Digital loyalty programs are poised to jump from the pioneers to the masses of local restaurants, cafes, bars, salons and more that rely on repeat business. Companies like LevelUp, LocalBonus, Five Stars, Swipely, RewardMe, Square and others are rapidly expanding to new cities. Peter Krasilovsky, vice president at BIA/Kelsey, told Bloomberg over $155 million in VC money has been invested in digital loyalty-card companies.
What are the benefits of e-loyalty programs for local businesses and why is this sector likely to surpass daily deals? The three accelerants are cost, performance and insights.
From time to time, marketing conferences take a step back to reflect on where we are in the evolution of personalization. Sometimes they add a twist, such as focusing on new data sources or location-based marketing, but the common thread is the promise of relevance.
I recently participated on a panel discussing how far consumer marketers have progressed in unlocking the value of data to enable personalization.
Such discussions often begin with a short debate about what constitutes “loyalty.” Some will argue that incenting people to buy more isn’t enough—loyalty takes emotions as well Continue reading
How a big a hit can fuel rewards be? As gas prices approach $4 a gallon nationally, they can be a big hit for Kroger.
Kroger last week expanded its rewards program to allow shoppers to save more per gallon based on how much they spend in-store. Spending $100 in a month saves them $.10 a gallon (the minimum), while spending $1000 or more saves $1 a gallon (the maximum).
Shoppers can save money at Kroger stations or Shell stations. This is a optical benefit for shoppers and a clever move by Kroger. Continue reading
A new survey by Millward Brown, Value-D, uses data collected from a million consumers in 30 countries to rank the brands delivering the highest value.
The winner in both the US and internationally? Amazon.com. By a longshot. Here are the lists:
U.S. Top 10 Value-D Brands
1. Amazon 157
2. Crest 136
3. Coca-Cola 134
4. Folgers 133 Continue reading
Retailer loyalty programs are fixture for many top chains. Many invest significant money and time in building robust data systems and complex analytic approaches.
Safeway has decided to invest in an executive resource. It has promoted Mir Aamir to president, customer loyalty and digital technologies. He reports to CMO Diane Dietz.
Elevating responsibility for loyalty and digital marketing is the right move. The Achilles’ heels of many programs arise out of two areas: being too siloed and neglecting the shopper experience. Aamir has the opportunity to make an impact in both of these areas at Safeway. Here are a few ways. Continue reading
The Hanifin Loyalty Blog suggests we’ve reached a tipping point with loyalty rewards. Because there are so many loyalty programs that take too long to accumulate points, shoppers are devaluing them.
While this may be true with some retailers, such as those on the shopper’s margin, it is not true for all. Here are some reasons why:
1. There is a big difference between frequently and infrequently used retailers. For the average shopper, the utility of points owned at a bookstore pales compared to points earned at a grocery or big box retailer. The same is true for points earned on, say, American Express. Continue reading
Nikki Baird of RSR Research points out the difference between retailers practicing personalization and relevancy. Personalization can be selfish when the motive is simply to sell more. Relevancy can be noble when the desire is to satisfy more.
This is a great observation and a common pitfall with personalization. How can retailers use relevance (or personalization) to present offers that truly help shoppers?
Shoppers say they they most value offers on items they regularly buy, offers related to personal events, and recommendations on relevant new items, according to a recent IBM survey of 30K shoppers (Institute for Business Value 2011). Continue reading
The 15th annual Brand Keys Customer Loyalty Engagement Index (CLEI). asserts that loyalty is alive and well. It’s a significant survey of 46,000 consumers between 18 and 65. But if we only paid attention to CLEI in assessing brand loyalty, we’d miss the bigger picture.
It’s true that consumers have greater choice than ever in the channels they frequent, services they subscribe to, and, despite SKU-reduction initiatives, in the products they buy. Robert Passikoff, President of Brand Keys, notes winning brands share common factors of (1) innovation and (2) experience: Continue reading