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LOYALTY MAGAZINE APRIL 2020

The art and the science of loyalty


IAIN PRINGLE EXPLAINS – PAGE 12

PLUS guest articles


from Andrea Burchett
and Courtney Wylie
News, Research View the Shortlist
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LOYALTY MAGAZINE APRIL 2020 CONTENTS 3

The Shortlist

8
Contents 21
To subscribe to Loyalty Magazine: 5 COMMENT 10 TRENDING
Go to www.loyaltymagazine.com • Community key to encouraging
and hit subscribe. Alternatively, call 7 TRENDING customer positivity
subscriptions: +44 (0)1572 820088 or • Discounter begins European • Covid-19 – Rules for growing
email: subscriptions@cm-media.net loyalty roll-out customer loyalty
• Stock Exchange & trading desk
Loyalty Magazine is published by acquire loyalty firm 11 TRENDING
McIntosh Media Ltd • Reviews, discounts and photos
• Accor launches new campaign
3a Market Place, top three drivers for DTC brands
at the tennis
Uppingham,
• Stores in rush to cater for
Rutland 8 TRENDING growing vegan army
LE15 9QH, UK
• Points gifting option added to
Tel: +44 (0)1572 820088
Russian bank loyalty 12 THE LOYALTY FORMULA
Editor Annich McIntosh • Fuel savings top list of drivers for • Article by Iain Pringle with
email: amcintosh@cm-media.net convenience store loyalty contributions from Crispin
• 7Rewards passes 25 million Rogers, Chuck Ehredt, Matt
member mark Norbury and Gabi Kool
Advertising and subscription
enquiries: Evie Robinson
9 TRENDING 16 SEEKING LOYALTY
email: evie@loyaltymagazine.com
Tel: +44 (0)1572 820088 • Foot Locker consolidates loyalty NUGGETS
programmes • Article by Andrea Burchett
Design: Sally Marshall • Hotel loyalty @home
19 ETHICS, TRANSPARENCY
• Fraud concerns raise lid on an
ISSN 1354-5868 expensive cost of business AND TRUST
• Article by Courtney Wylie

21 THE LOYALTY
MAGAZINE AWARDS
2020 SHORTLIST
2019
NOVEMBER
LOYALTY MAGAZINE

2019:
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COVERAGE
OF THE
centre stage
Emotions take

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Mobile:Soci
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points?
The end for
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APRIL 2020 Loyalty Magazine


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5

Annich McIntosh
Editor, Loyalty Magazine EDITOR’S COMMENT

Making use of this time to think


T he world is changing at lightning
speed, and it is difficult not to be
obsessed by the latest coronavirus news
drivers; hotels offering their premises for
overflow hospital wards; firms standing
by their employees as long as they can.
For this edition, we celebrate
the Finalists for the Loyalty
Magazine Awards 2020 and
and the consequent economic chaos it is These gestures will be remembered.
creating. We will come through this, and when
showcase the entries that
In the light of this unprecedented silent we do, those brands that have used this have made it through to the
attack, much will change. But what is imposed period of thinking and planning, final stage of this important
becoming increasingly apparent, is that together with effective marketing and celebration of loyalty
loyalty remains a vital component – both customer communication to raise their excellence, innovation and
now and in the future. Chains offering game, will be best placed to hit the often sheer brilliance.
free coffees to health workers and delivery ground running. Especially
if they have been kind, Browse the description of the entries,
supportive and present. and if you have time, follow up by
Customer loyalty looking in more detail at their loyalty
remains vitally important programmes. There are some fantastic
to our customers, and examples of loyalty done well. Then have
to the workings of the a read through our selection of research,
economy. Those companies opinion, reports and news. We focus in
doing it well are already this edition on the economics of a loyalty
using their loyalty programme and analyse how a good
programme networks to customer initiative is a mixture of science
communicate to customers, and art, of rational approach together
provide information and with emotion. It is what makes customer
to reassure about stock loyalty such a fascinating subject.
deliveries and continuity
of services. We hope you keep well, and look
A spirit of community forward to welcoming you to the 2020
is growing, as Loyalty Magazine Awards Gala evening
neighbourhood groups – whenever that will be. And in the
are created to look after the meantime, make sure you read all the
vulnerable and old – and loyalty latest content at www.loyaltymagazine.
programmes can help here too, in com. We are working especially hard to
multiple ways. bring you thought leadership, alternative
The next edition is bound to have some points of view, research and information;
focus on which brands stood out during to keep your brain active and your
this testing time, and the 2021 Loyalty creativity flowing. Remember, this won’t
Magazine Awards are likely to include last for ever, and when it is over, the
some best practices in a crisis too. strong will get going – fast.

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APRIL 2020 Loyalty Magazine


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7

Significant programme with interesting future


– Loyalty Magazine comment Trending
GAME
Discounter begins CHANGERS

European loyalty roll-out Stock Exchange


& trading desk
A cross mainland Europe, saving
vouchers towards the price of a special
purchase is a major form of loyalty. Often
counters to activate discount coupons.
“For example, a family with young
children will receive specific information
acquire loyalty
called short term loyalty programmes, the
goods offered range from children’s toy
and coupons for milk or diapers through
Lidl Plus.”
firm
collectibles through to casseroles, crockery
and even power tools. Mostly, the vouchers
are paper, with a lack of individual shopper
Europe-wide plans
Lidl Plus is a European project: the virtual
T he Intercontinental Exchange
(ICE), owner of the New York Stock
Exchange (NYSE) and newly launched
information being gained. loyalty card was launched in Germany at digital asset trading desk Bakkt, are to
First country to take part in the the beginning of 2019 and has since been acquire loyalty programme provider
programme is Belgium where Lidl has rolled out to Austria, Spain, Denmark, Bridge2 Solutions.
equipped 305 outlets with free Wi-Fi to Poland and, for some months now, the After the deal has been finalized (the
facilitate the use of Lidl Plus. Prior to the Netherlands. terms of which have not been shared
customer launch, Lidl tested the service publicly), the firm will be acquired by
with store employees for five Loyalty Magazine comment: Bakkt, the digital currency-focused
“The application also includes other This is not the most imaginative loyalty venture from ICE, later during this
services such as the digital receipt of programme but it is significant in several quarter. According to a press release,
checkout tickets, access to promotional ways. It is an initiative from one of Bakkt will use funds raised from its Series
brochures and a store locator.” the highly price competitive discount B investment round to close the deal.
supermarkets, it is an attempt by Lidl The transaction follows Bakkt’s recent
Marketing to learn more about – and market acquisitions of Digital Asset Custody
Lidl will be using the app for marketing as to – individual customers and it is a Company and futures commissions
well as the collection of loyalty vouchers. technologically sophisticated mobile merchant, Rosenthal Collins Group.
Customers will receive a digital scratch programme that links to store check-outs Bakkt is now widely-known for its
card with various benefits after each and can evolve over time. Lidl’s Thomas financial products for institutional
purchase. They can also claim a maximum De Ganck, head of digital & innovation, clients, including its Bitcoin (BTC) options
of €10 extra discount per week with Lidl has already referred to ‘Lidl Pay’ and and futures products. The firm also has a
Plus coupons. personalised offers as some of the future consumer-facing product that’s currently
The Lidl Plus app will work on iOS or initiatives. With wi-fi in stores there is under development which will serve as
Android. After download, a shopper potential to use artificial intelligence and a virtual wallet for a wide range assets,
registers with personal details and augmented reality to track customer such as cryptocurrencies, rewards, and
favourite Lidl store. The app generates a journeys around the store – especially various in-game digital tokens.
customer number and QR code for each along that all important centre aisle. This Bridge2 is used to manage loyalty
customer, which can be used at checkout is a programme worth watching. rewards solutions for vendors and
financial institutions with a total of
$60 billion in reward points, according
to Fortune magazine. As part of the
Accor launches new campaign at the tennis acquisition deal, Bakkt says it will be
leveraging Bridge2’s current merchant

A ccor used the Australian Open tennis competition to launch a new campaign for its
Live Limitless loyalty programme.
Launched last May, Accor Live Limitless (ALL) is the successor to Le Club, and aims to
relationships to develop its own
consumer-focused app.
With Bridge 2’s pilot initiative, called
encompass all parts of a members life, including work, exercise and play. As well as the Loyal Pay, vendors can choose to connect
almost compulsory ‘money can’t buy their payment process directly with
experiences that pop up in every hotel Bakkt’s app. This helps merchants to
loyalty programme. At the Australian avoid paying banks a 2.5% interchange
Open, Accor offered photo opportunities fee. Instead, they are able to issue their
with the trophy, behind the scenes tours own online credit cards which display
and the chance to meet leading players. their brand names, and the platform
Accor is very much a European brand, converts rewards into cash for their users.
with only 120 properties in North Bakkt says it will be charging a nominal
America, which is an unusual mix for a fee for taking care of the trading
hotel group. between reward points and cash,
In the rest of the world however, there however, the fee will be a lot lower than
are more than 5,400 properties with the greatest concentration in Europe and Asia. Within the interchange fee that vendors need to
the Accor group, there are 50 different brands, ranging from budget to five star. pay right now.

APRIL 2020 Loyalty Magazine


8

Trending Fuel savings top list of drivers


GAME for convenience store loyalty
CHANGERS

F uel savings, free wi-fi access and


promotions are among top drivers for
Four key findings from the report were:
1 Loyalty programmes that offer
Points gifting loyalty programmes according to a new
US report.
fuel savings are most popular.
66% of consumers belong to loyalty
option added The report concluded that consumers
really value their fuel based loyalty
programme offering these rewards, a
12% uptick since the 2015 inaugural
to Russian bank programmes, with 66% belonging to at
least one, and cents per gallon savings
survey.
2 Most millennials and Gen Xers prefer
loyalty the most powerful consumer motivators fuel savings. 69% of Gen X (aged 35-
especially if there is instant redemption. 44) and 67% of Gen Y (aged 25-34) cite
But consumers prefer loyalty fuel savings as their preferred loyalty
programmes that are easy to use and currency.
provide everyday value, says Brandon 3 Mobile’s popularity has doubled
Logsdon, president and general manager in less than five years. Consumers
of Marketing Cloud Solutions at PDI who citing mobile apps as their preferred
compiled the report. redemption channel jumped to 44%,

R ussian Sberbank has amended


its loyalty programme to make it
possible for users to transfer or gift loyalty
Members of a fuel loyalty programme
more than double the percentage
of 2015. In that year, only 20% of
consumers surveyed said mobile
points to each other. mattered.
The Spasibo loyalty programme from 4 Retailers struggle to leverage data.
Sberbank is tiered and under the new Gen X Gen Y An overwhelming 75% of retailers
rules all members apart from those on (aged 35-44) (aged 25-34) surveyed collect consumer data from

69% 64%
the lowest privilege level will be entitled loyalty programmes, yet only one third
to transfer points from February 1, 2020. (34%) use the information to attract
The feature will be available via a new customers.
completely new Spasibo by Sberbank
platform, which brings together the
mobile app, website and all the loyalty
programme portals in one omnichannel
interface. The points transfer service will passes
25 million member mark
be available via a new mobile app Thank
You X and on the updated website also
from next month.
Points are transferred by inputting a Company expands fast food range
recipient’s phone number and the amount
of Spasibo points using the transfer section
of the app or website. The points will be
M embership of the Loyalty Magazine Award winning 7Rewards loyalty programme
has almost tripled in the last two years from 9 million to 25 million members.
Membership growth has translated into increased store visits and a larger, more loyal
credited instantly. There is a transfer limit customer base for the world’s largest convenience retailer.
of 50,000 points a month per recipient. Joe DePinto, 7-Eleven President and CEO said: “7Rewards members visit our stores more
Andrey Pisarev, CEO, Operator of the often and spend more when they shop. That means increased store traffic for franchisees
Thank You by Sberbank Programme said: and our corporate stores – an added eight customers per store each day.”
“The reward points transfer is a service 7Eleven operates, franchises and/or licenses more than 69,000 stores in 17 countries,
our clients have been increasingly asking including 11,800 in North America.
us to implement, so we did it. This is more
than a convenient option, it’s a unique
feature to save up Spasibo points for a >> LOYALTY IN BRIEF <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<
large purchase together.
Mandate to grow First Citizen loyalty programme
Former marketing head at Marks & Spencers Debasish Gupta has joined
>> LOYALTY IN BRIEF <<<<<<<<<<<< Shoppers Stop to head its marketing, loyalty and analytics division.
Shoppers Stop is India’s largest department store chain.
Points value Gupta replaces Vinay Bhatia, who moved to rival Future Group a few
Loyalty memberships worldwide, including months ago.
in the airline, hospitality and retail sectors, Gupta’s mandate is to expand and grow the First Citizen loyalty
will reach 5.5 billion this year, according programme and create revenue growth through big data and analytics
to the e-commerce fraud prevention initiatives. He said, “Shoppers Stop has a rich legacy in the department store format
company Forter. Because around 45% spanning over 25 years and it is now on the cusp of pivoting to an omni-channel retailer.
of loyalty accounts are inactive, they are I’m excited to join the company at this inflection point in its journey.” Gupta has also
especially vulnerable to attack. worked with Godrej, Tata, Mahindra and Landmark.

Loyalty Magazine APRIL 2020


TRENDING 9

Foot Locker consolidates Hotel loyalty


loyalty programmes @home
F oot Locker Retail, the US sportswear
and footwear retailer which operates
in 28 countries is to combine its eight
The consolidation of loyalty programmes
across all divisions and brands of a
company is not a new trend.
N ordic Choice Hotels, one of the
largest hotel groups in Scandinavia
with 200 properties, has begun a pilot
loyalty programmes into one. of the project called “Hotellkänslan,” or
While its original loyalty programme Other multi-brand initiatives “Hotel Feeling” in English.
called VIP has been consistent and In April Ascena Retail Group launched ALL Since October,
successful over the past 10 years, the Rewards, which enables members to earn it has invited a
company has grown from a single retailer and redeem perks across its five banners: small number
to a portfolio of brands that includes AnnTaylor, LOFT, Lou & Grey, Ann Taylor of members of
Champs, Eastbay, Footaction, Lady Foot Factory and LOFT Outlet. its Nordic Choice
Locker and Kids Foot Locker. All have had “We have a great ongoing dialogue with Club loyalty
individual loyalty programmes associated clients and associates and we know our programme that
with them which operate independently client wants choices, convenience, fashion live near the
of each other. and the freedom to define her style, Clarion Hotel Amaranten in Stockholm
The eight programmes will now be her way,” to have housekeeping services in their
unified into a new loyalty system that said Laura homes with duvets, sheets, pillows,
encompasses every Foot Locker brand, Jacobs, chief towels and luxury bathroom products
across the 28 countries in which the marketing provided by the hotel.
company operates. officer, Nordic Choice Hotels has about
To be called FLX, the new universal premium fashion segment, in a two million members in its loyalty
loyalty programme was developed over statement at the time. programme. The @home pilot has been
the last two years by Hope Tannenbaum, Gap over the last year has been testing used by about two dozen members who
who was hired by Foot Locker as head of its Bright programme in California, live near the Clarion Hotel Amaranten,
CRM, loyalty and research, specifically to Atlanta and Dallas-Fort Worth that but the company has a waiting list of
retool the company’s loyalty situation. enables members to earn points across its people from throughout Scandinavia
Customers will be able to earn points at banners, although it recently announced that are interested in participating once it
any Foot Locker store or at any of its other plans to spin off Old Navy. expands.
banners. Berger said FLX may eventually TJX Cos. also has a rewards program me “We have been thinking what would be
expand to other Foot Locker investments, extending across banners and Williams- the next step for our industry and what
as well. They can redeem points in a Sonoma introduced a multi-banner can we do with our guests especially
single, central online rewards center. programme in 2016. around loyalty,” says Christian Lundén,
More points earned will put customers Previously, US companies owning director of future business at Nordic
into higher tiers with better rewards to multiple banners — including Macy’s, Choice Hotels.
redeem. Hudson’s Bay, Abercrombie & Fitch, L. “We realized we are spending quite a
“We know our most valuable customers Brands, Urban Outfitters, Ascena Retail lot of time focusing on the guest nights –
are the ones who shop across all our Group and Walmart — have run separate loyalty in our programme is built on how
brands, but we haven’t really done rewards programmes for each banner. As many nights you spend with us. But that’s
anything to encourage that behavior until technology advantages enable greater a very short time of a guest’s everyday
now,” said Jed Berger, CMO of Foot Locker. flexibility and connectivity, so more brand year that we are actually in contact with
According to Berger, FLX is just the start groups are expected to make savings and them.
of more intra-brand projects in the future. loyalty gains through rationalisation. “If our most frequent guests are visiting
us maybe 60 days a year – that’s a great
frequent guest – what happens with the
Fraud concerns raise lid on an other 305 days? How can we become
a bigger part of our guest’s life in their
expensive cost of business own town and not just when they are
traveling?”

A surge of stories in consumer media about the theft of both loyalty points and data is
helping to focus industry minds on the security of programmes.
While some would argue that fraud and points theft is a cost of business, and one that is
During the pilot, Nordic Choice has
partnered with a local housekeeping
startup, L2Go, which is providing an app
factored into the financials, a recent spate of high profile cases are turning the spotlight on that loyalty members use to schedule
the danger to the consumer of points theft and the cost to a business. their cleaning and the staff to do the in-
In the UK, Tesco had to issue new cards to 600,000 members of its Clubcard loyalty home work.
scheme after discovering some accounts had been compromised. Along with the cleaning and products,
The supermarket chain said attackers attempted to gain access to Clubcard accounts subscribers earn loyalty points and
using a database of credentials stolen from other platforms. receive two vouchers for free breakfast at
Tesco says all Clubcard members potentially affected by the incident have been informed the hotel and discounts for meals in its
via email. Although the hackers were thought to have had some success, no financial restaurant.
information was exposed in the incident and Tesco’s systems have not been attacked, the Future plans may include other benefits
company added. such as the provision of packed lunches.

APRIL 2020 Loyalty Magazine


10 RESEARCH

Community key to encouraging


customer positivity
9,000 people across 9 countries Brandwatch Project Manager Camille
surveyed in January 2020 Gerbaud has been studying vegan trends

H ave you ever heard of the brand Etsy?


Your customers have, and they voted
it top for CX in the 2020 experience
in the cosmetics industry, finding a vocal
online community discussing the pros and
cons of vegan beauty products:
survey. “The vegan cosmetics market has
The Best Brands and Industries for matured. People aren’t satisfied just to
Customer Experience 2020 report from have a vegan mascara – they want a
Brandwatch makes for interesting vegan mascara from their favourite brand
reading. Absent are the big names and in Etsy comes out top for CX that delivers on volume, length, and
come some unexpected additions with durability. It’s not enough for brands to
global lifestyle marketplace Etsy hitting Household goods release cruelty free items that don’t live
the top spot. Compared to the other industries we up to the standard of quality in the rest of
studied in our survey, global consumers their product lines.”
The top brands were most unforgiving when it came to
for CX 2020 the household goods industry – 55% said Camille Gerbaud, Project Manager,
Source: Brandwatch that after a bad experience they were Brandwatch Media & entertainment
Consumer Research either unlikely or very unlikely to give a Of all the industries studied, media and
(Jul – Dec 2019) brand a second chance. entertainment brands are most likely to
get messages on social media (publicly or
Beauty privately) when consumers aren’t happy
1 Etsy Consumers buying beauty products are about something.
unforgiving, with 51.3% saying they would And those that said they’d reach out via
2 MTV either be unlikely or very unlikely to buy social media to a media or entertainment
from a brand again if there was a problem. brand were most likely to say they expect
3 Sephora And women are far less likely than men a reply within minutes (when compared
to give beauty brands a second chance – to other ways of reaching out to media/
4 Four Seasons Hotels 54% said they were either unlikely or highly entertainment companies).
unlikely to do so after a bad experience. Looking at the gender split for how
5 Dior people interact with media and
Vegan trends entertainment brands when there’s an
6 Gamestop Applied to a trending topic like veganism, issue, men were more likely to go to these
our above findings could spell trouble brands in public (either in person in a store,
for beauty brands that have slacked on or publicly on social media), while women
7 Kia creating quality vegan products. were more likely to call or email.

8 Wendy's
9 Chanel Covid-19 – Rules for growing customer loyalty
10 Dove A prioritized strategic plan for supply Rules for Growing Customer Loyalty
shortages as an essential part of risk “Much focus now is on immediate supply
Brandwatch says it “analysed over 200 management is an effective response chain issues, but the equally important,
million online conversations and surveyed and a means to cement customer longer-lasting challenge is managing
thousands of people worldwide to find loyalty. your customers through the crisis period
out which brands and industries offer So suggests Jonathan L.S. Byrnes, senior to maximize their long-term loyalty and
best-in-class customer experiences. lecturer, MIT and chairman & founding profitability,” writes Byrnes.
Here again there is a strong call for partner, Profit Isle. If you get this right, the upside is
emotional engagement: “The modern He writes: “When shortages enormous. If you get this wrong, you will
consumer doesn’t want passable materialize and increase, the whole suffer the consequences for years to come.
experiences – they want to be dazzled every management team should become a Byrnes' five rules include prioritizing
time they interact with a brand. crisis management steering committee, customers by profitability and aligning
systematically and strategically guiding sales compensation with company
Which industries generate the most the company through the crisis. priorities, but Loyalty Magazine suggests
positive customer experiences? “The company emerges from the that social responsibility is proving an
Industries with leisure products, like crisis period with profits preserved and extremely important customer loyalty tool.
hotels, fashion, alcohol, and TV tend to be customer loyalty increased. and with Those companies helping medical and care
discussed far more positively than industries sustained profit growth and market workers, the frail and the vulnerable are
like pharma, healthcare, and energy. positioning. clearly differentiating themselves.

Loyalty Magazine APRIL 2020


11

Reviews, Trending
discounts and COMPANY
RESEARCH
NEWS
photos top
three drivers
for DTC brands Stores in rush to
cater for growing
Social media integration and multiple
channel access prove key
vegan army
C ustomers of leading direct-to-
consumer (DTC) brands in sectors
such as fashion and beauty say reviews making the shopping experience relevant A n uncommon rush to provide vegan
options is taking place in restaurants,
(76%), discounts (70%) and photos (61%) and easy for customers,” said Jim Lofgren, coffee shops and supermarkets, driven
are among the top factors prompting Nosto’s CEO. “While the analysis suggests by an equally surprising stampede by
payment decision. DTC brands are having some success in consumers to move away from animal
According to new research, 63% say they this, it also points to areas where more products.
are more likely to make purchases from can be done to improve relevance.” In the UK, Waitrose reports sales of
brands whose websites integrate social vegan products are up 40%; convenience
proof in the form of content from other Product recommendations: one in five food outlets are all offering vegan choices.
customers. customers find they’re not relevant
And while Voice is still a relatively new Another way of creating relevance
channel, only one out of four (25%) of is showing customers product
DTC brand customers who were polled recommendations, whether they are
say they are making voice purchases (5% personalized based on the customers’
often and 20% sometimes). previous transactions or their online
The US study has been conducted by AI- behavior – or simply highlighting
powered commerce experience platform, products that are trending or among the
Nosto, in collaboration with Yotpo, a biggest sellers.
eCommerce marketing platform, and The majority of the brands in
Klaviyo, the owned marketing platform. the sample are using some type of
It is based on a survey of 1,100 US product recommendation – only 4%
consumers who have had a relationship of the customers say they do not see
over the last 12 months with one of recommendations from brands. 46% say
50 leading direct-to-consumer brands, they notice product recommendations
mostly firms within the fashion and on both the brands’ websites and via
beauty sectors. email. However, one in five (21%) said Greggs, which last year gained huge
recommendations they are seeing are not publicity for its award winning vegan
Demand for multiple channels relevant. sausage roll, attributes its healthy 2019
interaction profits to vegan offerings which it claims
The survey suggests that people generally Third of customers open to making has caused queues to form outside stores.
interact with DTC brands on multiple purchases via social media In the US, Starbucks is offering oat,
channels (only 20% of the sample say Another important finding relates to almond and coconut milk alternatives in
they stick with a single channel). However, social media advertisements on Facebook 1300 stores on a permanent basis. The
the most popular choice for digital and Instagram, which many brands are price differential between animal and
interactions is the brands’ own website using to retarget people that have visited animal free is reducing.
(53%) followed by email (12%) and social their websites. 44% of consumers in the So what will this mean in customer
media (11%). Very few shoppers care to poll say they notice brands advertising loyalty terms going forward?
interact with the brands via their native relevant products on social media and When it comes to marketing loyalty
apps (8%) or through SMS or direct mail more than a third (35%) say they would programmes really come into their
(both 1%) while 14% say they like to like to take this further and wanted to be own, ensuring through knowledge
interact with DTC brands in-store. allowed to browse products and make of the member’s last shop, to avoid
With email a popular interaction purchases via social media sites. 37% offering meat to vegans, or a nut roast
channel, 53% of consumers said they of the sample were indifferent about to a meat eater. By being sensitive to
received emails from DTC brands weekly this development and only 28% gave a consumer trends, stores can differentiate
and 38% daily. Unsurprisingly, discount definite no. themselves but brands should tread
offers (64%) are what motivates them There is still a gap in continuing to be carefully. Burger King did themselves no
most to open emails from brands, with more relevant and getting consumers favours when they admitted they were
valuable content (13%) coming second. down the path to purchase" said Lofgren. cooking veggie burgers on the same grill
“Social proof, reviews, images and email "A comprehensive multi-pronged strategy as meat ones. In fact a vegan customer is
all need to feed into the overall goal of works best." suing them.

APRIL 2020 Loyalty Magazine


12 FEATURE

The Loyalty Formula


The art and the science of creating a successful loyalty programme

Article by Iain Pringle

ROI =
Benefit (%influenced x %change x margin) + other benefits
Cost (total sales x %penetration x %reward) + operating costs

T he loyalty industry is changing quickly


yet the fundamental dynamics of
what makes a loyalty programme work
• % reward: The proportion of revenue
which is returned to customers as a
loyalty benefit. In the case of traditional
the incremental change in spend at the
brand that has been driven as a result
of being influenced by the programme.
commercially has not changed since the loyalty programmes this is typically 1% In the classic work by Fredric Reichheld
days of green shield stamps. where customers earn 1 point per £1 or of Bain and Company his study
In these times of rapid change, it is $1 spent with each point being worth demonstrated that increasing retention
important to keep a clear understanding 1p or 1 cent. rates could increase profits by 25% to
of these dynamics if programmes are to • Operating costs: The costs associated 95% through referrals, additional spend
remain relevant and profitable. with building, operating and and lower cost to serve. This number
Understanding the levers which drive administering the programme. can, however, be notoriously difficult the
ROI from a loyalty strategy requires a mix measure for long running programmes
of art and science and can be described by Benefits that are free to join but various methods
a simple formula (above). Measuring the benefits is much more of can be used to get a proxy number for
Taking time to look at each of these an art and can be defined as: this assumption.
elements can help us understand why • % customers influenced: The proportion • % margin: The gross margin associated
traditional loyalty programmes are being of customers who receive the reward with the sales that loyalty rewards have
forced to change and why new fintech and are influenced by it. A recent study been associated with.
solutions which make loyalty operations by Aimia showed that the proportion • Other benefits: A catch-all for any
seamless are not always the panacea they of customers who claim that rewards wider benefits such as higher customer
often claim to be. contributed to brand loyalty and satisfaction plus any additional benefits
purchasing decisions varied from 30% in gained from a better understanding
Costs Australia to as little as 25% in the UK. of customers. More detailed business
The costs in the formula above are the • % behaviour change: The proportion models may also include lower cost
scientific side of loyalty as they can be of customers who have received the to serve and breakage and even saved
easily measured and are defined as: award that have been newly acquired or acquisition cost if a brand is required to
• Total sales: The total sales of the replace any lost customers with new
company/category or business unit recruits. In recent years brands have also
associated with the loyalty programme. Iain Pringle is a director and principal benefited from the shareholder value
• % penetration: The proportion of the Consultant at New World Loyalty using that can be derived from a loyalty
revenue that customers have received his experience in strategy, analytics and programme. Examples of this include
a reward on. For mass market grocery partnerships gained from working with airlines where a report in 2017 showed
programmes or a national coalition many of the world's leading loyalty that United Airlines MileagePlus
programme this number can be as high brands including Avios, Virgin Atlantic, programme was valued at $15bn dollars
as 80% while subscription programmes Nectar, Tesco, Waitrose, Shell, BP and which then was 80% of the entire value
may have a penetration of single digit %. Delta Airlines. of United Airlines at the time.

Loyalty Magazine APRIL 2020


FEATURE 13

So how does this work in the real world?

U sing this formula in a traditional


retail loyalty model with 50% of
customers participating in a business
However, in recent years many of these
mechanics have come under threat.
The result of this has been that many Annich McIntosh, Editor, Loyalty
with 20% gross margin a programme of the traditional loyalty programmes magazine talks to Iain Pringle.
would roughly breakeven (formula below). with large penetration rates have been
With economics this tight the business forced to reduce the % reward given Q. When submitting this article to
case above would often be justified to customers as their influence has Loyalty Magazine you admitted
internally by the additional benefit and waned in a bid to rebalance the return in that on first reading, it appears that
insight a company would gain from a investment. Customer Loyalty is not profitable, but
better understanding of customer data. that it takes some “magic” and the
introduction of sentiment to make it
work. Can you explain?

ROI =
Benefit (%influenced 25% x %change 25% x margin 20%) = £500k A. In the example I used the model
Cost (total spend £100m x %penetration 50% x %reward 1%) = £500k breaks-even but the numbers I used
would be quite ambitious for some
industries – i.e. getting 25% of members
to increase sales by 20% at a margin of
10% could be a tough target in some
% influenced sectors. In industries where margins are
Programmes have become less lower than 10% a loyalty programme
effective as customers are harder must work far harder at delivering a
to reach and therefore influence return. This is where the “magic” comes in
by making the programme more targeted,
margin more effective or driving wider benefits
Brands no longer need a loyalty to the business that go far beyond a sales
programme to collect customer data uplift from members.

other benefits Q. Airline frequent flyer programmes,


Retail margins are falling due to when co-branded with credit cards
competition from online retailers produce very large amounts of
revenue for airlines. How does this
model fit with your Loyalty Formula?
A. Airlines gain a profit from co-brand
operating costs cards because they sell points to banks
These have fallen for new programmes at a price that is far higher than the cost
but traditional loyalty platforms are still of the points to the airline. This model
expensive to operate is, therefore, not really relevant to the
airlines but it is very relevant to the
banks that issue the points. The banks
are attracted to airline programmes
>> COMMENTS <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< like moth to a light bulb because the
perceived value of a mile to the customers

T his article neatly illustrates how the


cost of rewards is a key variable in
determining a loyalty programme's ROI.
A nother big challenge for loyalty
schemes stems from consumer
fatigue of having seen too many similar
who collect them is often far higher than
the cost (even after the profit the airline
takes) and this higher perceived value
In Iain's example, he uses a flat 1% of programmes, constantly being asked at often drives a disproportionate change
customer spend as a cost of rewards. kiosks or petrol forecourts if they have in behaviour. If you couple to this the
We believe that by providing members a card already, would they like to join… fact that frequent airline travellers tend
with a broad choice of reward options, Differentiation is tough and aligning to be more affluent there is also the
including some with opaque or variable with modern consumer beliefs is key to opportunity to drive higher spend and sell
perceived value, it is possible to lower developing a proposition that resonates. higher margin products and sevices.
the average cost of rewards by 20% or This is why we’ve taken the decision to
more. At the same time, a wider choice define the E in Epoints as standing for Q. If Tesco executives had read your
of rewards makes the programme more Eco and enabling our scheme members article before launching Clubcard,
engaging, thereby increasing the % to easily donate to eco-projects such as would they have proceeded?
of influenced members and the % of planting trees. A. The simple answer is yes. Nothing in
change in behavior (the increase in sales). This is also about putting purpose over this formula is news to Tesco. In the book
Changing each of these variables has a profit and donating 5% of the companies "Scoring Points' it is clear that the team
strong compound impact on the total profits going forward to the same eco- understood these dynamics from the
programme ROI. causes. outset.
Gabi Kool, LoyLogic Matt Norbury, Epoints Continued on page 14

APRIL 2020 Loyalty Magazine


14 FEATURE

The bottom line costs are clearly stated in So what can brands do to counter this?
that KPMG estimated that the programme
cost $30m to set up, $5-10m per year to
operate and Tesco spent over £1 billion
on rewards in the first 8 years alone. Yet
T he role of loyalty professionals is to
use our skills to influence the variables
in the formula to ensure that the number
for the effort they have put in to get
it. This relationship is, however, not as
simple as it first seems as customers
it is what Tesco has done to gain a return on the top line of the equation exceeds have now been conditioned to provide
from the top line of the equation which the number on the bottom. In this way loyalty cards at the Point of Sale. This
is most insightful. Tesco chose to invest a well-designed loyalty programme can means that programmes like Pets at
more in customers redeeming for rewards produce a healthy return on investment Home in the UK can generate a base
outside Tesco as it knew from data that by applying the following principles: with over 10 million registered pets
these rewards were far more effective at at a cost of just 0.33% as a charity
engaging customers and driving a change 1 Be selective: The most sensitive donation. Programmes can also aim
of behaviour. It also recognised from the element in the formula is the balance to give maximum perceived value at
start that to gain maximum benefit from between the penetration of the loyalty minimal cost by restricting redemption
the programme it needed to deliver value programme and the % of customers to selected or distressed stock, by using
across the entire organisation. This is influenced. Put simply, programmes managed surprise and delight rewards
demonstrated by the fact that in the year should try to maximise customer or by aggregating the value of rewards
before the launch of Clubcard, Tesco was take-up while constantly filtering out across a range of partners within a
one of the biggest buyers of TV advertising the less engaged. A good example of coalition or partner programme.
in the UK yet in the year after launch there how this can be done is Tesco Clubcard 4 Maximise share of wallet: As customer
was no Tesco Christmas TV campaign as which is a well loved and well used data becomes more available brands
investment in Clubcard communications programme in the UK but which are better able to measure and
was far more effective. includes a series of small hurdles which influence share of wallet. A good
are deliberately placed in the customer example of a strategy to maximise
Q. If it is now possible to collect journey to ensure that only those who share of wallet is the Tesco Clubcard
customer data without a loyalty are motivated by the reward go on Plus subscription tier which gives
programme, is it still necessary to to claim it. As customer’s tolerance customers a 10% discount on up to 2
offer rewards? If it is, what is the of complexity changes over time shops of up to £250 per month for a
benefit of a loyalty programme? this balance needs to be constantly monthly fee of £7.99. This strategy will
A. This is a great question and one monitored but simply offering a appeal to a relatively small proportion
which all programmes should ask. Many seamless earn and burn processes into of the overall Tesco Clubcard base but
programmes today appear to offer little the formula above will make driving a the act of subscribing a small amount
or no benefit to the customer yet they positive ROI very difficult with current each month is likely to give customers
still have very high participation rates as retail margins. a strong emotional commitment to
customers have been conditioned to take 2 Set appropriate targets: It is human aggregate spend with Tesco at the
up and use a loyalty card if it is offered nature to set ambitions targets that expense of other retailers.
even if there is little or no benefit to them. are there to be reached and exceeded. 5 Maximise synergies: With many of
Such programmes may be effective at However, within the loyalty formula the variables in the equation under
identifying customers and providing a above, adding more collectors to the pressure, gaining synergies and
channel to target them with offers at a programme only makes sense if the % additional benefits from your loyalty
limited cost but they may be less effective of customers that can be influenced programme is more important than
at driving behaviour change. remains consistent. Achieving this goal ever. Loyalty strategies are always
is a balancing act that requires sensitive most effective when they are acting
Q. Explain more about why it is measurement as rapidly growing your as the “heartbeat” of the company by
necessary to be selective in terms of programme will inevitably lead to a fall ensuring that decisions are bases on
membership of a programme? in overall engagement. For this reason what you know rather than what you
A. For a loyalty programme to be brands need to take care to ensure that think about customer behaviour.
profitable, the benefits on the top line any promotional activities include an 6 Explore new ideas: Above all, the
of the formula must exceed the costs. element of customer self-selection as variables in the model are dynamic
In mathematical terms for this to work customers who choose to join (or even and will change over time. Given this,
most effectively programmes would better seek it out) will always perform all loyalty brands must move with the
only accept customers who intended to better than those that are forced to times and try new ideas to influence
change behaviour for a reward. Clearly join. Programmes should also consider customer engagement to ensure that
this is not possible in the real world but setting maximum penetration targets the benefits from the top line of the
loyalty managers can manage this risk if they feel that maintaining the % equation always significantly outweigh
by including “small hurdles” within the influenced and % change numbers the costs on the bottom line and be
process to constantly filter out the less will be difficult to maintain over time brave enough to make radical change if
engaged. Tesco Clubcard is a perfect as reducing the cost of rewards may required.
example of this as customers consistently reduce costs in the short term but the For more information on how to influence
rate the programme as simple to use yet long-term impact the top line of the any of the variables in the formula then
since the programme launched customers equation is less easy too measure but you may want to listen to Iain and his
have had to claim vouchers. This process will be far harder to recover from. colleagues on The Loyalty Podcast –
could have been simplified years ago but 3 Manage reward costs: A customer will available via Apple Podcasts or Spotify
it exists to filter out unengaged customers judge a programme by the value of and contains help and advice on a
Continued on page 15 reward they have received in return number of topics.

Loyalty Magazine APRIL 2020


FEATURE 15

Another way who cannot be bothered to claim and

of looking at it
therefore are very unlikely to change
behaviour.

Q. Why are banks and financial


Comment by Crispin Rogers services moving en mass back into
loyalty initiatives currently?

I ain acknowledges that ‘measuring


the benefits of a loyalty programme
is part art and part science. Therein lies
empirical data in house from measuring
the impact of new programmes or, just as
useful, programmes closed in the past.
A. Following the changes to interchange
regulations in Europe in 2015 there was a
mass extinction of bank credit card loyalty
the problem - when optimistic marketers propositions that became impossible
who own the programme meet their As a rule of thumb the following to fund once interchange rates were
more cynical finance or sale colleagues, guidelines may be helpful: cut to 0.3% on credit cards and 0.2% on
especially in the Board Room. Which is a Breakeven > 20%​– Fix or close. Most debit cards. Banks, however, still have
dilemma. And the only way to resolve a likely your scheme is not commercially a need to engage and communicate
dilemma is to re-phrase the question. viable, probably because your costs are with customers and GDPR has made
Rather than ask ‘What is the return on too high – either because your reward this task even harder for most. Loyalty
investment of my loyalty programme?’, costs are too generous for your business programmes are therefore being
it could be more productive to ask “What or because your fixed, operating costs are considered again but the model is moving
do I have to believe is the uplift from my too high in relation to your penetration. towards funding from partners rather
programme to make it commercially Most likely you need to reduce costs or than from interchange fees to keep
viable?”. This approach removes any close the scheme. loyalty costs down.
subjectivity in the generation of the Breakeven 15-20% – I​mprove. Your
‘Loyalty equation’. scheme is likely marginal commercially Q. Should companies expire points?
And the way to achieve this is to – but could be better. Improve the If so, why?
invert the equation Iain has proposed breakeven either by taking out costs that A. When a loyalty programme issues
– placing the Costs as the enumerator won’t adversely impact the top line or by points this cost needs to be carried as
over the Total Loyalty Related Income increasing the top line with growth. a future liability in the accounts. If this
as the denominator. This provides us Breakeven 10-15% – G ​ row. Your scheme cost is carried on the bottom line of the
with a percentage result – which is the is likely commercially viable – consider equation for an unengaged customer
proportion of business coming from increasing the top line with growth e.g. by who is not likely to change behaviour and
Loyalty customers that I need to believe enhancing or refreshing the programme. provide a benefit on the top line then this
is incremental in order to cover my costs. This will drive breakeven down further, as is pure cost. For this reason I always advise
Let’s call that the ‘Breakeven’. your fixed operating costs are spread over my clients to have a strong but fair expiry
a larger base. policy that never penalises engaged
How is this helpful? Breakeven <10%​– Celebrate. Even the customers but filters out the unengaged.
The Costs and Total Margin are factual toughest of Finance Directors is likely to
and indisputable – so the % Breakeven believe that at least 10% of the revenue Q. Knowing what you do, is it easy to
is not in doubt. So the only subjective from your Loyalty members is driven by convince a company to launch a new
element now becomes whether the your scheme. Maximise your success by loyalty programme, and if so, what
resulting % Breakeven is good or bad. prioritising your scheme in your broader arguments do you use?
This is the point at which we can draw marketing agenda and apply for next A. Convincing companies to launch a
on the collective wisdom of the industry year’s Loyalty Magazine Awards. loyalty programme is not difficult. As
– as well as sector specific input and any Simple really. the Pareto Principle applies to most
companies, where a high proposition
of sales are likely to be generated from
>> COMMENT <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< a small proportion of customers, it is
very easy for executives to come to the

A fter four years working in the industry, I believe measuring the impact of a loyalty
programme involves so many subjective inputs that the result can easily be
manipulated by any stakeholder to come to the conclusion they want. I do believe
conclusion that they need a loyalty
programme. The difficult part is designing
a programme that is profitable.
creating formulas and KPIs to measure results is important because no matter what
formula you use, if used consistently, it can reveal meaningful insight from the trends. Q. You said: “So your programme
Business leaders should ask themselves other questions: How valuable is the data is easy to join, to take part in and
collected from the loyalty programme and how would I compete without that data? valuable to the member. Now try to
Will my loyal customers continue even if I don´t have a loyalty programme? In many make a profit!” Do you tell clients that?
industries, a loyalty programme is table stakes, so the question changes to how can And is this why you need to be in the
I keep the frequent customer engaged at the lowest operating cost? Additionally, meeting - to explain about the magic?
“How much more business can I win by capturing higher share of wallet from those A. Yes. Anyone can make an unprofitable
customers who have not shown as much loyalty?” The final factor that makes programme that is easy to join, easy to
calculating a Return on Investment from a loyalty programme difficult is that we can take part in and rewarding. The difficult
allocate a cost to issue points, but what the real cost will be is not known for many years bit is making it seem this way but also
– depending on breakage, what the points are redeemed for, and whether future special make it profitable and that takes careful
offers will affect this cost. thought and experience.
Chuck Ehredt, Co-founder & CEO, Currency Alliance

APRIL 2020 Loyalty Magazine


16 FEATURE

Why brands need loyalty nuggets


to make sense of data
Article by Andrea Burchett

Analytics can be such a powerful tool in the armoury of a retailer, it is passenger groups is transferring to the
often overlooked in the conversation which revolves around rewards, cabin, driving expectations of inflight
incentives and customer love. It is quite right that the mathematical side experience. When it comes to being
of a programme is underplayed but it results in a much better buying connected, today’s passengers no
experience for the customer. longer want to be limited. To date, the
adoption of connectivity in the cabin
has been patchy and inconsistent — but
New judge this year for The Loyalty Magazine Awards is Andrea Burchett, who the need for airlines to adopt a digital
was a joint founder of Avios, and who has spent her life working in airline loyalty. mind-set is becoming more urgent.”
Andrea was telling Loyalty Magazine that when she is interrogating data, she
looks for the “loyalty nuggets” which she defines as those pieces of information 3 Build trust by being ruthlessly
that stand out and cause your eyebrows to raise. She gave the example of transparent.
examining flight data out of Barcelona, and realising that 50% of the people booking Hidden agendas, concealed marketing
actually originated in Poland. This enabled sharing of information with local airlines, fast wins, and cloaked short-term
so connecting flights could be offered to passengers. We were so fascinated by these revenue grabs can all erode trust. Clear
“nuggets”, we asked Andrea to write us an article. Here it is. truthful engagement with customers is
a key factor in building longer term trust
in your brand and corporate reputation.

L oyalty leaders have traditionally lacked


creativity in disrupting markets, been
ineffective in inspiring their organisations
This requires the blending of
emotional connection, the physical
satisfaction, and the perceived value
Loyalty can help define your view of the
truth, it can help cut through the noise
of social media, and with the right proof
to take a long-term outlook to drive of the programme into the customer points can help reinforce the integrity
lifetime value and failed to truly create experience. The higher the value of the of corporate values and practices. Once
value for money for its customers. experience the more our customers will you deceive or are found lying to your
Rather, many have focused on be willing to change their behaviours customers, the trust is broken, your
transactional give-aways and discounts and see a connection between their investment in loyalty worthless.
to create temporary behavioural change, activities and the benefits.
focus on short-term revenue and market The success formula can only be
share incentives that do not build a true 2 Ensure frictionless simple easy to driven by effective change leaders
sense of loyalty, and engaged marketing use systems. Excellent loyalty strategy with poor
spin for immediate gain. All of this can From the shop floor, airline lounge, leadership is pointless. Success in
confuse customers, erode potential trust, or supermarket aisle the holy grail of developing and maintaining profitable
and minimise investment in loyalty. mass customisation and 1:1 marketing loyalty programmes is about visionary,
This is good news. Loyalty experts is now a reality. Today the challenge agile, and entrepreneurial leadership
have significant opportunities to engage is to ensure that interfacing with our that can develop mutually valuable
customers as part of their brands, build customers is an end to end connected internal and external relationships, see
customer equity in corporate reputation, journey, removing the friction at the potential in the white space between
and engage their organisations in each digital touchpoint and thinking the convergence of data, loyalty, and
innovative ways for future commercial mobile first rather than conditioning payment, and have a determined ‘thick-
success. customers on how we need them to skinned’ attitude to drive their disruptive
interact with our brand. change agendas. In short, loyalty
The Loyalty Success Formula When it comes to the mechanics of leadership is about change.
A company’s loyalty success formula is like our programmes the best experience is
a recipe. It contains the critical ingredients actually no experience. It is incumbent Effective loyalty change leaders are
of how the business will succeed in terms upon us to remove any barriers that get disrupters, constantly challenging the
of engaging customers, building trust, and in the way from a customer wishing to status quo
increasing propensity to consume a firm’s fulfil a need and the fulfilment itself. Management experts have been telling
products or services. From my experience It should be all about the dynamic would-be entrepreneurs and leader
over the past decade in loyalty, it is clear relationship with our customer, not the to challenge the status quo for almost
that there are three key ingredients in the process. LSE professor Dr. Alexander as long as there’s been a status quo.
loyalty success formula: Grous highlights an example of this However, in the loyalty space there
challenge for airlines as they look exists both corporate and individual
1 Deliver the experience your forward to digital native generations risk. This risk is balanced by significant
customers are expecting. becoming their prime customer opportunities to be radical, disruptive and
They need to perceive true value for base. He says that: ”The ‘always-on’ a differentiator.t
money for changing their behaviour. culture that is pervasive across all Loyalty leaders need to be prepared to

Loyalty Magazine APRIL 2020


FEATURE 17

break the rules, especially when it comes However, if communicated correctly take the best of what they offer, combine
to challenging old or existing paradigms the process can be eased. As research it with Visa’s powerful global loyalty
of the role of loyalty. They demand ‘can has shown, loyalty leaders are growing APIs and partner ecosystem, and deliver
do’ attitudes that do not allow technology revenues roughly 2.5 times as fast as their innovative and impactful consumer
to be a constraint just because it is under industry peers. Loyalty isn’t a retrofit into experiences that drive meaningful loyalty.”
powered and legacy. They don’t expect an existing offering but becomes integral Collaboration is not dead; it is just very
data to have all the answers or complain to both the business and its customers." hard and is often based on personal
they don’t have enough of or the right relationships and trust. It demands
information. They don’t solely rely on Barriers can be overcome through individual champion leaders from each
marketing investment to persuade and trusted inclusive ecosystems of the partner organisations. This means
influence customers without tangible providing a catalyst to creativity that personal integrity and risk is on the
evidence and reasons to believe. And, Given the pace of change, engaging in line to understand operational issues such
they don’t blame corporate governance co-dependent innovation is the only way as data insights and how benefits will be
and CSR for overly protecting the brand to keep up – no one business can do it on shared.
while stifling trust. They just don’t say their own. The answer for loyalty leaders At any one-time, strategic partners
“no” to any new ideas or opportunities is to create co-dependent ecosystems in an innovation ecosystem may be
but seek to understand ‘why not’? creating an environment for innovation to competitors, customers, suppliers, as
thrive, regardless of ownership. well as part of your supply chain – all at
Resistance from inside is often a Proprietary competitive advantage the same time. Often ecosystems will
critical barrier for loyalty to overcome of any single element of a loyalty develop unique solutions that are for use
Many of our businesses, whether airlines, programme is fleeting. The strength of inside the group but not outside of the
hotels, travel, retail, or financial services a co-dependent environment is in the agreed matrix of partner’s organisations.
all have traditional ways of working. connectedness of the system and its
They all have a core business focused on ability to test, learn, grow, and deliver. Professionalising loyalty will create
clear, often production oriented value Proprietary competitive advantage trust and advance thought leadership
chains. Loyalty works differently. It needs of any single element of a loyalty The reputation and view of loyalty today
to weave its way through the DNA of an programme is fleeting. is similar to the discussion which has
organisation. It is less tangible and often The strength of a co-dependent taken place around digital for the past
measured through ‘softer’ KPIs, such environment is in the connectedness of half-decade; organisations know that it
as customer satisfaction or NPS (Net the system and its ability to test, learn, is important and an opportunity, but just
Promoter Scores). A different skillset and grow, and deliver. don’t know how it works.
ethos is needed as loyalty is a long term Trust in partners is critical as the It is up to loyalty leaders to elevate
game (often ~10 years) whereas revenue team will take on the collective risk of loyalty as a cross-functional integrating
management functions are focused on managing the environment whilst at force across a business to a level where
quarterly results. Loyalty leaders look the same time managing the internal it has a seat on the Board, provides
at loyalty as an investment whereas expectations and demands of their opportunities for competitive advantage,
many companies see it as a cost of sale individual companies. But, if you enjoys collective industry recognition,
where customers simply get something choose the right partners, you have an and is regulated by effective industry
for nothing, as in the case of free flights. opportunity to collectively optimise standards.
Marketing is often product/service data and insights allowing you to better Indicators of the degree to which loyalty
focused where clear tangible metrics are understand the dynamics of your advances as a profession may include
available to measure marginal cost versus customers. Furthermore, the opportunity the emergence of the Chief Loyalty
marginal revenue. On the other hand, exists to tap into each other’s innovation Officer, industry standards (especially
the loyalty paradigm looks at developing systems to co-create highly creative and when it comes to suppliers), and the
long term product, brand, category, and superior solutions to meet customer establishment of accountable recognised
corporate reputation and trust through a needs, drive loyalty, and leverage the loyalty market and industry reporting.
series of customer experiences over time. synergy to create truly ground-breaking As loyalty leaders we are well positioned
Steve Grout, director of loyalty and approaches. to create chaos, drive significant
customer engagement at Collinson, said: Suzan Kereere, Global Head, Merchant profitable change, and disrupt traditional
“Businesses need to be able to adapt their Acquiring at Visa explains their approach systems and thinking, ensuring that we
loyalty strategies to fit their customer’s “Consumer loyalty is earned when are just ahead of the pace of innovation
experiences, even if this presents new programs deliver simple, relevant, and rapidly changing customer needs.
internal barriers. Overcoming these can and valuable experiences. In order for The ‘high ground’ is ours to capture in the
be tough, as with any change there are Visa and our great partners such as race to develop ecosystems of interaction
challenges, whether it be processes, IAG to exceed consumer expectations, where customers feel truly empowered
finances or even winning over colleagues. collaboration is essential. Clients can and totally loyal to our brands.

APRIL 2020 Loyalty Magazine


FEATURE 19

Ethics, transparency and


trust have never been
more important Half of 18-24 year
olds consider a brand’s
environmental credentials
as very important
Guest article by Courtney Wylie, VP of
Product & Marketing, Mention Me

B eing trustworthy, credible, and


having good customer service
have beaten discounting and price in a
and drive repeat
business are
failing, what’s
of businesses making false claims having
their reputations destroyed in seconds on
social media, these efforts cannot be half-
third annual research report ranking of next for brands? hearted or misleading.
customer advocacy trends. According to Certainly more due diligence is needed,
While consumer trust in influencers, the research, but with ethical values so intrinsically
celebrities and online reviews is in decline, there’s a good reason to be positive. More linked to our hearts and minds, the
personal recommendations are most consumers are referring brands than ever opportunities for brands to engage with
heavily influencing consumer buying before – 37% of those questioned had their customers to create and sustain
decisions and ethics have become even recommended a brand in the past month, loyalty is huge.
more influential. Brand attributes and rising to 63% over the past four months. Customers buy into brand personas
behaviour around sustainability and If your business provides a great product and don’t want to risk damaging their
social responsibility proved paramount for and strong service, this presents good reputation by recommending unethical
all respondents. news. Rather than investing in expensive businesses to friends. Brands need to
The customer loyalty landscape has traditional and digital marketing address factors such as paying workers a
become a far trickier one to navigate. channels, our findings suggest you’re fair wage, being environmentally friendly,
Brands can no longer remain stagnant more likely to see a return on your money and hiring locally. Promoting initiatives
and rely on unwavering loyalty from with a referral programme that tracks and that help customers be more sustainable
existing customers. incentivises word-of-mouth about your – such as H&M’s Conscious (affordable)
With this pressure on brands adding brand. Central for brands among this is fashion range, Sainsbury’s 20 by 20
to an already turbulent economic focusing on how to turn customers into Sustainability plan, Allplants’ sustainable
climate with its own challenges, what long-term loyal advocates. Acquiring new vegan food delivery, OVO Energy’s zero
can marketers glean from this insight customers is one thing, but what really carbon living pledge – will help engage
into customer advocacy? Against this matters is if they’re going to return. So your shoppers, build an emotional
increasingly consumer-driven marketing how should brands approach this? connection, and ultimately turn them into
landscape, how can they retain customer long-term loyal customers.
loyalty? The impact of brand ethics on
customer loyalty Sustaining customer loyalty in 2020
Who do your customers trust to Brands need to focus on what really So what has our research taught us about
refer your brand? matters to consumers and reflect this how brands should behave in order to
Based on the responses of 2,000 UK honestly in the values they communicate. move beyond customer acquisition to
consumers on what makes them likely For the third consecutive year, our understanding what drives and motivates
(and unlikely) to recommend a brand, research highlights an increasing customer loyalty? After all, the cost
we conducted this research in November consumer awareness of sustainability of acquiring new customers can’t be
2019 to equip our 400+ clients with and social responsibility, and how this justified if they shop once, never to return.
insights into how they can build customer influences the brands that they choose to Brand transparency and trust is
loyalty to fuel long-term business growth. shop with. In 2020 brand ethics are more paramount. The new, more ethically
Proving that consumers are increasingly important than ever. This is particularly conscious consumer is less focused on
cynical of mainstream advertising and prevalent among Generation Z, with price (think fast fashion), and more
value brand trust and credibility, our almost half (48%) of 18-24 year olds interested in brands’ ethical footprints.
report reveals that 41% of consumers are considering a brand’s environmental Customers want to emotionally connect
deterred from recommending brands their credentials as very important. While with brands, and be proud to tell
friends or family have advised to avoid. this decreases to 27% in the 55+age their friends and family about them.
Also evident is a growing consumer group, 49% of this group said they’re Reputations can no longer be built and
backlash against celebrity influencers, more likely to refer brands committed sustained on good products alone.
as well as against the newer trend of to scrapping plastics. This underlines the Transparency around how products
virtual influencers. Just 3% trust the mounting pressure on brands to exhibit are made, and how those who make
recommendations of this group, whether environmentally-friendly behaviour, them are paid, matters. The wise
real humans or CGI creations. Our regardless of their target demographic. brand marketer should take this as an
research also reveals that consumers are Many marketers now need to opportunity, not a threat. Win consumers’
losing trust in online reviews, with just completely rethink and re-position their emotional investment in your brand, and
11% highly trusting them. So if these sustainable business policies and values their loyalty will drive significant growth
marketing efforts to engage consumers in order to remain relevant. With the risk for your business.

APRIL 2020 Loyalty Magazine


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THE LOYALTY MAGAZINE AWARDS 2020 : THE SHORTLIST 21

Learning from the


achievement of others
A s companies optimize customer
engagement with their loyalty
programmes, a more modern set of
proactive effort to increase value for
all stakeholders. This includes efforts
to reduce operating cost, acquire
In spite of the current Covid-19
situation, The Loyalty Magazine Awards
winners will be determined by the
technologies are improving our ability to redemption options at better cost, judges in April. Since it is starting to look
measure the estimated Lifetime Value of or right-size the organization. Better unlikely that the ceremony can take place
specific customer types, as well as overall alignment around financial levers at the Tower of London in June, Loyalty
programme ROI. makes it possible to pass more value to Magazine will announce in the near
This is reflected in many of the customers – which in turn drives greater future how we celebrate and recognize
applications this year for the Loyalty engagement. the applicants who have worked so hard,
Magazine Awards across each category. Delivering greater freedom on how and those brands that rose to the very
In the spirit of industry learning, it would points/miles can be used also creates real top. I remain hopeful that we can find a
be nice if the confidential measures value because no two customers place way to be together physically or virtually,
of performance included in many the same value on any one option. Choice in order to catch up with friends, as well
applications could be shared, but at least enables the customer to select what is as increase the visibility of innovations
they will enable the judges to make more most appreciated by them. taking place in our industry.
quantified decisions regarding which We need to make our programmes and I remain in awe at how creative loyalty
application should win. loyalty currencies meaningful enough marketing professionals can be and hope
In Currency Alliance's own work with so that 50%-75% of total customers are all of you benefit by monitoring what
clients, we are seeing a much more motivated to participate. For the less others try – not only in your sector, but
frequent customer, this is only possible across industries. For decades, the major
when brands collaborate with their disruptors have often come from outside
loyalty currencies. the industry – so keeping an eye on best
practices on all horizons is time well spent.

Chuck Ehredt
@LoyaltyMagazine Co-founder & CEO, Currency Alliance

@LoyaltyMAwards

@LoyaltySurgery

Prime Platinum
sponsor sponsor

Category
sponsors

APRIL 2020 Loyalty Magazine


22 THE LOYALTY MAGAZINE AWARDS 2020 : THE SHORTLIST
RE-NAMED FOR 2020

Loyalty Re-defined

EdisonVille – Edison Energia / Advice Group Value Exchange to Drive Emotional Loyalty – Cheetah Digital
EdisonVille was set up by Edison to Cheetah Loyalty is an industry
satisfy its desire to create a single leading loyalty programme
place in which to ensure the management solution, providing
all-round involvement of brands with best-in-class tools to
customers, placing them at the design, create, and execute
centre of the brand's world. The data-driven promotions, offers, and
behavioural loyalty strategy is based on a virtual city called real-time interactions that help engage and build lifelong,
EdisonVille, where customers are involved through a gamification profitable, loyal customers. Using Cheetah Experiences, marketers
mechanism designed to engage them with personalised loyalty are empowered and, using gamification, incentivise the new user
paths over time improving long-term relationships and reducing to provide zero-and first-party data and permissions from the
the churn rate. moment they first engage with the brand.
⋆ ⋆
First Complete Smart Loyalty Programmes Integrator App Going beyond a points-based loyalty programme: Pegasus
– Yudonpay BolBol – Pegasus Airlines
Yudonpay is an application that digitizes all loyalty Beyond a classic points-based
cards and gather them in one virtual wallet. It also loyalty approach, BolBol aims to
provides real-time point balance information and provide its members with the best
expiry dates. This way, users know how to redeem travel experience, so in 2019 we
their points, and how to take advantage of the best focused on growing our member
rewards and discounts from their favourite loyalty base, members’ penetration of digital channels, and members’
clubs. Currently more than 600 loyalty clubs, points accrual by increasing flight-related activities, marketing
national & international, in 7 countries, are and our partner network with impressive results.
integrated into one app for our customers. ⋆

VOXI Drop – VOXI / TMW / Mando-Connect
GEMS Rewards: Loyalty Redefined through Enhanced Customer VOXI Drop is a new kind of loyalty
Experience – GEMS Education programme; tearing up the loyalty rulebook.
Designed with the purpose of VOXI Drop is inspired by youth culture,
helping to make school fees streetwear brands and ‘drop culture’. Instead
cost-neutral for our parents while of a traditional “points based” loyalty scheme
enhancing the lifestyle of GEMS we offer spontaneous limited ‘drop releases’
Education families and colleagues to drive brand love, word of mouth and keep
by bringing compelling offers, GEMS Gen Z coming back for more.
Rewards is offered on a redefined and newly enhanced ⋆
proprietary mobile platform that is controllable, making it simple
to use, putting it directly in our members’ hands. Reinventing loyalty to habituate non-fuel forecourt visits
⋆ – Shell Go+ / Wunderman Thompson
In 2019, Shell closed its long-
Flipping loyalty on its head – Sky Germany / Loyalty Prime standing loyalty programme –Shell
With “Extra” Sky has launched an Drivers’ Club (SDC). A points
innovative and very emotional collection programme, SDC
customer loyalty programme – rewarded members for fuel-litres
acquiring 1 million members filled. In a market with falling
within 12 months. The programme works exclusively with tiers, petrol consumption and tightening margins, Shell re-oriented its
based on customer tenure, and does not require any points. approach towards non-fuel retailing (NFR). Shell Go+ launched
Additionally, Sky went to great lengths to offer their members with a focus on visits and NFR.
amazing “money-can’t-buy” experiences for free. ⋆

Share Rewards Programme – Majid Al Futtaim
On 19 September 2019, Majid Al Futtaim
introduced a new paradigm in loyalty programmes
with their unified offering called SHARE. Members Category sponsor
have the breadth of Majid Al Futtaim's ecosystem
at their fingertips. With over 2, 300 stores, across
17 shopping malls and beyond, to earn, redeem
and benefit from. The possibilities with SHARE are
endless.

Loyalty Magazine APRIL 2020


THE LOYALTY MAGAZINE AWARDS 2020 : THE SHORTLIST 23

Best Use of Gamification to Enhance Loyalty

Innovative Gamification in Loyalty and Customer Experience Passport to Free Flights drives higher member activation
– Orange Belgium / Evolving Systems – InterMiles
Through a shared vision to enhance With an aim to educate its members
customer loyalty, Evolving Systems about the various ways in which they
and Orange Belgium have created, can benefit from the programme and
managed and expanded a highly innovative gamification-led its offerings, InterMiles exemplified
customer loyalty programme, Orange Thank You. This constitutes how such educational campaigns can
a step forward in digital engagement and is a gamification-led be engaging as well as interactive
concept, flexible enough for Orange to creatively ‘own’ and evolve. resulting in higher member activation and loyalty.
⋆ ⋆
Showcasing How Gamification Can Foster Long-term Loyalty Epic Star Wars loyalty programme connects generations of fans
(Emotional) Relationships With Customers – Ooredoo Myanmar – Kaufland / BrandLoyalty
/ Evolving Systems The Kaufland supermarket chain
Ooredoo Myanmar has created a gamification- recently used the power of gamification
led customer loyalty programme, Ooredoo VIP. to bring its Star Wars 'spend and get'
The main objective for 2019 was to drive promotion to life across eight European
adoption and traffic to the app, to create and countries. Generations of fans were
generate habitual app usage, thereby encouraged to become Jedi Masters by
improving Ooredoo’s engagement with its collecting 48 AR-enhanced cards, learning about the Star Wars
subscribers, leading to improved user revenues and churn universe and mastering digital challenges in the K-Master app.
reduction. ⋆

Alibaba’s Fresh Hippo goes on a journey with The Lion King
EdisonVille – Edison Energia / Advice Group – Hema China / BrandLoyalty
EdisonVille was set up by Edison to The Chinese retailer Fresh Hippo mixed new
satisfy its desire to create a single technologies with nostalgia by introducing an
place in which to ensure the omnichannel game to boost online and offline
all-round involvement of customers, participation in its supermarket loyalty
placing them at the centre of the programme. Customers collecting digital stamps
brand's world. The behavioural to redeem for Royal VKB healthy-on-the-go
loyalty strategy is based on a virtual city called EdisonVille, where items went on a gamified 'jungle journey'
customers are involved through a gamification mechanism inspired by Disney’s movie The Lion King that
designed to engage them with personalised loyalty paths over added excitement to the entire promotional route.
time, improving long-term relationships and reducing churn rate. ⋆

Pathé All Stars: a new chapter for loyal film lovers
Scratch-to-win game keeps members coming back – Pathé / Magneds
– Primera / m–wise / TBWA\X Pathé Cinemas, market leader in The Nether-
With over 500 stores and an average of lands, presents for the first time in the cinema
825,000 customers per week, Primera is the business, a layered reward programme called
largest convenience store chain in the Pathé All Stars. Going far beyond just collecting
Netherlands. In 2019, Primera transformed its points, Pathé creates a memorable experience for
traditional savings card system into a mobile their members during every visit. A free app
loyalty programme with gamification at its which is easy to use and brings every member
core in the form of a daily scratch-to-win game. instant gratification, lots of benefits and a true star status.
⋆ ⋆
Senyapdiye – Turkcell Der große emoji® Sammelspaß– ALDI SÜD and ALDI Nord
To celebrate Turkcell’s 25th anniversary, a Germany / Boost Deutschland
6-week game-based solution was created “Der große emoji® Sammelspaß” was the
with each week of the campaign owned first ever combined ALDI SÜD and ALDI
by a different Turkcell digital service. Nord short-term loyalty approach in
Specific tasks on the digital app were set Germany, running in over 4,100 stores.
each week. Customers could get up to Novum: digital solution connected classic
25GB during the six weeks by joining the game plus gifts when family collectibles approach & digital
specific tasks were complete. Great customer demand led to an experience resulting in higher shopping frequency and spends
extension for three more weeks, with three more digital while featuring eco-friendly packaging.
applications and 3GB/week gift. ⋆

APRIL 2020 Loyalty Magazine


24 THE LOYALTY MAGAZINE AWARDS 2020 : THE SHORTLIST

Best Customer Experience

Aegon Radically Improves NPS Score Through Customer Centric Loyalty at Shell Means More Than Fuel – Shell Oil Products US
Mentality – Aegon UK / MaritzCX Creating loyalty and brand love
When merging the Cofunds through GOLD+, an experiential
investment platform into that of and exclusive rewards-based
Aegon, it was more than a bumpy loyalty programme offered by
transition and left many of the Shell to their best customers.
400,000 Cofunds customers with a less than expected level of ⋆
service and continuity. This was turned around with a number of
initiatives including the introduction of the Aegon Cares culture The exclusive tier-based programme for our HVCs
which resulted in an NPS shift from –65 to +19 over 18 months. – Qitaf Tamayouz Programme / Saudi Telecom Company (STC)
⋆ STC is the leading telecommunication
services provider in the Middle East region.
Vans Builds Authentic Connections and Engages Fans with STC’s Qitaf Tamayouz loyalty programme is a
Personalized Experiences – Vans / Cheetah Digital tier-based programme exclusively designed
Vans Family is an interactive and intuitive for its high-value customers. The
loyalty programme designed to recognize, programme offers exclusive rewards,
reward and celebrate fans for who they are benefits, and privileges that encompass the
and what they like to do. Vans Family allows best in region customer experience, providing priority service 24/7.
us to get to know consumers by observing ⋆
behaviours and offering tailored
experiences, unique products and services, Platinum Black – Turkcell
and personalized brand interactions. Turkcell Platinum, the premium
⋆ loyalty programme of Turkcell
welcomed a new and enhanced
Best Customer Experience through Improved Engagement and tier to the family; Turkcell Platinum
Access – GEMS Education Black! which was launched in order to meet the needs of existing
Designed with the purpose of customers attached to their phones, build a stronger relationship
helping to make school fees with them and attract new high consumption consumers while
cost-neutral for our parents and using company resources smartly.
to help enhance our colleagues’ ⋆
lifestyles by bringing compelling
offers, GEMS Rewards is offered Turkcell GO Digital Sales Platform – Turkcell
on a redefined and newly Turkcell GO is a digital communica-
enhanced mobile platform making it simple to use and putting it tion and sales platform with the
directly in our members’ hands. aim to revolutionize retail experi-
⋆ ence for both customers and
employees by bringing together
Pathé All Stars: Feel Like a Movie Star – Pathé / Magneds physical touch and digital capabili-
Pathé Cinemas, market leader in The ties. The platform helps improve the
Netherlands, presents for the first time in retail experience by creating a professional attitude and an
cinema business, a layered reward experience differentiated, tailored for each customer.
programme called Pathé All Stars. Going far ⋆
beyond just collecting points, Pathé creates
a memorable experience for their members
during every visit across their whole journey.
An interactive video to reduce the number of questions to
Customer Service resulted in high customer satisfaction and an
effective customer contact strategy.

Loyalty Magazine APRIL 2020


THE LOYALTY MAGAZINE AWARDS 2020 : THE SHORTLIST 25

Best Use of Technology – Customer facing or back-end

“Nel Mulino Che Vorrei” – Mulino Bianco / Advice Group Exclusive loyalty programme to reach end customers
Mulino Bianco belongs to the Barilla – Samsung Galaxy Club / PINS
Group, an Italian leader in bakery An innovative collaboration between PINS and
products. Nel Mulino che Vorrei is a Samsung, a non-retail partner, to reach and
behavioural community designed to reward end-customers without the involvement
foster mutual interactions between of retailers. Samsung Galaxy Club – a targeted
Mulino Bianco and its consumers. The use of CDP (Wekit) cutting-edge extension to the existing PINS
combined with an innovative application of the OCR system, loyalty app meant to enhance the exclusive
offers never-seen-before possibilities in big data analysis. travel experience for Samsung Galaxy Club members.
⋆ ⋆
Value Exchange to Drive Emotional Loyalty – Cheetah Digital Smile Social Benefit Platform – Turkcell
Cheetah Loyalty is an industry leading “Smile Social Benefit Platform” is a new AI
loyalty programme management technology-based platform that includes
solution, providing brands with social responsibility projects to create loyalty
best-in-class tools to design, create, by linking them with the smile emotion. The
and execute data-driven promotions, first part of it is “Spread the Smile” which is
offers, and real-time interactions that help engage and build for animals. The second phase called “Spread the Green” is for nature.
lifelong, profitable, loyal customers. Using Cheetah Experiences, ⋆
marketers are empowered and, using gamification, incentivise
the new user to provide zero-and first-party data and permissions Tunç Genç's dream becomes real with Turkcell 5G – Turkcell
from first engagement. Tunç Genç, who has muscular discomfort, is one of
⋆ the biggest fans of Trabzonspor. His biggest dream
was to score a goal for Trabzonspor one day. We
Hotels & Shop Remarketing – InterMiles wanted to realize Tunç's dreams to show how 5G
InterMiles used various technology will remove the limits. In order to
technological tools, such as introduce such technology, we wanted to make a
Adobe Analytics and Data Work little kid's dreams come true. Then we planned all our work and
Bench (DWB), to assess challenges in converting its members infrastructure accordingly.
during their journey on the website. The programme then ⋆
stitched together the online and offline member data to come up
with comprehensive campaigns to address the challenges Augmented Reality Easter Egg Hunt Game – British Gas Rewards /
identified, resulting in higher shop and hotel transactions. Mando-Connect / Spark
⋆ British Gas Rewards’ Augmented Reality Easter Egg
Hunt Game was the first use of Augmented Reality
STC Qitaf Loyalty Programme, the largest loyalty programme (AR) in loyalty. It created a unique family experience
in KSA! – Saudi Telecom Company (STC) that was as much fun to play as to win, engaged
STC is the leading telecom in the region and hundreds of thousands and significantly increased
its loyalty programme, Qitaf, is one of the NPS, engagement, social shares and customer lifetime
largest. It serves close to 15 million value.
members, with 60+ partners representing
170+ brands, with 4,000+ branches across ⋆
Saudi Arabia. It achieves more than 50%
engagement and a positive impact on First Complete Smart Loyalty Programmes Integrator App – Yudonpay
churn rates, improved programme CSI scores and has increased Yudonpay is an application that digitizes all loyalty cards
our unique external earner customers generating non-telco and gathers them in one virtual wallet. It also provides
revenue by 300% YoY. real-time point balance information and expiry dates. This
⋆ way, users know how to redeem their points, and how to
take advantage of the best rewards and discounts from
From One Day to One Minute – Radisson Hotel Group / their favourite loyalty clubs. Currently more than 600
Collinson loyalty clubs, national & international, in 7 countries, are
The automation of repetitive tasks integrated into one app for our customers.
continues to be a holy grail, but we took on ⋆
the challenge of whether we could
automate the build of our client’s email
marketing communications. The answer?
Reducing the construction of highly
dynamic and complex email
communications from a full day to a single minute.

APRIL 2020 Loyalty Magazine


26 THE LOYALTY MAGAZINE AWARDS 2020 : THE SHORTLIST

Best Use of CRM (Customer Relationship Management)

Dulux Trade Paint Expert – AkzoNobel / m–wise PAYBACK GO: An innovative location-based service – PAYBACK
AkzoNobel, experts in With PAYBACK GO, PAYBACK
making paints and creates an even stronger
coatings, is passionate relationship with its
about delivering the partners, who are then
high-performance products and services their customers expect. more closely linked to the
Now the company can help decorators make a professional loyalty system long-term. The uniqueness of this product sets
impression in every aspect of their business with Dulux Trade Paint PAYBACK apart from the competition and makes it even more
Expert, a highly effective B2B CRM initiative. attractive for many retailers in Germany.
⋆ ⋆
Store Homework and Member Value Score – Hackett / Collinson VeryMe Rewards from Vodafone UK – Vodafone /
Hackett’s invitation-only Mando-Connect
international customer VeryMe Rewards from Vodafone is the
engagement programme most personalised, most loved retail loyalty
65B is unique, designed to programme. It gives members rewards
enhance on and offline they REALLY love, based on smart
customer experience. Data preferencing, gamified engagement
is surfaced to staff on techniques, data and insight. Machine
iPhones (portals) enabling highly personalised interactions and learning enables it to get better over time
‘surprise’ rewards. Three years and 160k members on, we wanted too. It has significantly driven loyalty,
to recognise best members instore and re-engage those who’d reduced churn and increased NPS.
lapsed.
⋆ ⋆
Layered Offers – Turkcell Liwa Stores pioneers new customer loyalty programme for
Personalized 2nd and 3rd tier offerings for our franchise retailers, brands and shoppers – Liwa Stores / Coniq
customers who reject our 1st tier offers in our Coniq helped Liwa Stores create an
telesales, dealers and inbound call centre industry leading loyalty
channels with help of customer analytics and programme with over 130,000
omnichannel strategy aiming to both increase engaged members, resulting in
customer retention and maximize revenue. increasing Average Transaction
Value (ATV) uplift of over 100%, all within the first six months.
⋆ ⋆
Package Upgrade Programme – Turkcell
Package upgrade is a
programme that boosts
customer loyalty in medium
term as well as creating
immediate gains in revenue.
In this programme, when a
customer purchases an
add-on package, we instantly contact them and offer a larger
package. From customers that accepted our offer, we observed a
notable 43% revenue increase. Considering this increase occurs
together with the increased customer satisfaction, this is
expected to be a sustainable growth in revenue.

Category sponsor

Loyalty Magazine APRIL 2020


THE LOYALTY MAGAZINE AWARDS 2020 : THE SHORTLIST 27

Best Loyalty Industry Innovation

PAYBACK GO: An innovative location-based service – PAYBACK Launch of Airline Agnostic Miles Accrual & Redemption
With PAYBACK GO, PAYBACK – InterMiles
createsan even stronger InterMiles (previously known as JetPrivilege)
relationship with its partners, became an airline agnostic platform where
who are then more closely members can earn and redeem InterMiles
linked to the loyalty system against 250+ Airlines and across 8000+
long-term. The uniqueness of this product sets PAYBACK apart destinations,with an objective to have a unique
from the competition and makes it even more attractive for many proposition, allowing members to redeem 100%
retailers in Germany. miles to book free flights and vacations and
⋆ realise the value of the programme.

Bringing 21,000 Japanese stores under one programme
– 7&i Holdings / Brierley First Mover in Pay TV loyalty – Sky Germany / Loyalty Prime
7&i Holdings and Brierley Japan With “Extra” Sky has launched
implemented the “Seven Mile an innovative, engaging and
Programme” to bring very emotional customer
approximately 21,000 Japanese loyalty programme –acquiring
stores under a single loyalty programme. In a market unfamiliar 1 million members within 12 months. The programme works
with this concept, this is not only a huge achievement for the exclusively with tiers and does not require any points. Additionally
brand, but a truly innovational programme for consumers and its Sky is the first media and entertainment company to launch a
15 million members. loyalty programme in Germany.
⋆ ⋆
Creating frictionless loyalty with Fidel’s card-linking API – Fidel Augmented Reality Easter Egg Hunt Game – British Gas
Fidel’s card-linking API makes it quick and easy Rewards / Mando-Connect / Spark
to create loyalty programmes that cut friction British Gas Rewards’
and drive better customer experiences. We Augmented Reality Easter Egg Hunt Game
deliver real-time payment data from Visa, was the first use of Augmented Reality
Mastercard and Amex, so customers like Avios, (AR) in loyalty. It created a unique family
Klarna and the Royal Bank of Canada can experience that was as much fun to play as
securely scale flexible, frictionless loyalty programmes. to win, engaged hundreds of thousands and
⋆ significantly increased NPS, engagement, social
shares and customer lifetime value.
First Complete Smart Loyalty Programmes Integrator App ⋆
– Yudonpay
Yudonpay is an application that digitizes all Loyalty Connected – Mastercard
loyalty cards and gathers them in one virtual Loyalty Connected is a new, ground-
wallet. It also provides real-time point balance breaking loyalty technology which links
information and expiry dates. This way, users a retailer’s loyalty programme to a
know how to redeem their points, and how to consumer’s preferred payment card
take advantage of the best rewards and discounts (Visa, Mastercard, Amex, China Union
from their favourite loyalty clubs. Currently more Pay (CUP). It solves key pain points of the loyalty industry: more
than 600 loyalty clubs, national & international, than 4 out of 5 (84 per cent) UK consumers participate in a loyalty
in 7 Countries, are integrated into one app for our scheme, however a loyalty card is presented for only 20% of
customers. qualifying transactions, resulting in lost points and rewards for
⋆ consumers and less data collection for retailers.

Best Loyalty Industry Innovation through Segmentation and
Automatic Curation – GEMS Education Radley turns one-off transactions into loyal lifetime customers
Designed with the purpose of – Radley / Mention-Me
helping to make school fees Radley used Mention-Me’s Retention
cost-neutral for our parents while toolkit, including referral, AB testing,
enhancing the lifestyle of GEMS NPS and human expertise backed by
Education families and colleagues data science; to move customers from
by bringing compelling offers, GEMS purchasing once to becoming loyal
Rewards is offered on a redefined and newly enhanced customers, increasing engagement,
proprietary mobile platform that is controllable, making it simple retention and revenue.
to use and putting it directly in our members’ hands. ⋆

APRIL 2020 Loyalty Magazine


28 THE LOYALTY MAGAZINE AWARDS 2020 : THE SHORTLIST

Best Use of Customer Analytics/Data

Leveraging Big Data in Loyalty – SCENE / Bond Brand Loyalty “Nel Mulino Che Vorrei” – Mulino Bianco / Advice Group
Bond has built an industry-leading Mulino Bianco belongs to the Barilla
analytics platform that enables the Group, an Italian leader in bakery
secure discovery and curation of products. Nel Mulino che Vorrei is a
insights for SCENE. The platform uses behavioural community designed to
best-in-class technologies allowing SCENE to securely store, foster mutual interactions between
catalogue and activate their data-assets in real-time; providing an Mulino Bianco and its consumers. The use of CDP (Wekit)
unparalleled personalized experience for members and capabilities combined with an innovative application of the OCR system,
to enhance engagement and partnership strategies. offers never-seen-before possibilities in big data analysis.
⋆ ⋆
Delivering efficient app downloads with propensity modelling Machine learning as a positive boost to customer experience
– Nectar 360 / Iris Nation Worldwide – PINS
In October 2019, we unveiled the With applied machine learning algorithms for
biggest development in Nectar’s email marketing campaigns, the PINS loyalty
17-year history – a new brand, app programme succeeds in creating a better
and digital experience. But without proposition for every customer and maximizes
the biggest budget to reach our 18m marketing campaign performance
customers, we had to be efficient in engaging our audience and significantly. The open rates increased by four
driving the action we needed–app downloads. So we built a percentage points while allowing the loyalty programme to
bespoke propensity model which delivered beyond any of our minimize unnecessary costs associated with email marketing, as
expectations. sent email volume shrank by 17%.
⋆ ⋆
Member Value Score and Store Homework – Hackett / Collinson Using data science to increase Loyal-Tea at Chatime
Hackett’s invitation-only international – Customology
customer engagement programme Iced Bubble Tea Franchise, Chatime Australia
65B is unique, designed to enhance on wanted a customer growth solution which
and offline customer experience. Data would benefit their brand, franchise partners
is surfaced to staff on iPhones (portals) and customers. Using customer and
enabling highly personalised interactions and ‘surprise’ rewards. transactional data, Customology conducted a
Three years and 160k members on, we wanted to recognise best Customer Growth Analysis to help Chatime
members instore and re-engage those who had lapsed. understand their customers behaviours better. The insights
⋆ helped Chatime design a highly personalised customer
communications programme.
Analytical Approach to Lifecycle Management for Digital Services ⋆
– Turkcell
Turkcell operates a recommendation Sun Savers Segmentation: Providing insight into our print
system based on analytics and data, customers – News UK
taking into account the entire service A robust segmentation of the
experience as lifecycle, and maximize customer base allowed Sun Savers to
customer satisfaction and income. gain actionable insight into their print
Thanks to bringing the right action to the right customer, we audience that is normally reserved for
ensure that customer complaints are reduced, digitalization of online-only brands. Consequently, Sun
customers is increased, so “Turkcell understands me and offers Savers has grown 38% YoY and is able to deliver a more engaging
me suitable solutions”. With this lifecycle based analytical experience for customers, delivering relevant content and
approach we receive ~ 6 times better returns, and cover 75% of promotions to all.
new subscribers. ⋆

Driving engagement and customer lifetime value through
Flights Candy-ladder – InterMiles redemption – Radisson Hotel Group / Collinson
InterMiles (formerly JetPrivilege) Driving redemption experiences, that
provides multiple opportunities increase programme engagement and
to earn currency on flights customer lifetime value is a primary
across 250+ airlines to 8,000+ destinations across the globe. focus for Radisson Rewards. Putting
Reviewing our offerings, InterMiles used customer data and a first class data analysis, insight and
“candy-ladder offer” to persuade customers to change their travel targeting at the heart of our approach we undertook activity to
behaviour. address these challenges and improve the perception of
⋆ redemptions within the business.

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Eco-loyalty Initiative of the Year

Beautycycle – John Lewis ‘Meera Rewards’ Loyalty Programme – Al Meera / AIMIA


The beauty industry is a big contributor to Al Meera is a leading Qatar
global pollution, producing around 120 billion community grocery retailer with
units of packaging each year and elements over 52 branches consisting of
like caps, labels, and pumps aren’t accepted supermarkets, hypermarkets and convenience outlets, many are
by most local recycling programmes. Working neighbourhood stores. With a vision “To be the favourite
with us, TerraCycle manage the reverse neighbourhood retailer in 2020,” Al Meera launched a loyalty
logistics, promising to ‘recycle the un- programme in December 2018. With a focus on family and
recycleable’ turning them into plastic pellets rewarding its customers, Al Meera is on its way to becoming
and then into items such as garden furniture Qatar’s favourite loyalty programme.
ensuring a fully circular proposition. ⋆

Empowering shoppers to lower their carbon foot print via card-
'Samen Greenchoice’ Loyalty Programme – Enabling & linking – Almond / Fidel
Rewarding Sustainable Consumer Behaviour – Greenchoice / Almond is the first app that empowers anyone
Touch Incentive Marketing to become carbon balanced by helping them to
Greenchoice is the largest brand 'Buy Better, Act Better and Offset the Rest'.
and supplier in the Netherlands They have partnered with ethical retailers to
when it comes to sustainable encourage more sustainable shopping
energy. While a proportion of patterns. Consumers link their payment card
customers are loyal, in 2018 a using Fidel’s API; when they spend in participating locations,
significant number of new offset coins are awarded automatically and converted into trees
customers churned in the first year. planted by Almond’s charity partners.
Still within its first year of operation, ⋆
Samen Greenchoice is well underway to reducing this churn.
⋆ Five Days of Vattenfall. Join the movement towards fossil-free
living! – Vattenfall / Doornvogel
EdisonVille – Edison Energia / Advice Group ‘Five days of Vattenfall’ motivated
EdisonVille was set up by Edison to customers to join in Vattenfall’s
satisfy its desire to create a single bold mission: To make fossil free
place in which to ensure the living possible within one
all-round involvement of generation. Over the course of 5
customers, placing them at the days, Vattenfall used a smart
centre of the brand's world. The multi-channel engagement approach to bring the mission to a
behavioural loyalty strategy is based on a virtual city called personal and emotional level with a positive impact on the
EdisonVille, where customers are involved through a gamification attitude towards Vattenfall and increased loyalty intentions of
mechanism designed to engage them with personalised loyalty more than 20%.
paths over time improving long-term relationships and reducing ⋆
the churn rate.
⋆ Biggest WWF loyalty programme drives growth at Karusel in
Russia – Karusel / Boost
Super Foodies, an eco-sustainable way to have fun with content The shoppers of Karusel’ were offered a
– Esselunga / Boost Italia collection of special gift sets consisting of a
Super Foodies, in addition to being plush toy in a ceramic bowl branded by the
recognised as intrinsically famous “Panda” and certified by WWF. The
appealing and playful but collection had been designed specifically
educational content (healthy food), for Russia where this is the first short term
is further achieving break-through loyalty programme with a distinct social
positioning of Esselunga as a food retailer. This is thanks to its first aspect. Each set featured a leaflet on the
special campaign aimed at children through an unbranded and particular species so that the kids could
100% eco-friendly range of products. learn about its habitat and lifestyle.
⋆ ⋆

Category sponsor

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Best Use of Communications (including social media)

Super Foodies, an eco-sustainable way to have fun with content The Loyalty Podcast – New World Loyalty
– Esselunga / Boost Italia New World Loyalty is a global network
Super Foodies, in addition to being of consultants who specialise in all
recognised as intrinsically aspects of loyalty marketing. We
appealing and playful but created The Loyalty Podcast in
educational content (healthy food), September 2019 to share best practice
is further achieving break-through with a global audience. At the time of entry there were 7 episodes
positioning of Esselunga as a food retailer. This is thanks to its first with over 3,500 listens across more than 50 countries. In a year
special campaign aimed at children through an unbranded and when the news was dominated by Brexit, border walls and trade
100% eco-friendly range of products. barriers. The Loyalty Podcast demonstrates how technology can
⋆ be used to bring people and ideas together for the benefit of all.

Crowning a new Emperor as part of a majestic marketing
campaign – Unser Ö-Bonus / DataLab Pathé All Stars: Feel Like a Movie Star – Pathé / Magneds
We crowned a new Emperor as a testimonial Pathé Cinemas, market leader in The
to publicize an Austrian multi-partner loyalty Netherlands, presents for the first time
programme that combines an array of in the cinema business, a layered
providers from various business categories. reward programme called Pathé All
The Emperor was visible to Austrians at all Stars. Going far beyond just collecting
possible contact points from the first day of points, Pathé creates a memorable
the programme ś launch. With majestic omnipresence. experience for their members during every visit. A free app which
⋆ is easy to use and brings every member instant gratification, lots
of benefits and a true star status.
€pistrofi Loyalty Programme Digital Awareness Campaign ⋆
– Eurobank / Mastercard
Eurobank, in collaboration with Mastercard, Skip this ad, please! – Turkcell / Rafineri
during the last quarter of 2019, designed and In the enriched Turkcell Fiber
implemented an innovative communication world, there were solutions to
digital campaign for the €pistrofi loyalty many consumer problems. So,
programme. The communication campaign instead of highlighting a single feature in communication, our
aimed to increase awareness of Eurobank’s ‘Countless to Tell’ campaign used 7 different films. All reached
and AEGEAN Airlines’ partnership and educate the audience on large audiences on Youtube. We used the collage we crafted from
the new rewarding process of the programme. these 7 films on both traditional and digital media channels.
⋆ ⋆
Assurance Campaign – InterMiles Cendris Coins Employee Loyalty Programme – A Loyalty
When Jet Airways, India’s oldest Currency that Enabled an Organisational Transformation
private airline, shut down – Cendris / Touch Incentive Marketing
operations, millions of hopes With over 3,000 employees, Cendris
also came crashing down. The grounding of Jet Airways posed a carries out contact center activities for
major threat to JetPrivilege -its popular frequent flyer medium and large clients. In an
programme. Even as speculation loomed over the fate of Jet increasingly tough market, Cendris had
Airways, consumer anxiety over losing their coveted miles had the to distinguish itself from competitors
potential to erase the trust and goodwill of JetPrivilege. We and invent creative solutions to recruit and engage employees to
stepped in with that assurance. meet customers' needs. The Cendris Coins Employee Loyalty
⋆ Programme was one of the key drivers to enable this.

Acquiring one million members in 12 months – Sky Germany /
Loyalty Prime
With “Extra” Sky has launched
an innovative, engaging and
very emotional customer loyalty
programme –acquiring 1 million
members within 12 months due to an amazing communication
and promotion of the programme as well as a very strong value
proposition. The programme works exclusively with tiers and does
not require any points.

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Best Loyalty Programme Marketing Campaign of the Year

“No Excuses Day” – SCENE / Bond Brand Loyalty Inspiring over 18 million customers to ‘Get their Nectar on'
With support from a nationwide, fully integrated – Nectar 360 / Iris Nation Worldwide
creative campaign, exclusive partner offers and a In October 2019, we unveiled the biggest
set of on the ground street activations, SCENE development in Nectar’s 17 year history – a
encouraged people to choose fun and make new brand, app and digital experience. We
memories by abandoning their excuses and had to fundamentally change our
spending time with the ones that matter most on customer’s deep-rooted behaviour. In short,
“No Excuses Day.” A day to help create a deeper emotional we had to motivate our customers to
connection to the brand. change the way they shopped, and this campaign did exactly that.
⋆ ⋆
Super Foodies, an eco-sustainable way to have fun with content VeryMe Rewards – Vodafone UK / Mando-Connect
– Esselunga / Boost Italia Christmas. It’s the most wonderful
Super Foodies, in addition to time of the year... for Loyalty
being recognised as Programmes! For VeryMe Rewards
intrinsically appealing and from Vodafone, we offered
playful but educational customers the chance to unwrap
content (healthy food), is what they love – from novelty
further achieving break socks to trialling unlimited data to
through positioning of Esselunga as a food retailer. This is thanks help with the Xmas shopping. The campaign exceeded its key
to its first special campaign aimed at children through an objective and all other KPIs.
unbranded and 100% eco-friendly range of products. ⋆

Senyapdiye – Turkcell
Crowning a new Emperor as part of a majestic marketing To celebrate Turkcell’s 25th year
campaign – Unser Ö-Bonus / DataLab anniversary, a 6-week game-based
We crowned a new Emperor as a testimonial solution was created with each
to publicize an Austrian multi-partner loyalty week of the campaign owned by a
programme that combines an array of different Turkcell digital service.
providers from various business categories. Specific tasks on the digital app
The Emperor was visible to Austrians at all were set each week. Customers
possible contact points from the first day of could get up to 25GB during the six weeks by joining the game
the programme's launch. With majestic omnipresence. plus gifts when specific tasks were complete. Great customer
⋆ demand led to an extension for 3 more weeks, with 3 more digital
applications and 3GB/week gift.
myLakeland launch growing customer loyalty and sales ⋆
– Lakeland / Go Inspire Group
The Lakeland brand is “Nel Mulino Che Vorrei” – Mulino Bianco / Advice Group
extremely strong and Mulino Bianco belongs to the
loved by its customer Barilla Group, an Italian leader in
base but the retailer was struggling to find ways to improve a very bakery products. Nel Mulino che
low shopping frequency. A programme was devised that included Vorrei is a behavioural commu-
personalised offer packs, incentive programmes for retail and nity designed to foster mutual
staff, plus strong marketing partnerships with events including interactions between Mulino
the BBC Good Food Show with impressive results and strong Bianco and its consumers. The use of CDP (Wekit) combined with
customer insight. an innovative application of the OCR system, offers never-seen-
⋆ before possibilities in big data analysis.

Category sponsor

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Best Loyalty Programme of the Year – Food Retail & Non-Food Retail

PAYBACK GO: Increased benefits for customers and dealers Vans Builds Authentic Connections and Engages Fans with
– PAYBACK Personalized Experiences – Vans / Cheetah Digital
​With PAYBACK GO, PAYBACK creates Vans Family is an interactive and intuitive loyalty
an even stronger relationship with programme designed to recognize, reward and
its partners, who are then more celebrate fans for who they are and what they
closely linked to the loyalty system like to do. Vans Family allows us to get to know
long-term. The uniqueness of this product sets PAYBACK apart consumers by observing behaviours and
from the competition and makes it even more attractive for many offering tailored experiences, unique products
retailers in Germany. and services, and personalized brand
⋆ interactions.

“Handy-at-Home” – BP Europe / Motisha / Boost Loyalty
“HANDY-AT-HOME” was last year’s myLakeland launch growing customer loyalty and sales
multi-channel short-term loyalty – Lakeland / Go Inspire Group
campaign launched by Boost Loyalty & The Lakeland brand is
Motisha, enabling BP consumers to save extremely strong and loved by
up for 50% discount on Princess- its customer base but the
Household products –exclusive Black- retailer was struggling to find ways to improve a very low shopping
Label line. The integration of the existing Freebies long-term frequency. A programme was devised that included personalised
Loyalty Card programme can be highlighted as key differentiator, offer packs, incentive programmes for retail and staff, plus strong
resulting in an evidential increase of revisits, an extraordinary marketing partnerships with events including the BBC Good Food
conversion-rate and a significant amount of BP Freebies Show with impressive results and strong customer insight.
redeemed. ⋆

VeryMe Rewards – Vodafone UK / Mando-Connect
Der große emoji® Sammelspaß – ALDI SÜD and ALDI Nord VeryMe Rewards from Vodafone is the most
Germany / Boost Deutschland personalised, most loved retail loyalty
“Der große emoji® Sammelspaß” was programme. It gives members rewards they
the first ever combined ALDI SÜD and REALLY love, based on smart preferencing,
ALDI Nord short-term loyalty approach gamified engagement techniques, data and
in Germany, running in over 4100 insight. Machine learning enables it to get better
stores. Novum: digital solution over time too. It has significantly driven loyalty,
connected classic family collectibles reduced churn and increased NPS.
approach & digital experience resulting in higher shopping ⋆
frequency and spends while featuring an eco-friendly packaging.
⋆ Shell revolutionises the service station loyalty experience in China
– Shell China / Wunderman Thompson
emoji® Conquers Switzerland for the Third Time In 2019 Shell launched its new
– COOP Switzerland / Boost Group loyalty programme that delivered
After the incredible emoji® campaigns exceptional customer experience
in 2017 & 2018 Boost continued its and value to its customers. Loyalty
success story with the 3rd loyalty customers enjoyed the benefits of
campaign at the leading Swiss retailer frictionless identification and
COOP in 2019. With “emoji® Summer” payment using digital channels. From QR codes and gamification,
Boost combined innovative products Shell set itself apart from all of its competitors.
and the emotional license emoji® to a “must-have” outdoor ⋆
assortment for the whole family.

Super Foodies, an eco-sustainable way to have fun with content
– Esselunga / Boost Italia
Super Foodies, in addition to being
recognised as intrinsically
appealing and playful but
providing educational content Category sponsor
(healthy food), is further achieving
break-through positioning of Esselunga as a food retailer. This is
thanks to its first special campaign aimed at children through an
unbranded and 100% eco-friendly range of products.

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Best Loyalty Programme of the Year – Travel & Experiences

Pathé All Stars: Feel Like a Movie Star – Pathé / Magneds Launch of Airline Agnostic Miles Accrual & Redemption
Pathé Cinemas, market leader in The – InterMiles
Netherlands, presents for the first time InterMiles (previously known as JetPrivilege)
in cinema business, a layered reward became an airline agnostic platform where
programme called Pathé All Stars. Going members can earn and redeem InterMiles
far beyond just collecting points, Pathé against 250+ Airlines and across 8000+
creates a memorable experience for their destinations, with an objective to have a unique
members during every visit across their proposition, allowing members to redeem 100%
whole journey. An interactive video to miles to book free flights and vacations and
reduce the number of questions to Customer Service resulted in realise the value of the programme.
high customer satisfaction and an effective customer contact
strategy. ⋆

Driving engagement and customer lifetime value through
Picture Your Next Destination – Again. More sales and a higher redemptions – Radisson Hotel Group / Collinson
ROI – TravelCo Nordic The automation of repetitive
We took our 2018 award winning tasks continues to be a holy
“picture your next destination” grail, but we took on the
programme to the next level by turning challenge of whether we could
it into a series of integrated initiatives automate the build of our
with more partners and more client’s email marketing
dimensions but maintaining the core communications. The answer?
foundation of innovative use of CRM Reducing the construction of highly dynamic and complex email
and gamification. The overall objectives communications from a full day to a single minute.
were to: improve company image, increase the propensity for ⋆
future sales and loyalty and convert loyalty into sales in a
profitable way (ROI). Going beyond a points-based loyalty programme: Pegasus
⋆ BolBol – Pegasus Airlines
Beyond a classic points-based loyalty
The World’s Most Generous Rewards Programme approach, BolBol aims to provide its
– Wyndham Rewards members with the best travel experience, so
Wyndham Rewards is in 2019 we focused on growing our member
Wyndham Hotels & Resorts’ base, members’ penetration of digital
loyalty programme with channels, and members’ points accrual by
approximately 81 million increasing flight-related activities, marketing
members. It is designed for and our partner network with impressive
the everyday traveller, results.
members earn a guaranteed ⋆
1,000 points with every
qualified stay and may redeem points for a wide-range of Shell revolutionises the service station loyalty experience in
rewards, including free nights at any of approximately 9,300 China – Shell China / Wunderman Thompson
hotels or tens of thousands of vacation club resorts and vacation In 2019 Shell launched its
rentals globally. new loyalty programme that
⋆ delivered exceptional
customer experience and
value to its customers. Loyalty
customers enjoyed the
benefits of frictionless
identification and payment using digital channels. From car plate
recognition to QR codes and gamification, Shell set itself apart
from all of its competitors.

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Best Use of Mobile & Social

First Complete Smart Loyalty Programmes Integrator App KoçAilem Close Group Privilege Platform launched
– Yudonpay – KoçAilem Mobile
Yudonpay is an application that allows to digitize all KoçAilem, which is Turkey’s first and largest
loyalty cards and gather them inone virtual wallet. It closed group privilege platform, developed
also provides real-time point balance information KoçAilem Mobil for its members to easily access
and expiry dates. This way, users know how to the privileges offered by more than 200 brands
redeem their points, and how to take advantage of from anywhere. With KoçAilem Mobil, special
the best rewards and discounts from their favorite discounts, family memberships, second-hand
loyalty clubs. Currently more than 600 loyalty clubs, sale adverts and many other privileges became
national & international, in 7 Countries, are easily accessible.
integrated into one app for our customer. ⋆

Vans Builds Authentic Connections and Engages Fans with
Exclusive loyalty programme to reach end customers Personalized Experiences – Vans / Cheetah Digital
– Samsung Galaxy Club / PINS Vans Family is an interactive and intuitive
An innovative collaboration between PINS loyalty programme designed to recognize,
and Samsung, a non-retail partner, to reward and celebrate fans for who they are and
reach and reward end-customers without what they like to do. Vans Family allows us to
the involvement of retailers. Samsung get to know consumers by observing behaviours
Galaxy Club – a targeted cutting-edge and offering tailored experiences, unique
extension to the existing PINS loyalty app meant to enhance the products and services, and personalized brand interactions.
exclusive travel experience for Samsung Galaxy Club members. ⋆

Pathé All Stars: feel like a movie star – Pathé / Magneds
Qitaf Tamayouz Programme, the exclusive tier-based Pathé Cinemas, market leader in The
programme for our HVCs – Saudi Telecom Company (STC) Netherlands, presents for the first time in
STC is the leading telecommunication services cinema business, a layered reward programme
provider in the region. STC’s loyalty programme, called Pathé All Stars. Going far beyond just
Qitaf, is one of the largest loyalty programmes collecting points, Pathé creates a memorable
in the region, serving close to 15 Million experience for their members during every visit
members, with 60+ Partners representing 170+ across their whole journey. An interactive video to reduce the
brands, with 4,000+ branches across Saudi number of questions to Customer Service resulted in high
Arabia, connected to reward and satisfy our members’ needs. It customer satisfaction and an effective customer contact strategy.
achieves more than 50% engagement with the programme ⋆
benefits which has a positive impact on churn rates, improved
programme CSI scores and has increased unique external earner The Youngest Digital Map of Turkey – GNC Turkcell
customers generating non-telco revenue by 300% YoY. May 19 is a national day celebrated as
⋆ “Commemoration Of Ataturk & Youth
And Sports Day” in Turkey. In 1919,
VOXI Drop – VOXI / TMW / Mando-Connect Ataturk gifted this special day to Turkish
VOXI Drop is a new kind of loyalty programme; youth and 2019 was the 100th year of
tearing up the loyalty rulebook. VOXI Drop is this special day. Our aim was to incorporate young customers into a
inspired by youth culture, streetwear brands unique & creative campaign and to offer them special content to
and ‘drop culture’. Instead of a traditional increase interaction and share on social media. We created the
“points based” loyalty scheme we offer “youngest” digital map of Turkey and developed a special platform
spontaneous limited ‘drop releases’ to drive on GNÇ app to enable users to put their special digital signatures.
brand love, word of mouth and keep Gen Z coming back for more. ⋆

Empowering shoppers to lower their carbon foot print via card-
Orange & Stampix delight customers with personal photos! linking – Almond / Fidel AP
– Orange Belgium / Stampix Almond is the first app that empowers anyone
Most consumers have thousands of photos to become carbon balanced by helping them to
stuck on their smartphones, but when it comes to 'BuyBetter, Act Better and Offset the Rest'. They
printing them it’s always a hassle. Which photos have partnered with ethical retailers to
to select? What format? Which supplier? These encourage more sustainable shopping patterns.
are the main barriers for people to print their Consumers link their payment card using Fidel’s
photos. Telco operator Orange Belgium wanted API; when they spend in participating locations, offset coins are
to solve this problem for its customers in the awarded automatically and converted into trees planted by
Holiday season, and reward their loyalty with Almond’s charity partners.
free photo prints. Fast, Fun and 100% free. ⋆

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Best New Loyalty Launch of the Year

Shell revolutionises the service station loyalty experience in First Instant Loyalty Promotion in Asia – Carrefour China /
China – Shell / Wunderman Thompson BrandLoyalty
In 2019 Shell launched its new loyalty To celebrate the 24th anniversaries of
programme that delivered Carrefour China and Toy Story,
exceptional customer experience and BrandLoyalty teamed up with Disney to
value to its customers. Loyalty launch its first Instant Loyalty Promotion
customers enjoyed the benefits of in China. Built around Toy Story 4
frictionless identification and payment using digital channels. 'Micropopz' giveaways, the omnichannel
From QR codes and gamification, Shell set itself apart from all of programme focused on increasing traffic, digitally enhancing
its competitors. customer loyalty, and creating a magical retail experience.
⋆ ⋆
Crowning a new Emperor as part of a majestic marketing MUSE: Rewarding loyalty with luxury experiences
campaign – Unser Ö-Bonus / DataLab – Chalhoub Group
The jö Bonus Club was created as an Austrian MUSE is an app-driven experience
multi-partner loyalty programme designed to programme that goes beyond
address the issue of excessive loyalty collecting points. Members can access
programmes in the country, while increasing the curated fashion, lifestyle and beauty
benefits for consumers. A new Emperor as a experiences like styling sessions, make overs and benefits
vehicle, majestic benefits for the people. designed to make the shopping journey frictionless. With over
⋆ 200,000 members, MUSE seeks to build emotional loyalty with its
members via experiences.
myLakeland growing customer loyalty and sales – Lakeland / ⋆
Go Inspire Group
The Lakeland brand is extremely strong and On a mission to thank our customers – Sky Germany /
loved by its customer base but the retailer Loyalty Prime
was struggling to find ways to improve a With “Extra” Sky has launched an
very low shopping frequency. A programme innovative, engaging and very
was devised that included personalised emotional customer loyalty
offer packs, incentive programmes for retail programme – acquiring 1 million
and staff, plus strong marketing partnerships with events members within 12 months and
including the BBC Good Food Show with impressive results and providing 350 unique events and experiences to 60.000 of its
strong customer insight. members. The programme works exclusively with tiers, based on
⋆ customer tenure, and does not require any points.

IBL Group launches wiiv Rewards, Mauritius’s first multi-partner
loyalty programme – wiiv Rewards / IBL Group Share Rewards Programme – Majid Al Futtaim
wiiv Rewards, the loyalty programme of On 19 September 2019, Majid Al Futtaim
IBL Group, is the first multi-partner loyalty introduced a new paradigm in loyalty programmes
programme in Mauritius, encompassing a with their unified offering called SHARE. Members
wide range of industries from retail and have the breadth of Majid Al Futtaim's ecosystem
hospitality to pharmaceutical and at their fingertips. With over 2,300 stores, across 17
financial products. This points-based & discount programme shopping malls and beyond, to earn, redeem and
offers members access to a suite of lifestyle benefits which in benefit from. The possibilities with SHARE are
turn, encourages cross-sell within the IBL group. Y1 targets were endless.
exceeded within 3 months of inception. ⋆

Liwa Stores pioneers new customer loyalty programme for
'Meera Rewards' Loyalty Programme – Al Meera Consumer Goods franchise retailers, brands and shoppers – Liwa Stores / Coniq
/ AIMIA Coniq helped Liwa Stores create an
Al Meera is a leading Qatar industry leading loyalty programme
community grocery retailer with over with over 130,000 engaged members,
52 branches consisting of resulting in increasing Average
supermarkets, hypermarkets and convenience outlets, many are Transaction Value (ATV) uplift of over 100%, all within the first six
neighbourhood stores. With a vision “To be the favourite months.
neighbourhood retailer in 2020,” Al Meera launched a loyalty ⋆
programme in December 2018. With a focus on family and
rewarding its customers, Al Meera is on its way to becoming
Qatar’s favourite loyalty programme.

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Best Coupon / Voucher Based Loyalty Programme – Virtual or Paper

Real-time Geotargeting Notification Campaign Pathé All Stars: a new chapter for loyal film lovers – Pathé /
– vouchercloud / Plot Projects Magneds
The vouchercloud app (8M Pathé Cinemas, market leader in The
downloads) and Plot Netherlands, presents for the first time in
Projects location technology the cinema business, a layered reward
combined both traditional and online retail experiences to drive programme called Pathé All Stars. Going far
revenue for Currys PC World with a performance marketing beyond just collecting points, Pathé creates a
campaign for the game ‘Red Dead Redemption 2’. By offering an memorable experience for their members
exclusive promotion code delivered through push notifications via during every visit across their whole journey.
the vouchercloud app, sales went through the roof by a ⋆
staggering 414.5%.
⋆ Cendris Coins Employee Loyalty Programme – A Loyalty
Currency that enabled an organisational transformation
SIM Coupon Collect Campaign – Turkcell – Cendris / Touch Incentive Marketing
SIM Coupon Collect Campaign is With over 3,000 employees, Cendris
a Turkcell’s loyalty campaign carries out contact centre activities for
primarily for women launched medium and large clients. In an
in March 2019. It is offered through Turkcell’s segment application increasingly tough market, Cendris had
SIM that is special for women segment. Customers can earn data to distinguish itself from competitors
gifts by just logging into the application and collecting the and invent creative solutions to recruit
coupons that are uploaded every day. and engage employees to meet
⋆ customer’s needs. The Cendris Coins Employee Loyalty
Programme was one of the key drivers to enable this.
"Handy-at-Home" – BP Europe/ Motisha / Boost Loyalty ⋆
“HANDY-AT-HOME” was last year’s
multi-channel short-term loyalty Mobile Gift Centre – Turkcell
campaign launched by Boost Loyalty & Turkcell Gift Center is a new “loyalty
Motisha, enabling BP consumers to hub” within Turkcell’s existing
save up for 50% discount on Princess- self-service app “Digital Operator”. It
Household products – exclusive is a dynamic, engaging and attractive
Black-Label line. The integration of the existing Freebies long-term hub that infuses real-time analytics
Loyalty Card programme can be highlighted as key differentiator, with gamification to engage
resulting in an evidential increase of revisits, an extraordinary customers and offers a 360-degree view of all existing and new
conversion-rate and a significant amount of BP Freebies redeemed. rewards/incentives that they are (or could be) eligible for.
⋆ ⋆
Scratch-to-win game keeps members coming back – Primera Platinum Black – Turkcell
/ m–wise / TBWA\X Turkcell Platinum, the premium
With over 500 stores and an average of loyalty programme of Turkcell
825,000 customers per week, Primera is the welcomed a new and enhanced
largest convenience store chain in the tier to the family; Turkcell
Netherlands. In 2019, Primera transformed Platinum Black! which was launched in order to meet the needs
its traditional savings card system into a of existing customers attached to their phones, build a stronger
mobile loyalty programme with relationship with them and attract new high consumption
gamification at its core in the form of a daily consumers while using company resources smartly.
scratch-to-win game. ⋆

Know Your IBM – IBM / Motivforce
Know Your IBM rewards SME resellers in
IBM’s B2B global distribution channel
for their commitment to completing
IBM product educational activities and
selling specific solutions. Know Your
IBM’s combination of e-learning,
gamification and incentives in 2019 meant participants
generated over 10 times more sales/revenue for IBM than
non-participating firms.

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Best B2B Loyalty Programme

First Complete Smart Loyalty Programmes Integrator App Dulux Trade Paint Expert – AkzoNobel / m–wise
– Yudonpay AkzoNobel, experts in
Yudonpay is an application that digitizes all making paints and
loyalty cards and gather them in one virtual coatings, is passionate
wallet. It also provides real-time point balance about delivering the
information and expiry dates. This way, users high-performance products and services their customers expect.
know how to redeem their points, and how to Now the company can help decorators make a professional
take advantage of the best rewards and impression in every aspect of their business with Dulux Trade
discounts from their favourite loyalty clubs. Paint Expert, a highly effective B2B CRM initiative.
Currently more than 600 loyalty clubs, national ⋆
& international, in 7 countries, are integrated
into one app for our customers.ountries, are Cendris Coins Employee Loyalty Programme – A Loyalty
integrated into one app for our customers. Currency that Enabled an Organisational Transformation
⋆ – Cendris / Touch Incentive Marketing
With over 3,000 employees,
proPoints – the European automotive B2B Coalition Programme Cendris carries out contact centre
– ZF Group / Loyalty Prime activities for medium and large
With 'proPoints' ZF operates clients. In an increasingly tougher
one of the main B2B market, Cendris had to distinguish
automated automotive itself from competitors and invent
loyalty programmes in creative solutions to recruit and
Europe. The programme was engage employees to meet
launched in 2011 and has continuously evolved ever since. Within customer’s needs. The Cendris
the last years ZF moved its programme to a new technology Coins Employee Loyalty Programme was one of the key drivers to
platform, integrated two partners and added cash-back to make it enable this.
more interesting for its members. ⋆

Locking in Loyalty – Dentsply Sirona Rewards / Stream
Know Your IBM – IBM / Motivforce Dentsply Sirona is a leading
Know Your IBM rewards SME provider of professional dental
resellers in IBM’s B2B global products and technologies. In
distribution channel for their October 2019 ten years after
commitment to completing IBM the original loyalty programme
product educational activities started in the UK the new
and selling specific solutions. Loyalty Stream product
Know Your IBM’s combination launched in the USA and
of e-learning, gamification and Canada where it was battling with the challenge of having
incentives in 2019 meant participants generated over 10 times multiple ERP systems. The introduction of the loyalty platform
more sales/revenue for IBM than non-participating firm. enabled a single customer view. Reports and dashboard
⋆ capabilities have significantly grown since its launch. UK, Australia
& New Zealand will follow in 2020.
Leap – Lenovo / Motivforce ⋆
An agile B2B programme that
drives the loyalty of Lenovo’s
channel partners globally in
selling Lenovo server solutions.
A key 2019 objective was to
support Lenovo’s product
training objectives. LEAP 2019
participants generated 10.9
time more revenue for Lenovo than non-participants and
13.6timesmore if they engaged in LEAP’s learning activities.

Loyalty Magazine APRIL 2020


THE LOYALTY MAGAZINE AWARDS 2020 : THE SHORTLIST 39

Best Corporate Social Responsibility (CSR) Initiative Linked to Loyalty

Creating a healthy tomorrow for Australian kids – Coles / TunçiGenç's dream becomes real with Turkcell 5g – Turkcell
BrandLoyalty TunçGenç, who has muscular discomfort, is
To help families In Australia one of the biggest fans of Trabzonspor. His
develop healthier eating habits, biggest dream was to score a goal for
supermarket chain Coles ran a Trabzonspor one day. We wanted to realize
promotion offering Fresh Tunç's dreams to show how 5G technology
Stikeez–small, fruit-shaped will remove the limits. In order to introduce
characters –as giveaways. The such technology, we wanted to make a little
cute Fresh Stikeez quickly kid's dreams come true. Then we planned all our work and
became a hype throughout the country. They improved Aussie infrastructure accordingly.
kids' eating habits, increased Coles' turnover, and powerfully ⋆
linked the supermarket brand to fresh, family food.
⋆ My Gem Inside – Turkcell
My Gem Inside is an
Super Foodies, an eco-sustainable way to have fun with content internationally certified
– Esselunga / Boost Italia educational game
Super Foodies, in addition to developed under the
being recognised as supervision of child psychologists and teachers to provide
intrinsically appealing and accessible education for children with autism. Support is provided
playful but educational by starting education early such that they can have education not
content (healthy food), is just in special education schools but also in inclusive schools,
further achieving break which are more beneficial for their development. The app quickly
through positioning of Esselunga as a food retailer. This is thanks reached 30K users. The game is played by more than 400,000
to its first special campaign aimed at children through an participants a month.
unbranded and 100% eco-friendly range of products. ⋆

Smile Social Benefit Platform – Turkcell
Mary had a Little Lump (Breast Cancer Awareness Campaign) “Smile Social Benefit
– GEMS Education, Mediclinic & Think Aware Platform” is a new AI
A breast cancer awareness campaign technology-based platform
called ‘Mary had a Little Lump’ touched that include social
the hearts of the GEMS community. responsibility projects to
Through a children’s flipbook, in create loyalty by linking
conjunction with a local clinic, we were them with the smile
able to give parents a strong call to emotion. The first part of it is “Spread the Smile” which is for
action: For mothers to book a animals. The second phase called “Spread the Green” is for nature.
mammogram. For GEMS Education, this ⋆
meant that we had engaged our community towards a crucial,
and sensitive subject. Whiz Kids Project – Turkcell
⋆ We believe providing access to technology
is the first step towards digital inclusion.
‘Samen Greenchoice’ Loyalty Programme – Enabling and In an effort to support youth and children,
Rewarding Sustainable Behaviour – Greenchoice / enabling them to find suitable
Touch Incentive Marketing educational opportunities for themselves;
Greenchoice is the largest brand Turkcell rolled up its sleeves for the
and supplier in the Netherlands development of all the students as well as
when it comes to sustainable exceptionally talented ones, Turkey's
energy. While a part of the greatest assets, through a mobile education platform. New courses
customers are loyal, in 2018 a in Engineering, Aerospace, Internet of Things and Artificial
significant number of new Intelligence will be available in the mobile application in 2020.
customers churned in the first year. ⋆
Still within its first year of operation, Samen Greenchoice is well
underway to reducing this churn.

APRIL 2020 Loyalty Magazine


40 THE LOYALTY MAGAZINE AWARDS 2020 : THE SHORTLIST

Best Short Term Loyalty Initiative

“Handy-at- Home” – BP Europe / Motisha / Boost Loyalty Star Wars conquers Europe in a unique loyalty programme
“HANDY-AT-HOME” was last year’s – Kaufland / BrandLoyalty
multi-channel short-term loyalty Through its 'Mastering the Force'
campaign launched by Boost Loyalty & programme, Kaufland harnessed the
Motisha, enabling BP consumers to power of Star Wars to thrill families using
save up for 50% discount on Princess- its supermarkets in 8 European countries
Household products –exclusive over Christmas 2019. This multimedia
Black-Label line. The integration of the existing Freebies long-term Instant Loyalty Promotion achieved the highest level of Instant
Loyalty Card programme can be highlighted as key differentiator, Loyalty by creating a whole new generation of Jedi Masters excited
resulting in an evidential increase of revisits, an extraordinary by its space-age rewards and the retail brand offering them.
conversion-rate and a significant amount of BP Freebies redeemed. ⋆

Little Checkers: Building customer loyalty brick by brick
Der große emoji® Sammelspaß – ALDI SÜD and ALDI Nord – Checkers / UNGA
Germany / Boost Deutschland In Q1 2019, UNGA and Checkers ran a very
“Der große emoji® Sammelspaß” was successful ‘Little’ campaign in South Africa:
the first ever combined ALDI SÜD and Little Checkers. The campaign had customers
ALDI Nord short-term loyalty approach lining up in front of supermarkets to collect the
in Germany, running in over 4100 35 different building block packs, which built
stores. Novum: digital solution into a complete Checkers store. Little Checkers
connected classic family collectibles approach & digital brought families together to play, learn and build.
experience resulting in higher shopping frequency and spends ⋆
while featuring an eco-friendly packaging.
⋆ Little Chefs: Connecting with children by adding more flavour to
their life – PLUS / UNGA
emoji® Conquers Switzerland for the Third Time In September 2019, UNGA launched
– COOP Switzerland / Boost Group Kruiden Sjeffies with PLUS in the
After the incredible emoji® campaigns Netherlands. From the famous parsley to
in 2017 & 2018 Boost continued its the less known yellow mustard herb, loyal
success story with the 3rd loyalty families of shoppers collected 20 different seedling kits. Cheerful
campaign at the leading Swiss retailer characters introduced children to new ingredients in a playful
COOP in 2019. With “emoji® Summer” way, teaching them how to grow herbs and eat healthy.
Boost combined innovative products and the emotional license ⋆
emoji® to a “must-have” outdoor assortment for the whole
family. Orange & Stampix delight customers with personal photos!
⋆ – Orange Belgium / Stampix
Most consumers have thousands of photos
Super Foodies, an eco-sustainable way to have fun with content stuck on their smartphones, but when it comes
– Esselunga / Boost Italia to printing them it’s always a hassle. Which
Super Foodies, in addition to being photos to select? What format? Which supplier?
recognised as intrinsically appealing These are the main barriers for people to print
and playful but educational content their photos. Telco operator Orange Belgium
(healthy food), is further achieving wanted to solve this problem for its customers
break through positioning of in the Holiday season, and reward their loyalty
Esselunga as a food retailer. This is thanks to its first special with free photo prints. Fast, fun and 100% free.
campaign aimed at children through an unbranded and 100% ⋆
eco-friendly range of products.
⋆ Picture Your Next Destination – Again! More sales and a higher
ROI – TravelCo Nordic
Creating a healthy tomorrow for Australian kids – Coles / We took our 2018 award winning “picture
BrandLoyalty your next destination” programme to the next
To help families In Australia develop level by turning it into a series of integrated
healthier eating habits, supermarket initiatives with more partners and more
chain Coles ran a promotion offering dimensions but maintaining the core
Fresh Stikeez–small, fruit-shaped foundation of innovative use of CRM and
characters –as giveaways. The cute gamification. The overall objectives were to: improve company
Fresh Stikeez quickly became a hype throughout the country. They image, increase the propensity for future sales and loyalty and
improved Aussie kids' eating habits, increased Coles' turnover, and convert loyalty into sales in a profitable way (ROI).
powerfully linked the supermarket brand to fresh, family food. ⋆

Loyalty Magazine APRIL 2020


NEW CRITERIA FOR 2020 THE LOYALTY MAGAZINE AWARDS 2020 : THE SHORTLIST 41

Best Long Term Loyalty Programme

proPoints – The European B2B Coalition Programme Senyapdiye – Turkcell


– ZF Group / Loyalty Prime To celebrate Turkcell’s 25th year
The B2B loyalty programme anniversary, a 6-week game-
Automotive Diamonds based solution was created with
was launched by TRW each week of the campaign
in 9 European countries in owned by a different Turkcell
2011 and continuously digital service. Specific tasks on
evolved ever since. Within the last years TRW, today ZF, moved its the digital app were set each
programme to a new technology platform, integrated 2 partners week. Customers could get up
and added cash-back to make the programme more interesting to 25GB during the six weeks by joining the game plus gifts when
for its members. specific tasks were complete. Great customer demand led to an
⋆ extension for 3 more weeks, with 3 more digital applications and
3GB/week gift.
La Place Extra’s just gets more rewarding with time ⋆
– La Place / m–wise / TBWA\X
Launched in 2014, La Place Extra's is the loyalty Platinum Black – Turkcell
programme of Dutch restaurant chain La Place. Turkcell Platinum, the
Customers are rewarded with one of 40+ free premium loyalty
extras at every visit, ranging from discounts to programme of Turkcell
free products. The extras are personalised too– welcomed a new and
the more a member visits, the more relevant the enhanced tier to the family;
rewards become. Turkcell Platinum Black! which was launched in order to meet the
needs of existing customers attached to their phones, build
stronger relationship with them and attract new high
consumption consumers while using company resources smartly.
⋆ ⋆
Know Your IBM – IBM / Motivforce Locking in Loyalty – Dentsply Sirona Rewards / Stream
Know Your IBM rewards SME Dentsply Sirona is a leading
resellers in IBM’s B2B global provider of professional dental
distribution channel for their products and technologies.
commitment to completing IBM In October 2019 ten years
product educational activities after the original loyalty
and selling specific solutions. programme started in the
Know Your IBM’s combination UK the new Loyalty Stream
of e-learning, gamification and product launched in the
incentives in 2019 meant participants generated over 10 times USA and Canada where it was battling with the challenge of
more sales/revenue for IBM than non-participating firm. having multiple ERP systems. The introduction of the loyalty
⋆ platform enabled a single customer view. Reports and dashboard
capabilities have significantly grown since its launch. UK, Australia
STC Qitaf Loyalty Programme, the largest loyalty programme in & New Zealand will follow in 2020.
KSA ! – Saudi Telecom Company (STC) ⋆
STC is the leading telecommunication
services provider in the region. STC’s
loyalty programme, Qitaf, is one of the
largest loyalty programmes in the region,
serving close to 15 Million members,
with 60+ Partners representing 170+
brands, with 4,000+ branches across
Saudi Arabia, connected to reward &
satisfy our members’ needs. It achieves more than 50%
engagement with the programme benefits which has a positive
impact on churn rates, improved programme CSI scores and has
increased unique external earner customers generating non-telco
revenue by 300% YoY.

APRIL 2020 Loyalty Magazine


42 THE LOYALTY MAGAZINE AWARDS 2020 : THE SHORTLIST

Regional Champions of the Year

T he Regional Loyalty Champions of the


Year awards are presented to those
companies and programmes that stand
The regional definitions for 2020 are:

• Western Europe – defined as all countries within the European Union plus
out in comparison to others within their Switzerland, Norway, Iceland, Liechtenstein etc
geographical region. All submissions to • Central and Eastern Europe – including Russia and Turkey
The Loyalty Magazine Awards are entered, • The Middle East and Africa – including Iran, Iraq, Israel, Jordan, Saudi Arabia, Syria,
and the regional champions are chosen Lebanon and the Gulf States
on merits within their area of operation. • Asia – including Australia, New Zealand, the Indian sub-continent and all areas East
• The Americas – including Alaska, Canada and all countries in North, Central and
Sponsor
South America, and the surrounding islands and territories

Personality or Organisation of the Year

T he Loyalty Magazine Awards are now in their ninth year and in 2020, the winner of the
Personality or Organisation of the Year will join an outstanding Hall of Fame. Winners
from perevious years include Sir Keith Mills, founder of Air Miles and Nectar, Sir Terry Leahy,
who was instrumental in launching Tesco Clubcard; Helene Brand, marketing and CSI
manager for Woolworths, owner of MySchool MyVillage My Planet, of South Africa;
Turkcell, a company with loyalty in its DNA; Colin Evans, founder of Collinson; Bryan
Pearson, philosopher, loyalty guru and author of The Loyalty Leap and last year Gavin
Hawthorn, for his work on the industry standard Pets at Home loyalty programme.

There is still time for you to make a nomination. Send your proposal to
annich@theloyaltymagazineawards.com

Loyalty 30 under 40

T he 30 Under 40 list of Loyalty Royalty is getting harder to choose every year as an


increasing number of people each year want to be on it!
We have now closed the list and will soon begin the difficult task of choosing the final
30 from what is always an outstanding bunch of high achievers.
All of those who make the list are invited to join our 30 Under 40 LinkedIn Supergroup of
Loyalty Royalty plus they will be awarded a special certificate.
How good must it feel to make it onto the 30 under 40 – Most Influential People in Loyalty
list? Only a few know. What is staggering is that some have made the list more than once!

The full list will be published in the Winners Edition of Loyalty Magazine and at
www.theloyaltymagazineawards.com

40 THE LOYALTY MAGAZINE AWARDS 2019 : 30 UNDER 40 THE LOYALTY MAGAZINE AWARDS 2019 : 30 UNDER 40 41 42 THE LOYALTY MAGAZINE AWARDS 2019 : 30 UNDER 40 THE LOYALTY MAGAZINE AWARDS 2019 : 30 UNDER 40 43

30 UNDER 40
Loyalty Royalty 2019 announced!
Beatriz Ramos
Managing director, BrandLoyalty Brazil
Ewa Gugalka
Head of loyalty, Inspire Europe
Wouter van Horssen
Manager, customer loyalty for ING,
Netherlands
Maths Mathisen
CEO & co-founder, HOLD, Norway
Matt Norbury *2018 Winner*
CEO and founder of IAT,
home of epoints and Each Person
Jo Ashdown
Head of partnerships, Mando-Connect

Beatriz is recognised as a trailblazer in Brazil’s Ewa brings a strong client focus, innovative Maths is one of the three co-founders of a Jo has pioneered gamification and innovation

C hoosing the 30 Under 40 Rising Stars of Loyalty is one of the toughest jobs of the year for the team
tasked with this unenviable job. But we finally did it, and are proud to announce the following list, of
this year’s Loyalty Royalty! Stand by to be amazed by the calibre of their achievements.
Sponsored by
loyalty industry, having created highly successful signature short-
term loyalty programmes for major food retailers in the country
and meeting the aspirations of Brazilian consumers to literally
thinking and more than seven years of experience to her role
as head of loyalty at Inspire. Ewa created the first global Halal
Dining programme that rewards customer loyalty in New York,
When Wouter joined the ING Rentepunten programme in 2015
it was in severe decline and real change was needed. He devised
a loyalty programme evolution from a savings-only loyalty
smartphone app called HOLD. Originally from Norway, the HOLD
app was conceived for university students when Maths and his
co-founders realised the power of rewards to change behaviour,
epoints is the loyalty programme that allows members to collect
the epoints currency via a range of simple everyday activities as
well as buying across over 1,700 brands. In the last two years
in loyalty rewards. Recent examples are the partner rewards
developed for Virgin Red with Papa John’s and Casual Dining
Group, a Loyalty Magazine Award winner for Gamification in
For the second year, we have been overwhelmed by how much incredible talent is coming through in transform “loyalty” in Brazilian retail. Currently, BrandLoyalty London, Frankfurt, Munich and Paris as well as a pioneering sub- scheme into an ING broad programme. Points are now awarded and built an app to do just that. It recently launched in London to Matt launched Each Person to expand epoints into the corporate 2018. She is also a massive advocate of the smart use of data to
our industry, and we are only sorry we had to stop at a list of just 30 Rising Stars. These are the competent Brazil has had a CAGR of 75% growth since its start in the market Saharan loyalty dining programme which operates with more for usage of the savings account, debit card, credit card, mobile massive acclaim and now serves the needs of students, families sector for recognition and reward of employees. get loyalty rewards right.
professionals who will be reinventing, transforming and recreating the global loyalty business. It will be under Beatriz’ leadership, representing US$50m in revenue and than 100 partners across 7 African countries. banking app and mobile payments, with much greater customer and business people as a productivity tool.
very exciting to watch. We are really proud to once again celebrate such an outstanding list. with forecast growth of 50% for next year. satisfaction.
In no particular order, The Loyalty Magazine Awards 30 under 40 for 2019 are:

Julian Griessl Bridgette Walker Sean Carrigan Charlie Casey *2018 Winner* Jessica Rose Jay Shah Rick Haak Adam Ward *2018 Winner*
Director CRM international, Douglas Partnerships & insight manager, Head of Times+, The Times and Co-founder & CEO, LoyaltyLion Head of CRM, VIP team, Pets at Home Assistant VP strategic partnerships, Managing director, CEO and co-founder, Airtime Rewards
AccorHotels, Northern Europe The Sunday Times Mashreq Neo Touch Incentive Marketing, Netherlands
Julian has made a career out of customer Charlie took on the enormous challenge Jess has been responsible for shaping the tone Adam has a track record in mobile technology
centricity. With experience on technology projects in retail, Bridgette is a huge advocate of loyalty for improved guest Sean has been instrumental in creating a loyalty programme of creating innovative loyalty & engagement software for and style of the entire VIP Pets At Home programme which now Jay entered the loyalty industry with Loyalty Rewardz Rick earned his loyalty stripes running the ING Runtepunten and internet business focusing on highly scalable growth areas.
hospitality and mobility sectors, such as Lufthansa's Miles & experience, particularly focused on developing outstanding which is a key reason for the retention of 45,000 subscribers, ecommerce. When he started, loyalty programmes were inclined has over 7 million members, 16 million pets and penetrates over Management – which manages 1 billion Indian bank loyalty loyalty programme until 2015 when he moved to Touch Using the existing payment infrastructure from Mastercard
More programme and the Deutsche Bahn's BahnCard he is partnerships to create incredible rewards and experiences and providing over £9m in revenue per annum in the challenging to neglect customers' social activity. Charlie noticed and included 50% of UK pet-owning households. Pets at Home has won four profiles. Coalition programme MaxGetMore followed, then Incentive Marketing. Since then he has actively worked with key and Visa, he has created a digital reward currency to offer major
now director of International CRM for European beauty retailer the smart use of data and insight to get loyalty right. In 2018 she print media business. He brings together retention and it within his loyalty platform so stores could reward Facebook Loyalty Magazine Awards. Jessica is currently taking the scheme Indian/Gulf conglomerate Landmark Group. Its Shukran loyalty clients to enhance the performance of their loyalty schemes, retailers and others the capability to reward consumers back to
Douglas with a turnover of €3.3bn, playing a fundamental role in achieved the first partnership between AccorHotels and Eurostar; brand differentiation, with offers from the everyday to the 'likes,' as well as referrals and purchases. A recent innovation is to the next level by developing sub-clubs, and works tirelessly to programme is the biggest in the Gulf (22 million members). creating national promotions for leading organisations. A major their mobile accounts.
Douglas' strategic realignment. offering Club Eurostar members free hotel stays and exclusive extraordinary. This has directly impacted the bottom line because 'instant points' – the ability to earn points before checkout. This promote responsible pet ownership. Careem followed (Uber for the Middle East) for which he created achievement was winning the prestigious €10m+ turnover
benefits. those he is engaging with have a 20% lower churn rate. has increased the average order value of stores by 36%. Careem Rewards in 15 countries before moving to Mashreq Neo. Albert Heijn account in 2018.

Omar Rafii Christine Mayston Aoife Sheridan Murat Malci Michelle Williams Dhruv Dewan Gemma Jarrett Grażyna Zych
Co-founder and CEO, Krowd Group partner director, Nectar Loyalty Loyalty partner specialist, Three Ireland Youth segment brand manager, Turkcell Senior product owner, loyalty & reward Co-founder, Hashtag Loyalty, India Assistant brand marketing manager, Senior programme manager for
(VeryMe Rewards), Vodafone Magnuson Worldwide Heathrow Airport, Comarch
Omar spearheaded the development of the Nectar Loyalty (previously owned by Aimia 3Plus is the loyalty programme for Three Murat has focused his career on engaging with Dhruv is a co-founder of Hashtag Loyalty and
Krowd offer bidding platform. An industry first, this platform Inc) is the in-house loyalty agency for UK retailer Sainsbury’s. Mobile customers in the Republic of Ireland. In under three young people. With Okey, a leading condom maker and then Michelle led the team to develop and deliver Vodafone’s new leads growth. He has worked at EY India previously where he Magnuson operates across a network of independent hotel Grażyna started her career working for LOT Polish Airlines on a
brings 'Google Ad Sense' to the offline world by providing Christine has held positions in new propositions, as head of years, Aoife doubled the members and completely reversed the with Turkcell, working on the Crack an Egg and the GNÇ app. VeryMe loyalty programme, for pay monthly, pay as you go and managed multiple Fortune 500 clients leading their technology owners who all own and independently operate their properties re-branding of their loyalty programme for SMEs. Then working
personalised card linked offers, allowing retailers to increase rewards and now leads the Group and B2B partnerships team business model for partner offers, converting it to a paid media This was downloaded 2.5 million times in the seven months small business customers, creating a huge cross-functional team transformation. Dhruv has achieved 300% merchant growth YoY so engaging with them and building that relationship is for telco Orange Polska, she was given the challenging project
customer acquisition and retention and card issuers to increase delivering £170m in revenue per annum. Her current focus platform that is loved by brands and consumers alike. Given the since launch. Murat has led two transformations of GNÇ and which is a major shift for the Vodafone business. In her past at Hashtag Loyalty. Today over 800 businesses in more than 11 paramount. Gemma has been instrumental in increasing of engaging with over 65s. She is also particularly proud of
usage. Using card transaction data as well as a knowledge graph is supporting three key projects: a full programme rebrand, a success of Aoife's work, Three Ireland is now further investing in organised more than ten campaigns. roles Michelle specialised in creating propositions for specific cities are utilising its marketing platform to grow their business engagement and retention to the extent that contract renewals launching the first redemption partnership for Qatar Airways
of hundreds of millions of external data points, Krowd allocates transformative B2B strategy and the launch of a new partner. usability enhancements, loyalty platform improvements as well segments including a partnership with Disney for The Lion King – across multiple cities in India. are up by 10% YoY. Privilege Club with AccorHotels, and for Comarch Poland she is
hyper targeted retail offers to consumers. as direct customer recognition and rewards. UK and Ireland Tour. helping Heathrow Airport to enhance Heathrow Rewards.

James Curry Can Taşçıoğlu *2018 Winner* Sherry George Kellen Fitzgerald Chris Kula Cat Lodwidge Dev Subrata Michael Hegelund Ingemann Thomsen
Manager product design, Systems coordinator, Interlink Head of customer loyalty, Director of marketing, digital & client Director, loyalty marketing, Senior marketing manager, CEO & co-founder, Fidel *2018 Winner*
Emirates Skywards Titan Company, India experience, Tarte Cosmetics TLC Marketing Worldwide British Gas rewards programme Head of marketing, TravelCo Nordic
Can introduced a social responsibility element Dev has evolved Fidel from a tiny startup
James’ work focuses on the monetisation of loyalty currency to the Interlink loyalty programme in Turkey, whereby customers Sherry has spent the last 14 years in learning, planning and Kelley has driven substantial change, success, and business Chris is the loyalty director for TLC Marketing in the US based in Cat has 14 years’ experience in marketing at British Gas, across in London in 2013 by adapting to market need whilst keeping Michael continues to explore and exploit digital opportunities
for airline Emirates and the recognition of the true value of can donate their points to good causes if they wish. 49 brands implementing loyalty programmes within the retail automobile growth for tarte.com. In late 2017, she led the relaunch of Chicago. He has been instrumental in bringing the PureLoyalty numerous roles in loyalty, content, strategy and integrated the company vibrant and active in a very competitive startup to create great experiences and loyal customers. His clients have
rewards. He recently led the team to deliver growth in direct in the Interlink catalogue now take part. Can hopes to take his and FMCG sectors. He is currently head of the unified customer tarte ♥ rewards, and in 2018, added over 1 million loyalty brand to America, especially with American Family Insurance communications. Specifically, loyalty marketing manager environment, where 90% of companies die out within 2 years. won 7 awards in the UK in the last 5 years including Lidl in 2018
ancillary revenues of >140% through an enriched and enhanced social responsibility project worldwide via Interlink international loyalty programme for the Indian retail conglomerate Titan members in one year with a higher lifetime value of US$153 vs DreamKeep Rewards. Chris is a true believer in loyalty done the (Nectar) 2010-2013 and senior marketing manager for the new The contribution of both Dev and Fidel to innovating the loyalty for The Loyalty Magazine Awards Best Coupon/Voucher Based
‘Buy Miles’ product suite, launched ‘targeted and segmented’ business partners, and doesn’t mind if it is copied by competitors Company across categories including jewellery, watch, eyewear non-loyalty member LTV of US$115. The first-ever loyalty month right way, which means building an engagement ecosystem with British Gas rewards programme since January 2017. She is a huge space by making it easy for third parties to access transactional Loyalty Programme of the Year. He currently has marketing
paid tier offerings, leveraging predictive modelling to maximise as it is for good causes. & Indian ethnic wear for 1,700+ retail showrooms in India. brought 300k+ new loyalty members. 50% of August 2018 frequent and positive touchpoints that reinforce brand values. fan of the power of loyalty programmes to build meaningful and data to boost their loyalty platforms has won Fidel clients in UK, responsibility for 6 brands and is leading TravelCo Nordic digital
conversion and launched Skywards ‘My Family’. revenue was driven by loyalty members. valuable customer relationships for brands. Ireland, US, Nordics, Japan, Australia, Canada and South Africa. transformation.

Loyalty Magazine JUNE 2019 JUNE 2019 Loyalty Magazine Loyalty Magazine JUNE 2019 JUNE 2019 Loyalty Magazine

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Loyalty Magazine APRIL 2020


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