Powered by Loyalty 360
Volume 1 Number 5
November 2009
I’m Happy
to be Here!
How Engaged Employees
Improve Your Bottom Line
Give back...
Get back
The Engagement
Impact of CSR
EngagEmEnt Expo prEviEw
Everyone is talking about engagement. What does this mean to you?
2 Loyalty Management™ | Loyalty360.org
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to provioè our partnèrs with in-oèpth, rèlèvant iníormation about thèir customèrs,
ano thèir compètitors' costumèrs. This valuablè iníormation incluoès
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lèarn how our èxclusivè insioht can bè usèo to maximizè
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Tis Month in
N oV E mB E R 2 0 0 9 V oL U mE 1 N U mB E R 5 WWW. L oYa LT Y 3 6 0 . oR g
6 What’s on Loyalty360.org
8 Letter from the editor
10 Contributors
12 your Voice
14 Q&a: ask the experts
16 behind the brand/people
18 behind the brand/people
20 books
22 Excerpt from: “made for Collaborating”
24 engagement or Loyalty, Does it matter?
26 Why Should We Care
What they think?
30 I’m Happy to be Here!—How engaged
employees Improve your bottom Line
(and make it a Great place to Work!)
36 Give back...Get back
40 Customer behavior is Influenced more by
emotion than reason
42 Integrated Customer marketing™
a systematic approach to delivering
customer interactions that create
competitive advantage and drive
shareholder value
Why Should We Care
What They Think?
I’m Happy to be Here!
How Engaged Employees Improve Your Bottom Line
We make a living
by what we get,
we make a life by
what we give.
Give Back...Get Back
Loyalty Management™ | November 2009 3
4 Loyalty Management™ | Loyalty360.org
gp can help you communicate
your critical marketing message
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For over 40 years we have provided production
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Utilize Graphics Plus to communicate with your
clients via print or multimedia. As a single-source
provider of production and distribution solutions,
we can save you the time and expense of dealing
with multiple vendors.
To receive a complimentary copy of Contrast Varnish
Techniques, and for other ideas on how to make your
direct mail program stand out from the rest, contact
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Tis Month in
Loyalty Management
editorial & production team:
erin raese – Editor in Chief
Caitlin Schar – Editorial director
Victor Wilcox, Graphics plus Inc. – Layout & design
Kathleen Ninneman – graphic designer
Graphics plus Inc. – Print Production
Loyalty 360 team:
mark Johnson – President and CEo
tara barkett – marketing and account manager
amanda Chasteen – associate manager, marketing operations
Jennifer Gunnarson – marketing & Events Coordinator
Julie Hellebusch – Controller
article Submissions: Erin Raese (630) 235-8251
advertising: Caitlin Schar (630) 850-7867
To subscribe to Loyalty management visit Loyalty360.org.
N oV E mB E R 2 0 0 9 V oL U mE 1 N U mB E R 5 WWW. L oYa LT Y 3 6 0 . oR g
We Want your Feedback
as a “voice of the customer” focused publication we want to
hear from you—our customers. What would you like to see
included in these pages? Share your thoughts on articles and
ideas for content. This is your platform.
We would like to hear from you.
Write us at: Mailbag@LoyaltyManagement.com
In 1967—the answer was
“plastics.” Today, the magic
word is “analytics.”
The New Plastics: Driving Share Through
Competitive Analytics
46 the New plastics: Driving Share through
Competitive analytics
48 Loyalty alternatives— Create my own
currency or use theirs?
49 online Video Can be Very engaging
50 Loyalty marketing beyond programs
53 building advocacy before the purchase
54 measuring engagement: Simplicity is Key
56 Loyalty program profile:
rock bottom mug Club®
Customers are
Loyal To Brands, Not
marketing Programs
Loyalty Marketing Beyond Programs
sneak peek
Engagement Expo
Sneak Peak
Loyalty Management™ | November 2009 5
We want to know what you think of Loyalty
Management. What you like, what you don’t
like and what you want to hear more about.
Your ideas will help to shape the magazine as
we move into the next year of publication!
Voice of the Customer: Industry Research Report -
Insights & trends for today’s VOC practitioners
by: Allegiance
Te Changing Face of Card Loyalty
by: Wong Wan-Ling, Insight Consultancy
360 Connect was created to glean “voice of the
customer” insight, to attain a better understanding
of the challenges in the market and how best to
address them.
Te loyalty marketer’s community
Increasing Traveler Loyalty Trough Interactive Insight-
Based Marketing
by: Greg Hogue
Empowering the “Pulse” Troughout Loyalty Marketing
by: Mark Johnson
When deciding ones favorite or regular “go-to” shop, restaurant or vendor there are several elements that play
of each other to drive customer loyalty. Please rank the following in order of importance to you, then tell us
why your #1 is most important.
What is your #1 factor when determining what makes you most loyal? Why?
Visit Loyalty360.org to participate online or email your response to Mailbag@LoyaltyManagement.com.
Responses will be published in a future issue of Loyalty Management!
Loyalty Program
Brand Recognition
Discounts/Special Ofers
Personal recognition or acknowledgment
Environment/Ambiance (decor,location,etc)
Service (pre-purchase)
Customer Service (post-purchase)
6 Loyalty Management™ | Loyalty360.org
Loyalty Management™ | November 2009 7
Engagement—the newest buzz word.
But what is Engagement? Wikipedia has multiple defnitions
based on a particular audience: student engagement, customer
engagement, employee engagement, work engagement.
Merriam-Webster states: a: an arrangement to meet or be present at
a specifed time and place <a dinner engagement> b : a job or period
of employment especially as a performer.
I’ve had over a hundred conversations in recent months talking about
Engagement. I can now attest that there are many defnitions, even
more questions but also an immense desire to fnd the golden egg.
We’re here to help you in your search. Between this issue and
the upcoming Engagement Expo we will provide a wealth of
information—from philosophies to executable strategies to defning
success criteria to peer insights.
In this issue, Dan Paulson takes us through the 10 steps to engaged
employees ( page 32) and on page 36, Athena Golianis shares the
importance of corporate social responsibility and how it drives
employee engagement.
No one builds engagement and commitment with employees and
customers better than Disney. Meet the man behind the brand—
Lee Cockerell, former EVP of Operations at Disney and
Engagement Expo keynote speaker—on page 60. You’ll also
enjoy Lee’s book CreatingMagic (review on page 21.)
We’d like to hear about your journey to engagement.
Please share your experiences and insights with us at
We look forward to seeing you November 18-19, 2009 in
Chicago at the Sheraton Hotel and Towers!
Erin Raese
Loyalty Management
is now a bi-monthly
Expect the next issue
in late December!
Loyalty 360
has announced
the first annual
Engagement Expo
to be held in Chicago
at the Sheraton
Chicago Hotel & towers
November 18 & 19
2010 Loyalty Expo to
be held on June 6–8 in
Orlando, FL at the Omni
Champions Gate
Loyalty 360 on twitter
Powered by Loyalty 360 Volume 1 Number 5
November 2009
I’m Happy
to be Here!
How Engaged Employees
Improve Your Bottom Line
Give back...
Get back
The Engagement
Impact of CSR
EngagEmEnt Expo prEviEw
Everyone is talking about engagement. What does this mean to you?
8 Loyalty Management™ | Loyalty360.org
Loyalty Management™ | November 2009 9
Loyalty. Reinvented.
Loyalty programs are a strategic asset.
To capitalize on them requires going
beyond rewards.

First Data provides intelligent, data-driven loyalty solutions that
provide insight to make your loyalty program more effective. Utilizing
state of the art analytics, First Data enables you to understand your
customers, predict purchasing behavior and maximize revenue.
First Data is uniquely skilled at providing our clients with more relevant
and valuable rewards for their customers, increasing customer
acquisition and retention and creating stronger relationships.
To learn more visit frstdata.com
©2009 First Data Corporation. All rights reserved. All trademarks, service marks and trade names referenced in this material are the property of their respective owners.
Gallup Consulting
gallup Consulting has a unique
approach which helps companies
drive true organic growth—revenue
and proft increase from continuing
operations. gallups’ consultants
are trusted advisors to many of the
world’s leading companies.
Carlos Dunlap
Carlos dunlap is the Practice
director of Kobie marketing’s Loyalty
Consulting group. Carlos has over
15 years of experience designing
customer loyalty strategies for the
world’s largest retailers, banks,
telecommunications and media
Doug Fleener
doug is a veteran retailer with over 25
years of hands-on retail experience.
He is the former director of retail for
Bose Corporation and has also owned
and operated his own specialty
stores. doug is now president and
managing partner of dynamic
Experiences group LLC, a Lexington,
ma based retail and customer
experience consulting frm.
Athena Golianis
athena is the owner and founder
of agW Idea group, Inc. She is
an innovative brand builder and
integrated marketing communications
leader and has the success stories
to prove it. over the past 23 years,
athena has helped position and build
some of the biggest blue chip brands
in the business.
Michael Jais
michael is President of graphics
Plus, which provides design, print,
multimedia, and distribution
solutions that support organizations’
marketing and loyalty strategies.
Carlos Dunlap
Doug Fleener
Athena Golianis
Bob Konsewicz
Dan Paulson
Phil Rubin
Mark Johnson
President and CEo of Loyalty 360.
mark has signifcant experience in
selling, designing and administering
prepaid, loyalty/CRm programs,
as well as data-driven marketing
communication programs.
Bob Konsewicz
as director of Strategic Consulting
for maritz, Bob has over 8 years of
experience in the consumer loyalty
feld. He has worked in various CRm
and direct marketing environments
and is an active speaker sharing
strategic concepts with marketers
and business leaders.
Dan Paulson
dan Paulson, President and CEo of
InVision Business development. His
16 years of experience in operations
and marketing continue to produce
extraordinary growth in sales,
proftability and efciencies for many
companies. dan is recognized for
his ability to build teams, develop
leaders, and create top sellers in the
areas of retail, service, fnance and
real estate.
Phil Rubin
CEo & President, rdialogue.
Phil has more than 20 years of
strategic marketing experience
with an emphasis on loyalty and
relationship marketing, integrated
communications, partnership
development, promotions and
program development.
David Williams
david is President and Chief Executive
ofcer of merkle Inc., one of the
nation’s largest and fastest-growing
database marketing agencies.
Williams oversees the delivery of
integrated customer marketing
strategies and solutions to hundreds
of nationally recognized clients
Gallup Consulting
Michael Jais
If you would like to contribute to a future issue of Loyalty Management
please contact Erin Raese at (630) 235-8251 or
Deadline for the March 2010 issue is December 14th!
Mark Johnson
David Williams
10 Loyalty Management™ | Loyalty360.org
Loyalty Management™ | November 2009 11 January 2009 | Loyalty Management 35
399 Knollwood Road White Plains, NY 10603 www.incentivegroup.com
) 20 Years of Winning Campaigns
)Customized Reward Collections
) Single Source Program Management
)Best Practices and Strategic Solutions
) Proprietary Dashboard Platform Delivering an Unmatched Customer Dialogue
)Totally Results Driven Team...due to our CEO having been In Your Seat as CMO
Contact us for a demo of our web based Loyalty Dashboard at 800-416-2090x12
or e-mail us at info@incentivegroup.com
“ When launching a new rewards program
or marketing promotion, what are the best
techniques to get employees informed,
excited and committed to the initiative?”
ultures support what they understand. Communica-
tion of the program, its intention and rationale is
critical. Inclusion: We must create inclusion at the employee
or department level. If appropriate, an incentive for most x
by person or by department creates personal engagement.
Visual Exposure: Visual exposure of program achievements
or trends by contributors works very well. Have the
results posted in diferent places throughout the work
environment. Consistent management communication: If
management is not committed or consistent, the troops will
not follow very long.
rudy Vidal Principal at Vidal Consulting Group
or StubHub, I fnd a grassroots approach that works
best. I garner support with peers and colleagues (even in
other departments) before making any big announcements
or presentations to ensure acceptance and motivation. my
approach is to start with one-on-one conversations without
a lot of slides or fancy presentations. Straight talk backed
up with facts and data can not be refuted. This approach
gives me avenues to troubleshoot ideas ahead of time and
makes sure I’m not leaving proftable opportunities on the
table. To ensure other departments see how these programs
will impact their goals and teams prior to announcements
is crucial to success. It’s my job to promulgate customer
advocacy, to demonstrate the value of these programs and
why they are important to every person at StubHub. It also
creates a sense of anticipation among colleagues so that
when the plan is rolled out the excitement is already built-in!
michael Wilburn Head of Relationship Marketing at
StubHub, Inc.
here is only one way to achieve that—invite them as
well to rewards program. of course—we have to defne
special rules for them (be aware of frauds—employees cause
most of them)… But, there is one very important thing to
remember—a program for our people has to be based on
clear rules and guarantee rewards in reasonable time. What is
also important, in most cases, we will reward our employees
for sales and new “active” member enrollment, but we can
also give points for service quality (i.e. if service KPI’s for
particular store are fne, we can give some points to all staf).
For information I would prefer to use intranet e-learning
trainings + loyalty portal dedicated for employees.
bartosz Demczuk Consulting Director at Comarch
Discussion from the
Loyalty 360 Social Network
(Find us on: loyalty360.org,
Linked In, twitter & Facebook)...
“ To ensure other
departments see how
these programs will
impact their goals and
teams prior to
announcements is
crucial to success.”
—Michael Wilburn,
Head of Relationship Marketing at
StubHub, Inc.
LoYaLTY FoRUm: Your Voice
12 Loyalty Management™ | Loyalty360.org
ommunication to your employees is mission critical
to the success of any new rewards program or
marketing promotion. Employees need to be engaged from
the onset with a clear-cut description of what the goal of the
program/promotion is, what their role is in the process, what
is the business objective, what are the marketing channels
being used, how the program/promotion is structured
and a thorough understanding of the reward process
(everything from how members earn rewards, redeem
rewards and upgrade). an orchestrated kick-of should be
part of your promotion plan in order to raise awareness and
generate excitement. after the launch of the program, the
communication still needs to continue so employees have
a deep understanding of the progress being made towards
reaching the set business goals. The best way to get all of
this done in a timely, cost efective manner (and keep the
information constantly fowing and updated) would be
through an existing employee intranet that exists, email
communications such as an employee e-newsletter and
even creating a special branded email update specifcally
for the rollout of the program and subsequent updates.
Verbal communication also needs to occur in tandem with
all email communication as well. This could be done through
any rollout training that occurs (with documentation of the
program for employees) and updates provided at monthly
meetings, conference calls/status calls (whatever the mode
of communication is traditionally is for your organization) so
that it becomes a regular item on the set agenda.
aileen Stacy-Forker Marketing Director at Smart
Button Associates
hink frequency, relevancy and integration.
Frequency—there is no substitute for spaced repetition.
Relevancy—earn the right to be heard with high value
content. This makes frequency palatable. Integration—say
the same thing with the same look through all possible
touch-points whether it is e-mail, newsletters, snail mail,
websites, face-to-face, etc.
todd Hanson CRP, CPIM, President and Founder,
Catalyst Performance Group, Inc.
est way to get them excited and motivated during an
internal reward program is to have a kick of meeting
or rally where management is involved and you explain
the program and its rewards. Next make sure there is an
online element where you explain the rules, objectives and
goals of the program. This online element should also show
the points they’ve earned and of course there should be a
reward catalog so they can start working toward earning
something they may desire from the catalog. Then start to
promote the reward program with weekly communications.
Performance improvement and employee engagement are
vital for a corporation to succeed. Have a Rewarding day!
arnold Light Arnold Light Consults, Inc
reat them like your customers and sign them up,
engage them—only through positive experiences will
they make your ‘program’ come alive.
Stephen Fraser CRM & Loyalty Marketing Practitioner
ome of our clients have announced the start of a
program by incorporating the info into regular
meetings, news letters, or on company websites; even the
page that is reserved for employees only. Some things I
have seen used to maintain momentum are to use the results
as a training tool but in a positive way. Try posting the results
online, or on a visible board in the lunch/break room. Public
verbal recognition is always welcomed! Some things we ofer
our clients are online reporting tools so that, for instance,
the user can see trended results, or results of other stores for
comparison. That always gives incentive to do better.
Jennifer adams Burket
f it’s possible, it is important to involve employees (or
some of them) in the design of this program. If you are
involved in this creation, it is also part of you.
José Ignacio ruiz (Iñaki) Orange—France Telecom
Group Barcelona, Spain L
“ In most cases, we will reward our employees
for sales and new ‘active’ member enrollment,
but we can also give points for service quality.”
—Bartosz Demczuk, Consulting Director at Comarch
Loyalty Management™ | November 2009 13
A: When considering a loyalty program for a brand that
operates within a franchised infrastructure, there are a few
key items that need to be addressed.
brand buy-in. When developing
your program, you need to
understand how the value
proposition of the program will
support the brand. The program
needs to mirror the overall brand
strategy. If you have sub-brands
within your branding hierarchy,
develop a program under the main
brand to create fuidity and
consistency of the program, and to
infuence the strength of the
program, which will afect how it’s
sold to franchisees. Create a program
that requires all locations participate
whether they’re corporate stores or
franchises. This will help create
greater consistency around the
delivery of the program, which will
create a greater customer experience.
Liability management. Franchises are business owners frst
and foremost, and they need to understand how they beneft
from a loyalty program. Understand the fnancials and
fnancial management of how your program will work, and
how your franchisees will pay into the program and get
reimbursed for their upfront costs. Create a business case
that highlights the RoI, and generates buy-in from a fnancial
viewpoint, including a view from the franchise perspective
as well as the brand perspective. Build equality into the
system in terms of liability management and outline how the
entire system must participate together to avoid program
failure. Lastly, reinforce the reason that franchisees buy into
the organization—they believe in the
brand. Your program is an extension of
the brand and should enhance the
brand and the franchisee’s stake in it.
Compliance, Qa, training. develop
initial and recurrent training around the
program. Build criteria around your
program into overall quality monitoring/
evaluation processes. This will drive
participation and awareness of the
program by franchisees and their
technology landscape. The technology
within your locations is likely to be
diverse or disparate, especially within
your franchised locations. Consider
solutions that solve for permutations in
available technology. Provide property
managers and owners the ability to report at a property level
on both fnancial metrics, as well as employee and customer
turnover. You’ll need to solve for employee turnover when
developing your program. Create automation around
process to make things simple, rather than relying on manual
processes which can be difcult to train employees and
difcult for employees to remember, especially if the
program actions are done infrequently.
LoYaLTY FoRUm: Q&a
ask the Experts
Q: “ We’re looking to launch a loyalty initiative but
approximately 60% of our locations are franchised.
I’ve heard that there are challenges when valuing points
and managing redemption when dealing with franchisee’s.
What are the best practices that I should be considering?”
—Marti Beller
President, Afnion Group
reinforce the reason that
franchisees buy into the
believe in the brand.
14 Loyalty Management™ | Loyalty360.org
Q: Do you have a question for our panel of experts?
Write us at: mailbag@Loyaltymanagement.com
A: If the franchises will be funding the
program with fees for example, typically they will
want to understand what the fees are based on
and how they are being spent/used to support
the program. If there are any competitive
benchmarks within your industry, it adds
credibility and helps to gain buy in on how you
are structuring the program. We found that
consulting our franchisees during development
was very helpful in achieving buy in on the
overall value proposition as well. This included
reviewing fnancial projections with them and
incorporating their feedback on operational
processes we were developing. This is critical insight to have
so that what you build is user friendly for them on site—it
has a signifcant impact on their engagement.
From a redemption perspective, acceptance is helped by
reimbursing your franchisee fair value for what they are
providing to the member and then making sure there are
standards around compliance that are monitored. This
ensures that delivery to the consumer is consistent which we
all know is very important. also, make the process for
reimbursement as simple and track-able as possible so that it
—Jill Noblett
Executive Consultant
Formerly of Loyalty & Direct Marketing
Wyndham Hotel Group
A: The success or failure of any
loyalty program is predicated on both
the value proposition and the
program’s design and execution. From
the franchisee’s perspective, the value
proposition is based on what return
they will get for their investment.
When deploying a program through
the franchise channel, there has to be a set cost to the
franchisee for participation within the program. With strong
program execution it makes sense that the RoI to the
franchisee will be higher. The greater the return on
investment, the more the cost of the loyalty currency
becomes redundant. Simply put, the more value the
franchisor can attach to cost of the loyalty currency, and the
better the results, the more a franchisee will be willing to
pay. That is where design and execution comes into play. a
well planned out program should remove most, if not all, of
the administrative burden from the franchisee (i.e. web
design and maintenance, customer service, warehousing &
fulfllment, order management, data mining, communication,
marketing, merchandising, etc…). a well executed program
will demonstrate an efectiveness to not only drive
incremental business to the franchisee, but also provide
a well planned out program
should remove most, if not all,
of the administrative burden
from the franchisee
valuable insights into
their customer base
and giving them the
beneft of a more
efective marketing
spend and ongoing
communications. In
summary, the buy in
to the program has to
make sense and the return on the investment has to be clear
and attainable. The more freedom the franchisee has to run
the day to day business, and the more tools a loyalty program
can ofer them to help better their business, the more
supportive they will be of the program.
Share positive results
as soon as you are able
to establish that the
program is working
and driving retention
and incremental
—Bruce Silcof
Fairlane Group
will be clear to the
franchisee how to
reconcile the centralized
records with his site
records. most impor-
tantly, share positive results as soon as you are able to
establish that the program is working and driving retention
and incremental revenue.
Loyalty Management™ | November 2009 15
LoYaLTY FoRUm: Behind the Brand/People
phil rubin
CEO & President, rDialogue
you ran the 2008 Chicago marathon (congratulations), what are you training for now?
Thanks. Now I’m thinking about a new “Rock ‘N Roll” marathon in New orleans on February
28th of 2010. I’ve started riding a road bike and am also looking to do my frst triathlon.
Where do you fnd the time?
during the week I am up at 5am to get in my run
and still see my kids before school. Basically, I give
up sleep!
Which talent would you most like to have?
To be able to take of from the foul line and slam
dunk a basketball (on a 10 foot goal).
If you were not doing what you do today,
how would you be spending your time?
Probably trying to fgure out what to do (it’s
depressing to think about not doing this!). and
then probably writing and/or teaching.
Which book(s)are you currently recommending?
I’m reading The Rockefeller Habits and Team of Rivals by doris Kearns goodwin (about
abraham Lincoln).
If you could choose your last meal, what would it be?
Preferably something that goes with a perfect Bordeaux.
Phil has 20 years of strategic marketing experience
with an emphasis on loyalty and relationship
marketing, integrated communications, partnership
development, promotions and program development.
He founded the loyalty practice at Loyaltyworks and
led the spin-of and formation of rDialogue. Phil is
also a regular contributor to Loyalty Management; his
latest piece, “Loyalty Marketing Beyond Programs,”
can be found on page 50.
Phil and his brother at the Chicago Marathon
16 Loyalty Management™ | Loyalty360.org
What do you consider your
greatest achievement?
Having a great wife and two kids that
continually amaze (and tolerate) me and
make me very proud.
Beyond that, running a
marathon and having
an adult bar mitzvah
were great moments.
Professionally, it is very
gratifying to see the team
we have assembled at
rdialogue as well as the
clients we’ve been able to
work with.
Which person has made the
most impact in your life?
my father. He taught me the value of doing
what you love and loving what you do; and
of hard work, integrity and respect.
Superbowl prediction?
For the frst time in the history of the
franchise, the New orleans Saints will take
the Lombardi trophy. drew Brees will be the
mVP and New orleans will stay up partying
for a week straight.
please tell us about your last
ah-ha customer experience.
This is the hardest question to answer
because those kinds of experiences are few
and far between. It’s probably with Suunto
(a division of Precor), who makes high
performance watches including those for
training (running, cycling). I had a part break
and they sent me a new part without delay
or charge. It was easy and, sadly, better than
I would have expected. I also just bought a
new bag from Timbuk2 and fnd them always
delivering a great customer experience.
What’s your customer
engagement philosophy?
rdialogue = Relevant dialogue. If you
want to engage your customers, create a
meaningful value proposition and deliver it
at every customer touch point.
What can we expect from rDialogue in 2010?
We have several signifcant client programs
launching and some very interesting new
client relationships that should also lead to
some new loyalty initiatives in the market
next year. our plan is to continue focusing
on our core strengths (loyalty
strategy and program design)
and likewise continuing to
work with a diverse set of
clients in diferent industries.
There is so much opportunity
out there (in the market) to
help companies better serve
and build relationships with
Word of advice for a
novice loyalty marketer:
Learn how to think like a
customer, live your brand and
be economically vigilant like a CFo.
Phil and daughter Jenna
“ my father taught me the value of doing
what you love and loving what you do;
and of hard work, integrity and respect.”
Phil with his wife Debbie
Phil and the rDialogue crew
Loyalty Management™ | November 2009 17
maurice Johnson
GE Money
When not working, what’s your favorite
way to spend your free time?
Visiting vintage resale shops. I love looking for
clothes from the past, particularly the 60’s. Finding
those funky outfits (pants, shirts, sweaters) that
they just don’t make anymore and making it fit
into today’s wardrobe is cool!
Which sports team is your favorite?
I don’t really have the time to watch sports, but
since I am from Chicago, I’ll root for any team from
there regardless of the sport or skill.. I am more of a
big event person…. olympics, super bowl etc…
Which book(s) have you been recommending?
I generally go for the internet content or magazines.
But, I have been reading this book on Emotional
Intelligence. It’s really about cracking the code on
people skills and communication. Smarts are a
given when you get to a certain level, but the ability
to motivate people , empathy, personality, and
charm isn’t as easy for everyone.
If you weren’t working for Ge money,
what would your ideal job be?
Well I love what I do, this would be purely
imagination at work, but a teacher or counselor
who would develop tools to customize and improve
learning opportunities to educate and support
What do you consider your
greatest accomplishment?
Professionally, I’d like to think it hasn’t happened
yet… but growing a business from practically
nothing to over $1.5B is pretty good. Personally,
my time in the US army. anyone that
knows me would say that being in such a strict
environment isn’t me, but I was much younger then
and appreciated the time to grow and mature.
Which living person do you most admire?
Not one person in particular, but all those people
that stood up for civil rights when physical or
fnancial harm was the response. Even being
ostracized by your community or family for the
rights of others, takes a great deal of courage… no
matter the race, gender, or sexual orientation of the
Which talent would you most like to have?
The ability to sing, not an ordinary voice
like many of today’s entertainers, but like a
Stevie Wonder, Boz Scaggs or Sting.
What’s your personal motto?
Limit pity parties to 15 minutes… There is no sense
in feeling sorry for yourself when things don’t go as
planned… move on already.
What have been your biggest challenges in 2009?
What can we expect from Ge money in 2010?
I think 2009 is still shaping 2010 for most
companies. It brought a more informed and
vocal consumer to the forefront. Consumers were
questioning the true benefts of products and the
value. We will continue to use our voice of the
customer to make/sustain products that have value
for our customers.
Word of advice for a novice loyalty marketer:
• Know who is your customer
• Talk to your customer
• gather a variety of options/solutions
• Test/Pilot
• Talk to the customer again after the results
• Test again
• develop a launch/ongoing multi-channel strategy
• develop a contingency/exit strategy
Maurice is considered an expert in Financial Services Marketing,
Lifecycle Marketing Strategy, Campaign Execution, Data
Segmentation Strategy Development and Strategic Project
Management. With over 10 years of consumer marketing
experience, he has worked with top brands such as: The Home
Depot, Lowes, Ethan Allen, Lenscrafters, Pearle Vision, Whitehall
Jewelers, Bernina ,and Ultra Diamonds.
LoYaLTY FoRUm: Behind the Brand/People
18 Loyalty Management™ | Loyalty360.org
Loyalty Management™ | November 2009 19
The last puzzle piece
in Customer Relationship Management
For more information visit: www.us.comarch.com
Comarch Loyalty Management
Loyalty | Business Intelligence | Customer Experience
LoYaLTY FoRUm: Books
masterminds Unleashed:
by Nielsen, Greisen, Scholz, Smith, Paulson, Lunquist, Boykin, Kolster
Tired of just surviving when you would rather
be thriving? If you are ready to ramp up your
results and learn to sell without having to sell,
this book is for you.
The Selling for Geniuses provides in-depth knowledge and insight to business owners,
executives, entrepreneur and others who need to sell products and services efectively and
systematically – to any audience. This “how to” book’s techniques and concepts can help
anyone become a “genius at selling” without having to “sell.”
Chapters and individual authors include:
Sales is Not a Four-Letter Word—Susan Nielsen, Leaderscapes Inc.
the Four point System—Lois greisen, Eagle assoc.
Selling is Not accidental—Chip Scholz, Scholz & assoc.
transformational Networking—getting more Business in the Best Possible Way – david Emery Smith, Performance
dynamics Systems
micro-marketing: big results with a Small budget—dan Paulson, InVision Business development
Sell What the Client is buying—Tracy Lunquist, Working magic
Winning Formulas for Sales presentations—andre Boykin, CaPITaL IdEa
be true to yourself: you Don’t Have to Sell to Sell—Rick Kolster, Peak Performance development.
This book is called Selling for Geniuses for a reason. You are a genius, and your business success will refect that if you sell the
right way. It’s easier than you think, and the tools you need to make it happen are in this book!
bUyoLoGy: truth and Lies about Why We buy
by Martin Lindstrom
october 2008 | Broadway Business
How much do we know about why we buy? What truly infuences our decisions in today’s
message-cluttered world? an eye-grabbing advertisement, a catchy slogan, an infectious jingle?
or do our buying decisions take place below the surface, so deep within our subconscious minds,
we’re barely aware of them?
In BUYOLOGY, Lindstrom presents
the astonishing fndings from his
groundbreaking, three-year, seven-million-
dollar neuromarketing study, a cutting-
edge experiment that peered inside the
brains of 2,000 volunteers from all around
the world as they encountered various ads,
logos, commercials, brands, and products.
His startling results shatter much of what
we have long believed about what seduces our interest and drives us to buy.
Filled with entertaining inside stories about how we respond to such well-known brands as marlboro, Nokia, Calvin
Klein, Ford, and american Idol, BUYOLOGY is a fascinating and shocking journey into the mind of today’s consumer that will
captivate anyone who’s been seduced—or turned of—by marketers’ relentless attempts to win our loyalty, our money,
and our minds. Includes a foreword by Paco Underhill.
Loyalty reads
BUYOLOGY is a fascinating
and shocking journey
into the mind of today’s
20 Loyalty Management™ | Loyalty360.org
poWer oF 2:
How to make the most of
your partnerships at Work and in Life
by Rodd Wagner & Gale Muller
November 2009 | gallup Press
many of the greatest accomplishments can be reached only by two people working together.
Tenzing and Hillary were the frst to scale mt. Everest. malone and Stockton were the key to each
other’s success on the basketball court. Eisner was never as efective at disney without Wells.
But while some partnerships reach
great heights, others fall short. Why do
some people click while others clash?
What do great pairs have in common?
and what can you learn from the most
powerful partnerships to strengthen
collaboration in your work and personal life?
Based on gallup’s groundbreaking research, Power of 2
details the eight elements that prepare partners to succeed in their most important endeavors. Rodd Wagner, coauthor of
the bestseller 12: The Elements of Great Managing, and gallup World Poll leader dr. gale muller share the science and the
secrets of successful collaboration.
mixing key insights about human nature, feld-tested discoveries, and inspiring stories of partnerships that reached the
pinnacle, Power of 2 will change the way you think about working with someone else.
➥Read an excerpt from power of 2 on the following pages.
CreatING maGIC:
10 Common Sense Leadership Strategies
from a Life at Disney
by Lee Cockerell
october 2008 | Broadway Business
“It’s not the magic that makes it
work; it’s the way we work that
makes it magic.”
The secret for creating “magic” in our careers, our
organizations, and our lives is simple: outstanding
leadership—the kind that inspires employees, delights customers, and achieves
extraordinary business results.
No one knows more about this kind of leadership than Lee Cockerell, the man who ran
Walt disney World® Resort operations for over a decade. and in Creating magic, he shares
the leadership principles that not only guided his own journey from a poor farm boy in oklahoma to the head of operations
for a multibillion dollar enterprise, but that also soon came to form the cultural bedrock of the world’s number one vacation
destination. But as Lee demonstrates, great leadership isn’t about mastering impossibly complex management theories. We can
all become outstanding leaders by following the ten practical, common sense strategies outlined in this remarkable book. as
straightforward as they are profound, these leadership lessons include:
• Everyone is important.
• make your people your brand.
• Burn the free fuel: appreciation, recognition, and encouragement.
• give people a purpose, not just a job.
Combining surprising business wisdom with insightful and entertaining stories from Lee’s four decades on the front lines
of some of the world’s best-run companies, Creating magic shows all of us—from small business owners to managers at every
level—how to become better leaders by infusing quality, character, courage, enthusiasm, and integrity into our workplace and
into our lives.
Hear from Lee Cockerell,
the Keynote speaker at the
Engagement Expo in Chicago this
November. See pg. 59 for details.
POwer Of 2 will change
the way you think about
working with someone else.
Loyalty Management™ | November 2009 21
FACE IT. Your partnerships could use some help.
If you are like most people, you’ve had some good ones. You may even have a few of them now. Yet chances
are you don’t make the most of the collaborative opportunities all around you. You are surrounded by potential
partners — colleagues, neighbors, friends, fellow volunteers. You know many people and they know you. But,
powerful partnerships — the kind in which you and a collaborator regularly work together, reach goals together you
never could have accomplished apart, and gain the deep satisfaction only such an alliance can bring — are elusive.
You almost certainly spend much of your time working alone on projects for which you alone are responsible,
feeling the full pressure of having to do the whole thing yourself, even the aspects of it that are not your
strength. And when, somehow, you struggle through and complete the job, you turn it in, perhaps get a little
recognition from your boss, and move on to the next requirement, which you will also do largely by yourself.
You are not alone in having this problem. Somewhere we got of track. Somehow our televisions, e-mail, headphones,
texting, car radios, and personal computers trick our brains into thinking we are with other people, interacting, when
we are, in fact, working in isolation. We are crowded in ofces, airports, subways, frequently within arm’s reach of
dozens of people, but frequently on a very lonely pursuit. Wired? Yes. Networked? Yes. Collaborating? Not much.
Humans are made for collaborating. We like music because the songs of our deepest ancestors helped
them work together. Our blood pressure rises and falls depending on who is nearby. Te amount we eat
depends a lot on the amount eaten by those with whom we dine. We laugh, not so much because something
is funny, but because laughter is a kind of social glue, making a person 30 times more likely to laugh when
he’s with someone else than when he is alone. Isolation can be as bad for a person’s health as smoking.
When you watch someone, a network of “mirror neurons” in your brain rehearses what he is doing, giving
you empathy, the ability to see things from his perspective. If one person in a conversation uses a certain
word — calls an object’s color “turquoise,” for example — the other person will probably use the same word
rather than a synonym such as “teal.” We unconsciously adjust our grammar and word choices to match what
the other person already said. It’s a subconscious way of signaling, “I agree with you.” Tis mimicry, one study
found, “is automatic and refects the fact that humans are designed for dialogue rather than monologue.”
A person asked to lift a basket of potatoes with someone else’s help, before she touches the basket, will perceive
its weight to be lower than someone asked to lift the basket by herself. Having a collaborator changes our
perception of reality. We see the world diferently through partnerships. “We plan our actions guided partly by
what we think we can achieve with others,” wrote one of the researchers who conducted the basket experiment.
In a world that emphasizes individual achievement — the successful CEO, the MVP, the star — we
often forget that everyone is descended from millions of people who survived because they didn’t go it
alone. In the thousands of years that molded human nature, our ancestors required not only individual wits
and strength, but also the ability to collaborate — to discern, trust, sacrifce, empathize, and intelligently
combine their eforts with someone else. “Te evolution of human beings has consisted largely of adaptation
to one another,” wrote one commentator. Hunters who worked together were more likely to return with
a kill. Two men who agreed to help each other improved their odds of fending of mutual enemies.
Yet over time, humans created so many conveniences that we now can survive without each other. We live
indoors rather than in the elements. We can eat microwavable dinners rather than hauling in a fsh net with
someone else. We no longer tell real stories around the fre; we turn on the TV and watch familiar strangers
Made for Collaborating
Excerptedfrom Power of 2: How to Make the Most of Your Partnerships at Work and in Life
© Copyright 2009, Gallup, Inc.
LoYaLTY FoRUm: Books
22 Loyalty Management™ | Loyalty360.org
pretend. Cubicles and private ofces were bad enough; at least we would pass each other in the hall or gather
for lunch. Now we can “telecommute,” staying in our home ofces and emailing the work we did by ourselves.
Hiring managers are starting to report that the next generation “is so used to texting they don’t even know how
to carry on a basic conversation with other people.” We are collaborative creatures in a do-it-yourself world.
Although it will no longer kill you, this working isolation has its costs. Te more good partnerships in your life,
the more likely you are to say you “experienced the feeling of enjoyment a lot of the day yesterday,” that you recently
“learned something interesting,” and that you’ve been doing a lot of smiling and laughing — all key measures of
your happiness. Even one strong partnership markedly increases your well-being over those who have none.
In the workplace, those with just one collaborative relationship are 29 percent more likely to say they will
stay with their company for the next year and 42 percent more likely to intend to remain with their current
employer for their entire career than those with no partnerships. Tose who feel well teamed with one or more
colleagues are substantially more engaged at work; they generate higher customer scores, safety, retention,
creativity, productivity, and proftability for the business, and a greater level of happiness for themselves.
Yet for all of our collaborative instincts, most of us today form far fewer strong partnerships than we could, or
than we should. Gallup’s research reveals that the median number of work partnerships for an American employee is
just four, but even that low number hides a sadder truth. Te small proportion of people who have dozens of close
teammates infate the statistic. Asked how many strong alliances they have, most people say they have just a few, even
though the highest levels of happiness and employee engagement kick in when a person has fve to 10 good alliances.
Perhaps the saddest statistic is that the most common number of work partnerships, the answer given by 16 perent
of the population, is zero. Asked if they have ever had a great partnership at work, one-quarter of employees say no.
“Te sad thing is that I’ve never had a successful partnership,” one businessperson told us. “I’ve been
thrown into the leadership role in every single ‘group project’ or organized group outside or inside of
schooling. Every time, I have become the leader, ended up doing the majority of the work, and gotten the
majority of the credit. I’ve learned — again, sadly — that I’m better at taking care of my responsibilities
myself and not depending on others for creative success in my personal, artistic, or professional futures.”
“In thinking through my best and worst work partnerships,” said one manager at a medical device
manufacturer, “I keep seeing more experiences in the ‘worst’ column and a sparsely populated ‘best’ section.”
At the highest corporate levels, fying solo can bring consequences on all the employees and on
shareholders. As the two of us began circulating Gallup’s partnership discoveries inside some of the
world’s most prominent companies, we were surprised at how readily an acrimonious relationship
at the top came to mind among those who have to tiptoe around the landmines.
“Grace and Randy hate each other,” said one midlevel executive. “Tey say all the right things in meetings,
but that’s just for show. Tey have separate empires. You’re either on Grace’s team or on Randy’s team.”
Whether the rift is between the chief operating ofcer and the chief fnancial ofcer or between the top
marketing executive and the head of sales, such collaborative failures are never private, or trivial for the rest
of the organization. Companies that should be concentrating on the battle with the competition are instead
consuming their resources waging elaborate civil wars between the camps of Executive A and Executive B.
Equally troublesome is the concentration of power in the hands of a lone leader, whose human foibles
cannot help but be magnifed under the pressure of having to be too many things to too many people.
“America’s most serious corporate governance problem is the Imperial CEO — a leader who is both chairman
of the company’s board of directors as well as its chief executive ofcer,” wrote former Northwest Airlines
Chairman Gary Wilson, who served on the boards of Yahoo! and Disney. “Such a CEO can dominate
his board and is accountable to no one.” Companies need, he argued, not one at the top, but two.
Seeing these patterns at numerous client companies, the two of us teamed up to lead what became a fve-year
partnership to crack the code on collaboration to discover what elements are central for two people becoming
a successful team. We found the answers in some fascinating areas such as the way monkeys react when
working in pairs, in a computerized friend-or-foe contest that bafed the experts, in studies of revenge, and in
“irrational” acts of self-sacrifce. We also launched waves of original Gallup research to identify the dimensions
of partnership and determine how to best measure them. As we studied the stories of successful partners, famous
and obscure, these aspects came into stark relief. Te answers were widely scattered, but when combined, they
make a cohesive set of insights you can use to make the most of your partnerships at work and in life.
Loyalty Management™ | November 2009 23
E KEEP HEARING THAT traditional marketing is
dead, that the social and mobile media, communities/
forums, interactive communication, and “engagement
strategies” are creating a “voice of the customer” movement.
Engagement is the new buzzword that we keep hearing. Yet what is
it? Is it the replacement for satisfaction, or is it the new loyalty or is
it both; or something completely new? We hear that “if you do not
engage your customers, your clients, your employees, and those
who partake in your brand that you are doomed to fail.”
Yet the more that I speak with marketing executives
across industries; in a time where there are a
record number of “experts” and “visionaries,”
there seems to be more questions now than
ever before.
Te more I hear about Engagement,
it all seems to me another tool to create,
augment and sustain loyalty. Do you
want “engaged” clients or loyal ones,
do you want engaged employees that
as soon as the next (better) opportunity
comes along they jump at the chance
and leave (no loyalty)? Do you want
engaged fans that as soon as their team goes
3-13 (like my Denver Broncos are going to
this season) they switch teams (no loyalty)? I
would argue no.
Engagement is a precursor and eventual complement
to loyalty, the temporal part of the process by which you can create
a long term interactive dialogue which customer satisfaction and
Loyalty can be achieved. Te ability to efectively understand the
behaviors, interests and perceptions of anyone who touches your
brand, whether that is your customers, your clients, your employ-
ees or your brand participants is the key. Being able to use multiple
communication media and technologies and the resultant data to
market to your stakeholders efectively is also equally important.
Do we want our spouses to be engaged or loyal? (I hope my wife
is loyal). I know there are times that I am not as “engaged” with
my family as my wife probably wants me too, but as I stepped in
front of a car careening through our neighborhood with kids (mine
and others) riding their bikes last week, you cannot question my
loyalty. Isn’t that what employers, brands, and companies want;
someone to step in front of the proverbial “bus” for their product?
Tose are the true brand advocates, the brand champions all are
looking for.
HE GOAL for Loyalty 360 was to
create a forum (yes a community) where
thought leaders and those who had a
question or a challenge could interact to get
a “pulse” on the loyalty, incentive/reward
and yes, the “engagement marketing”
arenas. We continue to see the market
looking for guidance. New buzzwords
such as “engagement,” “marketing 3.0”,
“social media,” and “communities” seem
to be creating more questions than they
have answered. It seems that as soon as we
begin to understand email, blogs, CRM,
“versioned” direct mail, customer centric
and integrated marketing communication
things change. What was once MySpace is now
As soon as we begin to grasp all of the technologies of
yesterday, we are now faced with Twitter, Facebook, communities
(replacing blogs), e-coupons, and mobile media/commerce, print
and email communications that use behavioral, loyalty, CRM and
other opt in database applications to create customize communica-
tions such as variable data print, data drive email communications
and PURL’s, not to mention all of the opportunity for mobile and
social media. Tese new mediums are such a small piece of the
loyalty communication’s landscape, yet we have experts that claim
Engagement or Loyalty,
Does it matter?
by Mark Johnson – Loyalty 360
What is driving the “PULSE” through Loyalty marketing? Is it Engagement?
Is it Community based interaction? Is it mobile media? What is it and why
do so many seem confused, asking questions, and hesitant to implement
these new strategies and technologies?
Being able to
use multiple
communication media
and technologies and
the resultant data
to market to your
stakeholders efectively
is the key.
24 Loyalty Management™ | Loyalty360.org
they know how to efectively administer
these programs. Te new pundits tell us
that if you do not move to the new mea-
sureable forms of media and integrated
marketing communication your organi-
zation will not survive. However, is all of
this constant change with the vanguard and
purported vanguard in media perorating to us
on what we should and should not do benefcial
or confusing? I think of “Te Paradox of Choice,” by
Barry Schwartz and suggest all of this choice and all of this
chance may be causing some “paralysis by analysis.”
We know that as marketing has entered the 21st Century, a sig-
nifcant change is taking place in the way companies interact with
customers, suppliers, end users and their employees. Marketing, in
the traditional view was thought of as a simple exchange process
(the four P’s), if you understood them and used mass/interrup-
tion type marketing you would be able to introduce, establish and
sustain your brand; this was often referred to as transaction based
marketing. Yet now, we are in the “new world” of the empower
populace, we are replacing (or attempting to) replace traditional
media with a new approach referred to as relational marketing. Te
basis being that you use any, and all information you have about
your customers, your channel, your employees to make more in-
formed, timely and relevant communication decisions/interactions
in the form, channel and via the method they expect. Is that loyalty
or engagement or both?
strategies focused on attracting
consumers through push
marketing, using any and all media to
achieve “eyeballs on the brand.” Now
we hear that that ‘Engagement is the
New loyalty,” “Small is the New Big” and
“Web 3.0.” are the keys to success. If you
use engagement the way that Disney does, that
everyone from each cast member to the CEO has a
place and that place has to be respected for the organization,
merchant or employer to survive and prosper, then we are all better
for it. Tat is engagement, but it creates the most sublime form of
loyalty. We read articles that the millennials do not want to be part
of loyalty programs because they do not trust them, yet they have
the highest measurable rates of same store purchases (Loyalty?).
We are told that people do not trust loyalty programs, but 94%
of all US households belong to at least one program. Loyalty
360 will continue to address these questions and help you walk
through what can be a truly confusing era. We will give you the
opportunity to ask these questions, to interact with intra and cross
industry experts. We know that this is the most dynamic period in
history. Loyalty 360 will work to provide you the unbiased insight,
the answers, the matrices, and the case studies and yes the forum
to increase both loyalty and engagement, yet if a new buzzword
should surface we will address that too. We look forward to hearing
from you. L
We know that a
signifcant change is
taking place in the way
companies interact with
customers, suppliers,
end users and their
The more I hear about Engagement,
it all seems to me another tool to
create, augment and sustain loyalty.
do you want “engaged” clients or
loyal ones?
Loyalty Management™ | November 2009 25
I’m not going to waste my time telling you what
you should be doing.
Capturing data, measuring unique transactions, acknowledging
loyal & valued customers, treating customers diferently accord-
ing to their value, communicating with
them in a relevant manner, analyzing
your results, enhancing your approach,
are all great strategies for making more
Here’s the truth. You either believe
in a measured, consistent approach to
customer engagement and its ability to
drive incremental profts—or you don’t.
Either way is okay. Really.
Because in the end, why does it really
matter what your customers think? Yes
I said it. Customer desires, afnity for
the brand and preferences are rendered
irrelevant to most marketers. Blanket
the marketplace with cool creative print
ads and media. Just be sure to use kids,
animals or models to sell your products
or services. Otherwise, don’t waste your
money. If you prefer direct mail, then
be sure to shower your purchased lists
with your best ofer—usually some form
of price discount of of your premium
product. Hit it hard and often and you’ll see some sort of results.
And, the beautiful thing is you’ll get to do it again with a new piece
of test creative and new list of anonymous potential new customers.
Covering the market with a one-size-fts-all approach really isn’t
all bad. For example, I had the pleasure of attending a wonder-
ful university to obtain my bachelors degree. While there I met
a fellow “intellectual” who over time became an acquaintance.
Te most interesting thing about him is his belief in a singular
approach with women. “Mark” would proposition each girl he
met in a social setting—between classes, at parties, while attending
sporting events—with the same ofer: “Do you want to go on a
date with me?” Tis is no joke. Although
I didn’t support it, this was a strategy he
frmly believed in and although he was
rejected most every time—there were
positive responses to his one question
Some in the loyalty marketing space
believe that you can determine a cus-
tomer’s loyalty with a single question:
How likely are you to recommend? Mark
believed his one question approach was
also a true measure of intent and afn-
ity for him. Sometimes it worked in his
favor; however, most times it did not.
Traditional marketing is much like
the one-size-fts-all approach. Pushing
a brand or product by highlighting the
same features and benefts to everyone
doesn’t take into consideration the vari-
able buying-decision criteria of diferent
segments of customers. Without under-
standing the diferences, value drivers
and intent of the individual targets,
traditional marketing eforts are not motivating to the vast major-
ity of the targeted audience. Terefore, some new customers may
be of value and many will not be worth the acquisition expense.
And yes, a certain number of new customers can be claimed and
the campaign may seem initially successful, but many of the newly
acquired customers won’t prove to be of signifcant lifetime value
to the acquiring organization.
you either believe
in a measured,
consistent approach
to customer
engagement and
its ability to drive
incremental profts,
or you don’t.
either way is okay.
Why Should We Care
What They Think?
by Carlos Dunlap – Kobie Marketing
26 Loyalty Management™ | Loyalty360.org
few test variations—and hopefully a control group—to make
us feel better about the excessive failure rates. Sponsorships
continue to be an expensive proposition, without a measured beneft.
And then there’s mass advertising.
Creative TV commercials win awards,
yet they don’t necessarily move
product. And similar to sponsorships,
mass advertising is more about ego
than driving business success or
measurement. How many times have
we seen companies drop millions of
dollars on ultra creative Super Bowl
ads, only to be out of business in a
matter of months?
I’m not anti Direct Markeitng.
I’m a frm believer in a consistent,
measured approach to marketing,
acquisition and ongoing commu-
nications. Most importantly, your
ability to measure the appeal and re-
sponses to all your communications
may make all the diference in your
marketing eforts. Understanding
and predicting your response rates
and the correlating fnancial benefts
will help you design and justify your
campaign prior to its execution.
In fact, a 2008 study by Caslon & Company provides a founda-
tion for predicting your response rates based on your customer
strategy, combined with the incremental benefts of personalized
communications. Upon review of their fndings it appears that per-
sonalized communications will garner you on average a 50% higher
response rate, regardless of your knowledge of your customers or
their corresponding attitude towards your brand.
Although I stated I wouldn’t talk about the best way to implement
a traditional loyalty program, you might be one of those who do care
about what customers think about your brand or your clients. Tose
of us in this discipline have a unique oppor-
tunity to make a measurable and therefore
justifable diference. As loyalty practitioners,
we must do the right things. A trusted and
well-rounded approach requires us to focus
on building loyalty strategies for the enter-
prise, delivering a customer experience that
engages, and making every decision based
on the economic drivers of the program. It’s
this measurable, justifable component of our
trade that makes our services appealing and
so valuable. Prove your worth and ensure
that your clients view their customer loyalty
initiative as an investment and proft center,
rather than a cost bucket; and you’ll be a hero
in their organization, as well as your own.
In addition to “doing the right things,”
maybe it’s also time to reconsider the need
to track and measure to the “nth” degree,
provide hundreds of redemptions options
and accumulate millions of dollars in points
liability. Maybe, just maybe, we don’t have to
do those things in such a scientifc, statistical
manner to make a real diference.
HAT IF we designed loyalty programs that are not
branded and customer facing? We call these little “l”
loyalty programs. By having our clients utilize an internal
system that keeps track of their customers’ value based on actual
transactional behaviors may not tell everything, but it will provide
pushing a brand
or product by
highlighting the
same features and
benefts to everyone
doesn’t take into
consideration the
variable buying-
decision criteria of
diferent segments of
Loyalty Management™ | November 2009 27
Continued on next page
you with enough information to provide a good experience for
returning customers, including the ability to reward their loyal
patronage with surprise & delight gifts. For customers who
make several transactions of a certain
dollar, why couldn’t a company
reward that loyal customer with a
surprise reward such as: a sample of
a premium product or a temporary
subscription to a service they don’t
already purchase. Of course there’s
also the options of a free gift or
discount of the next transaction,
but be careful since this may dilute
the brand value.
OU DON’T have to
know what customers are
thinking in order to use
your marketing dollars more wisely.
Recently, I received an invitation
from a prominent organization
to “send my son to Australia to
participate in a Foreign exchange
opportunity.” While on the surface
this seemed like an interesting enriching opportunity, I
struggled with the ofer. I have two lovely daughters and no
son—to my knowledge. So this well-meaning organization,
that features the names of most of the presidents of the past 4
decades, doesn’t have to know everything about me. However,
they should at least know the basics before wasting their money
and my time with such a meaningless ofer.
Tere are some companies that have the inherent ability to
know their customers and personalize customer experiences on
a real-time basis. A couple of years ago I had the opportunity
to consult with one of the world’s leading brands, who boasts
a network of more than 6,000 well-branded franchisees.
Unfortunately, not much of the customer data made its way
up to the parent company, and the franchisees didn’t have
the ability, sophistication or know-how to provide rewarding
experiences to their best customers.
However, what those franchisees did have, by the nature of
the services provided, was a personal relationship with their best
and most frequent customers. Te designed loyalty solution
called for critical alignment between the parent company
and franchisee network. Teir loyalty strategy
allowed the parent company to
fund the overall
program concept with the aid of minimal franchisee fees, while
the franchisees were given meaningful tools to customize and
deliver an appropriate, consistent and “rewardable” experi-
ence based on measurable customer
value. Knowing what each customer
is thinking is not the foundation of
a good loyalty program. Treating
customers according to the profts
they generate, or can generate, is the
ultimate goal and the key to reten-
tion and sustained fnancial benefts.
Keeping customers loyal takes
more than a few promotional strate-
gies and free samples. Clients must
galvanize and align their organiza-
tions around a true commitment
to delivering on consistent and
good experiences for their custom-
ers. Employees function as internal
advocates, who continually breathe
life and passion into a successful cus-
tomer loyalty strategy. Engaged and
satisfed employees, combined with
good products, services and value, ultimately lead to engaged,
satisfed, loyal and proftable customers.
S AN INDUSTRY, we are at a critical stage in
our evolution. With the innovations in technology
that allow for more efcient behavior tracking, our
industry has no more excuses for not “doing it right”—
whether the loyalty program has a foundation of research,
points and analytics or if it simply provides a good experience
to every customer, with an occasional treat or ofer. Either
strategy can work, but a combination of a “science and
art” approach might be best. If you want to have retention
and ongoing earnings, then recognize proftable customer
behaviors and reward them accordingly. Because it’s not their
attitudes or intentions, but instead their actual transactions,
that result in a positive P&L. L
Knowing what each
customer is thinking is not
the foundation of a good
loyalty program. treating
customers according to
the profts they generate,
or can generate, is the
ultimate goal and the key
to retention and sustained
fnancial benefts.



why should we care what they think? (continued)
28 Loyalty Management™ | Loyalty360.org
Loyalty Management™ | November 2009 29
knowl edge. del i ver y. resul ts.
how mot i vat i ng.
Let us motivate you.
At A nion Loyalty Group (ALG), we oer ways to drive protable behaviors among your customers using any means possible:
points, miles, rewards, incentives, enhancements.
Our years of experience ensure we acknowledge, understand and anticipate marketplace and consumer trends, helping us
design programs to motivate your customers’ behavior. Some of the most recognizable brands have employed our services
to develop loyalty solutions to meet their protability goals. We believe loyalty should be a business strategy with a positive
ROI. And our proven loyalty solutions repeatedly result in protability for our clients.
Visit us at www.a nionloyalty.com/loyalty or call 800.622.4863 to learn more about our loyalty
marketing services and how we can help create loyalty between you and your customers.
Loyalty Management ad.indd 1 1/5/2009 9:59:36 AM
I’m Happy to be Here!
How Engaged Employees
Improve Your Bottom Line
(And Make it a Great Place to Work!)
by Dan Paulson – InVision Business Development
30 Loyalty Management™ | Loyalty360.org
Continued on next page
Just another Day at
the restaurant
Recently I walked into a local fast food restaurant. It was shortly
after noon and the place was fairly quiet after the lunch rush.
Tere were a few people in line as I patiently waited my turn.
Te environment was as you’d expect, busy with the movement of
people taking orders, cleaning, and making food. Once I reached
the counter, I greeted the cashier. No response. Just a blank stare
as she waited for me to tell her what I wanted. I ordered one of the
value meals to go since I was on my way to a client and decided it
would be best to eat on the road (i.e. the tables hadn’t been cleaned
yet). After telling her what I wanted, and that it was to go, she said
about the only words I would hear from her in our exchange. “Will
that be to go?” I confrmed (again) that yes it would. She told me
what I owed. I paid the balance and stepped aside to wait for my
Tis is a common experience we can relate to as consumers. It is
also the stereotypical example of a lack of employee engagement.
Yet in many workplaces in every community, you see this type of
behavior taking place. For business owners it equates to lost sales,
poor production, and costly mistakes. For leaders it is what keeps
us awake at night as we try to fgure out how to get people to care
about what they do.
the Costs are High
Te absence of employee engagement is costly. A business that has
engaged employees will grow, on average, at twice the rate of a
business that lacks that commitment from their staf. In fact, the
average American company loses 20 – 40% of its customers each
year! For a company that has a million dollars in gross revenue, that
could equate to as much as $400,000 in revenue that needs to be
replaced. Tis is often done through increased sales eforts, more
spent on marketing and advertising, and discounting products and
services. Tese expenses erode the bottom line and can make it
difcult for companies to survive in difcult times.
One of the best examples recently is Circuit City. Once praised
by Jim Collins in “Good to Great”, this company now only exists
as an online brand bought out of bankruptcy court. How could
this well recognized brand fall so far? Many point to the economy
as the source, but in reality that was only a small factor in their
demise. After years of growth, the leadership saw a huge expense
on the books. Many of its veteran salespeople were making a good
living doing what they did. Because of this, they were collect-
ing sizable bonuses. Te solution: replace the experienced (and
engaged) salespeople with less expensive, less experienced ones.
Tis move, as a cost saving measure, brought the company down
in the end. Without engaged employees who connected with the
customer, Circuit City’s service level fell to the point that when
people became more discretionary with their spending, they went
Getting them engaged
Te fact is employee engagement is a concern for almost every
business out there. As a business owner, leader, manager, or
employee there is much you can do to get people engaged.
Engagement is about getting people involved in the emotional
interaction that takes place between you and your staf. In ad-
dition, it also involves the emotional connection between your
staf and the customer. Rarely do we focus on this. In business
we often treat our interaction with people as a process and not
a relationship. Our goal is to provide a consistent outcome with
little room for error. McDonald’s perfected this approach in the
restaurant industry years ago, and people have tried to adapt it for
other things as well. It could be a customer service program, or an
employee engagement program, or a “how do you handle difcult
people” program. You get the idea. Tere is a strong need to apply
a simple solution to a complex problem because we want to make
it easy. Putting a program in place to handle customer complaints
makes it easy for the employee to respond. Unfortunately there has
yet to be a program written that covers ALL customer problems. By
having employees follow a system without some ability to think on
their feet they are left at the mercy of the procedures in place. How
many times have you heard, “Tat’s not our policy.”
Te reality is employee engagement is simpler than you might
think, but it’s not easy. It involves some discipline and trust on
the part of your leadership team to make it happen, but if you are
committed, the positive results can be tremendous.
the reality is employee
engagement is simpler than
you might think, but it’s
not easy. It involves some
discipline and trust on the
part of your leadership team
to make it happen, but if you
are committed, the positive
results can be tremendous.
Loyalty Management™ | November 2009 31
i’m Happy to be Here! (continued)
To borrow a metaphor, you must get your people of the
bench and get them in the game. any coach will tell you that
you can read playbooks all day long, but in the game when
you are in an environment that is constantly changing, you
need to proactively take action as the situations change. In
business, here’s how you do it:
1. Set the compass. Time to dust of that strategic plan.
does everyone know your Vision? Is it communicated
regularly and does it defne the purpose of each job
in your organization? It should. People are purpose
driven beings. Without a clear destination for the
company and themselves, then any direction will
work. Incorporate conversations with your people
continuously as part of this process.
2. make leaders not managers. There is a huge difer-
ence between leadership and management. Want to
see how efective your leadership team is? Here’s a
quick test. See how many you can truthfully say yes
to. answer the following:
a. does it appear that employees enjoy coming to
b. Is turnover lower than the average for your
c. does it seem like your employees are doing the
right things?
d. does your management team allow people to
creatively solve their own problems?
e. Is your manager doing the work he/she is sup-
posed to be doing and not taking on employee
3. make your people experts in building relation-
ships. develop the emotional intelligence within
people. give them the knowledge to efectively
interact with people, read people, and communicate.
4. allow people to work creatively within the guide-
lines. Lands’ End founder gary Comer once said that
an employee is allowed to take any action necessary
to take care of the needs of the customer. Employees
often found creative solutions to take care of cus-
tomer problems and their service became legendary.
5. Develop discipline. People need to be disciplined
in their commitment and approach to the needs of
each other and the goals of the business. discipline
provides structure where needed and creates ac-
countability to ensure things get done. Your leaders
need to be disciplined with their communication and
follow up with staf. Your staf needs to be disciplined
in their work and their follow through with your
6. bring the fun back! People spend much of their life
working. The last place they want to be is in an en-
vironment where they dread. Create a culture where
people have fun aNd get things done. It is possible
to create both.
7. Find solutions. We are all taught to be good at
picking out problems. It’s a completely diferent story
when it comes to fnding solutions. Teach others how
to overcome obstacles, fnd solutions and break it
down into measurable action steps.
8. Celebrate success. Celebrating seems to be left
for birthdays and retirement parties. Rarely do we
celebrate the feats we accomplish in business. These
milestones are just as important because of the hard
work and dedication of your staf. Recognize their
work and they will be motivated to do it again.
9. treat people like people. Sounds simple, but the
stresses of deadlines, calls from customers, and fres
that need to be put out often get in the way. People
sometimes become tools of the job and can be
treated as such. Everyone wants to know they matter
and they are valued. The value you place on them
directly equates to their performance.
10. Look ahead instead of looking back. often we get
focused on where we have been instead of where
we are going. This is true with our staf. They are
measured on past performance instead of future
potential. give people the opportunity to be success-
ful and the support to do it. The diference you make
could pay for itself ten fold. L
10 Steps to Engaged Employees
people sometimes become
tools of the job and can be
treated as such. everyone
wants to know they matter and
they are valued. the value you
place on them directly equates
to their performance.
32 Loyalty Management™ | Loyalty360.org
Loyalty Management™ | November 2009 33
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34 Loyalty Management™ | Loyalty360.org
Dare to be different!
You don’t have to settle for a “me too” program.
Discover loyalty strategies that stand out.
At Fairlane Group, it’s all about results!
“Engaging People for Better Results”
Loyalty • Incentives • Recognition
For more info, please contact bluefsh@fairlanegroup.com
FairlaneLoyalty360Ad:Layout 1 6/1/09 2:55 PM Page 1
Loyalty Management™ | November 2009 35
Dare to be different!
You don’t have to settle for a “me too” program.
Discover loyalty strategies that stand out.
At Fairlane Group, it’s all about results!
“Engaging People for Better Results”
Loyalty • Incentives • Recognition
For more info, please contact bluefsh@fairlanegroup.com
FairlaneLoyalty360Ad:Layout 1 6/1/09 2:55 PM Page 1
Give Back. . . Get Back
by Athena Golianis – AGW Idea Group
“ We make a living by what we get,
we make a life by what we give.”
For yearS, CompaNIeS SUCH aS patagonia, the body Shop, and ben & Jerry’s have been
embracing these words of Sir Winston Churchill. by creating a value proposition based on social
responsibility they have made buying their brand more than just a purchase, or working for the
company more than just a job. they have given customers, employees and other stakeholders a
way to be a part of something that is bigger than themselves and a meaningful way to connect to
their company. and in the process, they have created a competitive advantage.
36 Loyalty Management™ | Loyalty360.org
USINESSES ARE always striving for ways to
set themselves apart from their competitors. If
stakeholders—customers, employees, shareholders, and
others—perceive two companies are similar in their oferings,
the businesses must fnd ways to diferentiate themselves. A
growing number of companies are taking the lead from these
socially responsible pioneers and are striving to integrate a
well-designed, appropriate, and proprietary Corporate Social
Responsibility (CSR) program into their business strategy.
Tey are realizing that CSR is not a buzzword. It is not a
favor-of-the-month initiative. It is not fash of positive PR.
At its core, CSR is not only an opportunity to give back to
society, it is also a proven strategy to build and foster an overall
positive company reputation, increase engagement and loyalty
of stakeholders, and ultimately, gain a competitive edge and
positively impact the bottom line.
authentic CSr
drives employee
and loyalty
Employees have the power to
either reinforce or break a brand’s
promise every time they interact
with a customer, shareholder or
even employees. Tat is why it’s
vital to focus on your employees
and build your brand from the
inside out.
Te problem is that many
companies are starting behind
the eight ball because overall,
today’s employees are disengaged.
According to popularly cited
statistics from Gallup Employee
Engagement Index, 29% of
employees are actively engaged in their jobs, 54% are not-
engaged, and 17% are actively disengaged. In other words, a
whopping 71% of the workforce is not engaged in their jobs,
causing productivity, performance and proftability to sufer.
So how do companies engage their employees? We know
that today’s employees expect to care about what they do. Tey
want work that is challenging, stimulating and fulflling—both
emotionally and spiritually. Tis is what CSR is all about. In
fact, study after study has found that when employees under-
stand how their company’s CSR initiatives make a diference
in their jobs and in their communities, engagement levels rise.
For instance, a May 2007 survey conducted by Sirota
Survey Intelligence revealed that employees who are satisfed
with their company’s commitment to CSR are likely to be
more positive, more engaged and more productive than those
working for less responsible employers. In fact, Sirota found
that when employees have a positive view of their employer’s
CSR commitment, employee engagement rises to 86%; when
employees don’t have a positive view of their employer’s CSR
activities, that level drops to 37%. Te survey also found that
of the employees who are satisfed with their company’s com-
mitment to CSR:
• 82% feel their organization is highly competitive in the
• 75% feel their employer is interested in their well-being
• 71% rate senior management as having high integrity
• 67% feel that senior management has a strong sense of
Clearly, employees are more engaged and proud brand
ambassadors when they feel their companies are socially re-
sponsible. And research shows that this engagement unlocks
human potential and leads to better performance overall.
Te Towers Perrin Global Workforce Study (October 2007)
found that companies with the highest percentage of engaged
employees collectively increased operating income 19% and
earnings per share 28% year to year. On the other hand, com-
panies with the lowest percentage
of engaged employees showed
year-to-year declines of 33% in
operating income and 11% in
earnings per share.
Consumers prefer
Just as employees want to be
aligned with socially responsible
companies, consumers are
looking for brands that champion
the issues they believe in when
deciding to buy a product. Tey
want to feel part of something
bigger than themselves, and
connecting themselves to socially
responsible brands is an efective
way to achieve this.
Take TOMS Shoes, for
example, which was founded on a simple premise: with every
pair purchased, the company gives a pair of new shoes to a
child in need around the world—what the company calls its
“One for One” model. A clear example of using the purchasing
power of individuals to beneft the greater good, TOMS has
become one of the fastest growing shoe companies of all time.
Since its launch in 2006, TOMS has given over 140,000 pairs
of shoes to children in need, and plans to give over 300,000
additional pairs of shoes in 2009.
As TOMS shows, when a brand contributes to society beyond
its functional benefts, ‘giving back’ translates to ‘getting back’ in
terms of forging stronger emotional bonds with its consumers.
Research shows that TOMS’ consumers are representative of
society overall. According to the 2008 Cone Cause Evolution
Study, by cause brand strategy frm Cone Inc., consumers are
drawn to companies with strong CSR eforts:
• 85% of Americans say they have a more positive image
of a product or company when it supports a cause they
care about.
When a brand
contributes to society
beyond its functional
benefts, ‘giving
back’ translates to
‘getting back’ in terms
of forging stronger
emotional bonds with
its consumers.
Loyalty Management™ | November 2009 37
Continued on next page
• 79% say they would be likely to switch from one brand to
another, when price and quality are about equal, if the other
brand is associated with a good cause
• 38% percent have bought a product associated with a cause in
the last 12 months
Cone went further and put these statistics to the test by conducting
an experiment with 182 consumers. Consumers were split into two
groups and were given either a magazine with generic retail advertis-
ing or one with cause-related retail ads. Tey were then given real
money to purchase products with the following results:
• A 74% increase in purchases for a shampoo brand when associ-
ated with a cause. Nearly half (47%) of the participants who saw
the cause related message chose the brand, while only 27% of
those who saw the generic corporate ad chose the brand.
• A 28% increase in purchases for a toothpaste brand when associ-
ated with a cause. Nearly two-thirds of the participants (64%)
chose the targeted brand compared to only 50% who view the
corporate ad.
Based on these results it’s clear that consumers are happy to reward
companies that give back both with goodwill and with money.
CSr is not about how you spend the
money you make. It’s about how
you make the money you spend.
Companies such as TOMS Shoes, Patagonia, Te Body Shop, and
Ben & Jerry’s know how to utilize CSR as a powerful integrated
business strategy, not an add on, and to brand it. Tey understand
that an authentic CSR efort needs to be aligned with the long-term
goals of the company and, therefore, be a fundamental component of
their corporate mission, culture, identity, and reputation.
What’s alarming, according to a recent McKinsey Quarterly survey,
is that despite the fact that the majority of CEOs are well informed
as to the business benefts of strategic CSR, fewer than 20% of
organizational leaders claim they are very efective at aligning their
social strategy with business objectives and engaging stakeholders in
the process.
To drive alignment and create CSR eforts that have real impact,
the frst steps CEOs (as well as CMOs, HR directors, etc) need to
take is to make sure their initiatives:
• Have involvement and support of senior ofcers
• Understand that the image and reputation building process starts
with the philanthropic and business interests of the company
• Be communicated to the stakeholders—i.e. build awareness
• Be perceived as (and be) efective and results-oriented (perfor-
mance and sales)
• Be associated by stakeholders as “ftting” with the company (and
integrate with/reinvigorate) existing programs
As Anita Roddick, founder of Te Body Shop, once said, “If you
think you’re too small to have an impact, try going to bed with a
mosquito.” In these challenging times (and even in times of great
abundance), companies, employees and consumers can all work
together to better the world dynamic by being of service. In doing
so, we help others and can grow a business in a meaningful way. L
as anita roddick,
founder of the body
Shop, once said,
“If you think you’re
too small to have an
impact, try going to
bed with a mosquito.”
give Back...get Back (continued)
38 Loyalty Management™ | Loyalty360.org
Loyalty Management™ | November 2009 39
USINESS LEADERS, researchers, academics, and
management consultants alike have expressed concern
that while customer satisfaction may be a necessary
foundation for building strong customer relationships, by itself
it is a relatively poor predictor of future customer behavior and
organizational fnancial performance. Our data support this
concern. Results from a large number of case studies suggest
that customers who are extremely satisfed—those who provide
the highest rating of overall satisfaction with an organization’s
products or services—fall into two distinct groups: those who
are emotionally satisfed and those who are rationally satisfed.
Emotionally satisfed customers have a strong emotional
attachment to the organization while rationally satisfed
customers do not. Our research reveals that emotionally
satisfed customers deliver signifcantly enhanced value to an
organization, for example, by buying more products, spending
more for those products, returning more often, and staying
longer with the business. Rationally satisfed customers, on
the other hand, behave no diferently than customers who are
Tis pattern is not limited to customer satisfaction
responses; in fact, we see the same pattern for customer ad-
vocacy. Findings from a large number of case studies suggest
that customers who describe themselves as strong advocates
for an organization’s products or services—those who provide
the highest “likelihood to recommend” ratings—also fall into
two distinct groups: those who are emotional (even passion-
ate) advocates and those who are merely rational advocates.
Emotional advocates have a strong emotional attachment to
the organization while rational advocates do not. Our research
reveals that emotional advocates—like their emotionally
satisfed counterparts—deliver signifcantly enhanced value to
Customer Behavior is
infuenced more by
Emotion than reason
by Gallup Consulting
excerpt from: The Next Discipline Applying Behavioral Economics to Drive Growth and Proftability.
40 Loyalty Management™ | Loyalty360.org
For many organizations,
incremental improvements
in operational efciency may
continue to provide some
costreduction benefts, but in
our view they, too, will yield
little in the way of additional
competitive advantage.
an organization, buy signifcantly more products, spend sig-
nifcantly more for those products, and give a greater share of
their total spending to the business. Rational advocates, on the
other hand, behave no diferently than customers who would
not recommend the organization to others.
O IF THESE TWO traditional standby metrics fail
to deliver as advertised, how can we accurately gauge
customer sentiment? Taking a cue from behavioral
economics, scientists at Gallup
developed a method to measure—
reliably and accurately—the
emotional connections between
customers and the organizations
that serve them. Our research
also sought to demonstrate the
linkages between this measure
of customer engagement and
crucial business performance
metrics, including customer
retention, cross-sell, share of
wallet, frequency of purchase,
proftability, and relationship
Te resulting work suggests
that there are four key dimen-
sions, as illustrated in Figure 1, to a customer’s emotional
attachment to an organization (along with the more rational
foundational elements typically associated with customer sat-
isfaction). Each dimension represents a specifc set of activities
that meet customers’ emotional needs.
Te frst dimension of emotional attachment is Confdence.
Is this organization trustworthy? Can its employees be trusted
do what they say they will do day in and day out? Confdence
is the foundation on which higher levels of emotional attach-
ment are built. But confdence alone is not enough to build
long- term, sustainable, and emotionally connected customer
relationships. Beyond confdence lies Integrity, the essential
dimension of fair play. Does this organization treat me the way
I deserve to be treated? If something goes awry, can I count on
this organization to fx it quickly? Te next emotional require-
ment is Pride, a sense of positive association and identifcation
with the organization. Customers feel pride not because of what
their association with an organization says to others, but more
importantly, because of what it says to them about themselves.
Te ultimate expression of a strong emotional attachment is
Passion. Passionate customers de-
scribe their relationship with the
organization as irreplaceable and
a perfect ft. Passionate custom-
ers are customers for life and are
worth their weight in gold.
As illustrated in Figure 2,
our research revealed that
across organizations of difer-
ent types, customers who are
fully engaged—those customers
who have a strong emotional
connection to the organization—
represent an average 23%
premium in terms of share of
wallet, proftability, revenue,
and relationship growth over
the average customer. In stark
contrast, actively disengaged customers—those customers
whose emotional connection to the organization is weak or
absent—represent a 13% discount. At a local business unit level
(a store, branch, sales team, or other local unit), those whose
levels of customer engagement place them in the top 25% of
comparable units within an organization tend to outperform
all other units on measures of proft contribution, sales, and
growth by a factor of two to one. Clearly, engaging customers
on an emotional level has a signifcant fnancial beneft. L
read Gallup Consulting’s whitepaper, “The Next Discipline Applying Behavioral Economics to Drive Growth and
Proftability” in its entirety at Loyalty360.org.
emotionally satisfed
customers deliver
signifcantly enhanced
value to an organization...
by buying more products,
spending more for those
products, returning more
often, and staying longer
with the business.
Loyalty Management™ | November 2009 41
marketing Integration’s perfect Storm
Achieving customer-centricity has been a desire of marketers and
business leaders for decades. But the tools, capabilities, and support
needed weren’t readily accessible—until recently.
Today, key trends make marketing integration a fnancial
requirement, and the availability of technology, data, and ana-
lytic know-how has fnally made establishing a customer-centric
organization realistic and practical. For the frst time, companies
are creating competitive advantage by managing their customers
for proft.
Twenty years ago, Philip Kotler defned marketing’s role as setting
the strategic direction for the organization and its interaction with
customers for the purpose of satisfying needs of a target market
at a proft. Importantly, Kotler advised that marketing activities
should be manifest in all the activities of an organization to
create customer value. He suggested that this customer-focused,
integrated approach to marketing would bring the strongest short-
and long-term results.
Despite the strong desire of marketers and business leaders to
become more customer centric, the tools, capabilities, and support
needed to implement an integrated approach simply weren’t avail-
able. Instead, the concept of marketing integration was applied and
tested within marketing campaigns, business units, and channels as
a tactic for improving short-term results.
Still, marketers remained eager to apply the concept as a strategy
across the entire organization. Tey took steps toward that goal
by embracing concepts such as customer relationship marketing,
1-to-1 marketing, integrated marketing communications, and
others. But organizations have yet to fully integrate the marketing
function by engaging the entire enterprise in building customer
lifetime value. None of these approaches achieved full, customer-
centric integration because they did not take into account the
activities of the customer.
In 2007, Forrester Research found that just 9% of marketers
at or above director level at major companies said their customer
communications were “very integrated” across channels. Two years
later, the numbers haven’t moved much. Preliminary results of a
new Forrester study commissioned by Merkle indicate only 17%
of senior marketers and managers say their companies’ customer
and prospect communication activities are “very integrated” across
marketing, sales, and service (Figure 1).
Some—but by no means all—of the major obstacles that have
prevented a customer-centric focus include:
• A lack of executive support
• Organizational designs
• Compensation and incentive systems
• Measurement constraints
• Business models
• Data capture capabilities
• Analytic capabilities
• Perceived high cost
• Focus on short-term results
Integrated Customer

A systematic approach to delivering customer
interactions that create competitive advantage
and drive shareholder value
by David Williams – Merkle
42 Loyalty Management™ | Loyalty360.org
Continued on next page
Today, virtually all these obstacles can and must be overcome.
Twenty-frst century business realities, talent, and tools have
converged, making customer- centric marketing both practical and
urgent. Marketing integration’s perfect storm has arrived.
Tis paper, the frst in a series, discusses the opportunity ofered
by fully integrating the marketing function across the enterprise
and the obstacles that have prevented marketers from implement-
ing this strategy. Te paper introduces a systematic—and most
importantly, customer-centric—approach that makes integration
both practical and realistic to implement. Merkle calls this new
approach Integrated Customer Marketing™.
Why Integration is Crucial today
Despite pouring billions into customer acquisition and loyalty
programs, many initiatives fall short because marketers are unable
to draw a direct, measurable connection between a customer’s
interaction and the resulting behavior. Tis disconnect arises from a
lack of enterprise-wide integration and a continued myopic focus on
product marketing rather than customer marketing. “When business
units are named after products, it’s hard to be customer focused,” says
Penn State’s Gary Lilien in a recent issue of Marketing NPV® Journal.
Little has changed since the nineties, when the term integrated
marketing typically described public relations, advertising, direct
marketing, and promotions working together to deliver a consis-
tent message to a target audience across multiple communications
channels. Te modern defnition of “fully integrated marketing” is
far more expansive and emphasizes structured collaboration among
most, if not all, other departments. With shared language, metrics,
and strategy, the entire enterprise is able to work together toward
the common goal of achieving maximum customer value from
each relationship.
Optimizing value is a tiered process, built by nurturing lasting
relationships over time:
• Increased relevance creates increased engagement
• Increased engagement creates increased satisfaction
• Increased satisfaction creates increased behavior
• Increased behavior creates increased value
• Increased value creates increased returns
In a fully integrated, customer-focused organization, marketers
play multiple, vital roles across the enterprise and at the highest or-
ganizational level—often working with top executives to establish
company-wide strategy as well as fnancial and operational goals.
Deploying fully integrated, customer-based marketing—and
seizing the accompanying opportunities—has become an increas-
ingly urgent need.
In its 2009 study of more than 400 CMOs and 20 business and
academic leaders entitled “Calibrate How You Operate,” the CMO
Council found that global marketers are seeking stable operational
platforms to contend with unstable market dynamics. Teir goal:
“To achieve substantive performance gains that drive top-line
revenues and sustainable corporate growth,” cited the report.
Among the actionable key insights uncovered in the study was that
inadequate data-sharing across the enterprise consistently hindered
the ability to efect process and operational changes. According to
the report, “Integration of platforms and processes is critical.”
Today’s consumers have far more control and choice than ever
before about where, when, and how to interact with brands.
Instead of a relative handful of customer touch points, marketing
and other departments within their organizations must keep tabs
on dozens—if not hundreds—of data points about their custom-
ers. Te tidal wave of digital media has overwhelmed marketers
and rendered traditional customer interaction models inadequate.
Loyalty Management™ | November 2009 43
UTHOR CHRISTOPER VOLLMER, a partner with Booz & Company, writes in
his Spring 2009 article for strategy+business that the digital explosion has transformed
the competitive landscape into a survival of the fttest; “a kind of ‘digital Darwinism.’”
At this critical juncture in marketing, Vollmer’s message to marketers is simple: Evolve or die.
Some organizations have responded to the competitive threat by reorganizing and shift-
ing resources to capitalize on the online opportunity. But because the “customer ecosystem”
encompasses multiple channels and media platforms, the tactic is more a reframing of the
old product-centric focus to make it work in the digital world rather than a next step in
marketing’s evolution. Solving problems that have plagued marketers and their organizations
for decades, efectively competing in a brutal marketplace, and seizing opportunities as they
emerge, requires organizations to adopt a new dynamic.
Financial trends and
Competitive opportunities
“Marketing operations has started to
resemble an untended garden—packed
with potential for growth and output, but
constrained by the increasing complexity of
operating at a global, Internet-fueled pace,”
noted Donovan Neale-May, executive
director of the CMO Council, in a recent
news release. Te situation Neale-May
describes directly impacts customer value
and ultimately, the fnancial worth of an
Neale-May’s observation also suggests
signifcant opportunities and fnancial
rewards await companies that overcome
obstacles to marketing integration. If
companies maximize individual customer
value, the entire customer portfolio is en-
riched and maximized. When the portfolio
is maximized, then shareholder value is
maximized. However, for the rich harvest
to be reaped, the neglected garden to which
Neale-May refers must frst be straightened,
nurtured, and cultivated.
Many customers aren’t happy. Some are
downright angry. Companies with whom they’ve had long standing relationships don’t seem
to know them or their needs. Tey’re sent duplicate and sometimes competing ofers. After
making a purchase, they must navigate maddening in-bound telephone prompts and then
patiently wait on hold before they fnally reach a representative. Tey’re frustrated by ecom-
merce sites that aren’t user friendly. Often, they experience the negative efects of conficting
internal policies and decide to take their money elsewhere.
N THE PAST, the customers a company lost didn’t matter as much to Wall Street as the
number of customers acquired. Tat point of view is changing rapidly, particularly in the
current economy. Author and Assistant Professor of Marketing at the University of Florida,
Michael Lewis, writes that researchers have recently noted that the health of a company—its
value and future prospects—is often best understood by analyzing its customer base.
Te business case for fully integrating the marketing function extends well beyond achieving
campaign response rates and monthly sales quotas. As Lewis implies, current research strongly
suggests it may only be a matter of time before shareholders and analysts include among key
evaluation criteria the health, stability, and long-term value of an organization’s customer base.
I N D U S t r y V o I C e S
“ Knowing that
60 percent of your
loyal customers are
proftable is useless
if you don’t know
which ones to court
with what level
of service.”
— Werner Reinartz and V. Kumar,
authors, “The Mismanagement of
Customer Loyalty,”
Harvard Business Review
many customers aren’t happy.
Some are downright angry.
Companies with whom
they’ve had long standing
relationships don’t seem to
know them or their needs.
In the past, the customers
a company lost didn’t
matter as much to Wall
Street as the number of
customers acquired. that
point of view is changing
rapidly, particularly in the
current economy.
integrated Customer marketing™ (continued)
44 Loyalty Management™ | Loyalty360.org
When the customer portfolio is maximized, then shareholder
value is maximized.
Merkle describes this corporate asset—the pool of customers
currently engaged with an organization’s brand—as the customer
portfolio. According to Merkle President and CEO David
Williams, marketers need to start thinking of themselves as respon-
sible for the management of a fnancial
asset. “Marketers are the true managers
of the customer portfolio,” Williams says.
Why is Integration
So Difcult to accomplish?
Historically, most organizations have
struggled in their attempts to implement
a systematic approach to delivering
customer interactions that drive value.
Te reasons are complex and numerous.
A lack of a coordinated, enterprise-
wide approach has clouded the ability to
view customers across the organization.
Without an approach that involves enterprise management, it’s
been impossible for most companies to develop a common cus-
tomer segmentation strategy that makes sense to all departments,
all the time—rather than in response to fuctuating departmental
goals or a single campaign’s objectives.
Basics, such as routine customer data collection sharing and
accessibility, have been long-standing issues in many organiza-
tions. In reporting the results of its April 2009 Data Management
Survey, DMNews reported that only 31% of respondents—253
top company and marketing executives, directors, and managers
from across the US—said their companies integrate data collection
channels. When it is already difcult or impossible for one depart-
ment to access customer data collected by another department,
for instance, the prospect of successfully implementing a strategy
involving enterprise-wide sharing and collaboration is often viewed
with great skepticism.
A lack of a coordinated, enterprise-wide approach has clouded
the ability to view customers across the organization.
Top company executives aren’t typically involved in marketing
strategy and that’s problematic, too. Without C-suite leadership
and active involvement in the development of universal metrics,
including the relative value of diferent customer segments to the
organization as a whole, the opportunity
to integrate in a way that builds long-term
value becomes increasingly difcult.
Launching an initiative to accomplish
full integration across a vast and complex
organization is also understandably
daunting, which is why so few companies
attempt it. Tose who initiate enterprise-
wide implementation as a single work
“project” rarely succeed. Day-to-day
demands usually place the efort as a low
priority and the complexities involved
make integration seem impossible and
impractical, especially when undertaken
without a framework that provides a clear
But the short- and long-term benefts outweigh the obstacles.
Te organizations that use a systematic framework and view in-
tegration as a multi-step journey, rather than a marketing project,
are best positioned for success. Organizations that implement
integrated marketing stand to achieve both incremental and sus-
tainable advantages. L
I N D U S t r y V o I C e S
“ Customer-centric marketing makes no
assumptions. It begins with ‘who is your
consumer, and what’s diferent about her?’
It sounds like such a simple question, but if you
went to more companies and asked that question,
you wouldn’t get a very satisfactory answer.”
— Jim Stengel, Global Marketing Ofcer, Procter & Gamble,
as quoted in “Magnosticism”
read the complete, “Integrated Customer Marketing”
whitepaper with additional information on:
What is Integrated Consumer Marketing?; Building ICM
Currencies; and ICM in Practice, at Loyalty360.org.
Launching an initiative
to accomplish full
integration across a vast
and complex organization
is also understandably
daunting, which is why so
few companies attempt it.
Loyalty Management™ | November 2009 45
The New Plastics:
Driving Share Through Competitive Analytics
by Caitlin Schar
ment rate, and increased costs for basic goods and
services, have put retailers and card issuers in a trying
and complex situation. Consumers aren’t spending. Tey are
limiting purchases to necessities, and any purchases that can
be delayed—big and small—are. Tose who are spending
are looking for a deal, a discount—any way to conserve cash
and spend less. As retail sales decline, competition for the
active consumer increases—retailers and card issuers alike are
searching for ways to increase both share of wallet and overall
market share in a challenging economy.
Hopefully, recovery is on its way. But until then, and even
after, what’s a retailer and card issuer to do?
In 1967—the answer was “plastics.” Today, the magic word
is “analytics.” We live in an age of information with far more
tools and technologies than ever before. However, despite the
advances overall, accessing competitive data in the retail indus-
try has become increasingly difcult as economic pressures and
regulatory restrictions have caused companies to progressively
reduce the amount of information that is made public. Given
that, getting access to competitive data has become harder by
the minute.
Why is data so important? Because this information unlocks
the door to successfully managing the three p’s—product,
pricing and promotion. For retailers, the key to winning in this
environment lies in the ability to make better decisions in these
critical areas. Closely aligned with that is the need to focus on
new customer acquisition—today more than ever—as the land
grab is now. Across the nation, customers who were once loyal
to particular retailers must fnd new places to shop in the face
of a rash of retailer bankruptcies. Finally, retailers must focus
on ways to increase loyalty among existing customers while
increasing the average ticket, maximizing every store visit.
So, in this age of information—where there is too often
too much to wade through and not enough of what you really
need—how can retailers and fnancial institutions become
laser focused on the most valuable and productive data?
Tere are a variety of ways retailers and banks can get an
edge on their business through insightful data and the sig-
nifcant amount of information available to them today. Te
internal customer database is the frst line of defense in terms
of building a good competitive ofense. Generally speaking,
customer retention is more cost efective than customer ac-
quisition—and the purchase behaviors and patterns evidenced
by a retailer’s CRM database set the stage for the development
of most of the marketing initiatives that will be put in place.
Industry sales data is another tool to be exploited to full
efect. Te National Retail Federation is one good resource. In
addition, there are a number of websites which provide various
types of data, such as retailnet.com; plunkettreseaarch.com, as
well as industry bloggers like Barbara’s Retail Industry Blog
at About.com (www.http://retailindustry.about.com/b/) and
Wall Street research reports.
Afnity Solutions (www.afnitysolutions.com), which
works with retailers and fnancial institutions to build online
and ofine relationship marketing programs, has come up with
a unique solution to the challenges of sourcing, aggregating
and analyzing competitive data. Trough its work managing
hundreds of loyalty programs for fnancial institutions, Afnity
Solutions has access to a unique data set of consumer behavior
and purchasing information. Afnity Solutions President and
CEO, Jonathan Silver, and his team saw an opportunity.
“Not only were we hearing our customers’ data and insight
requests increase, but because of the tumultuous markets, they
wanted as much information as they could get, as quickly as
they could get it. We knew that through our work we were
sitting on a treasure trove of data, and we knew that if we could
design a way to repurpose it for our clients, that would be an
invaluable resource. Te only logical solution for us was the
development of the Afnity Dashboard™,” says Silver.
In 1967—the answer was
“plastics.” today, the magic
word is “analytics.”
46 Loyalty Management™ | Loyalty360.org
So, how does the afnity Dashboard™
help retailers compete?
ILVER ExPLAINS that the Afnity Dashboard™
provides a window into the spending patterns of 60
million debit and credit cardholders and their daily
transactional behavior. With the increasing need to know
when and where consumers are spending, the timing of the
available data has become the ultimate attribute of the Afnity
“Tis is actual, real-time data, delivered to retailers in an
easy, customizable format,” explains Silver. “We wanted to give
our retailers a leg up by allow-
ing them to compare their own
data with their competition in
real time. Most retailers tend to
have a lot of data and informa-
tion on their existing customers
through their own transactional
database and primary qualita-
tive and quantitative research,
but are very limited as to
competitive spend. Te Afnity
Dashboard™ flls in the gaps with a focused look at not other-
wise easily available competitive analytics.”
In terms of usability, the Afnity Dashboard is designed
so that customers can walk into their Monday sales meetings
knowing how their competition did the week prior.
Silver describes the process behind Afnity Dashboard™ as
fairly simple. Each week the varied data points and modeling
tools of the Afnity Dashboard™ are updated with the latest
information from Afnity Solutions’ database of the 60 million
cardholder transactions. Te data is aggregated across all of
Afnity Solutions’ fnancial partners to ensure that they are
capturing a truly representative sample of data that accurately
represents the movement in the retail environment.
While retailers and card issuers remain challenged in today’s
economic landscape, there is hope on the horizon and real-
time tools and strategies that can be efective today. More data
with a focus on competitive analysis is one of them.
“Te Afnity Dashboard™ is the only solution that ofers a
unique insight into the spending pattern of 60 million card-
holders and the ability to target key customer segments within
them,” Silver said. “Tese tools give us the inside view of how
we can develop the programs and strategies that will allow us
to emerge as winners as the economy steadies and begins its
inevitable climb back up.”
most retailers tend to have a lot of data and information on
their existing customers through their own transactional
database and primary qualitative and quantitative research,
but are very limited as to competitive spend.
through its work managing hundreds of loyalty
programs for fnancial institutions, afnity
Solutions has access to a unique data set of
consumer behavior and purchasing information.
Loyalty Management™ | November 2009 47
Loyalty alternatives
Create my own currency or use theirs?
by Erin Raese
time discussing customer loyalty
solutions. Often these discussions
revolve around the creation of a loyalty
program—spend this, earn points, get that.
Most all of us can agree, these programs are
efective if done correctly. However, as a
practitioner handed the word from above,
“increase our customer retention rate by
20% this year”, one can feel overwhelmed
and unsure of the most efcient and efective
way to approach this demand. Many will
recognize this bottom line driven necessity
as huge mountain to climb, and remain
daunted with the task of determining the
easiest, safest and most efcient way to get
to the top.
Loyalty programs are
defnitely a great solution for
many organizations. However,
initial and ongoing investment,
continuous analysis, unique
promotion and fnding proof
in the statistics to support this
type of strategy are slippery
steps up the mountain side. Te
good news—there are options.
Te most basic alternatives
involve utilizing various communication
vehicles and your database to support cus-
tomer engagement strategies. Incentive and
recognition can be achieved without points.
However, if your management is convinced
that a program structure is the answer—there
are cost efective alternatives.
Are you aware that many organizations,
that have made the commitment and the
investment in developing their own currency,
are open and willing to sell their currency to
you? You now have the opportunity to utilize
the same marketing strategies involved in
running your own program, but without the
cost and commitment of developing your
own currency. For example, a business cater-
ing to the small business market could choose
to buy miles from their hub airline. Tese
miles become the loyalty initiative; incent
and engage by ofering these miles to the
best customers. Tis is especially helpful for
smaller companies. If you have less than 100
locations, leveraging a currency with broad
appeal and wide recognition will allow you to
not only increase transactions and basket size
with existing customers, but also give people
not yet a customer a stronger reason to choose
you over a competitor. You’re ofering them
something additional—something that they
ONSUMERS LIKE this strategy
because it allows them to bundle
their earnings into one currency. Tis
provides higher and stronger redemption
value, opposed to earning less from multiple
vendors with diferent currencies (where it
can take much longer to ever earn enough
to collect a reward). Top currencies to
look at are airline and hotel programs, or
credit card programs like American Express
Membership Rewards and Citibank’s Tank
You program.
Another popular alternative is to tap into
coalition programs. Tere are a number of
organizations bringing like brands together
to create a unique value proposition for the
consumer and the brand. Some popular
examples are found in the restaurant indus-
try—Rewards Network, Restaurant.com,
OpenTable.com, and Passport Unlimited.
Each of these organizations ofer discounts
or added value to the consumer
for dining; for the restaurant
they provide marketing, new
customer acquisition, increased
retention with new and existing
customers and the analytics to
support the marketing eforts.
Tese programs specifcally
Rewards Network and Passport
Unlimited are membership based
programs where consumers must
raise their hand to participate.
Tis type of active consumer has proven to
be more active and engaged therefore bring-
ing larger, more frequent transactions to the
participating merchants.
are a great way to learn, engage
customers, and increase sales without
the commitment of your own loyalty
program and program currency. Often
organizations use these options as a stepping
stone to learn what works and what doesn’t
for their customers as well as a way to identify
their customers and glean information and
insights from them.
For more information or help determining
which direction is best for your business, visit
you now have the opportunity to
utilize the same marketing
strategies involved in running your
own program, but without the cost
and commitment of developing
your own currency.
48 Loyalty Management™ | Loyalty360.org
ODAY, THE NEED TO ENGAGE and retain customers
to spend their remaining dollars with you has never been
more important. Online video can help you engage them.
I’m not talking about the crazy, wacky videos, but rather using
informative online videos that engage current and potential
customers in diferent ways. Trends for using online video are
positive. As connection speeds get faster, the number of views and
length of views are increasing, which
should be good news for marketers
worried about short attention spans.
Online Video is becoming more
widely used... Before I describe ways to
use online videos, it helps to understand
why this medium works so well. First, it
is much easier to engage customers in a
visual medium than it is with printed
words. Video lets you demonstrate
your idea — with action, with humor,
with the credibility of a great presenter.
Ask yourself: Would you rather read an
instruction manual or see an actual dem-
onstration? Additionally, people respond
positively to seeing a person on the other
side of the conversation; a stronger con-
nection occurs when one can see facial
expressions. Finally, with online videos, prospects can get a closer
look at the features and benefts of products, or view testimonials
from current users.
engaging Ways to Use online Video
ADVERTIsInG—Forget the sales pitch. People are getting tired
of traditional advertising. Be authentic and try to use real people
and places. Create a compelling message that answers how you
meet the viewer’s needs and provide a call to action which can tie
directly to a purchase opportunity. For an example, JP Morgan
Chase just launched their Ultimate Rewards program; they’re using
online video advertising to teach us about the program (www.
ultimaterewards.com). Additionally, several companies including
VideoClix (www.videoclix.com) can add interactive hotspots to
your video that allow viewers to see more product information or
even make purchases. Te interactions can be tracked and all the
viewer needs is Adobe Flash Player.
TuTORIALs—Learning from a live person produces a better
understanding of the information that is being presented, as
opposed to reading the material. Printed instruction manuals can
be frustrating because the information might not be clear or there is
too much or too little information. Reducing frustration enhances
the customers experience with your product. Remember trying to
replace your frst windshield wiper? I do. What about fxing your
computer or software how-tos, wouldn’t it be great to get of the
phone with customer service and plug in online for a visual walk-
through? Apple has some great examples of video tutorials on their
website. Check out how they use video to demonstrate how to use
the Apple iLife software (www.apple.com/ilife/tutorials).
TEsTIMOnIALs—Who better to
explain the benefts of your service or
product than your best customers? A
video testimonial gives them the ability
to talk directly to your prospects, and
because your customers are talking peer
to peer, you can reduce the time involved
in building trust. Testimonials usage
isn’t just for infomercials anymore—it
is growing as a tool for engaging both
consumers and employees and we will
see in the near future wide use across
the marketplace. Need an example? Visit
YouTube (www.youtube.com), –type
“Testimonial” into the search box (there
are thousands, I’m sure). Disney uses
video testimonials frequently and well,
for an excellent Disney sample view Disney’s: “Dream Makers” /
“Testimonial” on YouTube.
When you decide to use online
videos consider the following....
Production costs for online videos are signifcantly lower than
traditional 30 second media spots allowing you to create and build a
library. Further, data can be collected that can help identify whether
consumers are merely satisfed or truly loyal. Did they recommend
the video to a friend? Additionally, cookies will be replaced by deep-
packet inspection (DPI), which monitors the pages consumers’
visit, the emails they send, and every search entered online. Just
think of serving up videos based upon who is looking, versus the
content of a page. Incidentally, the FTC is developing guidelines
regarding privacy concerns that this practice raises, including the
invisibility of the data collection to consumers and the risk that the
information collected—including sensitive information regarding
health, fnances, or children—could fall into the wrong hands.
Two fnal points to remember. Tag the video right so it is search
engine friendly. Make sure the video is high quality. Low quality
video will not keep the consumers attention and will leave them
with a negative impression of your business.
Online Video Can Be
Very Engaging
by Mike Jais – Graphics Plus Inc.
It is much easier to
engage customers
in a visual medium
than it is with printed
words. Video lets you
demonstrate your idea—
with action, with humor,
with the credibility of a
great presenter.
Loyalty Management™ | November 2009 49
Loyalty marketing Beyond programs
by Phil Rubin – rDialogue
more tHaN tWeNty yearS after the frst frequent fyer program, loyalty
marketing is still largely defned and equated with frequent fyer-type
programs. It’s an easily accepted and digestible paradigm:
Loyalty = rewards Program | Spend and Get | earn and Burn
email marketing | Discount cards
ARKETERS, and more importantly CFOs, understand
that building relationships with existing customers
delivers a superior ROI. So as loyalty marketing takes
hold and evolves as a core marketing discipline, we need to think
in broader and more diferent terms than simply equating loyalty
marketing with “programs.” While customer marketing, especially
in companies with large numbers of customers and transactions,
must be programmatic to scale, it doesn’t always have to appear to
customers as a “program.”
Customers are Loyal to brands,
Not marketing programs
When kicking of new projects with clients we often ask what
brands people are loyal to. While it might be surprising, most
responses to the question have little or nothing to do with loyalty
If you want further validation simply send a Tweet or post the
question via LinkedIn or Facebook. You’ll see that many of the
answers include long established package goods brands and mega-
brands like Apple, Nike, Coca-Cola and Harley Davidson.
Part of the reason for this is that epic brands, by defnition, have
strong emotional components. Loyalty is an emotional allegiance
and in our context, that allegiance is ultimately to the individual
brand. In our experience, brands are what people believe in and
have relationships with, not loyalty programs. Te loyalty strategy
is the means to that end, and really a part of the brand strategy.
50 Loyalty Management™ | Loyalty360.org
Loyalty marketing Beyond programs
by Phil Rubin – rDialogue
Continued on next page
What If I Don’t Have an epic brand?
Not every brand is a Coke. Tere are plenty of industries, companies
and brands that do not merit loyalty in the emotional sense, even
from their most valuable customers. Tus, there are also diferent
ways to defne customer “loyalty” that are just as important and
often equally as proftable.
Tis is where we can make the important distinction between
emotional connections and habit, which relates to the idea of con-
sistency, predictability and a fair amount of unconscious behavior.
It’s easy to miss the subtle diferences here but when are you defn-
ing or executing a loyalty strategy, it’s fundamental.
Loyalty marketing better Defned
Tinking about loyalty marketing beyond programs requires
thinking about the desired customer behavior and then how to
identify, manage and drive those behaviors from customers.
A premise of loyalty marketing is that not all customers are
created equal and thus do not all require the same investment.
Loyalty marketing is that part of marketing focused on investing
in the development, management and optimization of proftable
customer relationships.
In simpler terms, we like to defne successful loyalty market-
ing initiatives as being in a place where we can push buttons (i.e.,
deliver communications, ofers and promotions) and drive new,
recurring and incremental revenues.
okay So If It’s Not Just programs,
then What Is It?
Te answer is…it depends. Tere are a number of variables that
should drive what loyalty marketing looks like for any given
brand and the list is too long to cover here. Just like brands are
unique, loyalty marketing should be as well, even though all too
often it isn’t!
First, let’s review some examples of brands with high customer
loyalty, and strategies that are not typically associated with “loyalty
n Zappos
n Nordstrom (thoughtheydohaveagreatloyaltyprogram)
n Verizon (thoughtheyhaveaverymediocreloyaltyprogram)
n Disney
n Four Seasons
Tese companies are so good at serving their customers that
they efectively create a real opportunity cost of doing business
elsewhere, largely due to the inferior experiences of others. Zappos,
Nordstrom, Verizon and USAA all excel at customer service.
Disney and Four Seasons are incredibly efective at providing a
consistently fawless experience.
n Apple
n Coca-Cola
n Harley Davidson
Let’s face it, there are some brands whose products are so good
they don’t necessarily need to do ofer much more than what the
product delivers on its own. Sometimes, these companies are argu-
ably not that great at customer marketing. Tey are all, however,
amazing in terms of creating and delivering excellent products.
Loyalty Management™ | November 2009 51
Brands are what
people believe in and
have relationships with,
not loyalty programs.
the loyalty strategy is
the means to that end,
and really a part of the
brand strategy.
n Amazon
n Netfix
Sadly there aren’t many more of these…at least not at this level.
Tere are very few brands that use customer data better than Amazon.
Tey recognize you, what you like, what you’ve bought and what
you’ve shopped for. And they create a highly relevant experience for
you every time you visit them. Just open one of their emails to be
reminded how well they do this.
Four Questions to Guide
So customer loyalty is one thing. How should we really pursue loyalty
If you’re not sure, the overriding factor is to determine whether your
marketing—and ideally your overall business strategy—is customer
Here are four questions that would lead us to believe that your
company is capable, if not already practicing, loyalty marketing:
1. Can you easily identify a majority of your customers (how
to contact them, what and when and where they buy)
and do you use that as a basis for better understanding
2. are those customers engaged, opted-in and responsive
to communications?
3. are you able to drive new revenues and profts from
those customers in a measurable, consistent and even
predictable way?
4. are the activities related to the above questions build-
ing measurable and sustainable value, with increasing
expertise, efectiveness and meaning, for all parties?
the Challenge
Te best loyalty “program” in the world is only as good as the brand
it supports. Te loyalty program has to fow from the brand strategy
and the broader business. Te best loyalty “programs”—strategies—are
often a way to package or merchandise a collection of brand benefts
and value drivers that a company is already providing to some (if not
all) customers.
Te best brands are iconic and absolutely incomparable to other
brands in their space. Tere is only one Apple, only one Nordstrom
and only one Amazon. Tey should all have correspondingly unique
loyalty strategies. Assuming your brand is unique, why shouldn’t yours
have one too?
Loyalty marketing Beyond programs (continued)
52 Loyalty Management™ | Loyalty360.org
Before the
by Doug Fleener – Dynamic Experiences Group, LLC
relationship businesses have with their customers in three
steps with seven stages. Known as the Customer Relationship
Lifecycle. (CRL) the three steps and seven stages are:
1. awareness 2. Knowledge 3. Consideration
4. Selection or trial
5. Satisfaction 6. Loyalty 7. advocacy
Too bad so many companies take this approach because it has a
huge fundamental faw. What’s missing? Advocacy. Most companies
think that only buyers can be advocates, but the fact is that some of
your best advocates may not have made a purchase yet—and maybe
they never will.
Smart retailers focus on building advocacy during the pre-purchase
step for three reasons:
• To potentially turn non-buyers into advocates.
• To lead more buyers into becoming advocates.
• To use the advocacy elements to infuence the consideration
stage and improve the purchase potential.
To focus on creating advocates in the pre-purchase stages, consider
the following:
1. teach your employees that some non-buyers actually
create a lot more revenue than the average customer
spends. As a matter of fact, some studies have shown that in
some businesses the highest spending customers are not the most
efective advocates. Tisiswhyweliketoteachallretailemployees
2. make it a company goal to deliver an amazing and
delightful experience to every single customer.
I love the retailer who told me that her goal is to have every cus-
tomer who leaves her store feels better than when they came in.
How the experience is delivered varies from retailer to retailer but
what doesn’t vary is that retailers who deliver a superior experience
have identifed the steps to delivering the experience. It’s usually
a combination of activities including a warm welcome, a drink or
some other gesture, and may include a surprise that delights the
customer. Te easiest way to get customers to advocate your store
is to give them something to tell others about. Whathappensin
3. Capture contact information for all visitors. Retailers who
only capture the contact information at the point of sale are losing
revenue opportunities and potential advocacy by non-buyers.
pre-purchase phase and you’ll increase the number of post-purchase
So let me ask, is building advocacy in your pre or post-purchase
most companies think that only buyers
can be advocates, but the fact is that
some of your best advocates may not
have made a purchase yet—and maybe
they never will.
Loyalty Management™ | November 2009 53
It’s all over the board
Te defnition of “engaging people” has an incredibly wide
range. Just a simple internet search on the topic will generate
hundreds of unique perspectives and opinions. Some
companies characterize engagement as a simple response to a
call to action while other companies describe it as a strong and
unwavering advocacy for their brand.
Sales and marketing strategies designed to infuence behav-
iors (or “infuencer” strategies) are built upon the premise of
driving deeper engagement with their brand – whether it be
with consumers, channel partners, direct sales teams or em-
ployees. Te bottom line is that regardless of how engagement
is defned by your company and its respective “infuencer”
strategies, it must be measured.
Keep It Simple
Measuring engagement can be challenging. It’s nearly
impossible to derive one comprehensive metric since it
encompasses too many attributes and, quite frankly, too many
varying opinions on what engagement really means. A more
meaningful approach is to break engagement down into bite-
sized components that are agreed upon and can be tracked and
measured on an ongoing basis. Simplicity is the key and will
allow for a more focused and concentrated efort in infuencing
those factors that create deeper engagement.
tie It to proftability
When selecting attributes to measure engagement, it’s
important to link them directly to proftability. For example,
tracking how many times a customer visits your store is a
meaningful metric that correlates to engagement, but if that
customer never makes a purchase, it may not be a behavior you
want to encourage. Te same is true for a salesperson that sells
truckloads of one of your products, which is a strong indicator
of engagement. However, if those sales are at the detriment
of up-selling higher margin products, it may not be the most
suitable attribute in measuring engagement. At a high level, the
art around measuring engagement can be grouped into two
broad categories, attitudes and behaviors.
attitudinal metrics
Measurements around people’s attitudes towards a brand
are derived using research techniques. Tey may consist of
satisfaction scores and /or quantitative results from primary
research and/or focus groups. Although such techniques ofer
meaningful information on how people perceive the brand,
they seldom provide a comprehensive picture of engagement
without the inclusion of behavioral metrics. In addition, it’s
sometimes difcult to link attitudinal measurements directly
to proftability.
Measuring Engagement:
Simplicity is Key
by Bob Konsewicz – Maritz, Inc.
54 Loyalty Management™ | Loyalty360.org
behavioral metrics
Measurements around people’s behaviors are typically easier to
capture and track. And there seems to be general consensus that
actual behaviors are meaningful indicators of engagement. Plus,
they can also be linked directly to your company’s proftability. For
example, if an “infuencer” strategy creates more sales of high margin
product, it directly impact profts. Measuring engagement through
behavioral metrics can be accomplished in a variety of ways.
method one: Scoring
Scoring techniques are one of the fastest ways to convert behaviors
into measurable metrics. Tey can be sophisticated or simplistic
in nature. Te frst step is to determine the desired behaviors that
associate closely to your company’s defnition of engagement. Te
second step is to rank or weight behaviors by importance. From
there, a scoring algorithm is created that can be used to record the
progress of behavioral changes. Scoring algorithms can also track
the impact of stimuli, such as relevant communications, marketing
campaigns, or rewards.
method two: breadth of activity
“Breadth of activity” is another useful approach using behaviors
to measure engagement. Te concept generally applies to all kinds
of “infuencer” strategies – whether it be increasing the product
sales mix in a sales channel program or increasing the categories of
products purchased in a consumer loyalty program. In both cases,
the greater breadth of activity leads to a more extensive relationship
with the brand and thus, becomes a signifcant measurement of
method three: modeling
A more sophisticated and predictive approach to measure behaviors
is through modeling. In modeling, advanced analytical techniques
are used resulting in predictive scores. A good example of modeling
is lifetime value analysis, which can be applied in a variety of
“infuencer” strategies. Lifetime value analysis allows your company
to know where to invest dollars to motivate individuals through
relevant communications, campaigns, and rewards.
Even though the defnition of engagement may be all over the
board, it’s important to keep things simple when measuring the
impact of “infuencer” strategies. It’s easy to get bogged down
with attempts to develop a comprehensive metric. So keep
it simple. Choose two or three key behaviors and/or attitudes
that are known to drive stronger brand engagement. Make sure
they can be measured and tracked and that they relate closely to
When selecting attributes to measure engagement,
it’s important to link them directly to proftability.
Loyalty Management™ | November 2009 55
So simple, yet so right! There is no efort to making this program
work. Simply show up, sit down, eat, drink and be
merry. Provide your mug Club card to your server, and with your
check Rock Bottom provides a mug Club statement, which tallies
not only visits, but also number of pints you have consumed.
once you have accumulated enough visits for your reward, there
is no need to go through a lengthy or time-consuming redemp-
tion process. Nope — your waiter brings you your prize. It’s like
a little gift you may not have even anticipated when you walked
through the door. on numerous occasions — as our visit
totals climbed — we were surprised when our waiter
showed up with our prize or let us know that we had
earned a $10 Club Cash award — aWESomE! The $10
Club Cash can often be immediately deducted from your total bill
or saved for a future visit (these do expire).
Beer fans have another club goal to strive toward. after 120 pints
they are made permanent honored members in the ½ barrel club
where their name is added to the side of a half-barrel in their local
Rock Bottom. Seem silly? depends how serious are you about your
micro-brew! did I mention mug Club pints are just a bit larger than
the standard size beer order? at some locations, you get to drink
out of your own specialized mug. We haven’t taken advantage of
this feature — but I have seen the steins hanging above the bar at
a local RB. How cool is that!
additionally, when you register your mug Club Card you get in-
vites to cool events like special beer tappings. We even got a tour
of the brewery, from the brewmaster himself, and an education on
the beer making process. Way to make us feel special.
Verdict: THUmBS WaY UP! all you have to do is show up (bring your mug Club card); Rock
Bottom does all the legwork. Oh, and I should mention the food, beer and atmosphere do keep us
coming back again and again. Try the ballpark pretzels, yum!
“We even got a tour of the brewery,
from the brewmaster himself, and an
education on the beer making process.
Way to make us feel special.”
•Program is FREE!
•Earn credit for visits.
•Special upsized mug for members.
•Cool prizes, zero hassle.
•attainable program goals – initial prize awarded
(& instantly redeemed) after just 5 visits!
•You must have your mug Club card with you.
•only one visit and four pints can be counted per day.
Things to know…You must be 21 to join the mug
Club. You must register your card online providing at
least your name and address or email. As always, be
sure to visit the website for full terms and conditions.
1Rock Bottom. July 9, 2009. <http://www.rockbottom.com/mugClub.php>
CHeCK oUt tHe CooL prIZeS1:
5 visits: Logo Pint glass
10 visits: mug Club Baseball Cap
25 visits: growler Cooler
35 visits: mug Club T-shirt
50 visits: mug Club BBQ set
50+ visits: Every 10th visit after 50, get $10 Club Cash
120 pints: Plaque in 1/2 Barrel Club
*Prizes subject to change
Rock Bottom
Probably one of the more unique restaurant loyalty programs out there.
Why? They are, “the club that rewards you just for visiting.”
Each issue we’ll be sending our secret shopper out to experience a particular brand frst hand. our shopper will sign up for the loyalty
program, if one is available, and interact with the company at least three times, then share their experience with all of us. Your suggestions
for the next brand review are welcomed: email your suggestions to mailbag@loyaltymanagement.com
56 Loyalty Management™ | Loyalty360.org
sneak peek
Loyalty Management™ | November 2009 57
The top three areas of focus for the Engagement Expo are:
•Insight into what engagement means and how to manage that across the
multi-cultural, multi-faceted employee and client constituencies.
•Social networking and how to leverage this in your marketing communication
strategies to create more engaged participants. Tools such as best practices,
processes and analytics will give you much more granular insight.
•Cross over of emerging (wireless, mobile) and traditional medium to make the
most of your engagement marketing strategies.
Brought to you by Loyalty 360 and ePrize, the Engagement Expo is a forum
to openly discuss today’s challenges and their solutions by bringing together
best-in-class speakers and partners. Join us for the inaugural Engagement
Expo, to connect with leaders from companies around the globe - seeking a
better understanding of engagement and loyalty.
Everyone is talking about engagement. What does this mean to you?
Whether it’s engaging your customers or your employees, discover the latest
theories, understand their effectiveness, learn about the new trends and
determine how to incorporate social media effectively into your strategies.
November 18 & 19, 2009 • Chicago, Illinois
sneak peek
Mark Johnson
President & CEO
Engagement Expo
58 Loyalty Management™ | Loyalty360.org
•four management & leadership competencies
•four customer expectations
•four employee expectations
•the customer experience cycle
•why the customer does not come frst
•why loyalty is not enough
•why job & purpose must be clear to every
Don’t miss this opportunity to learn from Cockerell about creating magic in
your own organization and business. You’ll come away with valuable skills
in leadership, customer service and employee engagement.
•how vision statements work & why they are
•the most important behavior of a leader
•what a leader’s real role is
•the ten common sense strategies that enable
your organization to create magic too…just like
“… Lee Cockerell delivers his ideas about leadership in a common
sense way that can really reach people and help them improve their
efectiveness at work, at home and in their communities.”
- Ken Blanchard, co-author of The One Minute Manager and Leading at a Higher Level
Learn from Lee Cockerell, the former Executive Vice President of Walt Disney World, how
to create DISNEY magic in your organization; which begins with world class employee
performance, leads to committed loyal customers, and fnally to strong business results.
keynote speaker
Lee Cockerell
creating the magic:
how great leaders earn
loyalty & drive engagement
Disney’s top trainer
& former EVP of Operations
for Walt Disney World Resorts
sneak peek
Loyalty Management™ | November 2009 59
First Disney childhood memory?
Well, Mickey Mouse was always there so I remember
him most.
Favorite Disney movie?
The Lion King … great leadership example for
children and adults. The music is fantastic.
Favorite Disney theme-park ride?
Rock ‘n’ Roller Coaster … How can you not like going
zero-to-sixty miles an hour in two seconds? When
my grandchildren were young, I spent a lot of time in
Fantasyland on the slower rides.
If you were a Disney character which would you
be and why?
Tigger. He and I spent a day together when I joined
Disney and we understand each other. He and I are
both high energy.
If you could…Which Disney character would you
most like to work with and why?
Buzz Lightyear. I would love to hitch a free ride to
infnity and beyond.
Which talent would you most like to have?
I wish I had musical talent. I would love to be able to
sit down at a party and play the piano.
Engagement Expo Keynote speaker and former Executive Vice
President of Operations for Walt Disney World Resort
As the Senior Operating Executive for nine
years, Lee led a team of 40,000 Cast Members
and was responsible for the operations of 20
resort hotels, 4 theme parks, 2 water parks,
a shopping & entertainment village and a
sports and recreation complex, in addition to
the ancillary operations which supported the
number one vacation destination in the world.
One of Lee’s major and lasting legacies was
the creation of Disney Great Leader Strategies,
which continues on as the primary resource for
developing the 7,000 leaders at Walt Disney
World. He is now dedicating his time to public
speaking, authored a book on leadership,
Creating Magic…10 Common Sense Leadership
Strategies From a Life at Disney (Loyalty Reads
pg. 21), and performs leadership and service
excellence consulting for select companies, as
well as the Disney Institute.
“Treat everyone with respect, make them feel special, treat
them as individuals and develop and educate them so they
can have a better life.”
getting to know getting to know … Lee Cockerell
60 Loyalty Management™ | Loyalty360.org
What inspires you?
Teaching others about leadership, man-
agement and service excellence. I love it
when they call me back years later and
thank me.
Lee Cockerell takes a
moment with his family to
celebrate the new window
dedicated in his honor.
Lee Cockerell poses with
Mickey Mouse after the
unveiling of his “tribute”
window on Main Street
U.S.A.® in the Magic
Kingdom®. The window
reads: The Main Street
Diary: True Tails of Inspi-
ration, Lee A. Cockerell,
sneak peek
Most memorable Disney customer experience?
A man called my ofce one evening at 5 pm. My
assistant told me that he was calling to report
that the monorail was broken. I immediately
took the call. It turns out that his grandson’s
toy monorail broke and he called Disney Guest
Service to fnd out how to get it fxed or replaced,
but could not reach anyone as Guest services
was operating on limited hours to save money
(something I was not aware of). Over the years he
and I became good friends. His call taught me how
important it is to take a guest’s call. After his call
we did not operate the guest services department
on limited hours any longer.
How do you inspire Magic in others?
Treat everyone with respect, make them feel
special, treat them as individuals and develop and
educate them so they can have a better life.
What’s your personal motto?
“Be careful what you say and do as they are
watching you and judging you.”
What are the qualities you most admire in a
Humility, trustworthiness, and passion for what
they are doing.
Which people have made the most impact in
your life?
My mother and grandmother. My mother taught
me discipline and my grandmother taught me that
everyone is important and to be kind to everyone.
Most defning moment in your career?
Getting fred from a job in 1973 that my wife
Priscilla told me not to take. I told her, “I know
what I am doing.” The hotel went bankrupt 90 days
after I got there. I now listen to Priscilla. The day I
was fred she did not even say, “I told you so.” We
have now been married 41 years because I learned
to listen to the experts at home and at work.
Share with us your last customer “ah-ha”
A guest wrote to me to tell me that Disney World is
the only place in the world her family can go on va-
cation because their son is paralyzed from the neck
down and must have all of his food pureed. She
told me that no matter what restaurant they go to at
Disney that when they make this request, the chef
comes out and discusses exactly their needs and
then takes care of it with no problem. She went on
to tell me that other restaurants outside of Disney
do not appreciate such requests and make dining
out a real hassle. I have learned over the years
that everyone has a problem that you don’t know
about, which makes me kinder and helpful to all,
no matter what attitude they display. That is what
we try to teach every single Disney Cast Member.
Loyalty Management™ | November 2009 61
sneak peek
corporate social
doing good engages
employees & customers-
& drives the bottom line.
Bottom line: People - customers and employees - want to be associated with companies that are
good corporate citizens. However, simply engaging in cause marketing is not enough to
drive results. Companies need to distinguish themselves by putting a meaningful
stake in the ground that resonates with their consumers and their employees. Only
by making this connection will they create and implement strategic, integrated CSR programs that
build an overall positive company reputation, increase engagement and loyalty of key stakeholders
(customers, employees, shareholders, and others), and ultimately, drive the bottom line.
•Giving back and “doing good” is good for business and, therefore, should become an expected business strategy.
•Externally-facing CSR programs drive consumer behavior.
•Because internally-facing CSR programs allow employees to be better corporate citizens, these initiatives create
loyalty and engagement, which leads to increased retention, performance, and productivity.
Golianis will explain some of the key challenges companies face as they embark on the
CSR journey and present strategies for overcoming them.
Athena Golianis Kim Marotta Barbara VanSomeren
Owner & Founder of AGW Idea
Group, Inc.
Vice President - Corporate Social
Responsibility of MillerCoors, llc
Vice President - Marketing,
Beltone Corporate
Brad Keown
hear from thought leaders
at top companies like …
Midwest Director of Sales of Facebook
Consumers are talking about your brand, do you want to be part of the conversation? Brad
Keown will be discussing ways that brands can leverage consumers social graph and become part of
the conversation. 250MM people are on Facebook and understanding how to leverage the platform
will help small, medium, and large businesses develop relationships with your customers and increase
your sales.

62 Loyalty Management™ | Loyalty360.org
sneak peek
Ivan Frank
Chief Marketing Offcer of ePrize
First, you have to know the four components of engagement and apply them. Each has a
discipline with rules, structure and analysis. But, working the science alone only gets
you so far.
The most important aspect of engagement is to apply gray matter and creativity as the fnal
ingredients. ePrize will show you how to marry the science and the art. Attendance at this
session may create inspiration and engagement. Join us at your own risk.
John Fleming, Ph.D
applying behavioral
Principal & Chief Scientist — Customer Engagement
& Human Sigma for the Gallup Organization
The secret to driving higher levels of growth and proftability in today’s hyper-competitive
business environment hinges on leaders working with the human nature of their employees
and customers. Employees and customers must be viewed as people frst, and employees and
customers second.
•Learn the basic
principles of an emerging
management discipline,
behavioral economics
•Hear case studies of
companies who applied
behavioral economics to
their business model and
how they outperformed
their peers, in a one-year
“By looking beyond the rational thoughts and feelings
of employees and customers, and going to the emotional,
business leaders can fnd the answer to why customers will
pay more to purchase a product from another company
and why employees will forego a large increase in salary
to stay at a job at which he excels.”
engagement is a
science & an art
Interested in hearing from our featured speakers?
Register NOW at engagementexpo.com – Spaces are limited.
Loyalty Management™ | November 2009 63
sneak peek
Social Media represents a powerful vehicle for reaching customers, however, it faces some daunting customer
engagement challenges. The questions remain; how do marketers harness social media and what is social
media’s true role in customer engagement?
•The psycho-economic principles that underlie customer indifference and a focus on the best trade-off
between price and convenience.
•The psycho-economic principles that get customers emotionally engaged in a manner that leads to
greater desire and demand for the outcomes the product or offering enables.
•How these principles can be used to increase customer engagement in social media initiatives.
•How to envision and implement a marketing automation system that can manage large customer databases, yet
enable the individualization necessary for sustained, meaningful customer engagement.
Connie Hill Dr. John Todor
the role of social media
and its impact on customer
President & Founder of TFC, Inc. Managing Partner of
The Whetstone Edge
Consumer engagement with new and old media is evolving rapidly. “New” media technologies are becoming
more regarded and relied upon as media platforms - by marketers AND consumers. Measures currently
used to evaluate media touch points are not considering variables relevant to today’s consumer, and
therefore are not an accurate predictor of in-market behavior. While the value of media entities (and
combinations thereof) can be defned by their size of the audience or their demographics,
they cannot be uniquely differentiated unless we examine the levels of engagement they
engender. Brand Keys will present a real consumer-centric, engagement-based holistic measure for cross
media planning..
Robert Passikof Jim Harris
contemporary engagement
using engagement to measure
cross-media marketing
Founder & President of Brand
Keys, Inc.
CEO of Offce Media
64 Loyalty Management™ | Loyalty360.org
Rajat Paharia
driving engagement & revenue
with game mechanics
Founder & Chief Product Offcer of Bunchball
Status, achievement, reward, competition, self-expression: Rajat Paharia,
describes how to address and leverage these fundamental human
needs and desires through the use of mechanics from game design and
behavioral economics. Learn how companies like Comcast, NBC, LiveOps,
Warner Brothers and USA Network are using these mechanics with their
employees and customers to increase engagement, content creation and
consumption, time on site, visit frequency, loyalty, brand affnity and
•What game designers have know for years - how to incent and motivate
users through the use of mechanics like points, levels, leaderboards,
virtual goods, challenges, and real-time feedback.
•How “virtual” rewards are incredibly powerful (and cheap!)
•How to channel these mechanics to drive revenue through more page
views, innovative sponsorships that integrate brands in meaningful ways,
sales of virtual goods, and more.
•About behavioral economics: the biases and shortcuts that human
beings have in their decision-making processes, that cause them
to make irrational, but predictable decisions.
•Concepts like loss aversion, the decoy effect, anchoring, commitment &
consistency, scarcity, reciprocity, social proof and more.
•How these mechanics work across demographics and geographies: men,
women, kids, adults, U.S. and overseas.
read more about these sessions and
other engagement expo speakers at
sneak peek
Loyalty Management™ | November 2009 65
DON’T WAIT UNTIL SHOWTIME - ASK NOW! We want you to feel prepared so that your
show experience is the most valuable and enjoyable. Please do not wait until the show to ask
your questions. The more prepared we are to help address any show-time concerns, the better
we can provide the best show experience for you! Call us - we are happy to help 513.545.5612
or email info@loyalty30.org.
we look forward to seeing you in chicago!
Sheraton Chicago Hotel & Towers
301 East North Water Street, Chicago, IL 60611
The Sheraton Chicago Hotel & Towers welcomes you to the heart of the city. Overlooking the
Chicago River, the hotel puts you within walking distance of business, dining, entertainment
and nightlife.
Please visit engagementexpo.com to book your room.
If you haven’t registered, do so NOW! To ensure quality networking and interactive forum, this
conference has limited space; therefore we encourage you register early to ensure your place!
If you have registered, be sure to remind your colleagues, clients and peers. You don’t want
them to miss out.
Register online at engagmentexpo.com or by phone (contact Loyalty 360 at 513-545-5612.)
Time fies when you’re engaged! We are less than a month
out from the 2009 Engagement Expo. Participants, exhibitors
& sponsors: we want to make sure you are ready for the event.
sneak peek
66 Loyalty Management™ | Loyalty360.org
Loyalty Management™ | November 2009 67
Te mission of Loyalty 360™, the Loyalty Marketer’s Association, is to provide an
unbiased, market-driven, “voice of the customer” focused
clearinghouse and think tank for all loyalty, incentive/reward,
and engagement marketing needs, insights and responses.
To learn more about Loyalty 360 or to join, please visit www.loyalty360.org
We’re here for you
or a resource provided.
a partner found,
when you need a question
Loyalty 360 brings you the best of the best in loyalty marketing
and supports your customer strategy needs. Some of the tools we ofer include:
•a weekly e-newsletter “Tis Week in Loyalty”
•opportunity to view and post white papers, case studies, and research
•access to past Loyalty Expo presentations
•latest news and events happening in the marketplace
•“State of the Industry,” an interactive dialogue with seasoned industry leaders
•access to new community-driven forums on loyalty360.org
PERMIT No. 475
Sheraton Chicago Hotel & Towers
Chicago, IL • engagementexpo.com
18 & 19, 2009
The Engagement Expo will take a deeper look at the best practices of engagement and
experience management, focusing on brand, client and employee perspectives. We will
bring a strong list of speakers, sponsors, and exhibitors to address the various areas of
engagement such as word-of-mouth, experiential marketing,
social media, interactive media & technologies, forums
& communities, as well as traditional media — and how to leverage these as
part of your marketing communication mix.
If you're interested in sponsoring at this conference, please contact Mark Johnson at markjohnson@loyalty360.org
Lee Cockerell
“Creating Magic: 10 Common
Sense Leadership Strategies
from a Life at Disney”
former EVP, Disney Properties
Jim Harris
“Contemporary Engagement
Measurement: Using Engagement
to Measure Cross-Media
CEO, Oce Media Network
Robert Passiko
President, BrandKeys
4120 Dumont St
Cincinnati, OH 45226
4120 dumont St
Cincinnati, oH 45226
Prsrt Std
U.S. Postage
Permit No. 475

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