/this_week_in_loyalty en info@loyalty360.org Copyright 2010 2010-03-10T15:38:19+00:00 http://www.loyalty360.org/state_of_the_industry/article/building_customer_driven_organizations_from_the_bottom_up http://www.loyalty360.org/state_of_the_industry/article/building_customer_driven_organizations_from_the_bottom_up#When:14:47:57Z Company executive leadership needs to wake up and support their customer marketing teams! It’s no secret to marketers that today’s customers expect more from the companies they interact with. The explosion of social media and rapid growth of new communication channels illustrates how customers expect to be deeply involved in both the company and community dialogue that shapes the products and services they use. They expect their voices to be heard before their dollars are received.Company executive leadership needs to wake up and support their customer marketing teams! It’s no secret to marketers that today’s customers expect more from the companies they interact with. The explosion of social media and rapid growth of new communication channels illustrates how customers expect to be deeply involved in both the company and community dialogue that shapes the products and services they use. They expect their voices to be heard before their dollars are received. Yet, despite all the evidence that customer behaviors have dramatically changed throughout the decade, companies remain woefully unfocused on cultivating customers.  In the 2009 Pointer Media Network report Losing Loyalty: The Consumer Defection Dilemma, sponsored by the CMO Council, the individual buying patterns of more than 32 million consumers in 2007 and 2008, across 685 leading CPG brands revealed: 52% of highly loyal consumers in 2007 either reduced loyalty or completely defected from the brand in 2008 Only four out of ten brands retained 50% or more of their highly loyal customers from year to year And according to an article published in March 2010 by Harvard Business Review: “Boards and C suites still mostly pay lip service to customer relationships while focusing intently on selling goods and services.” Read Full State of the Industry State of the Industry, This Week in Loyalty 2010-03-08T14:47:57+00:00 http://www.loyalty360.org/state_of_the_industry/article/your_hotel_guests_are_more_mobile_than_ever_before._are_your_marketing_effo http://www.loyalty360.org/state_of_the_industry/article/your_hotel_guests_are_more_mobile_than_ever_before._are_your_marketing_effo#When:15:58:03Z Armed with immediate, anytime, anywhere connectivity via their smart phones, today’s on-the-go consumers are no longer tied to their land line telephones and desktop computers. In fact, Gartner Research predicts that mobile web access will surpass traditional PCs by 2013. With the number of cell phone subscribers skyrocketing roughly 25% annually for nearly the past decade, just how mobile have your guests become when it comes to their travel plans?Armed with immediate, anytime, anywhere connectivity via their smart phones, today’s on-the-go consumers are no longer tied to their land line telephones and desktop computers.  In fact, Gartner Research predicts that mobile web access will surpass traditional PCs by 2013.  With the number of cell phone subscribers skyrocketing roughly 25% annually for nearly the past decade, just how mobile have your guests become when it comes to their travel plans? The average number of Americans who used their mobile phone to browse the web grew by 61% in 2008 vs. 2007, according to EyeforTravel. PhoCusWright forecasts that mobile bookings are expected to reach $160 million in 2010; 67% of overall travelers and 77% of frequent business travelers with web-enabled mobile phones have already used their phones to find local services and attractions. 71% of U.S. adults polled by Harris Interactive consider it safe to make a purchase via a mobile phone; 43% of respondents are willing to use their mobile phone to purchase hotel rooms and 40% are willing to use it to purchase tickets for travel. It’s clear from these statistics that your guests are becoming... Read the entire State of the Industry here. State of the Industry, This Week in Loyalty 2010-02-10T15:58:03+00:00 http://www.loyalty360.org/state_of_the_industry/article/year_two_for_loyalty_360 http://www.loyalty360.org/state_of_the_industry/article/year_two_for_loyalty_360#When:17:38:56Z Year two for Loyalty 360, the Loyalty Marketer’s Association, and we are expecting great things. 2009 was very interesting and we learned a lot since the launch of the association, Loyalty Management magazine, and our trade shows. We have seen our audiences grow in terms of web traffic and webinar attendance, and the interest in what we are doing overall continues to climb.  What was first a core focus on B2C loyalty programs has expanded into a customer-driven scope encompassing the B2B, channel, and employee engagement arenas. Through all of this interest there seems to be...Year two for Loyalty 360, the Loyalty Marketer’s Association, and we are expecting great things. 2009 was very interesting and we learned a lot since the launch of the association, Loyalty Management magazine, and our trade shows. We have seen our audiences grow in terms of web traffic and webinar attendance, and the interest in what we are doing overall continues to climb.  What was first a core focus on B2C loyalty programs has expanded into a customer-driven scope encompassing the B2B, channel, and employee engagement arenas. Through all of this interest there seems to be a common theme:  the need for best practices and case studies that are focused on measurable behavioral change.  Members are telling us that they want and need an organization that will give them the unbiased metrics and insights the market seems to lack.   We have heard the same from companies such as A&P and K-Mart, restaurants such as Laundry’s and Applebee’s, and brands such as Glaxo Smith Kline, P&G, and Intuit.  And we expect to see more of these types of questions and requests during the coming year.  During 2010 we will... State of the Industry, This Week in Loyalty 2010-01-27T17:38:56+00:00 http://www.loyalty360.org/state_of_the_industry/article/first_do_no_harm_the_loyalty_providers_role_in_protecting_our_clients_brand http://www.loyalty360.org/state_of_the_industry/article/first_do_no_harm_the_loyalty_providers_role_in_protecting_our_clients_brand#When:15:49:12Z Talking about work over coffee with a close friend recently, she remarked, “You know, I don’t envy you your job right now.  How is any company getting loyalty out of consumers in this economy?”  Her pity for me – and all loyalty marketers by proxy – is not completely unfounded.  Consumer trust in U.S. business is low. In fact, its at its lowest level in 10 years, dropping from a high of 58 percent in 2008 to a dispiriting 38 percent, according to the 2009 Edelman Trust Barometer.Talking about work over coffee with a close friend recently, she remarked, “You know, I don’t envy you your job right now.  How is any company getting loyalty out of consumers in this economy?”  Her pity for me – and all loyalty marketers by proxy – is not completely unfounded.  Consumer trust in U.S. business is low. In fact, its at its lowest level in 10 years, dropping from a high of 58 percent in 2008 to a dispiriting 38 percent, according to the 2009 Edelman Trust Barometer. To put that in perspective, that’s even lower than immediately after the Enron scandal. Maybe that’s not astonishing after the beating the economy has taken in the last two years, but it’s a statistic that has to weigh heavy on anyone responsible for managing a brand or nurturing customer loyalty. That decline makes all the more concerning the recent news reports taking several loyalty providers to task for promoting what the reports consider to be deceptive online marketing practices. According to the findings of an ongoing Senate investigation, these companies are accused of using promotions on reputable ecommerce websites to lure customers into unwittingly enrolling in fee-based membership clubs. The practice is enabled by the e-commerce companies themselves, who pass customer credit card data directly to these third parties without clearly notifying the customer. Some consumers say they only realized they’d been charged a membership fee months later after noticing unexplained ‘mystery’ charges on their credit card statements. What is perhaps most unfortunate and ironic about these revelations is that all three companies involved... State of the Industry, This Week in Loyalty 2010-01-13T15:49:12+00:00 http://www.loyalty360.org/state_of_the_industry/article/loyalty_360_weighs_in_on_12_key_loyalty_marketing_trends_for_2010 http://www.loyalty360.org/state_of_the_industry/article/loyalty_360_weighs_in_on_12_key_loyalty_marketing_trends_for_2010#When:19:39:41Z “Engagement. Collaboration.  Sustainability.  ROI.  Some may call these buzzwords, but I predict these are bottom-line concepts that will drive loyalty marketing in 2010,” says Mark Johnson, CEO of Loyalty 360 – The Loyalty Marketer’s Association. “We’ve got our finger on the pulse of the issues our members are struggling with and the strategies and solutions our experts are focusing on. And all signs point to a very consumer-driven, new school approach to loyalty.” “Engagement. Collaboration.  Sustainability.  ROI.  Some may call these buzzwords, but I predict these are bottom-line concepts that will drive loyalty marketing in 2010,” says Mark Johnson, CEO of Loyalty 360 – The Loyalty Marketer’s Association. “We’ve got our finger on the pulse of the issues our members are struggling with and the strategies and solutions our experts are focusing on. And all signs point to a very consumer-driven, new school approach to loyalty.” Johnson predicts these key trends will dominate the Loyalty Marketing Industry in 2010: ... State of the Industry, This Week in Loyalty 2009-12-30T19:39:41+00:00 http://www.loyalty360.org/state_of_the_industry/article/fuel_as_a_loyalty_currency_shifting_from_supermarket_channel_to_convenience http://www.loyalty360.org/state_of_the_industry/article/fuel_as_a_loyalty_currency_shifting_from_supermarket_channel_to_convenience#When:20:10:51Z When grocery chains such as Kroger, Albertsons and Safeway began placing fuel pumps in their parking lots many fuel and convenience store retailers viewed this as yet another competitive blow to their gasoline profits. C-Store retailers bank on using their fuel offering and competitive gas prices as a way to attract customers and entice them to enter the store and purchase additional convenience items – many priced at a higher margin convenience price...When grocery chains such as Kroger, Albertsons and Safeway began placing fuel pumps in their parking lots many fuel and convenience store retailers viewed this as yet another competitive blow to their gasoline profits. C-Store retailers bank on using their fuel offering and competitive gas prices as a way to attract customers and entice them to enter the store and purchase additional convenience items – many priced at a higher margin convenience price. But now consumers were being offered the new convenience of filling up on gasoline while grocery shopping and many times the fuel was discounted by the Grocery retailer as reward for in store purchases. Convenience store chains have long operated on two fundamental customer acquisition strategies: location and competitive fuel price. Now with this new marketing strategy emerging among the Grocery and Supermarket channel – the c-store retailer is forced to differentiate.     State of the Industry, This Week in Loyalty 2009-12-15T20:10:51+00:00 http://www.loyalty360.org/state_of_the_industry/article/voice-of-the-customer_what_does_that_mean_for_loyalty_and_engagement http://www.loyalty360.org/state_of_the_industry/article/voice-of-the-customer_what_does_that_mean_for_loyalty_and_engagement#When:19:49:50Z It has been almost a year since we launched Loyalty 360 – The Loyalty Marketer’s Association.  As the interest in what we have created continues to grow, we still see uncertainty about what loyalty is and how to achieve it.  The array of questions – in terms of the breadth, depth and the sheer number that we get from our partners and the market in general – continues to increase. What does that tell us?It has been almost a year since we launched Loyalty 360 – The Loyalty Marketer’s Association.  As the interest in what we have created continues to grow, we still see uncertainty about what loyalty is and how to achieve it.  The array of questions – in terms of the breadth, depth and the sheer number that we get from our partners and the market in general – continues to increase. What does that tell us? It tells us that in this challenging (hopefully becoming less so) economic environment, the focus on loyalty and engagement is becoming increasingly important. Customers, clients, employers, brands and channel partners are looking for an edge. They have heard about “Voice of the Customer, “Web 3.0,” “the Groundswell.” But they’re looking for best practice based implementations of groups creating engagement, creating excitement, creating commitment.  They’re looking for help to answer:  “HOW?  How do I do effectively implement an authentic ‘voice of the customer’ approach?” State of the Industry, This Week in Loyalty 2009-12-09T19:49:50+00:00 http://www.loyalty360.org/state_of_the_industry/article/big_changes_for_debit http://www.loyalty360.org/state_of_the_industry/article/big_changes_for_debit#When:16:46:12Z Debit card usage is growing and financial institutions (FI’s) are scrambling to capitalize on this important trend. According to Tower Group, “In less than 15 years, debit card transactions in the United States grew from one percent of noncash transactions to more than 50 percent.” The debit card transaction is a powerful engagement tool and key to deepening the critical DDA account relationship. Debit card transactions represent the ability to infiltrate the consumer’s everyday activities by becoming the primary payment device, while providing a constant reminder to consumers of their value to the financial institution.Debit card usage is growing and financial institutions (FI’s) are scrambling to capitalize on this important trend. According to Tower Group, “In less than 15 years, debit card transactions in the United States grew from one percent of noncash transactions to more than 50 percent.” The debit card transaction is a powerful engagement tool and key to deepening the critical DDA account relationship. Debit card transactions represent the ability to infiltrate the consumer’s everyday activities by becoming the primary payment device, while providing a constant reminder to consumers of their value to the financial institution. Loyalty programs of the past will not position FI’s to take full advantage of this opportunity. A study released in June of this year shows that the average household already belongs to 14.1 loyalty programs but pays attention to only six. A CNN study released in September reports that over half of the debit cards will have loyalty programs in place by the end of the year. Thus, the key question for debit program owners is how to build a program with a unique value proposition that’s clearly superior to the debit or credit card program down the street - a value proposition that transforms the program from one of many loyalty programs a consumer may belong to the only “relationship program.” State of the Industry, This Week in Loyalty 2009-12-01T16:46:12+00:00 http://www.loyalty360.org/state_of_the_industry/article/the_green_revolution_is_coming_but_can_it_create_loyalty http://www.loyalty360.org/state_of_the_industry/article/the_green_revolution_is_coming_but_can_it_create_loyalty#When:19:16:16Z The green revolution is coming! After attending the 3rd annual “Good and Green” conference in Chicago this past week, it seems to me that it may take a little while longer than some would like. The conference was held at the Chicago Cultural Center and needless to say, it was a very interesting and informative conference! I felt I learned a good deal, made some engaging contacts and remain steadfast in my commitment to “green.” Did you know that paper conference notebooks can be made from Elephant Dung (poop)? Neither did I, but I can tell you my twin 4 ½ year old girls who usually love paper conference notebooks did not seem to be too enthralled with these.The green revolution is coming! After attending the 3rd annual “Good and Green” conference in Chicago this past week, it seems to me that it may take a little while longer than some would like. The conference was held at the Chicago Cultural Center and needless to say, it was a very interesting and informative conference! I felt I learned a good deal, made some engaging contacts and remain steadfast in my commitment to “green.” Did you know that paper conference notebooks can be made from Elephant Dung (poop)? Neither did I, but I can tell you my twin 4 ½ year old girls who usually love paper conference notebooks did not seem to be too enthralled with these. One thing I noticed after listening to a number of impassioned speakers, is that this is … State of the Industry, This Week in Loyalty 2009-11-24T19:16:16+00:00 http://www.loyalty360.org/state_of_the_industry/article/merchant_networks_and_critical_mass http://www.loyalty360.org/state_of_the_industry/article/merchant_networks_and_critical_mass#When:16:20:47Z Merchant networks have become a very popular feature of the nation’s loyalty programs. All large credit card issuers have or soon will have a merchant network incorporated into their existing loyalty programs. The same is true for airline frequent flyer programs and several large debit card issuers. Even more remarkable than the growth of these networks generally is the proliferation of the online shopping mall. These simple merchant networks will soon be available as a link from virtually any website. The popularity of merchant networks, like any hot topic, is fueled by the perception that they are free or cheap, easy to implement, loved by consumers and will generate loyalty and significant revenues. This paper will examine these issues and the importance of critical mass and velocity in driving merchant network performance.Merchant networks have become a very popular feature of the nation’s loyalty programs. All large credit card issuers have or soon will have a merchant network incorporated into their existing loyalty programs. The same is true for airline frequent flyer programs and several large debit card issuers. Even more remarkable than the growth of these networks generally is the proliferation of the online shopping mall. These simple merchant networks will soon be available as a link from virtually any website. The popularity of merchant networks, like any hot topic, is fueled by the perception that they are free or cheap, easy to implement, loved by consumers and will generate loyalty and significant revenues. This paper will examine these issues and the importance of critical mass and velocity in driving merchant network performance. In the context of loyalty, a merchant network is two or more merchants participating in an external loyalty program by supplying members with offers for their products and services. Consumers will earn additional rewards (e.g. points, miles or cash-back) for shopping at participating merchants. Loyalty program sponsors can either assemble merchants independently or solicit the services of a merchant network provider. In any case, a merchant network is a technique and a type of partnership marketing ... State of the Industry, This Week in Loyalty 2009-11-17T16:20:47+00:00