2017 Loyalty Management Magazine Q1

VOLUME 10 NUMBER 1 | WINTER 2017
Online vs. In-Store:

Striking a Balance
with rue21
IN THIS ISSUE:
Beyond Points with

Buffalo Sports Ownership
Cigna Approaches Customer

Centricity in Healthcare
SunTrusts Omnichannel
Understanding
2 Loyalty Management | WINTER 2017
In this Issue...
WINTER 2017 | VOLUME 10 NUMBER 1 | LOYALTY360.ORG
FEATURES
10 12
For PSE-run Buffalo Sports SunTrust Strives to
Teams and Loyalty, Its Not Know its Clients in an
Just About Points Omnichannel World
Mark Johnson | Loyalty360 P.F. Wilson | Loyalty360
14 16
Balancing Online with Cigna Customer-Centric
Brick-and-Mortar Helps Approach and the Quest
rue21 Provide a Winning for Healthier Outcomes
Customer Experience P.F. Wilson | Loyalty360
Mark Johnson | Loyalty360
LOYALTY FORUM: IN EVERY ISSUE

14 LETTER FROM THE EDITOR 30 BEST PRACTICES
46 LOYALTY EXPO
CX and the art of storytelling
16 BEHIND THE BRAND Confirmit
Brian Venuti, Luxottica Group PREVIEW
32 LOYALTY FORUM: Q&A
18 360 INSIGHTS
Mark Johnson, Loyalty360 34 STATE OF THE INDUSTRY
Why the Future (and Loyalty) Belongs Loyalty Management Editorial
18 TECHNOLOGY, TRENDS & REWARDS to Millennials & Production Team
Where Is Mobile Marketing DataCo Solutions P.F. Wilson - Editor-in-Chief
Headed in 2017? Mark Johnson - Contributing Editor
3Cinteractive 36 TECHNOLOGY, TRENDS & REWARDS Carly Stemmer - Contributing Editor
Give Them What They Want: Shawn Cunningham - Design Director
20 STATE OF THE INDUSTRY Consumer-Controlled Content David Rickerd - Design
Members Want Options, Steve Taggart - Content Strategist
Drawshop Crescent Printing Company - Print Production
Not Just Rewards
Baesman 38 TECHNOLOGY, TRENDS & REWARDS
Creating Engagement with Contacts
22 TECHNOLOGY, TRENDS & REWARDS Personalized Interactive Videos Article Submissions & Advertising:
Marissa Hanson
Driving Loyalty and Engagement HapYak Client Relations/Account Manager
with Prepaid Commerce marissahanson@loyalty360.org
CashStar 40 TECHNOLOGY, TRENDS & REWARDS 513.800.0360 ext. 131
Driving Shopper Engagement through
24 STATE OF THE INDUSTRY Digital Technology 2017 Loyalty360, Inc. and/or its affiliates. All Rights Reserved.
2017: The Year of Social Loyalty Synchrony Financial Reproduction and distribution of this publication in any form without
Chirpify prior written permission is forbidden. The information contained herein
42 STATE OF THE INDUSTRY has been obtained from sources believed to be reliable. Loyalty360
26 BEST PRACTICES Rewards and Incentives in the Real World disclaims all warranties as to the accuracy, completeness, or adequacy
of such information. The opinions shared are those of the contributing
7 Ways to Create a Seamless Virtual Incentives authors and not necessarily reflective of Loyalty360 and/or its affiliates.
Experience Between Mobile and In-store Loyalty360 shall have no liability for errors, omissions, or inadequacies
Clutch 44 LOYALTY FORUM: FEATURED TECH in the information contained herein or for interpretations thereof. The
opinions expressed herein are subject to change without notice.
Featured Technology, Products,
28 BEST PRACTICES Advancements & Technologies
How Your Big Data Can Grow Traffic
Cogensia
Loyalty Management | WINTER 2017 3
FROM THE EDITOR
Making Sense of the Ever-Changing World of Loyalty Marketing

We are well into 2017 and with a new year comes new Many of these iconic brands will also be participating in the
challenges in loyalty marketing, as well customer experience, 2017 Loyalty Expo, powered by Loyalty360, being held in
customer journey, and any discipline that brings brands Orlando at the Caribe Royale. This years Expo will be the
closer to consumers. Its an exciting time at Loyalty360, as biggest yet with some of the most widely respected and
we continue to develop new and exciting initiatives to help recognized companies and organizations from a variety of
our members improve their loyalty marketing efforts. verticals, all gathering to discuss the latest challenges and
opportunities facing brands today as they look to improve
One of the ways we help our members discover the latest their loyalty marketing, customer experience, and customer
trends, ideas, and solutions is through the magazine youre journey programs.
holding right now, Loyalty Management. Inside, youll find
articles and interviews featuring the most innovative brands This exchange of ideas and best practices, as well as
in the loyalty marketing space, many of which have been expert insight on the latest trends and innovations in loyalty
generated by our members. marketing, is the cornerstone of Loyalty360. Through a
website rich in content, informative and lively print magazine,
Within the pages of this issue, youll find a variety of and conferences designed to bring together the top loyalty
perspectives and viewpoints on a number of marketing marketing thought leaders, Loyalty360 is truly your voice of
disciplines. Get caught up on the latest technology trends the customer-driven resource.
with insights and observations from 3C, The DrawShop,
Idomoo, Synchrony Financial, and T3. Gauge the latest and Through these various platforms, we hope youll become
greatest best practices with input from Cogensia, Confirmit, more engaged with our content and look to Loyalty360 as
CrowdTwist, Lenati, and Signal. Finally, the State of the an integral part of your organizations loyalty marketing
Industry is viewed by such diverse brands as Baesman, strategy. The future of customer experience, customer
Chirpify, Data Co., SessionM, and Virtual Incentives. relationship, and, of course, loyalty, are shaping up to be an
exciting journey for brands across a variety of markets and
This edition of Loyalty Management also includes feature industries. Loyalty360 remains committed to guiding brands
pieces on Pittsburgh-based clothing retailer rue21 and its along this path and helping our members achieve their loyalty
efforts to create a seamless experience between its in-store management goals.
and online platforms. In a conversation with Loyalty360
CEO/CMO Mark Johnson, Joel Layton, VP, digital marketing
for rue21 reveals how product returns have become the key
to bringing these two parts of the business together.
Read about how Cigna Health Insurance is redefining loyalty INTRODUCING

from a different perspective. Where its primary customers
were once businesses who offered health care coverage to
their employees, Cigna is now focusing on that end user.
Another fascinating interview takes place with SunTrust SVP

of bankcard products Russell Randolph, who explains how
his brand stays at the forefront of customer needs across a
Data Enhanced Video
variety of channels. Similarly, the My One Buffalo program,
which allows fans of that citys Bills, Sabres, and Bandits
A breakthrough in REAL TIME
sports franchises, to earn benefits and experiences based PERSONALIZED video marketing
on their loyalty. There is also a fun piece in which we look
Behind the Brand and get to know Luxottica Group Vice Maximize your customer engagement with
President of Global CRM, BrianVenuti. real time personalized digital video.
Increase the ROI of your digital marketing
Increase sales and customer satisfaction
Decrease customer services calls
and average talk time
Increase success of cross-marketing efforts
P.F. Wilson
Editor-in-Chief Explore DEV go to datacosolutions.com
Loyalty Management or call 1-847-290-0636 x 228 to learn more.
PFWilson@loyalty360.org

ENGAGEMENT
DRIVES LOYALTY.
70.4% of consumers dont receive points for engagement in loyalty
programs, but more than half (54.6%) want to receive them.*
*The CrowdTwist Loyalty Across the Generations Report
CrowdTwist is an industry-leading provider of comprehensive multichannel loyalty

and analytics solutions that drive engagement and incremental spend, leading to
better customer data, stronger insight, and more personalized experiences.

LOYALTY FORUM: BEHIND THE BRAND
BehindtheBrand
WITH BRIAN VENUTI | VICE PRESIDENT GLOBAL CRM, LUXOTTICA
Brian Venuti is the vice president of Global CRM at Luxottica Group and is based in
Cincinnati. He leads global CRM for Luxotticas patient, optical, and sun businesses.
Brian supports Luxotticas extensive retail network of approximately 8,000 stores, with
LensCrafters and Pearle Vision in North America, OPSM and LensCrafters in Asia-Pacific,
GMO in Latin America, Salmoiraghi & Vigan in Italy and Sunglass Hut worldwide.
With a background in marketing, CRM, and customer experience, Brian has previously
worked for and with some of the most recognized brands in the world including Capital One,
MasterCard, Discover, Dun and Bradstreet, Sears, and E-Trade.
At Luxottica, Brian and his team are accountable for delivering personalized CRM campaigns,
which contribute hundreds of millions of dollars in incremental revenue to the global
retail business. His team also owns and manages the patient platform that facilitates the
scheduling of millions of optical appointments annually. Additionally, he oversees the loyalty
strategies across all retail brands, including the Sun Perks loyalty program for Sunglass Hut.
Through the efforts of Brians team, customers are able to unlock a more personalized
experience with the brands they love like Ray-Ban, Oakley, and Persol. Mr. Venuti was kind
enough to let the readers of Loyalty Management get to know him better by answering a
series of questions about his life on and off the job.
IF YOU COULD PICK ONLY ONE THING, WHAT DO YOU BELIEVE

MOST INFLUENCES A GREAT CUSTOMER EXPERIENCE, IF YOU COULD
AND WHY?
If the experience directly involves a human interaction, I would
HAVE ONE
say the quality of the service/sales person. He or she will make
or break the experience. Digitally, it has to work. Basic and
SUPER POWER,
consistent is better than sexy and inconsistent. WHAT WOULD
WHAT DO YOU LIKE DOING IN YOUR SPARE TIME? IT BE?
I have two little girls under 3, so my wife and I are trying to Wolverines regenerative
treasure this stage of parenthood. healing power. Getting
old stinks and I miss the
reckless abandon of
WHAT IS YOUR FAVORITE MOVIE? my youth.
Big Fish.
Fantasy, drama,
action, love,
it has it all. WHAT TREND OR TECHNOLOGY SHOULD MARKETERS
EXPIRE AS A FAD OF THE PAST?
QR codes. I know some companies still use them, but I dont
like technology with declining adoption.

1
QUICK FIRE QUESTIONS*
WHAT IS YOUR
2
WHAT IS YOUR PERSONAL MOTTO? YES
FAVORITE WORD?
Keep things in perspective. Life can get overwhelming if you dont.
WHAT IS YOUR LEAST
3
NO
FAVORITE WORD?
WHAT DID YOU WANT TO BE WHEN YOU WERE GROWING UP?
An advertising executive. Interestingly, I now strongly prefer being WHAT TURNS YOU ON
4
on the client side. CREATIVELY, SPIRITUALLY, RESPECT
OR EMOTIONALLY?
5
WHO HAS HAD THE MOST INFLUENCE ON YOUR PROFESSIONAL WHAT TURNS YOU OFF? HYPOCRISY
LIFE, AND WHY?
My manager. As the researchers say, people are most influenced to
WHAT SOUND OR NOISE DO
6
stay or leave a company by their manager. OCEAN WAVES
YOU LOVE?
WHO IS YOUR FAVORITE MUSICAL ARTIST OF ALL TIME?

WHAT SOUND OR NOISE DO A CRYING BABY IN THE
7
U2. They are forever relevant and awesome. YOU HATE? MIDDLE OF THE NIGHT
WHAT WAS YOUR LAST AH-HA CUSTOMER EXPERIENCE? WHAT PROFESSION OTHER SOMETHING WITH
8
THAN YOUR OWN WOULD PROFESSIONAL SPORTS
WHAT MAKES IT MEMORABLE? YOU LIKE TO ATTEMPT?
I was just at a restaurant and Yelp sent me a notification with

WHAT PROFESSION WOULD
9
content about that restaurant when I walked in. Amazing relevancy POLITICS
YOU NOT LIKE TO DO?
to get the scoop on reviews, but more importantly, it kept them
front of mind for me to leave a review.
IF HEAVEN EXISTS, WHAT
WOULD YOU LIKE TO HEAR WELL DONE GOOD AND
GOD SAY WHEN YOU ARRIVE FAITHFUL SERVANT
AT THE PEARLY GATES?
*Inspired by James Lipton on Inside the Actors Studio we asked Brad to share his quick-fire response to
the questions originating from the French series, Bouillon de Culture hosted by Bernard Pivot.

LOYALTY FORUM: 360 INSIGHTS
The Challenge of Measurability in an Era of Continuing

Change in Customer Loyalty
Mark Johnson
CEO/CMO
Loyalty360
We continue to see more terms in our industry that lack definition, There is plenty of new technology that is meant to create simplicity,
structure, and an explicit understanding of what these new terminolo- that often does the opposite, with new offerings being introduced
gies actually mean. As we talk to brands on a daily basis, we ask them constantly. How one technology provider may define, sell, or measure
about how they define customer loyalty, how they socialize customer a customer experience or customer loyalty program is completely
loyalty, and how customer loyalty can impact their organization. different from peer organizations. The topic of the day, the shiny object
of the moment, really drives focus from within many organizations, yet
There is a divide between those who talk customer loyalty and those they still struggle with how to leverage technologies in an integrated
who talk to the loyalty program. Loyalty360 has always believed that fashion that help empower the relationship, create reciprocity, and
the loyalty program is but a piece of a comprehensive strategy that strengthen the brand promise. More and more brands are realizing
brands should enable to create total and comprehensive customer and they must focus on customer loyalty and be able to engage the cus-
brand loyalty. tomers in a unique way.
We also continue to see the growing complexity and increasing num- Still, they struggle with regards to benchmarking and with what
ber of technology platforms that are intended to create simplicity, but technology they should use. As we ask brands what we can do for
have done the exact opposite. Terms such as frictionless loyalty and them, and what keeps them up at night, the growing and diverse set of
empowered engagement are often heard but dont necessarily help responses is quite interesting.
brands in their customer journey. In fact, they tend to do the opposite.
Over the next year, Loyaty360 is going to work with a board of advisors
The need for standards, definitions, and a more detailed ability for to create a series of certifications and standards as well as continuing
brands to benchmark themselves has become quite apparent. education resources that will help create simplicity and bring unity to
the industry while coalescing thought around customer loyalty.
As we talk to brands, we continue to see an increasing divide between
the brands that are doing well in creating customer loyalty and unique Again, its not about the loyalty program, its about driving true brand
experiences that are based on reciprocity, with a detailed understand- advocacy and true customer loyalty, based on a set of experiences that
ing of their customer, and those who struggle. that individual has with that brand. We look forward to bringing more
of our thoughts to the process and to the industry over the next six to
The challenge is, brands still have a difficult time listening to their cus- nine months.
tomers. Hearing their customers is a passive process, but active listen-
ing and engagement is something that brands really struggle to do.
It all consistently breaks down into an 85 to 15 ratio, where 15 percent

of brands have created the culture, technology, the process, and
alignment with the organizational mission to truly put the customer The challenge is, brands
first. The other 85 percent, though, continue to struggle, whether
its due to the lack of understanding of where they are in their
still have a difficult time
customer journey, where they are in their ability to execute, or listening to their customers.
most importantly, in their ability to truly hear and understand
their customers. Hearing their customers is a
Its a unique time in our industry to help those who are strug- passive process, but active
gling and coalesce thought around the big picture idea of
customer loyalty.
listening and engagement
is something that brands
really struggle to do.

JOIN US IN ORLANDO, FLORIDA FOR THE
May 2-4, 2017

Caribe Royale Orlando
AD - HEAR FROM
Top brands, unique networking opportunities, and sessions
BRANDS SPEAKING
full of the exclusive insight needed to make your organizations
loyalty efforts a competitive edge.
For more information, please visit loyaltyexpo.com or contact
Mark Johnson
MarkJohnson@loyalty360.org
Hear from great speakers such as
loyalty360.org
FEATURES
For PSE-run Buffalo Sports Teams and Loyalty,

Its Not Just About Points
The pro sports calendar in Western New York is pretty much owned by Pegula Sports & Entertainment.
The sports conglomerate owns the citys football, hockey, and lacrosse teams. Knowing that the fans of
those teams were already loyal, PSE sought a different way to reward the faithful. Scott Miner, director of
business solutions at Pegula Sports & Entertainment explains.
Mark Johnson
Loyalty360
If youre watching pro sports in Western New Scott Miner, director of business solutions at
York State, theres a good chance youre watching Pegula Sports & Entertainment. Its not really a
a team owned and operated by Pegula Sports & rewards program. We never call it a rewards or
Entertainment, or PSE. The company was formed loyalty program. Rewards programs will tell you
by Kim Pegula to bring all the Pegulas interests information you already know and not drive new
under one umbrella. PSE owns the NFLs Buffalo fans, affinity, or loyalty.
Bills, the NHLs Buffalo Sabres and their farm To that end, PSE avoids the terms loyalty
team the Rochester Americans of the American program or rewards program. For us this is
Hockey League, as well as the Buffalo Bandits of a status program, Miner explains. This is a
the National Lacrosse League. PSE also owns the program that allows you to earn status for your
arena in which the Sabres and Bandits play. affinity with our brands, whether thats football,
hockey, lacrosse, or entertainment. We never
Tying all of the Buffalo based teams together really go down that road, of points and loyalty.
is My One Buffalo, an all-encompassing status
program. It is a full circle initiative for us, says

This is a program that allows you to earn status for your affinity with our brands, whether thats
football, hockey, lacrosse, or entertainment. We never really go down that road, of points and loyalty.
Garden-variety sports reward or loyalty programs typically There are three groups of fans, Miner explains. A typical
offer points for buying tickets and items at the concession football fan is one type of user. A hockey fan is another type
stand. Points can then be redeemed for merchandise. and then there is a randomness in that third group because it
could be anybody.
With a loyalty program, youre rewarding a fan for their
interactions with your brand, Miner says, which doesnt
What PSE found in the third group are those willing to cross
really work because they were already there. No one is going
over. But we havent found the symmetries within them yet
to come to a game to get points to get a free hat. But what you
because it could really be anything, adds Miner. Some people
can do is leverage the fans you already have in-venue.
are in it for entertainment. Some people are in it for sports.
Some people are in there just for the excitement. Its all over
Its a benefit to be a part of this program rather than just
the place. Were consistently analyzing our data-set to find
getting points and goods, Miner says. And the benefits
factors that are common across all those fans.
arent just physical loss-leaders. Instead of them being loyal
to the team or teams, PSE is showing loyalty to the fans and
bestowing status as a way to differentiate themselves within
their community.
We launched this program at the beginning of this past

football season, Miner says. We had an existing program
called Sabres Fan Advantage that was our first foray into
loyalty forte in pro sports. With that, we wanted to kind of dip
our toe in the water to see what it looked like.
PSE learned some typical lessons that organizations learn

when they start a loyalty program. Your fanatical fans are
going to do everything you ask them to do, Miner points out
Many pro sports teams, in an effort to appeal to millennials,
as an example.
have started to concentrate on the experience within the
experience, including Wi-Fi, larger video screens, and more fan
In the fall of 2014, Pegula Sports & Entertainment acquired the
interaction during home games. My One Buffalo helps address
Buffalo Bills. With the Bills in the fold, PSE realized that a better
that challenge for PSEs teams.
profile of the fan was needed. That led to My One Buffalo with
the goal of creating an overarching program that touches all
Weve added some features in there that take care of some
the different teams, at least in Buffalo.
of those items, Miner says. Its tricky because what I might
find important at a game you might not. So, what we did
Its not hard to get an NFL fan involved, Miner says. Most
is we hit the high-level things that we feel are more facility
people in the US are fans. The tricky part is to find out where
efficiencies. Weve gone in and said that access control is an
and what else they touch as well as what they are doing
issue. Wait times at concession stands are issues. Lets try to
in-venue. Were finding that a good segment of our fans
improve those areas. Im at most games so I make it a point to
engage with the other brands that we work with. In addition
walk around constantly and just watch what people are doing
to the Bills, Sabres, and Bandits, PSE also owns a sports
during the game and what theyre doing out of the game, or
bar and restaurant in Downtown Buffalo thats part of the
not during gameplay.
HarborCenter complex. The arena within is the home of the
Sabres and Bandits.
Now if Im in the Sabres arena, he continues, and I walk the
concourses during gameplay, theres nobody there. Its like the
Were seeing that a lot of people are going there as well,
arenas empty because everybodys in their seats engaged with
Miner says. Theyll go to a Bills game, and then theyre buying
the on-ice action. Thats what I want.
Sabres tickets and theyre going to the restaurant. Were able
to really diagnose and find out whos doing what. Id say a lot
of our fans are highly engaged across the different brands.
The sports options are limited and we do own the two largest
brands in Western New York. We have seasons that start in
September and end in April, so we take a good chunk of the
year out of peoples timing simply with our brands. Buffalo
also has a minor-league baseball team, the Bisons, as well as
an NPSL soccer team, FC Buffalo.

FEATURES
SunTrust
Strives to Know
its Clients in an
Omnichannel
World
P.F. Wilson
Loyalty360
Like many industries, banking has changed drastically over the past half
century. Atlanta-based SunTrust is one institution that is at the forefront of
meeting the needs of customers across a variety of channels and platforms.
SunTrust is a purpose-based organization, says Russell Randolph, SVP,

bankcard products for SunTrust, and one of the things that were really
One indicator of success

focused on with our clients is helping improve their financial confidence
and giving them the tools, products, and solutions to help them make
better financial decisions.
To that end, SunTrusts rewards program, from a credit card perspective,

isnt so much what we
is designed to be easily integrated with the banks checking products.
So, we have a relationship cashback bonus, Randolph explains. When
provide today, says
clients redeem rewards from their SunTrust credit cards to their SunTrust
deposit accounts, they get a bonus kicker. The amount varies based on
Randolph, but over
the depth of relationship that the client has with us, but that integration
was intentional and connects back to this notion of financial confidence
time with the client, are
and making good financial decisions.
we helping them meet

The success of the program, both from the banks perspective as well
as the consumers, relies on engagement. We think about engagement different needs?
maybe a little more broadly, Randolph says. We look at things like
how our clients use the products and services. Thats one measure. The
second is really around loyalty and how long a clients staying with the
product and deepening their relationship. We then must determine if we
are meeting more of our clients needs.
Through SunTrusts branch centers, the bank engages clients in a needs-

based discussion of where theyre going. One indicator of success isnt
so much what we provide today, says Randolph, but over time with the
client, are we helping them meet different needs? And obviously, credit
cards help you pay for things that you need and want. For some clients,
they may serve as a borrowing solution and a way of consolidating
high-cost debt. One of our card products specifically helps with debt
consolidation.

That card, called Prime Rewards, allows balance transfers on the card
with no transfer fee for the first 60 days. The balances transfers are at
variable rate of prime, which, as of press time, is around 3.75 percent for
We
up to three years.
That type of product isnt necessarily unique, but we provide the kicker, look to technology
as I was talking about, Randolph adds, so with us you also get rewards
with that product, which is unique in the industry. The trend, according as a way of providing the
to Randolph, is around not just building products but looking for ways to
integrate them more with other relationships that clients have with their speed, the ease-of-use
bank.
While this helps the banks bottom line in the long run, its also a more so that clients can bank
socially responsible approach on the front end.
I think we certainly want to lead in that regard, states Randolph, I think

through any channels
that they choose.

that what we do is try to stay very close to what our teammates and
clients are saying and what solutions they need both today and in the
future, and we try to build toward that each year. The proof is really in the
interactions that you have and the solutions that you have. But then the
evidence is whether that client actually finds a solution that works for
them and thats whats most important.
The various initiatives, programs, and products put forth by SunTrust as

well as other banks and financial institutions signals a change in customer
behavior. Its something SunTrust is on top of. It starts with what we
call the client experience, Randolph says. It starts with the client and
their need. I think the change that we see is really around mobile and
digital tools which have given clients more access to information. Their
expectations of how a sales and service experience should occur have
changed.
Customers now expect speed, ease, and overall efficiency along with
courteous service. We try to deliver on those, Randolph adds. We
look to technology as a way of providing the speed, the ease-of-use so
that clients can bank through any channels that they choose. The way
we think about it is, again, based on what the client wants from the bank
and what solution they want to have fulfilled through that channel at that
point in time.
This omnichannel approach is becoming more and more crucial for

success. I think our definition of omnichannel is know your client,
Randolph states. We have multiple channels to provide solutions and
service to clients, including banking centers, mobile banking, online
banking, ATM, and the phone channel. In each of those channels we try
to make available all of the products and services in which the clients find
value and make requests through those channels.
Many clients now move seamlessly across channels. You may have
clients do research and get their questions answered via the web,
Randolph says. But then they may want to actually walk in and meet the
branch manager because the branch is convenient to where they live, and
that is where they want to get the solution that theyre looking for. Maybe
its a credit card, maybe its some other service, a checking account, or a
deposit account.
SunTrust monitors cross-channel interactions to provide a better

customer experience. We see that clients have cross-channel
interactions, Randolph says. You know, they may use one channel
primarily for research or checking balances, which is pretty easy with
mobile and online banking. But maybe if they want to withdraw cash,
maybe theyre more comfortable doing that at the ATM. So, we see a lot
of mixed channel usage, and we think that thats going to increase.

FEATURES
Balancing Online with Brick-and-Mortar Helps

rue21 Provide a Winning Customer Experience
Traditional brick-and-mortar retailers often face challenges in balancing the in-store ad
online experiences. Pittsburgh-based rue21 is answering that challenge through a variety
of initiatives. Joel Layton, VP, digital marketing for rue21, explains.
Mark Johnson
Loyalty360
Like any and all retailers in apparel, or brick-and- has become easier over the years, but making
mortar retailers in general, were certainly hitting returns back through that same channel has not.
some headwinds, says Joel Layton, VP, digital Customers prefer to make exchanges and returns at
marketing for rue21. I think were doing a good job a physical store, even if they bought online.
of cutting through it. Were not getting beat up quite
as bad as others are, which is a net win. Because our footprint is so vast we have to
understand that, Layton says. We have to be able
While the waters remain choppy in to, by the nature of our size and product blend, and
the malls and shopping centers more importantly by the nature of our demographic,
in which the chain primarily understand fully how digital is affecting that. So, we
operates, rue21 is steadily have to ask ourselves is it free returns in stores?
growing its e-commerce
business. We have some To that end, rue21 is launching its ship-to-store
big dreams over the program. The question is how does that
next couple of years to eventually evolve from the perspective
make that a bigger play, of one day understanding
Layton says. Were real-time inventory
relatively new in pure in a store?
e-commerce. Our website
was turned on in 2013.
Were able to grow quickly
just because, in effect, at some
levels, were catching up. But Were
theres a real appetite for our stuff nowhere
based on our fairly massive twelve-hundred near there
store footprint. yet, Layton
says, but these
The growth, according to Layton, comes from are the things that
being able to help educate not only people inside were starting to
the organization but customers as well in terms of talk about.
how digital affects brick-and-mortar. And so really,
the goal is to become a good, solid e-commerce or We have this massive
omnichannel play, Layton adds, because ultimately footprint and people
thats how its going to go down for us. Were going are going into the
to right-size the digital because many of the efforts stores because on their
that I do as the head of digital marketing are to handheld they searched
support the stores. Thats part of my charter; to for rue21 Ts or rue21
drive traffic into the store. So, were embarking on tops, or tops in general.
some very interesting initiatives down that road. They see that pin on a
map and thats where
One way digital is driving traffic into brick-and- we are.
mortar locations is via returns. Purchasing online

markets, both from a taste type all the way to socioeconomic
class. We like to have affordable stuff that they can feel good about
themselves wearing. I think its the change in taste that you try staying
ahead of or keeping up with. It can be a fickle marketplace.
Understanding how to stay on top of those trends becomes a matter

of how best to communicate them. I think since we, frankly, are only
now gathering real consumer intelligence about our customers, Im
not so much worried about our changing customer, Layton says. Its
more about who our customer is and how we can keep them from not
changing on us and disappearing.
We had a very old-school mentality, Layton adds. We were going to

tell the customer what they want. And I think that was a philosophy
in retail that had merit in the 1980s and 1990s. But in the 21st century
it has, from my perspective, no merit at all. I think you need to really
understand who your customer is and ask and talk to them in a way
that you can get information and cater to their desires and their needs.
If you do that, things will work out well for you.
Organizations that try dictating the conversation instead of having

that conversation be two-way are going to struggle. I think we are
turning a corner to where we really understand who our customer is,
Layton insists.
Well, thats a digital play that started the transaction, Layton
continues, but how does it finish, and how do you ultimately serve That, of course, has been a challenge for many brands, not just ones
the customer best? in the fashion vertical. I think as you get your core settled and find
out who you are - a fashionable, great value company lets just
To help understand that, rue21 is in the process of putting a chief theoretically use that as who we are it opens the doors for people
customer officer in place. I could do some of the coolest digital of all socioeconomic and demographic types to join the party. Then
advertising and make some of the coolest websites out there, you start listening to what their tastes are and what their appetites
Layton says, but if the product isnt any good or if we dont know our are. Then youre able to plan, and you can sort of ride the waves along
customers were going to get ditched anyway. Thats just a fact. with them because in a fast fashion space youre turning over trends in
fashion at an incredibly rapid clip; weeks instead of months.
One area in particular that is booming online for rue21 is plus sizes.
Layton confesses that his organization isnt entirely sure why. I The key for rue21, according to Layton,
think were working towards that, from a hunch perspective, he is acquiring data and simply
conjectures, plus is not in the entire fleet, so I think a plus gal who is listening to what customers
not near a store doesnt have a choice. The other thing that I believe, want. Whether that is
and I think this is actually getting to be the case less and less, is through social listening
comfort level. A plus person may feel more comfortable purchasing tools, old-school
online. However, because body comfort and more openness and surveying, new-school
acceptance has come into society in general, I believe that factor is surveying online,
diminishing. But I think there is still something to it. in-store collection
of data at the POS
And while customers shopping for plus-size fashions are changing, to see where these
so are rue21s customers overall. I think more so in the methods that folks are at; look
theyre attempting to consume us, Layton says, and what I mean and scour over the
by that is how theyre trying to engage with us. They are really active data of what people
on social, just like everybody else, and really active on Snapchat, and are buying and not
wanting to tell their story. I think theyre changing in their fashion just try to anticipate
tastes as well. I think were seeing that as we adjust the merchandise what things are going
and the buys. into that buying cycle
instead of just buying
As others in the fashion vertical would likely attest, customers are heavy into the thing that is
looking for great fashion at a really great price. We do not serve a popular at the moment.
high-end demo in general, Layton notes. We look at underserved

FEATURES
Cignas Customer-
Centric Approach
and the Quest for
Healthier Outcomes
Like many health insurers, Cigna has two
customers: the employers that partner with
Cigna to provide benefits to employees and the
employees themselves. Balancing the needs
of both is a constant challenge. Rick Long,
global head of customer experience at Cigna,
discussed those challenges.
P.F. Wilson
Loyalty360
I think what really kind of turned it for us is a recognition that the insurance marketplace is really going towards customer service, says Rick Long,
global head of customer experience for Cigna and that health insurance service companys recent efforts to build a more customer-centric culture.
A lot of things that were put in place a few years ago, were certainly accelerated over the last six or seven years.
Like many health insurance companies, Cigna obtains most of its customers through
employer-provided health plans. To that end, Cigna is focusing more on the end users.
Employers may still be subsidizing an employees insurance choice because theyre
bringing in multiple insurance companies to have their workers choose from, Long
explains. We really felt that it was important that we distinguish ourselves with
customers to make ourselves their number one choice.
Its a new approach in the industry, and while others are starting to move in that
direction, Cigna appears to be leading the way. Id like to believe were out in front of the
curve, says Long, but you certainly do see it from several of our competitors. A number
of them have said that theyre going to do some new customer activities and focus more
on the customer. Certainly, with some of the products weve put out recently were a bit
ahead of them.
The key to that has been a bit of introspection on the part of Cigna. What we found,
Long reveals, is people will work at Cigna because they want to help take care of people.
They look at it as a noble cause. That for us is something that were able to
tap as we start to really kind of drive back toward customers.

What we found is people will work at Cigna because they want to help take
care of people. They look at it as a noble cause. That for us is something that
were able to tap as we start to really kind of drive back toward customers.
Were putting in place a lot of activities and a lot of mechanisms, Cigna

Long continues, that make sure we bring the customers voice and
customers experience into the organization so that our people can
One GuideSM
really feel and hear what the customers have to say. To me, other Cigna One Guide
big companies look at customers as numbers on a spreadsheet Customer Experience
and thats what we want to make sure is not happening. Overview on Youtube.
As one of the top five health care providers in the U.S., Cigna
is reflective of what is happening in the industry as a whole
according to Long. Its an industry that is notably complex and
notably fragmented, he says, and we have built around that
fragmentation in some ways. What Im doing to help change
the culture of Cigna is bringing together those fragments so its
seamless to the end customer.
Weve integrated all those things into a system that we call the
One Guide.
What weve done, kind of for the first time, Long continues, is integrate our administrative call
center and our clinical call center. Our pharmaceutical call center is also part of that. The behavioral
data is coming in there on the phone side so that you get one rep that can answer questions on those
boards as opposed to before when it was siloed.
Its also integrated with a new mobile app named myCigna. Weve
got pretty good reviews on that too, Long boasts. Weve taken a step
back from the traditional health insurer application, which tends to be
everything to everybody to really try to refine that down to the things
that we really know customers are coming for.
Getting this information digested, as it were, leads to better service for

customers which also means better health. It is in our best interest to
have healthy people, Long insists. That brings down our costs.
It is this information that can lead to healthier outcomes not just for
Cigna customers but industry wide.
We see all the medications that people buy, Long says. We see all
the procedures people have. That all comes through us. Were helping
providers who have a big job on their hands to be able to sift through all
that information and understand what their patients are doing. We can
tell if a patient is actually getting the best care possible.

TECHNOLOGY, TRENDS & REWARDS
Where Is Mobile
Marketing Headed
in 2017?
Margie Kupfer
Vice President Marketing INNOVATING COUPON DELIVERY
3Cinteractive
Retail marketers will be focusing on coupon delivery in 2017.
Studies have shown that 40% of consumers dont make
2016 was the year of Pokmon Go, a purchase simply because they left their coupon at
AI, chatbots, mobile video, and home1. Mobile-enabled coupon delivery eliminates
this obstacle and, according to consumers, actually
location-based marketing to name motivates them to make purchases more often.
a few. So, whats next on the The proof is in the data: mobile coupons have been
seen to increase redemption as much as 10X over
minds of marketers to win share their printed counterparts2.
Mobile coupons have been seen to
from their competition increase redemption as much as 10X
over their print counterparts2 Mobilizing these coupon programs is essential to
and boost customer capturing the all-important millennial shopper, who
will spend more than $200 billion annually starting in
engagement in 2017? 20173. Winning this demographic is crucial to any retailers
strategy and they do not clip paper coupons.

THE ADOPTION OF MOBILE WALLET WHERE MARKETERS
Although still relatively nascent, mobile wallet as both a payment option
REMAIN CHALLENGED
and a marketing tool is gaining traction quickly and will continue to grow For many brands, IT skillset and integration
in 2017 as more consumers adapt to the technology and realize the resources remain the major roadblock that
convenience it offers. is preventing them from implementing a
Mobile wallet marketing allows for a brands perpetual presence on the new mobile marketing strategy. 26% of
consumers deviceeither by downloading coupons or digitizing a physical marketers polled in a recent 3C survey said
loyalty card. Mobile wallet also enables location detection in order to send
that available IT resources will most likely
relevant messages at the exact moment of need. Brands who have adopted
prevent them from making more investments
this technology early are reaping the benefits of increased foot traffic and
sales as a result of the unique features of mobile wallet like location- in mobile in 2017, compared to 17% who
based reminders. cited budget constraints. As the consumers
appetite for mobile experiences continues
to outpace brands ability to deliver, this
roadblock becomes critical to solve.
HOW TO GET STARTED

The best way for brands to position
themselves with these new mobile trends is
to test and learn. Measure everything and
see what resonates with your customer. Start
small in a few stores or geographic area.
Mobile wallet coupons, for example, work
with existing coupons and can be delivered
DEVELOPING AN APP PLUS STRATEGY through any channel a retailer may use
Apps remain a key component of a retailers strategy, but brands cant email, digital ads, social media making
ignore the fact that 80% of app engagement is centered around just five for a simple way to start without adding
apps4. While apps engage the loyalists, a broader strategy is needed to constraints on valuable IT resources. In
reach and communicate with those customers that will never download addition, mobile provides rich, real-time data,
the app. Gartners recent forecast that 20% of brands will abandon their
which enables marketers to make campaign
mobile apps by 2020 is further indication that brands looking to drive
engagement need to look to solutions outside the traditional app5. modifications nearly on the fly. There are
many ways to get a mobile program up and
There are a few ways brands are intersecting their app strategy with more
universal channels. For example, SMS messaging is seeing a renaissance running quickly, so dont sit on the sidelines
as a way to complement a brands app strategy. Considering that nearly all and let your competition pass you by. Having
of todays phones have the capability to send and receive even a small mobile presence is better than
text messages and that 90% of text messages are having none at all.
read within the first 3 minutes6, SMS continues
to be the most ubiquitous and engaging channel
at a marketers disposal. Supplementing a
1. ScanLife; November 18, 2016
brands app strategy with SMS can reach more 2. State of the Mobile Coupon Industry; Koupon Media; 2016
consumers outside of those with just the app. In 3. The Year of the Millennial Customer: Is Your Customer
90% of text messages are read addition to traditional messaging, mobile wallet is Experience Ready?; Forbes; November 14, 2015
within the rst 3 minutes6
establishing itself as a lightweight and interactive 4. US Consumer Technographics Behavioral Study; Forrester;
way to reach more consumers than just the app alone. August 2014 to October 2014
While it may be ideal to have all consumers download 5. Gartner Predicts a Virtual World of Exponential Change;
and engage with a brands app, the reality is that marketers will need to Gartner; October 18, 2016
6. Conversational Advertising; mobileSQUARED and SinglePoint;
implement additional technologies to reach a majority of consumers.
April 23, 2012
SMS and wallet can be a great place to start.

STATE OF THE INDUSTRY
Members Want Options,

Not Just Rewards
Jeff Sopko
President, Insights & Marketing
Baesman
As loyalty programs become more ubiquitous with new innovations and Flexibility
strategies, customer expectations are simultaneously rising. New ideas,
offers, and models are penetrating the market, opening new doors and expanded
for rewards.
offers attract
Perhaps more importantly, every program is now held to the standard
of blue-chip programs in the customers view. All brands these days are new customers
held to the level of industry leaders: Amazon Prime, Costco, and
Marriott are a few examples. and prevent
Given the competitive set, its increasingly imperative brands offer a wider current
range of rewards that covers a broader selection of interests and even
shallower offers customers can use more frequently. Flexibility and expanded
members
offers attract new customers and prevent current members from lapsing. from lapsing.
They also have a high probability of increasing frequency and engagement.

Below are some industries that have high competition and market share within the loyalty
space. In each instance, flexible reward redemption could have significant impact on industry.
Hospitality & Hotel Services

For decades, the standard has been that members need to accumulate a massive number of
points to redeem. In most scenarios, the redemption has been an exotic vacation with a free
Gift
stay at the chains top-tier resort. But for many members, that hotel stay in Fiji is too distant and
unattainable. In fact, those points become a liability for the company as theyre unlikely to be
massage redeemed.
Thanks For many business travelers, a simple free water or drink voucher might be a better option than
for your loyalty
a free stay. Even discounts on common hotel services could increase program frequency
examples could be spa services, or discounted partnerships with local restaurants and
attractions.
For many travelers, those simple offerings are reachable and increase the value of their stay,
which in turn increases customer loyalty.
Airlines & Travel Services

The same idea within hospitality holds true for travel. Redemptions can often be a hassle for
customersmassive amounts of air miles are needed for a free flight. The problem for airlines is
FREE less that the end-goal is unattainable, but that the rewards-side is hyper-competitive.
Drink Essentially, theres a high chance members will lapse in the programdrawn away by a more
Thanks enticing offer from a competitor. While the option for free flights is enticing, some other
for your loyalty shallower offers can increase key metrics and improve member satisfaction.
Some core KPIs impacted include customer spend and increased program frequency. Shallower
benefits that increase program engagement are likely to prevent a member from lapsing out of
the program. Options include seat upgrades, drink vouchers, and airline club benefits.
Grocery Retailers
Grocery chains are another industry ripe for flexible rewards. To some extent, many chains have
expanded with fuel points, but theres been little innovation since then. While slightly more
diverse, theres still a wide range of options to increase program engagement.
Movie
Voucher CinemaImagine if a customer lives in a city and doesnt drive, fuel points become useless, and theres
not much else to spend points on. Thats a major problem in some larger cities in the U.S., where
Thanks Seat public transportation is often usedNew York and Chicago for example.
for your loyalty Also, consider the data grocery chains have on what members are buying. For many shoppers,
groceries tend to be a rather consistent routine of items theyre picking up from week-to-week.
Imagine utilizing that product affinity and matching rewards back to similar servicesanywhere
from dry-cleaning, movie tickets, or even health club discounts. The goal is to keep those
customers coming, and a more flexible, data-driven offering can resonate well with many
members.
Value, Service and Innovation

Across every industry, loyaltys pervasive impact has produced parity across the market. Loyalty is no longer tied to
a brand, its tied to the programs value, customer service, and innovation. Members want options. They want the
ability to utilize their points how they want without strict rules and unattainable end goals.
Brands that innovate and provide better service within rewards will see the most success. Theyll also build a solid
foundation in customer loyalty thats needed in the tumultuous years to come with changing shopper behaviors.

Driving
Loyalty and
Engagement
with Prepaid
Commerce
Gerry Gilbert
Vice President of Product Management
CashStar
Differentiating your brand from competitors

and delighting customers are two surefire
ways to succeed in the marketing-saturated
retail industry. However, achieving this can
be a huge challenge, and pushes retailers to
get creative in finding ways to acquire and
retain loyal customers. While retailers have
traditionally turned to discounts and coupons
as tools to accomplish this, this method can
hurt profitability and depreciate a brands
value. Fortunately, theres a great alternative
for retailers looking for a fresh strategy to
engage shoppers and drive sales:
prepaid commerce.
Prepaid commerce combines the use of

digital gift cards with incentives, rewards, and
loyalty programs (think Starbucks rewards
or CVS ExtraCare program). This can be
especially effective in the form of stored
value on a gift card; one only needs to look at
consumer spending habits for proof. Industry
data shows that nearly 75% of consumers
with gift cards overspend by more than $25
on average upon redemption.

For example, to drum up foot traffic during the slow
post-holiday season, a major restaurant chain ran a
promotional offering in December that rewarded gift
card purchasers with a promotional card for a free
dessert. The promotional card, which could only be
redeemed post-holiday, drove the gift card purchaser
as well as the recipient to the restaurant during a
traditionally slow season.
Because shoppers can tie prepaid commerce programs to

their smartphones, theres never a worry that they forgot or
misplaced a physical gift, loyalty, or bonus cardits right
there on their mobile device. This also enables them to receive
relevant offers and reminders of their stored value on the card
yet another reason for retailers to consider mobile integration
Additionally, gift card purchases typically involve two for their loyalty programs. In fact, according to a study from
partiesthe buyer and the recipientwhich presents more Juniper Research, 1.4 billion loyalty cards were mobile-only or
opportunities for return visits to the store than a traditional integrated into mobile apps. The research company forecasts
promotion that is marketed to just one shopper. This is this will rise to three billion cards by 2020.
especially effective when executed as a promotional offer to
incent shoppers. The trend of shoppers self-gifting in order
to redeem the promotions that come along with gift cards
themselves, is yet another incentive to buy. On the other hand,
markdowns, discounts and coupons are rendered at a lower
margin and leave little potential for future upside.
For example, a coupon for $20 off a purchase of

$100 results in the sale of $100 in merchandise,
while costing the customer $80. However, an offer
of a $20 gift card with a purchase of $100 or more
results in the sale of $100 in merchandise and a
return trip to the store to take advantage of the $20
gift card. This builds both sales and customer loyalty
through increased purchases and future store visits.
Prepaid commerce has benefits beyond just affecting the

bottom line, too. For example, employees can be motivated
with gift cards; gift cards can be used in loyalty programs For retail marketers, prepaid commerce is not only a nice-
to reward customers or drive specific customer behavior; to-have, but its becoming a must-have given its ability to
warranty claims on broken appliances, like a dishwasher, can maximize profits without depreciating the brand. Now, more
be fulfilled with gift cards. Even customer service issues can than ever, retailers should examine their customer lifecycle
be remediated with gift cards. Merchants are already finding to see where and how prepaid commerce can enhance the
effective ways to integrate prepaid commerce into their customer experience, build loyalty, and drive sales.
marketing strategies.
Author Bio
Gerry has 20 years of experience in the payments and software industry, and deep expertise leading product strategy,
management and development for payment-related products. Prior to joining CashStar, Gerry was Group Manager at Intuits
Payments Solution Division where he led teams building merchant-focused self-service and CRM solutions. Before that
Gerry held various product management positions at Electronic Clearing House, CyberSource and Chase Paymentech. Gerry
graduated from Saint Anselm College.

2017:
The
Year
of
Social
Loyalty
Chris Teso
Founder and CEO
Chirpify
Weve all heard the impressive statistics about the reach of social media. Across
demographics and geographies, social media has significantly, if not completely,
penetrated our customer bases. Yet, many brands have up until now struggled
to do more than simply lift and shift their existing loyalty program to social
media. Adding to the challenge is that consumers increasingly understand that
social media gives them a megaphone with which to
influence the path to purchase -- and they want to
be rewarded for it. For a growing number of
leading brands, the compelling answer
to these two trends is social loyalty.
2017 t
he year lty
of social loya

At the recent Loyalty Expo, Thom Kozik, VP of Loyalty future campaigns and offerings. Knowing which loyal
at Marriott, paraphrased this transition well saying, customers are in social media allows brands to gain a deeper
understanding of what constitutes a successful social media
Consumer expectations campaign. Moreover, identifying the most loyal customers
online and being able to surprise and delight them helps to
around being rewarded drive deeper loyalty and greater lifetime value.
for dollars spent
has shifted. Todays Last, social loyalty enables customers to communicate with
the brand in a way they desire. Customers increasingly want
consumers recognize utility. That is, they want it to be easy to do business with
there is greater value their favorite brands. Engaging with people over social media
through a social loyalty program does exactly this, effectively
in their time, attention, putting the utility of a social media remote control for loyalty
in the hands of customers.
and their social media
footprint, and expect to The traditional cornerstones of loyalty programs cannot
be rewarded accordingly continue to succeed much less thrive without social media
as an integral component. Indeed, social loyalty directly
for that. addresses critical, business-impacting trends that are here
to stay and in the process creates an important virtuous
Indeed, customers are eager to be rewarded for more than cycle of brand advocacy, customer acquisition, and lifetime
their purchases. Knowing the significant amplification that loyalty. Customers who have been looking for greater utility
social media provides, people expect a value exchange for in social media are now able to interact with the brand there,
sharing about your brand, endorsing your product or service, and brands can help channel that activity by reinforcing
or advocating on your behalf. those specific behaviors that benefit the brand. From greater
customer acquisition and conversion to enhanced advocacy
and greater loyalty, social loyalty allows brands to create
Where this collides with social media is incredibly powerful
an effective value exchange on social media. Given the
for both brands and customers. Indeed, social loyalty allows
momentum behind social media and its empowerment of the
brands to connect social IDs to the loyalty member database,
customer, its clear to see why 2017 will be coined the year of
which allows the brand to recognize consumers in social
social loyalty.
media, and reward them in real-time. For example, a brand
might recognize a loyal customer on Instagram and reward
them with 10 points in exchange for a positive post about their
new product. Most brands begin this exercise with an email
inviting their loyal customers to connect with them on social
media. In the process, brands learn which social
media channels their customers prefer.
As loyal customers are rewarded for specific

behaviors that benefit the brand, earned media
and social proof grow. This in turn fuels new
customer acquisition, brand participation, and
customer retention. As more and more customers
engage with the brand in social media, the brand
can collect important data ideal for personalizing
Author Bio
Chris Teso is the founder and CEO of Chirpify, a company that enables brands to create a currency exchange
between social media and loyalty programs to drive member acquisition, engagement, and spend.

BEST PRACTICES
7 WAYS
to create a
seamless
experience
between mobile
and in-store
Kate Atty The central challenge

VP of Marketing
Clutch going forward is finding
common ground between
More than 75 percent of Americans own the ever-increasing
a smartphone, a figure that skews even higher for importance of mobile,
younger age groups: About 9 out of 10 Americans and the staying power
between the ages of 18 and 49 own one. of the physical store.
These numbers shouldnt come as a surprise, but

given the pace at which retailers are adopting mobile
strategies, it might be. For marketers working with brick-
and-mortar stores, the rise of mobile can seem like the
second coming of e-commerce: confusing, competitive,
and forcing change in ways that few can predict. Mobile
marketing, however, represents a fantastic opportunity
to stay in touch with customers.

Weve compiled seven tips to help marketers integrate mobile
into their loyalty and engagement strategies.
1 Match your store style to your mobile style.

Stores have one great advantage over e-commerce: their design, the music they play, and the style of the goods they sell
all communicate valuable brand messages. We all know the difference between Hot Topic and Abercrombie & Fitch.
Those brand attributes can be extended to the mobile channel by leveraging rich content like images, videos, and long
text that really get the brands personality across.
2 Make it fun.
Smartphones have opened many avenues for creative messaging. Mobile scratch-and-wins, dynamic video, and even a
simple happy birthday message are great ways to engage loyal fans.
3 Make your messages relevant.

Text messages have a 98 percent open rate. But if messages dont fit customer needs, theyll seem like spam and get
turned off. Use data to measure what content is most engaging whether it is shipping notices, mobile offers, or gentle
reminders to read an email.
4 Ditch your Frankenstack.

Marketers today assemble solutions from dozens of vendors, each bolted on to the marketing stack like
Frankensteins monster as needs arise. Look for solutions that integrate all the tools in a single platform, or that are
connected and communicate with each other sharing data and using events to trigger marketing activity.
5 Leverage Loyalty.
Loyalty programs are great tools for capturing data, but they can also provide a forum for marketers to connect store and
mobile experiences. A customer might sign up in store, but give them the option to receive notifications of points value,
expiring points or rewards earned via mobile message.
6 Capture the same data everywhere.

When an online shopper buys something, entering her email address is just part of the checkout process needed to
confirm orders and deliver updates. A well-designed loyalty program incentivizes brick-and-mortar shoppers to provide
the same information, enabling the marketer to identify shoppers consistently across channels.
7 Put all your data in one place.

The online, social, mobile, and in-store teams are often silos of data that never get shared. If each of these groups holds
a different set of customer data, theyre only seeing part of the picture. Omni-channel shoppers can prove to be much
more loyal to your brand, but marketers must prioritize technologies that can aggregate this information, allowing
brands to more easily identify customers, study their motivations, and talk to them.
Before e-commerce, calculating the return on investment of Retail stores, despite what youve read, arent going to die.
a physical store was relatively straightforward it was based Their value is evolving to fit a different path to purchase. Some
on sales. But in the e-commerce world, the path to purchase online retailers are even moving into physical locations that
is harder to track. A shopper might try on a pair of pants in complement their e-commerce offerings. So dont believe that
the store, then buy them online. But when all channels are mobile is killing brick-and-mortar retail. Believe that mobile
working together, and you can see all the data in one place, represents yet another way to build a relationship with a
the physical store is a valuable part of the equation, lending customer in conjunction with in-store.
a certain credibility, and a host of brand messaging, that
influences and builds a relationship with shoppers.
BEST PRACTICES
How Your Big

Data Can Grow
Traffic
Brad Rukstales
President and Chief Executive Officer
Cogensia
If you are like many restaurants, you may be wondering However, depending on the
how you can harness the promise of big data to increase information collected, it is nothing
profitable traffic to your locations. Well, the truth is, big data more than a promotional file with
cogensia
can help build your business. You are sitting on a veritable gold limited ability to support targeted A C A C | G R O U P Company
mine of information that, when used properly, can increase or 1:1 communications from big
traffic, reduce your need to discount continually, and increase data. There is no way to see which of your e-club members are
the brand experience for your customers! actually dining in your restaurant, or who your big spenders
It can figure out which of your customers are really important, are. Therefore, there is no other way to communicate than
as well as who dines at lunch, who comes in with a family, generic, one-size-fits-all e-blasts.
who only comes in with a promotion, and many other things Unlocking the true potential of your e-club and other big
that could help your business. Lets see how this works. data sources employs the four levers for driving traffic:
If you are like most restaurants, you have an e-club used to demographics, dining behaviors, dayparts, and menu items.
send updates and promotions to their registered guests.
When you hear big data, think customer-centric ideas that can boost your sales.
One word of caution: outside expertise will bring you results much faster than trying
to do this on your own. Some companies, like Cogensia, have a platform that is easy
to use and executes on all of the above ideas. Our tools, experience, and dedication to
your success will bring you increased sales and traffic, personalized communications,
and accelerated execution.
Theres no reason why you cant start down your journey of bringing big data to life
in your organization to drive traffic and sales. My recommendation is to pick one of
the examples on the next page and start mapping out how you can execute that idea
in the next 30 days. Once youve started, you will see results and be on your way
building deeper customer relationships!

Lets examine some examples of your big data at work:
Demographic Targeting Direct mail
Your e-club can be more intelligent by adding third party I know, its expensive. However, on a cost-per-visit basis
demographics. By using name, address, ZIP Code, email (or ROI), it compares very favorably to email. Remember,
address, and other components, third party suppliers can give while some emails are read, your emails may be deleted or
you detailed information about consumer preferences. Cogensia piled up in an inbox without being read, maybe even leading
has dining habits on over 120 million households in the U.S. to unsubscribes. Direct mail, on the other hand, gets your
Once you have this information, offers and communications creative message right in front of your target audience. With
can be tailored. For example, older couples could be candidates email, you have about 0.3 seconds of consideration, based
for lunch or early dinner. Millennials are more likely to try new on your from and subject line before the delete button
appetizers and small plates. Families with young children would is hit. With direct mail, there is an average of 3 seconds of
be interested in family offers. Once you have this data, you can consideration (hand to garbage can). Direct mail should not
test and experiment to find what communications drive replace what you are doing, but quarterly promotions, special
deeper engagement. events, or specific target audiences where you dont have an
email address, all should be part of your big data strategy.
Promotion Coding
Many POS systems can support personal promotion codes tied Pure prospecting
to email offers. While there are technical details to manage,
Predictive modeling is available to use your customer data
the end point is that a promotion can be connected to an email
and find other consumers in the vast field of consumer data
address, so you know when a customer redeems in-location.
that best look like your customers. These models look at
This provides actual information about visits and engagement.
thousands of variables and identify the characteristics that
This doesnt tell you about their non-promotional visits, but
are most prominent in differentiating your customers from
you can certainly start more advanced behavioral promotions.
the overall universe of consumers. The models identify your
Things like a best customer night for those with 10 or more
BEST prospects for email, direct mail, and Facebook targeting.
visits (that can be tracked) increase the relevance of your
Response rates will be much lower than any communications
communications, and will drive traffic.
to your current customers. However, you should be able to do
better than break even, and this investment will lead to new
customers that can then be put into your customer
Behavioral Tracking contact database!
With a little more sophistication in integrating your POS data,
you can begin tying transactions together to a customer without
a promotion code. There is payment data available that is
consistent for an individual over time, and can be used to link Guest satisfaction
transactions together. This level of big data integration allows Could you imagine effectively contacting yesterdays
you to target preferred dayparts, menu items, party size, and customers today to see how they enjoyed their visit? If
types of food (apps, healthy, etc.). Weve seen this level of youve integrated your email and POS data, theres no reason
relevance drive 20% increases in visit frequency and traffic. why you cant automate the collection of a short survey to
know what is working well. In our experience, this will give
you more than 10x the number of responses than from the
bottom of your receipt. Since this is so much volume, you
Customers outside the e-club can get feedback on new menu items, restaurant re-designs,
Theres a benefit to marketing to your e-club; these customers and service levels in weeks, not months!
are your biggest fans. However, how do you market outside of
this limited pool? Well, the answer again lies in your POS data,
but not on its own. There are other big data sources (we have
one) that utilize personal information from your transactions
to provide name, address, and demographics. We typically are
able to add this information to about 35%-45% of transactions,
giving our clients an instant database of customers to market
to! About 30%-40% of the matched transactions may have
an email capability as well, which means you can significantly
expand your email marketing program to CUSTOMERS who
have visited your locations.

BEST PRACTICES
CX and the art

of storytelling
Phil Durand
Director, Customer Experience Management
Confirmit
There is no doubt that Voice of the Customer (VoC) programs, when planned and implemented properly,
not only make a significant impact to an organizations bottom line, but also drive cultural change and
improve customer loyalty. Because of this, organizations are working harder than ever to gather and use
customer feedback across multiple touchpoints, channels, and geographies to track and drive business
improvements at a global level. Yet, global isnt the only focus businesses are simultaneously trying to
make this feedback work at a deeper level as well. By leveraging the insight gained, businesses can truly
understand how to retain active promoters of the business, minimize loss, increase loyalty, reduce the cost
of dissatisfaction, and improve business results overall.
There is an increasing need for customer data to be integrated with CRM, operational, and financial data. The
value will emerge when this data is presented to the executive team in a digestible dashboard, then sliced and
diced in a meaningful way. CX and loyalty will then become the heart of the business once customer metrics
are adopted as strategic KPIs alongside sales and profit targets.
However, as organizations are always working to

improve, it may be important to ask yourselves:
Would our CX program be more successful if VoC specialists were better able
to translate and communicate the story (read strategy) to a wider audience?
Could we make a bigger effort to tell better stories that can be shared with the
widest possible audience the entire company and not just a select few, like
the CX team?
Could CX professionals benefit from harnessing the investigative skills used

by journalists to uncover a story?

If you answered yes to any of those questions, try implementing some,
if not all, of the following seven tips:
1 Drive culture change. 5 Lead by example.

Metrics naturally have a key role to play in motivating staff to Offering a non-prescriptive guide to what good practice
go the extra mile, but context and comparison are often more looks like provides a reference tool that ultimately enables
meaningful than isolated numbers, charts, and tables alone. employees to draw upon what has worked for others and
In order to drive cultural change that improves customer to devise tactics that are appropriate for each customer
experience, customer insight leaders need to persuade and and situation, without seeking management approval. The
incite a reaction among employees at the front line to change decision to hand over responsibility to employees may seem
the way things are done. risky, but encouraging people to think for themselves while
drawing on shared examples of what worked well actually
liberates staff from constraints and enables them to do what
2 Break down the concept of a good story. is necessary in the moment.
Storytelling as part of a proactive VoC program requires a
real understanding of purpose (the desire to become market
leader, for example), the characters (the company, employees, 6 Promote good news stories.
customers, competitors) and the plot (what has changed, Sharing stories about excellent customer experience as part
where are the bottlenecks, how can things be improved and of a proactive internal communications program refreshes
what has already made a difference). Assembled in such a the stock of strong case studies for employees to reference
way, a VoC program can be presented as a story that people as part of ongoing training and learning programs. It also
will listen to, identify with and more importantly act upon. reinforces the message that VoC is recognized by the business
as central to its ongoing success, and worthy of recognition
and discussion across the organization on a regular basis.
3 Put your Data Journalist hat on.
Raw data is still needed but as data visionary Hans Rosling
demonstrated over ten years ago, it takes a data journalist to 7 Dont forget metrics.
really bring the story to life. In the same way, for employees to Presenting dashboard highlights to customer service teams
identify with the facts or guidelines being presented as part of in the form of posters that pinpoint Net Promoter Score
an over-arching CX strategy, the key points need to be made (NPS), NetEasy Score (NES) and NetService Scores (NSS) on
much more tangible. a weekly basis plays a valuable role in keeping key metrics top
of mind. Adding good and bad customer comments enables
employees to consider and devise areas for improvement that
4 Keep it real.
will enable them to directly impact customer experience and
The most effective examples of storytelling in a VoC program
use real stories about real interactions with real customers in scorecards at the same time.
real settings to share good practice. Best delivered face-to-
face, the lasting engagement with the purpose (the desire to
become a more customer-centric organization) can help to
make CX a reality for all employees, not just the customer
service or marketing team.
Its this ability to translate flat data into coaching and learning aides that ultimately makes a VoC program thrive. Understanding why CX is
important and how each individual can make a difference is what takes customer-centricity and loyalty from the drawing board to the real
world. Action management and operational reporting combined with effective storytelling can have a significant impact on NPS, NES, and
NSS scores, all of which can deliver increased revenue from a greater number of promoters and cost savings from a reduction in returns,
complaints, and refunds. The key is to focus on using data to tell meaningful stories that bring the multitude of charts and graphs to life.
*All trademarks are the property of their respective owners. Net Promoter, Net Promoter Score, and NPS are trademarks of Satmetrix, Inc., Bain & Company, Inc., and Fred Reichheld.

LOYALTY FORUM: Q&A
Ask the Experts:

Question:
Why should (or would) a
customer be more likely to
be loyal to your brand, or
your brand promise?
Our customer is very emotionally connected with our product. We provide them with an The ever-changing dynamics
emotional experience each time they read a Harlequin novel. Theyre very passionate about
their Harlequin books and we want to share their passion through the loyalty program.
of the digital landscape, both
The ever-changing dynamics of the digital landscape, both in the publishing realm and
in the publishing realm and
ecommerce realm, have made maintaining brand loyalty more challenging. What has ecommerce realm, have made
changed is that, in addition to buying books at retail stores, readers are also supplementing
their reading through ebooks and online purchasing. They have more choice now than ever maintaining brand loyalty
before as to where, when and how they like to buy books and read them. Having a loyalty
program helps us enhance the relationship we have with our consumers no matter where
more challenging.
she shops.
Lucy Scinocca
Director, Loyalty and Customer
Insight, North America, Retail
& Digital Marketing
Harlequin Books
Fiverr is unlike any other service-based company. Our community drives our brand. By listening to our customers, both buyers and sellers, were
able to create an experience that theyve asked for. I feel that keeps our unchanging promise in delivering a highly engaged and quality driven
marketplace for everyone to enjoy.
Ryan Bajnath,
Director of Customer Success
Fiverr

We always try to go to bat for our customers. There are so many
companies in our market, and a lot of incentive for more to jump in,
so weve tried to design an experience thats as seamless as possible
and provides customers with the best inventory we can offer. We take
We take feedback seriously,
feedback seriously, and have a process by which if you have an order
get cancelled at the last minute, a lot of times were able to find a
and have a process by which
replacement ticket or can get you a 200% refund. Thats an example of
us making the best of the rare bad situation, and I think its something
if you have an order get
that really sets us apart. cancelled at the last minute, a
Nick Adkins,
Marketing Analyst
lot of times were able to find
SeatGeek a replacement ticket or can
get you a 200% refund.
We believe very strongly in including our fans in team decisions, and

weve supported the notion of democracy in sports through giving the
Alliance, our season ticket members, the ability to vote on retaining
the general manager every four years. Our season ticket members can
also join Alliance Council by securing votes from their peers. Alliance
Council meets monthly, both as a group and with ownership, several
times a year and allows our membership to voice their opinions on a
wide variety of issues from team play to game presentation.
Megan West,
Director of Consumer Marketing
Seattle Sounders FC
I think the overarching reason that people are loyal to us is that we do have an incredibly strong brand. The Canadian Red Cross is well
over 100 years old. Its in the news and people recognize the symbol. People know that when a disaster happens anywhere in the world
the Red Cross will be there to help. Another thing that were certainly seeing, and its given us a big boost in the recent past, is that
weve actually been awarded a fundraising efficiency A+ grade by MoneySense magazine as well as a Four Star rating for transparency
and accountability by Charity Intelligence, which is a research group that rates charities. So at a time when charities are under a lot of
scrutiny by how they spend, we are proud to put those messages out, that we have been graded at the top of the class. It gives a lot of
credibility in our fundraising.
Andrew George,
National Stewardship Specialist
Canadian Red Cross

Why
the future
(and Loyalty)
belongs to
Millennials
Tom Koeppen
CMO
DataCo Solutions
In the 1970s, the Me Generation was a term that referred to the narcissism culture among baby boomers
(born between 1946 and 1964). In 2017, almost 50 years later, research and studies indicate that the Millennials
(the children of these baby boomers) are exhibiting some of the same behaviors as their parents. Some even
suggest the name, ME ME ME Generation. Because of the size of these two generations, roughly 160MM
combined, we decided to perform deeper research and analysis to answer two strategic questions:
What impact do DIFFERENCES Boomer Generation Millennial Generation

1
these two generations
Social Issues More conservative More liberal
have on the future
of loyalty? Political Aligned with a party Majority state they are Independent
Financial Affluent, secure Less affluent; debt ridden

What marketing
2 strategies and tactics Attitudes Trusting of self, not authority Trusts authority, strives for community
will businesses need Desires Prestige, recognition Meaningful accomplishments
to capture their
purchasing power? SIMILARITIES
We researched a number of Both number just under 80MM
Size
studies, articles, and books Combined, they make up close to 50% of the U.S. population
then performed an analysis of The two generations are active participants in social media
the differences and similarities Digital Affinity including groups, causes, and video resources
between the two groups.
Both exhibit agnostic device behavior, using multiple and diverse
Technology electronic devices simultaneously
This is what we found:
Decision Process Both cite the consultation of family and friends as a key activity
Loyalty Both claim loyalty to roughly 70+% of the same brands, products,
and service providers according to a Media Post survey

Baby Boomers Millennials
The Venn diagram to the right captures the differences and
commonalities between the two generations more concisely.
Affluent Less Affluent
Based on our research and analysis, we looked for the best than Boomers
way to answer our two strategic questions. Affiliate with a 80MM
Choose to NOT affiliate
political party people
with a political party
Social
Socially
Media Active Socially Liberal
Conservative
Multi-Tech
We used the Four Ps of Marketing Trust Self Literate
Disdain for Self
Motivation
(Product, Price, Place, and Promotion) Question Value & Trust
to frame our answer to the question, Authority Friends & Family Trust Authority
What marketing strategies and tactics Value Prestige

Similar Value Meaningful
Loyalties Accomplishment
must businesses use to capture their Seek Recognition
purchasing power? Seek Community
Product Place
Production capacity will be critical due to the size of the market Fast becoming the most irrelevant of the 4 Ps due to connectivity
Increases in technological diversity will be embraced by both and distribution
Quality and satisfaction are paramount; deficiencies in either As the world shrinks, location may matter only from a brand
will be known quickly perspective; political, social, and environmental issues could affect
the consumer choice of where or how the product is manufactured
and delivered
Price
Increasing elasticity is required as research and social media drive Promotion
product choice These two generations are the most highly educated of any two
Less affluent Millennials and improved research will put generations in U.S. history. Also, they are the most reliant on family,
downward pressure on margin friends, and a social circle for their influence and social standing.
Inelastic pricing possible only through technological superiority Guidelines for advertising and promotion: genuine, conscience-
and flawless performance driven, and innovative.
The above answer was structured to highlight technology and personalization will reign supreme. Marketers must provide
One to One marketing. To do this, marketers need to combine big data capabilities with their strategy development and tactical
implementation. For example, embrace digitally enhanced video or personalized video delivered digitally via email. Marketers
should be marrying technology with big data analytics.
What about the impact these two generations have on the future
of loyalty? Projected population by generation
In millions
Our research and analysis found that differences between the two 90 81 Millennial
generations do exist, but they are slight. Millennials tend to favor the 75
70
genuine, sustainable, and communal attributes intrinsic to customer loyalty Gen X
65
programs. This may explain why, even with this distinction, Boomers and 50
66
Millennials share loyalty to the same brands at a rate of over 70%. Boomer
30
Given all of this similarity, why do we think the future and 28
Silent
10
loyalty belong to the millennial generation?
2015 2028 2036 2050
Quite simply, its a matter of size. As the graphic to the right illustrates,
Note: Millennials refers to the population ages 18 to 34 as of 2015
the next 50 years will be dominated by the Millennial generation. An Source: Pew Research Center tabulations of U.S. Census
understanding of the similarities and differences between the two Bureau population projections released December 2014 and
2015 population estimates
generations and using technology to reach them appropriately will be
PEW RESEARCH CENTER
critical to gaining and keeping their loyalty.

Give Them What They Want:
Consumer-
Controlled
Content
Summer Felix
Co-Founder
The Draw Shop, LLC
The secret, it seems, is out: Weve heard the stats:

video is better than boring
old text, and whiteboard
animations have been proven to 60% 15%
of people prefer Whiteboard animation
hold more attention than your
average talking-head video. But watching video increases learning
to reading text.1 retention compared to
marketing is a moving target
talking-heads video.2
so what comes next?
A few years ago whiteboard animation hit the mainstream. old law to marketing, and it goes something like this: even the
Companies everywhere began pumping out animations sharpest knife dulls with use.
to convert potential customers into long-time brand-loyal In common-sense terms, people are bombarded with a
proselytisers. A whole industry sprouted up, along with its million and one videos a day, and the lustre of web video has
top players and pretenders. But for every company, the goal thusly been diminished. Yes, whiteboard animations help
was no longer to engage the customer but to create brand companies stand out from the typical video crowd. But with
evangelists. People wanted lean-forward engagementthe this trend gaining popularity, how long will whiteboard stay
kind that drives people to share. And whiteboard delivered. the frontrunner for driving qualified leads? And, arguably more
Still does. importantly, what will be the answer to whiteboard animations
But as more and more marketers begin wielding this magical in 2017?
web weapon, the less magical it will get. See, theres an age-
The answer: interactive whiteboard animation, or IWA

Interactive Whiteboard Animation is what youd imagine:
A media that gives its viewers the opportunity to click, swipe, and otherwise
interact with your content by way of call-to-action overlays with branching
video segments. Think of it like choose-your-own-adventure marketing.
The potential is enormousand not just for sales. For example, the same
mechanism by which IWA segments and sells to several specific target
markets in one video allows IWA to engage and train your whole
companysilos and allwith just one video.
Some of the benefits of IWA are straightforward:

They are novel, so people are drawn to them
They are longer without feeling longer, so people will spend more time with your brand
They play to the right person at the right time through the choice nodes
Some benefits, you have to tinker with IWA to spot.

But when you do, the implications are huge:
Every choice the viewer encounters (called a choice node) divulges valuable data about their likes,
dislikes, and tendenciesgiving you fresh, actionable data to capture and convert more leads.
Viewers are tracked as they move through, letting you see where they abandon ship, allowing you
to fix any leaks.
Viewers are in control with IWA, which makes them 64% more likely to spend more time watching than
traditional video.
Interactive videos garner 3X the viewing times, 2X the conversions, and 14X the click-through-to-purchase
rates when compared with traditional video.
Simply getting a customer to notice you exist is no longer the object of the game. Getting customers to lean forward is a great
start, but interacting and engaging with hyper-personalized media made to convert them is the next frontier.
Interactive marketing is poised to, as Forrest Research analyst Forrester Mullen suggests, Move beyond Awareness, and into
developing richer experiences across display, select publishers, and on your own sites.
Of course, it is always more difficult to be the leader in these technology advances than a follower. But those who make the leap
to IWA sooner rather than laterwhether it be for advertising, training, or any environment where consumer data is valued to
foster brand advocateswill have a head-start on the competition.
1 http://www.adweek.com/socialtimes/interactive-video/625901
2 http://www.sparkol.com/engage/how-scribe-videos-increase-your-students-learning-by-15
3 http://www.cyberalert.com/blog/interactive-video-the-next-big-marketing-trend

Creating Engagement with

Personalized
Interactive Videos
Chris Ladouceur Leave your viewers with an

Creative Director
HapYak Interactive Video
engaging, memorable experience,
with higher conversion rates for
your business goals.

Here are some examples you can use today to help move your
customers through the buyers journey.
Attract with
90%
Play Rate.
50% Increase
Custom Visuals in Open Rate
Use email campaigns to pass in user data directly into video. Be sure to include personalized
elements in the poster image as well as within the first few frames of the video. Use APIs
to leverage CRM, LMS, and MAP software to manage returning viewers and known users.
Remembering a users preferences as well as where they left off is further incentive for the
viewer to continue along the buyers journey.
Engage with
93%
Engagement
Rate
Adaptive Paths
Chapters are an easy way to add engagement to existing videos. Giving the viewer the ability to
quickly navigate to the content that is most relevant and important to them creates ownership
and engagement. Creating a choose-your-own-adventure or branching style video requires a
little extra planning in the video production process, but will provide rich insight into the viewers
behavior, interests, and ultimately provides custom paths to specific call to actions.
Convert with Timely,

42%
Better than
Standard
Relevant CTAs Calls-to-Action
Connect known user information with choices and viewing data to present the right CTA to the
right person at the right time increases click-through and conversion rates. Give viewers the
option to purchase early on in the video. Couple the CTA with an option to dive deeper, or get
more information. This gives the ready-to-buy users a quick and easy way to make a purchase,
ultimately achieving your business goals, without having to wait for the end of the video.
Delight with Memorable,

90%
CSAT for
Interactive
Positive Experience Video
Ask for feedback. Add questions in your videos and turn a passive viewing experience into a
valuable insight conversation. Create brand loyalty and empower your viewers. Live Chat. An
interactive video works just like the rest of the web. Find areas of the video with high dropoff
rates and add a live chat widget to provide real time support and continue the viewer on the
buyer journey.
617.657.9953 tel For more information visit: corp.hapyak.com

Driving Shopper
Engagement through
Digital Technology
Sue Yasav
Vice President, Thought Leadership and Market Insights
Synchrony Financial
In this preview of its sixth annual Digital Study1, Synchrony Financial sees a dramatic rise in digital shopping,
with almost 70% of the U.S. population taking part. Over the past year, it has also seen increases in the usage of
digital and social tools in almost every shopping category. For the full report, visit synchronyfinancial.com.
No longer just a tool for younger generations,

smartphones have extended to everyone.
As a result, retailers should focus on digital
as a marketing and service priority. Shoppers
expect the digital experience to not only be
present, but also proactive and seamless.
Whereas in the past, only a sub-segment
of the population was driven by technology
such as geo-location, social media and text
alerts, many more consumers now say these
tools would make shopping easier and drive
incremental visits.
SMARTPHONE OWNERSHIP CONTINUES TO RISE

Overall adoption of smartphone technology has continued to increase,
driven by Gen X, Baby Boomer, and Silent Generations.*
Now that three quarters of Baby Boomers

surveyed say they have smartphones, their
use of the technology is likely to increase.
This is good news for retailers with digital
strategies in place. The data shows that all
retailers, no matter which generation they
are targeting, need to embrace the growth
of digital technology and its role in shoppers
everyday lives.
1
Source: 2016 Synchrony Financial Digital Study. May/June 2016.
*Millennials: Ages 18 - 34, Gen X: Ages 35 - 49, Baby Boomers: Ages 50 - 64,
Silent: Ages 65+

Mobile Technology for shopping has become Mobile wallet awareness has
prevalent with the majority of U.S. shoppers increased dramatically, but
Smartphone use for shopping has increased dramatically67%
regular usage has lagged
of the survey respondents state they have completed some kind
of shopping related task on their mobile phone, up from 45% last 81% of the U.S. population say they have heard of mobile wallets,
year. Mobile usage has increased across most shopping-related up from 55% only one year ago. Increased awareness is driven by
tasks. Over half the population has researched a product, checked several factors:
in at a retailer, tracked rewards points, or checked out while using The technology is promoted and immediately available on new
a smartphone in the last three months alone. This behavior has smartphone models (e.g., Wallet on Apple iPhones, Samsung Pay, etc.)
dramatically increased since 2014 and 2015, when smartphone
An increase in advertising
usage for shopping remained relatively flat, at about 35-45%.
Greater retailer adoption of Point of Sale (POS) technology
While 61% of consumers report that they have tried mobile wallets,
only 9% indicate they are likely to use them in the coming year.
65% Convenience 51% Happy using traditional payment cards

59% Speed 46% Not sure its safe/secure
47% Security 43% Dont have a need
More than half of shoppers say mobile offers Social media drives shopping behavior
would drive behavior
The impact of social media on purchasing behavior cant be ignored.
Consumers are becoming much more open to retailers using
About 50% of the U.S. population now state they have purchased
texts and location-based offers to communicate discounts
a product as a result of social media. This is a substantial increase
and promotions.
over last year, when the percentage was only one-third.
55% report they would shop

a retailer more often if
they received relevant offers on their
mobile device, up significantly from
last year.
According to eMarketer, by the end of 2016, U.S. mobile coupon

usage will increase 11% in one year, to 104 million. Koupon Media
(a mobile offer platform) reports 500 million mobile coupons were
delivered in 2015, and says that customers spend more money, buy
more products, and adopt new technologies when given mobile
coupons. As mobile engagement becomes increasingly important to The numbers vary considerably by generation. The impact of social
brands and retailers, mobile coupons are emerging as a top priority.1 media on Millennial shoppers is significant, as three-fourths say
that social media drives their purchases. But across the board, every
Basket size increases 26% when customers use a mobile coupon2
generation has seen an increase.
39% of customers spend more if they receive a personalized coupon3
1 Source: Koupon Media. State of the Industry 2016. kouponmedia.com
2 Deloitte Consulting. Navigating the New Digital Divide.
3 2016 State of the Mobile Coupon Industry. Koupon Media.
Rewards and Incentives in the Real World:

New Study Uncovers What People Want
Jonathan Price
CEO
Virtual Incentives
Rewards and incentives are the quintessential way for brands to create moments
that have a real impact on their target audiences. This type of touch point with a
consumer can be a specific, magnetic moment in time to stand out from all the
noise and clutter people deal with on a daily basis. But, to understand how rewards
and incentives can truly be the ultimate engagement tool, we have to understand
consumer preferences surrounding them.

In a new white paper, The Impact of Incentives on Consumer
Behavior, we examine a targeted study of U.S. consumers
who have experience participating in rewards programs.
Uncovering consumer perceptions and preferences
surrounding incentives and how
the incentive
itself
impacts
purchase
behaviors
and more,
can advise us
on how to get
the very most
out of reward Instead of this kind of fragmented outreach, the company
programs. wanted to draw everyone back to a central reward and gift
One of our most at the end of the year. They turned to virtual rewards last
important findings year. In 2015, the company reached its annual goals and
surrounded wanted to create a meaningful touchpoint with employees
the idea of to thank them for their role in the success. They decided to
personalization. embed a Virtual Incentives Visa reward card that would be
The right kind of distributed electronically to the companys 22,000 employees
personalization is worldwide. The card was a small denomination only $10
really the apex for but it was highly personalized and powerful in its delivery. Each
any reward program and can range from using a persons first person received outreach that mentioned them by name and
name to tying a reward back to a specific past purchase. For mentioned a specific improvement or goal that person had
example, if someone bought a flat screen TV, the next point helped to achieve. In addition, the communication included
of outreach could be an incentive to buy a complementary a video from the company president thanking them and
product, like a Blu-Ray player. By understanding the consumer, covering the following years goals. Ninety-seven percent of
purchase behavior can be influenced. In fact, 50 percent of their employees said that they preferred that reward over any
respondents said that receiving the right type of personalized reward theyd received in years past.
incentive would change their purchase behavior such as
buying additional products, considering a new brand, and
buying a more expensive item. A whopping 82 percent said
that a company offering their preferred incentive spanning all
types of rewards from gift cards to points would make them VIRTUAL INCENTIVES
more loyal to the company in the future.
In short, personalized incentives drive positive perceptions
and help to increase brand affinity, loyalty, and engagement.
The Virtual Incentives team recently saw this in action at
a large manufacturing client that was struggling to find By providing the gift of choice, brands and companies have
the right holiday gift for their large, international employee a chance to make a magnetic connection with their target
base. Holiday outreach gave the company an opportunity to audience. Digital cards are instant, flexible, and customizable,
encourage employee loyalty, boost morale, and initiate positive something that everyone prefers in a world filled with instant
engagement. However, in years past, holiday gift giving at the satisfaction and lots of choices. The new Virtual Incentives
company had been decentralized, with each division issuing white paper covers personalization levels, gender preferences,
widely disparate holiday rewards everything from turkeys to and much more when it comes to todays expectations
points programs. surrounding incentives.
Author Bio
Jonathan Price is a pioneer in the incentive and reward industry, and has led Virtual Incentives to develop an industry-leading
incentive platform that enables businesses to reward in a way that is simple, cost-effective, secure, reliable, green and, most
importantly, instant. @JPrice_CEO https://www.linkedin.com/in/jonathanmarcprice

LOYALTY FORUM: FEATURED TECHNOLOGY
Featured Products,
Advancements &
Technology
Technologies
Social media, once a way to simply stay in touch with friends A successful business isnt built all at once; rather, its an
and family, has evolved over the course of several years into iterative process based on objectives, market dynamics,
a nearly omnipresent network of dialogue and interaction and, perhaps most importantly, feedback data from
not only between individuals, but between brand and customers and employees alike. While leveraging this
consumer. Chirpify saw an opportunity to leverage this feedback may seem easy on paper, any marketer will note
connectivity to promote customer engagement and loyalty, that this sentiment could not be further from the truth. To
and has seized the chance to create a unique position in the tackle the huge challenge of aggregating, analyzing, and
loyalty market. leveraging this data, Confirmit has developed robust Voice
of the Customer (VoC) and Voice of the Employee (VoE)
The platform monitors social engagement for client brands, platforms for its clients.
and rewards this engagement with rewards that had
previously been exclusively linked to transactional Because VoC data can vary significantly across industries,
engagement. Through the alignment of loyalty and social Confirmit has designed its platform with flexibility in mind,
media data siloes, Chirpify allows brands to monitor social allowing for data collection across verticals including retail,
engagement and, consequently, reward actions like using insurance, software, electronics, and media, just to name a
hashtags, sharing photos, and even tagging friends. The few. Because of the sheer volume and evolving nature of
value of social media engagement is difficult to overstate, feedback channels like social media, Confirmit allows clients
and the Chirpify platform provides the ability to recognize, to combine feedback streams in order to streamline the data
reward, and promote these activities automatically. and avoid analysis paralysis caused by an overflow of
information. Additionally, the company leverages its
With customizable triggers like geofencing and social GeniusTM Social and Text analytics tools to provide the
media influence, Chirpify provides powerful tools able to framework necessary to turn unstructured data into
tailor recognition in a way that rewards customers with actionable insight. Confirmits VoC and VoE tools are
benefits that correlate to the value of the engagement. By invaluable resources to companies looking to capture
leveraging these power social media monitoring customer sentiment in a form that is both powerful and
technologies, brands can bring loyalty out of purely easy to act upon.
transactional engagement, and promote social
media engagement as a means to create
loyalty and spread a brand
message through the most
important channel of all:
social influencers.

While a majority of loyalty suppliers are focused on a As loyalty rewards go, few are more ubiquitousor more
B2C-focused distribution of rewards, Perks specializes in appreciatedthan open loop gift cards. As the leading distributor
the arena of B2B and channel loyalty. This indirect sales of Visa Rewards, Virtual Incentives understands the value of
partner expertise is centered largely on the organizations these rewards and is able to deliver them to consumers through a
Science of Motivation methodology, aimed at creating variety of online incentive solutions. Clients of Virtual Incentives
alignment in the often-obfuscated partner-supplier-reseller are given access to a powerful interface that also features the
relationship. This alignment is crucial in creating relevant technology providers signature simplicity and ease-of-use.
programs based on channel partner behavior. The success
of channel loyalty initiatives hinges on the syncing of A key component of any loyalty reward distributor, Virtual
business goals between supplier and partner, and Perks Incentives places a premium on a seamless API integration. This
creates this synergy through the segmentation of incentive integration is built to be agile; clients can request rewards through
activities at both the company and individual levels. the API and have them delivered at the speed demanded in
todays loyalty climate. This kind of speed is demonstrated in the
The company also offers clients use of the Enterprise onboarding process as well, with the entire process being
Engagement Engine (E3), a user-friendly dashboard through completed in as little as a day in some cases. Beyond physical gift
which users are able to access graphical interfaces cards from brands like Visa, MasterCard, and Amazon, the
representing analytics including points-based activities, company is able to distribute online incentives in real-time to
peer-to-peer social activity, and showcase participation satisfy the modern consumers need for instant rewards. Priding
levels. By creating partner alignment, Perks effectively itself on speed, flexibility, and agility, Virtual Incentives has carved
streamlines the process of channel loyalty development, out an identity for itself as a loyalty provider able to deliver
significantly shortening the time to revenue for its clients. rewards whenever, wherever, and however the situation dictates.
What are Analyst Reports?

Customer data is the foundation upon which all of modern Loyalty360s Analyst Reports are designed to help
marketing should be built, and PossibleNOWs technology brands and marketers navigate the plethora of vendors
solutions allows users to centralize the collection, and providers in the market that support customer
management, and access of this data to drive customer loyalty, customer experience, and customer engagement
loyalty objectives. The companys MyPreferences application strategies in any capacity. With a focus on objectivity,
works to take customer preference data and restructure it rigor and transparency, the Analyst Reports help brands
into a form that is easily interpreted and acted upon by
take a wide view of the vendors available to them and then
clients. The platform can be integrated into CRM, POS, and
ATM systems to more effectively collect this data, as well as narrow down to an appropriate consideration set based
into communication tools like call centers, mail fulfillment, on core competencies, strengths, and industry expertise
and email engines to use this data in order to craft
personalized messaging based on discovered preferences. If you are a vendor or provider interested in learning
how Loyalty360s Analyst Reports can help you reach
The goal of PossibleNOW is to provide clients with the new prospective clients, please contact Mark Johnson
information necessary to make the most cost-effective at markjohnson@loyalty360.org
choices in regards to resource usage. Understanding when,
where, how, and even why customers engage with a brand is To view Analyst Reports please visit
a critical step in creating engaging experiences, and one that loyalty360.org/resources/analyst-report
PossibleNOW makes feasible through its powerful customer
preference collection and analysis. Especially as personalized
messaging becomes a necessity, platforms like
PossibleNOWs MyPreferences allow users an entirely new
level of customer understanding and, as a result, engagement
through the channels and methods that will prove to be
most effective.
Conference Preview | 2017
Loyalty Expo is a true Voice of the Customer-driven, best practice-focused customer

loyalty and reward conference. By attending, youll have the opportunity to network
with hundreds of your fellow marketers and hear how they are reaching their customer
relationship-building goals.
The 10th annual Loyalty Expo will include sessions from leaders in customer loyalty,
workshop sessions, networking opportunities, the 2017 Loyalty360 Awards, our 4th
Annual Loyalty Landscape: State of the Industry Report and much more.
For more information, visit

loyaltyexpo.com
Featured Loyalty Expo Speakers
Nataki Edwards Michael Marino David Mingle Jeff Pearson

Senior Vice President of Digital Senior Vice President General Director of Global Customer Senior Vice President
Strategy and Operations Experience Execution and Planning
Brian Venuti Una Morabito Eric Messerschmidt Noah Brodsky

Vice President, Global CRM Senior Vice President SVP Marketing SVP Worldwide Loyalty
& Customer Engagement
May 2-4, 2017 | Caribe Royale | Orlando, Florida

Clutch's Customer Marketing Platform
Centralized Customer Intelligence

Loyalty and Stored Value
Analytics and Segmentation
Omni-Channel Engagement
Are you maximizing your best customers?

clutch.com | Info@clutch.com | (888) 541-6789
7695 Beechmont Ave.
Cincinnati, OH 45255
Loyalty360 is the unbiased, objective, and market-driven association for customer loyalty,
which seeks to enable and encourage dialogue among industry leaders. From our introductory
individual memberships to our top premium tier, our members are provided with the exposure,
certification, and exclusive content they need to continue their path to true customer centricity.
Loyalty360 memberships offer unique benefits to both brands and suppliers including access
to exclusive content, content promotion, networking opportunities, and more.
For more information on Loyalty360 membership, visit

loyalty360.org/join or contact Mark Johnson at MarkJohnson@Loyalty360.org.
513.800.0360 | loyalty360.org | @loyalty360

2017 Loyalty Management Magazine Q1

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VOLUME 10 NUMBER 1 | WINTER 2017

Online vs. In-Store:

Beyond Points with

Cigna Approaches Customer

LOYALTY FORUM: IN EVERY ISSUE

Making Sense of the Ever-Changing World of Loyalty Marketing

Read about how Cigna Health Insurance is redefining loyalty INTRODUCING

Another fascinating interview takes place with SunTrust SVP

4 Loyalty Management | WINTER 2017

CrowdTwist is an industry-leading provider of comprehensive multichannel loyalty

Loyalty Management | WINTER 2017 5

IF YOU COULD PICK ONLY ONE THING, WHAT DO YOU BELIEVE

6 Loyalty Management | WINTER 2017

WHAT IS YOUR LEAST

WHO IS YOUR FAVORITE MUSICAL ARTIST OF ALL TIME?

I was just at a restaurant and Yelp sent me a notification with

Loyalty Management | WINTER 2017 7

The Challenge of Measurability in an Era of Continuing

It all consistently breaks down into an 85 to 15 ratio, where 15 percent

8 Loyalty Management | WINTER 2017

May 2-4, 2017

For more information, please visit loyaltyexpo.com or contact

Hear from great speakers such as

For PSE-run Buffalo Sports Teams and Loyalty,

10 Loyalty Management | WINTER 2017

We launched this program at the beginning of this past

PSE learned some typical lessons that organizations learn

Loyalty Management | WINTER 2017 11

SunTrust is a purpose-based organization, says Russell Randolph, SVP,

One indicator of success

To that end, SunTrusts rewards program, from a credit card perspective,

Through SunTrusts branch centers, the bank engages clients in a needs-

12 Loyalty Management | WINTER 2017

I think we certainly want to lead in that regard, states Randolph, I think

The various initiatives, programs, and products put forth by SunTrust as

This omnichannel approach is becoming more and more crucial for

SunTrust monitors cross-channel interactions to provide a better

Loyalty Management | WINTER 2017 13

Balancing Online with Brick-and-Mortar Helps

14 Loyalty Management | WINTER 2017

Understanding how to stay on top of those trends becomes a matter

We had a very old-school mentality, Layton adds. We were going to

Organizations that try dictating the conversation instead of having

Loyalty Management | WINTER 2017 15

16 Loyalty Management | WINTER 2017

Were putting in place a lot of activities and a lot of mechanisms, Cigna

Getting this information digested, as it were, leads to better service for

Loyalty Management | WINTER 2017 17

18 Loyalty Management | WINTER 2017

HOW TO GET STARTED

Loyalty Management | WINTER 2017 19

Members Want Options,

20 Loyalty Management | WINTER 2017

Hospitality & Hotel Services

Airlines & Travel Services

Value, Service and Innovation

Loyalty Management | WINTER 2017 21

Differentiating your brand from competitors

Prepaid commerce combines the use of

22 Loyalty Management | WINTER 2017

Because shoppers can tie prepaid commerce programs to

For example, a coupon for $20 off a purchase of

Prepaid commerce has benefits beyond just affecting the

Loyalty Management | WINTER 2017 23