Effective Integration of Loyalty Programs and eClubs

November 2012

Fishbowl Best Practices Webinar

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Hosted by:

Liz FriscinoOnline Marketing Consultant

Agenda

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• Loyalty Marketing Defined

• eClubs and Loyalty Programs: Similarities and Differences

• Integration and Collaboration

• Summary and Recommendations

D-e-f-i-n-e-d

Marketing

Loyalty Marketing: Beyond the Plastic Card

What Is It?

Loyalty is a feeling of attachment that customers have towards a brand.

Loyalty Marketing focuses on strengthening brand attachment to influence consumer behavior…one member at a time.

Why Do It?

The goal of Loyalty Marketing is to maximize the Lifetime Value of each customer through increased member frequency, spend and retention.

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CARD-BASED LOYALTY PROGRAMS CAN BE A KEY COMPONENT OF A LOYALTY MARKETING STRATEGY

Why The Excitement and Urgency Around Loyalty Cards?

What’s Driving the Interest In Card-based Programs?

• Revenue Potentialo Loyalty club members visit more often, spend more and take greater ownership in the brand

o It costs about 5-10 times more to acquire a new customer than to sell to an existing one

o On average, current customers spend 67% more than new ones

• Market Share Battleso More and more restaurant brands are launching some form of earned reward program and In

the fight for customers, no one wants to fall behind

o A loyal customer has less opportunity to visit competitors

• Success Storieso Airlines, hotels, retailers and restaurants are crediting their loyalty programs for sales growth

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THE QUESTION IS: How Many Consumers Are Willing to Pledge their “Loyalty” to Your Brand?

How Big Is the Pie and How Can You Reach Them?

Consumers at Large

Loyalty Prospects

Potential eClub

Members

Broadcast + PrintBranding and offers sent to a

general audience using mass media

In-store + Email + Social MediaNews, benefits and offers sent to

members, fans and followers

Many are willing to ENGAGE, few are ready to COMMIT

Together…Loyalty Programs and eClubs can provide a bridge across the varying member engagement levels

eClub

eClub

eClubeClub

eClub

eClub

eClub eClubLoyalty

Loyalty

eClubs & Loyalty Card Programs – How Do They Relate?

Shared Member Traits + A Paired Data Opportunity

A fondness for your brand

Interest in News & Events

Medium to Heavy Usage

Desire for rewards & discounts

• Card Number• Check Amount• Points Earned• # of Visits• Lifetime Spend

TRANSACTION DATA

• Email Address• Home store• Birthday• Name• City, State, Zip

DEMOGRAPHIC DATA

eClubs target basic loyalty objectives• Engagement• Transactions• Retention

Triggered offers are designed to

promote program commitment

Common trigger events include:

Welcome, Birthday and Anniversary

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eClub-based Loyalty Marketing

Card-based Loyalty Marketing: 2 Primary Types

Point-based RewardsPoints earned based on spend and

frequency; can include varying levels of rewards based on point level

Push on driving incremental visits and increasing frequency

Surprise & Delight RewardsFocus is on instant ‘win’ and rewards

rather than point accumulation

Heavier emphasis on soft benefits & recognition (event invites, VIP

privileges)

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eClub Only

- No escalating or accumulating rewards

- Limited to demographic data capture

- Maintaining engagement can be difficult

Loyalty Program Only- Limited group of available members

- No benefits without membership

- Most communication directly related to the Loyalty program

- Limited social media reach

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Stand-alone Challenges for eClubs and Loyalty Programs

Integration Model and Program Examples

Digital media used to deliver relevant messaging and

recruit new loyalty members

A Loyalty Program and eClub Working in Tandem

Members swipe loyalty card or redeems eClub

loyalty offer Behavioral and preference data stored for ongoing use

Ongoing mining analysis of data to better target loyalty members eClub segments

The 837 Club: Palm Restaurants

Program At A Glance

Launch Date October 1997

Enrollment Method In restaurant or online

Reward System Points; earn one point for every dollar spent

Member Approach 2-tier: email program and 837 club

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Program IntegrationPalm Mailing List (eClub) 837 Club (Loyalty Program)

Messaging Welcome Message , Update Profile Message, Monthly Newsletter and promotional messages. Monthly messages include 837 only special & push for conversion

837 Club Welcome, Miss You Message (60 days after last transaction), Monthly Newsletter with 837 specials, Promotional Emails

Hard BenefitsFree appetizer on join (select campaigns only)

Birthday lobster certificate; variety of prizes including Palm certificates, gift cards to other vendors (Tiffany & Co, Neiman Marcus), travel excursions

Soft Benefits Event invites, menu specials, exclusive news Periodic special offers, special event invitations

Expiration & Restrictions

N/A Unused points expire 18 months from date of issue; must accumulate 500 lifetime points and have activity 6 months prior to birthday to receive birthday offer

The Bones Club: Smokey Bones

Program At A GlanceLaunch Date August 2009

Enrollment Method Online

Reward System Points; earn one point for every dollar spent

Member Approach 2-tier: email program and Bones Club

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Program IntegrationBones Club Lite (eClub) Bones Club (Loyalty Club)

MessagingWelcome, Birthday and Anniversary, coupons and promotional items. Welcome message includes push for conversion.

Bones Club Welcome, Miss You Message (60, 120 days after last transaction), Rewards Notice, monthly promotional emails and newsletters

Hard Benefits $10 off for Welcome, birthday cake, free dessert

Receive $20 credit for every 200 points earned; free appetizer with enrollment, receive points even when paying with rewards

Soft Benefits Exclusive news, event invitations Bonus point opportunities

Expiration & Restrictions

Coupons expirations vary based on promotion

No expiration

Using Your Website to Build eClub & Loyalty Program Awareness

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Summary and Recommendations

• Every consumer touch point provides an opportunity to deepen the relationship and build customer loyalty.

• Remember…consumers are at different places on the “loyalty” continuum, so be ready to meet them where they are.

• Your eClub already plays a valuable role in your Loyalty Marketing strategy and can provide a natural first-step towards loyalty club membership: • Delivery of basic loyalty rewards (birthday, anniversary, etc.)• Recruitment of new program members and conversion of eClub members

• If you’re considering a card-based loyalty program. Carefully consider the following:• Add-on costs of the program (POP, collateral, cards, rewards and liability for unredeemed points)? • How the program will look in 6 months, 1 year, 3 years (brand and customer perspective)• Resources needed to manage the program and related data today and as it grows

• The most successful eClubs and Loyalty programs are easy to understand, join and use

Questions?

Thanks for your time!

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