Loyalty Program and Reward Program News

Make customer retention priority one

2009-05-29T17:21:00.000-07:00

By Rhonda Abrams, USA TODAY
In this economy, when small-business owners ask me what to do to survive, I always advise, "Whatever you do, make sure you do whatever you can to keep your current customers."

Customer retention is absolutely critical. That's why I'm embarrassed to admit that I just lost a major customer. And for the dumbest reason: We just failed to stay in touch with them regularly.
Now keep in mind that this is a customer — a good-size university — who loves our books. For years, they've sung our praises. On my list of satisfied customers, they were right there at the top of the list. It wasn't until we noticed — took way too long to notice — that we hadn't been getting orders that I picked up the phone to find out what happened. Another company (with an inferior product, I might add petutantly) had pursued them — "they really wanted our business," my contact told me.
Can we get them back? Yes, possibly. But it's going to take work. And we'll have lost a lot of money at a time when every dollar counts. And it was completely unnecessary. Don't let this happen to you!
Whether you call it customer retention, account management, relationship management, or just staying in touch, developing a strategy so that you don't lose the customers or clients you have is vital to the success of any business — especially now.

First, remember it's more expensive to acquire a customer than to retain a customer one. And your past customers are the ones who are most likely to be future purchasers. They've already shown they want and like your products or services and are willing to pay.
This economy makes customer retention strategies even more important because customer loyalty is weakened. Whether you sell b-to-b (business to business) or b-to-c (business to consumer), your customers are going over their budgets carefully; they're looking for alternatives. And with the pace of technological change and more ways to communicate (blogs, Twitter, Facebook), they're even more likely to be more exposed to your competitors.
That means you need a customer retention plan. Keep in mind that it doesn't need to be costly, time-consuming or difficult. You just need a few simple steps and always make it a priority:
1.Contact your top customers or clients regularly. Make a list of your top customers, at least 10-25. Call them each at least quarterly. Take the best ones to lunch or dinner — even if that means you have to hop a plane.
2. Keep your name in front of all your customers. Advertise regularly. Network regularly. Send e-mail newsletters regularly. The key is doing this regularly.
3. Give your current customers good deals. We're all used to come-on deals to attract new customers, but we then fail to offer similar discounts to current customers. Remember, your competitors are targeting your customers with deals.
4. Surprise them! Do something special and unexpected for some of your best customers. Send them a small gift. Add something extra to their order.
5. Keep track. Get a database, contact manager, digital address book. I'm always surprised by the number of businesses — especially small businesses — that do not have a good database of their past customers. Find a way to keep track of all your clients — past and present — so that you can easily and quickly contact them.
6. Communicate, communicate, communicate. All of us, myself included, take our customers for granted. As a result, we get so focused on doing our work, that we don't take enough time out to meet with, talk to, and more importantly, listen to, our customers. Stay in touch. Ask them what they need and want. Be part of their lives and businesses.
What about me and the customer I've lost? I'm getting on a plane and going to see them. I'm going to offer them extra-special service to get them back in my fold. And I'm going to be doing a whole lot of other business travel and phone calls in the next few months. I've learned my lesson. After all, a customer is a terrible thing to waste.
Rhonda Abrams is president of The Planning Shop, publisher of books for entrepreneurs. Her newest book isSuccessful Marketing: Secrets & Strategies. Register for Rhonda's free business tips at www.PlanningShop.com.For an index of her columns, click here. Copyright Rhonda Abrams 2009.

Godiva Offers Loyalty Members a Taste of the Good Stuff

2009-05-22T07:08:00.000-07:00

By Brian Quinton for P&I
Luxury candy maker Godiva Chocolatier is launching its first loyalty program this spring, the Godiva Chocolate Rewards Club, offering fans of the confection free gifts and chocolate monthly for spending in Godiva retail stores, and free standard shipping for online orders.

Membership in the Godiva Chocolate Rewards Club is free. Registrants over 18 can sign up by providing a valid e-mail address. Godiva will use the e-mail opt-in to send notice of special offers and new product announcements.

Alternatively they can sign up at any U.S. Godiva Boutique by volunteering their e-mail address. The new members will then receive a membership card and can go to the Godiva Web site and enter their account number to activate their membership.

In exchange for that personal e-mail information, Godiva Chocolate Rewards Club members will be able to claim a free piece of Godiva chocolate every month from their nearest U.S. Godiva Boutique. The company operates 450 of these standalone boutiques around the globe. Members won’t be able to claim their rewards from the 10,000 specialty retailers who also partner with Godiva.

In addition, a single transaction of $10 or more at a Godiva Boutique in the U.S. will entitle the club member to claim a free gift reward from a participating Godiva boutique the following month. Members will be limited to one free gift a month, and will have to show their Godiva Rewards Club card or some other personal data to claim it.

Finally, members who buy chocolate or other goods from Godiva’s online store will be able to take advantage of free shipping within the contiguous U.S. To qualify at the time of their online orders, members will need to be signed into their Rewards Club account to let Godiva’s Web site look up their membership and eligibility.

To promote the launch of the loyalty program, Godiva is offering visitors who sign up for the Chocolate Rewards club a chance to win a complimentary chocolate party at their nearest Godiva boutique. The winner, chosen randomly from among those who register for the rewards club by June 12, will get to invite up to 25 friends along for an evening party of hors d’oeuvres and choco-centric refreshments at their nearest Godiva boutique. Attendees will also get to shop the store at a large discount during the party.

Founded in 1926 by Belgian chocolatier Joseph Draps, Godiva is now owned by Turkish holding company Yildiz Holding A.S.

Joining Loyalty Club #1 Way to Save

2009-05-18T08:10:00.000-07:00

The Richmond Times-Dispatch's Accidental Chef, Kendra Bailey Morris, published her top ten cost cutting suggestions for thrifty diners. Topping the list is her recommendation to join one's favorite restaurant's loyalty program. More and more customers are expecting some kind of reward in exchange for their loyalty. Here's the full article:

DEAR ACCIDENTAL CHEF: Our family loves eating out, but since this economic nosedive, we find ourselves going out less and less. We want to continue supporting our local restaurants, and I would like time off from cooking. Any ideas on how the average family can still afford to dine out without breaking the bank? -- Hungry in Henrico

DEAR HUNGRY: I figure many of us are nodding our heads in appreciation of this timely question. Like you, we want to continue supporting our local restaurants, especially in such a questionable economic climate (they're suffering, too!), but how do we reconcile a night out on the town when menu prices seem to be increasing and portions decreasing?

The good news is, now more than ever, establishments are addressing this situation head-on. Never have I seen so many weekly specials, discounts or special promotions being offered on a regular basis. From half-off deals to $10 gift cards arriving by mail, restaurateurs are doing whatever they can to keep your business. With this in mind, if you play your cards right, you can enjoy the occasional night out on the town without emptying your wallet.

Check out these 10 cost-cutting suggestions before you make your next reservation.

1. Be a coupon clipper. Check newspaper-ad inserts or visit a restaurant's Web site to access downloadable coupons and special deals. Take a few moments to join your favorite restaurant's loyalty club online to receive additional promotions.

2. Happy-hour specials aren't just for drinks. Many eateries now offer food promotions during happy hour such as half-off appetizers and early-bird specials.

3. If you've got kids in tow, take advantage of "kids eat free" nights. Many restaurants offer weekly perks for families dining out, including discounted and free meals, usually with the purchase of at least one adult meal.

4. Go easy on the alcohol and dessert. Drinks are one of the fastest ways to run up your bill. Order water with lemon or have a pre-dinner cocktail at home instead. After dinner, enjoy ice cream or another dessert at home.

5. Take advantage of those three-course pre-theater deals (usually an appetizer, an entrée and dessert for about $25 per person). This is a great way to dine at a high-end restaurant minus the three-figure bill.

6. Do lunch or brunch instead of dinner. It's certainly not news that lunch prices are significantly lower, so take advantage of this. Instead of a Friday night dinner, take the whole family out for a relaxed Sunday brunch.

7. Enjoy your favorite restaurant at home. Grab some takeout for an intimate evening you can savor while wearing your favorite pajamas.

8. Split and share. Instead of ordering two entrées and having leftovers, split the entrée part of your meal, or order several appetizers to share as your meal.

9. Go ethnic. You can get a lot of bang for your buck dining at locally owned Asian, Mexican or Indian restaurants. While the ambience is often no-frills, a bowl of Vietnamese pho soup or a platter of tacos de carnitas will fill you up for less than $10.

10. Pay with plastic. Many credit cards offer dining rewards or cash-back bonuses for visiting certain restaurants. Be sure to join your credit card's rewards program to fully participate.

Lastly, no matter what promotions or specials you decide to partake of, always be sure to tip your server appropriately. A discounted meal doesn't mean your server worked any less.

Kendra Bailey Morris is a Richmond-based food writer, culinary instructor and author of "White Trash Gatherings: From-Scratch Cooking for Down-Home Entertaining" (Ten Speed Press). Send ideas, tips or culinary questions to info@theaccidentalchef.net or visit http://www.theaccidentalchef.net.

Five Steps To Bridge Loyalty Gap

2009-05-07T07:59:00.000-07:00

Peter Clark, editor of The Wise Marketer, has published an updated edition of The Loyalty Guide. Below is an excerpt that deals with bridging the "customer loyalty gap".

How do you bridge the gap, then? Marketers need to learn to look at the issue from the customer's point of view, and that usually means the following:

1. Recognise that value is not the sole criteria for judging the loyalty of a customer.

2. Develop ways of identifying the truly loyal among the medium- and low-value customers.

3. Cluster customers using multi-dimensional modelling. The model will need to be built on several facets of customer behaviour (i.e. frequency of buying, engagement or depth of involvement with the brand, value of transactions, and tenure with the brand).

4. Develop a "benefits bouquet" to build and nurture relationships across the spectrum from low to the medium value customer. It is obvious that you can't spend the same amount of money on these customers as you can on higher value customers, but loyalty is not directly proportional to the money you spend: it is dependent on the care and attention you show to each customer - and that doesn't take much money at all. Simply ask yourself how you can make the customer's product experience better, and the answer will give you a range of loyalty-building tools.

5. Understand that loyalty is not just about rewards points and birthday greetings. It is the company's "burning desire" to ensure that customers get the best value for their money. And if you can translate that sentiment into suitable behaviour among employees - so that every customer gets the greatest attention they can get every time they go shopping - then the chasm will begin to close.

This article is an extract from the 36 chapters of detailed coverage in 'The Loyalty Guide III', which is The Wise Marketer's latest 920 page global guide to customer loyalty programmes, techniques, practices and theory. The report is available now, worldwide, for £1150 (approx. US$1995 or Euro 1495). See TheLoyaltyGuide.com for the free executive summary, downloadable chapter samples, table of contents, online searching, and online ordering.

CVS ExtraCare new savings

2009-05-06T08:09:00.000-07:00

CVS/pharmacy, America’s largest retail pharmacy, today announced a special promotion called “Double My Bucks!” that offers double Extra Bucks rewards to customers purchasing prescriptions from May 1 through June 15 at any of CVS/pharmacy’s more than 6,900 locations. By simply presenting a Double My Bucks! certificate along with their ExtraCare card, shoppers will receive $2 Extra Bucks for every two prescriptions filled.

By using an ExtraCare card, CVS/pharmacy shoppers earn Extra Bucks rewards on nearly all purchases. Extra Bucks are like free CVS money. Throughout the year cardholders earn 2% back on non-prescription purchases and $1 Extra Buck for every two prescriptions purchased. Some Extra Bucks offers are instant coupons that print when you purchase specially advertised products, and quarterly Extra Bucks rewards are issued to cardholders in their first visit in January, April, July and October. These rewards are issued to cardholders at the end of each quarter on the bottom of your receipt and by email to cardholders that have provided an email address at CVS.com.

CVS/pharmacy’s ExtraCare program is the largest retail rewards program in the nation, with more than 50 million active cardholders. Enrolling in ExtraCare is easy and takes less than two minutes in-store or online at CVS.com. The program is free and members receive benefits such as money-saving offers on register receipts in addition to Extra Bucks rewards and instant Extra Bucks. ExtraCare cardholders can also provide their email address with their secure account online, to receive special savings and health & beauty information directly to their email inboxes.

To learn more about the program, consumers can visit http://www.CVS.com/ExtraCare.

Source: CVS

Feldman: Drip Marketing Interview

2009-05-06T07:47:00.000-07:00

50 minute interview with Bob Ruzicka of Compton and Sons on the topic "What is Drip Marketing".

While many businesses are frantically reducing costs, eliminating “overhead” (like people), inventory and good humor, you don’t have to be one of them. Instead you can be a member of an exclusive group of business leaders who worried–but took action anyway.

Drip marketing from your customer database is the one sure thing you can do to stimulate more referrals, more inquiries and more consults all year long in your business with a minimum upfront investment of time and money.

Loyalty Lock is a comprehensive tool that keeps your restaurant or business continually in front of your best best customers. Even when they are not ready to buy, the database-driven Loyalty Lock system treats each customer individually and markets to them appropriately for their level of interest.

You can listen to the interview here.

The Database Diva, Lori Feldman, posted a

Certified Oil Expands Loyalty Program to Grocery Stores

2009-05-01T10:11:00.000-07:00

-By Convenience Store News Staff

Certified Oil Co., operator of gas stations and convenience stores in Ohio, is expanding its “Certified Savings Program,” a three-level customer loyalty program, to grocery stores, the company reported.

The program is being offered to grocery chains, as well as independent-owned grocers, in and around Columbus, Ohio, and will eventually expand to other geographic areas.

"The program provides a low cost solution to enable grocery stores to provide market basket rewards to build sales," said Wayne Wills, Certified’s merchandising director, and a former grocery industry manager. "Grocery partners will also enjoy additional traffic driven to their stores from our existing cardholder base."

Certified Savings has been available in seven Certified stations for the last few months, and by extending it to grocers and their customers, the company hopes to develop and maintain loyalty among current and future customers, while financially rewarding customers for their continued patronage, according to the company.

Through this new program, grocery partners will be able to reward customers with Certified Savings points to obtain fuel discounts of up to $1 per gallon at participating Certified Oil locations. Unlike other programs that require complete point-of-sale system integration, Certified Savings requires minimal upfront costs, the company reported.

The program will also benefit grocery partners by increasing their customer base as Certified Savings is being expanded to other retail partners such as restaurants, drug stores and movie theaters, and those customers will also be directed to shop at participating grocers.

"By adding a variety of quality partners, Certified Savings card holders will be able to quickly earn valuable gasoline discounts for shopping at participating grocers and other retailers,” said Greg Ehrlich, COO of Certified Oil.

"Consumers are looking for bargains now more than ever before, and Certified Savings provides grocery stores with a simple, cost effective way to deliver added consumer value and grow market share."

All Certified Savings cardholders, including customers of participating grocers, are provided with benefits at Certified convenience stores and gas stations. Membership levels are as follows:

-- Level one benefits includes product discounts and automatic entry into club programs, in which customers buy a designated quantity of a product—cups of coffee, for instance—with the next one being free. At this level, members are rewarded with points on their purchases and redemption options that include gasoline discounts and free merchandise.

-- Level two (which also incorporates level one) cardholders are provided the option of receiving two cents off per gallon of gasoline for enrolling their card for Automated Clearing House (ACH) payment. The ACH debit payment plan allows the cardholder to transfer funds by authorizing a party (Certified, in this case) to electronically withdraw funds from the cardholder’s checking account. This basically converts the loyalty card into a payment vehicle similar to a debit card, but with significantly lower processing fees, enabling Certified to pass on some of the savings.

-- Level three (which includes levels one and two) cardholders are offered three cents off per gallon of gasoline for paying cash. The Certified Savings program is Ohio’s first multi-merchant coalition program for service stations providing consumers with gas rewards.

Source: Csnews.com

Enroll Loyalty Members Outside The Store

2009-04-30T14:10:00.000-07:00

Quick Loyalty Lock tip: Don't miss out on the opportunity to enroll customers into your loyalty program while you're away from the store. Keep a few dozen sign up forms in your car and hand them out at the next Rotary meeting or Little League game. You'll almost always run into someone you know and if they haven't been in your store in a while, it's the perfect opportunity to get them plugged in to your new Loyalty Lock program. Without a doubt, they'll be in to see you soon.

Uno's Virtual Gift Cards Capture Customer Info

2009-04-30T10:11:00.000-07:00

Uno Chicago Grill now offers patrons virtual gift cards, which givers load online and then e-mail to recipients.
By Lisa Bertagnoli, Contributing Editor -- Chain Leader, 5/1/2009

Patrons who want to buy a friend an Uno Chicago Grill gift card now have two choices: Buy a plastic gift card at a restaurant; or go online, buy a virtual card, and e-mail it to the recipient.

Uno Chicago Grill now offers patrons virtual gift cards, which givers load online and then e-mail to recipients. The cards capture information from both giver and recipient.

Boston-based Uno began offering virtual gift cards last December as a convenience to guests, says Rick Hendrie, senior vice president of marketing for the 200-unit chain. Uno advertised the virtual cards via an e-mail blast to customers. To create the cards, givers visit the chain's Web site, click on "gift cards," and choose the e-mail option. Once there, they can select one of nine backgrounds and a denomination of $25 or $50. They then provide the recipient's name and e-mail address and proceed to a pay page, where they give their own name, e-mail address and payment info. Givers are sent a confirmation e-mail when the recipient opens the card.
The virtual card captures data on both giver and recipient. That data will enable Uno to "segment messages to appropriate audiences," Hendrie says, though he will not elaborate.
Eighty-five percent of virtual cards are used within three months, and users spend 60 percent more than the card's face value, says David Stone, CEO of the company that supplies the technology (it is available as a Web-based or POS application).
Stone notes that the cards are not glitch-free; just under 1 percent bounce back as spam. "But the numbers are falling every day," he says.

Panera Bread Rolling Out Loyalty Program

2009-04-30T08:04:00.000-07:00

Panera Bread CEO, Ron Shaich, addressed the Richmond Heights, Missouri company's plans for a consumer loyalty marketing program during the company's Q1 2009 earnings conference call yesterday. Talking about Panera's connection with their customers, Shaich said:

"Let me now speak to a number of tests that are going on relative to our effort to use our scale to deepen our relationship, that is to say marketing with our customers. As we told you on our last call, we will be testing our first television advertising in three markets beginning in the early summer. We've also begun a pilot of a loyalty program in one market with 30 bakery-cafes and have received positive feedback from many of the 30,000 plus people who have enrolled in this test program.

"And as ever we intend to use operations as a means to build transactions. For us this means speed, this means accuracy and this means an improved customer experience to increase a long-term concept differentiation. As you well know, neither category management, nor product development, nor media, nor operations will single-handedly improve our transaction in the face of a weak consumer environment.

"But taken together, we're hopeful these initiatives will be strong enough to blunt much of the recession's impact and help us to meet our gross profit dollar targets by driving both transaction growth and gross profit per transaction growth."

Panera's loyalty strategy is similar to other nationwide restauranteurs and supports the claims of the loyalty marketing industry as to the effectiveness of such programs.

Southwest Airlines' Rapid Rewards Program Wins Best Award Redemption at the 21st Annual Freddie Awards

2009-04-30T07:23:00.000-07:00

Airline Finishes in the Top Five in Five Other Categories

DALLAS, April 28 /PRNewswire-FirstCall/ -- Southwest Airlines' frequent flyer program, Rapid Rewards, won first place for Best Award Redemption and placed in the top five in five other award categories at Inside Flyer magazine's 21st annual Freddie Awards ceremony last week in Ft. Lauderdale, Fla. This is the 11th consecutive year for Southwest Airlines to win Best Award Redemption (every year since the award was created in 1998). Southwest Airlines also placed in the top five in five other categories, including: Program of the Year, Best Web Site for southwest.com, Best Member Communications, Best Bonus Promotion, and Best Customer Service.

"Once again, frequent flyers have spoken loud and clear - Rapid Rewards is one of the best frequent flyer programs out there," said Ryan Green, Southwest Airlines' Director of Customer Loyalty. "Our Rapid Rewards program is designed to bring value to our most frequent and loyal Customers, and we are honored to be recognized with this prestigious Freddie Award."

Each year, InsideFlyer magazine invites members of all frequent traveler programs to vote for the programs they feel deliver the best combination of benefits, awards, and returns on loyalty from the traveler's point of view. Winners are determined not only by how many votes a program receives, but by the overall merits of each program as reflected in "value voting," where voters rate their favorite programs on a scale of one to ten. More than 700,000 frequent flyers submitted ballots to Freddie Awards organizers, casting votes for programs worldwide.

www.southwest.com
Website: http://www.southwest.com/

Restaurants Make Regulars Feel Special

2009-04-29T19:12:00.000-07:00

In this economy, many restaurant customers are holding tight to their wallets and carefully deciding when and where to dine. So it makes sense that restaurateurs want to keep their regulars.

If you've been a good customer over the years, you're king. "It's your regulars who will get you through this," says Garrett Harker, owner of Eastern Standard Kitchen & Drinks in Kenmore Square. Every restaurant needs regulars during the down times. Now owners and managers are sending little nibbles or a glass of wine to the people who have filled their tables during bad weather this winter, in the post-holiday slump, and other moments when numbers are down. "For the last 10 years, the restaurant community has enjoyed unlimited growth," says Harker. "Now people are more cautious about who they support. They're spending their limited number of dollars on those places they want to survive."
That's certainly true for Richard Barnett and his wife, Laura, regulars at 51 Lincoln in Newton Highlands. When they go out for dinner - usually every weekend, he says - "we like to know it's money well spent, where we love the food and are treated well." He's noticed that the few restaurants he and his wife dine at frequently are "doing more to actively court us, such as making sure we get a table and offering a free dessert."
Freebies are just one part of the well orchestrated effort. Harker likes to send an appetizer to the table of a guest who hasn't ordered one. Or he'll provide a drink recipe for someone who has enjoyed something at the bar.
Attentive restaurants keep track of what their customers order. It isn't necessarily luck that regulars snag a reservation at their preferred time or are seated at a favorite table. This information - along with special requests, birthdays and anniversaries, a preference for sparkling or tap water - once stored in a good maitre d's head, is now captured in the reservation system.
Smaller spots have an easier time remembering the couple who likes bread warm, with butter instead of olive oil, or the woman who prefers a seat at the bar overlooking the kitchen. This, says chef and co-owner Chris Parsons of Catch Restaurant in Winchester, is integral to the hospitality business. "The things that make you successful matter even more now." His 5-year-old restaurant, he says, "is less about me and very much about our servers and the experience [diners] have here."
Two regulars at Catch, Annie and Jeremy Baker, are going out less, she says, "but when we do, we like to eat nice food." She appreciates that Parsons "comes out and chats with people and often sends out unexpected treats between courses." The Bakers, who live near the restaurant, patronize local businesses. But Annie Baker also believes "we're not necessarily going to get a better meal elsewhere."
Another Catch regular is Winchester resident and restaurateur Barbara Lynch. Lynch often grabs an early supper there with her 5-year old daughter and says that her husband, who loves fish, eats there at least once a week. It's not just Parsons's food they come for ("he's a light-handed chef," says Lynch), but "he makes me feel appreciated and you want to give back and support him."
These days patrons are ordering more reasonably priced items, even at expensive establishments. At Mistral, a small plates menu "is a way to offer other options at price points that are far different from our regular menu," says Mark D'Alessandro, director of operations of the Columbus Restaurant Group that includes the chic bistro. Revenues are down now because guests are spending less, says D'Alessandro. "Lower priced concepts are probably faring better." Their group's casual Italian restaurant Teatro hasn't seen the declines that their more expensive properties, Mistral and Sorellina, have.
Smaller guest checks are less of an issue for Eastern Standard, where most entrees range from $18 to $24. Owner Harker keeps an eye on that, and, he says, "We have to demonstrate we care."
Enjoy the royal treatment.

Sizing the US loyalty market: the 2009 census

2009-04-27T06:01:00.000-07:00

For the first time on record, US credit card reward programme members outnumber airline frequent flyers, according to Colloquy's '2009 US Loyalty Marketing Census'.

The census found that membership in US financial services rewards programmes has reached 422.0 million, a 77% increase since the 2007 census, sending financial services past airline frequent flyer programmes as the country's largest market for customer loyalty programmes. In contrast, airline loyalty programmes account for only 277.4 million members.

The census showed that total membership in US loyalty rewards programmes has reached an estimated total of 1.808 billion. Programme memberships ranked by industry were as follows:

Industry sector

Memberships

Financial services

422.0m

Airlines

277.4m

Specialty retail

191.3m

Hotels

161.8m

Grocery

153.3m

Mass merchants

124.8m

Gaming

106.0m

Department stores

92.8m

Drug stores

73.9m

Fuel convenience

51.2m

Restaurants

13.7m

Car rental & cruises

10.7m

Other

127.9m

Total

1.808bn

Figure 1: US loyalty scheme memberships
Source: Colloquy - 2009 US Loyalty Marketing Census

"Clearly, loyalty membership growth in the financial services sector was pronounced during much of our latest census period, prior to the economic free fall," said Colloquy partner Kelly Hlavinka. "Just a few years ago, the industry regularly talked about how 50% of all credit cards had reward programmes tied in. Today, estimates range from 75% to 80%. For debit cards, 2006 estimates were 10% to 15%, but latest industry analyses put the numbers at 25% to 50% due to the explosion of merchant funded network programmes. Rarely are companies truly thinking through how crowded the marketplace has become and how to evolve their loyalty strategy to differentiate from competitors."

However, Colloquy also predicts that financial services reward programme membership will experience slow growth in the coming years, and highlights regulatory changes in the US that may affect reward programme budgets, portfolio consolidation, and even cause some card issuers to exit the marketplace. "Card issuers will turn from growing their portfolios to retaining their most profitable and credit-worthy customers," concluded Colloquy's editorial director, Rick Ferguson.

For the purpose of the census, a loyalty marketing programme is defined as recognising and rewarding the best customers of a business. Overall, the census covers 13 industry sectors, and counts programme memberships rather than unique individuals. A white paper entitled 'The Big Sort: The 2009 COLLOQUY Loyalty Marketing Census', explaining the latest census findings, has been made available for free download from Colloquy's web site - click here (free registration required). - click here (free registration required).

EBay to test eBay Bucks shopping rewards program

2009-04-25T08:16:00.000-07:00

NEW YORK (AP) — Shopping on eBay just got a bit more rewarding, at least for some users of the online auction site.

On Wednesday, eBay Inc. launched a "beta" test version of eBay Bucks, a program that lets participants earn a 2 percent reward on certain items they buy through the site and pay for using eBay's online payment service, PayPal. Rewards come quarterly as gift certificates, which can be used to buy other items through eBay within 30 days.

Unlike many other "beta" tests, this one is open by invitation only; eBay is randomly selecting buyers to enroll. Kurt Apen, head of eBay's loyalty marketing team, said the company will likely expand the program to everyone over the next several months.

The arrival of eBay Bucks marks the company's latest customer-retention move — something the company is focusing on as works to improve its online marketplace, at a time when consumers also have cut back on spending because of the dismal economy.

Other efforts eBay has undertaken include distributing coupons to users and offering discounts on referrals from Microsoft Corp.'s Live Search site.

Program participants will be able to earn up to $200 in eBay Bucks per item purchased on eBay and up to $500 per quarter. Because the reward rate is 2 percent, a $100 cell phone would earn $2 eBay Bucks, translating to $2 in gift certificates at the end of the quarter.

Apen said eBay Bucks users will be able to collect rewards on most types of items sold on the site, but real estate and many items sold through eBay Motors will be ineligible.

EBay, based in San Jose, Calif., initially tested eBay Bucks as a smaller pilot program last year. Changes since then include making it easier for users to redeem their rewards and allowing them to spread them out over various transactions.

— Rachel Metz, AP Technology Writer

MovieTickets.com Rolls Out the 'Red Carpet' for Moviegoers, Offers First-Ever Auction-Based Loyalty Program

2009-04-22T23:47:00.000-07:00

LOS ANGELES, CA--(Marketwire - April 21, 2009) - MovieTickets.com (www.movietickets.com), the worldwide leader in advance movie ticketing, today announced it has launched an auction-based loyalty program for registered moviegoers.

The "Red Carpet Rewards Club," the first of its kind in the movie-ticketing industry, rewards the site's 11 million-plus registered users, and any future registered users, with points each time they purchase tickets at MovieTickets.com. Users can then bid points on three tiers of prizes during monthly auctions.

"We wanted to create a fun and innovative way for our most loyal MovieTickets.com customers to reap the rewards of their moviegoing," said Walt Borchers, Senior Vice President of Sales and Marketing, MovieTickets.com. "And the innovative program design gives everyone a shot at winning, regardless of the number of points accrued."

Prizes refresh each month and include everything from movie ticket packages and memorabilia to round-trip air fare, shopping sprees and gaming consoles. Consumers are encouraged to check back monthly to view the latest auction items.

For more information or to speak with a MovieTickets.com representative, contact Formula at (310) 578-7050 or via e-mail at marek@formulapr.com.
About MovieTickets.com

CONTACT:
Grant Marek
Formula
310-578-7050