loyalty management third quarter 2015

Third Quarter 2015VOLUME 7 NUMBER 3

Meineke’s Approach to

Customer Engagement

Simplicity at Hertz Means Great Customer Experience Family Atmosphere at Harley-Davidson Instills Brand Loyalty

Hilton’s Customer-centric Culture

IN THIS ISSUE:

Discover how at www.kentico.com/product

Kentico’s all-in-one CMS, E-commerce, and Online Marketing platform means you get to know your customers, not your therapist.

Know more, stress less

3Loyalty Management™ • THIRD QUARTER 2015

In this Issue...THIRD QUARTER 2015 WWW.LOYALTY360.ORGVOLUME 7 NUMBER 3

FEATURES

16 Passionate Customers Lead to Supreme Brand Loyalty at Auntie Anne’sJim Tierney | Loyalty360

18 Meineke Repairs the Car Care Industry’s Approach to Customer EngagementMark Johnson | Loyalty360

20 Customer Loyalty at Bavarian Inn Lodge Is All About Creating Enjoyable ExperiencesJim Tierney | Loyalty360

22 Family Atmosphere at Harley-Davidson Instills Brand LoyaltyJim Tierney | Loyalty360

24 Hospitality Triggers Customer Loyalty at Hwy 55 Burgers, Shakes & FriesJim Tierney | Loyalty360

4 Letter from the Editor

6 Loyalty360 on the Web

8 Your Voice

10 Behind the Brand with Tom Cole, Executive VP, Chief Development Officer | Ansira

12 360 Insights Mark Johnson | Loyalty360

14 By the Numbers: Technology Eases Shopping Experience

26 Q & A: Ask the Experts

28 Trending Now

30 Behind the Brand with Javier Flaim, CEO | Recyclebank

32 Loyalty Innovation

56 Loyalty Reads

LOYALTY FORUM: IN EVERY ISSUE

582 01 5

Expo SessionPreviews

Fall is upon us and we here at Loyalty360 have been busy “behind the curtains” working on some great projects! Website development continues for loyalty360.org, loyaltyexpo.com and engagementexpo.com with new looks, new features and enhanced capabilities for our members and visitors. Entries are in and the judging process has commenced for the 2015 Loyalty360 CX Awards and, we have kicked off the survey process for the 2015 CX Landscape report! I encourage everyone to participate in the survey (http://www.engagementexpo.com/CustomerExperienceLandscape/). The survey takes about 10 minutes to complete and participants receive a complimentary copy of the report once it is released.

The 2015 Engagement & Experience Expo (November 9 – 11 in Dallas, Texas) has seen some fundamental changes that promise to strengthen the learning experience for attendees. More stringent criteria for session selection has been adapted to the agenda. We have worked hard to foster new media relationships and, we have developed a new program called “Exclusives at the Expo” which features a number of whitepaper and product releases from a variety of distinguished vendors across the customer experience & loyalty industries. This year’s Expo features iconic brands such as Bridgestone, AARP, Goodwill, Meineke, 7-Eleven, Dominos, Gold’s Gym, Intuit and others that will share their customer experience challenges and solutions. See page 58 for session preview highlights and be sure to visit the website at engagementexpo.com for even more details and to register! We hope to see you there!

In this issue of Loyalty Management, we have included more brand CX challenges / solutions. Read about Meineke’s approach to customer engagement on page 18 or how Bavarian Inn is creating enjoyable customer experiences on page 20. We also present an inside look at the hospitality experience with Hwy 55 Burgers, Shakes & Fries on page 24.

Enjoy the read!

Christopher

FROM THE EDITOR

4 Loyalty Management™ • LOYALTY360.ORG

Customer Experience...More than Just a Buzz Term

Lenati.com

The Loyalty 80/20 Rule

[email protected] • www.lenati.com • 800-848-1449 @Lenati

80%

20%Higher Customer Needs

Met by TraditionalLoyalty Marketing

Basic Customer Needs

Met by Optimization of Core Experience

REWARDS

BENEFITS

RECOGNITION

EASE OF USE

INFORMATIONVALUE

QUALITY

PRODUCT

UTILITY

AFFINITY

MANAGE THE CONNECTION BETWEEN CUSTOMEREXPERIENCE AND LOYALTY


TECHNOLOGY, TRENDS & REWARDS

BEST BUSINESS PRACTICES

44 Simplicity at Hertz Means Great Customer Experience Jim Tierney | Loyalty360

46 How Does QVC Stay on Top of the Customer Loyalty/Customer Experience World? Jim Tierney | Loyalty360

48 Best Western Delivers Sophisticated Customer Engagement by Revitalizing Direct Mail James M. Loy | Loyalty360

52 Theft Right Under Your Nose: The High Cost of Loyalty Fraud Mike McDonnell | Connexions Loyalty

54 Best Practices in Mobile Voice of the Customer Miguel Ramos | Confirmit

WWW.LOYALTY360.ORG

© 2015 Loyalty360, Inc. and/or its Affiliates. All Rights Reserved.

Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Loyalty360 disclaims all warranties as to the accuracy, completeness or adequacy of such information. The opinions shared are those of the contributing authors and not necessarily reflective of Loyalty360 and/or its affiliates. Loyalty360 shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice.

In this Issue...THIRD QUARTER 2015 VOLUME 7 NUMBER 3

Loyalty Management Editorial & Production TeamChristopher Schatzman - Editor in Chief

Mark Johnson - Contributing Editor

Christopher Schatzman - Design Director

Jim Tierney - Senior Writer

Crescent Printing Company - Print Production

ContactsArticle Submissions & Advertising:

Ana Altamira

[email protected] or

513.800.0360, ext. 217

34 Forging Emotional Bonds: Hilton’s Customer-centric Culture Jim Tierney | Loyalty360

38 Meaningful Motivation in the Workplace Can Yield Success Paul Gordon | Rymax Marketing Services, Inc.

40 How Personalized Digital Experiences Win Loyal Customers Jim Dicso | SundaySky

42 ebags.com Seeks Differentiation Through Customer Loyalty Jim Tierney | Loyalty360

Contact Connexions to learn about our industry-leading

loyalty fraud solution.

Loyalty program points and miles are worth billions. Hackers know it.

Could someone stealyour customers’ rewards?

For the latest

research on loyalty

fraud, download

our white paper at

www.cxloyalty.com

C

M

Y

CM

MY

CY

CMY

K

CONNEXIONS fraud WHITE PAPER ad for print.pdf 1 8/6/15 12:03 PMTheft Right Under Your Nose: 52The High Cost of Loyalty Fraud

How Personalized Digital Experiences Win Loyal Customers 40

REGISTER NOW!

WWW.ENGAGEMENTEXPO.COM

2 01 5

LOYALTY360 ON THE WEB

What’s NewON LOYALTY360.ORG

What’s New


A redesigned website for Engagement & Experience Expo, powered by Loyalty360, has launched at engagementexpo.com. The new site features a more intuitive user-interface with an enhanced layout and image-based design. All of the resources and features you need to get registered, stay informed, connect with others and access sessions and presentations are still there – they are just easier and more enjoyable to access!

Loyaltyexpo.com, the website for Loyalty Expo, powered by Loyalty360, has also received a facelift.

We invite you to visit both websites, enjoy the improved navigation and learn more about the upcoming conferences!

WEBSITE REDESIGNS FOR LOYALTY EXPO AND ENGAGEMENT & EXPERIENCE EXPO

Brand Panel, Loyalty360’s recently launched online community, is a networking site for professionals in marketing, customer loyalty, customer experience, customer engagement and related fields. Exclusively available to members of Loyalty360, Brand Panel enables marketers to connect with each other in a secure environment. Since launching in the first quarter of 2015, the community has already been updated with new enhancements and capabilities: include videos in your discussions, see a “ticker” of industry news from Loyalty360 and get familiar with the site via an “Introduction” app.

CONNECT WITH PEERS ON BRAND PANEL

Learn more about Brand Panel and becoming a Loyalty360 member by contacting Mark Johnson at [email protected].

A growing collection of podcasts is available at Loyalty360.org, including the Loyalty Management series of featured columnists, the Loyalty360 Webinar series and interviews with thought leaders in the industry. Go to loyalty360.org/resources#multimedia?type=52 to see the collection. Stream the podcasts directly from the site, download them to your device, or download them in iTunes to access on your Apple devices.

DIVE INTO A WEALTH OF NEW PODCAST CONTENT

360podcast

ON LOYALTY360.ORG

LOYALTY FORUM: YOUR VOICE


voiceyourLoyalty360Loyalty360

Our obsession with mobile devices is an indisputable fact. According to CNN, in January 2014 Americans used smartphone and tablet apps more than PCs to access the Internet – the first time that has ever happened. We know that more than two-thirds of Americans own a smartphone, and Nielsen research cites the highest mobile device ownership among the Millennials (85% aged 18-24 and 86% aged 25-34).

Yet while most people are using mobile devices more than ever before, they are still primarily browsing devices. The opportunity to transform the consumer experience via truly engaging native mobile apps is largely untapped. Why are so few brands using mobile phones for order capture, purchasing and payments? As a constant consumer companion, the mobile phone is a natural choice for loyalty engagement, timely offers, redeeming rewards and in the moment surveys, challenges, and user-generated content.

The technology is proven and ready to go. Starbucks is one of the few brands who have fully embraced the mobile loyalty app and is now reaping the rewards. As of January 2015, Starbucks reached 13 million active mobile users, and with POS and payment capabilities, the company reported an average of 7+ million mobile transactions in U.S. stores each week!

— Kevin Nix, CEO/President | Stellar Loyalty

I believe the omnichannel experience has mostly fallen short of expectations, not because of its impact potential (which is great), but because of retailers’ speed to successfully create it for consumers. From the shopper’s perspective, there are no channels, simply brands; however, still today channel-based issues abound. Whether it’s online purchases that can’t be returned to stores or inaccurate loyalty point accruals across channels and devices, efforts need to be made to create a 360 view of the consumer rather than silo both the information and operations so a true omnichannel experience can be had.

— Jeff Sopko President, Insights & Marketing | Baesman

For lack of a better solution, there has been a trend in B2C companies using CRMs to engage consumers. Customer Relationship Management, originally a B2B sales solution, was never designed to help marketers understand, segment and engage consumers who purchase, socialize and acquire specific items (SKUs); therefore, it has fallen short of their expectations.

— Brad Marg, COO | Clutch

What recent new trend, technology or solution that promised to transform or

improve customer experience or engagement has fallen

short of expectations?

No one would dispute that with the explosion

of tools, technologies and solutions available

today, it’s an exciting time to be a marketer. In

fact, among the biggest challenges related to

customer experience and engagement lie with

sorting through the multitude of technologies

that are available, according to Loyalty360’s CX

Landscape report. With this in mind, we set out

to explore the recent trends or technologies that

have not lived up to expectations.

”As a constant consumer companion, the mobile phone is a natural choice for loyalty engagement.“

Build More Loyal & Profitable Relationships with the Stellar Consumer Relationship Cloud.

The Stellar Consumer Relationship Cloud enables brands and sports teams

to build more loyal and profitable relationships by enriching experiences and

optimizing every interaction, from acquiring and engaging to transacting and

rewarding consumers. With the Stellar Consumer Relationship Cloud, brands

and sports teams will foster contextual, relevant, two-way engagement

across all digital, social, physical and human interactions.

To learn more, please visit stellarloyalty.com. The Consumer Relationship Company

The main area where I see solutions falling far short of potential are mobile loyalty programs. Mobile apps should – and can be – so much more than another variation of the main program’s website. However many loyalty programs are launching mobile apps just for the sake of launching a mobile app, without taking the time to integrate the mobile solution into their overall offering. This leaves the customer wanting for more, and doesn’t provide them with a well-rounded customer experience. Launching a mobile app that a customer downloads once but never uses again defeats the purpose of long-term engagement. If you aren’t engaging w/customers via your mobile solution, why have one to begin with

— Lori Byrne, SVP Sales & Marketing | Aspire Lifestyles

The problem is not usually with the technology, but with the users of the technology. Customer engagement needs to be personal, and values driven, no matter what tools we use.

— Al Perkinson, Vice President of Marketing | Costa Sunglasses

Most companies are taking customer experience seriously, investing in technology and changing their cultures to stay competitive. The single largest risk in this rush to raise the CX bar is "survey assault," where every department and stakeholder throws their pet questions at customers, injuring the relationship and degrading the data. We have the technology to listen and engage with customers in much more authentic and productive ways. There are no more excuses. The assaults must end.

— Lonnie Mayne, President | InMoment

Programmatic media hasn’t always lived up to its initial promise. Results were not that great using simple audience profiles. We questioned whether it was worth our clients’ investment in the platforms. However, once we integrated our client’s CRM data into the process, results improved dramatically. We’ve now seen programmatic media drive very high returns for our clients. Effective targeting and strong results all come down to the quality of the customer data you feed into programmatic process.

— Logan Flatt, SVP, Strategic Planning | Ansira

“The single largest risk in this rush to raise the CX bar is survey assault...”

LOYALTY FORUM: BEHIND THE BRAND

BehindtheBrand


WITH TOM COLE, EXECUTIVE VP, CHIEF DEVELOPMENT OFFICER | ANSIRA

Tom oversees the development of key relationships with both current and new Ansira clients. Prior to his current role, Tom was co-president and co-founder of predecessor company RAZOR, helping to build the agency to $300 million in capitalized billings in less than eight years.

Prior to founding RAZOR, Tom served as president of Brann Worldwide – Dallas, executive vice president of JWT and vice president of marketing for PepsiCo.

Tom received bachelor’s degrees in economics and business and his master’s in business administration from the University of Pittsburgh. He attended the Harvard Business School program for Owner/President Management of privately held businesses.

WHAT DO YOU SEE AS THE NEXT BIG TREND IN CUSTOMER ENGAGEMENT AND LOYALTY?

The next big trend has already happened, but most marketers are struggling to catch up. The trend is the “always on, always connected” consumer, yet marketers still seem stuck in a batch-and-blast model that grew up in the world of advertising campaigns.

WHAT MARKETING INNOVATION DO YOU WISH YOU HAD COME UP WITH FIRST?

I read with the announcement of its Alphabet restructuring, the market value of Google rose to $460 billion by the next day. My first thought was, “I wish I had thought of that.”

WHAT TREND OR TECHNOLOGY SHOULD MARKETERS EXPIRE AS A FAD OF THE PAST?

There has always been a trend, or a tendency, of brands viewing customers through the lens of their business. That has to change. Brands have to do a better job of viewing the business through the eyes of its customers. That will require significant organizational changes to achieve, but the mindset must change first.

WHAT IS THE BIGGEST CHALLENGE YOU ARE CURRENTLY LOOKING TO SOLVE?

To be best in class at data-driven customer engagement marketing, an agency needs more top talented people collaborating from more disciplines than ever before. Finding, attracting, retaining and inspiring this level of talent is a significant challenge that will only grow.

WHAT DO YOU BELIEVE IS KEY IN DRIVING TRUE CUSTOMER ENGAGEMENT?

It’s all about customer intelligence. A deep understanding of customers through a single view across an entire organization is the key.

WHAT IS YOUR PERSONAL MOTTO?

Luck is the residue of design

WHO HAS HAD THE MOST INFLUENCE ON YOUR PROFESSIONAL LIFE?

My father. He showed me the commitment required in order to succeed in business, and to this day, he is my motivation to continue learning and growing.


BehindtheBrand WHAT IS YOUR FAVORITE WORD? INSPIRE

WHAT IS YOUR LEAST FAVORITE WORD? DICTATE

WHAT TURNS YOU ON CREATIVELY, SPIRITUALLY,

OR EMOTIONALLY?

SEEING MY FAMILY MEMBERS EXPERIENCE SPECIAL MOMENTS

WHAT TURNS YOU OFF? BLAMERS

WHAT IS YOUR FAVORITE (PG-13) CURSE WORD?

I TRY TO AVOID PG-13 CURSE WORDS. GO STRONG OR NOT AT ALL

WHAT SOUND OR NOISE DO YOU LOVE? A WINE CORK POPPING

WHAT SOUND OR NOISE DO YOU HATE?

THE BELL ON AN AIRPLANE THAT SAYS TURBULENCE IS COMING

WHAT PROFESSION OTHER THAN YOUR OWN WOULD

YOU LIKE TO ATTEMPT?

I WOULD HAVE LOVED TO HAVE BEEN A MUSICIAN. OR A CIA ANALYST. POSSIBLY BOTH

WHAT PROFESSION WOULD YOU NOT LIKE TO DO? POLITICS

IF HEAVEN EXISTS, WHAT WOULD YOU LIKE TO HEAR

GOD SAY WHEN YOU ARRIVE AT THE PEARLY GATES?

WELCOME

* Inspired by James Lipton on “Inside the Actors Studio” we asked Tom to share his quick fire response to the questions originating from the French series, “Bouillon de Culture” hosted by Bernard Pivot.

12345678910

QUICK FIRE QUESTIONS*

WHICH BOOK(S) ARE YOU RECOMMENDING AND WHY?

“Words That Work: It’s Not What You Say, It’s What People Hear” by Dr. Frank I. Luntz. Technology is enabling more content to flow in greater volume from more sources than ever. But it seems like too many people are losing the art of communicating with impact through concise, engaging words.

FAVORITE LEISURE ACTIVITY? DOES THIS INFLUENCE YOUR WORK?

I have two favorite leisure activities: reading and exercising. Reading certainly influences my work. I alternate one business, leadership or macro-trend book for every classic or action thriller novel I read. I also exercise every day. Exercising has a huge influence on my work, because it restores positive energy and gives me time to think.

HOW DO YOU MEASURE SUCCESS OR FAILURE?

I measure success or failure by how positive change is achieved and by how many people it impacts.

WORDS OF ADVICE FOR THE NOVICE MARKETER?

Listen longer and be a student of the business. The minute you think you know it all, you start going down the slope.

Listen longer and be a student of the business.

“

’’


LOYALTY FORUM: 360 INSIGHTS

Mark Johnson Loyalty360

There’s a challenge that still exists for most brands, and we have addressed it numerous times. It is the challenge of listening, but it is the kind of listening that goes further than just brands talking to customers or to their suppliers. We continue to see a long list of talking points that too many brands overly rely on, or acronyms they continually posit as a result of dealing with too many consultants or technology providers who may or may not understand their challenges. The problem is that there is no unanimity, no agreement, and no industry consensus.

One of our board members recently stated that “this industry is more disruptive of itself” than any other. And this is why we continually call for consensus and for simplicity.

We go to numerous conferences, speak to countless brands and technology providers, and we have listened to them all. Truly listened. And we continue to see new challenges that, by and large, did not exist in the 60’s and 70’s, or decades past. Sometimes it seems as if we do not even have the depth of understanding that we did then.

Larger corporations, with disparate processes and siloed organizations and with powerful technologies, have not led to stark improvements for all brands. We hear of best of breed technology that will “empower” via a software developer kit (SDK), we hear of application programming interfaces (API’s) that will integrate disparate technologies. But the fact remains that brands are now just struggling with complexity. And also with being able to provide a return on investment, to keep these same technologies running year over year, and to continually integrate them across growing networks.

When you speak with brands and technology providers that truly understand the implicit and explicit challenges in the market, you find an honest, forthright, and candid dialogue among them. They understand these challenges. As they look at organizational imperatives, they understand the opportunities that are present, and they want to know how they can systematically integrate technologies and leverage them to increase the efficacy of their processes.

Yet when we speak with other brands that think they “get it,” they only talk in myopic buzzwords, they use catch all phrases, or they use acronyms that they don’t really understand. And, as we’ve talked about, there is a great deal of confusion and obfuscation in the market.

Talking Points Versus Active Listening

Customer Experience Challenge of Listening:

As we prepare for the 2015 Engagement & Experience Expo, we have had the pleasure and

privilege of speaking to stalwarts within the customer

experience and brand engagement industry. When

reflecting on the conversations we have had with senior

marketing executives across such a wide swath of industry

verticals, it is interesting to see how some are excelling

with metrics, processes and a commitment to organizational

CX, while many others remain challenged.

HEAR MORE FROM LOYALTY360 AT THE 5TH ANNUAL

2015 ENGAGEMENT & EXPERIENCE EXPO! We encourage you to join Mark Johnson, Chief Executive Officer with Loyalty360 at Engagement & Experience Expo, a forum to openly discuss customer, brand and channel challenges and solutions. You will also discover how to optimize the customer experience at all touch-points and increase the impact of engagement throughout the customer lifecycle.


We know what brands should be doing. We know what the opportunity is for those who can effectively engage their audiences. Yet when they’ve been sold the prescriptive tool of buzzwords and acronyms

as well as metrics and measurements that are hard to understand and cannot be quantified externally or

internally, it creates a paradigm of challenge.

But we see the opportunity to create a paradigm shift. There is a great divide

between the brands that truly are putting the customer first, and

are truly open to gaining an understanding of those

customers. These brands know that there may be some skeletons in the closet, or there may be a bunch of responses that they just don’t want to hear from customers, but they are willing to accept it, admit there are challenges and ask for help.

Loyalty360 will continue putting forth the leading brands that are doing amazing things. We

engage with those brands that want to

share their challenges in an effort to learn more, and

to join a thriving community through content collaboration.

These are the successful brands that are committed to building the

insights, the requisite metrics, and the technologies required to leverage data

and customers in a new and proactive manner. For these brands, this truly lifts them

up to be powerful players in the industry, and enables them to engage customers in unique ways.

We know that customers want seamless experiences. We know that customers are now engaging brands across all channels. And in this respect, health care providers may be compared to an Amazon in their ability to drive consistent cross-channel experiences. This is making some brands feel the pressure to compare themselves to Apple, for example, or other brands that are outside their particular vertical.

This is enabling guests and customers to expect more. There is a rising tide, but the rising tide is for simplicity. As we have continually stated, the clarion call is for simplicity and alignment. Customers want to feel like they have a relationship with their favorite brands, and this is missing in many respects today.

We’ve talked in the past about a return to a mentality that used to see people have personal relationships with a corner bookstore or the local drug store, for example. Those businesses used to see their customers as individuals, as people. That person behind the counter of the local drug store used to explicitly, and sometimes implicitly, know and understand the product needs, desires, and wants of their customers. This is what brands struggle to do today, but not for want or lack of technology.

That’s also why we see a continued rise in small- and medium-sized merchants and brands that are being disruptive. They are looking at ways they can create a new paradigm for the customers, to engage with them. We’ve heard about the challenger brands. We’ve heard about disruptive technologies. We’ve heard about looking at ways organizations and brands that actually are doing it well, and we’ve heard about those that are not. Some are successful, but many more are still struggling. Even though they may think they are doing well internally, many only grasp at talking points without being able to offer any real substance.

Some of the brands may be doing well, but there remains a rising tide of customer expectations. If you step back and listen to how some of these brands are talking about the challenges, and how they address them, you can really see the dichotomy between those who are only relying on the empty talking points and those who are truly making the commitment to understanding their customers.

We look forward to working with and sharing the brands that are making a true commitment to the customer experience. We also look forward to bringing new metrics and insights to help these brands create a more direct relationship to their audiences. We endeavor to enable simplicity and alignment in this respect. And we look forward to telling the stories of the brands that are meeting and exceeding new challenges and finding success going forward. L

There is a great divide between the brands that truly are putting the customer first, and are truly open to gaining an understanding of those customers.


LOYALTY FORUM: BY THE NUMBERS

Eases Shopping ExperienceTechnology

90%

82%30%

25% 22%

20%

of Shoppers are using mobile devices to help make purchase decisions while in-store.

54% use stores’ mobile sites | 21% use in-store kioskOnly 17% want to use a store app

of consumers have or will have a wearable device within the year

want wearables to enhance their shopping experience

would like to be notified when the store is busy so

they can come back when it’s more quiet

want to use wearables for touchless or

one-click payments

want map to navigate the store

Study by PowerReviews released on 5/12/15, survey of 1021 US consumers

Discover how at www.kentico.com/product

Kentico’s all-in-one CMS, E-commerce, and Online Marketing platform means you get to know your customers, not your therapist.

Know more, stress less

Centralized Customer Intelligence

Loyalty and Stored Value

Analytics and Segmentation

Omni-Channel Engagement

Clutch's Consumer Management Platform empowers marketers with customer insights to drive measurable results.

Are you maximizing your best customers?clutch.com | [email protected] | (888) 541-6789


FEATURES

Lead to Supreme Brand Loyalty at Auntie Anne’s

Passionate Customers

When Heather Neary, Vice President of Global

Marketing for Auntie Anne’s – the world’s largest

hand-rolled soft pretzel franchise – wears her

company shirt accompanied by its logo...

...the response is genuine and most appreciated.

“Auntie Anne’s knows people don’t just ‘like’ our pretzels,” Neary explains. “We are very fortunate to have very passionate guests who looooooove our pretzels! I can’t tell you how fun it is to wear an Auntie Anne’s logo shirt at the airport and have flight attendants and other passengers come up to me to say, ‘Oh my gosh! Your almond crunch pretzel is my favorite!’ or ‘Those mini pretzel dogs are the best thing ever.’ We believe it’s important to harness that engagement, loyalty, and passion.”

To harness that passion, Auntie Anne’s developed the Pretzel Perks loyalty app.

“It’s a very simple premise,” Neary says. “Use your app when you make a purchase and we’ll reward you with fun coupons and surprise-and-delight offers! Auntie Anne’s believes the power of the crew (hourly store employees) is what truly represents and provides value to the brand, as they are continuously engaging directly with customers. As such, we believe that strong training programs and strong employee incentive programs are the keys to success.”

Yet, maintaining that simplicity is crucial to retaining loyal customers.

“Our guests are inundated with messaging everywhere they go,” Neary explains. “We want to make sure their experience at Auntie Anne’s is as simple as possible. We’ve even recently undergone some new training with our crew members to limit the number of questions a crew member may ask a guest to keep the transaction time minimal and the experience pleasant and positive. Our loyalty app is very easy to use. Scan the app when you make a purchase and earn points. When you earn 300 points, you get a free pretzel! In addition, we’ve really looked at our stores to make sure we’re not overwhelming guests with messaging through POP materials. De-cluttering is a key theme and one that we believe is important to continue to stress with our stores.”

Gaining customer insights from data is something all marketers pursue, yet some use that data in a more imaginative and, ultimately, profitable fashion.

Jim Tierney Loyalty360

“Understand what you have,” Neary recommends. “In many cases, the data you need is at your fingertips and you don’t even realize it. What are your sales numbers telling you? What’s the message in your product mix numbers? What are your guests trying to tell you through the transaction counts? A lot of times, data seems overcomplicated when really it’s all about looking at what you have and understanding what those numbers

are telling you.”

Making intentional connections with guests is critical at Auntie Anne’s, Neary says.

“Understanding what our guests want from us and engaging with them in a meaningful way are necessary to ensure our success moving forward,” she explains. “There’s a lot of noise out there. It’s important that we stay focused on the core equities of our brand and communicate clearly and concisely to our guests, whether that be at the counter, or through digital or social channels. Our guests are so very important to us. We want to hear what they’re seeing in our stores, what they think of our new products, our new flavors of lemonade,

our latest post on Instagram. There’s nothing more fun to me than interacting with our guests on social

media. And in some cases, they come to us when they’re unhappy and that’s ok, too, because it gives us a chance to

make that situation a positive one for our guests.”

What is Neary’s main piece of advice for marketers?

“Listen to your customers,” she says. “Really listen to them. They’ll tell you what you need to know if you truly listen to them.”

Technology is an integral piece of the marketing puzzle today.

“We need to be where our guests want us to be,” Neary says. “It’s not about what we’re comfortable with. It’s about where our guests want to engage with us. We work very hard to stay on top of all the changing trends and it’s a bit of an art rather than a science to figure out which new platform will take off and which will fade into oblivion.”

What customer engagement methods have worked and still work the best for Auntie Anne’s?

“It’s really about the golden rule!” Neary explains. “We try to treat our guests like they want to be treated. At the end of the day, isn’t that what makes the world go round? Auntie Anne Beiler founded the company on the philosophy of giving back in the community and providing excellent customer service. We teach these same virtues to all our employees, franchisees, and crew members today. Treat others as you would like to be treated!”

Neary is so proud of the solid system Auntie Anne’s has in place.

“Over the past 27 years, an amazing group of franchisees, crew members, and corporate employees have all worked together to develop a world-class brand,” she says. “We’re fortunate in this regard and we don’t take it for granted. It’s important, though, that we keep working hard to push forward and come up with more innovative products, services, and stores for our guests to visit. We need to always be thinking about what’s next. Curiosity is so critical in this business and when we stop being curious, we can become a victim of our own success.” L


“Listen to your customers. “Really listen to them. They’ll tell you what you need to know if you truly listen to them.”


FEATURES

Meineke Repairs the Car Care Industry’s Approach to Customer Engagement

For most auto owners, proper car care and maintenance is a fact of life. Attracting and retaining these drivers as loyal customers is an essential part of the automotive care and repair business. As with most industries, a large part of winning customer loyalty

is derived from how well any one brand can truly gain a deep and comprehensive understanding of its consumers.

Of course, offering consistent and high quality service is also a large part of success. Increasingly, a friendly smile and competent tune-up may no longer be enough to gain a competitive edge in a crowded industry.

Meineke fundamentally understands these marketing challenges, and sees a big opportunity in changing the way customers experience and engage with the brand and its centers.

With more than 900 franchise-based U.S. and international locations, Meineke is a leading full-service auto repair company. Everyday its vast network of local shops helps customers take care of their cars, so their cars don’t take over their lives. The brand continues to grow smarter about the way it conducts various strategic customer engagement initiatives.

Mark Johnson Loyalty360


Specifically, Meineke is harnessing the power of big data to leverage important analytical insights necessary to make intelligent and calculated decisions to improve the customer experience.

“Customer experience is not about getting people in for a single transaction,” Artemio Garza, Meineke’s Chief Marketing Officer, says. “It is about building a long lasting relationship to make sure that customers view us as a reliable partner they can depend on throughout the years. To do that, it’s vital we know our customers, understand their needs, and employ the right resources to accurately educate them about their car care needs in a timely manner.”

Meineke’s objective is to make the car care and repair process as simple as possible, which is marking a shift in the way most businesses across the auto repair industry approach the customer experience.

“Nobody has really innovated the customer experience in the automotive aftermarket,” Garza explains. “It has been very traditional in this sense. Technology adoption from a customer experience perspective has been relatively slow. So we view this as an opportunity for us to do something different, to really distinguish ourselves, and show our customers why doing business with Meineke makes sense, fits into their lives, and adds value.”

Meineke has already laid the foundation for this process. In an effort to personalize CX initiatives, it has always leveraged a number of basic data points such as maintenance details and customer car make and model. But now there is so much more that can be expanded upon, analyzed, and integrated in to this process.

And this is crucial because customers are very savvy now. They expect the brand to know more than just what kind of car they drive. They want real-time and personalized information on purchases, promotions, and more. This is exactly the type of integrated customer experience Meineke plans to deliver.

“It’s about more than understanding hard data on the vehicle,” Garza says. “It is also understanding the habits of our consumers, to make sure that we are communicating useful information. That is the priority. Using robust data will personalize offers and deals that make sense for their routine. We now look at the customer’s online experience, what they click, what they purchase, what day of the week they come get their oil changed, and more.”

This process not only keeps customers engaged and coming back, but it also helps Meineke create targeted offers that can result in higher spend. Meineke pays close attention to the success of the promotions

it sends customers. If a certain email marketing campaign, for example, is opened and acted upon, and another is not, Meineke wants to understand why.

For messages that don’t work, perhaps the message was irrelevant and not meaningful enough to elicit a response. Maybe the right information was sent to the wrong person? Or, as could often be the case, maybe it was the right message, sent to the right person, but at the wrong time.

“It is not just about communicating with consumers about what they want to know, it is also about doing it at the right time,” said Garza.

There are many variables to consider, and Meineke is working hard to put the tools and technologies in place to consider them all and put

them to use in an impactful way.

Of course, customer feedback also factors significantly into this equation, which Meineke gathers from

several sources. This is essential because, as one can imagine, the multitude of distinctive customer segments that owns and drives cars are vast and varied. Personalizing offers for each one is a difficult challenge. But it is one that Meineke is ready to meet, which it does in several ways.

First, Meineke pays close attention to all feedback channels including call centers and

surveys. This provides a baseline of what works and what doesn’t. Next, it conducts a significant

amount of research and constantly tracks the brand’s health through focus groups and various quantitative

measurements. Third, Meineke leverages one of its most powerful resources – its vast network of franchisees. Local business owners exist on the front lines of customer interaction. They operate the shops, talk to customers daily, and are in a prime position to gauge the efficacy of various promotions. Finally, and maybe most importantly, Meineke is also not afraid to try new things and make mistakes in the process.

“We are constantly testing and learning,” Garza said.

This is also how Meineke keenly navigates a new and dynamic marketing landscape. In an environment in which many brands are still struggling to find a foothold, Meineke appears to be on solid ground.

“There has been a radical change in how we have been doing marketing and advertising,” Garza continued. “It is constantly evolving, and we are moving as fast as possible to launch new services and new tools. And we also know that this is never going to stop. The moment we roll out something, there is going to be more information and more technology for us to integrate, to continue making the experience better and better.” L

Understanding the habits of our consumers,making sure that we are communicating useful information. That is the priority. Using robust data will personalize

offers and deals that make sense for their routine.

In an environment in which many brands are still struggling to find a foothold, Meineke appears to be on solid ground.

HEAR MORE FROM MEINEKE AT THE 5TH ANNUAL 2015 ENGAGEMENT & EXPERIENCE EXPO! We encourage you to join Artemio Garza, Chief Marketing Officer with Meineke, and Brad Marg, COO with Clutch, as they present: Delivering High Performance, Personalized Brand Experiences to Customers.

FEATURES

CAN YOU TALK A BIT ABOUT THE CUSTOMER LOYALTY THEMES CURRENTLY HELD BY BAVARIAN INN AND IF THOSE THEMES HAVE CHANGED AT ALL IN RECENT YEARS?Our Perks Club Loyalty themes mirror our company mission statement, company core values, and the belief that if we offer great customer service, we will be rewarded with customer loyalty. Our loyalty themes have remained consistent since the Club started in 1999.

Our mission statement is “To Create Enjoyable Experiences”. The Frankenmuth Bavarian Inn is a progressive, family- operated business creating enjoyable experiences in dining, lodging, shopping, and travel-related experiences in the unique Frankenmuth Bavarian Inn tradition. Our Bavarian Inn corporate core values are Trust, Respect, Optimism, and Fun. Our guests return because they trust our brand. We have a reputation of high quality in the products, services, and facilities we offer. Our behavior toward our property, our guests, and each other is respectful, courteous and appreciative. The atmosphere in our businesses is positive and uplifting for our guests and team members. Our guests enjoy doing business with us because of this attitude. We feel personal values and program values are connected. Our members connect with and are loyal to shared beliefs.

HOW IMPORTANT IS LISTENING TO THE CUSTOMER FOR BAVARIAN INN? Listening to our customers is of the utmost importance to us. At the Bavarian Inn Lodge, a customer survey is sent out after each stay. Each comment and suggestion is read and responded to quickly. We are honored to be the “Most Reviewed Hotel in Michigan” by Trip Advisor. With over 3,800 public reviews, we have responded to all of them since 2002 when Trip Advisor began.

HOW WOULD YOU DESCRIBE THE CUSTOMER LOYALTY JOURNEY BAVARIAN INN HAS TAKEN IN RECENT YEARS?Our customer loyalty journey has been rewarding for us as a company. We have experienced a continued growth in Club membership. We experience a longer length of stay at our Lodge by Club members. Our members return to make future purchases. This is evident if the high redemption rate we experience from our members using their reward certificates. Since the program began in 1999, we have focused on new techniques to delight and engage our guests each year. That is the best way to gain new members to our one resort loyalty club.


Customer Loyalty at Bavarian Inn Lodge Is All About Creating


Mission statements can often be an obligatory practice for many marketers that aren’t considered, in detail, on a daily basis.

At the Bavarian Inn Lodge, located in Frankenmuth, MI, that is not the case.

While many people may not have not heard of the Bavarian Inn Lodge, in April the company walked off with a Silver Award in the Best Loyalty or Rewards Program category at the 8th annual Loyalty Expo presented by Loyalty360 – The Loyalty Marketers’ Association.

Nancy Sommer, Manager of the Bavarian Inn Perks Club loyalty program, sat down with Loyalty360 to discuss the company’s customer-centric focus and its keen awareness of its mission statement, which is all about creating enjoyable experiences.

The Bavarian Inn Perks Club was created in 1999 to reward the loyal customers of the Bavarian Inn Restaurant, Bavarian Inn Lodge, and Frankenmuth River Place Shops. The Bavarian Inn Restaurant has served more than 20 million guests with its world-famous “all you can eat” family style chicken dinners and German entrees.

Bavarian Inn Lodge features 360 European-themed guest rooms, indoor water park, and Family Fun Center with indoor mini golf. Frankenmuth River Place Shops is an outdoor mall and is a re-creation of a Bavarian village. The restaurant, lodge, and shops are all located within walking distance in Frankenmuth, MI, one hour north of Detroit.

ExperiencesEnjoyable

FEATURES


WHAT DOES CUSTOMER LOYALTY MEAN TO YOUR BRAND AND HAS THAT DEFINITION CHANGED OR EVOLVED IN RECENT YEARS? Many members have told us how they came to visit our Bavarian Inn Restaurant and Lodge as children and are now bringing their children and grandchildren. To us, this expresses the highest level of customer loyalty, knowing we have become part of their family tradition. There is very low attrition in our club, with existing members continuing to refer new members. This confirms to us that personal values and our company mission statement and core values are connected.

SIMPLICITY WAS ONE OF THE MAIN THEMES AT OUR LOYALTY EXPO CONFERENCE IN APRIL. HOW DOES BAVARIAN INN SIMPLIFY ITS CUSTOMER RELATIONSHIPS TO ENHANCE BRAND LOYALTY? We believe if we offer great service, we will get rewarded with customer loyalty. Bavarian Inn is a small independent lodge, restaurant, and retail business. One advantage of bring small is that we can provide a level of service that would be difficult for large corporations to offer.

The benefits of our Club are simple. Our members earn 10 points for every $1 spent. Once 2,000 points are accumulated, a $20 reward certificate is mailed to the member to be used on a future visit. Our members receive a complimentary Family Style Chicken dinner during the month of their birthday, exclusive member only lodging rates and retail promotions, and special discounts on dining during selected seasons.

Our private loyalty program is set apart by the opportunities our members have to meet the owners and management. Each year we invite our Club members to a reserved seating area on the beautiful Lodge grounds to view the local Jaycees fireworks on July 3. Before the fireworks begin, Club members are greeted by Club staff and owners. Top Club members of the Lodge received a personal phone call from the owner prior to the Christmas holiday. The call was made to thank the member for their business, wish them a Merry Christmas, and to solicit their feedback on their experiences with us over the last year.

Owners of the 1,200 seat German-themed restaurant frequently make table visits to Club members. Top Club members are invited to special events. One example was that in the fall of 2013, the Lodge Owner/President held a 40th birthday party for her 1973 Volkswagen Beetle. Top Club members and community leaders were invited to celebrate and have the opportunity to meet owners and management. People still talk about the success of this event even today!

MARKETERS ARE TASKED TO BE MORE DATA-CENTRIC THAN EVER BEFORE, YET THE CHALLENGE OF CREATING ACTIONABLE INSIGHT FROM DATA IS MORE CHALLENGING THAN BEFORE. WHAT IS YOUR ADVICE FOR MARKETERS?Keep it simple. All of our members have unique spending patterns. It is important to appeal to each member of our Club. While most overnight with us, some only dine with us, while others are primarily shopping guests. We do use an outside service to help us analyze the data gathered. We have a uniquely themed restaurant and lodge so the analysis helps us target our efforts and tell our story to an audience most likely to visit us. We offer benefits that appeal to the varied interests of our members and encourage them to visit more frequently.

CAN YOU GIVE US A HIGH LEVEL OVERVIEW OF YOUR CUSTOMER PHILOSOPHY AND SHARE HOW THIS PERSPECTIVE HELPS DRIVE MORE EFFECTIVE ENGAGEMENT AND, THEREFORE, BETTER MARKETING OUTCOMES?Our customer philosophy can be best expressed in our mission statement “To Create Enjoyable Experiences” for our guests and our fellow staff members. Our company was built on offering a family experience with “old world” service and hospitality. Our Club offers our members a sense of being a part of our extended family each time they visit us. Our company is now in its third and fourth generations of family ownership. The value that is placed on the opportunity for our Club members to meet with owners and management during their visits has given us the opportunity for customer feedback which helps drive our marketing outcomes.

IN A MOVE TOWARD CUSTOMER-CENTRICITY, IF YOU COULD GIVE ONE PIECE OF ADVICE TO A BRAND TO HELP THEM INCREASE LOYALTY AND ENGAGEMENT WITH THEIR CUSTOMERS, WHAT WOULD IT BE?Employees who embrace our mission statement and core values create a positive consumer experience at the point of sale and post-sale. Our staff has been our key to success and deliver the service that keeps our customers coming back time and time again. Offer great service – get rewarded with loyal customers.

WHAT ARE BAVARIAN INN’S TOP CUSTOMER-RELATED PRIORITIES AND HOW DOES TECHNOLOGY, IF AT ALL, IMPACT THOSE?We want it to be easy for our customers to do business with us. We currently do not have the ability for our customers to log in to see activity in their Perks account. Our reward certificates are printed in house and mailed out to our members after their visit with us. While attending the Loyalty360 Expo in April, we were able to meet with suppliers who help us achieve this goal. L

“We offer benefits that appeal to the varied interests of our members and encourage

them to visit more frequently.”

FEATURES



Customer loyalty might not be more connected to any brand than to Harley-Davidson. Can you talk about the ongoing relationship between Blue Springs Harley-Davidson and its customers, and how that is nurtured?

We are in the business of selling a lifestyle, not just motorcycles. Our customers are purchasing their dream. Some save up their entire lives for this one purchase. Developing personal relationships with our customers is Blue Springs Harley-Davidson’s top priority. We take the time to learn what our individual customers like, how they ride, where they ride, and their style. Rewarding them for their loyalty is a pleasure for us.

We have a loyalty program through CLUTCH that allows us to reward our customers frequently and uniquely, from purchases and participation in events, to referring their friends and family to join our Blue Springs Harley-Davidson family. Our loyalty program is designed to enhance our brand and build value. We have learned that our loyal customers have the ability to be our best sales people and evangelists for our business.

CX is another hugely important piece of your customer-centric focus. Can you talk about how and why CX has become a massive priority, and what your goals are as a company in this area?

Customer Experience has to be a top priority in our business. We couldn’t succeed if our customer family didn’t have an amazing experience when purchasing from our dealership. Customers rely on our knowledge, ability, and honesty when making their decision to purchase from Blue Springs Harley-Davidson. We are located in an extremely competitive market with three other dealerships to choose from and we need to stand out. We up our game by delivering a customer experience that makes our customers feel like family because, in all reality, that is exactly what they are to us, family. Our goal is simple: We want everyone who steps through our doors, whether it’s to purchase their 10th bike or just to look around because they needed a place to stretch their legs, to feel welcome, wanted, and appreciated.

How do you define CX?

It’s all in how we make our customers feel before, during, and after a purchase or visit to our dealership. At Blue Springs Harley- Davidson, our customer’s experience needs to outshine any purchasing or shopping experience they’ve ever received. We aim to empower our customers with information about the Harley-Davidson brand and products to arm them with the knowledge to make a

confident buying decision. This entire process with the customer creates a relationship that will directly impact their experience with us.

How do you measure the effectiveness / efficacy of the CX program?

We ask our customers. We do stages of follow ups not only on purchases but on dealership visits. Our sales and service team, along with our CRM call each customer after a visit or phone call to our dealership within 24 hours. Customer Experience Surveys get sent out to each motorcycle buyer on how they rank their buying experience with Blue Springs Harley-Davidson. All of these followups are compiled into a CXI report. With this data we improve our processes and train our staff to ensure it benefits our customers and their experience with Blue Springs Harley-Davidson.

How does the “Voice of the Customer feedback” impact your customer experiences?

The impact is tremendous. We are always looking for ways to improve. We are constantly tweaking our policies to better cater to our customer base as a whole. Customer feedback is crucial by letting us know what’s working, what our customers’ needs are, and where changes need to be introduced.

Family Atmosphere at Harley-Davidson Instills Brand Loyalty

When anyone hears the name Harley-Davidson, it immediately evokes two things: A revered motorcycle and consummate brand loyalty.

For Shonna Smith, Marketing Director & Experience Coordinator, Blue Spring Harley-Davidson in Missouri, customer loyalty is nearly a given after someone purchases a Harley-Davidson motorcycle.

Loyalty360 engaged Smith in a riveting discussion about the amazing brand power behind Harley-Davidson and supreme pride and customer loyalty.

WELCOMEWE WANT TO HEAR FROM YOU!

To get started:Enter 5-digit dealership code

What keeps you up at night as a marketer? What is your biggest challenge?

Creating an environment where most, if not all, needs of employees and customers are being met. The biggest challenge for me is balance. We need to create value without discounting our products. The Harley-Davidson brand speaks volumes and the Blue Springs Harley-Davidson brand needs to meet and exceed those expectations.

Has there been an “ah-ha” moment in this journey?

There have been a few, but the moments that have made the most impact are not only when we succeed, but also when we don’t quite hit our mark with a customer, when we could have done better. Retail is an evolving business and change is a necessity in order to achieve success. How things worked 10 years ago, three years ago, or two months ago may not work today. We have made a commitment to always be better today. Once we realized this fact we have continuously improved our customers experience and our business in its entirety.

Simplicity was one of the main themes at our Loyalty Expo Conference in April. How do you simplify your customer relationships to enhance brand loyalty?

To create brand loyalty, customers need to feel your brand and products have value. Customers need to feel they have value to your business. Build your brand value in your customers’ lives and they will remain loyal to not only the brand, but also to you.

Marketers are tasked to be more data-centric than ever before, yet the challenge of creating actionable insight from data is more challenging than before. What is your advice for marketers?

Set goals. Communicate with your staff. Communicate with customers. Have a loyalty program that is easy to understand, to navigate, and to expand. CLUTCH has allowed us to enhance our program which resulted in growing our customer base and increasing customer satisfaction. Review key metrics such as: Sales dollars, redeemed loyalty benefits, and customer satisfaction will give insight on your customers and brand focus.

Can you give us a high level overview of your customer philosophy and share how this perspective helps drive more effective engagement and, therefore, better marketing outcomes?

We are successful in our business because of our customer base, their commitment to us, our brand, and this lifestyle. Knowing how to build

the value of our brand ensures more engagement as we move forward. Communicating the benefits and showing appreciation by rewarding customer loyalty and interaction creates a positive outcome for all involved.

In a move toward customer-centricity, if you could give one piece of advice to a brand to help them increase loyalty and engagement with their customers, what would it be?

Care. Care about the people who are choosing YOU to do their business with. Customers have options. They can go elsewhere to spend their time and money. Our family of customers chose us because we genuinely care about them, we listen to their feedback, and strive to deliver the best buying experience.

What do you think is the key to acquiring and retaining customers today?

Provide an experience customers hold on to, an experience they love and they want to share with their family and friends. By creating an exceptional experience, a relationship develops resulting in customer retention based on trust. When customers trust the brand, products, and staff helping them achieve their dreams, they will remain loyal, in turn, growing your business. Blue Springs Harley-Davidson has grown by welcoming our customers into our family. We share love of the Harley-Davidson brand. It is our goal to be a positive force for our brand and an advocate for our customers who choose to live the Harley-Davidson dream through our dealership. L

“Build your brand value in your customers’ lives and they will remain loyal to not only the brand, but also to you.”

Photographs courtesy of Rachel Dunning of Rae of Hope Photography

FEATURES



Everyone wants to be happy, and everyone wants a memorable experience wherever they go.

At Hwy 55 Burgers, Shakes & Fries, those two aspirational goals come together in a seamless, wonderful way.

Hwy 55 Burgers, Shakes & Fries has restaurants in eight states: North Carolina, South Carolina, Tennessee, Ohio, Virginia, Florida, Alabama, and Texas.

Happiness is the theme of each and every one of those restaurants, according to Andy Moore, Director of Communications for Hwy 55 Burgers, Shakes & Fries.

“We are a brand in the business of happy experiences,” Moore says. “We hold the door open for our guests when they walk in our restaurants, and we cook an amazing burger in front of them at an open-air grill. When you’re dealing in such personal, face-to-face interactions, where a smile can make or break an experience, CX is everything.”

Hwy 55 Burgers, Shakes & Fries comes from humble beginnings.

“The first Hwy 55 opened in a mall in 1991, and there were no deep-pocketed investors to help market our restaurants against the other burger brands at that time,” Moore recalls. “We were forced to grow our customer base organically, allowing our guests to be the biggest proponents for our growth. Over 24 years, they’ve showed us the power of a CX-driven focus.”

Moore says the brand promise is to “Provide a fun restaurant experience that satisfies customers’ hunger for fresh food and hospitality.”

As a result, the company’s CX policy is defined by the touch points where its guests receive an amazing experience both inside and outside via a robust loyalty program.

“If our guests can say that they not only enjoyed the way they were treated at Hwy 55, but they’d recommend our brand to a friend or colleague, then we know they’re willing to put their reputations as tastemakers on the line for Hwy 55,” Moore explains. “Our extensive surveying hinges on that proposition, and it’s the starting point for how we define the efficacy of the customer experience.”

For the company’s loyalty program, specifically, “We check sales to see a correlation between an increase in loyalty program signups and same-store sales increases,” Moore says. “We also work with our loyalty partner, FiveStars, to monitor each store’s frequency compression — a metric that shows guests’ increase in visits once they become loyalty members.”

For 2015, Moore says the company has experienced monthly same-store-sales growth of 6%-8%, a number that has risen along with the user base. With average user bases of 1,050 guests per store, company officials can confidently track a correlation with sales.

Triggers Customer Loyalty atHospitality


On a broad level, Hwy 55 Burgers, Shakes & Fries hesitates to make sweeping changes based off customer feedback.

“We are confident in our products and overall brand proposition, and we believe that catering to every faddish whim ultimately will dilute what made us special in the first place,” Moore says. “That being said, many initiatives — from our loyalty program to our “Own It!” campaign, in which hundreds of customers sent in recipes for our 2014 monthly specials — were directly driven by voice of the customer feedback. We will continue to proactively survey our fans and take every email, voicemail, and online review seriously.”

A wonderful feature of the company’s loyalty program is that it sends

time-sensitive deals to its 120,000 members.

“There have been several moments over the past few months where I’ve been with friends or family members at the moment they’ve received the deal,” Moore says. “We try to make the deals really great, and seeing their eyes light up has made me realize we’re not so much driving traffic to our stores, we’re building relationships. That’s been fun.”

Hwy 55 Burgers, Shakes & Fries has a simple and straightforward reward structure.

“You receive one point per visit, and those points can be exchanged for free scoops of frozen custard, free specialty sandwiches, or later on, a free meal,” Moore explained. “I don’t think we’ll ever move toward a more convoluted point structure.”

Kenney Moore, the company’s founder and president, is a big proponent of servant leadership; the philosophy of each and every employee from the CEO down putting others’ needs before their own.

“We feel like this creates a universal desire within our company to put customers’ needs first, since, in this power dynamic, they sit at the top of the pyramid,”

Andy Moore says. “Before a marketing decision is made, we ask ourselves if our customers — who we feel pretty attuned to by now — will respond well to it. Then we roll.”

Involve all your employees in your mission, Andy Moore says.

“On Aug. 4, we closed down all our stores and threw an employee appreciation rally at the Durham Performing Arts Center to celebrate the year had by our cooks, wait staff, and operators,” he explains. “We drove home the message that all of us are in the business of making people happy — whether we’re signing up loyalty members or treating first-time guests like they’re family. We believe strongly that our mission is to love our neighbors, regardless of background or relationship with the brand — and as a sign that we got the message across, “Love Your Neighbor" was trending on Twitter in North Carolina at the rally’s end.”

What is the key to acquiring and retaining customers today?

“Hospitality,” Andy Moore explains. “At the moment, the restaurant industry is gradually improving and will benefit in the future from younger demographics eating out more — which will inevitably result in a more competitive marketplace. And it’s already pretty damn competitive! We believe that authentic hospitality and a quality product will be how you keep customers. Because there are just too many options to waste your time on a bad meal.” L

“Involve all your

employees in your

mission.”


LOYALTY FORUM: Q&A

Ask the Experts:With the advent of social, mobile and other emerging technologies, how do brands effectively improve the customer experience and engage their audiences in this challenging and very dynamic marketing environment?

The commonality of existing and emerging communication technologies is the immediacy of conversations taking place on them, the ubiquitous access to

information enabled through them, and the convenience of their usage. Immediacy is becoming a consumer expectation and there is no longer a line between reaching out to businesses vs. friends or family. Generation

Y, or anyone with the millennial mindset, is no longer tech-savvy – they are tech-dependent. And mobile/social are the cornerstones of their lives. What

does this mean for brands? Communicate often, but add value.

Customer service is the new marketing, so don’t over-broadcast your carefully crafted marketing messages – they’ll get torn apart anyway. Use the opportunity to make

your customers smarter, help them discover and make things easy for them. Studies show that self-service is preferred by customers over live service with wait times and poorly trained agents. An increase in inbound self-service or automated outbound communication does not equate to an increase of costs like it does when live agents are used for the engagement. On the contrary, it can actually reduce costs. Reaching out more often means more engagement, and that’s what is important to brands.

Given the dynamic nature of mobile and social, only cloud infrastructure can provide the flexibility needed to respond. Engaging in a 12-month pilot without further commitments or capi-tal expenditure with quick ramp-up and no further risk? Not possible in the old, pre-cloud world.

Embrace the new. Be brave. Try things out, while mitigating risk. Your customers will appreciate your attempts at making things easier for them. And mobile/social = easy.

— Tobias Goebel, Director of Emerging Technologies | Aspect

“Communicate often, but

add value.”


Let’s face it – we’re all living in a state of digital fatigue. You feel it, I feel it and your loyalty members certainly feel it too. Using direct mail as the primary driver of your loyalty program can not only break through the digital “noise,” but your members and prospects enjoy receiving mail! Consumers appreciate its tangibility, flexibility and once-a-day frequency. This is reflected in exponentially higher response rates over digital and mobile channels according to the 2015 DMA Response Rate Report.

With today’s sophisticated digital print technology and workflows, you can use consumer data to create highly-personalized content and offers on paper that were previously only available through digital channels. And while direct mail is primarily a customer acquisition method, it can be used for customer experience and engagement efforts as well. Using customer data, you can send personalized offers that address each recipient’s individual needs, goals and pain points.

That’s not to say it’s all or nothing with direct mail. Its high response rates can augment your digital efforts, with technologies such as personalized URLs, Augmented Reality, and QR codes driving members to digital channels and creating a more omnichannel approach to your campaigns.

Give direct mail a try and let your members do the talking. You’ll see increased response and involvement with your customer loyalty and engagement efforts.

— Debora Haskel, VP of Marketing | IWCO Direct

The greatest impact that emerging and digital technologies such as mobile and social have on customer experience isn't the way it changes how companies serve their customers. It's the ways that these disruptive forces have and will continue to radically change customers’ expectations of the companies that wish to serve them.

Today’s smart, digitally-enabled customers have greater expectations of service, less tolerance for mistakes, and a higher likelihood than ever of leaving if expectations aren’t met. When it comes to more effectively serving and engaging your customers in this swiftly changing environment, there are many different things a brand can do to improve customer experience and help drive engagement.

These are five of the most critical:

1) Learn to listen to and better understand your customers, their wants and their needs.

2) Align your company around meeting the needs of your most important customers.

3) Identify and eliminate the persistent pain points that exist in every customer journey.

4) Dramatically reduce complexity, making experiences easier and more enjoyable.

5) Leverage technology to make digital interactions more personal, and personal interactions more effective.

In today’s mobile-first, digitally-driven world the challenge for brands is to focus all their efforts on meeting and, where appropriate, exceeding customer expectations.

Make no mistake - this won't be easy.

For most companies, it will mean making customer experience a true priority, and consistently delivering the seamless, end-to-end experiences your customers don't just expect, but demand - regardless of segment, journey, channel or device.

“Dramatically reduce complexity, making experiences easier and more enjoyable. “

— Michael Hinshaw, President | McorpCX

28 Loyalty Management™ • LOYALTY360.ORG28 Loyalty Management™ • LOYALTY360.ORG

LOYALTY FORUM: TRENDING NOW

PERSONALIZED VIDEOPersonalized video, also known as viewer-driven video, smart video or interactive video, is catching on in industries where customers’ confusion about bills and statements can negatively impact satisfaction and drive up call center costs. Companies in insurance, telecom, utilities and other industries are presenting customers with uniquely designed videos that make their bills and statements easy to understand. Personalized videos are also being used to engage customers with relevant content at other critical stages of the customer lifecycle, by delivering highly personalized messages when, where and how the customer prefers to receive them.

Brands that offer

Personalized Video:

Coalition Programs to look for in the U.S.:

Brands that are Surprising and

Delighting Customers:

SURPRISE AND DELIGHT LOYALTY TACTICSAs it becomes more difficult to differentiate based on a loyalty program alone, many brands are making surprise and delight a critical component of their loyalty strategies. Surprise and delight elements are being used to establish emotional connections with consumers across any and all consumer touch points – customer experience, customer engagement, events, social media, mobile marketing, email communications and more – with the ultimate goal of building long-term customer loyalty. Such tactics are often used as a complement to, rather than a replacement of, a traditional loyalty program and may include invitations to exclusive events, access to new products before they launch or simply being surprised with a free product at the point-of-sale.

COALITION LOYALTY PROGRAMSWhile not a new concept, especially in markets like Canada, Europe and Australia, coalition loyalty programs are gaining attention in the U.S. Plenti, a U.S.-based loyalty coalition operated by American Express, was heralded as the first U.S.-based loyalty coalition when it launched in May 2015. The program offers members the ability to earn points and save on items at lots of different retailers, including Macy’s, AT&T, Rite Aid, Exxon and more, regardless of the payment method used. Coalitions for fuel rewards and airline frequent flier miles already exist in the U.S. and programs like Nectar and Air Miles Canada have proliferated in other markets around the world.

Trending

NOW

TM

WANT BUZZ WORDS? OR REAL

SOLUTIONS.Brierley+Partners o� ers proven CRM, Loyalty

and Customer Engagement solutions. The Thinking. The Technology. The Execution.

Contact us today at 800-899-8700 or visit us at brierley.com

GLOBAL CRM + LOYALTY INNOVATORS

Pub: Loyalty Mgmt 11231 BP 08-05-15Ad purchased: half page, 4-colorFile Format: PDF/X-1aBleed: .25”Trim: 8.375” x 5.3575”Live: 7.875” x 4.85”

BP_11231_LoyaltyMgmt_2015_HalfPg_Ad_8_375x5_3575_x1a.indd 1 8/5/15 5:03 PM

The Customer Engagement Agency

Empowering clients to unleash the full value of their customers by transforming big data into intelligence-driven marketing and customer engagement.

ansira.com

DATA SERVICES

MARKETING INTELLIGENCE AND ANALYTICS

CRM

LOYALTY

STRATEGY

DIRECT ANDDIGITAL CHANNELS

SERVICES INCLUDE:

ATLANTA CEDAR RAPIDS CHICAGO DALLAS DETROIT LOS ANGELES NEW YORK ST. LOUIS

972.663.1100

N

Y

N

ANSP101-0101_Loyalty360 Loyalty Management AdNAAD

7.5" x 10.0"

8.375" x 5.3575"

8.625" x 5.6075"

4/0

100

Art Director SW Client PartnershipNOTES: ANSP101-0101-Loyalty360.indd 1 8/12/15 5:39 PM

WANT BUZZ WORDS? OR REAL

SOLUTIONS.Brierley+Partners o� ers proven CRM, Loyalty

and Customer Engagement solutions. The Thinking. The Technology. The Execution.

Contact us today at 800-899-8700 or visit us at brierley.com

GLOBAL CRM + LOYALTY INNOVATORS

Pub: Loyalty Mgmt 11231 BP 08-05-15Ad purchased: half page, 4-colorFile Format: PDF/X-1aBleed: .25”Trim: 8.375” x 5.3575”Live: 7.875” x 4.85”

BP_11231_LoyaltyMgmt_2015_HalfPg_Ad_8_375x5_3575_x1a.indd 1 8/5/15 5:03 PM

The Customer Engagement Agency

Empowering clients to unleash the full value of their customers by transforming big data into intelligence-driven marketing and customer engagement.

ansira.com

DATA SERVICES

MARKETING INTELLIGENCE AND ANALYTICS

CRM

LOYALTY

STRATEGY

DIRECT ANDDIGITAL CHANNELS

SERVICES INCLUDE:

ATLANTA CEDAR RAPIDS CHICAGO DALLAS DETROIT LOS ANGELES NEW YORK ST. LOUIS

972.663.1100

N

Y

N

ANSP101-0101_Loyalty360 Loyalty Management AdNAAD

7.5" x 10.0"

8.375" x 5.3575"

8.625" x 5.6075"

4/0

100

Art Director SW Client PartnershipNOTES: ANSP101-0101-Loyalty360.indd 1 8/12/15 5:39 PM


BehindtheBrandWITH JAVIER FLAIM, CEO | RECYCLEBANK

LOYALTY FORUM: BEHIND THE BRAND

PLEASE GIVE US A LITTLE BACKGROUND ON YOUR FOCUS AT RECYCLEBANK AND QUICK RECAP OF HOW RECYCLEBANK EVOLVED OVER THE PAST 10 YEARS TO ANSWER THE NEEDS OF TODAY’S CUSTOMER.

We started with a simple idea: could incentives get people to recycle more? The answer was yes! Waste disposal is one of our largest economic and environmental issues of our time – and recycling is one of the easiest ways to start making a difference.

For more than 10 years, Recyclebank has been working toward a waste-free future by focusing on the real-world impact of inspiring and motivating individuals. As the first rewards-for-recycling program of its kind, it introduced the principles of a circular economy to a mainstream audience. By partnering with communities and a variety of brands, Recyclebank leverages its Marketing-as-a-Service (Maas) Platform utilizing data, education and incentives to encourage more than 4 million members to make better purchasing and disposal habits. A certified B Corporation, Recyclebank is headquartered in New York City.

WHAT IS THE BIGGEST CHALLENGE YOU ARE CURRENTLY LOOKING TO SOLVE?

Waste! We at Recyclebank want a waste-free future. And we know it’s difficult. The latest recycling rates in the U.S. were at a relatively stagnant 34% – there’s a big upside opportunity to increase that number, improve the quality of recycling (by tackling “contamination”) and reduce our overall waste. There’s over $1.2 billion in infrastructure needs in waste waiting to happen – but it’s difficult to find funding and support for some initiatives given recent dynamics in the recycling industry. But we are optimistic – better yet, we are resolute in our drive to find solutions that work. We cannot do it alone – we need the help of industry, private sector, public sector, universities, non-profits. Together, we believe we can make a real impact towards a waste-free future!

DO YOU (OR WOULD YOU) LIKE TO VOLUNTEER? WHAT ORGANIZATIONS OR CAUSES ARE YOU MOST PASSIONATE ABOUT?

Generally, organizations that help protect our natural habitat and environment are ones I get very much behind. From Ocean Conservancy to National Geographic to World Wildlife Fund, these are a sampling of organizations that are doing a big part to make the world a better place for future generations.

As CEO, Javier Flaim is responsible for the overall vision and strategic direction of the company – scaling and growing the Recyclebank behavior change platform by partnering with communities and brands to educate and encourage consumers to make smarter, more sustainable choices for a waste-free future. Through his work at Recyclebank, he is able to combine his passion for sustainability with his dedication to innovation.

“...always live in the steep part of the learning curve.”


IF YOU COULD INVITE ANY THREE PEOPLE TO DINNER (PAST OR PRESENT), WHO WOULD THEY BE AND WHY?

Steve Jobs, Anthony Bourdain, Pope Francis – and Bono drops in for a cocktail. Great innovation, spectacular food, engaging spirit – and some great music to boot!

IF YOU WERE NOT DOING WHAT YOU DO TODAY, HOW WOULD YOU BE SPENDING YOUR TIME?

Definitely time with my family – my wife and children, now 12 and 9 years old. They’re growing up so fast! Perhaps a nice long bike ride as well!

WE LIKE TO END THESE INTERVIEWS WITH SOME WORDS OF WISDOM. WOULD YOU PLEASE SHARE A TIP OR KEY LESSON YOU’VE LEARNED OVER THE YEARS?

[See personal motto] Plus I would advise that one simply does something that matters. Is what you’re doing making a difference in this world? I’d like to be able to look back at my life (family, work, community, spiritually) and answer an emphatic yes.

WHAT IS YOUR PERSONAL MOTTO?

Be optimistic, be compassionate and always live in the steep part of the learning curve.

WHAT BOOK ARE YOU RECOMMENDING & WHY?

Nudge by Richard Thayler and Predictably Irrational by Dan Ariely. Both books are in the field of behavioral economics – or the study of motivations and predictions around how and why consumers make (rational and at times irrational) decisions. We are in the business of motivating individuals for good – in our case, elimination of waste. And these books are great reads that really make you examine – as an individual, as a consumer, as a person in business – how to best construct systems that can create positive outcomes for our planet.

WHAT IS YOUR FAVORITE WORD? OPTIMISM.

WHAT IS YOUR LEAST FAVORITE WORD?

NO. (FOLLOWED BY, “WE TRIED THAT ALREADY”).

WHAT TURNS YOU ON CREATIVELY, SPIRITUALLY,

OR EMOTIONALLY?

PASSION & ENERGY. WHEN YOU WALK OUT OF A ROOM WITH MORE ENERGY THAT WHEN YOU WALKED IN TO A ROOM.

WHAT TURNS YOU OFF? THE OPPOSITE!

WHAT IS YOUR FAVORITE (PG-13) CURSE WORD?

“OH SHOOT”, THOUGH HONESTLY THE NON PG-13 VERSION HAS BEEN KNOWN TO INADVERTENTLY ESCAPE MY MOUTH.

WHAT SOUND OR NOISE DO YOU LOVE?

LAUGHTER – ESPECIALLY [MY] CHILDREN’S!

WHAT SOUND OR NOISE DO YOU HATE?

SIRENS. THOUGH WITH OFFICES IN MANHATTAN, IT’S TOUGH TO AVOID.

WHAT PROFESSION OTHER THAN YOUR OWN WOULD

YOU LIKE TO ATTEMPT?

TEACHER/PROFESSOR. OR SURGEON. SOMETHING TOTALLY DIFFERENT.

WHAT PROFESSION WOULD YOU NOT LIKE TO DO?

NOT MANY I CAN THINK OF, I’D TRY ALMOST ANYTHING (FOR A DAY).

IF HEAVEN EXISTS, WHAT WOULD YOU LIKE TO HEAR

GOD SAY WHEN YOU ARRIVE AT THE PEARLY GATES?

WELCOME...

* Inspired by James Lipton on “Inside the Actors Studio” we asked Javier to share his quick fire response to the questions originating from the French series, “Bouillon de Culture” hosted by Bernard Pivot.

12345678910

QUICK FIRE QUESTIONS*

Javier and his family at a recent vacation in the Ica Desert in Peru.

Left: Javier and his family... and Dog!

Glove Image: Javier Flaim at a Recyclebank Earth Day community event. We teamed up with MillonTreesNYC to help clean up and plant trees at Wolfes Pond Park in Staten Island.

LoyaltyInnovation

Products, Advancements & Technologies

LOYALTY FORUM: LOYALTY INNOVATION

At Idomoo, we believe that one size doesn’t fit all. We believe organizations should communicate with each customer through a personal video story that is bespoke to their needs and preferences.

With the new Dynamic Story Suite, from now on, the power is at the hands of the marketer to create a unique CX and deliver standout, meaningful, memorable and relevant stories to each customer personally.

An advanced SaaS based wizard tool to build, structure and customize the personalized video, the Storybuilder is where the wisdom of the video is defined. The output is a Storyboard that has the logic and content of the video campaign.

The Storybuilder allows you to choose ready-made video scenes that are ready to be plugged in to be part of the video flow. Additional new scenes can be uploaded to the Scene Library, that is part of the Storybuilder and easily added to the video flow as dynamic scenes.

The Storyboard can tell adaptive stories. It applies business logic to decide in real time, which scenes will be shown and in which order based on scene selection rules. The Storybuilder is used for configuring each scene: selecting colors, deciding if the parameters are static or dynamic, setting values for static parameters, setting audio and all video parameters that the brand might be interested in customizing.

Restore the 1:1 connection to your customers in this “always on” digital world with Personalized Videos. www.idomoo.com

Mobeam is making its mobile beaming technology SDK available to developers, enabling them to create their own android-based applications utilizing barcodes or other applications of beaming. A collection of self-service APIs and tools, the Mobeam SDK license will be offered free to developers for an initial period of 120 days with extensions available on a case-by-case basis.

Mobeam’s patented light-based beaming technology overcomes technical barriers and enables point-of-sale (POS) laser scanners to read barcodes on Android mobile devices. Popular “mobile payment” apps rely on NFC or other technologies that communicate with credit card payment terminals, but not with scanners. Mobeam enables true mobile “wallets,” meaning payment apps can now carry loyalty cards, membership cards, gift cards, tickets, vouchers and coupons, providing them with universal POS access at retailers. Mobeam technology integrates with all existing mobile payment apps.

Mobeam operates with more than 200 million Samsung phones, and the company is in talks with other manufacturers to expand the technology to other market leading devices.

In addition to mobile wallet applications for retail, multiple other industry segments are evaluating concepts for transmitting barcode-based content, including travel, transportation, loyalty, manufacturing and health care.

The Mobeam Beaming SDK for Android provides APIs for developers to generate and beam a variety of barcodes including UPC, EAN, Code 128, Codabar, GS1 Databar and others.

Developers can download the free SDK and access documentation at Mobeam’s developer portal at https://developer.mobeam.com

Verint Identity Authentication Helps Enable Faster Customer Verification and Stronger Fraud Detection in the Contact Center

For contact centers, the effectiveness of security questions is declining. Professional fraudsters can answer the questions thanks to stolen customer records from cyber breaches. Is there a new solution that strengthens fraud detection without impacting customer experience?

Enter Verint® Identity Authentication and Fraud Detection™: a “passive authentication” solution that automatically identifies known customers or fraudsters by analyzing the caller’s biometric voiceprint in the background of a call. The solution uses passive voice biometrics, which does not require a “passphrase” to be spoken. It can enroll or verify a caller’s voiceprint in the background of a call, as well as verify customers after hearing 10-15 seconds of caller talk time — notifying the agent of a match. This lets contact centers reduce security questions, which improves customer experience and reduces agent handle time.

Another benefit to the Verint Identity Authentication and Fraud Detection solution is that it can significantly improve fraud detection. It can enroll voiceprints of known fraudulent calls into a fraudster database. When a known fraudster calls, his or her voiceprint triggers detection — even if they answer the security questions. This becomes a significant deterrent to fraud.

The Verint Identity Authentication and Fraud Detection solution is native to the Verint Call Recording™ platform and available out-of-the-box.

Where customer experience and business results collide, disruption is the new norm. Tahzoo is at the forefront solving the biggest and most complex customer experience (CX) problems. Coupling innovative thinking with engineering rigor, we provide our clients with the services and solutions needed to deliver relevant and personalized customer experiences. An end-to-end 21st century CX agency, Tahzoo is pioneering with big brands to think differently about customer experience.

Today’s global enterprises increasingly rely on digital CX solutions to help differentiate their branded customer experiences. After doubling in growth, year after year and upon identifying this need, we merged with Netherlands-based digital agency HintTech. Through the merger, Tahzoo has more than doubled in size to become one of the largest independent CX agencies. Providing Fortune 500 clients with a range of industry-leading CX consulting services incorporating change management, customer insight, content and data strategy, analytics and user experience design – plus complete implementation and integration of marketing technology solutions including Web Content Management (WCM), Digital Asset Management (DAM), Customer Relationship Marketing (CRM), Marketing Automation and eCommerce. Tahzoo will also be able to take advantage of HintTech’s global delivery model and deep subject matter expertise to offer customers expanded scalability and 24x7 global support.

This merger further expands Tahzoo’s footprint across North America and Europe and will complement Tahzoo’s global client base in the financial services, retail, manufacturing and business services industries.

Learn more about digital transformation by visiting us here: www.Tahzoo.com.

Shoes are optional.

Inquisium (formerly Cvent Web Surveys) helps businesses of all sizes, across all industries create compelling feedback programs that glean actionable insights. With our easy-to-use feedback management platform and specialized survey expertise, our customers are able to better understand the world around them. Inquisium understands human connection like few other technology providers – and since people are at the core of every data point, we have a big advantage over traditional survey companies.Additionally, survey and feedback management programs have become an essential part of organizations’ decision-making processes. Inquisium has a wide range of unique features that make it easy to create effective feedback programs—no matter how simple or complex.

Solutions Inquisium provides include:• Voice of the Customer• Employee Engagement• Event Feedback• Training & Development Feedback• Hospitality Feedback• Enterprise Feedback Management• Directors & Officers Questionnaires

Exchange Solutions Smarter Loyalty for IBM Commerce helps retailers drive retention, customer lifetime value and profitability by identifying, valuing and closing high-value "customer behavior gaps" (valuable behaviors that customers are not performing). Whether enhancing an existing loyalty program, or implementing a new one, this solution enables one-to-one customer engagement, using individualized incentives to drive incremental behavior change.

Solution capabilities include:

• Individualized Behavior Gap analysis determines un-tapped customer potential

• "Propensity to Perform” Intelligent Rules Engine, which distributes just the right value of incentive, to the right customers, to obtain the desired incremental behavior

• True one-to-one customer engagement, providing customers with a choice of targeted incentives

• Interaction Management in real-time, in all channels

• Currency / Point Bank to manage all customer interactions, fulfillment and redemptions

• Ongoing optimization based on machine-based learning

Smarter Loyalty is the only loyalty solution to be validated by IBM as Ready for Smarter Commerce for WebSphere Commerce. It is also seamlessly integrated with IBM Tealeaf and IBM Digital Analytics, requires no additional capital expenditure and is delivered via a cloud-based platform and supporting processes / analytics. Smarter Loyalty is available under a fee-for- service model or via a performance-based fee structure to lower upfront investment and risk.


Kieran Donahue | Vice President of Marketing Americas at Hilton Worldwide

What is the state of marketing today?

The media landscape and the way people consume and share news and information is constantly changing. It means that we have to find new ways to tell our stories leveraging different channels, tools and approaches. The expression ‘content is king’ has never been more true, but in today’s crowded content-marketing space, we should all be asking what kind of content we’re creating. It’s strength. It’s value.

What will be the biggest challenge for marketing in the next three to five years?

The biggest challenge for marketers in the next three to five years is to simply add value. We ask consumers to share our content, recommend our brand to friends, but what are we giving them in return? Now, and future forward, brands must tap into consumer’s rational, emotional, and societal needs to make sure we are giving not just receiving.


The good news is that marketers have access to data that can be sliced and diced and analyzed in millions of ways. The bad news is that data itself is not an insight–this is where time and analytical thinking become crucial. Facts, trends, and observations are not insights, but rather it is the connection between them that helps us find the white space and opportunity for to connect with consumers.

We recently analyzed data and feedback from more than 44 million HHonors members. We learned something simple, but very important, that guests want greater choice and control when it comes to their stay. In learning this, one of the first things we did was introduce new technology to enable our guests to select not just their room type, but the exact location in the hotel.

They can also customize their stays by purchasing upgrades and making special requests for items to be delivered to their room. Soon, guests will be able to order food and beverages ahead of time.


Our vision is to fill the earth with the light and warmth of hospitality. At Hilton we want to be the preeminent global hospitality company–the first choice of guests, team members, and owners alike. In order to do this we have to always put our customers first.

Providing top-notch service has always been at the crux of our business. It is our No. 1 job to make sure our guests have the most positive experience when they stay with us so that they leave feeling like they were well cared for during their stay. At Hilton, it’s about putting the guest first and offering unique ways to personalize their stay and ultimately achieve the greatest level of satisfaction.

When we put our customers first we are able to engage with them in more meaningful ways and establish a mutually beneficial outcome. Our customer philosophy allows us to create third-party brand advocates who are loyal to HHonors because of the level of service and consistency they know they can expect from us.

In the move toward customer-centricity, if you could give one piece of advice to a brand to help them increase loyalty and engagement with their customers; what would it be? What would it have been two years ago and what might it be in two years?

If I could give one piece of advice to help brands increase loyalty and engagement, it would be to get to know who their customers really are and what they really need. Two years ago, it was all about the brand, but today the focus is about what the customer needs and more specifically what the brand can do for them.

Hilton’s Customer-centric CultureF o r g i n g E m o t i o n a l B o n d s


It’s always interesting for brands to hear what other brands are doing or thinking about the state of marketing, customer loyalty, customer engagement, technologies being used to reach certain goals, and the attendant challenges.

Loyalty360 had the pleasure of interviewing three top executives at Hilton Worldwide about those very topics.

Here’s what they had to say:

Continued on page 36



“The biggest challenge for marketers in the next three to five years is to simply add value.”


FEATURES

Andrew Flack | Vice President Product Marketing, Customer Insights & B2B Marketing at Hilton Worldwide

The “clarion call” for today’s marketing strategist is engagement. How do you define engagement? What key step can best drive audience engagement today?

For Hilton, engagement is about driving outcomes based on what we do, rather than what we say. It means increasing guest trust through our products, service and overall experiences.

For example, our members have the option to check-in and choose their room from a digital floor plan via their mobile device, which means they know exactly where they are going and what they are getting–right down to the thread count on their bed linens.

We also ask for feedback and take it seriously when it’s shared. For example, our members were vocal about the need for free Wi-Fi and the fact that it would make their travels easier. So we listened closely, tested out different options and recently announced that will provide free Wi-Fi to all Hilton HHonors members when they book directly through us for their stays starting this summer.

With the advent of social, mobile and other emerging technologies, how do brands effectively improve the customer experience and engage their audiences in this challenging and very dynamic marketing environment?

We’re committed to offering our guests unique experiences that enrich their travels. The individuals at our properties who serve our guests day in and day out are passionate about their work, and it’s something our customers appreciate.

Our expert concierges are willing to handle requests no matter how difficult or unique, as demonstrated by our True Waldorf Service program with dedicated personal concierges for guests before, during and after their stays. Our executive chefs are always experimenting with new ways to satisfy our guests’ taste buds and stay ahead of the curve. And, our front desk staff offers a friendly welcome to all, including our Huanying program, which is tailored to the Chinese traveler, offering a customized hospitality experience during their stay with the importance on arrivals – to more than 110 Hilton Worldwide properties globally.

To further improve our customer experience, we extend benefits to guests who book directly with us. Benefits include the lowest prices available, digital check-in and room selection and HHonors Points and

benefits, including special bonus offers, complimentary breakfast, late check-out and much more. And, later this year, we are introducing mobile-enabled room keys to all U.S. hotels across four Hilton brands: Waldorf-Astoria Hotels & Resorts, Conrad Hotels & Resorts, Hilton Hotels & Resorts and Canopy by Hilton. By the end of 2016, mobile-enabled room keys will be deployed globally across 11 of Hilton’s brands. This will allow guests to use their smartphones to skip the front desk and go straight to their rooms upon arrival, making their stay with us even easier.

Beyond the on-site experience, Hilton Team Members are available to assist our guests via Twitter, Facebook, FlyerTalk, phone and email. We’ve prioritized trainings for our Team Members so we can be present across all channels and communicate with guests on the channel they prefer most.

What are the challenges you see with multichannel communication for today’s marketers and how do we best address this opportunity for increased engagement?

When communicating across multiple channels, marketers must ensure that the messages they are conveying are consistent and effective. We must go beyond standard blanket messages and customize our communications for the channel we’re on. Being limited to 140 characters on Twitter allows us to send the most relevant and engaging updates with that community. On email, we’re able to take more time and go in-depth with our vision for the future of travel. On Instagram, we’re painting a picture and telling the Hilton story through power images and words.

How do brands effectively engage individuals in this diverse and data intensive ecosphere?

Brands do this by actively listening to their customers and stakeholders and utilizing the data to create personalized experiences. It’s critical to use a variety of channels to discover what a brands most loyal audiences’ value and improve their services and offerings by collecting constructive feedback and insights. For example, we’ve spent a great deal of time on FlyerTalk over the last year listening to and resolving issues for our members. Our most passionate members take to FlyerTalk to share their feedback and insights on Hilton, and because of that, we’re able to make changes, shift opinion and ultimately provide our members with benefits that are most important to them.

“Mobile devices are becoming travelers’ remote controls, enabling them to shape and steer their entire travel experience in a meaningful way. ”

Hilton continued...



Dustin Bomar | Vice President, Digital Acquisition and Brand Marketing at Hilton Worldwide

What new/trending technology do you believe has the best ability to evoke the senses to shape and steer meaningful and desired experiences for products and brands?

Mobile devices are becoming travelers’ remote controls, enabling them to shape and steer their entire travel experience in a meaningful way. Our industry’s future depends on personalization and “connect-edness”–we’re making the guest’s experience seamless from booking, to check-in, to in-room and beyond.

Specifically, we’re empowering Hilton HHonors members to personalize their stays by using the app or website to check-in and choose their preferred room from a digital floor plan prior to their arrival. Using the app’s “Request Upon Arrival” feature, guests can also customize their room – by ordering extra down pillows or a cold bottle of champagne, for example – to be ready upon their arrival.

This year, we’re making our guest experience even more streamlined and connected by enabling guests to simply and securely use their smartphones to unlock their hotel room door. By the end of 2015, this feature will be available across the U.S. properties of four brands: Hilton Hotels & Resorts, Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts and Canopy by Hilton.

What emerging technology do you believe will have the greatest impact in helping drive more effective engagement and therefore better marketing outcomes?

I think technologies that are up-and-coming, like Gravy, Pocket app and OpenTable, are changing the way customers travel and experience new cultures and cities – enabling them to engage with their local surroundings in unique, personalized ways.

At Hilton, we hear from our guests every day about what they are interested in, where they want to go, the experiences they want to have and so much more. With the advancements in big data and location services, we always can be smarter about what makes each of our guests unique. Micro and macro location targeting combined with new platforms will let us create many new types of experiences for our guests that uniquely complement their preferences.

In short, technology that provides guests with more control and the ability to personalize their travel experiences will drive the most effective engagement, and in turn earn loyalty.

How should brands attempt to keep up with the rapid proliferation of technologies, especially with some of the newer technologies harder to measure versus more traditional technologies that brands are more comfortable with?

Hilton prioritizes its people power and invests in creative, innovative and strategic team members who are never short on ideas, solutions or success. We also focus on leveraging innovative technology to build things that are truly exciting and useful to our guests, as opposed to temporarily patching guests’ digital desires with commonplace tech. While that seems like a small distinction, it helps keep our strategy more stable in a very dynamic technology environment. L


Paul Gordon Rymax Marketing Services, Inc.


Workplace motivation can be a challenge, especially with a multigenerational office. What inspires Baby Boomers, won’t necessarily excite Generation Xers, and Millennials won’t be inspired by their more seasoned co-workers’ motivations.

The constant struggle to motivate employees is universal in business. Employees are individually motivated by various factors, no two are alike. How do managers ensure the entire office is encouraged to reach individual goals? Through a loyalty program.

When building a recognition program for employees, managers must acknowledge and understand what drives the generations present in the office.

Consider the pool of different demographics that currently makes up the workplace; Baby Boomers, Generation Xers and Millennials. Each will respond to motivation uniquely based on their social norms, behaviors and values.

Through demographically segmented employee engagement tools and a well-rounded loyalty program, employees will feel individually motivated to reach professional goals.

An engaged workforce translates to 22 percent higher profitability; 21 percent higher productivity, 37 percent less absenteeism and employee turnover (on average) and 48 percent fewer safety incidents. Understanding how to successfully target individual engagement levels starts with gaining knowledge on how each demographic is encouraged.

According to the Huffington Post, Boomers are traditionally motivated by money and status such as office location, attending respected events and being the boss.

Generation Xers are the first generation to focus on maintaining an equal work / life balance as they saw their parents who were very loyal to one company for 20 or 30 years get laid off towards the end of their careers. Millennials are taking a similar approach, wanting more work/life balance, freedom and opportunities to grow. They are driven by a desire to better themselves, ongoing recognition, and the ability to socially share their successes and to feel like they’re doing meaningful work.

When companies empower their workforces through loyalty programs, it opens up lines of communication between departments and multigenerational peers. Providing real-time acknowledgment allows for peer-to-peer encouragement, inspires employee engagement between departments and fosters a healthy office culture.

Additionally, it harnesses focus and encourages the completion of a specific goal by generating teamwork or, sometimes, producing a healthy competitive element. Meaningful recognition takes the “it’s your job” component out of the conversation and promotes a sense of belonging and community within the workplace.

Furthermore, offering the most desirable trending products for recognition as part of the program is an effective motivator that inspires employees to continue striving for greatness.

A tangible reward is a reminder of the company’s investment in employees, individuality is imperative; not every employee has the same taste in rewards. Segmentation allows for identification of each demographics’ recognition expectations and relevancy of applicable rewards.

It’s important to incorporate gifts that will engage with every demographic. For example, Baby Boomers are in search of practical home gifts from brands such as Viking or Mikasa. While Generation Xers are attracted to items best for a busy lifestyle, yet maintain more traditional values like Klipsch and Roland. As the first generation to grow up alongside the internet, Millenials tend to be thinking top-name brands like Michael Kors or Furla, and technology-forward options like Skullcandy.

The power of products in a recognition program are twofold: trophy value that lasts for years and the bottom line to the company: higher perceived value at a lower cost.

The rewards have to be high brand equity products. Today’s workforce wants the “real deal,” not promotional items. Motivate people with items that are aspirational and something that they would want to buy on their own but can receive in a rewards program, and give them a choice.

Effectively motivate and manage a multigenerational office through a strong recognition program. Inspire the individual and yield results. L

Paul Gordon is Senior Vice President of Sales for Rymax Marketing Services, Inc. In his 25 years in the industry, Gordon has worked for a variety of global Fortune 500 companies, including those in the consumer products and telecommunications industry.

An Engaged Workforce

Translates To

Higher Profitability22%

cogensiaA CAC|GROUP Company

Attend the 2015 Engagement & Experience Expo

REGISTER NOW @ ENGAGEMENTEXPO.COM

Learn Proven Strategies Meet Technology Providers

Discover New SolutionsNovember 9-11, 2015

Hilton Dallas Lincoln Centre | Dallas, Texas

2 01 5

MonTue

Wed



Brands that adapt to consumers’ digital tendencies and create a personalized experience are able to engage with their customers on an individual basis, strengthen their competitive advantage and build a loyal customer base.

The Customer-centric Digital ExperienceConsumers move seamlessly between their devices to send emails, post a social up-date, watch online video, pay bills and shop online, and they expect the brands with which they interact during each of these transactions to provide the same experi-ence across every device and touch point. Brands that can truly provide a consistent, personalized experience will make their customers feel valued and earn their repeat business.

Personalization allows brands to tailor the experience for each customer, giving cus-tomers exactly what they’re looking for when they’re looking for it. This is only pos-sible with the availability of first-party customer data. Housing data in a single data repository provides full visibility into the preferences and behaviors of the customer base across every interaction they have with the brand, from transactions to brows-ing history to service calls. If a customer makes an online purchase and later submits a service query, the agent should have a full overview of the customer’s transactional history and preferences in order to continue tailoring the experience to the customer. Siloed initiatives result in a broken, segmented appearance to consumers, which makes it difficult to create lasting relationships and turn customers into advocates.

With the wheels in motion for a customer-centric digital experience, brands next need to drive digital engagement throughout the customer journey by encouraging customers to choose digital channels before any others when connecting with the brand.

Driving More Digital Engagement with Personalized VideoThough customer relationships frequently begin on digital channels, brands are launching initiatives to extend digital engagement throughout the customer lifecy-cle, essentially taking a digital-first approach to customer engagement. Brands are putting digital at the forefront of the customer experience and working to generate awareness and use of their digital offerings, such as a mobile app, online customer service channels or an autopay feature. This means brands must teach and encour-age customers to choose digital channels as the primary means of connecting and transacting with the brand.

Jim Dicso SundaySky

How Personalized Digital Experiences Win Loyal Customers

Every company today is undergoing a digital transformation. Consumers’ first interactions with brands frequently begin through a digital channel, which means brands need to extend their customer experience to include digital. Smart brands are not just haphazardly using digital channels to connect with customers. They’re building a customer-centric digital experience, using data to personalize customer interactions, seamlessly connect the experience across touch points, and drive more engagement in the digital realm throughout the entire customer relationship.


Brands can use personalized, 1:1 communication through the most engaging digital medium – video – as the basis of a communication strategy that teaches consumers to adopt digital behavior at the point of every customer transaction. Each transaction through the customer journey, whether related to shopping, service or account management, is another opportunity to reinforce this message. Brands can follow up each transaction with a personalized video that’s relevant to the cus-tomer – based on interests, profile, transactional history and current behavior – and designed to teach and influence the customer to use digital channels when connecting with the brand.

For example, when a new or existing wireless customer purchases a new device, they either leave the store with their new device or have it shipped and receive it via mail. The call-in rate for these customers can exceed 100 percent within 60 days of receiving the device, with questions that could be avoided if customers leveraged digital support channels and resources. With a personalized video, the wireless car-rier teaches customers to use digital channels first, such as changing account information, managing shared data, paying a bill or adding a feature, all in an effort to reduce costly calls to the contact center. The personalized video greets the customer by name, recaps the details of the transaction, instructs customers on how to activate their new phone and transfer content between devices, and then points custom-ers to an online how-to center to learn more about their new device.

Using video as the communication vehicle helps the brand delight customers with a positive experience, as video captures a customer’s attention and can visually and verbally convey messages in an easy-to-understand manner.

Personalized Digital Experiences Foster LoyaltyIf brands want customers that are more engaged, more loyal, transact more frequently, cost less to serve, and are more willing to recom-mend the brand – and of course they do – they need to prioritize a digital customer experience. Digital channels allow brands to put their

customer data to work to personalize each interaction, fostering a positive and unique experience that keeps customers coming back. Putting customers at the center of their digital transformation ensures brands focus on what matters most: their customers’ experience with the brand. L

Jim Dicso is president and chief revenue officer of SundaySky. Jim drives the go-to-market strategy, sales execution, business development and revenue growth for SundaySky to support the growing market demand for the company’s SmartVideo solution. Jim has a Bachelor of Science in electrical engineering from Villanova University.



In October 2013, eBags relaunched its Rewards customer loyalty program that had

existed for eight years, but was dormant for about five, Cobb notes.

Due to the reality of skyrocketing marketing and customer acquisition costs, Cobb says differentiating via a loyalty program is a necessity for any successful marketer.

“A loyalty program successfully implemented is one of the top ways to differentiate today with marketing costs as expensive as they are,” Cobb explains, “and with consumers having so many options. Consumers are more tech savvy in the shopping environment and a loyalty program is one of the key ways to increase customer engagement.”

Prior to the loyalty program relaunch, company officials spent six months evaluating what elements of the program worked and where they wanted to go. They created a specification document that showed what to build and what the end result should look like. During the assessment, Cobb says company officials reviewed areas that were missing or sub-optimal. They realized that people didn’t understand and lacked awareness of the program. eBags.com understood it wasn’t really communicating with members about expired points, and so now the company communicates with members on a monthly basis about points, two weeks before points expire, and one day before expiration.

“We had an adequate rewards program before then, but didn’t feel it was robust enough or flexible enough,” Cobb explains. “We just felt like it was time to really go after people and try and get them to come back more often and put a shine on some of the elements that needed it. We did benchmark other programs like Overstock.com, Drugstore.com, Moosejaw, and Amazon. Most of the input we had on changes was internal, and not from customers. We decided to rely less on paid marketing partners and more on free traffic (loyal customers and customer database).”

.com

Seeks Differentiation Through Customer Loyalty

An enticing, attractive, and thoroughly rewarding customer loyalty program can go a long way toward forging a key point of differentiation for any brand.

And for Peter Cobb, Founder/EVP Marketing for eBags.com, the fact that his company is a pure play means that “we have to win them over on loyalty.”



Cobb described some of the loyalty program improvements as “blocking and tackling” items to “make it easier to let people know they have points, how many they have, and do a better job of institutionalizing the program within eBags.com. We have a very simple thing. A window shade comes down and exposes the amount of active points a member has. Every email that goes out has the member’s amount of points in the header.”

Before the relaunch, Cobb says customers viewed the rewards loyalty program as an email program.

“We realized we needed to treat these people differently and give them extra incentives,” he says. “Why don’t we give bigger discounts to people who have been loyal to us? Our feeling is once somebody purchases three times, then their lifetime value goes up.”

Now with a new CEO (Mike Edwards, who began Aug. 3), Cobb believes eBags.com can enhance its loyalty program even more.

The relaunch of the rewards program and site redesign has allowed for more flexibility within the marketing team, Cobb says. Typically, a loyalty program member receives 5% cash back on their next purchase.

“But now the marketing team has the authority to give double or triple points for our best customers,” Cobb explains. “During the holiday season, we tested sending $5 and $10 gift certificates to different customers. It drove almost $1 million in sales. The rewards program gives eBags a way to differentiate from other sites and not rely on sitewide coupons.”

Cobb is proud of the fact that eBags.com has more than four million members in its loyalty program now.

“We’ve stuck with a rewards program that is similar to a traditional airline miles program,” Cobb says. “I think it’s time we branch out from that and add other benefits to it, like Amazon Prime does. We’re hoping to do that. We’re looking at tier levels. Frankly, we’re trying to make it more rewarding.”

Cobb plans to discuss ways to augment the loyalty program with Edwards.

“We have to make it more rewarding for some of our best customers,” Cobb says. “We’ve had a significant increase (42%) in the number of rewards members year-over-year, and in reward points redeemed.”

Sales from loyalty program members are 47% higher than from non-members, Cobb says.

“It’s what you hope should happen,” Cobb says. “People in the program are incentivized. We’ve had a bump in new customers and in lifetime value, and repeat sales rate has improved double digits.”

Throughout the company, Cobb says he is driving home the fact that there must be consistent messaging across all platforms (PC, tablet, mobile, social media, email).

Ebags.com has adopted Refer-A-Friend (members receive $10 in rewards points when they refer a friend, and the friend receives 15% off first purchase).

“We have to get alignment across the board within company,” Cobb explains. “The reality is that our rewards program is very important, especially as marketing costs get steeper and steeper.”

Since the relaunch of the company’s loyalty program, Cobb has noticed a change in customer behavior from a significant migration to mobile, specifically smartphones.

“We’ve been able to integrate into our email program how many reward points you have at any given time,” Cobb says. “We send over 1 million emails a few times a week. You couldn’t have done that a few years ago. It’s getting more and more competitive. You have to have a killer shopping experience. Once they come in, you have to wow them with a memorable customer experience.”

People are more value-oriented now than ever, Cobb notes.

“And they view the loyalty program as a huge representation of that value they so desperately seek on a daily basis,” Cobb says. “Combine that with free shipping and frequent discounts and customers are saying your make it so easy to shop with you. People want to get in, make their purchases, and get out with someone they trust. We really bend over backward to have that simplicity in place. We’ve always had an amazing customer experience. It’s about lifetime value. We need them to be loyal.” L

Cobb is proud of the fact that eBags.com has more than four million

members in its loyalty program now.

People want to get in, make their purchases, and get out with someone

they trust. We really bend over backward to have that simplicity in place.


Many marketers, intentionally or not, complicate matters that often lead to unfulfilling customer experiences.

Keeping things simple and easy to follow for customers usually always leads to memorable customer experiences.

Just ask Hertz.

Jeff Foland, Senior Executive Vice President and Chief Revenue Officer at The Hertz Corporation, participated in a compelling Q&A with Loyalty360 to discuss a variety of factors that drives the company’s customer experience, customer engagement, and customer loyalty efforts.

Simplicity was one of the main themes at our Loyalty Expo Conference in April. How does Hertz simplify its customer relationships to enhance brand loyalty?

We aim to provide customers with simplicity by making it easy to access the products and services they want while delivering basics right every single time. In our ongoing engagement with consumers we want to be smart and judicious with respect to what we are providing so it is always meaningful.

Simplicity at Hertz means convenience, speed and quality.

CX is a hugely important piece of the Hertz customer-centric focus, evidenced by your hires earlier this year. Can you talk about how and why CX has become a massive priority, and what your goals as a company are in this area?

Hertz operates the premier brands in the auto rental industry, and we are sharply focused on continuing to elevate them so that we deliver consistent, exceptional service that resonates with our customers. Retaining customers is important to the financial success of the company, and we plan to invest in the people, products and services required to ensure we provide the leading offering in the industry.

We are focused on consistently delivering the basics right every single time, while also introducing a variety of products and services to ‘surprise and delight’ customers along the way.

Who is the champion of Customer Experience at Hertz?

We make the customer experience a central component of our employee culture and everything we do here at Hertz. From the employees on the ground of our operations who are interacting face-to-face with our customers on a daily basis, to the teams behind the scenes working to ensure the operations, technology, financial systems and more run seamlessly from start to finish, the customer experience is always our chief focus.

How do you define CX?

Customer experience means a number of things to us. Customers choose brands based on the experience they desire, and our role is to design the products, services and programs that align with their definitions. It means a great product, excellent service interactions, convenience and operating on “your terms”, which can be an ever-changing concept from technology-enabled self-service to enhanced loyalty programs and more.

How do you measure the effectiveness / efficacy of the CX program?

We have a number of ways, some qualitative and some quantitative, including a post-rental survey, which measures customer satisfaction for a variety of aspects of the rental experience. We can use those results to drill down by location, car class, pick up and return, etc. Additionally, we assess inbound customer feedback through customer service channels and social media. We also look at external measures of customer satisfaction and industry influencers to gauge how we are doing.

BEST PRACTICES

at Hertz Means Great Customer ExperienceSimplicityJim Tierney Loyalty360

We make the customer experience a central component of our

employee culture and everything we do here at Hertz.


How does the “Voice of the Customer feedback” impact your customer experiences?

We continually monitor customer feedback and integrate consumer preferences into all facets of the rental process, from the reservation process to drop off.

We invite customers to take a post-rental survey to tell us about their rental experience. We use the feedback from these surveys to continuously improve our operations so that we are delivering exceptional service.

We also have an online community known as the Hertz Hub, where Gold Plus Rewards members can participate in discussions to provide their input on future products and services. Through Hertz Hub, we’re able to connect with customers in real-time and provide actionable insights so that the company can make better, timelier business decisions. Additionally, through this forum, we’re able to build loyalty in an authentic way by truly listening to the “voice of the customer”.

What keeps you up at night as a marketer? What is your biggest challenge?

I am confident in our current slate of initiatives in place, but I think the biggest challenge for any company is to consistently deliver on every aspect of what they’ve promised, especially when it’s a large, complex network with many touch points.

Has there been an “ah-ha” moment in this journey?

It’s a complex business with many moving parts and many interdependencies that come with many important revelations. This is an environment in which the company that best manages this complexity and delivers a consistent experience, is the company that wins.


Understand the specific end uses of the data that you are collecting otherwise you risk overloading the organization with data that is not important. However, that being said, being best-in-class can mean understanding everything about the consumer to make sure you leverage that data at every touch point.


Our business exists because of our customers, and it is our job to understand the specific needs of segments within that population, while delivering an unmatched customer experience in a financially responsible way. Additionally, we must be receptive to change and an evolving world of customer preferences. We plan to drive engagement and retention by invigorating our portfolio of brands to be truly world-class in the categories in which they each compete.

We are also focused on a philosophy of ‘surprise and delight’ at Hertz and are testing a variety of services to set us apart as the indisputable premier brand in the industry.

In a move toward customer-centricity, if you could give one piece of advice to a brand to help them increase loyalty and engagement with their customers, what would it be?

Give your customers a truly memorable, positive experience, while delivering the basics right every single time. At Hertz, we try to acknowledge our customers for their business with us throughout their journey so that they know we know them – we know their history and preferences with us. The deeper we get into understanding them while having that dialogue with them throughout is extremely important.

Additionally, while every customer is extremely important, we recognize that some customers provide enough economic value that we will go well above and beyond for those certain segments, which in turn drives loyalty, advocacy, and engagement. L

Consistently deliver on every aspect of what

you’ve promised.

The Hertz Hub is an online community where Gold Plus Rewards members can participate in discussions to provide their input on future products and services. Through Hertz Hub, we’re able to connect with customers in real-time and provide actionable insights so that the company can make better, timelier business decisions.


BEST PRACTICES

Q: With the advent of social, mobile and other emerging

technologies, how do brands effectively improve the

customer experience and engage their audiences in this

challenging and very dynamic marketing environment?

A: It’s important to keep technology in perspective. Progressive retailers are embracing each new platform not as an end, but as a means–as an opportunity to deliver their brand experience in new and ownable ways. At QVC, we’ve found that the key to sustained success is understanding how our brand can uniquely leverage each new technology to provide meaningful, differentiated experiences that underline what our brand stands for.

With video so central to our brand experience, it’s not surprising that QVC customers have rapidly adopted tablets –both web and app – as one of their favorite ways to shop with QVC. And as wearables become an extension of the mobile and tablet experience, we’ll be there: The introduction of the QVC app for Apple Watch in April 2015 demonstrates QVC’s commitment to investing in new technologies that deliver a fun, seamless and intuitive customer experience.

Q: Engaging experiences are the baseline for creating loyal

customers. How should brands create the culture by which

engaging experiences (even though they may be more

expensive to put in place and more difficult to measure)

become table stakes for brands?

A: The commitment to building loyalty must extend beyond the marketing department. Relationships need to be central to your enterprise’s culture. Everyone at QVC understands that if all we do is sell an item, we have failed. Our long-term success is dependent on earning our customer’s trust, so that she chooses to shop with us again. And that idea is reflected across every department: QVC strives to build lasting relationships, not only with our customers, but also with our business partners and vendor community. Likewise with our associates: QVC aspires to be more than just an employer–we want to be a career destination for the best and brightest talent.

How Does QVC Stay on Top of the Customer Loyalty/

Customer Experience

World?

QVC knows a little something about memorable customer experiences, acquiring and retaining customers, and driving significant brand loyalty.

In its 27-year history, QVC, the world’s leading video and ecommerce retailer, has shipped more than one billion packages. Its programming is distributed to about 300 million homes worldwide through operations in the U.S., Japan, Germany, the United Kingdom, Italy, and a joint venture in China.

Doug Rose, SVP of Programming and Marketing for QVC, engaged Loyalty360 in a riveting interview that covered various thought-provoking customer loyalty/customer experience questions.

Doug Rose | SVP of Programming and Marketing QVC


Q: Loyalty360 believes that loyalty is the most important

facet to consider in any marketing strategy. How can

companies create loyalty when so many technologies are

focused on mass acquisition of customers, which may or

not be aligned effectively with the product offering?

A: QVC shares your outlook on the importance of loyalty. As the pace of technological change accelerates, we’ve found it’s even more critical to understand what makes our brand unique, and to lean into it.

In recent years, QVC has undergone an extraordinary transformation, from a TV shopping company to the third largest multi-category retailer in mobile commerce and sixth largest multi-category ecommerce player. As the needs of our customers have evolved, so have our mobile, social, and ecommerce platforms. But rather than changing our brand, these new platforms have created new ways to introduce our brand to newcomers, and to extend and deepen relationships with our existing customers.

Amid the rapid transformation of our business, our recipe for cultivating loyalty has not changed: To deliver a shopping experience that fosters enduring relationships, rooted in trust.

Q: How do you define loyalty? How has this definition

changed for you and how do you anticipate it changing?

A: It may be easier to define loyalty by what it isn’t. True loyalty can’t be ‘bought’ with incentives like discounts and points. It can only be earned, by delivering a shopping and service experience worthy of repeating. Differentiated, quality products, presented in a pleasant and engaging way, with friendly, anticipatory service–those are the foundations of loyalty at any good retailer.

By any metric, QVC enjoys remarkable levels of loyalty with our customer community. In six markets around the world – U.S., Japan, Germany, UK, Italy, a joint venue in China, and beginning this summer, France – our brand inspires a level of trust and loyalty that is arguably unmatched among major global retailers. In 2014, more than 90% of our shipped sales went to repeat customers. And among customers who’ve made five purchases within the past year, the probability of a sixth purchase is 96%. Our customers tell us that to know QVC is to love QVC.

Q: Marketers are tasked to be more data-centric than

ever before, yet the challenge of creating actionable

insight from data is more challenging than before. What

is your advice for marketers?

A: QVC is uniquely positioned to leverage the power of big data. It’s always been central to our technology infrastructure, and has shaped our company culture. For over 20 years, we’ve read and reacted to customer response on a massive scale, in six-second increments, and that real-time connection to the customer has infused QVC with a unique sense of energy. It has taught us to think of our customer community as a dynamic, living organism. And it has also kept us humble: we learn very quickly when we’re doing something she likes, and when we’re, well, not so much.

As we continually advance our analytics capabilities, we continue to regard data in dynamic terms – as a conversation with our customers. We respect the fact that behind all the zeroes and ones are real human beings; that the preferences and interests of each customer are constantly changing; and that our analytics tools provide us enhanced capabilities to actively listen to what she is telling us...so that we can serve her experiences that are relevant to her.

Q: The “clarion call” for today’s marketing strategist is

engagement. How do you define engagement? What key

step can best drive audience engagement today?

A: Engagement is manifested in many ways, and measured with a thousand different metrics. But at its core, it’s all about the customer choosing to go deeper, to learn more, and to invest her most precious asset – her time – with your brand. At QVC, we’ve always believed that in order to earn a growing share of her shopping, we must offer her rewarding experiences that she chooses to fit into the margins of her busy day.

Over the years, we’ve developed a keen appreciation for the relationship between television viewership and web and phone sales. Of course, the proliferation of digital channels has given people new ways to engage with QVC on their terms, when, where, and how they choose. This, in turn, has given birth to a myriad of engagement metrics specific to each platform, e.g. likes, followers, visitors, sessions, open rates, bounce rates, click through rates, conversion, video views, posts, and so on. While each of these are helpful, it’s important not to miss the customer engagement ‘forest’ for the platform engagement ‘trees’.

Q: What emerging technology do you believe will have

the greatest impact in helping drive more effective

engagement and, therefore, better marketing outcomes?

A: For any multichannel retailer today, the key challenge/opportunity is to move beyond siloed views of platform engagement, to see the interdependencies between channels, and to understand how our customers choose to engage with our brand across those channels. That’s why we’re developing attribution tech-nologies that enable a holistic understanding of customer preferences, linking engagement on one platform with purchasing via another. It’s pretty exciting stuff with big implications for our marketing, programming, merchandising, and platform strategies.

While not a new technology per se, video is certainly becoming more important to the ecommerce experience, and some progressive retailers are beginning to learn how to leverage its power. As the undisputed global leader in live video commerce, QVC is at an advantage in extending that expertise to the digital space. We’re bringing the warmth and humanity of our TV programming to our digital platforms, using new forms of video to help customers understand how to use and fully enjoy a product, providing helpful answers to common questions, and leveraging community-generated content. L True loyalty can’t be ‘bought’ with

incentives like discounts and points.

“...rather than changing our brand, these new platforms have created new ways to introduce our brand to newcomers, and to extend and deepen relationships with our existing customers.”


Prsrt Std

US Postage Paid

America, USA

Permit # L360

Best Western Delivers Sophisticated Customer

Engagement by

James M. Loy Loyalty360

Revitalizing Direct Mail It is true that digital innovation has changed most of our lives for the better. As information travels faster, the world gets smaller. New relationships and business opportunities exist around every virtual corner, and entirely new industries are even rising to meet new demands. We are more connected than ever. But as this digital vortex swirls about endlessly, many are becoming exhausted by the ceaseless demands to adapt and update. Concerns over “digital fatigue” are becoming very real.

Digital fatigue can mean a variety of things, but for marketers, it often means unopened emails, unclicked links, and video ads that go largely ignored. Consumers are constantly propositioned by legions of online sales efforts, and this is making it very difficult for brands to cut through all the noise. As a result, some intrepid marketers are switching gears and actually implementing a few traditional tactics that, until very recently, would have seemed almost laughably antediluvian.

And some, like Best Western International, are doing it exceedingly well.

If the adage holds true, then everything old is new again, which appears to be the case for this award-winning hotel chain’s approach to direct mailing. By leveraging new technology to give an unfashionable marketing mechanism a modern spin, Best Western has made some impressive strides in customer engagement.

“Is direct mailing dead?” asked Tammy Lucas, Managing Director of Marketing & Advertising at Best Western, during an illuminating session at the 8th annual Loyalty Expo held April 27-29 in Orlando, Florida. “If you would have asked any marketer a few years ago, many of us would have given the same response when we thought travel agents and call centers were going away. Actually, it appears that the world is cyclical, and we have found that direct mail is very much still alive and an effective way to reach our customer.”

This was the focus of a packed session titled, “Sophisticated Direct Mail Delivers Loyal Guests for Best Western,” which was hosted by Lucas and Debora Haskel, VP of Marketing at IWCO. The presentation detailed how Best Western and IWCO successfully engage millions of individual Best Western Rewards members, from Millennials to Baby Boomers, through a highly sophisticated form of direct marketing.

BEST PRACTICES


Prsrt Std

US Postage Paid

America, USA

Permit # L360

BRIDGING THE GENERATIONAL DIVIDEIn light of today’s fast-paced and digitized world, the use of direct mail as a key strategy may seem counter-intuitive, especially considering the tech savvy habits of younger adults ostensibly nurtured in an online incubator. When Lucas explains the logic behind Best Western’s approach, however, it makes perfect sense.

“The reality is that younger generations grew up with cell phones and they are really tied into email, text, and everything else social,” Lucas said. “But unlike those of us that used to go to our mail boxes, they never had to toss the junk mail. The opposite is true now. Many are actually excited to get mail with their name on it, because it cuts through the clutter of what they are used to looking at on their computer screen. And, we are finding the very same thing with our Best Western Rewards members. Our members are actually finding that receiving direct mail is a refreshing change.”

Best Western discovered that a staggering amount (92%) of both Millennials and Generation X’ers were influenced by direct mail. What’s more, 90% said that they actually prefer to receive mail rather than email marketing messages. The reason being that these younger adults, by and large, are so electronically plugged in, that anything breaking them away from that cycle catches their attention.

Beyond these demographics, there are, of course, very large numbers of older Americans that still rely on traditional mail as their primary means of receiving commercial information. Research estimates between 50%-60% of all Best Western customers continue to avoid email completely. So direct mail is key in reaching this segment regarding special offers, program updates, and Best Western news.

IN THE MIDST OF A MAILING RENAISSANCEResearch has also shown that most consumers still enjoy receiving mail. While most banner, radio, and TV ads go largely ignored, many people open mail, even junk mail, with some degree of anticipation.

According to the annual Household Diary Study conducted by the U.S. Postal Service, more households read advertising mail now than they did 25 years ago, which makes it one of the most practical marketing channels available. It is also the only direct marketing channel where permission to send is not required. And 79% of consumers will immediately act on direct mail as opposed to only 45% who open an email immediately.

“One of the reasons for this, the study found, is because there is actually less mail now and the volume of advertising mail has gone down,” said Haskel. “Now when there is something in the mailbox it is more interesting. It is not seven credit card offers and four mortgage offers. What’s there is more interesting because it is more relevant and more personal. It is something just for them, and they will spend time looking at it.”

Best Western takes great care to personally engage customers through this channel. And it is a process that becomes even more impressive when considering the reach of its highly successful loyalty program.

Recently honored with four Loyalty360 Awards for Best Creative Campaign, Best Use of Customer Insights in Loyalty Marketing, Best Technology & Trends in Loyalty Marketing, and the North American 360-Degree Platinum award for best overall program, Best Western Rewards is considered to be one of the industry’s brightest stars. Its reputation is well deserved, and the same the high level of customer service and attention to detail that makes Best Western Rewards so successful also goes into the brand’s efforts to personally engage these same 24 million members through direct mail.

THE TOUCH OF HIGH-TECH PERSONALIZATIONThis tremendous task requires an intense understanding of how to combine marketing strategies and customer data with digital print technology to provide customized offers and images based on the preferences of each customer. Through several well-crafted

“...more households read advertising mail now than they did 25 years ago...”

79% of consumers will immediately act on direct mail as opposed to only 45% who open an email immediately

79%45%@

Continued on page 50


designs that include new member welcome kits, elite qualification kits, and targeted direct mail promotions, Best Western carefully refines the look and feel of each message and emphasizes real human connections.

“We wanted to personalize each message to really humanize the kits so they would come alive.” said Lucas. “We also brought more visuals, names, and pictures of us into our kits because it wasn’t tangible if it didn’t have that human connection. We found that when we sent out materials that were actually from people at Best Western, it tied into our philosophy of customer contact and caring. And the technology that allows us to do that is amazing.”

This technology has certainly made impressive advancements. In the past, technological limitations severely restricted the amount of dynamic flux that could exist between pieces of direct mail content. The copy could, perhaps, change slightly but images, colors, and organizational templates all had to remain fairly static.

Now direct mail can be much more dynamic. It can feature a variety of multidimensional layers including personalized content and offers, design flexibility, and even integrated mobile QR codes that bring it to life through augmented reality. Every word, every image, and every color can also vary between pieces, and this has begun to allow the true one-to-one customer connections that have been a marketing Holy Grail for decades.

What’s more, this 1-to-1 personalization is not limited by any number of customers or restricted by industry. It appears to be immensely successful across the board. Cable companies, financial services, insurance, travel and entertainment have all seen up to triple digit lifts in customer responses by matching specific offers to specific needs.

DATA DEFINES THE NARRATIVESThe real trick, or “art” of this, as Haskel describes it, lies in actually being able to identify the unarticulated needs of customers, and to, perhaps, know what the customers need even before they know it themselves.

And that, of course, is where it all comes back to the data. Best Western understands how its data really drives engagement, and how it makes direct mail not only more efficient, but also more effective.

“One of the most important things we’ve learned is that it is different for everyone, and being able to segment and target based on that information is critically important,” Haskel said. “So, for example, someone may be really interested in program benefits. The data will identify that person and be able to key into that person when segmenting that portion of the mailing.”

This also applies to calls-to-action and other various factors that can yield real results. Because different things motivate different people, some pieces of mail will feature varying degrees of urgency, limited time offers, special prices, potential benefits, testimonials, and more. It all depends on the specificity of each profile. Understanding which segments respond to different calls-to-action will ultimately create narratives that resonate better with customers.

“One of the things that is so effective about direct mailing is that it can tell a story,” said Haskel. “It’s evolved so we are no longer doing four-page letters that look like it came off somebody’s typewriter. It is telling a story, and that’s how data is engaging members and moving them to action because it is being used more effectively.”

It’s true. Everyone loves a great story, and Best Western can tell one better than most. L

“Now direct mail can be much more dynamic. It can feature a variety of multidimensional layers including personalized content and offers,

design flexibility, and even integrated mobile QR codes that bring it to life

through augmented reality.”

Direct Mail continued...

BEST PRACTICES


$BEST PRACTICES

Last fall, hackers hijacked Hilton’s HHonors member accounts, stealing their points and purchasing additional ones through registered credit cards. In January, thousands of American Airlines accounts were targeted by criminals, while Starbucks has recently struggled with multiple customer complaints about gift card fraud and the draining of customer loyalty card balances through the company’s popular mobile app.

Loyalty fraud — or taking advantage of loopholes, hacking or gaming the system for financial gain — has always been present to some extent in the industry. But as loyalty currencies have begun to be seen as increasingly valuable and loyalty programs have become more ubiquitous (the 2015 Colloquy Customer Loyalty Census found that American households are active in an average of a dozen different programs and members of more than twice that), the industry has become more vulnerable to fraudsters. Gartner security analyst Avivah Litan said recently that credit card hackers are actually finding loyalty programs easier to hack than financial institutions, so they are moving away from banks towards e-commerce companies with rewards programs, points and pre-paid cards. And with $48 billion in outstanding value across all US rewards and loyalty programs, according to Colloquy, it’s clear that the potential risk for theft is high and there is a great deal at stake.

The High Cost of

Mike McDonnell Connexions Loyalty

Loyalty fraud is on the rise — fighting it is a must to protect customers as well as your own bottom line. Here is the lowdown on this troubling trend and tips on how to keep fraudsters at bay.

Theft Right Under Your Nose:

LoyaltyFraud


To protect both customers and the bottom line, businesses need to get serious about preventing and combatting loyalty fraud. First, it’s essential to understand the three different categories of fraud that brands are battling:

As described above, by far the biggest growth in loyalty fraud has been from the work of organized criminals and hackers, who know how to exploit security holes and weak customer passwords in order to snatch miles and points. Their goal is to use program currency to purchase consumer goods or hotel stays, or credit cards registered with the account to purchase even more points and miles.

While less common than outside fraudsters, employees and other insiders (such as friends and family members) often have access to loyalty programs’ systems or access to someone who does. That means dishonest people may take advantage of the opportunity to scam or game the program – for example, employees with the right technical knowledge might be able to reallocate frequent flyer miles. In the past, paper-based programs were particularly prey to this kind of internal fraud: Subway’s Sub Club, for instance, used stamp cards – employees were able to steal rolls of stamps and distribute them.

Even loyalty program members themselves can game the system and commit fraud. For example, there have been instances of “double dipping” between multiple frequent flyer programs — such as when a customer is on the phone with a representative but also logged into the website to attempt to redeem miles at the exact same time. Customers have also been known to sell miles or points to “mileage brokers,” which is against most program rules.

As the Group Vice President of Product for Connexions Loyalty, Mike McDonnell is responsible for leading and managing the product organization, including product management, development and marketing.

To stay ahead of potential loyalty rewards fraud, these are three tips businesses can implement right now:

1. To fight the hackers: Monitor earning and redemption.

In order to identify fraudulent activity as quickly as possible, companies can institute business rules, which use technology algorithms to recognize patterns that don’t fit the bill. For example, rules can be created and evaluated to score redemption behavior such as looking at historical patterns, seasonality, type of reward, velocity, value and time stamps. Fraud protection technologies can also identify suspicious events — within keystroke patterns, email address scoring, device type and ID or IP addresses — as well as link those events and trigger alerts.

2. To deal with insiders: Monitor employee risk.

Businesses should develop monitoring and risk-scoring procedures for employees, such as exception reporting that highlights unusual activity; or the creation of user-defined roles that limit or restrict access. For employees that have direct access to loyalty currencies, companies can time-stamp and identify that an employee was logged in at a certain time and had permission to access certain areas. In addition, employees should be educated and reeducated about company policies and procedures regarding loyalty fraud — such as legal ramifications.

3. To handle customers: Go further with identity verification.

Identity verification is key when it comes to handling both customer-based fraud as well as protecting customers from hacker activity. A multi-factor authentication process should be used that requires, for example, identification of a code image in addition to inputting a password and a temporary key. However, companies have to strike a sensitive balance between protecting customers and making them feel like it’s too difficult to access their account.

Don’t Put Your Loyalty Program at Risk Loyalty fraud could be happening right under your nose right now. If you don’t deal with these security issues, your customers — as well as your entire program — may be at risk. In an age of high-profile breaches and data insecurity, loyalty fraud is no longer something that can be ignored or only half-addressed. A breach could mean real potential financial impact, not to mention a breach in your customer’s trust.

It’s time to take a stand to stamp out loyalty fraud. Companies can take advantage of the latest strategies and technologies to prevent, disrupt and avoid potential fraud problems and pitfalls. Putting the right plan in place will help you discover fraud before it happens, while making sure not to tip off fraudsters about your efforts. L

1.

2.

3.

Hackers

Insiders

Customers


BEST PRACTICES

While building mobile into your VoC strategy is not a five-minute job, there are some tips and tricks that will help you to avoid common pitfalls and ensure you don’t turn a great opportunity into a marketing blunder. People consider their mobiles to be very personal so you need to tread a little carefully. Here, we look at some of the key elements to consider as you add mobile to your VoC program.

Select the Right Platform

Mobile isn’t a single channel, but is a set of capabilities that is all delivered on a mobile device, so you need to think about what is right for your business. If you need to catch people who are opening your email on a mobile device, ensure your surveys will automatically re-design themselves for the device in question (known as responsive design). If you’re running an ongoing program with a group of key customers, a custom feedback app will allow them to send photos, videos and audio clips to create a diary of activity, or share experiences directly. In fact, a combination of both, to capture the views of different categories of customers is also something to consider.

If you’ve already got a well-used customer app, use it to launch and embed mobile-enabled web surveys directly. This will provide a smooth experience, and take the opportunity to create a dialog with customers who’ve already chosen to interact with your brand on mobile. The advantage of this technique is that you’ve got an engaged customer base to communicate with, which may provide more flexibility when it comes to how many questions you can ask and the range of topics you can cover. This will also allow GPS and image capture, providing greater richness to your data as you

understand exactly the situation your customers are referring to.

Finally, while the web-rendered survey vs. app debate rages, SMS can be something of a forgotten stepchild of the discussion. However, it can be an effective and immediate method to access customers. You can ask short surveys through a simple Q&A approach, or use SMS to invite customers to a web survey. And with short SMS codes, you can encourage people to opt in and opt out, so you’re not wholly reliant on having their details. This is a great way to access the thoughts of non-customers, for example, people who failed to make a purchase in your store and who might have some good feedback about exactly what happened.

Remember that Voice of the Customer is a Customer Experience in Itself

If you’re going to engage your customers with your VoC program it’s critical that you don’t undermine a good experience with a poorly thought-out feedback process, so don’t just turn your web survey into a mobile survey and assume it’ll work. It won’t. First, you need to keep it short – just ask a few questions (3-5) that you will be able to take action on, and use the information you gather to refine your program. If your survey is too long to start with, track where people are dropping out and use that data to enhance your survey. A common pitfall in VoC programs, regardless of channel, is to develop excessively long surveys. Mobile is a real punisher of this, so be very specific about why you’re asking each question. Remember you can ask further questions at another time, so it’s not a now-or-never situation.

Voice of the Customer

Best Practices in

Miguel Ramos Confirmit

The case has been made for engaging your customers through mobile – apps, mobile-enabled websites and social media are all great ways to keep your customers involved with your brand. The case is also clear for extending that engagement to the Voice of the Customer. If customers have a feedback device in their pockets at all times, then failing to make the most of that opportunity is a huge waste. This is particularly true with the advent of Beacon and location-based triggering technologies that mean that you can ask questions immediately after a customer leaves your store or is in a key geographical location. While the term “in-the-moment” feedback has been around for a while – it’s more pertinent than ever as technology continues to evolve.

Mobile


One way to help keep your survey short is to avoid asking questions to which you already know the answers. When a customer receives a survey asking what they bought or where they bought it, it not only wastes their time, but proves you just weren’t paying attention in the first place. With mobile feedback, you have only a handful of questions before customers lose interest – don’t waste them when you can access the information through your CRM system.

Keep Evolving Your Program

Customers providing feedback through the mobile channel provide you with a lot more data than purely their survey responses. Ensure you’re able to log that their preferred channel is mobile (where app or web-rendered), and if you’re able to, the device they use. Any VoC program should aim to close the loop with their customers, and it’s important to do so through the channel that suits the customer.

You can use this insight to help you understand the importance of mobile across your business as well. If, for example, 40% of your customers have done a web survey on a mobile device, what else should you be providing via the mobile channel? Customer service, marketing communications, support channels? For example, send an SMS with a reference number to demonstrate that you’ve taken action based on their feedback.

If you are able to capture information about how people interact with your VoC program, you can use that data to refine and improve the way you communicate with customers. For example, if people open the email invitation at home, but complete it later in the day on mobile, you can plan to send surveys to different people at different times to maximize response rates. People use their mobiles to fill “cracks in the day” – when they’re waiting for a train, or in a line, so make use of those opportunities.

Remember that it’s OK to ask Twice

Don’t assume that because you’ve not had a response, customers have nothing to say about their experience. Admittedly, no one wants to be stalked by a survey, and mobile phones are a particularly personal item that people don’t like to have invaded, but if a customer hasn’t responded to your feedback request, it’s fine to follow up once.

Again, make use of those “cracks in the day” and re-send your invitation at a different time when you’ve got a better chance of catching people when it suits them. Remember too, to thank people for their input and let them know how their feedback has enabled you to make decisions that will deliver a better customer experience.

In summary, bear in mind that mobile is not “just another feedback channel”. It has its own very specific nuances which you need to understand and

account for. However, it’s well worth taking the time to do so properly. The ability to capture the Voice of

the Customer in a way that suits your audience, and at a time when the experience of dealing with your business

is still fresh in their minds can deliver a level of insight that can really drive your business forward. L

With more than 15 years experience in mobile technologies, Miguel leads Confirmit’s Mobile practice in the EMEA and Asia Pacific regions, developing mobile solutions for both VoC and Market Research.

Any VoC program should aim to close the loop with their customers, and it’s important to do so through

the channel that suits the customer.


LoyaltyreadsLOYALTY FORUM: LOYALTY READS

The Brand Flip: Why Customers Now Run Companies and How to Profit from ItMarty NeumeierNew Riders; 1 edition | August 9, 2015

Best-selling brand expert Marty Neumeier shows you how to make the leap from a company-driven past to the consumer-driven future. You’ll learn how to flip your brand from offering products to offering meaning, from value protection to value creation, from cost-based pricing to relationship pricing, from market segments to brand tribes, and from customer satisfaction to customer empowerment.

In the 13 years since Neumeier wrote The Brand Gap, the influence of social media has proven his core theory: “A brand isn’t what you say it is–it’s what they say it is.” People are no longer consumers or market segments or tiny

blips in big data. They don’t buy brands. They join brands. They want a vote in what gets produced and how it gets delivered. They’re willing to roll up their sleeves and help out–not only by promoting the brand to their friends, but by contributing content, volunteering ideas, and even selling products or services.

At the center of the book is the Brand Commitment Matrix, a simple tool for organizing the six primary components of a brand.

Your brand community is your tribe. How will you lead it?

Measuring Customer Experience: How to Develop and Execute the Most Profitable Customer Experience StrategiesPhilipp KlausPalgrave Macmillan | January 1, 2015

“We need to deliver a great customer experience.” How often have you heard these or similar statements? And how often has a manager given a clear and meaningful definition of what a great customer experience (CX) actually is, or even proposed an idea about how to accurately measure it? In many organizations CX has become a meaningless buzzword, a vague and ephemeral ‘theory of everything’ that fails to deliver on its promise to drive improved performance.

So why is CX so hard to pin down? It focuses on customers’ value-in-use and so blurs traditional distinctions between products and services, and it exists in emotional and

instinctive responses rather than rational and cognitive choices. But, as Professor Phil Klaus argues, although it may be hard, it’s not impossible. And it is essential. If you can’t measure it you can’t manage it – but how can you hope to measure it if you can’t even define it?

Blending the findings of rigorous scientific research from a multitude of global studies with practical tools and techniques developed and tested in the real-world, Measuring Customer Experience shows you how to really focus in on what parts of the customer experience drive behavior and, ultimately, business profits.

Millennials with Kids: Marketing to This Powerful and Surprisingly Different Generation of ParentsJeff Fromm and Marissa VidlerAMACOM | August 19, 2015

While everyone was bemoaning their alleged laziness and self-absorption, the Millennial generation quietly grew up. Pragmatic, diverse, and digitally native, this massive cohort of 80 million are now entering their prime consumer years, having children of their own, and shifting priorities as they move solidly into adulthood.

Millennials with Kids changes how we think about this new generation of parents and uncovers profound insights for marketers and brand strategists seeking to earn their loyalty. Building on the highly acclaimed Marketing to Millennials, this book captures data from a new large-scale

generational study and reveals how to: Enlist Millennial parents as co-creators of brands and products; promote purpose beyond the bottom line; cultivate shareability; democratize customer experience; integrate technology; develop content-driven campaigns that speak to Millennials.

A gold mine of demographic profiles, interviews, and examples of brand successes and failures, this book helps marketers rethink the typical American household - and connect with these critical consumers in the complex participation economy.

57

The Science of Why: Decoding Human Motivation and Transforming Marketing StrategyDavid ForbesPalgrave Macmillan | June 16, 2015

Why do consumers do what they do? What’s really behind the choices they make? What moves them, what delights them, what truly fulfills them? And how can I reach them in their heart of hearts?

Questions like these have probably vexed marketers since the days when shells and spears were the most popular Fast Moving Consumer Goods. The Science of Why will

answer those challenges and change your vision of consumer marketing in the process.

In this book Dr. Forbes brings together up-to-the-minute details of the new marketplace, advances in consumer research methods, and new information on uncovering, understanding, and targeting the emotional

motivations that drive the actions of every consumer, all of the time. He has created a simple, easy to understand and easy to apply model of human motivation—a kind of ‘periodic table’ of motives that identifies, organizes, and explains the nine core motivations. This matrix contains all we need to know about why consumers do the things they do the way they do them.

Dr. Forbes enhances his material with fascinating examples, anecdotes and illustrations, and supplements his narrative with real world marketing case studies. Sharing the insight, humor, and understanding he’s gained from over 30 years as a psychologist, researcher, and marketing consultant to CEOs worldwide, he will deliver game-changing insights and tactics to help you connect the dots from consumer motivations to business bottom lines.

Loyalty Management™ • SECOND QUARTER 2015

Decoding the New Consumer Mind: How and Why We Shop and BuyKit YarrowJossey-Bass; 1 edition | March 31, 2014

Take a glimpse into the mind of the modern consumer. A decade of swift and stunning change has profoundly affected the psychology of how, when, and why we shop and buy. In Decoding the New Consumer Mind, award-winning consumer psychologist, Kit Yarrow, shares surprising insights about the new motivations and behaviors of shoppers, taking marketers where they need to be today: into the deeply psychological and often unconscious relationships that

people have with products, retailers, marketing communications, and brands. Drawing on hundreds of consumer interviews and shop-alongs, Yarrow reveals the trends that define our transformed

behavior. For example, when we shop we show greater emotionality, hunting for more intense experiences and seeking relief and distraction online. A profound sense of isolation and individualism shapes the way we express ourselves and connect with brands and retailers. Neurological research even suggests that our brains are rewired, altering what we crave, how we think, and where our attention goes. Decoding the New Consumer Mind provides marketers with practical ways to tap into this new consumer psychology, and Yarrow shows how to combine technology and innovation to enhance brand image; win love and loyalty through authenticity and integrity; put the consumer’s needs and preferences front and center; and deliver the most emotionally intense, yet uncomplicated, experience possible. Armed with Yarrow’s strategies, marketers will be able to connect more effectively with consumers driving profit and success across the organization.

We live in a behavior economy, an environment in which people no longer engage with companies just by purchasing things, but they seek engagement with services that allow them to behave, to leave a mark, and to participate in the community of others. The economic model promoted by the behavior economy is a model where behavior is the only goal of our actions, and where intrinsic motivation is the key to participation, engagement, and the satisfaction of multiple dimensions of value. Value Creation and the Internet of Things describes value delivery and consumption, and the mechanisms by which new value is captured and created, in enterprises dedicated to competing and

prospering in this new environment. This book is significant in the context of the Internet of Things becoming mainstream, forcing organizations to re-examine their value creation methodologies in light of new consumer behavior and expectations. The Internet of Things will reframe the existence of the ones enriched by it. It will do so not because it can, but because our motivation will demand it. This is a book about reframing reality for new and incumbent organizations. The reality to reframe is not an imaginary one, but the immediate reality in which one operates: the behavior economy.

Value Creation and the Internet of Things: How the Behavior Economy Will Shape the 4th Industrial RevolutionAlexander ManuGower Pub Co; III edition | August 28, 2015

“Game-changing Insights and Tactics”


2 01 5

November 9-11 | Hilton Dallas Lincoln Centre | Dallas, Texas

Artemio Garza Chief Marketing Officer

Meineke

Diana Helfinstine VP of Customer Experience

Essilor

Brad Marg COO

Clutch

Al Perkinson VP of Marketing

Costa Sunglasses

Today’s “always on” connected consumer faces an array of digital distractions from price comparisons to product reviews to competitor promotions. Given this, it’s increasingly difficult for brands to break through the “noise” and stay top of mind on the consumer’s path to purchase.

In an industry saturated with immense competition and commoditized services, Meineke has become a household name by understanding their customers and deploying personalized communications. This session will review how Meineke utilizes Consumer Management technology to deliver personalized engagements and enhanced experiences focused on motivating desired customer behaviors.

Attendees will gain insight on multiple advantages of Consumer Management, including:

Customer Intelligence: How to achieve deep, real-time, cross-channel understanding and segmentation of customers based on their actions, behaviors and tendencies.

Targeted Engagement: How to deploy personalized, omnichannel campaigns to motivate customers and drive behaviors across online and off-line channels.

Memorable Experiences: How to shape and deliver unique interactions to build customers’ relationships and affinity with the brand.

What does it mean for a brand to be part of a community? Community-centric companies have shown to have a more loyal customer base and stronger sales patterns, even during challenging economic times. But how does a brand adopt a true community mindset across its organization? How can community become part of a company’s culture to build meaningful relationships with its customers?

Al Perkinson, VP of Marketing for Costa Sunglasses and Diana Helfinstine, Vice President of Customer Experience for Essilor will share their insights on how they have developed superior customer experience strategies within their organizations.

Costa Sunglasses, one of the fastest growing sport performance sunglasses brands in the world, will share how they have successfully implemented an integrated community program as part of the company’s growth strategy. Targeting anglers and outdoors enthusiasts, Costa has kept a laser-beam focus on its community strategy, and has seen sales increase more than 20 percent each year for the past 10 years.

By using Costa’s success story and learning lessons, Al Perkinson will give specific examples of how brands can too implement their own community-based growth strategy.

Additionally, Diana Helfinstine will share her experience with beginning Essilor’s CX Journey in developing and implementing a customer experience strategy, with answers to these key questions:

• Why do we need a Customer Experience Program?

• How can I gain C-Suite buy-in?

• What are the steps to a successful Customer Experience Program?

• What does success look like?

This business case study provides a blueprint for launching a CX program, as well as lessons learned along the way, that can make a big difference in your journey.

Delivering High Performance, Personalized Brand Experiences to Customers

The Lens of CX – An Optical Perspective on Building Communities and Customer Experience from the Ground Floor


Session Previews | 2015

Luc Garneau VP of Strategic Consulting

DataCandy

Dennis Maloney Chief Digital Officer Domino’s Pizza

Barbara Williams VP, Performance Analysis

Sonic Drive-in

Jennifer Wainwright Director of Digital & CRM

Bridgestone

Jim Sturm CEO & President

Brierley+Partners

Logan Flatt SVP, Strategic Planning

Ansira

Customer engagement is a direct reflection of the cus-tomer experience, right? After all, creating a unique expe-rience will safeguard customers from disconnecting with your brand. Then again, your competitor is wooing customers with shiny, new loyalty benefits, cool offers and exciting member rewards. Which is the better strategy?

Because loyalty is not one size fits all, cracking the ‘experience vs engagement’ code requires the ability to capture, segment and analyze data from loyalty members. Luc Garneau, VP of Strategic Consulting for DataCandy, will discuss the rules of effective engagement and examine the art of retaining today’s highly distracted consumer. Luc will outline how to put your loyalty data to work in a way that will increase active engagement and drive positive business results.

The discussion will also reveal some of the best kept industry secrets for driving a positive customer experience. Whether it’s online or at your brick and mortar store,

discover how to cut through the noise and add value to the brand experience by incorporating meaningful touches and relevant benefits.

The following points will also be discussed during the presentation:

• Keeping customers engaged across multiple channels

• Designing authentic and meaningful messages to better engage with loyalty members

• How to identify added value benefits that are relevant to customers

• Overcoming the pitfalls preventing active customer engagement

Domino’s U.S. retail sales have grown 33% in a pizza industry that has seen little to no growth for over five years. Not by coincidence, digital orders at Domino’s hit 50% of total sales at the end of 2014, helping make Domino’s a digital success story. During this presentation, join Domino’s Chief Digital Officer Dennis Maloney and Ansira’s SVP of Strategic Planning Logan Flatt to learn how Domino’s investments in digital technology, customer intelligence, and the complete customer experience continue to help it grow and thrive in the hyper-competitive U.S. QSR pizza market.

This engaging panel will explore how innovative and forward-thinking companies are leading their industries with advanced strategies and technologies that drive rewarding and enhanced customer experiences. Come learn how these iconic and leading brands are leveraging loyalty and sophisticated CRM to drive unique and personalized customer relationships.

Customer Experience vs. Customer Engagement: How to Crack the Code

How Domino’s Uses Digital To Take a Big Slice Out of the U.S. Pizza Industry

Tots & Tires - How Innovation is Driving the Next Best Experience in Customer Engagement


2 01 5

Chris Politakis Dir of Marketing & Communications

Goodwill

Liam O’Connor Principal, Customer Acquisition Practice

Lenati

Paul Conder Principal, Customer Experience Practice

Lenati

Many major retailers have seen sales stagnate – or even plummet – as the market and customer base evolve. This is the story of how Goodwill has taken action on all fronts – centering every aspect of their company around their highest potential customers. In this richly illustrated and interactive session, you will learn how Goodwill leveraged deep CX insights to transform their entire business – from service, to digital marketing, to store design and real estate strategy. We will pull back the curtain on how a national brand can shift gears in less than six months – going from customer insights to strategy to design to roll out in just two shopping seasons.

AARP, a non-profit organization that helps people 50 and older improve the quality of their lives, faced an important challenge: how to motivate their nearly 40 million members to actively engage with aarp.org to learn about the many ways they can ensure that they and their families live the best life they can. In this rich case study, you will learn the challenges AARP faced planning, launching, and managing their award-winning Rewards for Good loyalty program and the important lessons learned. You will also get key insights into how they measure success and their impressive results.

CX Retail Revolution: How Goodwill Transformed Retail in Six Months

The Road to an Engaged and Active Community through Personalized and Rewarding Experiences

Nataki Edwards VP of Digital Strategy & Operations

AARP

Tim Benner Sr. Dir of Marketing Science and

Strategic Analytics Samsung Electronics America

Ray Lansigan Associate Partner

Rosetta Consulting

The relationship between a brand and its customers isn’t what it used to be. Today’s always-on shoppers are constantly toggling between platforms, screens and devices, giving marketers rich, complex data and exposing more about its core customers’ shopping habits than ever before. Yet despite having deep insight into the customer journey, most brands are scrambling to break down the silos and are hard-pressed to find the definitive recipe for producing valuable, omni-channel engagement. In this session, Samsung Electronics America’s Senior Director of Marketing Science and Strategic Analytics Tim Benner and Rosetta Consulting’s Ray Lansigan will discuss why brands need to understand their customers to deliver tailored, real-time interactions; explore how to predictively engage customers on a 1:1 level by

harnessing customer data and innovative technology; and provide first-hand insight on how to execute highly personalized, omni-channel engagement programs.

Key Takeaways:

• How to tap complex data to expose more about core customers’ shopping habits

• How to predictively engage customers on a 1:1 level by harnessing this data

• How to execute personalized, omni-channel engagement programs that drive business impact

How Samsung Activates Customer Data to Deliver Omni-Channel Engagement That Drives Business Results



Join rDialogue founder and CEO Phil Rubin along with EVP Meg Culp for a highly informative and compelling workshop on improving customer relationships and your bottom line via integrated loyalty and customer experience strategies.

With nearly 40 years combined experience in loyalty and CRM, Phil and Meg will walk through best practices from loyalty leaders from strategy and concept design to execution and measurement, focusing on:

• Essential strategy considerations to show how published loyalty programs and more relevant customer experiences go hand-in-hand

• Program and customer experience design requirements that lead to viable and operationally successful tactical executions

• Building the business case to gain support from your CFO (and ultimately, your CEO)

• Measuring the impact from the customer’s perspective and its corresponding impact on the business

Participants will leave the session with a framework for leading your organization to successful delivery of an on-brand, dynamic and more profitable customer experience.

When the marketing team at Children’s Hospitals and Clinics of Minnesota realized its internal stakeholders were each trying to drive messaging and branding, Jen Swanson, Director of Digital Marketing at Children’s Hospitals and Clinics of Minnesota, turned to the brand’s external constituents for advice. In partnership with Ciceron, a digital marketing agency in Minneapolis, teams developed a customer journey map, which opened the doors to a customer-centric process that has dramatically affected the hospital’s marketing.

By interviewing patients, families, volunteers and other external constituents and mapping their needs and desires against Children’s marketing approach, Ciceron was able to help Children’s build brand advocacy and obtain ridiculously great results through meaningful customer experiences that stirred people to passionately advocate for their brand.

This customer-centric approach has not only required their internal teams to look at marketing differently, but has also helped advance their mission, vision and values, and helped them deliver exceptional family-centered care.

During a recent fundraising campaign, Ciceron was able to help Children’s not only surpass its fundraising goal, but also generate elevated brand awareness including 728 total social mentions, 7,502,155 total potential impressions and 3,962,918 potential reach surrounding this campaign. Ciceron also engaged influential advocates to post about the campaign, gaining 44% higher engagement.

Key Takeaways:

• Discover the best ways to uncover valuable information through different research methodologies

• Learn the importance of educating internal teams, including executives, for a successful project

• See how in-depth research drives marketing decisions

• Discuss ways to get buy-in from teams across the organization

Integrating Customer Experience and Loyalty: Best Practices in Design, Delivery and Measurement

BRANDisruption: Let Go of the Myth that Your Brand Belongs to You and Achieve Ridiculously Great Results

Meg Culp EVP, Strategy rDialogue

Jen Swanson Director of Digital Marketing Children’s Hospitals and

Clinics of Minnesota

Phil Rubin CEO

rDialogue

Andrew Eklund Founder & CEO

Ciceron


2 01 5

In order to provide the level of experience and engagement that customers demand, understanding them better is foundational to success. Companies rely on behavioral data, third party sources, segmentation and other tactics in an attempt to accomplish this goal, but the key to true customer knowledge is found in the strategic collection, interpretation and use of customer preferences. Increased legal scrutiny makes collecting and correctly acting on communication preferences a growing corporate concern.

PossibleNOW, in partnership with Intuit, will share best practices, challenges and tangible results deploying preference collection can have for your organization.

Attendee Takeaways:

• Best practices for collecting preferences

• How to use preferences to drive customer experience

• The importance of understanding preferences to increase engagement

• Need for customer consent as legal environment becomes more restrictive and litigious (recent FCC ruling on TCPA covering phone calls and text messages)

The Power of Preference

Brian Hood Director of Digital Marketing

Intuit

Eric Holtzclaw Chief Strategist PossibleNOW

Take away the labels. Take away the computers, the tech, the data, and you still have one thing: a person. People are at the heart of every data point gathered and every dollar spent.

Inquisium’s feedback management platform gets you closer to the unique customers behind your survey data, so you can create the experiences they have been looking for. When you understand your customers, everything changes: the way you market, the services you provide, the products you create, the way you engage, and even the metrics that determine success.

Join us for our 20-minute showcase session and we’ll discuss:

• Building dynamic and engaging feedback programs to enhance the customer experience

• Implementing feedback programs that can change the way your organization works

• Designing sleek and interactive reports to showcase your data in a visually appealing and meaningful way to derive actionable insights

Delivering Solid Customer Experiences Through Better Feedback

Vinay Khetarpal Sales Executive

Inquisium

Engagement & Experience Expo 2015 EXHIBITORS

cogensiaA CAC|GROUP Company



Liam O’Connor Principal, Customer Acquisition Practice

Lenati

Paul Conder Principal, Customer Experience Practice

Lenati

Join Lenati principals Liam O’Connor and Paul Conder for a thought-provoking, interactive workshop, explor-ing ways to connect CX strategy with actionable tactics to improve customer experience.

Building a solid CX strategy is critical for any customer-facing brand, but it’s useless without strong tactical implementation at the level where the brand meets the customer. This richly-illustrated session will go deep into methods to validate, implement and improve CX at the customer’s level. Drawing on examples from our work with globally-recognized brands like Nike, Starbucks, Goodwill and Microsoft, we will take the CX discussion out of the boardroom and land it squarely in the real world.

In this session you will learn:

• How to turn the abstract into the actionable – moving from CX strategy to implementation

• Methods to validate CX concepts before they hit the real world

• Techniques to align CX concepts to your brand

• Measurement methods for the success of CX tactics

• Methods to continuously improve and evolve CX programs after implementation

All participants in the workshop will be eligible to receive a free e-copy of our new book “The Art and Science of Customer Experience.”

Seeing Beyond the Strategy: Landing CX in the Real World

Engagement & Experience Expo 2015 SPONSORS

4120 Dumont StCincinnati, OH 45226

SimplifyYour Journey

Our vision for 2015 and beyond is to provide even more value to our brand members

Loyalty360 is committed to helping brands navigate the renaissance that’s happening in customer loyalty and engagement. Membership helps simplify your journey.

Contact us for more information on membership:

[email protected]

loyalty management third quarter 2015

Documents