Professional Documents
Culture Documents
2 32 AWARDS EDITION
IN THIS ISSUE
BRAND FEATURES: BANK OF AMERICA, LEGO, SCENE+, FORD, AND IKEA CANADA
Exclusive Brand Insight,
for Members Only
As the association for customer loyalty, Loyalty360
speaks with top brands to address the challenges,
opportunities, and trends of a constantly evolving market.
Our goal is to pass this insight along to members and
to bring companies together to build authentic loyalty
predicated on reciprocal benefit.
BRAND FOCUS
28 38 44
BANK OF AMERICA LEGO SCENE+
Demonstrating Value to Connecting the Bricks Uses Personalization and
Rewards Program Members of Successful Loyalty Partnerships to Engage
13+ Million Members
52 56
FORD IKEA CANADA
Adapting to Change Making Life Better with
and Treating Loyalty Empowered Frontline
Customers Like Family Employees
TABLE OF CONTENTS
8 WINNER SPOTLIGHT
Loyalty360 Award Winners by Category
68 TECH TALKS: JEBBIT’S INSIGHTS INTO LEVERAGING ZERO-PARTY DATA without notice.
Jebbit
LOYALTY360
The Association Focused on Customer Loyalty Is Here for You
Thank you to all who attended the 2023 Loyalty Expo! We enjoyed Mark Johnson
a jam-packed event filled with insightful sessions, passionate
speakers, networking opportunities, and more. CEO & CMO
markjohnson@Loyalty360.org
In this edition of Loyalty Management magazine, we are thrilled
to share some highlights from the 2023 Loyalty Expo, including
spotlights on the winners of the Loyalty360 Awards across twelve
categories, the overall 360-Degree Awards for both brands and
suppliers, as well as the first-ever Champions of Customer Loyalty.
customer and employee feedback, along with studying customer
This issue of Loyalty Management focuses on the importance of behavior, the brand continues to make home furnishing
building authentic relationships to attain and retain loyal customers. accessible to a broader customer base.
We feature a few of the top brands at this year’s Loyalty360 Awards,
including Bank of America, Scene+, LEGO, Ford, and IKEA. In this edition, you will also hear from several Loyalty360
Supplier Members and their perspectives on brand-to-brand
Bank of America (page 28), with roots in banking for over two partnerships, as well as B2B customer loyalty. Brand-to-brand
centuries, stands as one of the world’s leading financial institutions. partnerships remain a top priority for marketers, and our
Apart from its broad range of financial products and services, the supplier members will provide advice on establishing successful
Bank of America Preferred Rewards loyalty program offers members partnerships, measuring effectiveness, and addressing common
significant benefits while demonstrating the value of being a loyalty challenges within the industry today.
program member through engagement, personalization, and well-
trained frontline employees. B2B customer loyalty differs significantly from B2C customer
loyalty in terms of incentives, program structure, and rewards.
Founded over 90 years ago, LEGO (page 38) now operates in 34 Loyalty360 Supplier Members will share insights on how B2B
countries and 26 languages, boasting 95% brand awareness. To brands can build and maintain customer loyalty in the business-
share the company values of fun, creativity, and inclusivity globally, to-business world.
the brand established the LEGO VIP rewards program. In 2019,
LEGO transformed the program from primarily transactional to Furthermore, this double edition of Loyalty Management
engagement and rewards-based, resulting in boosted engagement includes best practices shared by Loyalty360 Supplier Members
with the brand and loyalty program. Jebbit, Talon.One, ICF Next, and Engage People. Their thought
leadership focuses on the effectiveness of value-based
Scene (page 44), initially launched in 2007 through a partnership marketing, trends in emotional loyalty, and elevating credit card
between Cineplex and Scotiabank, aimed at rewarding moviegoers loyalty programs.
while gaining a better understanding of customer data. Today, the
program, known as Scene+, serves over 13 million members across If you have feedback on this month’s magazine or the May
Canada, allowing them to customize how, when, and where they use Loyalty Expo, we would love to hear from you and learn about
their rewards. your interests for future editions! We hope you enjoy this edition
of Loyalty Management magazine. If we can be of any assistance
Ford (page 52), celebrating 120 years in business, honors its at Loyalty360, please feel free to reach out at any time.
best and most loyal customers through the FordPass program.
Recently revamped and enhanced, the program prioritizes member
experience, flexibility, and personalization.
B2B Customer Loyalty: Customer Loyalty Innovation and Transformation 360 Degree (Supplier)
Platinum: Signia Platinum: Tim Hortons Platinum: Brierley
Gold: Bank of America Gold: Vivid Seats Gold: Kobie
Silver: Aristocrat Silver: NFL Silver: Brandmovers
Bronze: Verizon Bronze: MGM Resorts International Bronze: Cheetah Digital by Marigold
Honorable Mention: Sonesta International Hotels Honorable Mention: Bounteous
Brand-to-Brand Partnerships
Platinum: Scene+ Customer Loyalty Strategy 360 Degree (Brand)
Gold: TELUS Platinum: Wawa Platinum: Bank of America
Silver: Bal Harbour Shops ACCESS Gold: Donatos Gold: LEGO
Bronze: Parkland Silver: Scene+ Silver: Scene+
Honorable Mention: Sleep Number Bronze: Bank of America Bronze (TIE): TELUS and Giant Food
Honorable Mention: DraftKings
Corporate Social Responsibility Champion of Customer Loyalty
Platinum: TELUS Employee Engagement & Impact Tom Madden, Managing Partner, Loyalty
Gold: Giant Food Platinum: Bank of America and CRM, ICF Next
Silver: Tim Hortons Gold: Empire Company Ltd. Don Smith, Global Consulting Officer &
Silver: IKEA Canada CMO (US/Europe), Brierley | Capillary
Bronze: Kampgrounds of America
Honorable Mention: Bal Harbour Shops ACCESS Bronze: Donatos
Honorable Mention: Certified Angus Beef
Creative Campaign and Communications
Platinum: Certified Angus Beef Loyalty Program Design
Gold: Blaze Pizza Platinum: Giant Food
Silver: Amtrak Gold: Progressive
Bronze: Accor Silver: MGM Resorts International
Honorable Mention: Ally Financial Bronze: Parkland
Honorable Mention: Sleep Number
Customer Analytics, Insights, and Metrics
Platinum: LEGO Offer, Incentive, and Reward Design
Gold: Thriftbooks Platinum: LEGO
Silver: Margaritaville Gold: Ford
Bronze: AMC Theatres Silver: Kampgrounds of America
Honorable Mention: Noodles and Company Bronze: Signia
PLATINUM WINNER
SIGNIA
FINALISTS
Platinum: Signia
Silver: Aristocrat
Bronze: Verizon
While not as common or top of mind as many traditional B2C loyalty Aristocrat Technologies, Inc. is the world’s leader in gaming content
initiatives, B2B programs are important for marketers to consider. and technology. Producing the gaming industry’s first B2B loyalty
Customers of these B2B programs may not be motivated by the same program, Reel Returns, Aristocrat has witnessed remarkable program
incentives as a B2C program member. Additionally, there likely are growth for engaged and enrolled users in the program since launching
several other hurdles in a B2B purchase as compared to B2C, which two years ago. The company leverages customer data to deliver a
requires these brands to think outside of the box when building a personalized approach to its diverse customer base.
successful program. The finalists in this category are taking a unique
approach to building positive customer experiences and customer As a global communication technology company, Verizon brings both
loyalty. wireless and wireline options to consumers, small businesses, large
enterprises, and the public sector. The Verizon Business Mastercard®
Signia, a part of WS Audiology, has grown to be one of the leading is the foundation of the company’s small business customer loyalty
hearing aid brands worldwide. Through its Aspire B2B program, program and is specifically designed to help those members access
mutually-beneficial relationships are formed to help audiologists and capital, build commercial credit, and receive discounts on wireless
other hearing loss professionals serve their patients while building service.
successful practices. The program is provided through the brand and
is part of its business model for program members who are in the top
20% in the brand’s business revenue.
PLATINUM WINNER
SCENE+
FINALISTS
Platinum: Scene+
Gold: TELUS
Bronze: Parkland
Today’s successful customer loyalty programs are not launched shopping center. With more than 100 partnerships, members have
in a vacuum, and a growing number of brands are embracing the an endless array of partner experiences to cater to each member’s
idea of partnering with one another to fully engage their respective tastes and preferences. In addition to one-of-a-kind experiences,
consumers. This type of partnership was not always common, but special offers, and benefits, partners engage program members
as brands move into a new realm of co-opetition, they realize that to experience cultural, community, and charity events, such as
outside-of-the-box thinking and unique partnerships can prove performances, museum exhibitions, fundraising events, social
mutually beneficial and drive measurable program results for both programs, and more. .
partners. This award goes to the company that best leveraged these
outside brand partnerships to successfully drive loyalty.
Parkland’s Journie™ Rewards program is a platform for partnership
At its conception, Scene+ captured the best of both worlds, with flexibility. Partners provide customer value through everyday
partners in travel and shopping, in addition to entertainment and savings and creating a unified approach across brand touchpoints.
an expanded suite of dining partners. In 2022, Scene+ announced The uniqueness of the program also allows for partners to be more
a partnership with Empire Companies Limited, Canada’s second- targeted in their engagement, either by providing rewards through
largest national grocer. With Scotiabank, Cineplex, and Empire as co- the micro-redemption cycle, or promotionally through limited-time
owners, Scene+ became one of Canada’s largest loyalty programs. campaigns. Through Journie, Parkland has created an innovative
The Scene+ loyalty program now serves over 13 million members, loyalty ecosystem, flexible and scalable enough to embrace the
allowing them to customize how, when, and where they use their uniqueness of potential partnerships of all shapes and sizes.
rewards.
Sleep Number formalized a partnership with the NFL. The primary
To drive point redemptions and re-engage customers who were goals of this relationship were to convey how sleep impacts
holding onto their points, TELUS launched a series of limited-time performance and to increase awareness of Sleep Numbers’ sleep
offers through the TELUS Rewards program with leading brands technology. Along with access to athletes’ sleep wellness educational
like Starbucks and Maui Jim. These discounted offers generated materials, Sleep Number’s customers have had many opportunities
over $3.36M in savings for customers, driving incremental to attend exclusive NFL experiences, including the NFL Draft, draft
engagement and redemption. Through the collaboration and parties, and in-season games. Each experience included VIP perks
partnership with select brands such as Uber Eats to generate special, like priority parking, seating, and refreshments. The brand has also
exclusive offers for Rewards customers, volume and redemption partnered with the American Cancer Society to study the impact of
sales of partnered brands increased significantly. quality sleep on cancer prevention and recovery to improve sleep
outcomes for patients and survivors.
Bal Harbour Shops ACCESS’ loyalty program fosters a symbiotic
relationship between shoppers, merchants, partners, and the
PLATINUM WINNER
T E LU S
FINALISTS
Platinum: TELUS
Today’s leading brands are focused on the world around us in addition Tim Hortons believes small donations can make a big impact. The
to their core offering. Consumers are placing more value on how Round Up feature in the rewards app allows for charitable donations
brands enhance humanity across an array of possibilities, including that help fund Tim Hortons Foundation Camps which help youth
sustainability, community impacts, charitable giving, and diversity, from underserved communities achieve their full potential by learning
equity, and inclusion. This award recognizes brands that are making valuable skills for the future. Guests can automatically round up their
tangible and authentic impacts based on their commitment to their order whenever scanning for Tims Rewards or ordering ahead through
mission statement, core values, and customers. the app. These small “round ups” have led to $1M+ in donations.
Sustainability initiatives include empowering coffee bean farmers and
TELUS is a world-leading communications and technology company. a shift to using fiber cup lids.
Using its technology for good, TELUS drives social change, creates
a safer food supply, revolutionizes access to healthcare, connects Kampgrounds of America is the largest privately-owned, open-to-
Canadians in need, and gives back to communities. TELUS’s social the-public campgrounds, with 500+ locations across North America.
impact has shifted consumer perspective on traditional telco companies, Care Camps provide opportunities for children with cancer to attend
driving feelings that build loyalty, including feeling valued and part of a specialized non-KOA oncology camps throughout the US and Canada
larger whole. free of charge. The program donates $1 from every KOA Rewards
sale to Care Camps. In 2022, KOA Rewards sales contributed over
In an economic climate where some shoppers sacrifice healthier food $410K to Care Camps, bringing the aggregate contribution figure to
options to stretch dollars, Giant Food set a goal to reward customers $17,000,000+.
for making healthier choices. Leveraging the company’s team of expert
nutritionists produced a Guiding Stars product rating system — a Philanthropy and social responsibility factor prominently into
healthy rewards strategy within the loyalty program to call attention to Bal Harbour Shops and ACCESS’ vision, with the brand firmly
the nutritional quality of the products purchased. Customers receive championing the belief that profitable businesses have an obligation
personalized messages showcasing how many points they earned the to partner with charities and nonprofit organizations as a matter
previous month, reminding them of their savings through the offer, and of communitarian principle. Bal Harbour Shops and ACCESS give
encouraging them to continue making healthy shopping decisions. back and partner with numerous organizations and causes through
charitable and fundraising events supporting social programs.
PLATINUM WINNER
C E RT I F I E D A N G U S B E E F
FINALISTS
Silver: Amtrak
Bronze: Accor
To stand out from the crowd, customer loyalty demands creativity. impact of highly limited travel during the pandemic. The campaign
Considering the number of programs bombarding consumers today, only sought to show rail travel as a doorway to freedom while connecting
the most distinctive campaigns succeed in breaking through the static to people and cities. The overarching campaign also launched the
stand on their own as unique entries in the hearts, minds, and inboxes of Amtrak Guest Rewards Preferred Mastercard resulting in a win-win
consumers. This category rewards brands for thinking outside the box to co-brand partnership.
engage these consumers in new and innovative ways through short-term
campaigns. Accor, a multi-national hospitality company owning and managing
hotels in 110 countries, needed to educate members on navigating
Certified Angus Beef launched its Beef Takes You There campaign in redemption within its Accor Live Limitless program. The brand
2022. The campaign included six diverse chefs who elevate meals and observed that members were building point balances that would
partnering with two influencers to showcase how the brand is part of provide them significant value when redeemed at a hotel. Because
a lifestyle. Actor, comedian, and host Joel McHale was invited to join a the program’s operating currency is Euros, understanding how to
fifth-generation Colorado Angus rancher, for a once-in-a-lifetime, fine navigate currency exchange is key for member engagement. The
dining experience in the Rocky Mountains. A top Steakholder Rewards brand embraced an opportunity to educate members about the
member was also invited to join the crew before everyone climbed the value, flexibility, and use of their points through a series of emails
mountain and dined “cliffside.” This special event showcased the kind of educating members on the value of their points and how they could
elevated experiences members can be eligible for with the brand. redeem them.
Leveraging the NCAA March Madness season, Blaze Pizza’s Build Your In 2020, Ally launched the savings toolkit with a focus on helping
Own (BYO) Madness campaign engaged brand fans by creating an customers further meet their savings goals. At the end of 2022, a
ingredient “face-off” where member votes were made through ordering. year-end email was sent to engage customers by recognizing their
Each week highlighted various aspects of the BYO Pizza-making process, savings efforts and to drive incremental feature adoption. This
showcasing artisanal ingredients. The campaign culminated with the top-performing marketing campaign, “Savings Year End Review,”
“ultimate championship pizza” — chosen by members and announced at leveraged visualization to tell the story — from personalized
the finals. The multi-touch, multi-week campaign drove excitement from customer stats to the use of first-party data. The campaign was
members who were rooting for their favs to win. successful at driving inspiration within savings customer audiences,
generating record high levels of performance.
Amtrak’s 6-week “Say Hello” creative campaign centered around
making travel accessible and enjoyable again after many had felt the
CUSTOMER ANALYTICS,
INSIGHTS, AND METRICS
PLATINUM WINNER
LEGO
FINALISTS
Platinum: LEGO
Gold: Thriftbooks
Silver: Margaritaville
The Customer Analytics, Insights, and Metrics category focuses point and customer interaction and learns guests’ behavior patterns
on the brand’s accessibility, measurement, and management of throughout their journey. This data is packaged in the backend to
customer data — internally and externally — and how marketers power the “Perk Selection” process, where the platform identifies
manage that data to create long-term customer loyalty. Strong entries the revenue of each transaction and presents the guest with unique
in this category demonstrated a brand putting the customer first by perk choices. The program has no levels or tiers, but high revenue
leveraging metrics, including customer data (first-party/zero-party transactions and highly engaged guests are rewarded and recognized.
data), voice of the customer, customer feedback, CRM, and market
research, with the proven end result of increased customer loyalty. An overarching goal to collect Triple Play Data — transactional,
behavioral, and emotional data — informed AMC Theatres’ strategy
LEGO introduced an Engagement Score into its membership program in a COVID/post-COVID environment. The brand collected customer
with a strong focus on non-commercial factors, observing members’ data through Emotional Loyalty Scoring® of their current member
engagement levels every month to create dynamic offerings for base. This helped to identify the emotional motivator that most
members to maximize growth from the brand’s most engaged fans applied to loyalty members out of status, habit, or reciprocity. This
to its least. By looking at every benefit and reward through the lens of brand’s Triple Play Data approach to gathering insights paved the
engagement, the program created a diversified portfolio of benefits way for creative and innovative tactics leading to the theatre’s strong
catering to all members’ needs and varying levels of engagement. recovery following the pandemic. ELS® results indicated reciprocity
as consumers’ primary emotional motivator, revealing that the
Thriftbooks leverages program data to derive actionable relationship is two-way.
insights to improve the customer experience, hyper-personalize
communications, and build authentic brand connections with To more deeply understand its guests, Noodles and Company
program members. The brand maintains its own recommendation leveraged insights to unlock growth. These were gathered from
engine, focused on prescribing book titles, authors, and content multiple sources to develop a well-rounded view of customer needs
to each member based on their unique proclivities and passions. and included a combination of social media, VOC surveys, customer
To arrive at personalized recommendations, the algorithm ingests care, research, location, behavioral, and multi-channel engagement
all available customer-centric data — zero-party, first-party and conversion data. Additionally, the brand leverages preference
transactional, and site engagement data. data, member and third-party research studies, zero-party data, and
a takes “test and learn” approach to evolve campaign strategies.
Margaritaville’s loyalty program, Margaritaville Perks, is powered
by an Artificial Intelligence solution that gathers data at every touch
PLATINUM WINNER
B LU E B U F FA LO
FINALISTS
Silver: Scene+
Now more than ever, brands need to demonstrate a true understanding In 2021, the SCENE program merged with Scotia Rewards to
of their customer’s expectations through the delivery of positive become the all-encompassing lifestyle rewards program, Scene+.
customer experiences as a result of a comprehensive CX strategy. The brand’s approach to launching the new Scene+ was two-fold:
From technology to training to socialization and implementation, these reintroduce the program to existing members and announce it
brands are committed to delivering consistently positive customer to the rest of Canada. To help Canadians feel as though rewards
experiences from all levels of their organization. The Customer would literally rain down on them, the “Make It Rain” campaign
Experience Strategy may be a part of or separate from the brand’s included multiple vignettes in a hero film spot, accompanying radio
overall customer loyalty strategy. and online audio scripts mimicking stereotypical movie trailers, and
out-of-home placements, digital ads, and in-store posters.
Blue Buffalo’s Buddies’ Customer Experience Strategy was designed
to grow meaningful relationships between Blue Buffalo and pet parents
that drive long-term changes in behavior. The brand focused on three Cinergy Entertainment desired to keep the customer experience
main levers: acquiring new users and information about their pets, simple and fun. Member data was leveraged for targeted
building engaging experiences to increase retention within the app, and marketing. The brand engaged members through surprise and
providing targeted and systematic offers to increase buy rate. Initiatives delight screenings, member-exclusive events, double-point
include the Free Treats Acquisition Campaign, a week-long promotion promotions, and more. Members easily track their journey online or
and contest to drive app engagement, and time-sensitive offers to in the app. The brand’s strategy included targeted emails, member-
create a sense of urgency. specific offers, bonus rewards for specific activities, and Box Office
Binge / All Access Day.
The customer experience strategy for Victoria’s Secret included
customer research, program validation, and sentiment tracking. During
the consumer validation phase of program design, the brand surveyed
a wide mix of customers to understand program appeal and perception
across demographics, income, brand affinity, and cardholder use. This
allowed the brand to create a “phytigal” cohesive journey for customers
with in-store and in-app experiences.
PLATINUM WINNER
T I M H O RTO N S
FINALISTS
Silver: NFL
Brands with successful customer loyalty and experience strategies The NFL’s fan engagement launch demonstrates innovation and
understand that they should never take a “set it and forget it” creativity in how it interacts with fans digitally. Through interactive
approach. Marketers always need to anticipate their journey and experiences, the NFL allows fans to actively participate with the
actively consider “what’s next.” As many brands look to improve, league. Fans are empowered to share opinions through quizzes,
update, or revamp their loyalty strategies, other brands are embracing polls, and surveys. By giving fans prizes, entertainment, and the
formal customer loyalty strategies for the first time, understanding the opportunity to provide insights, fans develop trust in the brand.
strategy’s value to identify, engage, and reward their best customers. Contests such as “Fan of the Year” and the weekly showdown
Finalists in this category successfully demonstrated that their loyalty fostered engagement opportunities that helped to build a sense of
launches (or re-launches) resulted in a measurable increase in community among fans and create a more personalized experience.
customer loyalty, engagement, and/or satisfaction while also proving
themselves as a valuable brand differentiator. MGM Resorts International rebranded its M life Rewards to MGM
Rewards with the goal of creating a loyalty program to engage,
Tim Hortons’ Scan and Pay feature in the Tim Hortons app allows understand, and recognize MGM’s high-value customers, driving
guests to securely attach a payment method to their loyalty profile. meaningful relationships with MGM Resorts. The brand focused
Once the feature is toggled on, guests can earn and burn points, the redesign of its loyalty program on three elements: optimizing
apply digital offers, donate to Tims Camps, and pay for their order, all tier mechanics, enhancing member benefits, and expanding
in one scan. This removes the need for a guest to pull out a second earning and redemption opportunities.
card and for the team member to process payment separately.
Design principles included a simple user interface to encourage guest Sonesta International Hotels’ new loyalty program drives more
adoption, secure processes to protect guests from payment fraud, and engagement with its member base. Integrating disparate data
a speedy POS process for team members. sources allowed the brand to gain more insights about guests.
Economic modeling played a significant role in enabling the
In a post-COVID world, Vivid Seats needed to pivot its approach to redesign resulting in an optimized program that is simplified yet
meet consumers at their new normal. This included rolling out an opt- flexible and more attractive for members to participate in across an
in model and tying first stamp earn ability to a high-value action and expanded and more diversified portfolio.
demonstrating to users that their behaviors affect earning potential.
The brand also launched its first-ever multimillion-dollar campaign
targeting existing customers to expand program awareness and new
customers, using rewards as an acquisition tool.
PLATINUM WINNER
WAWA
FINALISTS
Platinum: Wawa
Gold: Donatos
Silver: Scene+
Through a combination of technology, training, socialization, and Scene+. The brand’s strategy to build loyalty was to give meaning to
implementation, finalists in the Customer Loyalty Strategy category the ‘+’ in Scene+, which meant educating Canadians about all the
are truly dedicated to keeping customer loyalty top of mind. This places they could now earn and redeem rewards. In 2022, Empire,
category recognized brands that implemented an effective long-term Canada’s second-largest grocer joined the program. Initiatives
customer loyalty strategy with measurable impacts. The strategy may included the “Make It Rain” campaign, radio and online audio scripts
or may not include a traditional customer loyalty/rewards program. reminiscent of dramatic movie trailers, and physical and digital ads.
Wawa’s loyalty strategy involves leveraging data and analytics to Bank of America’s Preferred Rewards loyalty program embraces
personalize customer experiences based on a deep understanding of a simple strategy — make clients feel valued, reward them for
preferences and behaviors in real-time. A key element of this strategy their loyalty, and encourage them to do more business with the
requires multiple sources of customer data to come together in one brand. Brand reach is expanded through social media, and AI and
place, using an approach called “Customer 360.” The brand is shifting personalized smart videos are leveraged to keep clients engaged.
from manual processes for customer targeting to a greater reliance Exclusive experiences for the most valuable clients in the Diamond
on automation and models. Employing these strategies and tools tier provide unique rewards for those members. Bank of America’s
has allowed Wawa to optimize across the messages it sends, offers client-centric focus drives strategy.
delivered, and ordering experiences of members.
Draftkings’ Dynasty Rewards is an industry-leading rewards
With a refreshed focus on a points-for-purchase model vs. a “punch program. The brand uses customer insights, player feedback,
card” one-size-fits-all offering, Donatos transformed its loyalty competitive research, and internal quantitative analysis to inform
program. Leveraging zero-party data along with order history and strategy. The program offers a robust selection of rewards and
customer preferences enabled the brand to build more meaningful incentives including real-time reinvestment, weekly games, unique
relationships with its members through personalized communication. sweepstakes and promotions, and luxury gifts for the best players.
An easy-to-use loyalty partner platform also allows them to regularly When launching in new markets, status-tier gifting has proven a
experiment with new types of engagement, using every opportunity to successful tactic in generating additional play from customers and
gain new insights. a reason to choose Draftkings over its competition. The brand also
provides a surprise and delight feature that randomly awards a
As part of its ambition to change the face of loyalty in Canada by handful of customers a physical prize each week, providing further
expanding beyond existing categories, SCENE merged with Scotia incentive to return.
Rewards to form a complete lifestyle rewards program for Canadians,
PLATINUM WINNER
BANK OF AMERICA
FINALISTS
Bronze: Donatos
An engaged employee is one of the most valuable resources a IKEA Canada’s Share of Sales Challenge set out to incentivize stores
company can have. Creating this engagement, however, is much easier to promote its loyalty program in-store. A variety of tactics were
said than done. It requires a culture of alignment that ensures every deployed to educate member-facing employees to better equip them
employee is working together toward a shared goal of the larger brand to facilitate conversations around the loyalty program and increase
identity. Finalists in the Employee Engagement and Impact category the membership card scan rate. Stores were incentivized by offering
have built this culture and created an engaged workforce that knows cash prizes to the top three performers, allowing the staff to decide
what the brand promise is, where it’s going, and how it will get there. for themselves how to celebrate their winnings. Internal email, the
internal in-store TV network, posters, and “table talkers” provided
Bank of America conducts annual Employee Engagement surveys, support. Employees were encouraged to contribute to an Idea Book.
and shares results at the team, location, line of business, and
enterprise level. The survey allows the brand to collect teammates’ Donatos’ engagement strategy includes role-based training, active
input into what’s important, which helps Bank of America provide the participation, and associate exclusives — such as free food and
benefits, programs, and resources to fulfill those needs. Innovative a gamified experience. The brand develops more knowledgeable
training experiences are provided, including a conversation simulator associates through a training and recognition platform called
and immersive virtual reality experiences. The brand’s employee Donatos University. Embracing a learning pyramid model, training
engagement strategy is strengthened by providing special access for modules include lectures, reading, audio-visual, demonstration,
employees to the Preferred Rewards Platinum Tier program. discussion, opportunities to practice, and finally, teaching others.
The Scene+ loyalty program was launched in Empire Company Certified Angus Beef provides retail stores carrying its product with
Ltd.’s 1200+ grocery, liquor, and pharmacy stores across Canada. marketing resources to highlight customer opportunities to take
Through a series of innovative programming initiatives, the company advantage of Steakholder Rewards™. Certified Angus Beef stickers
fostered an atmosphere of camaraderie and healthy competition identify which beef products come from the brand. Communications
among teammates, incentivizing them with over $1.3M in prizes. This are sent to educate stores on how product purchases should be
approach utilized both individual and team competitions, inspiring identified on shopper receipts so that program members can be
and motivating teammates across Canada to become enthusiastic properly rewarded. Restaurants carrying the product are incentivized
advocates for Scene+. to recommend it to their customers through communications from
the brand, branded swag, advice on leveraging social media, and
assistance with a Steakholder Rewards™ launch.
PLATINUM WINNER
G I A N T FO O D
FINALISTS
Gold: Progressive
Bronze: Parkland
At its core, the most successful loyalty program is more than the sum of could be earned through exciting campaigns, including a Las Vegas
its features. While many programs feature similar granular mechanisms, scavenger hunt. Program signup and navigation are kept simple,
it is how these features work in tandem that gives a program its identity with clear instructions on how to redeem points for rewards and
and enables measurable, iterative growth. Finalists for this category advance to the next tier. Elevated benefits include member-only
demonstrated that their program does the little things to ensure that experiences, complimentary tickets to exclusive concerts, priority
every piece of the loyalty puzzle works together to create a seamless, access to events, the brand’s best products, member recognition,
user-friendly, and effective initiative. and more.
In response to historic rises in inflation, Giant Food created a new Parkland’s Journie Rewards™ involved a simple and innovative
redemption arm of its program that focused exclusively on the construct that would unify a multi-brand portfolio across Canada.
grocery retailer’s private brand products. This was tied to an incredibly The program needed to connect diverse retail experiences while
aggressive pricing structure that heavily favored the customer’s ability building a highly scalable partner ecosystem. The result was a
to participate more often than they ever had been able to prior, and to digital-first program centered around giving members choices, with
get even more value from it. A multi-channel marketing approach — in- real-time fuel discounts, relevant communications, and valuable
store, digital, and direct mail — to reach customers was employed. offers. The program’s design is different from standard earn-burn
program — points are not a currency, but a way to track progress to
Progressive’s Loyalty Rewards Program consists of six levels where unlock different rewards.
benefits increase as tenure with the company increases. By offering new
customers loyalty benefits and discounts, the brand builds excitement Sleep Number’s program was designed to develop emotional
for the program. As customers achieve more tenure, they earn larger loyalty. Members earn points to achieve six tier statuses that unlock
benefits which are convenience-based and could present cost savings. free products, dollar certificates, sweepstakes, NFL products and
The brand educates customers about their current loyalty level at each tickets, and charitable donation possibilities at each level. Tiers
renewal and celebrates with them when they’re about to achieve the were strategically designed to be achievable with a few actions
next level with email and direct mail communications. encouraging and incentivizing ongoing engagement within a long
purchase-cycle category. Once members achieve the highest tier
MGM Resorts International’s program design consists of four central status, they unlock the ability to redeem their points for additional,
design components: portfolio awareness, currency mechanics, tier one-of-a-kind sleep-relevant rewards.
mechanics, and tier benefits. The brand communicated where points
OFFER, INCENTIVE,
AND REWARD DESIGN
PLATINUM WINNER
LEGO
FINALISTS
Platinum: LEGO
Gold: Ford
Bronze: Signia
Offers, rewards, and incentives are typically a major component of any Kampgrounds of America’s KOA Rewards was relaunched in 2023
customer loyalty program. With the prevalence of offers, consumers with a simplified and digitized earning and redemption process at a
can include rewards and incentive options in their decision-making low annual fee. Based on point accumulation, there are two tiers —
process. Finalists in this category showcased their unique membership Base and VIP. Base tier account holders receive a percentage off the
perks and demonstrated how the incentives they provide draw loyal daily registration rate, points for dollars off future KOA stays, a free
customers and have made their programs stand out from the crowd. night of camping during the KOA Rewards weekend, and exclusive
savings from corporate partners. Those at the VIP tier account
With over 1,000 rewards, LEGO’s program benefits and rewards are level receive Base benefits and also earn more points, receive free
unique and innovative. The brand’s rewards assortment considers one-year enrollment to KOA Rewards, a bring-a-friend discount, and
play themes, passions, campaigns (holiday, LEGOCON), price points, cancellation fees are waived.
and mechanics (physical/digital). Rewards vary by location, target the
right user, and are updated frequently. Members are treated to special Signia’s Aspire program was developed to deliver benefits that help
events — product launches, store openings, signings, etc. — and hearing care practices achieve their goals. HCPs become eligible for
receive early access. By offering personalized rewards and exclusive the program by fitting patients with Signia hearing aids, unlocking
experiences, the program maintains salience with customers. access to a growing list of soft perks and baseline benefits such
as consumer marketing funds, Signia-generated patient leads,
Ford’s FordPass Rewards is a currency-based loyalty and reward a dedicated customer service number, free shipping, and more.
platform, through which members earn points on new vehicle Members of Aspire also earn points for every qualified order, which
purchases or leases, Ford Blue Advantage purchases, dealership they can use in the Aspire store for items like audiological supplies,
service, and purchases from the Ford Accessories website. Points can office equipment, Signia products, and other needs. Bonus Benefits
be redeemed for the same in addition to member-exclusive offers. and Brilliant Benefits bring additional perks.
Additional perks and benefits are offered for the highest tier. The
program is also designed to drive customer loyalty with dealers by
incentivizing members to use their points on discounts for service,
tires, and accessories within the Ford ecosystem.
PLATINUM WINNER
7- E L E V E N
FINALISTS
Platinum: 7-Eleven
Gold: Hilton
Successful customer loyalty and engagement strategies rely on Travelers Insurance partnered with Cambridge Mobile
technology to better understand, connect with, and serve customers. Telematics (CMT) to create IntelliDrive® — an optional program
This category recognizes brands and their supplier partners that have that uses a mobile app to capture driving behavior data (e.g., hard
leveraged technologies and techniques (e.g., CDP, machine learning, braking, rapid acceleration, speed) and reward safe drivers with
artificial intelligence, augmented reality, gamification) to develop a savings on their auto insurance premiums. The technology also
fresh approach to their loyalty strategy. Finalists in this category have features crash detection, which can facilitate emergency assistance,
developed projects that previously would have been significantly more accident guidance, and claim submission. IntelliDrivePlus™ rewards
difficult or impossible to implement without the presence of new and incentivizes low-mileage drivers and safe driving with savings.
technology or platforms. A smartphone app captures driving behavior and miles-driven data
and then adjusts the customer’s rate every policy term based on
7-Eleven’s app is at the heart of a digital connection with customers. It collected data giving customers more control over what they pay for
provides them with the convenience and safety of frictionless checkout auto insurance.
options. With mobile checkout, customers can scan and pay directly
from their phones. Contactless fuel payment is also available — Using a dynamic guest engagement platform, PDQ Restaurants
customers can initiate a fuel transaction from their car and pay for their launched their first-ever loyalty program, MyPDQ Points. Powered
fuel purchases using the app. The brand also offers product delivery by the new MyPDQ App, guests can customize and save their PDQ
(snacks, hot food, etc.) through its 7NOW service, while the 7-Eleven orders, pay in advance to skip the line, store PDQ gift cards, track
Wallet is unique in that it lets customers load cash. their point-earning status, and redeem points for free food items.
PDQ’s implementation of the guest engagement platform also
Hilton developed an automated upgrade for Hilton Honors members. A allows the brand to personalize promotions for their loyalty guests
robust algorithm allows for the upgrade by taking into consideration a and quickly test and roll out robust marketing campaigns. Since
list of data attributes including business traveler lifetime value, member prioritizing digital guest engagement, PDQ has been able to grow
history, and stay details and evaluates against standard and premium efficiency, personalization, and better customer engagement.
room inventory across participating hotels to identify feasible upgrades
days before arrival. If the upgrade is assigned, the member is notified
(app/email). With Digital Check-In, the member can choose the location
of their upgraded room through the app. Members are also encouraged
to utilize the Digital Key to access their premium room while foregoing
the front desk.
360-DEGREE BRAND
PLATINUM WINNER
BANK OF AMERICA
FINALISTS
Gold: LEGO
Silver: Scene+
A comprehensive overall award, the 360-Degree Brand Award The Gold 360-Degree Award goes to LEGO for receiving Platinum
recognizes excellence in all facets of customer loyalty. Brands do in both the Customer Offer, Incentive, and Reward Design and
not directly apply for the 360-Degree Award. To qualify, brands Analytics, Insights, and Metrics categories.
were required to enter three or more individual categories and be
named a finalist in each one. Scene+ took home the Silver 360-Degree Award for its Platinum
Award in Brand-to-Brand Partnerships and Silver Awards in the
To determine the 360-Degree brand winners, finalists were Customer Experience Strategy and Customer Loyalty Strategy
assigned weighted point values based on their finish after the categories.
presentations made during the final judging round at the Loyalty
Expo in Orlando, FL. As a final category that considers a brand’s Two brands were recipients of a Bronze 360-Degree Award —
complete performance in the individual Loyalty360 Award TELUS and Giant Food. TELUS was recognized with a Platinum
categories, the 360-Degree Award celebrates companies that Award in Corporate Social Responsibility and a Gold Award in Brand-
create, nurture, and innovate customer loyalty in many ways. to-Brand Partnerships. Giant Food won Platinum in Loyalty Program
Design and Gold in Corporate Social Responsibility.
Bank of America received the Platinum 360-Degree Award for
its achievements, earning Platinum in Employee Engagement &
Impact, Gold in B2B Customer Loyalty, and Bronze in Customer
Loyalty Strategy.
PLATINUM WINNER
BRIERLEY
FINALISTS
Platinum: Brierley
Gold: Kobie
Silver: Brandmovers
Loyalty360 also recognizes the technology and service providers Brandmovers received the Silver 360-Degree Award for designing
whose clients had the best-combined performances across all and executing engaging promotions and loyalty programs that build
categories with a 360-Degree Supplier Award. Supplier partners do genuine connections between brands and their customers, sales
not directly apply for the award. To qualify, the brands they partner channels, and employees. Brandmovers offers brands a flexible
with were required to enter three or more individual categories and be enterprise-level loyalty platform — a modular, scalable solution
named a finalist in at least one. that combines best-in-class technology, analytics, and integration
capabilities.
These suppliers received points based on where their brand clients
placed in their respective categories. Top earners were recognized as Cheetah Digital by Marigold took home the Bronze 360-Degree
winners of the 360-Degree Supplier Award. Award for delivering relationship marketing solutions enabling
brands to acquire, understand, engage, and retain customers
The Platinum 360-Degree Award went to Brierley for delivering across the entire lifecycle. By bridging the gap between data and
award-winning solutions to clients’ customer loyalty challenges. contextual engagement, Cheetah ensures insights are activated,
A Capillary company, Brierley offers best-in-class technology and and a unique value exchange is delivered across all channels and
strategic services to help clients seamlessly orchestrate loyalty and touchpoints.
customer engagement strategies across all customer touchpoints.
Bounteous received an Honorable Mention for its work co-
Kobie won the Gold 360-Degree Award for providing robust innovating with its brand clients to create transformative digital
solutions for its brand partners. Thoughtful design on the front end, experiences. With services in strategy, experience design,
coupled with extensible, configurable technology, leads to a seamless technology, analytics and insight, and marketing, Bounteous
customer experience. Kobie drives enterprise value through a elevates brand experiences to drive successful customer loyalty
strategy-led, technology-enabled approach to loyalty creating a cycle strategies.
of continuous improvement for brands.
RECEPIENTS
This special recognition was presented to two individuals who Don Smith, Global Consulting Officer & CMO (US/Europe) at
have made outstanding contributions to the customer loyalty and Brierley, a Capillary company, was honored for championing
experience industry. Through their work, they have elevated the and leading the design, strategy, development, optimization, and
loyalty strategies of the brands they partner with, designing and improvement of countless loyalty programs during his 16 years at
implementing powerful solutions to meet their critical needs. Those Brierley. As an expert in data analytics, Don ensures that insights
nominated for this category included industry executives, brand from data are used to guarantee program profitability and optimize
program leaders, and loyalty subject matter experts, as well as the customer experience (CX). Don’s synergized data- and human-
brand marketers and supplier partners. focused expertise reflects the future of professional and enterprise
loyalty programs. Prior to his current role at Brierley, Don spent
Tom Madden, Managing Partner, Loyalty & CRM at ICF Next, almost 15 years in executive and senior director roles with the
was recognized for his leadership in the Loyalty and CRM Division company.
of ICF Next. He is responsible for overall client program design,
integration and implementation, and flawless execution of loyalty
and CRM efforts for more than 80 brands across a variety of
industries, including ICF Next’s proprietary loyalty and CRM
platform, Tally™. He previously led ICF Next’s loyalty strategy and
client success teams. Throughout his career, Tom has designed,
implemented, and managed hundreds of loyalty programs globally
while living in the US and the UK.
Featured Products,
Advancements &
Technology
Technologies
& Services
for its clients across various verticals, from retail to fuel, travel,
and more. The Comarch team includes over 600 individuals in
loyalty-focused roles, including platform integration, development,
enhancement, and loyalty strategy design.
Marketers have the option to either set up and manage their Engage People, headquartered in Toronto, Ontario, Canada, is a
campaigns, offers, or benefits within the platform or partner with tcc SaaS-based loyalty and incentive platform solution provider focused
from a managed services standpoint. The modules can be mixed and on the technology of loyalty programs and using that technology to
matched based on the client’s goals, budget, and audience interests improve the customer experience. With over 30 years of experience
to create a custom reward experience. Within each module, clients in loyalty programs, the company boasts a global customer base with
can determine the point and reward values — e.g., for every 100 its primary focus in North America. Engage processed over $200M
points, a member can redeem $1 off their student loans — and match in redemptions in 2022 and is on track to transact $1B in 2023.
their catalog to local interests — such as regional charities or schools
for donations.
The company is seen as a technology partner by the institutions they
work with, with loyalty at the focus. Engage extends its anonymized,
For more information, visit tcc’s member page on Loyalty360 here. aggregated data alongside partner data to bring the best consumer
experience to the member base.
“Now you can have a book club meeting with your friends or family
and not have to worry about if you read the book or not,” says Archer
Roose CEO Marian Leitner. “It’s all about the wine and not taking
ourselves too seriously.”
Chase and Amazon will rebrand the cards to feature new names:
Prime Visa and Amazon Visa. Cards are available to both Prime
our cardmembers, faster,” says William Mahoney, General
members and non-members. Prime Visa cardholders receive
Manager of Amazon Visa cards at Chase.
uncapped 5% back on Amazon purchases, and Amazon Visa
cardholders receive 3% back on Amazon purchases. Both cards now
To celebrate the new benefits, new Prime Visa cardholders
allow members to earn and redeem rewards daily instead of monthly
will receive a $150 Amazon gift card and can earn 5% back
and earn 2% back on local transit and commuting.
on all purchases up to $2,500 in the first three months. New
Amazon Visa cardholders will receive a $60 Amazon gift card
“The addition of travel-based earn opportunities on the cards and
and receive 3% back on all purchases up to $1,500 in the first
ability to now redeem rewards points earned on purchases as
three months.
soon as the next day means we’re providing even more value to
PDI Technologies Launches Save Money with More Fuel Points: Members can earn 2X Fuel
Points for every $1 spent every day and earn extra Fuel Points
New Solutions for Convenience during fuel promotions. For each 100 points, customers save 10
Bank of America®
Innovation, Strategic Partnerships,
and Personalization Demonstrate
Value to Rewards Program
Members Click here to view to our
interview with John Sellers,
Bank of America
By Mark Johnson, Loyalty360
In addition to its broad range of financial products and services, Bank of America developed a full lifecycle of engagement
the Bank of America Preferred Rewards loyalty program offers around the program. It begins with enrollment eligibility. As
members significant benefits matching their assets while members are onboarded, they are recognized when they log
demonstrating the value of being a loyalty program member into the brand’s digital sources. Quarterly communication
through engagement, personalization, and well-trained frontline with members keeps them informed of updates and program
employees. innovations about the benefits they can access. Members have
responded well to the loyalty program, and the brand has seen
Mark Johnson, CEO of Loyalty360, spoke with John Sellers, huge success. From a membership and asset perspective, the
Head of Rewards at Bank of America, about the success of program has grown at a CAGR of around 20% year over year.
the Preferred Rewards program, innovating when leveraging
technology, and bringing value to employees in a culture of The Preferred Rewards program continues to be recognized
inclusion. from an industry perspective, too.
Partnerships and Personalization Sellers admits that for him, innovation is the most enjoyable
part of the culture at Bank of America. From developing smart
Historically, Bank of America has approached partnerships in the videos to working with AI technology and Erica®, the brand’s AI-
reward space from more of an aggregator perspective, and many powered bot, leveraging technologies has allowed the company
partnerships have been formed with aggregators around card- to fast-forward its agenda. Working in the digital environment
linked offers. Those partnerships typically work well because — for example, creating the My Rewards hub — aligns with the
becoming a strategic partner with Bank of America is a rigorous innovative culture encouraged at Bank of America. Over 80% of
process. Much is involved in terms of compliance and GIS security program members are digitally engaged with Bank of America on
requirements. a regular basis.
However, Sellers is pleased to share that the brand is open “We pride ourselves on our digital experience and our high
to strategic one-on-one partnerships, too. For example, a tech high-touch strategy,” says Sellers. “Our app and digital
partnership with Grubhub offers members and clients free experiences are award-winning in the industry. We do focus that
delivery service for up to a year. experience around rewards, whether it’s My Rewards — the
single destination for everything rewards-related, the way we
Recently, Bank of America launched experiential rewards for high greet you, or the way we tee up the opportunities with rewards
net worth and ultra-high net worth clients in its Diamond and in our digital experience.”
Diamond Honors tiers — those members with $1M to $10M, or
$10M+ for the latter, in assets. This has brought new partnerships
with some premium brands and travel agencies. Engaging Employees with Incredible Value and
Exciting Technologies
“We are open to different types of partnerships. The extent of the
partnership determines the appropriate or the best model for us Loyalty programs have a greater rate of success when employees
to pursue,” explains Sellers. are on board with the program, understand it, and can clearly
and accurately explain the benefits to customers. In fact, Bank
The right partnerships can create a greater opportunity for of America employees are engaged with the Preferred Rewards
personalization — bringing the right benefits to the right program. As long as Bank of America employees have a checking
customer and the right time. account, the company will waive the $50,000 asset requirement
to provide them with Platinum tier benefits. Those employees
Personalization is for the client, but it’s also about the results. get a 50% card bonus, auto discounts, mortgage discounts, home
From a client perspective, Bank of America wants the experience equity discounts, fee waivers, and more. It’s an incredible benefit.
to be relevant, satisfying, and engaging. From a results Sellers reports that 97% of eligible employees are enrolled in
perspective, when programs and messages are personalized, the program. This has created a huge impact on its success as
performance improves with higher engagement and sales rates. employees interact with the clients face to face, through the
To ensure success, hyper-personalized videos are produced, and financial center, over the phone, and through chat. Employees
personalized dashboards are provided. Personalization is crucial can relate to the program and understand the benefits because
for quarterly emails, too. Based on the customer information, they’re receiving the same.
triggers deliver the appropriate benefit.
Training on the program is ongoing, and multiple trainings are
“One of the triggers we’re working on right now is if we see a provided to frontline associates in particular — whether it’s web-
member of our program has purchased international travel or based training or huddles. Innovating employee training is vital
is flying abroad, we queue up our FX currency benefit,” shares to keep it fresh for associates. Bank of America leverages tools
Sellers. “This lets the member know they can get up to a 2% like iCoach, a conversation simulator that employees can use for
discount on foreign currency. We’ll deliver it and ship it free to practice. Immersive virtual reality experiences enable employees
their home before they leave.” to practice client interactions. Employees benefit significantly
from the company’s culture of innovation — and its culture of
inclusion.
Innovate to Elevate
“Bank of America stands for a culture of inclusion,” finishes
Bank of America’s culture shapes its loyalty efforts. Ultimately, Sellers. “We care about all employees as well as we care about
the brand’s purpose is to improve its clients’ financial lives our clients and members. This will shape the direction of our
through responsible growth. There is a culture of innovation program even further in the coming years.”
where relationships matter. The Preferred Rewards program
demonstrates this alignment. Client relationships are recognized. Visit https://www.bankofamerica.com/
Value is driven to members through the rewards they receive,
and Bank of America makes sure this value is remembered. To
keep this value at the forefront of members’ minds, the brand
continues to innovate to elevate.
brierley.com
Differentiation is key for brands looking to stand out in a crowded or to connect with consumers more broadly beyond the program,
market and connect with consumers who are often overwhelmed consider these key points.
by the demands of an always-on world. More than ever, consumers
want to feel their purchases align with their personal values and be- Be authentic. This is a critical component of building an emo-
liefs, and even make things better for their larger community. This tional connection between brands and consumers. According to
desire for meaning and purpose drives a shift toward more person- our latest research, 57% of consumers say it matters to them if a
alized human connections between brands and consumers. brand is authentic. Brands that show up in ways that feel true to
their values and beliefs will resonate with consumers and engen-
According to our new proprietary research, over 80% of consumers der trust. Consumers also expect brands to be transparent and
say a brand’s values and beliefs are important to them. This means honest in their approach—and our research shows that consum-
brands must show up in ways that resonate with consumers on a ers rank honesty as their most important value.
deeper level in order to be relevant, ignite Participation, and fuel
emotional loyalty. Perform an audit. Brands need to know their values and beliefs
and communicate them clearly to consumers. This starts with
The COVID-19 pandemic brought about a greater level of intro- figuring out what their values truly are and if the beliefs they go
spection for consumers. The result is an increased focus on what to market with are the natural outflow of those values. Is there
is truly important and a desire for experiences that are tailored to a true alignment between the two? Do both resonate with the
individual needs and preferences. Brands that provide this person- brand’s target audience? Does the loyalty program—and any part-
alized engagement will be well-positioned to connect with custom- nerships and related experiences—reflect those same values?
ers in more meaningful ways that strengthen loyalty.
Prioritize thoughtful communication. Our research confirms that
consumers view brands that communicate their values as authen-
Lean into shared values and beliefs tic. Identifying core values and making them clear to consumers
through a holistic communications strategy will drive connection
As brands look to leverage shared values and beliefs to elevate their and mitigate some of the impacts of evolving expectations. Once
relationship with consumers within formalized loyalty structures the brand has the right foundation, it is important to build out a
Educate and empower your team. Teach them about the brand’s
values and beliefs, and how they need to be modeled in every
customer experience point. Brands with teams that buy into their
values and beliefs—and live them out authentically—will be more
successful in building emotional connections with consumers. Denise Holt, Content Senior
In-person experiences are particularly impactful, so make sure Partner, Strategy, Experience,
that front desk staff, in-store associates, and in-flight crews—as Research + Insights | ICF Next
well as executive management—show up in ways that align with
the brand values. Denise Holt understands the
power of human insights in driving
smart strategy and business
Consider generational differences. Our research confirms that
growth. With over 20 years of
the past few years brought more significant changes in what experience in consumer loyalty,
younger generations value. Brands need to think critically about brand and creative strategy,
the audiences they are trying to connect with and understand that consumer insights, human-
consumers in different phases of life may have varying expecta- centered design and business
tions and look for the brand to show up in distinctive ways. Experi- strategy, Denise leads ICF Next’s
ences and rewards structures that are unique based on genera- strategy, experience, research and
tional segments and informed by a data-driven understanding of insights team.
your customers or members might be more impactful.
Continually check the pulse. Brands need to measure frequently Tom Madden, Managing Partner,
and stay connected with their consumers to understand how Loyalty & CRM | ICF Next
best to champion and embody shared values and beliefs. It is im-
portant to get feedback regularly and know when to adjust. Tom leads the loyalty and CRM Division,
where he oversees program integration
A set-it-and-forget-it approach can get brands into trouble.
and implementation, and flawless
execution for loyalty and CRM efforts
across a variety of industries, as well as
Going beyond points to foster brand love the design and optimization of ICF Next’s
proprietary loyalty and CRM platform,
Consumers seek out brands that align with their values and Tally™. He previously led the loyalty
beliefs, but it is not necessary to align in every aspect. Brands strategy team and client success team.
that are authentic and stay true to their values can even gain the
respect of consumers with opposing views for exhibiting trans-
parency and honesty in their approach. Serving customers well
and providing a great product can also help brands connect by
meeting needs and making lives easier, but shared values and
beliefs can still be a differentiator when it comes to final pur- About ICF Next
chase decisions. Even in challenging economic times, consumers
At ICF Next our team of mission-driven strategists, data scientists,
may prioritize brands that align with their values—despite those marketers, and creatives work every day to build experiences that
brands being more expensive—and choose to sacrifice elsewhere. spark Participation—creating moments that matter and bringing
brands closer to the people who most influence change for them.
Consumers look for brands that reflect who they are and add Our strategy-first approach and proprietary loyalty solution, Tally®,
meaning or convenience to their lives, especially in challenging power some of the world’s best known, award-winning loyalty
times. That means it is critical that brands leverage their loyalty programs. With our deep analytics expertise, we go beyond points
programs to connect with customers in a way that feels unique and programs to provide end-to-end solutions that deliver the ROI
our clients need all while elevating brand equity and igniting the
and valuable to them. Perks such as early boarding on a flight,
human connections their consumers crave.
preferred seating, or larger luggage allowances can be appealing.
Additionally, opportunities to support meaningful causes and
simple gestures like a free birthday coffee or the convenience of
pre-shopping a big sale can help to foster emotional loyalty.
For companies focused on bringing more value to their customers and • Cassie Preston, Client Services Director CRM &
loyalty program members, brand-to-brand partnerships are a growing Loyalty of Baesman
area of interest. However, building successful partnerships can be • Danny Hotowski, Loyalty Program Manager, Partnership
challenging for even the most seasoned brands. Network Development, Comarch
• Hector Pages, Chief Client Officer of Brandmovers
Brand partnerships aren’t formed overnight. They often require a
significant amount vetting, planning, and development, ensuring that
both companies complement each other’s products, services, values, Foundations of a Successful Brand-to-Brand Partnership
and audiences.
Over the past several years, brands have homed in on
With the right partnerships in place, both brands can thrive, bringing customer data. Through understanding who their audiences
more value to their customers while reaching new audiences and are and what they care about, brands can connect emotionally
creating opportunities for growth. With any brand partnership, with customers beyond their transactions. In terms of brand
alignment is key. Brands must consider how a partnership will impact partnerships, this allows all companies involved to build
how the customer feels about both brands. But when crafted in an authentic relationships with customers over their shared
authentic manner, all parties can leverage the partnership to develop values and beliefs.
stronger connections and drive emotional loyalty.
“To build successful brand-to-brand partnerships three
Loyalty360 spoke with vendor members and loyalty strategy experts things are critical — finding a brand that shares your brand’s
about best practices on building brand partnerships within the loyalty values and beliefs, playing to the individual strengths of each
industry. brand, and collecting accurate and reliable customer data
to measure the success of the partnership,” says ICF Next’s
Article contributors: Gupta.
• Bindu Gupta, Senior Director of Customer Strategy, Insights, and Baesman’s Preston adds, “Brands have taken the opportunity
Research for ICF Next the last few years to really assess their customers’ needs
• Lauren Sutherland, Senior Strategist of Customer Strategy, Insights,
and Research for ICF Next
“Go back to basics — think about your audience and their Additionally, these kinds of offers allow consumers to save
lifestyle today and try to find partners who may have a mutual time while still engaging with both brands. By leveraging
customer or product that makes sense,” says Preston. “Don’t let partnerships, brands provide both financial and experience
the financials get in the way — they’re important — but focus on benefits, facilitating the emotional connection by showing
what you can both deliver to the customer and then work out customers their time is as valuable as their transaction.
the details from there if a partnership makes sense.”
“There are many things that customers value in brand
While meeting customer expectations should remain the partnerships including limited time promotions, earn
priority for establishing successful relationships, sometimes accelerators, unique redemption options, and enhanced
financials do play a role. For brands who do need to prove experiences,” says Gupta.
ROI for stakeholders or are navigating economic uncertainty,
partnerships help provide the value members expect while “It’s the reciprocal benefits that are important for customers
keeping costs relatively low. — the idea that they can earn some of the more transactional
benefits with each brand in the partnership and remain brand
“Many brands are looking for opportunities to serve their loyal to both,” Preston continues, “Experience is another
customers in a more simplified way, and at a lower cost. important factor — if the customer has to do extra work
Partnerships can also help brands deliver on their goals of a or spend extra time to take advantage of the benefits you
more loyal customer, while managing to a stricter balance sheet offer through a partnership, that partnership won’t connect
which current macroeconomic times call for,” says Preston. emotionally as you’d maybe hoped it could.”
Often, partnerships only offer benefits for limited promotions. Technology also presents a major challenge for brand
As a result, members need to engage quickly to take advantage partnerships. Integration across platforms or between brands
of them. Communication is a key element in driving customer requires significant financial and time investment into tech
engagement with a brand partnership. teams and resources.
“Like any marketing campaign, get creative with your launch Comarch’s Hotowski says, “The biggest challenge is the
approach — make sure customers clearly understand what they technical integration of the partnership between loyalty
get out of the partnership and how they can get the most out of programs. With IT resources becoming more and more
their benefits across the brands in the collective,” says Preston. constrained, a successful integration of partners requires
significant financial and time resources for a successful
Pages adds, “When it comes to communicating new or altered integration. Outlining the benefits for each partner, including
partner program benefits to customers, the priority should any benefits that would bring potential lift in engagement and
always be producing clear and concise messaging. It is important spend, tends to accelerate the approval process on both sides
for brands to provide detailed information on how the changes to help bring in IT support.”
can affect each consumer individually.”
“Other challenges can be technology integration — when a
In these situations, personalized communication is as important member of one program earns points through a partnership,
as clear communication. Just like partnerships should be formed how are those points recorded, and when do they show up
through understanding customer data and what is important to in the member’s account? It’s particularly important that all
them, communication to program members should arrive through terms and conditions are clear to members as well as to call
their preferred media and speak to their individual interests and center agents who will likely be fielding questions regarding
behaviors. both the partnership and promotional rules. In addition
to adding T&C language to co-branded webpages and
“When communications are personalized, and we are seeing this email communications, a brand should provide agents with
more often, members are more likely to actively engage,” says instructions on how to answer frequently asked questions,”
ICF Next’s Sutherland. “Messaging shown to them can be based adds Sutherland.
on historical activity, including purchases, use of partnerships,
co-branded credit card use, in addition to status or tier within the Additionally, brands can run into issues with legal and
program.” compliance while developing partnerships. Building a
relationship involves a certain amount of risk, especially if the
brands have any level of competition. Brands need to carefully
Challenges and Opportunities of Brand Partnerships plan out a partnership before execution to help mitigate
potential issues like a power imbalance or reputation damage.
Although partnerships can provide great benefits, customers
can still become disengaged with the program. Should a brand Yet, while there are challenges to partnerships, they also
face growing disinterest in its partnership, the next step is to bring both brands great benefits. Through careful planning
inspire customers to reengage. Like all aspects of successful and execution, partners can bring value, awareness, and
partnerships, reigniting interest in the program starts with data. support for each other to their loyalty program members.
“When a partner program begins to experience lagging customer “Creating mutually beneficial partnerships requires careful
interest and waning activity, the first step is to identify exactly planning, collaboration, and alignment of goals requiring
what may be the root of the issue,” says Pages. “Taking a critical clear objectives among all parties and a shared vision that
look at the program from the customer’s perspective and careful leverages complementary strengths,” says Pages.
analysis of platform engagement metrics such as login history,
point accrual data, program email data, and redemption activity “Brands who open an exchange of points between loyalty
can help reveal patterns and where it’s falling short for meeting programs will receive incremental revenue when members
their needs or failing to deliver expected value.” transfer or redeem points across programs (depending on the
direction). And while one brand may ‘earn’ more, the other
Preston adds, “If a partnership isn’t meeting the needs of brand benefits from awareness and perceived value of their
the audience, looking at the fundamentals of the customer rewards program,” continues Sutherland.
experience are a good next step.”
Sparking
consumer
Participation
through
shared values
and beliefs
81%
of consumers say
a brand’s values
and beliefs are
important to them.
the Bricks of
Successful Loyalty
How LEGO® Built the
VIP Rewards Program on Fun,
Creativity, and Inclusivity
38
38 Loyalty Management™
Loyalty Management™ || 2023
2023 Awards
Awards Edition
Edition || loyalty360.org
loyalty360.org
A wooden duck is not what most people think of when they Mark Johnson, CEO of Loyalty360, spoke with Jason Whiting,
hear the name LEGO, but that was the first toy the brand Director of Membership at the LEGO Group, about the new VIP
launched. Abbreviated from “leg godt” — meaning “play well” rewards program, building and planning strategic partnerships,
in Dutch — the LEGO Group was founded over 90 years ago in and creating value for members through personalization and
Billund, Denmark by Ole Kirk Kristiansen. Originally a producer data.
of wooden toys, the company invested in injection-molded
plastic in the 1940s, eventually patenting its iconic LEGO brick
in 1958. LEGO VIP: Building Emotional Connection
Through Brand Values
This brick built the LEGO Group into an internationally
recognized company, boasting 95% brand awareness. One of LEGO’s primary sources for engaging with and learning
Currently, LEGO products are sold across the globe, and while about customers is the LEGO VIP loyalty program. The points-
there are offices all over the world, the main headquarters is based program helps the brand deliver added value to its users
in Billund and regional headquarters are in England, the U.S., while maintaining the company’s values. Through the program,
Singapore, and China. the LEGO Group collaborates with several other well-known
brands, building sets and experiences based on familiar stories
Even with this footprint, the LEGO Group continues to find and characters like Star Wars, Harry Potter, and Mario.
ways to connect with its customers. To do this, the brand built
the LEGO VIP rewards program to share the company values In 2019, the program underwent major changes to drive
of fun, creativity, and inclusivity. The LEGO team overhauled engagement with both the program and the brand. Because
the program in 2019, switching from a primarily transactional the LEGO brand is very emotional, it wanted to make sure
program to an engagement and rewards-based one. This the VIP program was able to build emotional connections
change helped the LEGO Group boost engagement with the with its members. The program changed from only providing
brand and loyalty program. transactional discounts to focusing on the company’s core
values through member engagement and rewards.
Recently, the LEGO VIP program was named a finalist in several
categories of the Loyalty360 Awards. During the 2023 Loyalty “The big difference in our program is that it’s built on our
Expo in Orlando, FL, the LEGO team received a gold distinction company values: fun, creativity, and inclusivity,” says Whiting.
in the 360 Degree Award category and platinum distinctions “It’s one of the reasons we don’t have a traditional tiering
in the Customer Analytics, Insights, and Metrics and Offer, approach to anything. As an inclusive brand, we want to make
Incentive, and Reward Design categories. sure we’re welcoming to everybody.”
Within the program, members can earn points through purchases and needs as individuals. Like many brands, the company
made through the LEGO website or owned-and-operated is working to move beyond segmentation of its customer
stores. While high-spend members will earn more points, the journeys into one-to-one personalization. But unlike many
brand focuses its rewards and offers to target all different kinds brands, the LEGO Group faces the challenge of balancing
of users. The program offers thousands of different rewards personalization with data collection.
customized to the target audience, interests, purchase history,
and more. As a brand primarily marketed toward children, navigating
data collection and action can be complicated. For the
“Our program has everything from very low-value items — LEGO Group, trust is one of the most important aspects
including free rewards for those just starting off in their journey of building loyalty, especially when it comes to privacy.
with the LEGO brand — all the way to ‘money can’t buy’ benefits For that reason, it focuses on zero-party data and directly
and rewards,” says Whiting. speaking with users about the best ways to keep them
engaged.
Within the new version of LEGO VIP, experiences are more
important than transactional promotions. Discounts are great, Whiting says, “I think the challenge often lies in balancing
and many users rely on discounts for their purchases. However, the need to provide a personalized experience that brings
discounts don’t provide the “fun” that LEGO VIP uses to drive people through that journey versus how much data to
engagement with its members. collect. As a children’s brand, we have to be very careful
with that. Our program works directly with shoppers, and
“We have additional features and benefits like early access, we know how important it is for us to keep trust for the
special events, signing events for our users, points promotions, brand — especially with families.”
and more,” says Whiting. “We want something fun; we try to be
creative in the different types of things we make for our users Because of this focus on trust, the company’s
and then make sure it’s super inclusive. There’s something for personalization efforts begin with determining what kind of
everybody.” data it needs to build emotional connections with members.
Then, the brand turns to its global insights team, focus
groups, and surveys to gather this information directly
Finding the Right Set: The LEGO Group’s Creative from customers. While this process is still in development,
Approach to Personalization it gives members a transparent view into the Group’s data
collection.
For the LEGO Group, inclusivity means bringing the loyalty
program to life for every user journey, no matter the level of To measure the success of its personalization efforts,
spend. This involves understanding customer behavior, interests, the LEGO Group combines traditional metrics — sales,
Loyalty programs are an essential marketing tool for credit card as a credit toward the transaction amount, online or at point
companies. These programs allow customers to earn points for of sale, immediately reducing the customer’s out-of-pocket
each dollar spent, which can then be redeemed for expenses.
various rewards such as travel, merchandise, or cash back.
However, simply earning points is not enough to keep customers Paying with loyalty points provides customers with a direct
engaged and loyal to a particular credit card. In most cases, benefit that is more tangible than simply accumulating points
they are looking for more. Paying with loyalty points offers an for future use. This benefit is more apparent to customers when
effective way to elevate credit card loyalty programs and in- they can apply their loyalty points toward a transaction and see
crease customer engagement. the reduction in out-of-pocket expenses immediately.
This tangible benefit can also increase customer loyalty, as
customers are more likely to continue using their credit card
How you may ask? to earn more points toward future rewards.
The mechanics of paying with loyalty points involve the re- Furthermore, paying with loyalty points can also be an effective
demption of points toward a transaction, in lieu of a traditional way to increase customer retention. By providing customers
payment method. This redemption process is usually conducted with a direct benefit that is more valuable than simply earning
through the credit card company’s online portal or mobile points, credit card companies can increase the perceived value
application, where customers can view their available points of their loyalty programs. Customers who see the value in the
balance and select the number of points they wish to redeem for program are more likely to continue using their credit card,
a particular transaction. Once redeemed, the points are applied which in turn increases their loyalty and retention.
44
44 Loyalty Management™
Loyalty Management™ || 2023
2023Awards
AwardsEdition
Edition | | loyalty360.org
loyalty360.org
In 2007, one of Canada’s leading movie theater chains — Scene+: Relaunching the Loyalty Program
Cineplex — and one of Canada’s top five banks — Scotiabank
— formed a mutually beneficial partnership to collect and act In 2022, the Scene loyalty program relaunched as Scene+,
on customer data. The joint venture created the Scene loyalty featuring the addition of Empire as a brand partner. The
program, which initially provided rewards for moviegoers and relaunch expanded the program into grocery, liquor, and
helped Cineplex act on data collected from its millions of annual pharmacy spaces. The brand officially transitioned from an
customers. entertainment loyalty program to a full lifestyle program,
adding more retail, travel, and grocery options to the new
As the Scene loyalty program grew, it found a unique position offerings.
within Canada’s loyalty space — its members felt like the
program offered emotional experiences over transactional “A key part of bringing meaning to the ‘+’ in Scene+ was the
discounts. The brand leaned into this identity and built its wide range of benefits,” says Feza. “So, the ‘+’ in Scene+ meant
marketing on creating experiences with loved ones. evolving from an entertainment-only rewards program to an
all-encompassing lifestyle rewards program.”
By continuing to build brand relationships and partnerships,
Scene underwent a large brand identity transition, expanding While Scene+ has experienced positive engagement and
its offering from entertainment to dining to travel to retail to — growth through its relaunch, the transition is still ongoing. As a
most recently — grocery. With the addition of Empire, Canada’s result, the Scene+ team looks to brand awareness, familiarity,
second largest grocer, as a brand partner, Scene relaunched and member satisfaction to determine the success of the new
its program as Scene+. Currently, the Scene+ loyalty program program.
serves over 13 million members, allowing them to customize
how, when, and where they use their rewards. With all the recent changes to the program, the brand focuses
its communication on helping members understand and use
Mark Johnson, CEO of Loyalty360, spoke with Elizabeth their perks and benefits. Especially following the addition
McNeil, the Director of Partnerships, and Aiman Feza, Senior of new industries like grocery, the Scene+ team wants users
Manager of Brand Communications at Scene+, about the to take full advantage of the rewards available and uses
relaunch of the loyalty program, the brand’s focus on using the feedback gathered from member communications and
customer data to personalize its offerings, and how it develops engagement as KPIs for the program.
meaningful partnerships.
“Right now, we’re still going through rapid growth and transition,”
says Feza. “We’ve also recorded significant growth across all
regions in brand awareness, membership, and usage frequency.”
“At the root of who we are is the knowledge that we can always
do better, that we can grow and find new ways of working, and
technology enables that,” says McNeil. “We’re looking at some
exciting new features in the coming months that are going to
allow us to keep on that growth trajectory.”
In today’s competitive business environment, customer retention Many studies show that building emotional loyalty is key to
is paramount. While companies use various strategies to engage increasing retention, and subsequently, revenue: Capgemini
customers, emotional loyalty emerges as a standout factor. When research, for example, found that emotional engagement with
brands manage to build emotional connections with their consumers, consumers can drive up to a 5% uplift in annual revenue.
they become not just repeat shoppers, but brand advocates who
will stick around for the long term.
The psychology behind customer loyalty
But too many brands still mistake loyalty as a side project, offering
generic earn and burn programs without taking into account Understanding the psychological drivers behind consumers’
their customers’ needs. Ultimately, loyalty is not about points. purchasing decisions is key for brands looking to cultivate
Loyalty is about building an emotional bond with your customer connections that resonate with their emotions and values. The
that engineers a repeat purchase. In this article, we will explore following three popular consumer psychology theories can help
how you can drive customer retention and revenue growth by brands establish and enhance emotional connections with their
leveraging the power of emotional loyalty. customers:
1. Need Theory
Why emotional loyalty is gaining momentum
Need Theory suggests that individuals’ actions originate from
Emotional bonds are especially valuable because they will their fundamental needs for achievement, affiliation, and power.
generally continue to work even when financial incentives - such
as promotions or discounts - aren’t available. Loyalty takeaway: With these three fundamental needs in
mind, you can design a loyalty program that builds emotional
Instead of being dependent on pricing factors, emotional loyalty is connections between customers and your brand. For example,
instead usually grounded in customer experience and satisfaction. for customers whose primary need is achievement, incorporat-
Ivan Russo & Ilenia Confente, authors of Customer Loyalty and ing gamified rewards that involve achieving goals can be highly
Supply Chain Management, state that “customer satisfaction leads effective.
to affective commitment, and this emotional attachment is what
influences a customer’s subsequent purchase behaviour.” For customers driven by affiliation, emphasizing collaboration
and a sense of belonging through community rewards can lead to
Forward-looking brands are aware of the broader emotional high engagement. Finally, for those motivated by power, offering
journey their product supports, and leading loyalty programs exclusive rewards tied to a tier can satisfy their need for status
should support and acknowledge the psychological drivers and recognition.
behind that emotional journey.
The Goal Gradient Effect, proposed by American psychologist Clark Forrester research shows that “when a company makes
Hull, suggests that individuals accelerate their actions as they get customers feel appreciated, 76% indicate they’ll keep their
closer to a goal in order to reach it more quickly. In other words, the business with the brand, 80% say they will spend more with
proximity to a target serves as a driving force, motivating people to the brand, and 87% will recommend the brand to friends
move forward. and family members.” Appreciate your members for their
loyalty and reward them for their trust. For example, you can
Loyalty takeaway: By offering incentives or rewards that gain celebrate customers’ milestones by rewarding them on their
greater value as customers approach their goals, you can increase one-year anniversary with your brand or specific purchase
motivation and engagement. As members progress towards the numbers.
next tier or benefit, their level of activity intensifies. This is often
referred to as “tier sprints” or “point sprints” where members strive Use relevant metrics to measure emotional loyalty
to reach a higher tier.
Emotional loyalty is built on a framework of concrete
3. Cognitive Dissonance Theory business goals. Without the right metrics, you’re flying
dark, not knowing if you’re getting value for your loyalty
According to Cognitive Dissonance Theory, the inconsistency investment. This means you need to combine behavioral
between expectations and experience lead to negative emotions loyalty metrics with emotional loyalty KPIs to understand
and regret. This is because humans strive for internal psychological the “why” behind the numbers. The main loyalty metrics that
consistency to function in their day-to-day lives. monitor emotional motivations include:
Loyalty takeaway: Aligning your loyalty program messaging with • Sentiment scores: Determined by lexical analysis of
its features reduces cognitive dissonance and increases loyalty. In customer feedback and reviews, etc.
other words, don’t over promise on your loyalty program benefits,
or customers will harbor negative feelings and may even consider • Customer satisfaction scores: Determined by customized
leaving. surveys and reviews.
Reaching attitudinal commitment relies on triggering certain Emotional loyalty is a powerful factor for customer retention
emotions within your customers. Let’s explore how brands can go and brand growth. If done right, loyalty programs are the
from building transactional to emotional experiences. which means perfect opportunity to build emotional bonds - and consumer
brands are limiting customer engagement. psychology provides a solid framework for building next-level
loyalty schemes.
Make loyal customers your strategic partner
For more insights on building and cementing emotional
A crucial component of emotional loyalty is delivering a memorable connections with customers, read our report: Loyalty
customer experience that goes beyond the typical “earn and burn” psychology: How to build emotional bonds and drive revenue.
approach. Cristina Ziliani and Marco Ieva, authors of Loyalty
Management, state that “by inviting, listening and responding to For more information please visit www.talon.one
customer feedback, retailers can earn the emotional loyalty of their
customers. They feel that the retailer cares about them and their
needs. Such actions place the customer in the role of a strategic
partner.”
Sam Panzer leads loyalty strategy at Talon.One, helping brands assess the business
potential of investing in headless loyalty technology. Sam has been with Talon.One
for 4 years supporting brands like adidas, REI, River Island, Live Nation, and Burger
King to optimize their promotional spend and engineer experiences that drive repeat
purchases, and brings a depth of experience of how the world’s most beloved brands
incentivize and reward users to build an emotional bond.
Prior to Talon.One, Sam built guest engagement strategies with retail real estate
brands like Westfield, Brookfield, and Macerich and worked as an analyst in the
grocery, restaurant, and CPG space.
Partnering with brand clients around the world, Engage People is a Using New Trends to Stand Out in the Loyalty Space
technology supplier that connects loyalty programs with payment
systems and online retailers by allowing program members to pay Because many loyalty programs function similarly, brands
with points directly at checkout. The technology supplier provides face the opportunity to differentiate themselves to stand out
both loyalty management software — Podium — and its payments in this sea of sameness. This does not mean the brand needs
network — Access Plus. to completely leave their current format behind.
Mark Johnson, CEO of Loyalty360, spoke with Jonathan Silver, CEO “It’s about what I can do to make your life more interesting,”
of Engage People, about current and upcoming trends in customer says Silver. “So, we see different forms of payment, digital
loyalty and which trends Engage People expects brands to focus on enhancements to customer contact and experience, and
throughout 2023. getting people hooked into your ecosystem.”
“We’re enabling a lower cost member acquisition without moving or Read the full article here and learn more at
taking away from the value creation they put into creating their own http://www.engagepeople.com/
loyalty program,” says Silver. “It’s incredibly beneficial, especially for
brands who cannot move away from that infrastructure.”
The remarkable success is in part due to Ford’s gathering vital feel like they were still part of the Ford family. Customer loyalty
feedback from program members. The brand uses quantitative and the bond with their dealerships strengthened.
and qualitative benchmarking to make sure every touchpoint
has value to members. “Customers couldn’t go to the dealership, and people were
staying home. We wanted to make sure that our members
“We have very high engagement, and we’re constantly adding were still getting their vehicles serviced,” stresses Catana.
more channels to our program for our members to redeem “Dealerships went to the customer and changed the oil.”
those points and earn points in unique ways,” Catana adds.
The brand recognizes how vital it is to provide convenience to its
loyalty members – especially since customer behavior changed
Emotional Loyalty Is Essential following COVID. Ford evolved alongside its loyal customers, and
that’s why it’s successful.
Ford places a high value on emotional loyalty – which is
connected to trust and communication. Investing in specialized A high value is placed on personalization. For example, remote
training for employees and dealership employees who are on experiences, such as pickup and delivery – plus a mobile service
the front line meeting those members is crucial. Employees where members can schedule an oil change right from their app
understand the benefits of Ford’s loyalty program, and they – are available. Program members can purchase the accessories
know how to treat members “like family” when they engage they want online. They earn and redeem points with a click of a
with them. button.
Consumers Share
Exactly What Will Drive
Their Loyalty in 2023
THE TOP LOYALT Y DRIVERS DECL ARED BY
10,000 GLOBAL CONSUMERS
IKEA Canada
IKEA Canada
Embracing a mission to create a better everyday life for Like Family – The IKEA Family Loyalty Program
people, IKEA Canada has met that goal for over 45 years
through the company’s set of committed values: togetherness, The IKEA Family program is the company’s B2C loyalty
cost consciousness, sustainability, and caring for people and program. Engaged loyalty members are valuable customers –
the planet. By actively listening to customer and co-worker these are the people who love the brand. Enthusiasm for IKEA
feedback, alongside studying customer behavior, the brand Canada is demonstrated not only through deliberate feedback
continues to make home furnishing accessible for a broader but through vital user-generated content (UGC). These are the
customer base. customers who visit the brand more often – they become a part
of the team.
Mark Johnson, CEO of Loyalty360, spoke with Jordan Sequeira,
the Senior Marketing Leader of IKEA Canada, about the “My team’s role is to ensure that our IKEA Family members
importance of engaging the company’s frontline co-workers, feel supported, rewarded, inspired, and valued. If you join the
leveraging a small footprint in a big country, and using the data program, you get access to rewards, discounts, and events as
and insights from loyalty programs to shape strategy. well as different ‘surprise and delight’ moments throughout the
year,” says Sequeira, noting that signing up for the program is
quick and easy.
Committed to Frontline Employees, Brand Values,
and Making Life Better The IKEA Family program provides over 10 benefits to its
loyalty members, including monthly contests, exclusive
IKEA Canada is a vision-based brand and company. For over newsletters, and bonus meals in IKEA Canada’s restaurants.
four decades, the brand has endeavored to create a better Sequeira and his team make growing this robust program a
everyday life for people – especially Canadians. Through a priority in support of the brand’s overall business model.
set of committed values – togetherness, cost consciousness,
sustainability, and caring for people and the planet – the
company seeks to engage both its employees and its customers. Co-worker Engagement – A Tangible Experience
Beyond its full-sized stores, IKEA continues to find ways to
create engagements with customers across Canada. Considering If you’re going to ‘talk the talk,’ you better ‘walk the walk.’ IKEA
its small footprint in relation to market size, IKEA Canada has Canada stresses that caring for people and the planet is a
begun to open new formats – extra small stores focused on city critical value for the brand – one that extends to caring for its
center penetration. One was established in downtown Toronto, people, i.e., its employees.
“Our co-workers are our most valuable asset,” shares Sequeira. focus. It uses relevant customer insights to develop brand
“The more we can empower and support our co-workers – since strategies, platforms, or campaigns.
they’re the ones who serve our loyalty members day-to-day
– the more motivated, collaborative, and effective they are at A customer-centric focus helps the brand design relevant
providing an optimal IKEA experience for our loyalty members solutions for customers. Listening to customers fosters an
and non-loyalty customers.” emotional connection, but IKEA Canada also provides a
tangible, attainable solution. Both are crucial for increasing
This co-worker engagement is a tangible experience. Sequeira’s emotional loyalty. The company excels at balancing short-
team strives to empower and inspire frontline employees term practicality and long-term emotional brand-building.
through knowledge and training. Co-workers are presented “Provide value, emotional relevance, and content relevance
with the benefits of engagement through events, contests, and driven by customer insights,” Sequeira encourages. “Think
more. In turn, co-workers bring that experience to life for the about how you can set yourself up for success by tapping into
brand’s loyalty members. the insights a loyalty program can provide.”
Loyalty360 spoke with supplier members and loyalty strategy experts With a range of B2B loyalty programs to consider, businesses
about best practices on building meaningful B2B loyalty programs. must work to shape how it translates for their customers.
Employees can be rewarded through B2B customer loyalty Panosian highlights personalized experiences as a way to earn
programs, too. With shrinking budgets in a tough economic customer trust and receive their business in return. “Offer
climate, benefits can be extended to employees to strengthen them experiences tailored to their interests and preferences.
relationships and encourage enthusiasm, buy-in, and loyalty to Recognize their individual priorities and show them you care
the employer. Lacek’s Olliff notes that he sees value in building about who they are. Make sure your program is fun! Include fun
a structural component into the core rewards that make them activities in your loyalty program that will get your customers
sharable. excited and engaged. When you create a positive emotional
experience, your customers are more likely to keep coming
“This allows the business to share rewards earned through back.”
program engagement with employees or clients,” says Lacek’s
Olliff. “In the current labor market, employee retention and Silver also notes that B2B brands and loyalty programs
recognition are a major concern, but many businesses have a can build emotional connections through enhanced
limited budget for this. By creating a loyalty program reward product offerings. Tapping into customer feedback through
that can be passed on from the business to the employee, the questionnaires or research can point brands to what works
program is showing that they care about the business as a best. Applying those findings to the program and modifying
whole not just the part that interacts with the program.” them as necessary can evolve the program.
Building emotional loyalty is an ongoing process. Businesses “Successful B2B loyalty programs are always learning and
understand the need to cultivate emotional loyalty with their making necessary adjustments to their loyalty programs to
customers, but they don’t always know how to successfully meet the current and future needs of their clients,” says Silver.
do it. One way is through corporate social responsibility
(CSR) initiatives and demonstrating a commitment to
sustainability efforts. Business Mindsets Can Be a Challenge and Can Be Changed
“B2B loyalty programs are great tools to engage and retain Loyalty programs must evolve to succeed, and while many
clients, however, these programs need to focus less on businesses know this, they don’t always act if they do not
transactional elements and more on emotional elements by perceive a problem with the status quo. If it’s not a sharp
demonstrating trust, appreciation, reliability, investment, pain point, programs can be left to languish — at worst — or
empathy, and shared values,” says Bindu Gupta, ICF Next. meander with no thought to innovation or elevation at best.
“Three key mindsets are restricting the capability of today’s B2B Engage People’s Silver offers insight into building out a program
incentive and loyalty programs: inertia, one-size-fits-all, and set that combats the “one-size-fits-all” mentality. For him, rewards
it and forget it,” says Brandmovers’ Galloway. “Overcoming each that are not individual in delivery but corporate in scope need
of these limitations requires bravery and buy-in from senior to be designed to motivate clients and customers based on the
management, and that isn’t easy to get. ‘If it ain’t broke, don’t relationship.
fix it.’ Our clients tell us that everyone in the workforce has too
much on their plate. To break these ingrained mindsets, business “Brands can utilize surveys and customer research to
people need to understand what they stand to gain by making determine how best to motivate a B2B partner to either spend
these complex changes.” more with your business, get referrals, give you the insights you
need to improve, help drive innovation, and ultimately increase
Galloway goes on to explain three areas in which businesses — revenues. Offering enhanced product offers can also help
and loyalty professionals — can implement change, beginning increase loyalty,” adds Silver.
with recognizing the limitations of transactional programs.
When the rewards are no longer enough, or a competitor makes
a better offer, the benefit/loss calculation is easy for customers The Changing B2B Loyalty Landscape
to understand. The next is to “stop racing to the bottom.”
Increasing reward spend can reduce ROI. Once again, if the In the last two to three years, brand approaches to B2B
program is merely transactional, customers might eventually be customer loyalty have changed as the B2B loyalty landscape
lured away. Build a relationship with them by offering true value evolved. Loyalty professionals are transferring what they’ve
and giving them what they need to succeed. learned from established customer loyalty programs and
applying what has made them successful in B2B programs.
“A ‘one-size-fits-all’ perspective of programs fits nobody,” asserts Additionally, mid-market companies are joining the B2B space
Galloway when driving home to the third area where businesses and making an impact.
need to adjust their mindsets. “Programs should be tiering rules
structures, recognize their best members’ behaviors beyond “We have found more brands are offering B2B loyalty
transactions, and use segmentation to identify where strategies programs with brands like Home Depot (not a client) and
and rules need to vary to best serve members.” home improvement stores offering tiered loyalty programs
For brands looking to improve their B2B customer loyalty Silver brings it back to developing strategic partnerships and
programs and strategies, prioritizing research — through studies, defining the types of partnerships in place. “What do you want
collecting customer feedback, etc., developing clear program to achieve? Assess where you are today in those relationships
goals, and creating strategic partnerships to build on benefits and and then develop campaigns/programs and partnerships
rewards could deliver early wins. Continue to track any changes that can help deliver your objectives. Track performance
or initiatives to ensure the impact on the program is positive and and highlight the positive impact with your B2B partner
moves the brand closer to meeting its objectives. then adjust as necessary. Always seek feedback and use the
feedback to innovate and improve your current program. This
“Whether a brand is starting a new B2B customer loyalty will help create not only the desired results but also a long-
program or looking to improve an existing program, the key term and happy client/partner.”
to delivering a loyalty program that provides meaningful
benefits to customers and drives engagement is understanding
what will resonate best with them. This could take the form
Let’s be honest: running effective and successful marketing in To know more about your customers’ needs, you can conduct
a recession is not a walk in the park. The competition is fierce, call center analytics and get insights from it. This is the process
customers are more insightful than ever before, and budgets of collecting and analyzing call center data to improve customer
are often limited. experience, agent performance, customer service, and
operational efficiency.
There is, however, one specific strategy that can help steer your
marketing efforts in the right direction: value-based marketing. Earlier, we mentioned that value-based marketing differs from
values-based marketing. The latter, in fact, focuses on tapping
Not to be confused with values-based marketing (we will soon into customers’ moral values, beliefs, and interests to promote a
explain what this means, too), value-based marketing is rapidly brand.
coming to the fore as the best way to attract customers, retain
their loyalty, and boost profits. Think about, for example, brand activism that sparks conver-
sations and real action in fields such as climate change, social
Are you curious to find out more about this marketing approach justice, inclusivity and diversity, and more.
and how to use it to scale your business? Then, our guide right
here is exactly what you need. While this type of marketing is also becoming increasingly more
prominent across companies, big and small, as part of an inte-
grated marketing strategy, it’s different from the value-based
What is Value-Based Marketing? marketing we are discussing today.
Also known as customer-centric marketing, value-based marketing So, what can companies achieve through a value-based approach
is a new approach to marketing that prioritizes offering unique, in marketing? Let’s find out some of the most impressive and
genuine, and exceptional value to the end customer. widely reported benefits.
As we briefly mentioned earlier, a value-based marketing strategy The bottom line? They will be more likely to stick around for
allows companies to boost customer retention—but why and how the long haul. One of the best—and most entertaining—ways to
does this happen in practice? fuel all this is by taking your customers on a journey behind the
scenes of your brand.
Well, consider this. If a customer feels that you know them well
and genuinely want to provide them with what they want or need, Regardless of what you sell—whether it’s physical products or
they will be more drawn to choose you instead of one of your services, there are many ways you can give your customers a
competitors. sneak peek into what goes on at your company and what enables
you to craft the products or services they love.
But you need, of course, to show them that you have their best
interests at heart. You can do this in a few rather simple ways. To achieve this, you can use a combination of marketing assets
that include:
For example, you could create personalized product recommen-
dation quizzes, fun polls, and surveys, or even launch a playful • Live videos
challenge on social media. • Educational and informative videos
• Interactive web content
The name of the game—quite literally—is engagement, though • Visually-appealing infographics
remember that your ultimate goal is to always offer real value, not • Social media stories and reels
just a few laughs.
Remember, though, your top priority is always to provide the
most value through each asset you produce and share.
It Fosters Solid, Sustainable, and Future-Ready
Business Growth
Leverage Storytelling to Generate Emotions
Are you looking to expand and thrive in an increasingly unreliable,
uncertain, and complex marketplace? Wondering how to scale It’s no surprise that storytelling and marketing go so well
your business? Then, you should know that standard marketing together. Telling a relatable, authentic, and captivating story has
tactics will no longer be sufficient. the potential to entice your audience to check out your brand
and, ultimately, buy your products or services.
Enter value-based marketing. Not only will this marketing
approach hugely support your customer-facing efforts, but it will The main reason behind this is that storytelling fulfills our
enable your business to keep growing sustainably in the future. human need for connection, emotion, and social relationships.
All this will help you connect more deeply and authentically
with your audience, which in turn will allow your value to shine
through in a much clearer and more detailed way.
As a result, you’ll find that more and more people become inter-
ested in your brand and buying from you instead of a competitor.
About Jebbit
In today’s ever-changing customer loyalty landscape, brands are not act on that data. For example, Erlichman cites
seeking to revamp or enhance their loyalty efforts, while better demographic data like age as one element brands ask for
understanding their customers. Jebbit, a SaaS platform specializes but do not use.
in interactive consumer engagements, such as personality
quizzes, trivia, interactive look books, and product matching to “Brands need to focus on the 2-3 things they can activate to
power zero-party data collection. affect the customer journey, what brands send them, or how
brands personalize the experience,” says Erlichman.
Following the 2022 State of Customer Loyalty Report, Loyalty360
found that many brands seek to completely redo or enhance their As brands look to integrate zero-party data into their
customer loyalty programs in 2023. As brands look to make these customer loyalty and personalization efforts, they must
changes, Jebbit provides insights into the value of zero-party data determine what value they will provide their members in
and how to implement it into the program to provide meaningful exchange for the information. Acting on data lets customers
personalization. know the brand is actually listening to them, which builds
trust and encourages the members to continue engaging.
Mark Johnson, CEO of Loyalty360, spoke with Pam Erlichman,
Chief Evangelist Officer of Jebbit, about how to effectively collect “Up front, to even get them to engage, what value are you
and use zero-party data, how brands should think about customer giving the consumer in return for their data?” says Erlichman.
loyalty, and how to integrate new trends and technologies into their “We talk with our clients about forms of genuine value that
loyalty programs. create that mutual value exchange to encourage the
consumer to give you that data in the first place.”
Adding Customer Value to Zero-Party Data Read the full article here and learn more at
http:/www.jebbit.com
When it comes to zero-party data, many brands ask for information
but don’t effectively use it. Historically, many brands have a pattern
of asking for any and all information they can think of but then do
• Loyalty360 Digital Roundtable: Trends from the 2023 Loyalty Expo – 6/22/23