they do on behalf of financial services clients. “Doing less with more” is here to stay and the reality is that it’s extremely easy, especially within a single-product loyalty environment, to switch from one loyalty provider to another. There are a lot of loyalty startups that will disappear within a few years-as getting into the game is so difficult today, compared with five or ten years ago. The bottom line While the global economic crisis forced many bank closures and the resulting Durbin amendment (an addition to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010) has severely reduced merchant interchange fees, these challenges have also forced some new loyalty program innovations. But that innovation isn’t enough. Financial service loyalty programs must push beyond existing thinking to drive engagement with increasingly tech-savvy customers. integration and banks should follow their lead. tion is presented. Does the app allow users to set spending goals? Does Most banks have yet to take the mobile maturity step to make their Michael reviews which industries The telecom space is more chal- app a place to spend 20 minutes and are doing mobile well and how the lenging. People don’t think of their have fun. banking sector can best emulate computer files or Internet products their success. the way they think about going to a What kind of industries are ahead of banks in term of mobile apps, and where can they look to learn? From a social perspective, the entertainment industry does rather well. Take movie theater apps. One of our clients does an excellent job incentivizing users to promote its brand. Consider the very specific use-case: consumers see a movie. Then they post their ticket stubs on social me- restaurant. And yet companies like Verizon and Comcast would love to find a way to have that social integration work with their brands. Although 20 minutes might sound like a long time to be using a mobile banking app, the average American spends over two hours per day on actual mobile gaming. With that in mind, one-third of an hour doesn’t That said, existing bank app func- sound so hard to achieve. How else tionality is already solid. But more can other industries help banking work is required. Mobile features like reach these lofty mobile goals? scanning and voice-activated questions and answers (like asking Siri where the nearest Wells Fargo ATM is) must be included. In Mobile Banking and the Future of Loyalty, Michael Hemsey discusses the merits of the financial management app, Mint, and how it can be dia and provide reviews of the film, on their app, but often the engage- consumer engagement. while they earn loyalty currency for KOBIE QUARTERLY REVIEW further enhanced, driving ROI and sharing them with friends. All the 24 Banks want customers to spend time ment lasts for as little as two minutes KOBIE QUARTERLY REVIEW 25
  14. 14. ABOUT THE AUTHORS Michael Hemsey, President As President of Kobie Marketing, Michael is responsible for leading all facets of the loyalty marketing organization including business development, IT initiatives, client services, as well as the overall direction of the Kobie brand. For 20 years, Michael has cultivated a rich background in client services, product development, marketing, technology and operations through several key posts. Prior to Kobie Marketing, Michael was Executive Vice President of TSYS Loyalty (formerly ESC Loyalty) and led the loyalty marketing implementation and relationship management teams serving the world’s largest issuers and retailers. KOBIE IS THE LOYALTY EXPERIENCE COMPANY Bram Hechtkopf, Vice President of Business Development and Marketing Bram leads the “marketing of Kobie Marketing”. He consults with current and prospective clients on new business opportunities, helping to develop customer retention and loyalty marketing strategies and solutions that drive increased retention and spend. Following in the footsteps of his father, Kobie’s founder, Bram is eager to continue Kobie’s vision of technology and data analytics as enablers Everything we do is customized to your brand, your objectives, and the specific needs of your customer base. We execute flawlessly within each of our three disciplines — strategy, technology, and program management. of leading-edge marketing executions for world-class customer loyalty initiatives. 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. David Andreadakis, Vice President of Loyalty Strategy Dave is focused on business development with a bend 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, analytical, behavioral and platform basis. Prior to Kobie, Dave lead Business Development for AIMIA and played a key role on the Loyalty Strategy team. His primary focus was to understand markets, ensure the optimal selection of strategies and tactics that will meet the needs for clients, and then design programs that drive maximum value. Don Hughes, Chief Information Officer Don serves as Chief Information Officer and leads the development, product innovation and IT operations efforts of Kobie Marketing. Drawing from a wealth of technical and creative problem-solving skills acquired during the past 15 years, Don works closely with Kobie’s clients to deliver new customer loyalty management solutions that provide differentiating value. How can we help you? We’d love to chat. 26 KOBIE QUARTERLY REVIEW 800-821-7892
  15. 15. 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 real customer experience 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-in-class loyalty marketing technology platform. Find out more at