Loyalty Looking Forward: Whitepaper


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The first paper in the Knowledge Series from the first club™ examines how consumer needs and technology have evolved to create a new demand for digital rewards.

Today’s consumers are seeking more relevant and redeemable rewards at their fingertips, and the implementation of loyalty strategies that leverage the latest technology to meet consumers’ needs and desires will be the loyalty programs that dominate tomorrow…

Driven by forward-thinking companies in step with technology and consumers’ constantly evolving attitudes, to provide relevant, enticing digital rewards, welcome to The State of the Loyalty Industry and its Digitized, Instant Future.

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Loyalty Looking Forward: Whitepaper

  1. 1. Loyalty: Looking Forward The State of the Loyalty Industry and its Digitized, Instant Future By Denis Huré and Jill Goldworn Part 1 of the Knowledge Series from the first club™ © 2011 the first club™ - www.thefirstclub.net
  2. 2. In any industry, loyal customers are the cornerstones of successful businesses. In consumer-centric industries, the loyal customer is one that is familiar with an offered product or service, inclined to have a positive impression of the company or brand, and represents the best opportunity for a repeat transaction. For B2B companies, the relationships established with loyal clients will often lead to more clients, and repeat business is the foundation upon which growth is built. These are commonly accepted beliefs of business and are the rationale behind loyalty programs. Loyalty programs are generally acknowledged as necessary and useful, yet everyone seems to have a different opinion on their inherent value. Are they holdovers from a bygone era, where a more diverse marketplace and a less bargain-thirsty customer base necessitated greater effort to create and maintain loyal customers? Or are they integral business tools, still conferring considerable advantages on those companies that wield them well? More importantly, do loyalty programs work in their current state? Is it still effective to offer pieces of main product as an enticement for repeat business? The simple answers are “sometimes” and “somewhat.” The solutions to the challenges faced by loyalty programs and the way forward for the loyalty industry lay in the digital realm: the adoption of digital rewards, the acknowledgement that consumers are seeking more relevant and redeemable rewards at their fingertips, and the implementation of loyalty strategies that leverage the latest technology to meet consumers’ needs and desires. Let’s look at the numbers: some 71% of marketing decision makers said that loyalty schemes have become more vital to successful business over the last two years, according to a study by GI Insight released in early 2010*. The total loyalty market in the US remains incredibly robust, as measured by Colloquy1 at 1.807 billion individual programs in 13 different segments. Yet a survey by the Chief Marketing Officer Council found that 32% of consumers feel that program participation holds “little to no value,” while 37% believed individual rewards held even less value, all of which presents a loyalty paradox. These findings tell us is that loyalty programs are at a crossroads, and that while they seem certain of occupying a position of importance for most businesses, they will take a much different form in the future than they do today. Consumer needs have evolved, technology has evolved and so will loyalty programs, driven by forward-thinking companies in step with technology and consumers’ constantly evolving attitudes, to provide relevant, enticing digital rewards. Denis Huré & Jill Goldworn the first club ™ © 2011 the first club™ 2 The State of Loyalty, today and tomorrow Loyalty: Looking Forward, the State of the Loyalty Industry and its Digitized, Instant Future
  3. 3. When American Airlines rolled out the first frequent flyer program (FFP) in the early 1980s, it was hailed as a giant leap forward in loyalty. Programs to induce repeat business had been around for years, of course, but the concept of awarding miles to loyal flyers in a newly-deregulated passenger aviation market was exciting. Miles still remain the most recognizable loyalty unit, and their influence has spread beyond the bounds of the airline industry into financial services (co-branded credit cards), retail partnerships, and even social media (Virgin America rewards frequent flyers who use the Foursquare competitor Topguest with miles)2 . Though each of these is an approach unique from the others, the dynamic remains the same: consumers are awarded miles or points, the unit of accrual, for participating in a certain activity. This parallels with other loyalty units in related industries. Hotel loyalty programs, or Frequent Guest Programs (FGPs), award points to be used toward room nights. Retailers typically award units toward the price of a product. Loyalty Programs Were Created Equal, or Were They? The significant aspect is that across all industries and types of loyalty programs, the end goal is always the same: accrue enough units to earn one free main product or service. Though cross-promotion and strategic partnerships exist, loyalty programs are overwhelmingly geared toward to the accrual of units, not the redemption of units. This distillation of the loyalty program is perhaps inevitable – after all, “buy two, get one free” is the simplest and best understood form of loyalty strategy – and it highlights its long-term nature. More recently, membership in the loyalty program has been leveraged as a promotional tool and has been used as a vehicle to attract customers into a relationship with short term tactical incentives to drive attention, engagement and action, yielding immediate results. In this case, participation often translates to upgraded service of one type or another. Airlines often use this model in their FFP; those frequent flyers enrolled in a carrier’s FFP enjoy lounge access, a reprieve from certain fees, and preferential treatment in a number of ways before, during and after flight. Having said that, this practice, while newer than miles accrual, is also fading as the ancillary revenue derived from these fees in recent years has become more central to the airline operating model. Hotels have also pursued FGPs for years, though usually without a robust loyalty reward system. These traditional programs have their place, and most enjoy widespread use in their respective industries. And this shouldn’t imply that there is no room for improvement. In fact, the progression of new loyalty strategies, including a more incremental approach to reward redemption and leveraging the value of digital media and other content to create new and more attainable rewards, is well underway. That evolution is being driven by changes in lifestyle needs and attitudes among customers. © 2011 the first club™ 3 Roots and Relics of the Loyalty Program Loyalty: Looking Forward, the State of the Loyalty Industry and its Digitized, Instant Future
  4. 4. The exasperation of the average loyalty participant is well-documented. After all, stories of loyal but frustrated customers make good newspaper copy. But if so many consumers were unhappy with the limitations of their loyalty program’s redemption policies, the programs themselves would be long since defunct. In fact, the opposite is true; loyalty programs are as popular as ever, and the recent recession has only heightened this trend. It seems consumers are driven by the value they receive from the loyalty programs, and not necessarily by the nuances of the redemption process. According to the Gallup Management Journal*, “Brands that deliver functionally and emotionally for customers result in indexed loyalty scores three times higher.” Unfortunately, a number of aspects of the evolving consumer attitude have contributed to the decline of perceived value of loyalty programs, including a lack of relevant and attractive redemption options, a dissatisfaction with the time frame associated with certain accrual systems (FFPs first and foremost), and a certain level of frustration with the often strict redemption processes. Without a change in approach, the loyal consumer will eventually outgrow the loyalty program. The Perception of Value in a Loyalty Program It’s important to remember, however, that consumers are willing to be loyal to brands and companies – but if they participate in a formal reward program, they want to be able to claim their earnings quickly and use them in ways that are appealing, relevant and practical to their lifestyle. Personally relevant deals are the second most frequently chosen reason for spending more with a company, mentioned by 48% of people surveyed in new research by Ipsos Mori and The Logic Group3 . The Loyal Customer The explicit goal of any loyalty program is to develop loyal customers. That’s a no brainer. And the best way to achieve this is by encouraging customer engagement, which yields not only repeat business but trust, advocacy and passion for the brand – all of which are revenue multipliers, and another no brainer. The best way to achieve this significant consumer engagement is to recognize what the loyal customer wants and who the loyal customer is, and to meet their needs. That, it seems, is not such a no-brainer. Today, consumers want things they can use - relevant, valuable, and instantly redeemable digital rewards. © 2011 the first club™ 4 “Today, consumers want things they can use - relevant, valuable, and instantly redeemable digital rewards.” “The best way to achieve this significant consumer engagement is to recognize what the loyal customer wants and who the loyal customer is, and to meet their needs. That, it seems, is not such a no-brainer.” Loyalty: Looking Forward, the State of the Loyalty Industry and its Digitized, Instant Future
  5. 5. Where loyalty programs can differentiate themselves in the digital arena is by embracing emerging technology and offering rewards on a mobile platform. This also represents a significant growth area for loyalty programs. Zoomerang surveyed US mobile phone owners on behalf of mobile marketing firm Hipcricket in October 2010 and found that more than a third of respondents said they would be interested in a mobile loyalty program from a trusted brand. But only 9% were already participating in such a program4 . © 2011 the first club™ 5 Today (and tomorrow’s) consumers increasingly want to spend their loyalty accruals on digital content. The proliferation and revenue-potential of digital content like eBooks, music tracks, games and mobile applications has opened up an entirely new market for loyalty unit redemption. Just as co-branded credit cards revolutionized the accrual aspect of loyalty programs several decades ago, the ability to earn points toward valuable digital content is set to revolutionize the redemption aspect of these same programs in this decade. The Age of Digital Content Digital content has become highly attractive and effective as a loyalty reward for three reasons: 1. There is more digital content currently available for sale in the overall market than at any time in history, resulting in a consumer base that is very familiar with the selection of digital content. New technologies, increasingly sophisticated mobile devices, and the increasing rate of consumer adoption have all supported this trend. Consumers now want to interact and access information at a time and in a way that suits their needs – not someone else’s. 2. Digital content has been monetized to an unprecedented degree. The current information age is not defined by Napster-style sharing, but by the pay-to-play merchandizing model of Apple’s App Store or Amazon. Consumers are primed to pay, and so they assign more value to the earned attainment of digital content. One familiar set of figures perfectly illustrates this trend: IFPI reported a decline in global music sales in 2009 by 16% to $16 billion, while digital sales grew by 14% to $4.2 billion in 2009, representing ten times the value of the digital market in 2004. 3. The quality of apps, games and even traditional media like music and movies has increased dramatically, again increasing the value assigned to them when used as rewards. Of course, most airlines, retailers and hotels are not in the business of creating digital content, not for their own loyalty programs or for any purpose. This is the limitation inherent to using digital content as a reward incentive – it requires a reputable partner and provider. Digital Love Loyalty: Looking Forward, the State of the Loyalty Industry and its Digitized, Instant Future
  6. 6. Content and the right content partner(s) is the most important aspect of implementing digital rewards, and this is where relevance comes into play. Consumers will not be incentivized by an offering that is not attractive or relevant to them, and so whichever provider a company partners with to supply content becomes paramount to the participation and redemption rates enjoyed by the loyalty program and its members. Companies that facilitate digital loyalty rewards often provide convenient, well-known and current catalog of content that consumers will immediately recognize and value. In other words, offering digital content that consumers will really want to redeem their reward points for is key. Give Consumers Content They Want According to the Pew Internet & American Life Proj- ect, 65% of online Americans have paid for intangible digital content over the web, just under the 66% who told Pew earlier in 2010 they had made an ecommerce purchase of physical goods5 . More importantly for loyalty programs, however, is the fact that these consumers purchased a spectacularly wide array of digital products. This means that loyalty programs need not be pigeonholed by a selection of digital reward offerings that might not suit their customers’ tastes. That is, digital content that consumers find relevant (and therefore useful as a loyalty incentive) is not limited to music and movies; it spans a range of offerings, including apps, news, software, eBooks, audio books, digital magazines and games. Have Content, Now What? It’s clear that loyalty is in a state of flux, is evolving across sectors. Each sector will approach the new type of loyalty program from a different direction, as consumers have differing expectations of what a digital-reward-centric loyalty program should entail, depending on whether it is offered by a large airline or their local supermarket chain. A few industries deserve deeper examination, as they utilize loyalty programs to the furthest extent, and here we take a closer look at these industries: airlines, hotels, and retail. Downloading Digital Content: By The Numbers Music, software, and apps are the most popular content that internet users have paid to access or download, although the range of paid online content is quite varied and widespread, as evidenced by a 2010 survey from Pew Internet & American Life Project: 33% of internet users have paid for digital music online 33% have paid for software 21% have paid for apps for their cell phones or tablet computers 19% have paid for digital games 18% have paid for digital newspaper, magazine, or journal articles or reports 16% have paid for videos, movies, or TV shows 15% have paid for ringtones 12% have paid for digital photos 11% have paid for members-only premium content from a website that has other free material on it 10% have paid for e-books 7% have paid for podcasts 5% have paid for tools or materials to use in video or computer games 5% have paid for “cheats or codes” to help them in video games 5% have paid to access particular websites such as online dating sites or services 2% have paid for adult content © 2011 the first club™ 6 Content is King Loyalty: Looking Forward, the State of the Loyalty Industry and its Digitized, Instant Future
  7. 7. Airline FFP revenues can be divided into two distinct cat- egories: currency-based revenue (or the sale of points), and fee-based revenue. With the airline industry adopting tighter loyalty currency accounting standards since the International Financial Reporting Interpretation Committee’s IFRIC 13 was instituted in 2008, airlines now must offer attractive redemption options for orphan points in order to realize the revenue from their initial sale to partners like co-brand credit card banks. InarecentsurveyconductedbyAirlineInformation/Collinson Latitude, loyalty managers representing 40 international airlines were asked to describe their strategies to generate more revenue from their loyalty program members. Interestingly, 27% of FFP managers planned to increase their number of partners and encourage both earning and spending of points, while another 24% of managers plan to emphasize non-flight partner point redemptions only. Manyairlineshavealreadyinstitutedalternativeredemption options for miles, perhaps the most recognizable is upgrades, but also rental car fees and other non-air services. Some have even integrated mile redemption into their onboard retailing strategies. But few have engaged in the sort of redemption-friendly, high-yield digital rewards that are poised to constitute the new loyalty landscape. © 2011 the first club™ 7 Airlines are the undisputed kings of loyalty programs. Every major airline has a frequent flyer program, with the largest (the new Delta/Northwest) boasting more than 81 million members. American Airlines AAdvantage®, the original FFP, currently has 62.8 billion members, who, in 2009, redeemed 150 billion miles for 6.9 million awards. These are big numbers, and FFP participation represents an overwhelming percentage of the larger passenger aviation market. Yet this is the industry that garners the most consumer complaints about limitations and restrictions on award redemption. Even reporting on the industry’s reward availability is fractional at best, due to a lack of transparency among airlines. Airlines normally consider member accounts with enough points for the minimum flight redemption in an FFP to count against their liability calculations. Therefore there are a significant number of so called “orphan points” outstanding in accounts belonging to members that have not earned enough for flight rewards. Orphan point holders, according to airline consultancy Airline Information “represent a significant revenue growth opportunity for frequent flyer programs.” The Problem with Orphan Points and Loyalty Programs In an effort to address consumer concerns airlines have generally liberalized their FFP reward restrictions over the past several years, expanding expiration periods and adding last-seat redemption options. However these improvements although welcomed by genuinely “frequent” passengers, do not completely address the significant and growing segment of orphan point holders who, according to Airline Information, can easily exceed 50% of an FFP’s membership base. Coupled with the fact that 54% of all airline loyalty points are earned from non-flight activity6 (led by the financially lucrative co-branded credit card), orphan point holders represent a major portion of an airline loyalty program’s bottom line. “Air travel is a largely commoditized product, and we see tremendous revenue growth potential in the business of currency-based loyalty.” Airline Information Airlines Loyalty: Looking Forward, the State of the Loyalty Industry and its Digitized, Instant Future
  8. 8. How Will Airlines Integrate This Into Their Existing Loyalty Programs? Third-party providers will play a leading role in this process, as airlines will find the process of partnering with key content partners expensive and time consuming. Ultimately, though, the modernization of FFPs to include digital rewards will substantially decrease airlines’ exposure to financial liability (by encouraging the incremental redemption of miles), will resonate with consumers who clearly desire more value from their loyalty program participation, and will generally encourage more repeat business in a market increasingly defined by price-based competition. “It’s bigger than an accounting liability issue, airlines are in the loyalty business whether they like it or not, and the bottom line is that loyalty is driven by rewards.” According to the Airline Information/Collinson survey, 24% of airlines want to increase their profit per FFP member. The most effective way to do that is to engage a largely ignored segment of most loyalty program memberships by offering small transaction rewards. That is, low-level redemption rewards that can be redeemed often and while members are travelling. © 2011 the first club™ 8 “Revenue from redemption fees and selling elite levels etc are also lucrative and can be realized immediately due to their non- currency affiliation. But an FFP serious about sustainable ancillary revenues needs to take care of its core business, rewards business of currency-based loyalty,” Airline Information AIRLINE LOYALTY PROGRAMS Collinson Latitude research in conjunction with Airline Information, October 2010, revealed that: • 100% of airline industry respondents wanted to have more redemption content in their portfolios • Almost 50% of respondents have redemption offers which deliver them profits rather than costing them money • 1 in 10 industry respondents are not communicating with their customers about their redemption offers • Two thirds feel that customers who engage with redemption programs are more loyal to the core loyalty program By The Numbers: Frequent Flyer Programs Delta Air Lines SkyMiles ® - 81 million members in May 2010 American Airlines AAdvantage ® - 62.8 million members in May 2010 British Airways Executive Club ® - 5.1 million members in October 2006 United Airlines Mileage Plus ® - 56 million members in May 2010 Lufthansa Miles&More ® - 15 million members since 2008 Air France/ KLM Flying Blue ® - 13.5 million members in September 2009 Virgin Atlantic Flying Club ® -1.4 million members in March 2008 Airlines Loyalty: Looking Forward, the State of the Loyalty Industry and its Digitized, Instant Future
  9. 9. These two statistics alone indicate that hotel loyalty programs, like airline programs, would be very well served by adopting redeemable, relevant rewards, including digital rewards that are delivered to the devices consumers use throughout their daily lives. © 2011 the first club™ 9 The lodging industry is another with a long and successful history of loyalty programs. One of the largest hotel loyalty programs, InterContinental Hotels Priority Club Rewards ®, serves more than 52 million members who account for nearly a third of the chain’s total hotel stays. Hotels have followed the airlines into profitable loyalty-based ventures like co-branded credit cards, which have significantly boosted accrual, as has the industry trend toward consolidation, brand segmentation and chain dominance- (loyalty programs are most effective when a brand has a presence in many geographic markets). Hotelloyaltyprograms,however,relymoreontheimproved or increased services that are offered as benefits of program membership. That is, a Marriott Rewards® member enjoys an increased level of service than a one-time lodger simply by participating in the program. Unit accrual is also a component of this strategy, by a notable emphasis has historically been a part of most hotel loyalty programs. Hotels and the Digital Realm Relying heavily on increased services inside the hotel puts hotels at a disadvantage when consumers are shopping. Discounts and savings, according to the CMO Council study, top loyalty participants’ priorities across sectors (at 66%), while “recognition and appreciation” and “more individualized attention” rank toward the bottom (18% and 12%, respectively). To wring the most value out of their loyalty programs, hotels should emphasize reward redemption over preferred service. One way is to engage in digital rewards. This is partic- ularly appropriate for hotels, where there is generally a longer window of time and more channels through which consumers can immediately enjoy their digital rewards. Moreover, as room nights carry a substantially lower av- erage price versus a plane ticket, digital rewards are a more natural analogue, and can be redeemed after a single stay, and are thus perceived as greater value by consumers. Nearly half of all consumers – 47% – said they were more motivated to join loyalty programs that provided instant gratification7 . The same survey by Mintel indicated that fewer and fewer consumers found value in loyalty programs that award travel units, like airline miles or room nights (just 7% responded that such rewards would be an incentive to choose one loyalty program over another). What Consumers Want “In any sector that utilizes loyalty marketing, loyalty programs are fast becoming a very important part of the relationship with the customer,” said Susan Menke, VP and behavioral economist at Mintel. “It seems that now is the time to focus on adding or improving loyalty programs to help engage customers and maintain, and even grow, their relationship with the post-recession consumer.” Loyalty program members are quite often the most profit- able customers for marketers, and those who use loyalty programs tend to be more brand-loyal,” adds Susan Menke. “By personalizing redemption opportunities and offering easy to redeem savings, companies can lure and retain more customers.” AT A GLANCE: Top 10 Global HOTEL Loyalty Programs* 1. InterContinental Hotels Priority Club ® Rewards: 52 million members 2. Marriott Rewards ®: 33 million members 3. Hilton HHonors™: 26 million members 4. Starwood Hotels Preferred Guest ®: 25 million members 5. Hyatt Gold Passport ®: 10.2 million members 6. Best Western Rewards ®: 11 million members 7. Choice Hotels Choice Privileges ®: 10 million members 8. Wyndham Rewards ®: 8 million active members 9. Carlson Hotels Goldpoints Plus ®: 5.5 million members 10. Accor A-Club ®: 5 million members in 2 years * as at Dec 31, 2010 Hotels Loyalty: Looking Forward, the State of the Loyalty Industry and its Digitized, Instant Future
  10. 10. Retail loyalty programs offer a more straightforward proposition, with many consisting of direct discounts in exchange for membership. One of the largest retail loyalty programs, Borders Rewards (38 million registered members in 2010), operates in precisely this way; unit accrual is not a substantive aspect of the program. In a sense, this would make retailers the leaders in reducing the lag time between accrual and redemption – a consumer redeems the rewards of membership with every purchase. This approach, however, reduces the amount of choice available to consumers, thereby limiting redemption in a different way. Retailers could benefit from offering digital rewards as a way to expand the reach of their brands and loyalty programs, to gain far greater penetration and cross-sell opportunities through promotions, and to create higher margins from capturing consumer preferences and other information. Some retailers are taking this a bit farther by establishing strategic partnerships through their loyalty programs. This enables them to expand the reach of their brand, expands the base of consumers participating in the loyalty program, and increases the value presented by such a program. Interestingly, according to Tecmark Loyalty8 , this trend has not extended to an expansion of the existing cobranded credit card partnerships currently employed by many retailers. These are on the decline, and may not play as large a role in the future of retail loyalty programs. Social, Mobile and Retail Social media, digital rewards, and mobile applications will, however. The same Tecmark forecast predicts that retailers will dive deeper into – and integrate more fully – social media as a way to promote loyalty and customer engagement. In this environment, the introduction of digital loyalty rewards will reap significant benefits, including more frequent interaction among consumers, loyal consumers becoming advocates for the brand, and potentially more online sales. © 2011 the first club™ 10 Social Networking and Loyalty* 22% of consumers think social media sites help them make good decisions about purchases, and an equal number say that social networking sites help them make good decisions about their life in general. 43% of social networkers are using social networking sites for purposes other than connecting with friends and family. The diverse number of ways people use such sites leaves a window open for financial institutions to make meaningful connections with unlikely customers and build loyalty with current ones. “Nearly one in three social network users value the opinions and recommendations of family and friends over industry experts, or any other source of information.” Mintel, June 2010 Retail Loyalty: Looking Forward, the State of the Loyalty Industry and its Digitized, Instant Future
  11. 11. © 2011 the first club™ 11 Loyalty is a key aspect of all businesses. Every enterprise, in every industry, is searching for repeat customers upon which growth can be built. Loyalty programs, designed specifically to facilitate this search, can often be caught up in the strategies of the past, but they are changing in the direction of consumers’ desires – and that direction is digital. All of the data – all of it – points toward digital rewards being the future of loyalty programs. Digital rewards encourage incremental redemption, which delivers value to the consumer and reduces the provider’s liability from unredeemed points. It creates a market of relevant, exciting rewards with low cost to the company and high perceived value to the customer. Digital, incremental rewards help develop intimacy with the customer while providing businesses with the tools to recognize their interactions and experiences and collect valuable customer data. Businesses can then use these insights, along with the improved consumer relationship that comes with them, to directly improve profitability. 68% of consumers still feel that a loyalty program can strengthen their relationship with the brand. 48% spend more with a company whose loyalty program offers personally relevant rewards or deals. 65% have purchased digital content online, indicating that digital rewards contain significant value for this segment. Overall, this process creates more engaged members and reduces currency liability by providing a unique way to “burn” points at a much lower and more attainable redemption level. A digital loyalty program is versatile and flexible, and expands brand association in a positive direction – into the black. The state of loyalty may be strong, but its future is digital. Like there was any doubt. The New Face of Loyalty Loyalty: Looking Forward, the State of the Loyalty Industry and its Digitized, Instant Future
  12. 12. Denis Huré, CEO and co-founder of the first club™ Denis was born in 1965 in France. His corporate background has included positions with KPMG, Computer Associates and Claris (Apple’s Software subsidiary). He has undeniable expertise in marketing, international sales, finance and emerging technologies. In 1994, Denis joined Interplay Entertainment Corp, one of the major video game publishers at the time. He was given the task of handling the European setup as well as the day-to-day running of their licensing division - Interplay OEM, Inc, by its founder, Jill Goldworn. Denis was instrumental in the growth and international development of this group. In 2002, Denis and Jill both left Interplay to join forces and set up The Licensing Agency Inc., (TLA). TLA is an international marketing services agency specializing in digital promotions and brand development. Denis’ and Jill’s integrity, knowledge and hard work enabled them to develop a strong legacy in the world of entertainment promotional marketing. Jill Goldworn, president and co-founder of the first club™ Jill has experience operating OEM and Premium sales divisions in North America, Europe and Asia, as well as considerable expertise in licensing and merchandising. Her licensing industry tenure began in 1988, while completing her Master in Business Administration at the University of Miami. Jill had the opportunity to meet, work with and subsequently license the name and works of James A. Michener, author of more than 30 books of fiction and non-fiction, and develop a board game based on his novels – ‘Bestsell’r: The James A. Michener Game’. Parlaying this experience into a position with GameTek as Director of Market- ing began her impressive career with the entertainment licensing industry. In 1991 Jill moved West to become the Director of OEM Sales and Licensing at PC Globe Inc. From 1992 to 1997 Jill was Vice President at Interplay Entertainment Corp. and then founder and President of Interplay OEM, Inc. a wholly owned subsidiary of Interplay from 1997-2002, where Jill and Denis began working together. After ten years running the most profitable division of the company, Jill teamed up with Denis to set up international marketing services agency The Licensing Agency Inc., (TLA). © 2011 the first club™ 12 Denis Huré T. + 44 (0) 203 318 3103 E. denis@thefirstclub.com Jill Goldworn T. + 1 8056880344 E. jill@thefirstclub.com About the Authors Loyalty: Looking Forward, the State of the Loyalty Industry and its Digitized, Instant Future
  13. 13. © 2011 the first club™ 13 the first club™ is the first global solutions provider to present a new, better, and more effective way to offer rewards and build loyalty by delivering relevant, digital content that is instantly gratifying to today’s consumers. the first club™ integrated digital solution can enhance loyalty programs, promotions, incentives and any type of rewards programs by offering the latest in premium content that will engage consumers worldwide. Consumers can access the very latest in digital content including millions of music tracks, mobile phone apps, games, eBooks, audio books, currently avail- able in 12 languages and soon the site will be offering casual games, digital magazines, movies and TV series, to engage with their favorite brands. Using cloud-based technology, the first club™ solutions are easily integrated into existing programs, are cost-efficient and scalable, helps increase customer loyalty and can serve to capture additional revenues. For more information, please visit our B2B site: - http://www.thefirstclub.net and our white label consumer site: - http://www.thefirstclub.com Contact us For any media inquiries, please contact: ThinkInk PR Vanessa Horwell T. +44.203.372.4809 T. +1.305.749.5342 x232 vanessa@thinkinkpr.com For any other queries, please contact your local representative: the irst club™ EMEA Headquarters 1 Lyric Square London W6 0NB United Kingdom T. + 44 (0) 203 318 3103 F. + 44 (0) 203 318 3089 E. contact@thefirstclub.com About the first club™ Loyalty: Looking Forward, the State of the Loyalty Industry and its Digitized, Instant Future
  14. 14. 1. http://www.colloquy.com/article_view.asp?xd=5889 2. http://mashable.com/2010/11/15/topguest-partners 3. http://www.loyalty360.org/industry_news/article/loyalty_360_weighs_in_on_11_key_customer_loy- alty_trends_for_2011 4. http://www.emarketer.com/Article.aspx?R=1008147 5. http://www.emarketer.com/Article.aspx?R=1008145 6. WebFlyer 7. Mintel. http://www.bizreport.com/2010/12/motivate-loyalty-program-participation-with-instant- rewards.html 8. http://www.loyaltymarketing.com/post/Loyalty-Marketing-Looking-Forward-to-2011.aspx © 2011 the first club™ 14 Sources Loyalty: Looking Forward, the State of the Loyalty Industry and its Digitized, Instant Future Copyright © 2011 the first club™. All rights reserved. Designated trademarks and brands are the property of their respective owners. Images used in this whitepaper are the property of their respective owners and cannot be reused or resold by third parties.