500FRIENDS BLOG
Loyalty trends & best practices

Single Objective vs. Multi-Objective Loyalty Programs

by Julia Leyrer
November 20, 2015
Single Objective vs. Multi-Objective Loyalty Programs

When it comes to providing initiatives to existing and prospective customers with objectives such as increasing customer retention and acquisition, there are two main approaches that are taken with promotions: single objective and multi-objective approaches. Although each provide a valued initiative to influence a certain customer action, they differ in how customers engage over time and how they’re structured within the business. Below, I address the differences between the two, and when to know which approach to take. Single objective. As it sounds, single objective approaches are loyalty initiatives that are created around a single objective in mind. This may be retention of at-risk customers through rebates, referrals of new customers with gift certificates, or the addition of benefits to increase overall customer satisfaction. This is commonly seen in the television network industry where... Read more

Managing a Multi-brand Loyalty Program: How to account for points usage behavior between brands

by Arif Damji
November 06, 2015
Managing a Multi-brand Loyalty Program: How to account for points usage behavior between brands

In the retail vertical, we see an increasing number of brands that are launching multi-brand loyalty currencies. This has been widespread in the travel vertical with the franchise model for hotels, but the growth of such programs in retail begs the question of how to best account for the differential in earn and redeem behaviour. Simply put, you cannot expect that a member’s earn behaviour will proportionally map to their claims with each brand, and instead, there is likely to be an increased claim rate with brands that have a wider set of rewards or more generous rewards. If left unaccounted for, this can lead to an unfair detrimental impact of the program upon the income statement of one or more brands. Optimize for beneficial cross brand redemption. Cross brand redemption is defined as where points that are earned with one brand are used with anothe... Read more

Loyalty for Luxury Brands

by Arif Damji
October 19, 2015
Loyalty for Luxury Brands

Over the last year, there has been a migration of luxury brands towards launching loyalty based programs. This, on our side, has meant a number of conversations with high-end brands interested in starting or restarting a loyalty program, often with the intention of moving customers to their direct channel and retaining more of their best customers. However, many remain concerned that a loyalty will “cheapen” their brand to their most discerning customers. I’m reminded of a conversation with the CEO of an online jeweler retailer who proclaimed, “Why should my customers collect points? They collect fine jewelry.” This fear and concern is of course valid, and in a world of declining loyalty program participation, high spending consumers are the first to lose interest in loyalty programs. So, should a luxury brand even look through the looking glass at a world of loyalty? The answer is a resounding YES, especially as many h... Read more

[Webinar Series] Differentiate and Personalize Your Loyalty Program to Drive Engagement

by Julia Leyrer
May 14, 2015
[Webinar Series] Differentiate and Personalize Your Loyalty Program to Drive Engagement

We are excited to keep the momentum going with our latest webinar series "Going Beyond Just Points: How your Loyalty Program Can Drive Actionable Insights" where we will discuss how to leverage loyalty data in customer identification, engagement, and acquisition. The 2nd webinar in this 3-part series, "Differentiate And Personalize Your Loyalty Program To Drive Engagement", will be presented by Justin Yoshimura, Co-Founder/CEO, 500friends, a Merkle Company and Samanth Ngo, Researcher, Customer Insights, Forrester Research on Thursday May 28 at 10:00 PDT / 1:00 EDT. Many customers are treated as if they're one and the same although there is so much customer information available to us. This approach of not engaging with customers on a more personal level can be detrimental to your customer relationships, which are vital to your success and competitive.... Read more

[Webinar Series] Increase Matchback Rates Through Customer Identification

by Julia Leyrer
May 14, 2015
[Webinar Series] Increase Matchback Rates Through Customer Identification

We are excited to present our latest webinar series "Going Beyond Just Points: How your Loyalty Program Can Drive Actionable Insights" where we will explore how to leverage loyalty data in customer identification, engagement, and acquisition. The 1st webinar in this 3-part series, "Increase Matchback Rates Through Customer Identification", will be presented by Arif Damji, Senior Director of Strategy and Development, 500friends, a Merkle Company on Thursday May 21 at 10:00 PDT / 1:00 EDT. Large numbers of customer identities are currently unknown and brands struggle with linking together customer purchases, LTVs, and preference trends. Without the knowledge and understanding of who your customers are, you are missing out on a huge opportunity to drive customer satisfaction, enhance relevancy of messaging and offers, and increase order frequency and value. Loyalty data is th... Read more

Many Loyalty Programs Arent Realizing Their Potential

by Julia Leyrer
March 20, 2015
Many Loyalty Programs Arent Realizing Their Potential

Originally posted on Merkle's Retail blog: While there are now more than 3.3 billion loyalty program memberships in the U.S., only half of enrolled consumers are active. Why is that? Since the purpose of a loyalty program is to influence consumer behavior, companies need to plan and execute their programs very strategically and wisely to achieve the goals they want. Among the growing selective member base, this is where many leading organizations may fall behind. Make sure to think about providing a “fair exchange of value” – I’ll give you my personal contact information if you deliver additional value – as the consumer strategy upon which all loyalty programs are developed. Creating an ecosystem of engaging content, enticing brand experiences, and preferential valuable services that go beyond the core product or service is where loyalty programs can have a huge impact. Points are a tactic, app… Read more

Keeping Up With Todays Loyalty Demands

by Julia Leyrer
March 05, 2015
Keeping Up With Todays Loyalty Demands

Originally posted on IBM's Smarter Commerce blog: Loyalty marketing is more and more prominent in today’s retail landscape. It is becoming common knowledge that customer acquisition costs are increasingly rising, and data-driven customer retention is a key area filled with untapped growth potential. But loyalty marketing is evolving and is more intricate than just offering discounts to existing customers. As many marketers realize, there are three common problems that they run into when trying to implement an effective loyalty program: 1. They often feel stuck offering dollars-off discounts and are losing their margins without sustainably changing their customer behavior. 2. Personalization is not going further than using much more than a first and last name, and is not connecting to the customer and building customer relationships. 3. Their loyalty members are not actively participating and being engaged, and… Read more

SEARCH
SUBSCRIBE

Enter your email address recieve notifications of new posts

ARCHIVES