Winds of Change for Loyalty Marketing

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Amazon announced it is selling more Kindle books than hardcovers, the US Postal Service is in jeopardy, and Continental Airlines will begin allowing travelers to scan themselves on board flights. As change marches on, what other familiar aspects of our lives will join the milk-man in a mythical global retirement home?

Keep an eye on traditional points-based loyalty programs, because they just might be next.

Points programs have been around for decades because, as my friend Jim Ryan told me, “they work”. Jim, the former CEO of Carlson Marketing, knows this business cold and although we both agree that points-based loyalty currencies are an effective medium to change & measure consumer behavior, the companies which foot the bill for these programs are increasingly opting for something different.

I did a market scan recently and found a few examples of how Loyalty Marketing is being redefined:

  • Ford ran its “Fiesta Movement” campaign (to be profiled soon in Loyalty Truth) over a year ago, recruiting 100 agents to drive a Ford Fiesta and document their experiences through written and video blogs. The results? Ford created over 11 Million social networking impressions, created a 37% awareness of the new car across Generation Y (Millennials), and enjoyed one of the best new car introduction campaigns in years.
  • Tropicana launched Juicy Rewards, a hybrid of the on-carton coupon model which typically requires consumers to enter codes online till their fingers bleed in order to win something of value akin to a paper clip. The difference here? Tropicana has aligned itself with a strong portfolio of merchants offering discounts that equate to 5X the value of the product purchase price.
  • Clorox launched CloroxConnects, a social site that serves three key audiences, consumers, partners, and employees. Better described as an Engagement Platform, Clorox encourages participation from each group and awards badges and recognition rewards based on proprietary game mechanics.

Don’t miss the subtlety of these new loyalty program formats. Each program has well defined business objectives, predictive analytics and financial modeling are used to refine audience targeting, and a loyalty processing platform is needed as the backbone to run the program in most cases.

In other words, the fundamentals to engage, interact with and retain customers remain consistent. The key difference is that instead of keeping score by awarding points, companies are moving towards scoring as much by social behaviors as transactional.

For the past 30 years, Loyalty programs have been designed by Boomers for Boomers. The influence of a digitally connected generation is more apparent than ever, and consumer engagement will only happen if you re-tool marketing strategies to embrace the Millennials and others who want more transparency and immediacy in their brand relationships.

Are you equipped to make these changes?

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The USPS – Death Spiral of an Industry?

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Suppose you had a business whose sales had dropped 13% over the past year, continuing a multi-year sales decline. You’d probably look for ways to run your business more efficiently by cutting expenses. You might even consider reducing your prices to attract more business.

Well if you’re the United States Postal Service (USPS), you have a different take on what to do about a double-digit decline in revenue: you decide to raise your rates to make up for lost income, in some cases dramatically.

According to BtoB Magazine, in early-July the USPS requested that standard-mail letter rates, the kind used most often for commercial direct mail campaigns, be increased 5%. The USPS also asked that standard-mail parcel rates, used to send small-size merchandise and product samples, be raised a whopping 23.3%.

Raising prices to make up for decreasing sales? Is that any way to run a business?

Mail volume is dwindling because consumers are increasingly using electronic communications as alternatives to postal deliveries. That’s an undeniable fact. The proof: from 2007 through 2009, the volume of mail handled by the USPS fell by 36 billion pieces, a 17% decline and the greatest drop in its history.

This year, the USPS is on track to lose a stunning $6.5 billion. Yet, instead of doing something to manage expenses, the Affordable Mail Alliance reports that in 2009 the USPS managed to reduce labor costs by a mere single percentage point, 1%.

I have long been a proponent of direct mail, believing it best to give consumers a choice of communications vehicles. We’ve also seen studies showing that most people still prefer snail mail over e-mail, viewing it as a welcome respite from their clogged inboxes. But this latest plea for another price increase begs the question: At what point does it become cost prohibitive to use a communications medium whose delivery costs can run up to 100 times more than that of its electronic competitors?

I hate to say it, but maybe it’s time to consider eliminating mail—and the USPS—from the marketing mix.

What do you think?

Tom Rapsas is a seasoned Creative Director and Direct / Loyalty Marketing guru. He is also a valued contributor to Loyalty Truth. You can follow him on Twitter: @TomRapsas

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Wise Marketer’s Loyalty Guide: Social Media & Millennial Marketing

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I’m honored to have made strong alliances with respected people in my industry. Though I wouldn’t turn down sensible sponsorship, each of the icons on the right hand panel of the Loyalty Truth are there through mutual agreement, not due to an advertising deal.

Once in a while, one of my strategic partners gives me time on the soapbox. I wanted to share a piece here written about the impact of social media on loyalty and millennial marketing.

This was originally published in the Loyalty Guide, a great publication available from The Wise Marketer which I would encourage you to add to your library. A free 50-page Executive Summary, including chapter samples, table of contents, text searching, licensing and ordering details is available here.



How to earn loyalty from social media and Millennials

With data-driven marketing starting to resemble a mature industry, progress and change are clearly just around the corner, according to Bill Hanifin of Hanifin Loyalty. If you agree that the industry has its origins in the American Airlines AAdvantage programme in 1981, and in light of the first North American credit card rewards programme being launched around 1992, then the industry itself is something like 20 to 30 years old. In which case it’s time to stop leaning on the excuse that “we’re still learning” and assume the responsibilities of loyalty marketing adulthood.

For years, Bill has been asked the question, “Does loyalty really work?” and, with growing patience, he answers the question with a practised response: “Yes, it does work. The concept of measurable marketing programmes that link customer and transactional data is more attractive than ever”. I also explain that the magic of successful loyalty marketing programmes lies in attention to the details of execution, the diligent usage of collected data, and attention to financial measurement.

As Bill has turned his attention to recrafting loyalty programme designs to engage Generation Y, he has noticed that value propositions are changing and the communication channels used to convey promotional messages are also new, untested, and evolving before our very eyes. The key to successful ‘Millennial marketing’ lies increasingly with the effective incorporation of social media tools into our communications plans and, despite what you may read on Twitter, there are not nearly as many ’social media experts’ around the world as you might think.

Loyalty programme sponsors are launching communities, setting up Twitter accounts and Facebook fan pages, and some are even rewarding members with promotional currency for updates on social media sites. With more of this activity being evident in the market now, the new question that he is being asked regularly is, “Is this social media thing here to stay, or is it just a fad?”

That is a valid question on the surface, but his answer is another question: “Do you want to be able to communicate with the 80 million Millennial consumers in the US, a segment which is emerging as the most important economic force in the market, and equal in size to Baby Boomers?”

Of course, implied by his answer is the idea that we don’t have to like social media – and we don’t even have to necessarily understand it – but we do have to admit that social media and social networks are the preferred communication method of the Millennial consumer. While growing rapidly among the 18-29 age group, social media is also making inroads into older demographics as well.

In 2009, there were approximately 40 delegates at a loyalty conference who participated in a Twitter conversation during the conference. This represented about 10% of total attendees and the volume of Tweets during the event was less than significant. Interestingly, almost one year later, Bill made a quick evaluation of the Twitter accounts of those 40 delegates, and found that only a small handful were still actively participating and growing their network. This of course says less about Twitter itself than it does about how the core of the loyalty marketing industry is engaging with social media.

An increasing number of our clients and potential clients with whom we speak are active in social media and inquire about our depth of understanding of the tools. There is interest in incorporating social media into loyalty programme designs. Advertising agencies and specialty ‘new media’ marketing agencies are rapidly taking the high ground in this emerging area of member communication.

So, rather than waste time apologising for social media and wringing our hands over whether Twitter, Facebook, Mixx, StumbleUpon, or Propeller will survive, Bill is listening to clients and learning as much as he can to serve their growing needs.

Fred Reichheld told us long ago that we should listen to our customers to better meet their needs. We need to do the same with our own clients and exercise our own form of retention programme. Some 80 million Millennials may have different tastes from your own generation, but we need to meet them where they are and build transparent and open communication plans to build engagement and engender their loyalty.



This article is an extract from the 30 chapters of detailed coverage in ‘The Loyalty Guide 4′, which is The Wise Marketer’s latest 1,000+ page global guide to customer loyalty and engagement techniques, best practices, models, metrics, practical advice, market data and research. The report provides hundreds of detailed case studies, forecasts, trends, tables and visual materials to support new initiatives, presentations and proposals and represents a complete, portable reference library of customer loyalty, engagement and marketing strategy.

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Living at Wegman’s

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Josh Stevens is the Groupawn, striving to live off Groupons for one year. If he’s successful, Groupon gains additional publicity in extreme fashion, all for the cost of $100,000 – the carrot in front of Josh until May 2011.

I’m neither a “WegPawn” or eligible for any incentive from Wegman’s, but I am considering moving in for the summer.

The Western New York grocery chain is ranked 28th largest in the US and # 3 on Fortune magazine’s list of “100 Best Companies to Work For” in 2010. In real terms they combine the best that Starbucks, Barnes & Noble, Panera Bread, and a host of QSR restaurants have to offer and provide a learning platform for any retailer hoping to drive brand loyalty and customer engagement.

And, Wegman’s seems to be creating its momentum absent of the typical array of grocery rewards programs used by competitors.

The interesting thing from a In the 2010 United States of America, there is an expanding group of people working independently and in collaborative teams to deliver high value at reasonable cost to Corporate America across a spectrum of service offers. I co-founded the Customer Strategy Network with this in mind and believe these consciously organized networks can be the tip of spear to drive innovation and efficiency in our economy over the next ten years. Chris Brogan shares an interesting post today on the meaning of independence in today’s business world which you might want to read to stimulate more thought on this subject.

With or without permanent office space, there is always the occasional need to get work done on the fly – whether on the road or in between business meetings. I don’t think Coworking was part of Wegman’s original business plan, but they offer an ideal platform for people on the move and in the process create customer loyalty for their core business.

Having just toured the East Coast of the US, I’ve had the opportunity to experience the merchandising approach of several grocery chains including Publix, Trader Joe’s, Whole Foods, Harris Teeter, and a few other smaller players. In my opinion, Wegman’s sits above them all in creating grocery loyalty, with beautifully organized stores, reasonable prices, a fantastic array of prepared foods, and a comfortable coffee shop and dining loft where customers can relax over a meal or pound away on their laptops using the free wireless Internet.

Wegman’s is not treating customer loyalty as a fad and as a result has been on the “Best Companies to Work For” list every year since it began in 1998. The company’s mission statement outlines three beliefs that define their viewpoint on what it takes to build customer loyalty and increase intrinsic business value over time. Some excerpts:

  • “We believe that good people, working toward a common goal, can accomplish anything they set out to do”
  • “We set our goal to be the very best at serving the needs of our customers. Every action we take should be made with this in mind”
  • “We also believe that we can achieve our goal only if we fulfill the needs of our own people. To our customers and our people we pledge continuous improvement, and we make the commitment: “Every Day You Get Our Best”"

And the absence of rewards programs?

Wegman’s discontinued a punch-card style Coffee Club in 2007 (but still offers refills for $.50) and has de-emphasized its Shoppers Club, at least in practice. Jo Natale, Director of Media Relations, shared that Shoppers Club “is still very much active”, but “since we moved to consistent, low prices several years ago (in place of short-term sales), there are fewer discounts overall, because our prices don’t fluctuate as they once did”.

Am I a Wegman’s family member? No.

Is Wegman’s perfect? No.

Could Wegman’s be more creative in collecting and using customer data & reinvigorate a fading two-tier customer club? Yes.

Despite areas of potential improvement, is Wegman’s the best example I have seen of a grocery chain delivering on its brand promise & creating grocery loyalty through merchandising and store design? Yes!

Am I really moving in this summer? No, I really like my family and will save Wegman’s visits for those on-the-fly email check ups and when I want some really great food!

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Dogfish Head: Smart Marketing on Beer Money

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Suppose you’re a local craft brewery, without the marketing resources of a Coors, Miller or Sam Adams. You don’t have money in the budget for national TV commercials—or any TV spots for that matter. So how do you get the word out about your award-winning brews?

If you’re Delaware-based Dogfish Head, you make the most of your marketing dollars—by leveraging the Web and social media to help spread the word and turn casual customers into loyal fans.

Now if you’ve ever had a bottle of any type of Dogfish Head, you’ll know that this is one company that knows what they’re doing when it comes to making beer. Dogfish Head brews are consistently tasty, distinctive and often complex in flavor, with notes that are more akin to a fine wine than a beer.

So it probably comes as no surprise that these passionate brew masters have brought the same level of passion and flair to their brand marketing efforts. A few highlights that set the brand apart:

  • A robust Web experience—at the Dogfish site, you can read about the latest Dogfish Head releases as well as happenings at the brewery and company restaurant. What’s important here is the sheer depth of the content. Each brew—and there are lots of them—has it own page, with the story behind the beer, tasting notes and even food pairing recommendations.
  • An active presence on Facebook and Twitter—the key to success on both of these social sites is to keep the material fresh and interact with those who reach out to you. Dogfish Head does both and has over 55,000 Facebook followers and 18,000-plus on Twitter, impressive for a microbrew.
  • Its own video-rich YouTube channelmost of the videos feature founder Sam Calagione with a behind the scenes look at the brewing ingredients and process. Sam is personable, has a good camera presence and his commitment to his craft comes through loud and clear.
  • A community of fans—what better way to develop brand advocates than to develop a place where they can congregate and interact. At the site’s community forum, members can pontificate on issues ranging from music to home brewing to, of course, Dogfish Head’s latest releases.

On a personal note: my favorite Dogfish Head beers are the delicious 60-minute IPA, or when I’m in the mood for a more intense “sipping” beer, the raisin-infused Raison D’ Etre.

Cheers!

Tom Rapsas is a seasoned Creative Director and has helped many brands deliver their message effectively to consumers. Loyalty Truth appreciates this tasty post on the eve of the July 4th weekend. You can follow Tom’s creative insights on Twitter via @TomRapsas

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Office Depot Worklife Rewards Works, Best Buy Reward Zone Fails

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When I’m working with any of my business partners in the Customer Strategy Network, whether from the UK or New Zealand, I’m used to being treated as a second class citizen.

There is something about the British-influenced accent and manner of speech that simply makes everything they say sound more intelligent than my best shot. At the least, we like to jab each other about this in fun, but the truth is, my foreign counterparts have a knack for getting their message across.

Yesterday as I opened white mail from Office Depot’s Worklife Rewards® and email from Best Buy’s Reward Zone®, I was struggling to put my finger on how the two programs contrasted in their management of member communications. My English friend cleared it up for me in one pithy phrase by saying “people don’t like fiddly things”.

When it comes to maintaining customer engagement with rewards and loyalty programs these days, nothing more telling could be said.

That day, I received a threefold brochure from Worklife Rewards informing me that I had earned a reward for $11 and included a plastic card that I could take to the store and use to redeem against purchase. The brochure provided a mini-statement of my account as well as some partner offers from 1-800 Flowers, Ameriprise Financial, Budget & National Car Rental, and LaQuinta.

The communications piece was easy to read, got to the point, and the delivery of the reward got my attention.

On the same day, I received an email from Reward Zone informing me that my account needed activation. This was strange to me as I have had an account with Best Buy since the program opened over 5 years ago. The next day I received an email from Best Buy offering me their cobrand credit card, but referencing a different reward account number. Strange as well.

I’ll save you the details by saying that a duplicate account had been created through one of my purchases and only after multiple attempts to login to both accounts and a phone call to the customer service center was I able to resolve the matter.

The good news is the matter was resolved. The bad news is that I don’t think many people would have taken the time and exercised my patience to endure the process. I’m a Loyalty Geek and had I not been looking into this for business reasons, would have disconnected with Reward Zone and given the program no further attention or energy.

Loyalty program sponsors and operators need to constantly seek out the “fiddly things” in the member experience and seek to streamline and simplify that experience with the objective of keeping consumers in love with their brand and their rewards program. Best Buy had a few too many Loyalty Asterisks in the process for my taste and I’m sure these Fiddly Things would have driven the average customer mad, causing them, in English parlance, to “bugger off”.

Don’t let that happen to your brand.

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Event Marketing to Drive Brand Loyalty

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Passion. It’s what fuels the average person like you and I to enter and train for a local 10K race or even a sprint triathlon.

Passion. It’s what every event sponsor at these races is hoping to stoke up by their presence at the events.

Participating in the Open Water Swim festival this weekend in Ft. Myers, I had another chance to see how well brands were connecting with their most passionate audience. While it sometime seems that everyone and her brother has participated in a triathlon, the reality is that less than 1/3 of 1% of the US population has toed the starting line.

As the Ft. Myers News-Press.com reminded readers over the weekend, “open water is not for the meek”, underscoring that participation in these events is even more selective.

Skinny audience aside, the demographic for participant sports such as triathlon is appealing to brands, and makers of apparel, accessories, and nutritional supplements for this crowd have found event based marketing to be a successful way to build brand awareness, create customer engagement, and set the foundation for longer term customer loyalty.

Hammer Nutrition, ClifBar, and Gu Energy Gel have all successfully incorporated event based marketing as a means to build their business, and one of the highlights of the Ft. Myers swim for me this weekend was connecting with the event team from Muscle Milk to understand their approach.

Made by Cyto Sport, Muscle Milk is a lactose-free, well balanced protein formula that can be used for post-workout recovery or as a meal replacement. The on-site team was friendly, attractive, and fulfilled the athletic image of the people the product was designed to serve. The marketing method of the day was simple – be friendly and give away product samples to participating athletes.

Kudos to Muscle Milk for getting out of the gym and tapping into a huge potential market of multi-sport events. But the simplicity of execution whetted my appetite with a host of possibilities to enhance their presence and create marketing ROI through Muscle Milk’s appearance at the race.

For instance, a simple contest or drawing would have been the path to collecting lots of email addresses and a short survey (what’s your favorite flavor, tell us what races you want to see us at this summer) would create a shortcut to understanding customer preferences.

I also have to think that someone (on or off site) could have been tweeting about the event in the week before and on race day, maybe weaving in a promotion or coupon for followers who joined the conversation.

With many races under budget pressure, sponsorship of the finishing medals would have been an inexpensive way to further stamp the Muscle Milk brand in participant minds. Don’t forget that those finishing medals are displayed with pride for a while at home, generating multiple brand impressions.

I don’t want to give it all away, but consumer packaged goods marketers (CPG) like Muscle Milk could create a virtual location in Foursquare and create a promotion for those that check-in most often throughout the summer’s events. I could also imagine a special Groupon being created or a way for Muscle Milk to participate in the Zavee fun to build customer data and create sales.

Like Tom Cruise once said, multi-sport is a “target rich environment” and everything I’ve outlined here could be easily executed by Muscle Milk at relatively low cost and with measurable return on marketing investment.

Sounds like a podium sweep to me.

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How To Revitalize An Aging Brand

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The Return of the Hoodoo Gurus

I’ve been a fan of the Australian rock band the Hoodoo Gurus since the 1980’s, when they were college radio favorites with hits like Bittersweet, Come Anytime and What’s My Scene. The group’s sound has been described as everything from power pop to garage punk to surf rock, and has aged well—at least if you consult the number of plays the Gurus get on my iPod.

The band has been under the radar in the US for a decade or more—but a few weeks ago, the Gurus put out their first new music release in several years. Titled Purity of Essence, it’s better than anything they’ve done since their heyday—a tuneful, hard rocking set that I’ll be playing loud on my way to the beach this summer. (Recommended download: I Hope You’re Happy.)

The good vibes got me thinking: How do you revitalize and market an aging brand? In this case, how would you bring to life an aging rock band that has been out of sight & out of mind for years?

  • Should the brand image be repackaged for a younger market?
  • Can it be done without putting a lot of money behind the effort?

Here’s my quick take on what the Hoodoo Gurus, or any mature brand, can do to make a go of it in today’s market.

  1. Capitalize on name recognition – Is a rebranding needed? Not here, as the Gurus name has enough cache to bring back happy memories to fans of a certain age. In rock and roll, nostalgia still rules, as evidenced by the fact geezer bands from Rush to Crosby Stills & Nash are still successfully touring. By comparison, the Gurus, now in their late-40’s, are relatively young.
  2. Revitalize the product – The group could have rested on past laurels with a “greatest hits” release, but instead has opted for a brand refresh—a new CD that puts a fresh new spin on their sound. This increases the chance of winning new fans as well as rekindling the interest of older ones.
  3. Connect with thought leaders – While the new release has received good reviews from mostly obscure music blogs (save a glowing review in allmusic.com), they need to connect with the leaders in the space. This includes Rolling Stone and Pitchfork, and of course the leading rock radio outlets including XM and Sirius. Push, push, push, to get the new CD reviewed—and played—wherever possible.
  4. Use social media to get the word out – Social media represents the best way to reconnect with a now scattered fan base. While the band has set up Facebook and MySpace pages, it looks like there could be more interaction from band members, especially regarding fan posts that reference old videos and shows. Make the conversation a dialogue, not just a monologue.
  5. Take the show on the road – There’s nothing like a live product demonstration, especially when it comes to rock-and-roll. So I recommend the Gurus dust off their passports and hit the road for a tour. If they’re anywhere near Philly or NYC, you’ll find me not far from the stage.


Tom Rapsas is a seasoned Creative Director and Loyalty Marketing guru and expresses his own “Purity of Essence”  on all things Customer-Centric on Loyalty Truth whenever we are so fortunate to have some of his time. You can follow him on Twitter here: @TomRapsas

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North Shore Bank Plays Foursquare

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Banks traditionally build brand on the pillars of strength, reliability, security, and service. Few have developed a “personality” brand and I cannot think of one that has created a brand that evokes a passionate response from its fans as do Starbucks, Apple, and Coca-Cola.

Though banks are uncomfortable with the concept, many are essentially in the retail business. In my area of the Southeastern US, Bank of America and Chase have a retail delivery network akin to quick-serve restaurants, pharmacies, and gas stations. There seems to be one on every corner.

Considering the current expansion of branch networks (mostly through merger & acquisition), it makes sense that a more engaging brand personality would be good for business.

That said, it was a refreshing surprise to read an article in US Banker’s May issue describing how North Shore Bank was experimenting with Foursquare and other social media channels to create brand awareness in the communities it serves.

The $1.8 Billion bank based in Brookfield, Wisconsin has a tech-savvy e-Business Coordinator, Tim Gluth who decided to contact the “mayors” of the bank’s 44 branches and offer them a $5 Subway gift card for their patronage. “Patronage” could be a stretch as the bank did not ask if the mayors were customers of the bank, they simply acknowledged their mentions of North Shore online to say “thank you”.

Mr. Gluth found the “Mayors” on Twitter and Facebook and made contact initially through those channels. The promotion was greeted with surprise and, from this perspective, was successful in establishing customer engagement. The bank has since carried on to sponsor local Tweet-Ups in support of the minor league baseball Timber Rattlers.

Tommy Clifford was cited in the article as a brand advocate and went beyond tweeting about the experience to documenting his experience in this You Tube video. Jason Sherrill, Owner of InetSolution, Inc., a Utica Michigan based firm, posted on his blog about the experience and is encouraging more banks to follow suit.

Emerging from the recent financial crisis in the US, banks have been working hard to re-establish credibility and trust. Advocating financial literacy among the customer base and offering products that are easy to understand and in the best interest of customers are current marketing themes.

Compatible with that messaging would be to “humanize” the bank brand.

There are still voices that tell me that Twitter, Foursquare and the rest are a waste of time. I would challenge those voices to suggest another way for banks to connect with their customer base on the local level at a cost that will not upset the marketing budget, particularly in community bank and credit union marketing.

I think they’ll find the North Shore experiment to be a big step in the right direction.

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Alaska Airlines Uses Oracle To Optimize Email Campaigns

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Oracle is increasingly active in the Loyalty Marketing industry and has reported success in providing technology support for some of the largest frequent flyer programs in the US.

I recently ran across an Oracle blog that recounted how Alaska Airlines upped its email game, adding a greater degree of personalization by replacing a legacy mainframe loyalty system with Siebel Loyalty and Siebel Marketing. Going beyond the sales driven copy in the post, I was interested to hear Steve Jarvis, Vice President Market Sales & Customer Experience – Alaska Airlines speak about the airline’s commitment to provide “proactive customer service” and “superior customer service and innovations” to the over 22 Million passengers they fly annually.

Apparently, Alaska could only reach the 2 Million flyers enrolled in its frequent flyer program and was suffering from the same problem encountered by many retailers – how to identify the customer and create customer engagement. The Siebel installation apparently changed all that as Steve Jarvis relates in this video.

Alaska’s new-found ability to reach its customer base with targeted emails and promotions made me think – which pattern will they follow? Will it be a judicious email policy adopted by the legacy airlines or the firehose approach adopted by the newer “discount” airlines, in particular Spirit?

Hanifin Loyalty recently completed a survey of the use of email as a communications vehicle across the loyalty programs of 22 companies in the Airline, Retail, and Hospitality industries. Full results of the survey will be published in the very near future.

As a preview of the findings, the airlines had the highest rate of email issuance at 5.4 per month. 35% of the emails were related to program membership (meaning statements and newsletters) while 56% were purely promotional and 6.75% were pitching cobrand credit cards.

Sadly, less than 1% of all emails had evidence of a behavioral trigger (i.e. the customer did something that triggered a promotion or offer) and surveys were rare indeed.

The biggest contrast stood out between legacy and discount air carriers with legacy (American, Delta, US Airways) issuing 3.5 emails per month & discount carriers 7.3 per month. Spirit stood out among all airlines surveyed with a whopping 14.8 emails per month.

The results of our email survey pointed out the importance of cadence and relevancy in managing email campaigns. Spirit certainly displays a consistent cadence with an email almost every other day. Trouble is, how many “Red Light Specials” can the recipient endure before she reaches for the delete button every time Spirit shows in the Send field?

For loyalty program sponsors, in this case airlines, two huge areas of opportunity exist.

  1. Use the data they possess to send fewer emails with higher relevancy. This is the antidote for customer attrition.
  2. Make it bleeding obvious (as my UK friends would say) that something the customer did triggered the email.

I want to know that because I visited the Delta Crown Room in LaGuardia that I later received a discounted offer for annual membership. Better yet, I’d like to see that my survey response indicating St. Croix as a favorite destination with American Airlines resulted in a packaged offer of hotel and discounted airfare.

It seems Alaska Airlines has successfully migrated to a great platform from which it can deliver more targeted, relevant offers on their website and via email. The airline also stated that it plans to use the new platform to proactively address customer service issues.

I’m going to track their progress and see how they execute. Nothing more I’d like to see than Alaska to pick off some of that low hanging email fruit.

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