1. Brands create loyalty programs to retain profitable customers, shift customers to be more profitable, acquire new customers, and reconnect lapsed users. Loyal customers provide competitive advantages like emotional attachment and advocacy. 2. Common loyalty program structures include collecting points for purchases, signing up for membership programs, using punch cards, and occasional bonus rewards. However, modern consumers expect more personalized, easy to use, and community-focused programs. 3. The ideal loyalty program from the consumer's perspective is easy to use, provides good value, is personalized, and feels modern. This can help customers feel like peers rather than numbers and foster a sense of community with the brand.

1. “Modern Loyalty”
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2. What do brands get out of
“loyalty programs”?
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3. For brands, “loyalty” means:
- Retain your best, most profitable customers
- Shift “good” customers to become more
profitable in both the short and long term
- Acquire customers with potential to become
best customers
- Reconnect lapsed users with the brand
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4. In addition, active consumer loyalty provides a
significant competitive advantage:
- Customers have emotional equity in your
brand(s)
- You are their first choice
- They look to you to solve their needs/problems
- They share information with you
- They ask for guidance
- They discuss your offering - not your prices
- They positively suggest how you can improve
- They want you to succeed
- They advocate ‘their’ brand to others
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5. Let’s talk about how loyalty works…
- What are some common “loyalty program”
structures?
- What would the “ideal” loyalty program look like
from a consumer’s POV?
- “Social Loyalty” and Gamification
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6. What are some common
“loyalty program” structures?
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7. Common loyalty approaches:
- Collect Points, Rule the World
- Sign Up for Stuff
- Donut and Coffee Shoppe Punch Cards
- Lagniappe: “A little sumpin’, sumpin’”
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8. COLLECT POINTS, RULE THE WORLD
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9. SIGN UP FOR STUFF
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10. PUNCH CARDS
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11. LAGNIAPPE: “A LITTLE SUMPIN’, SUMPIN’”
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12. But modern consumers have different
expectations for loyalty.
In part, because they have higher hopes
for brands.
Also, because they have cynical
expectations of what happens when those
hopes smack into reality.
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13. “While earning and redeeming points are the most
important attributes for choosing hotel and airline
loyalty programs, travel brands should focus on
enhancing the customer experience, making
rewards personally meaningful, encouraging
loyalty with unexpected rewards if they want to
boost consumer engagement, and ultimately
building long-term customer relationships.”
Deloitte Survey and Report: “Developing a blueprint for reinventing loyalty programs.”; 1/23/13
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14. The “ideal” consumer program is:
Easy
Gives value
Personalized
Modern
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15. The end result: Community
If it is easy, and personal, and modern,
it’s something I would be loyal to,
(even if I have to jump through a few hoops).
Because that means you give me what I want, and
make me feel like a peer, not a number.
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16. This is, of course,
VERY DIFFICULT
for most brands to do.
Which means new approaches and
software platforms have sprung up to
make it “easy” for brands to create loyalty
programs, using social media and
“gamification”.
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17. Social Loyalty and Gamification
Right now, there are a variety of startups who try
to make it easy for brands to reward any aspect of
consumer behavior. Companies include BigDoor,
Badgeville, CrowdTwist and others.
Let’s walk through a quick CrowdTwist example.
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18. The basic structure of this example is
“Collect Points.”
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19. But you collect points for many more activities…
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20. While some of these activities are pretty
simple, they also are useful for the
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brand.

21. The points can be exchanged for
products, cool things, or event
access.
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22. People share their behavior on their networks,
earning more points, and spreading awareness.
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23. Some other examples of
gamified /social loyalty.
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24. FourSquare Mayor deals are
one evolution.
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25. 25
Tasti-D-Lite Punch Card, modernized
with social media and Foursquare.

26. BigDoor “badging” and MLB Gameday
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27. Thanks!