The vast majority of loyalty programs are free to consumers, but Restoration Hardware home furnishings stores recently joined a growing number of retailers to start.
Secrets of Canada’s Top Loyalty Programs. Canadians are loco for loyalty. We rifled through Maritz Insights: The Loyalty Report, a first- of- its- kind national study of rewards and loyalty program attitudes and experiences, to show you how tot ap the national obsession. It’s the new normal in speaking to your target, right? Give them a reason to return.
IHS Names Automotive Loyalty Award Winners; General Motors Receives Top Honors. Canadians are loco for loyalty. We rifled through Maritz Insights: The Loyalty Report, a first-of-its-kind national study of rewards and loyalty program attitudes and.
Keep them loyal to the community. In fact, some of Canada’s largest loyalty programs have tapped into the distinctly Canadian obsession with rewards programs for more than a decade. And for good reason: 9. Canadians belong to some type of loyalty program. That’s the highest on the planet only after the sensible Brits.
Given the potential for unique made- in- Canada insights around our collective loyalty, it’s somewhat surprising that no one has attempted a comprehensive consumer analysis that reveals why Canadian consumers prefer to spend a lot when offered a little back. And there were plenty of surprises. We distilled the biggest takeaways on the following eight pages. Read on to fi nd out how to get more by giving a little. KNOW THE CUSTOMER. Loyalty programs are not one- size- fi ts- all.
I am so happy the VIFP party will be restricted to Plat and Diamond members. Please have a scotch ready when I come in Preferably Dewars. Experience the VIP treatment – sign up and begin enjoying the benefits of your LEGO Members get more Starbucks Rewards. Learn how to earn Star Rewards, easily pay using your Starbucks NEW YORK — Chipotle is introducing a temporary loyalty program intended to get customers back into its stores following a series of food scares.
It’s important for marketers to recognize distinct customer voices to deliver relevant value propositions. To do this, loyalty programs must identify various segments within their membership . Rob Daniel, managing director, research and loyalty at Maritz Canada, suggests following these four steps: capture transactional data, aggregate it by customer, profi le individual behaviour, and then segment a customer base.
These three dimensions should provide an accurate picture of past purchasing patterns and an indication of future behaviour. Daniel says once marketers have captured the “behavioural” data (level and amount of past purchase activities) from the step above, they should cross it with “attitudinal” data (refl ected in consumer attitudes toward a product or service) to best segment their database. Aeroplan, which began as a promotional tool for Air Canada’s business travellers in 1.
Members can earn their points at retail partners like Esso or Home Hardware, through one of Aeroplan’s travel partners like Air Canada or Avis car rental, or fi nancial partners like American Express. And on the redemption side, Aeroplan analyzes the types of rewards members are redeeming, whether it’s travel experiences or merchandise ranging from cameras to bed spreads. Based on this, Aeroplan can tailor its communications, and offer the types of promotions members are most intersted in. REACH THE CUSTOMER. Once marketers have a strong understanding of who their customer is they need to develop strategies with personalized communications. Few consumers would say they have a personal relationship with any of their favourite brands, but over the years this has been “one of the promises loyalty marketers have made,” says Daniel.
According to Maritz research, just over 6. For instance, many would appreciate being alerted when they reach their point balance targets. This allows marketers the opportunity to gather additional consumer contact information, and gain insight into the types of rewards particular members are seeking.
Today a lot of companies in Canada are still only doing what’s easiest, and sending generic communication to members, says Kelly Hlavinka, author of Canadian Retail Loyalty Index and Colloquy partner. Research conducted by Colloquy last year showed that only 2. Canadians surveyed felt communications from loyalty programs were relevant to them. For instance, as part of its popular Optimum rewards program, Shoppers Drug Mart launched the Very Important Baby (V. I. B.) program for new and expectant mothers, who receive targeted newsletters with information and advice in areas such as health and nutrition for their babies. And it’s an unprecedented opportunity to monitor and use the customer dialogue that’s mushrooming in the social media space to refine your program and better serve members.
Social media gives marketers a valuable window into actual real- time conversations “as opposed to traditional five- point scale attitudinal research or behavioural research,” says Daniel. Facebook and Twitter are rife with instant feedback about what people like (and don’t) about programs.
When internal research showed people in Scene’s social media forums wanted to earn and redeem points at partner restaurants, DVDs and Cineplex gift cards, “we made those enhancements to our program over time directly based on feedback we saw on Facebook,” says Bloom. Social media is also a great platform through which to find and mobilize online advocates that create positive word- of- mouth for a program, adds Bloom.
Scene has leveraged its Facebook page for exclusive giveaways and contests for its Facebook community. So when Milestones, a Scene restaurant partner, launched in Alberta and British Columbia, Facebook fans were the first to know about it—even before an e- mail was sent to the general membership base. This isn’t about rewarding everyone that raves about your brand online, but “you could reward them for being a member of your community and participating in an authentic manner,” he says. That could be as simple as offering someone who has positively mentioned your brand reward program points as a token of your appreciation.
Hlavinka points to the highly customized approach airline KLM took with rewarding people for talking about its brand online. Dubbed “KLM Surprise,” the initiative rewarded selected flyers with a customized gift based on what they had shared about themselves on sites like Facebook and Twitter. In return, they want that data to be used in ways that benefit them. If a program is implementing a location- based initiative, it’s best to make offers as relevant and immediate as possible, says Daniel. And the possibilities are growing. To make the most of this opportunity, think about what location information is going to be relevant to your consumers and how they’ll want to access it, advises Fukuchi. The Air Miles Reward Program launched its own free app last fall to help consumers get the most out of their everyday shopping.
The app carries the program’s roughly 1. The app also has a more traditional location look- up where users can search the sponsors available near them by category, retailer or location.
The Air Miles app, for instance, was released on both Black. Berry and i. Phone. And even though more of Air Miles’ consumers use a Black.
Berry, Fukuchi says the app has a higher penetration of i. Phone users since the platform is more app- friendly.
The company is looking at the Android platform next. Hlavinka says marketers can use transactional data to look at a member’s risk of attrition, and ultimately, their future potential value to determine whether or not it’s worth reigning that customer back in. Otherwise, marketers can spend a small fortune trying to engage all of their members, instead of focusing on “high value” or “high potential” consumers who have lost interest in the program. How am I recognizing their loyalty? How am I delivering relevance? Members of Scotiabank’s Scene loyalty program who haven’t been to a theatre in a couple of months will receive an e- mail offering extra points if they visit within a week or two of receiving the notice, says Bloom.