Customer Insight Group Loyalty Blog

It was just a few decades ago that customer loyalty practically felt tangible. Customers knew the names of their local business owners by name and felt an affinity for them and their goods and services. Today’s retail landscape is not quite so straightforward.

Branding, social media, online presence, a challenging economy and a competition-filled marketplace make it even more difficult for companies today to grow and keep loyal customers. So how do we define loyalty today? What affects today’s shoppers’ purchasing decisions? Customer service? Price? Discounts? You might be surprised at how loyalty today has evolved. Its likely that when you look at your own customers over the course of time how your definition of them may have changed.

Did You Know?

Less than 50% of shoppers in 2010 reported purchasing the brand they had once been loyal

70% of customers say poor service sent them elsewhere, not price

The percentage of brand loyal shoppers has steadily decreased over the last two years

So what tactics have you employed to ensure that you understand your customer better and are relevant to their needs? To help you get your arms around this idea, Customer Insight Group has developed an informative white paper titled “Does Loyalty Really Exist?” Key takeaways include:

• The core principles of loyalty
• How to best inspire true customer loyalty
• Best practice case studies of major retailers

To download this and other free white papers on how to engage, keep and grow your customer relationships, visit www.customerinsightgroup.com/white-papers.

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Consumers have a lot of choices these days.   So many, in fact, that it can be easy to become overwhelmed and indifferent to all the screaming advertisers do to get their attention. Only thing is — screaming is not going to gain you customer trust. Relevancy will.

Essentially, consumers feel that they’re drowning in information and choices. And not all of them feel compelled to educate themselves about the differences between all those choices. Pair that with the dwindling trust consumers feel for brands, as they always feel they are being “sold to”. This sentiment is the very reason why social media has become so popular and has provided an outlet for brands to connect with customers in a less traditional and more genuine way. Even if social media is not a main part of your customer relationship strategy yet, understanding your customer is  the key to customer loyalty and long-term success.

Did You Know?

95% of consumers don’t trust advertising

54% feel that companies are only interested in selling products and services, not whether the product or service is right for the individual

16% feel that companies are genuinely interested in them

23% think that companies do not listen to consumers and their needs

So what tactics have you employed to ensure that you understand your customer better and are relevant to their needs? To help you get your arms around this idea, Customer Insight Group has developed an informative white paper titled “Customer Knowledge as the Wellspring of Innovation.” Key takeaways include:

• Steps retailers must take to engage customers
• The five basic questions you must answer first about your customers
• The necessary information required to develop a holistic customer relationship
• Real-world success stories

To download this and other free white papers on how to engage, keep and grow your customer relationships, visit www.customerinsightgroup.com/white-papers.

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Now consumers have a little less to complain about at the pump and a whole lot more to celebrate, thanks to Shopkick and its new partnership with  ExxonMobil.

Shopkick, the largest location-based shopping app that rewards shoppers simply for walking into stores and interacting with products, has partnered with ExxonMobil and will be pumping out rewards at more than 375 Exxon or Mobil branded-retail locations in and around Miami, New York City and Washington D.C. in a pilot program designed to help Exxon- and Mobil-branded retailers strengthen consumer loyalty by enhancing the shopping experience. ExxonMobil joins more than 11 national retailers and 40 major brand partners in Shopkick’s distinctive cross-retailer rewards program including, Target, Kraft, Best Buy, Procter & Gamble and American Eagle. Rewards – called kicks – can be earned and used with participating retailers.

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These days, understanding your customer goes far beyond crafting an ideal demographic profile. It demands that as brands we connect with our customers on new more personal levels.   

Customer centricity demands that a company understand the individual needs and improves the customer experience thereby creating sustainable and profitable customer relationships that become impermeable to the competition. In other words, being customer centric may very well be the way to customer loyalty.

It may feel counter-intuitive to a long-time marketer, but being customer centric means that you have to stop focusing on the customer’s wallet and start thinking about the customer himself. That’s not an easy task for many. But, you have to admit, the better you know your customers — what they like, dislike, need and want — then the better armed you are to differentiate yourself from the competition and connect on both a logical and emotional level. Both of which are imperative to long-term loyalty.

One of several characteristics of a customer-centric business, is that they see themselves not as a group of products, services, territories or functions, but instead as a portfolio of customers. This shift in perspective is key to becoming customer centric. To help you learn all the traits of customer-centric companies, along with a look at best practices by some successful retailers today who are driving profits and loyalty through a customer-centric approach, Customer Insight Group has developed an informative white paper titled “Customer Centric White Paper.” Key takeaways include:

• Successful customer-centric retail snapshots
• The challenges of becoming customer centric
• The right kind of accurate data to mine in order to support your approach
• Customer-centric action items

To download this and other free white papers on how to engage, keep and grow your customer relationships, visit www.customerinsightgroup.com/white-papers.

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Sometimes it’s good to start fresh with your loyalty program — just ask Columbus, OH-based apparel retailer Express Inc. which just launched their new loyalty program, Express Next. The biggest change from their old program? Now consumers who do not hold the company’s proprietary credit card can participate.

Express Next is points based. Participants earn 10 points for every dollar spent at the store regardless of payment method, although those using the company’s credit card receive a 50% point bonus. Every 2500 points earned can be redeemed for reward certificates – $10 for non-credit card holders, and $15 for credit card holders. High-value customers are eligible for the premium “A List” tier.

The new program’s design incorporates focus-group and interview feedback from Express customers, says senior VP of marketing Jim Wright. “Our 20-something customer base want it to be simple and engaging,” he says. “They want to be rewarded for how they spend with the brand as well as how they interact with the brand.”

Under Express Next, members can earn rewards for a variety of non-purchase interactions, such as following one of the company’s Twitter accounts, re-tweeting its tweets, reviewing products, electing to receive mobile alerts and choosing paperless means of managing their accounts.

The new program allows customers to access their account at the point of sale through their phone numbers or email addresses.

Members are given exclusive access or first dibs on events, behind the scenes videos and other engagement opportunities. Express Next rewards shoppers for digitally announcing their presence at a store. Participants earn points for checking in at a store’s sales counter. While the check-in system is currently proprietary, it may expand to include location-based marketing services such as Foursquare.

The new program debuted in a late 2011 pilot effort within 91 of its 550+ stores. The company didn’t make many modifications between the pilot and the full rollout: The test phase served more to prove the concept.

Which it did: While Wright didn’t offer specific figures, he said the test groups showed increases in the number of visits and amount they spent. Signup rates, he adds, were 10%-20% higher than what the company had anticipated.

Separate from the pilot locations, Express was tasked with transitioning members of its previous credit card-based program into the new scheme. The old program has been discontinued.

“We wanted to engage them after a clean break with a fresh start, and not confuse how the two programs work,” Wright says. “We tried to make it very easy for them. We sent them information telling them the previous program was ending, and gave them time to either cash in previous rewards or earn up to get to the next level.”

Participants in the original program were given an opportunity to enroll in the new program easily: Their information was transitioned into new accounts, and activation of these accounts required only that they log on, opt in and add a few final pieces of data. This process is ongoing, and the company is making a big push this month to spur legacy enrollment.

Separately, it is soliciting new members through its in-house database via text messaging, direct mail and email. It is also reaching out to its 2 million Facebook fans, and promoting the program through in-store signage.

Express Next will evolve with time, Wright says. “For the program to have legs, it cannot be a static program that rolls out only one way,” he says. Future innovations might include special merchandise received for members who actively promote or purchase specific lines of products. And it will use the information it gleans from the program to further customize its communications with members.

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National Car Rental, celebrated the 25th anniversary of its Emerald Club, the car rental industry’s first frequent renter program. The Emerald Club launched on St. Patrick’s Day in 1987. Throughout March, National’s Facebook fans participated in the celebration by submitting their favorite memories of 1987 — via anecdotes, photos or video — for the chance to win a $25 gift card in its “Blast from the Past” sweepstakes.

“Twenty-five years ago, National revolutionized our industry by introducing the first frequent renter program. Today, road warriors choose National for business rentals because we provide their easiest travel transaction of the day,” said Rob Connors, assistant vice president of marketing for National Car Rental. “We relentlessly pursue our goal to make the rental experience faster, more convenient and more streamlined for our valued Emerald Club members. That’s why our membership grows each year.”

Today, Emerald Club’s members enjoy an expedited rental process with counter bypass as well as Drop &Go service with convenient e-receipts. The Emerald Club program also provides electronic “Arrival Alerts” and access to National’s “Emerald Aisle,” an exclusive section of the lot where members can select any vehicle as long as they reserve a mid-size car; members only pay the mid-size rate, even if they choose a larger-class vehicle. National offers customers 63 Emerald Aisle locations in the United States and Canada, including the top 50 airports for business travel.

“Vehicle choice, premium service and valuable frequent-renter rewards keep me coming back to National Car Rental again and again,” said Buzz Doering, President, Buzz Doering Consulting, a 25-year charter member of the Emerald Club.

In February, National celebrated an equally important milestone – achieving the highest 12-month total NSQI (National Service Quality Index) score in the brand’s history. Customer service scores are tabulated and tracked every month for the National brand. The NSQI score is based on customer feedback about the quality of customer service experience.

National earned the “Leading Edge Award” from Executive Travel magazine, recognizing the brand as the top rental car service in the travel industry in 2011. In addition, the Emerald Club was honored as the 2010 and 2011 Best Rental Car Loyalty Program in the annual Editors’ Choice Awards by SmarterTravel, the largest online source of independent expert advice for the budget-conscious traveler. National received the honor in recognition of the brand’s “Emerald Aisle” service and numerous other customer benefits, including expedited rentals.

Has your loyalty program endured as long as National’s? Maybe it’s time to refresh your program and keep it relevant to your loyal followers. Let Customer Insight Group show you how.

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According to the 2012 Temkin Loyalty Ratings, Sam’s Club claims the number one spot with the most loyal customers, with a loyalty rating of 65%. Temkin Loyalty Ratings are based on consumer feedback of companies with whom they’ve recently interacted. Consumers rate three elements of their loyalty: willingness to buy more, reluctance to switch business away and likelihood to recommend.

Here’s how the top ten rankings rounded out, along with their loyalty ranking percentage:

1. Sam’s Club, retailer – 65%

2. Aldi, grocery chain – 64%

3. USAA, bank – 63%

4. Publix, grocery chain – 62%

5. Amazon.com, retailer – 61%

5. A credit union, bank – 61%

7. H.E.B., grocery chain – 60%

8. Target, retailer – 59%

8. Chick-fil-A, fast food chain – 59%

8. Starbucks, fast food chain – 59%

Satisfied with your loyal customer base? If you’d like to make improvements in engaging and growing your loyal customers, Customer Insight Group can help.

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Caesars Entertainment celebrates the expansion of Total Rewards, one of the country’s most prominent entertainment loyalty programs, with “Escape to Total Rewards”, their largest promotion in the company’s history. Aimed at demonstrating the breadth and depth of the loyalty program’s network of offerings and experiences, “Escape to Total Rewards” further illustrates the value of the loyalty program for entertainment-seekers beyond the traditional gamer. The promotion kicked off with simultaneous multi-city concerts featuring top acts, including: Cee Lo Green, Mariah Carey, Maroon 5, P. Diddy and Gavin DeGraw.

“Total Rewards has long been considered the standard-bearer for loyalty programs within the gaming industry,” said Gary Loveman, CEO and President of Caesars Entertainment. “However, our business has grown to encapsulate so much more than gaming; every single one of our nearly 40 resorts across the country, provides a 360-degree entertainment experience. This next generation of the Total Rewards program seeks to expand the customer experience by providing additional ways for our members to earn points both on and off property. Total Rewards is no longer just a gaming loyalty program; whether traveling for business or pleasure, playing or simply staying, all of our guests will find value and benefit in a Total Rewards membership.”

New Look. New Rewards.

Total Rewards unveiled its sleek new look and feel on March 1, capturing the energy and excitement of its global network of offerings and experience, and inviting new and existing Total Rewards members to enjoy the enhanced global network of entertainment experiences.

For the next 90 days, Total Rewards members will have countless chances to win more than 90,000 prizes through the “Escape to Total Rewards” game. In addition, one lucky winner will receive a once-in-a-lifetime, all-expense paid trip to Caesars Palace in Las Vegas. The winner and seven guests will be sent to Sin City in true VIP style aboard a personal charter jet from XOJET, one of the world’s fastest-growing private aviation companies.

More Ways to Earn

Targeting a broader, more diversified customer base, the expanded Total Rewards program provides a greater return to the leisure traveler who prefers the dining, entertainment, retail and spa amenities of a Total Rewards resort. For leisure activities such as shopping, dining or accommodations, members will earn one Reward Credit for every dollar spent. Reward Credits are the balance of a Total Rewards member’s account and can be used to enjoy a variety of complimentary services and experiences.

In addition to creating greater value for the leisure traveler, Total Rewards also recognizes and rewards meetings planners and business travelers for their engagement with the program. Planners booking meetings or events at a Total Rewards resort may also earn Reward Credits – one credit for every dollar spent – that may be redeemed for either personal use or placed toward a future meeting or event.

Now members who engage with a Total Rewards Las Vegas resort through social media channels will earn Reward Credits through Social Rewards. Social Rewards is an extension of the loyalty program that encourages members to interact with Total Rewards, or property brand such as Caesars Palace or Planet Hollywood Resort & Casino. Sharing and check-in activities through Facebook, Twitter, YouTube and Foursquare are all rewarded through the program. Plans to extend Social Rewards earning beyond Total Rewards Las Vegas resorts will take place later this year.

More Perks

As current members now have even more ways to earn rewards, they will also find many new ways to experience these benefits.

• Members will now be able to redeem their Reward Credits for free play. Elite members also have the ability to gift up to 5,000 Reward Credits to friends or family members, up to twice per year.
• Total Rewards members will receive preferred pricing at restaurants across the network. Participating restaurants will have two sets of menu prices—full price for anyone who chooses to dine at the restaurant and a lower price available exclusively to Total Rewards members.
• Discounts at on-property retailers will be enhanced through the new Total Rewards. Every member will receive at least the same 10% discount that Total Rewards members have always enjoyed, but more engaged members will receive discounts of up to 25% on all purchases at Caesars’ retail outlets.
• Members will now be able to redeem their Reward Credits for gift certificates at several hundred retailers participating in the Total Rewards Marketplace. These gift certificates can be used for online purchases, or they may be printed out and used at the retailer’s local brick-and-mortar locations. This unique feature of the Total Rewards Marketplace makes Total Rewards more relevant and valuable in members’ everyday lives.
• Members will have pre-sale access to show tickets for many of the top-tier entertainers that perform across the network of Total Rewards casinos and resorts.

Ready to take your loyalty program to the next level? Start with a loyalty audit from Customer Insight Group to see where the opportunities for program growth may be waiting.

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 Look what’s happening at Bloomies. The long-standing retailer jumps into the hunt for loyal customers with their latest program, Loyallist, where it touts, “points are a shopper’s best friend.”  Customers earn points for every dollar, every time they shop, regardless of how they pay or where they purchase – online, in-store or at Blooomingdale’s outlet stores.

Credit customers earn more. Bloomingdale’s credit card holders are automatically enrolled and earn three points for every dollar spent at any Bloomingdales location, online or outlet store. Bloomingdale’s Reserve Card and the Reserve American Express Card earn four points for every dollar spent.

Beautiful deal. Customers earn double points on cosmetics and fragrances.

How rewarding is it? When a customer reaches 5,000 points, they earn a $25 reward card, redeemable on all merchandise.  That’s right any merchandise online or in-store. If a customer reaches their 5000 points while shopping in store, they will be handed their reward card right on the spot. If they reach it while shopping online, they are emails their reward. Reward cards expire after 180 days from issuance.

What happened to Insider? Looks like the new Loyallist program is replacing the former credit-based Insider program. According to their FAQs, Insider points are converted to the new program at the end of February. Insider had some similarities in program structure, with customers receiving a $25 reward certificate once they earned 2500 points.

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