The document announces the agenda for the 13th annual COLLOQUY Loyalty Summit, which will bring together inspirational speakers, educational sessions, and MasterClasses to provide solutions to business challenges. Senior executives from companies like Marriott, Walgreens, Pepsi, Caribou Coffee, and Shell will explore the latest advancements in loyalty programs, customer engagement, marketing technologies, and analytics. Keynote speakers will include Daniel Pink, Phil Lempert, and others. The summit will take place in October 2015 near Washington, D.C.
2. 2
JULY/AUG 2015
WWW.COLLOQUY.COM
The 13th annual COLLOQUY Loyalty Summit agenda is available now. It brings together inspirational speakers,
educational sessions and MasterClasses that will provide you with solutions to your business challenges.
Take advantage of intimate networking opportunities with senior-level executives as they explore the latest
advancements in loyalty programs, customer engagement strategies, marketing technologies and analytics.
Caroline Larson
Brewing Up Loyalty With
Caribou Coffee
Dave Zychinski and
Mindy Heintskill
Walgreen's Evolution,
Revolution and
Innovation Within
Balance Rewards
Todd Gulbransen
How Shell Uses Strategic
Partnerships to Rev Up Loyalty
Anna Miriam Lorch
Marriott Rewards:
Finding the Suite Spot
With Gen Y
Phil Lempert
Trending in the Aisles:
5 Must-Haves for
Retail Success
Daniel Pink
To Sell is Human:
The New ABCs of
Moving Others
For sponsorship opportunities please contact Joan Deno at 513-977-2297 or joan.deno@colloquy.com.
www.colloquy.com/summit
Mike Scafidi
Defining Engagement
Loyalty With Pepsi
REGISTER NOW
October 14–16, 2015
Lansdowne Resort Near Washington, D.C.
2015
L OYA LT Y S U M M I T
3. 3
JULY/AUG 2015
WWW.COLLOQUY.COM
[02] EDITOR’S LETTER
[05] NEWS BREAK
Top News Stories
[15] LOYALTY STRATEGIES REDUX
What Loyalty Leaders Are Telling Us
[17] COLLOQUY RECOGNIZES
July/August Winners Announced
[04] LOYALTY LANDSCAPE
25 Loyalty Milestones Infographic
[06] COVER STORY
Celebrate, Contemplate: Loyalty’s
Heavy Hitters on Where We’ve Been,
Where We’re Headed
[ T A B L E O F C O N T E N T S ]
[06]
[15]
[05]
[04]
4. 02
JULY/AUG 2015
WWW.COLLOQUY.COM
[ E D I T O R ’ S L E T T E R ] DENNIS ARMBRUSTER
25 Years and Still Cresting
the Peak of Engagement:
Walgreens, Marriott, Pepsi Join the Loyalty Summit
For most people, what makes a good
day is a hot cup of coffee, a full tank of
gas, a reviving snack and a good night’s
sleep. What makes it a memorable day,
however, is when the sellers of these
products deliver them in ways that
result in emotional connections.
You can learn firsthand how the experts
at Marriott International, Walgreens,
Pepsi, Caribou Coffee and Shell use data
analytics and loyalty to foster customer
intimacy at the 13th annual COLLOQUY
Loyalty Summit. They will join several
other industry leaders at the three-day
event, Oct. 14 to 16, offering insights on
how to capture share of wallet by first
gaining brand affection.
This year is particularly special for us
because it also marks our 25th anniver-
sary. In July 1990, we published our first
magazine and launched what became
the longest-serving go-to resource for
loyalty knowledge, from our publica-
tions to the biennial COLLOQUY Loyalty
Census to the annual Summit.
Among our keynote speakers at the
Summit this year is Daniel Pink,
best-selling author of “Drive,” “To
Sell is Human” and “A Whole New
Mind.” Pink will rewrite the meaning
of selling in a presentation that shifts
emphasis from problem-solving to
problem-finding. In his presentation,
“To Sell is Human: The New ABCs of
Moving Others,” Pink will dissect the
personas of the best salespeople and
offer a sales vocabulary for messages
that resonate.
Keynoter Phil Lempert, an expert in
consumer behavior, marketing shifts
and food trends – he’s known as the
“Supermarket Guru” – will provide
an exclusive first look at his 2016
“Food and Retail Trend Forecast.”
InJuly1990,wepublished
ourfirstCOLLOQUY
magazineandlaunched
whatbecamethelongest-
servinggo-toresourcefor
loyaltyknowledge.
5. 03
JULY/AUG 2015
WWW.COLLOQUY.COM
We’ll also offer a series of Master-
Class sessions:
• “Your Customer Experience May
Be Killing Your Brand Loyalty.”
• “Getting the Most Out of the
Shopper Journey: The Big Five
Insights Derived From 3,000
Loyalty Programs.”
• “Rethinking the Future of Four
Key Pillars of Retail: Customer-
Centricity and Data.”
• “Marketing in the Moments That
Matter, Are You Ready?”
The 13th annual COLLOQUY Loyalty
Summit will take place at the
Lansdowne Resort in Leesburg, Va.,
just outside Washington, D.C. To learn
more, visit colloquy.com/summit.
Hopetoseeyouthere,
DennisArmbruster
Editor-at-Large
Editor-in-Chief: Lisa Biank Fasig
Editor-at-Large: Dennis Armbruster
Managing Editor: Kate Shepherd
Staff Writer: Karen Bells
Research Director: Jeff Berry
General Manager: Kurt Allen
Marketing Specialist: Joan Deno
Social Media: Jeff Stoermer
Creative Director: Laura Zazanis
Associate Publisher: Jill Z. McBride
ContributingEditors:StevenDennis,RyanLile,
GraemeMcVie,BryanPearson,BrianRoss,
GabeZichermann
313 W. Fourth Street
Cincinnati, OH 45202
Telephone: +1.513.248.9184
FAX: +1.513.231.0555
Email: info@colloquy.com
www.colloquy.com
Celebratingits25thyear,COLLOQUYhasservedasa
leadingpublishing,educationandresearchpractice,
bringingtogetherloyaltypractitionersfromaround
theworld.Apioneerintheindustry,COLLOQUYisthe
firstpublicationdedicatedexpresslytotheartand
scienceofloyaltymarketingandhassincebecome
thego-toresourceforloyaltyintelligence.Today
COLLOQUYengagesandeducatesloyaltymarketers
withitsmagazine,weeklye-newsletterandtimely
andcomprehensiveloyalty-marketingwebsite,
colloquy.com.Ineachissueofthemagazine,the
“COLLOQUYRecognizes”featurehighlightsexcellence
inloyalty.COLLOQUYdeliversindustry-leadingloyalty
benchmarkingreportsandeducationalworkshops,
webinarsandspeeches.TheCOLLOQUYSummitisthe
premiereannualloyaltyevent.Advertising,sponsor-
shipandpublishingopportunitiesareavailableviathe
COLLOQUYNetwork,aglobalpartnershipofloyalty
serviceproviders.COLLOQUYisanindependently
operateddivisionofLoyaltyOne.Tolearnmore,visit
colloquy.com.
JULY/AUG 2015
Hispresentation,“TrendingintheAisles:
5Must-HavesforRetailSuccess,”will
provideinsightsonhowtoreshaperetail
strategyinthecomingyear.
Also during the COLLOQUY Loyalty
Summit,wewillpresentthefifthannual
COLLOQUYRecognizesAwards at a lun-
cheononOct.15.Theseawardshonorthe
torchbearersofloyaltymarketingwho
inspireusalltoworktowardavalued
goal.Toreadaboutallof2015’swinners,
visitourCOLLOQUYRecognizespage.
A limited-attendance event that gathers
the brightest minds in marketing, the
COLLOQUY Loyalty Summit is a col-
laborative setting where participants
share the best practices and initiatives
to inspire desired customer behavior.
Other speakers include:
• Marriott’s Anna Lorch, senior
director, strategy and customer
relationship management.
• Walgreens’ Mindy Heintskill,
vice president of loyalty and
personalized marketing, and Dave
Zychinski, director of loyalty.
• Caribou Coffee’s Caroline Larson,
director of loyalty.
• Shell’s Todd Gulbransen, manager
of North American loyalty and cus-
tomer relationship management.
• Pepsi’s Mike Scafidi, director of
digital marketing.
• COLLOQUY’s research director
Jeff Berry will unveil results from
COLLOQUY’s latest study: “Cus-
tomer Loyalty in 2015 and Beyond.”
6. 04
JULY/AUG 2015
WWW.COLLOQUY.COM
[ L O Y A L T Y L A N D S C A P E ]
LOYALTY TODAY
Today,loyaltymarketingrepresentsa
dynamicindustrygeneratingbillionsof
dollarsinrevenue.Thelookmaychange
abit,butthewillingnessofloyaltymar-
keterstoinnovateandtakerisksensures
loyaltywillbeanintegralpartofbusiness
foryearstocome.
ONLINE TRAVEL SERVICES
Thedaysofusinganactualhumantravelagenthavelargelybeen
replacedbyonlinetravelservices,partofafast-growingsectorof
loyaltymarketingthatCOLLOQUYcalls“emergingplatforms.”Such
services–Travelocity,Expedia,etc.–shownosignsofslowingdown.
SURPRISE & DELIGHT
FUEL REWARDS
TIERING GAMIFICATION
CoffeejuggernautStarbuckspioneeredthe
useofregistered,store-brandedgiftcards
asavesselforloyalcustomerstopayfor
theirfrequenthabitandaccumulate
rewardsandspecialbenefits.
SOCIAL MEDIA
COALITION PROGRAMS
Nearlyeveryoneseemstohavea
smartphoneintheirhandsorpockets
atalltimes,promptingretailerssuch
asStarbucks,Dunkin’Donutsand
Pinkberrytolaunchmobileappsthat
tiemultipleconsumerconcerns–
includingloyaltyprograms–into
onego-anywherespot.
CPG
PROGRAMS AS PARITY
MOBILE APPS
PHILANTHROPY
RESTAURANTS
Coalitionprogramstapintothestrength
ofnumbers,lettingconsumersaccumulate
pointsthroughavarietyofmerchantsand
redeemthemwithanyofthosepartici-
pants.Popularinmanycountriesforyears
–Canada’sAIRMILEShasbeenflyinghigh
since1992,forexample–thetrendfinally
madeasplashthisyearintheUnited
StateswiththelaunchofPlenti.
Anewkindofshopperloyaltywasborninthe
cavernouswarehousesofmembers-onlyretailers
suchasCostcoWholesaleandSam’sClub,which
soldsteeplydiscountedmerchandiseinbulkto
thoseintheclub.
CREDIT CARD
PROGRAMS
Oncestrictlyarewardforbookingflights,
frequentflyermileseventuallybecame
acurrencyoftheirown,usedbyphone
companiestodrycleanerstomortgage
firmsandspawningspecialrewards
consultantsandagencies.
MILES AS CURRENCY
COBRANDED CREDIT CARDS
DRUGSTORES
Itseemsthere’sadrugstoreoneverycorner,and
theirloyaltyprogramsarethriving.CVS
wasanearlyentrantinthegame,launch-
ingExtraCarein2001,andheavy-
hittersWalgreens
andRiteAidalsohave
robustprograms.
Whodoesn’tlikeasurprise?Both
scientificresearchandloyalty-
programexperiencehaveshown
thatpeopleenjoyunexpected
benefitsand“surprise-and-delight”
occasions.Suchsurprisesencourage
memberstospendmore,tofeel
betteraboutitand,importantly,
totell morepeople.
MEMBERSHIP WAREHOUSE CLUBS
Manycompanieshaveintroducedacharitableoptiontotheirloyalty
programs,allowingmemberstodonatepoints,milesorrewards
merchandisetononprofits.Everybodywinsinthisscenario:The
charitylandsdonations,thememberandcompanygainaself-
esteemboost,andthecompanyraisesitssocialprofileand
clearspointsoffthebooks.
WhileprogramssuchasFuel
RewardsandPilotTravelCenters’
programstillattractloyalfans,
gasoline is no longerking.A
March2015LoyaltyOnesurveyof
1,000Americanshoppersfound
theywouldprefer,forexample,
thatgrocersofferdiscountson
foodandmerchandiseinstead
ofonfuel.
DAILY DEALS
Hopingtoencourageincrementalspending
growthandcreatesomethingforconsumers
toaspireto,loyaltyprogramsbeganusing
tiers–commonlydenotedasbronze,silver
andgold.But2014researchbyCOLLOQUY
foundtieringoftencreatesmoreconfusion
thanloyalty,andbrandsmustrethink
theapproachiftheycontinuethepractice.
Ina“you’vegotchocolateinmypeanutbutter”moment,
companiesrealizedthatconsumerslovegamingandthey
loveloyaltyprograms…sowhynotcombinethetwo?
Manyaddedgamificationelements–trivia,contests,
gamesofskill–thatyieldedfunforplayersandvaluable
dataforthebrands.
In1990,COLLOQUYlaunched
asthefirstpublishingcom-
panytospecializeintheworld
ofloyaltymarketing.Through
ourmagazine,newsletter,
researchpapers,eventsand
website,COLLOQUYrepresents
acomprehensiveloyaltypub-
lishing,educationand
researchpractice.
INAUGURAL ISSUE
Eventuallythebloombeginsto
fade,whereloyaltyisconcerned,
withprogramsseemingtoreach
parity.Therulesand award
structureseemedtobealike
fromprogramtoprogram, and
theexcitementwaswaning.
Loyaltyoperatorswereforced
togetmorecreativetostand
out,withcompaniessuchas
Marriotttakingthelead.
PREPAID (STARBUCKS)
Recognitionofthepoweroftwocarts
pullinginonedirectionledtothecre-
ationofcobrandedcreditcards,which
partneredsponsorbrandswithissuing
creditcardbrandstotheadvantage
ofboth.
NeimanMarcusledthechargeintostore
creditcardloyaltywithInCircle,launched
in1984.Eventually–butnotforanother
eightyears–otherspecialtyanddepart-
mentstoressuchasSaksFifthAvenue
andMacy’sstartedofferingrewardpoints
forchargesonstorecreditcards.
25 LOYALTY MILESTONES
Socialmediabegantograbtheattentionofseemingly
everyoneandeverycompany,andloyaltymarketing
wasnotimmune.MajorfirmssuchasCoca-ColaCo.
beganlinkingrewardsandofferstoactionssuchas
postingspecifichashtags,likingabrandonFacebook
orsharingphotosonInstagram.
Intheworldofloyaltymarketing,
tradingstampsaregroundzero.
Fromtheearly1800swithSweet
HomeLaundrysoaptoOvaltine’s
CaptainMidnightinthe1950s,
these“collect-and-save”programs
awardedcouponsorstampsthat
products’fanscouldaccumulate
andredeemforgoodies.
COLLECT-AND-SAVE
TRADING STAMPS
FIRST FREQUENT TRAVEL PROGRAMS
Asenseofurgencybecameaprimarymotivatorwith
theonsetof“dealoftheday”websites.Groupon,
LivingSocialandmanyothersofferdeepdiscounts
onasingleitemforaverylimitedtime–oftenonly
24hours–andthenpushfutureofferstothecollected
emailandsocialmediacontacts.
Consumers’obsessionwithstayingin
touchwasanaturalcallforloyaltypro-
grams,withAT&Tleadingthewayin
1984withitsOpportunityCalling.Other
telecommunicationsproviders–phone
companies,nascentInternetproviders
andmore–joinedthefrayovertheyears.
GROCERY FREQUENT-
SHOPPER PROGRAMS
TELCO
PROPRIETARY RETAIL CARDS
Modern-dayloyaltytookflightwhenAmericanAirlineslaunched
theAAdvantagefrequentflyerprogramin1981,usheringinafleet
oftravelloyaltyeffortsbyairlines,hotelsandrentalcarcompanies.
Creditcardissuersbeganto
seethepotentialofloyalty
programsbythemid-1980s,
withDiscover,American
Express,Citiandothers
puttingformalprograms
onthemarket.
TheNationalRestaurantAssociationpredicts2015restaurant
andfoodservicesalesof$709billion,up3.8%from2014.Rest-
aurantsofeveryvarietyofferloyaltyprograms–fromfine-dining
ChartHousetoquick-casualQdoba.Even
fastfoodchainsareseeingthevalue,
includingTacoBellandMcDonald's.Rest-
aurantsalsoareincreasinglytyingsocial
mediaactionstoloyaltyrewards.
Seeingtheappealofbecomingfoodshoppers’
topbanana,grocersintroducedbar-codedloyalty
cardsthatcollectpurchaseinformationand
personalinformationabouttheuserinexchange
forcoupons,rebatesormerchandise.
Ifthere’soneconstantinloyaltymarketing,it’sthis:Changeisthenameofthegame.
OnedayconsumersaresavingtheirOvaltinefoiltopsforCaptainMidnightrewards,
andinwhatseemsliketheblinkofaneyethey’reengagingindigitalloyaltygames
andamassingrewardsviamobileapps.Aswemarkthe25thanniversaryofCOLLOQUY,
wetakealookat25developmentsthatkepttheloyaltyindustrymovingforward.
There’snotellingwhatthenext25yearswillbring,butonethingiscertain:Itwon’t
justbebusinessasusual.
Source:COLLOQUY,July/August2015
Adecadeago,consumerpackagedgoodscompanies
lackeddirect-to-consumerloyaltystructuresaswell
astheabilitytotrackwhatindividualshopperswere
buyingatretailoutlets.Thiscreatedan“invisible
customer”dilemma,whichCoca-Colaaddressedin
2006withitsMyCokeRewardsprogram.Other
CPGs,suchasKraftandL’Oreal,followedsuit.
INFOGRAPHIC:
25 LOYALTY MILESTONES
If there’s one constant in loyalty marketing,
it’s this: Change is the name of the game. One
day consumers are saving their Ovaltine foil
tops for Captain Midnight rewards, and in
what seems like the blink of an eye they’re
engaging in digital loyalty games and amassing
rewards via mobile apps. As we mark the 25th
anniversary of COLLOQUY, we take a look at
25 developments that have kept the loyalty
industry moving forward. There’s no telling
what the next 25 years will bring, but one thing
is certain: It won’t just be business as usual.
Clickthe image for a legible
infographicandfulldescriptions
for each milestone.
7. 05
JULY/AUG 2015
WWW.COLLOQUY.COM
At COLLOQUY.com, we report daily on news
and trends of interest to marketers across
all industries and around the globe. In case
you missedthem, belowarethetop news
storiesfromthe last couple ofmonths. Click
the links to read more of each story or here
to visit the archive.
A news roundup from COLLOQUY.com
[ N E W S B R E A K ]
HARLEQUIN LAUNCHES HARLEQUIN
MYREWARDS FOR LOYAL READERS
Members of the new Harlequin My
Rewards program earn points for
purchasing books or engaging in multiple
online activities. Rewards include autographed
books, signature gift baskets and Skype conversations
with favorite authors. Read more.
WAL-MART CHALLENGES AMAZON
PRIME WITH SHIPPING PASS
Wal-Mart Stores Inc. launched
Shipping Pass, offering members
free three-day shipping for a $50
annual fee. Readmore.
FOODRETAILERSFEASTON
IDEASTOMEETCHANGING
CUSTOMERDEMANDS
TheFoodMarketingInstitute’s
FMIConnectconferencein
ChicagoJune9-11wasa
chanceforindustrydecision-makerstofigureouthow
tostayonestepaheadofgroceryshoppers’changing
tastes. Read more.
RETAIL'S LEADING BRANDS, AND BRAINS,
TIE A BOW ON ENGAGEMENT
FromDeckersshoestoDunkin’Donuts,Costco
toOliveGarden,representativesfromsomeof
theworld’sbest-recognizedbrandssharedtheir
strategiesofelevatingthecustomerexperienceat
thisyear'sCustomerRelationshipManagement
Conference. Read more.
APPLE ANNOUNCES
ADDITION OF REWARDS
PROGRAMS TO APPLE PAY
AppleannouncedApplePayis
addingsupportforrewards
andstore-issuedcreditand
debitcardswithiOS9,making
iteasierforcustomersto
earnrewardsoneveryday
purchases. Read more.
DYSFUNCTIONAL CUSTOMER EXPERIENCES RISK
BILLIONS IN RETAIL LOSSES
The mistreated customer who walks out the door in a
silent huff places the most revenue at risk, according
to a collaborative study of dysfunctional retail
touch points conducted by LoyaltyOne and
Verde Group. Read more.
8. 06
JULY/AUG 2015
WWW.COLLOQUY.COM
BY THE COLLOQUY STAFF
The traditional gift for a 25th anniversary is silver. We’d like to
make it reciprocity.
Loyalty marketers can fill warehouses with the investments they‘ve
madetobetterunderstandthepersonbehindthepurchase,toderiveclarity
from insights. Yet we seldom pause enough to reflect on how our actions
define us, and our industry.
For our 25th anniversary as a leading researcher and publisher, COLLOQUY has
gathered a select group of loyalty leaders and visionaries and asked them to share
their own insights into the industry’s evolution. Many of these pioneers – from Don
Peppers and Seth Godin to the loyalty marketers at Hilton Worldwide and Delta AirLines
– have witnessed the key events over the past 25 years, and many
shaped them. We have gathered their responses and present them
here, as our anniversary gift to the industry.
[ C O V E R S T O R Y ]
Celebrate,
Contemplate:
Loyalty’sHeavyHittersonWhere
We’veBeen,WhereWe’reHeaded
9. 07
JULY/AUG 2015
WWW.COLLOQUY.COM
Our
Experts
Jeanne Bliss, president of
CustomerBliss and author of
“Chief Customer Officer 2.0”
Emily Collins, senior analyst
focused on customer-loyalty
programs, Forrester Research
Bob Daly, seniorvice president of
FlexPerks Rewards and loyalty
management, U.S. Bank
Steven Dennis, COLLOQUY contributor,
president of luxury consulting firm
SageBerry Consulting
Roger Dow, president and CEO,
U.S. TravelAssociation
Bernie Feiwus, former seniorvice
president of marketing, Neiman Marcus
Seth Godin, author of several best-selling
books, including “Linchpin” and “Purple Cow”
Phil Hawkins, head of
loyalty operations, Coles
supermarkets, Australia
Caroline Larson, director of customer
engagement and loyalty, Caribou Coffee
Bryan Pearson, president and CEO of
LoyaltyOne, author of “The Loyalty Leap”
Don Peppers, customer relationship
expert, author, founding partner of
Peppers & Rogers Group
Randy Petersen, editor and publisher,
InsideFlyer magazine
Daniel Pink, author offive books,
including “Drive,” host and co-executive
producer of “Crowd Control”
Peter Sheahan, author of six books, including “Fl!p”
and “Making it Happen,”founder/group CEO ofthe
business engagement firm Karrikins Group
Simon Uwins, author of “Creating Loyal
Brands,”former chief marketing officer
ofTesco UK, Fresh & Easy
Mark Weinstein, global head of loyalty
and partnerships at Hilton Worldwide
Karen Zachary, managing director, SkyMiles
Global Program Management, Delta Air Lines
10. 08
JULY/AUG 2015
WWW.COLLOQUY.COM
Dennis, SageBerry: The notion that per-
sonalization, in many cases, was the
key to deepening loyalty.
Daly, U.S. Bank: Although the introduc-
tion of airline frequent flyer programs
is often cited as a critical turning point
in loyalty, these programs weren’t
jet-propelled until they introduced
cobranded credit cards as a means to
accelerate mileage earning. In fact, for
many large airlines, credit card pur-
chases account for more awarded miles
than actual flying.
Uwins, “Creating Loyal Brands”: The first
was the publication of “The Loyalty
Effect” by Frederick Reichheld in 1996.
This really crystalized how loyalty
could be a business strategy, rather
than simply a marketing tactic. The
second was the development of the
Net Promoter Score in 2003. It moved
the focus of loyalty beyond spend and
frequency to fostering advocacy.
Peppers, Peppers & Rogers: When
frequency-marketing programs
leaped the airline barrier and went into
retail. I think the seminal non-airline
frequency program of the 1990s was the Tesco program in
the UK. The Clubcard programwastheirsecretweapon.Thatgave
legitimacytotheideathat,‘Hey,loyaltyprogramscanbemorethan
aboutairlinemileage.’
Feiwus, Neiman Marcus: During the early 1980's, the retail land-
scape was rapidly changing with retailers losing both brand
and geographic exclusiveness. Therefore, customers had
more choices, and it was a greater challenge to maintain their
loyalty. Fortunately, technology had reached a point where
loyalty programs were feasible.
: Describe
what to you was
a critical loyalty
turning point.
: When and how did
you know the concept
of loyalty marketing
had arrived?
Pink, “Drive”: When I looked in
my wallet and realized that I had
more – way more – loyalty cards
than credit cards, bank cards and
government IDs combined.
Dow, U.S. Travel Association: In 1985,
we launched Marriott Rewards,
when our competitors did not –
thinking loyalty programs were
too costly and would not work
in lodging. We had a two-year
head start and over 2 million loyal
guests by the time they realized
their costly miscalculation.
“Formanylargeairlines,
creditcardpurchases
accountformore
awardedmilesthan
actuallyflying.”
~BobDaly,U.S.Bank
11. 09
JULY/AUG 2015
WWW.COLLOQUY.COM
Sheahan, “Fl!p”: When my local coffee shop owner handed me my 10-cup punch
card and said that he wanted to thank me for my loyalty, and then punched the
firstnineimmediately.InthatmomentIdidnotcarehowmuchhiscoffeecostcom-
pared to the retailer down the road. What I felt, in its purest sense, was loyalty.
Collins, Forrester: About five years ago when it became clear that the balance of power
had shifted from companies to the customer. The rapid adoption of mobile and connected
technologies gives consumers access to an incredible amount of information. As such, the
consumer is in control, and traditional competitive advantages no longer hold water. Today,
the relationship (with) customers determines business success.
Weinstein, Hilton: Rewarding loyal customers has been around forever, from the baker offering
“buy 12, get the 13thpastryfree,”tothesophisticatedpoint-of-salesolutionsatgasstations.When
airlinesandhotelslaunchedloyaltyprograms,a two-way relationship was formed – the cornerstone
of a program that transcends ‘do this, get that’ mentalities.
: What was
the single most
important event
in loyalty,
to you?
Bliss, CustomerBliss:
The first airline loy-
alty programs in
1981, followed by
hotels, rental car
companies and Neiman
Marcus’record-breakingfirst
loyaltyprogram.Thesewerethefirstorga-
nizedeffortstoembrace,understandand
engagewithcustomersbeyondtransactions.
Pearson, “The Loyalty Leap”: Digital com-
munications changed pretty much every
aspect of how we engage with consumers.
But in terms of importance, I think it was
recognizing the consumers’ critical role in
establishing long-term brand success, and
how loyalty can serve that.
Dow, U.S. Travel Association: When American
Airlines launched AAdvantage, followed a
week later by United launching Mileage
Plus. That marked the beginning of the
loyalty scramble.
Larson, Caribou Coffee: Loyalty rules
changed with the emergence of online
retailers. Brick-and-mortar stores had
to … evolve to provide better service,
recognition, reasons to come back to
them specifically – a loyalty program.
Now, online retailers are creating their
own loyalty programs, not based on
points. Amazon Prime is a great example.
Zachary, Delta Air Lines: For Delta, it was
transitioning from a model that rewards
members based on the distance that they
flew to one that rewards them based on
their spend(ing). Shifting to this mod-
el recognizes and rewards our members’
investment with Delta while continuing to
provide great value to all frequent flyers.
12. 10
JULY/AUG 2015
WWW.COLLOQUY.COM
Godin, “Linchpin”: They miss the fact that
companies don’t care. At all. That the
whole thing has been industrialized and
productized and turned into yet another
profit center. They miss being missed.
They miss humanity.
Hawkins, Coles: Put even more
energy into measure, measure,
then … measure!
Dennis, SageBerry: I would have
pushed the redesign of Neiman
Marcus’ InCircle program to be
more remarkable.
: If you could
do one thing
over again,
what would
it be?
Dow, U.S. Travel Association: (Iwould
have)includedallofMarriott’s
multiplebrandsinMarriottRewards
–whichwasonlyforMarriott’s
full-servicehotels–muchsooner.
Godin, “Linchpin”: I’ll answer for the
industry … The race to the bottom
in email marketing, the incessant
spam, the refusal to self-regulate.
Marketers have ruined the greatest
medium they’ve ever had.
Petersen, InsideFlyer: Seriously –
nothing. I've been lucky enough
to watch, wonder and be part of
one of the most extraordinary
chapters of the travel industry
when it slayed critic after critic,
industry after industry and orga-
nization after organization.
Sheahan, “Fl!p”: Change my be-
havior as a consumer. Only now
that I have become immersed in
the industry have I become aware
of the massive value I left on the
table as a customer.
Uwins, “Creating Loyal Brands”:
I would spend a lot more time
early in my career understanding
the emotional drivers of behavior.
Feiwus, Neiman Marcus: Create a
lifetime tier in addition to the
annual program.
: What do you
think consumers miss/
don't see regarding the
loyalty relationship?Bliss, CustomerBliss: Trulyhonor-
ingloyalty.Iwasrecentlycharged
$35forreplacingmyloungecard
byanairlinewithwhomIhaveso
manymillionsofmilesthatIhave
lifetimestatusatitshighestlevel.
Theserulessay,‘Wewantyou
tobeloyaltous,butwewon’tbe
loyaltoyouinreturn.’
Pearson, “The Loyalty Leap”: How
much they can influence change
and improve the role that loyalty
marketing serves. Just con-
sider the potential power of a
well-connected brand
ambassador–justGoogle
“I Love Ikea” or “I Love
Southwest.” What many
companies miss is the oppor-
tunity to give their budding
ambassadors a platform.
Dow, U.S. Travel Association: Trying to
join every program in a segment
– spreading out their purchases
vs. concentrating their spending
on one or two, to gain the benefit
of ‘high spender’ points/miles
accelerators.
13. 11
JULY/AUG 2015
WWW.COLLOQUY.COM
: Build a
loyalty starter kit.
What three tools
are essential?
Uwins, “Creating Loyal Brands”: Once
customers share data with you, they
assume you know everything about
them, and that you have the
intention and the capability to per-
sonalize their experiences. But you
can never perfectly know every-
thing about them, or personalize
everything. So it’s essential for the
marketer to develop a proper two-
way relationship with the customer
to both manage expectations and
maximize value.
Larson,CaribouCoffee:Manyconsumers
don’t realize how complex systems
are required to be to do a good job of
engaging, recognizing and rewarding
guests. They think that all systems
are built, integrated and easily flow-
ing with information from one place
to another. In reality, most systems
are created piece by piece, over time,
and sometimes in silos.
Peppers, Peppers & Rogers: They may
think of (loyalty) as a company’s
effort to secure their continued
patronage, but I also think that
consumers, unless really emo-
tionally involved with the brand,
are mercenary. They’re making
economically rational decisions,
and a lot are suckered into making
loyalty program decisions based on
upfront promotions.
“Manyconsumersdon’t
realizehowcomplex
systemsarerequiredto
betodoagoodjobof
engaging,recognizing
andrewardingguests.”
~CarolineLarson,
CaribouCoffee
Pink, “Drive”: 1. A great
product. Getting points
for a mediocre hotel
doesn’t help much.
2. Transparent process
and rules. If someone under-
stands how it all works, (he is)
far less likely to complainandmuch
morelikelytobesatisfied.3.Simplicity.
Anything companies can do to save
people even a step can pay big divi-
dends down the road.
Dennis,SageBerry:1.Deepcustomerin-
sight.2.Aunifiedcustomerexperience.
3.Anamplified(remarkable)experience.
Daly, U.S. Bank: 1. A compelling and
relevant customer-value proposition
borne out of extensive data analytics
and financial rigor. 2. Operationally
efficient program architecture that is
delivered with consistency by exten-
sively trained front-line personnel.
3. Flexible and scalable reward plat-
form infrastructure.
Godin, “Linchpin”: 1. Build something I’d
miss if you took it away. 2. Focus not
on prizes or the transfer of value, but
on recognition, on humanity, on peo-
ple. 3. Care more.
Collins,Forrester:1. Define an enterprise-
wide loyalty strategy that links to the
larger business objectives and focuses
on the total customer relationship.
2. Customer insights … great loyalty
strategies create an exchange of value
betweenthecompanyandthecustomer.
3. Technology to bring your loyalty
vision to life!
14. 12
JULY/AUG 2015
WWW.COLLOQUY.COM
will eventually disappear. There will
be a new, more engaging currency
based in technology that’s easy to
manage and understand. Members
will have more latitude and control,
making them more loyal consumers
to the product, not the currency.
Zachary, Delta Air Lines: Absolutely! Next
question?
Weinstein, Hilton: Being able to choose
how you want to earn rewards is an
important foundation of our program
and allows members to experience
various benefits depending on what
type of trip they are with us for.
: Points and
miles – here
to stay?
Weinstein, Hilton: 1. A core product that
members love. 2. Benefits that members
value and you’re prepared to consistently
deliver. 3. An ecosystem that empowers
and enables a personalized relationship
through two-way dialogue.
Pearson, “The Loyalty Leap”: Anytools
thatenablethecompanytousethedata
itcollectstomeetpre-establishedgoals:
1.Aplatformtohearyourcustomersin
realtime.2.Asystemforsharingwhat
youhearthroughouttheorganizationto
revealunexpectedpotentials.3.Thecapa-
citytodeliverontheinitiative’spromise.
Peppers, Peppers & Rogers: 1.Thefirsttoolis
amentalmodelthatloyaltyisnotthebe-all,
end-allgoalofanyloyaltyprogram.You
wantcustomerstolikeyou,tohaveanemo-
tionalcommitment.Donotconfusealoyalty
programwithloyalty. 2.Adoptabusiness
modelthatunderstandsthemoredifferent
yourcustomersareineithertheirvaluesor
needs,themoreusefultheloyaltyprogram
is.3.AprogramwhereIcanredeempoints
foravarietyofdifferentthings,maybeeven
withdifferentcompanies.Whynotletcus-
tomerschoosetheirrewardsinadvance,
andearntheirpointstowardthem?They’d
getinsightintowhatreallyringsmychimes.
Pink, “Drive”: I sure hope so. I’ve got lots
more to spend!
Hawkins, Coles: While it may be fashion-
able in 2015 to dismiss points as a cur-
rency of influence, the current evidence
suggests that this currency still does
indeed have a ‘point.’ What may excite
and incentivize one customer may be
quite different to the next.
Larson, Caribou Coffee: Loyalty needs a type
of currency, but I think points and miles
15. 13
JULY/AUG 2015
WWW.COLLOQUY.COM
: Coalition
loyalty – a fad or
here to stay?
: How would you
describe loyalty in the
year 2040 (25 years
from now)?
Pearson, “The Loyalty Leap”: Here to stay. The pure ele-
ments of the model may change a bit, but the idea of
multiple parties contributing to a common pot still
makes sense – especially where a richer data asset is
created for the benefit of all the partners in the program.
Daly, U.S. Bank: Absolutely ‘here to stay’ in many corners
of the globe. In the United States the jury is still out, but
we’ll know in the next 36 months if (America Express’)
Plenti and other aspiring coalition programs takehold.
TheoddsareevenasmostU.S.households are already
entrenched in many loyalty initiatives and may not see a
compelling reason to join another.
Sheahan, “Fl!p”: There is still tremendous potential in the coalition model. Its ability to connect consumers to
a brand and drive loyalty for reasons beyond discounting gives it an advantage over certain cash-back-only
programs. (However) the evolving payments world poses a threat to the weaker coalition models.
Dennis,SageBerry:Allaboutpersonalizationandbeing
remarkable.
Zachary,DeltaAirLines:Loyalty will continue to evolve
but the basics – rewards, recognition – will always
remain the core in a service business.
Peppers,Peppers&Rogers: Loyalty will be individu-
alized. Aggregators will do things like your grocery
shopping and other routine stuff. (So) consumers
will be managing their relationships with vendors
rather than vendors managing relationships with
consumers. I wouldn’t be surprised if I see consum-
ers offering their own loyalty programs to vendors.
16. 14
JULY/AUG 2015
WWW.COLLOQUY.COM
: What
advice would
you give a
young loyalty
marketer?
: Fee-based
loyalty – on the
way up, or out?
Petersen,InsideFlyer:
Up.There’sempiricalresearchinotherindustries
thatshowsthisisanacceptablevariationofloyalty–
AmazonPrimeisaveryinterestingexample.
Godin,“Linchpin”:Make something
worth talking about.
Pearson, “The Loyalty Leap”: Ask yourself before embarking on any
project, whether it involves a short-term promotion or a long-term
loyalty initiative: Is this adding relevant value that the customer can
readily appreciate? If not, start over. You have to demonstrate, genu-
inely, that you care about the customer at every turn.
Uwins, “Creating Loyal Brands”: Just remember that despite all the labels –
consumers, customers, employees, advocates, etc. – it’s just about people,
and building relationships with them.
Peppers,Peppers&Rogers:Be in a position where you don’t have to buy your customers’
loyalty, you sell it to them. If a customer really likes me and wants to do business with
me because I am always a step ahead of their needs, (then) the more invested they are
in the relationship.
Feiwus, Neiman Marcus: I have seen
several programs where, in an
effort to entice customers,
programs were so expen-
sive that they could not
be sustained.
: What
is the biggest
mistake a loyalty
marketer can
make?
:Whatdoes
acustomerloyalty
strategyrequiretobe
remarkable,or a
“purplecow"?
Foran extendedtranscript of
allinterviews, clickhere.
17. 15
JULY/AUG 2015
WWW.COLLOQUY.COM
[ L O YA L T Y S T R AT E G I E S R E D U X ]
Inourweeklye-newsletter,SpeakingofLoyalty,weprovidein-depthcontentincludingourLoyalty
Strategiesstories.We’vepulledsomeofthebestindustry-leaderquotesfromthesestoriesover
thepasttwomonths.Clicktheindividualtitlestoreadmoreofeachstoryorheretovisitthe
LoyaltyStrategiesarchive.
“Youstartwiththecustomervoiceinmindandyoubuilditfromthere.”
GlenMacDonell,managingdirectorofloyaltyandpartnershipmarketing,BestWesternInternational
RoadH.O.G.S:HowHarley-DavidsonandBestWesternMaximizeMembership
“AlotofpeoplehavethisideathatifIjustshout
oftenandloudenough,thenpeoplewilllisten.
Itusedtobejust,‘Let’sshowpeople
whatwehave.’Butpeopledon’tcare
aboutthatanymore.Youhaveto
tellastoryandshowpeoplewhat
you’reaboutatadeeperlevel.”
AlexMcEachern,loyalty-marketingspecialist,SweetTooth
Pinned,LikedandTweetedIntoaSocialStupor?
8TipstoRefinetheSocial-LoyaltyLink
“We’ve learned that companies tend to have greater
alignmentwhenitcomestoidentifyingthemajorobstacles
oftheirloyaltystrategies.Whilefocusingonthebarriers
isn’tintuitive,itisusefulforteamstoseeaworkingexam-
pleofprovablealignment,shouldsuchchallengesarise.”
JRSlubowski,seniorconsultant,LoyaltyOne
Front-EndAlignment:4TipsforFinding,FixingManagementMisunderstanding
“Dataisoftencol-
lectedtoreinforce
whatmanagement
wantstohear.”
EarlQuenzel,partnerwiththemar-
ketingagencyQuenzel&Associates
SalutingLoyalty:Most
PatrioticBrandsReveal
GenuineStrategies
20. 18
JULY/AUG 2015
WWW.COLLOQUY.COM
For25years, COLLOQUYhas served as a leading publishing, education and research practice, bringingtogether
loyaltyexpertsfrom aroundtheworld. Fromthis uniquevantage,the COLLOQUYeditorialteam chooses
the programs and initiativesthat exemplifythe mostforward-looking strategies in loyaltytoday. Belowis our
July/August set ofwinners. Clickthe logoto linktothewinner'sfullreport.
COLLOQUYRECOGNIZESBESTWESTERNINTERNATIONALFORLOYALTYPROGRAMPROMOTION
For the hotel industry, summer is all about attracting family vacationers. Best
Western International accomplished that goal in its summer 2014 campaign by
partnering with Disney Media and singer-actress Zendaya, a favorite of kids and
teens. The “Get Zapped With Zendaya Zweepstakes” included radio and television
components along with social media and high-tech tools, such as virtual reality
displays in hotel lobbies that allowed guests to take photos “with” the star. Almost
a million people participated in the Get Zapped promotion, and 600,000 joined the
Best Western Rewards loyalty program. Read more.
COLLOQUYRECOGNIZES THE BAVARIAN INN FOR INDEPENDENT LOYALTYPROGRAM
In what might be the only loyalty program where patrons earn rewards while
visiting an authentic glockenspiel, the Bavarian Inn in Frankenmuth, Mich., created
a program that rewards frequent visitors. The Bavarian Inn Perks Club features
dollar-value certificates, dining discounts and special lodging rates, along with
more personal perks, such as phone calls from the owners, special viewing areas for
fireworks displays and table visits from the restaurant brass. Program membership
grew by 27% in 2014 and the inn saw longer average stays among members than
nonmembers, along with an 86.5% redemption of reward certificates. Read more.
COLLOQUYRECOGNIZESFLYBUYS/COLESFORHEALTH&FITNESSENGAGEMENTPROMOTION
Australian coalition program flybuys, wholly owned by grocery chain Coles,
already had a fitness emphasis and encouraged its loyalty members to track their
activities through devices such as Fitbit, along with providing incentives to buy
fresh produce. But to give the program a needed kick in the pants, it launched
Move More in March, rewarding members for taking 10,000 steps per day, every
day, in March – or smaller rewards for those who hit the goal at least 15 days. More
than 6,000 participants hit at least one of the goals. Flybuys partner health com-
panies also benefited with new memberships and awareness. Read more.
COLLOQUYRECOGNIZES FOODSTUFFS NEW ZEALAND FOR GROCERYLOYALTY
New Zealand grocery operator Foodstuffs, which owns the 135-store New World
brand, was hungry to create a proprietary loyalty program that worked in con-
junction with its existing flybuys and Airpoints third-party rewards programs. It
invested heavily in its customizable Clubcard program, which it launched in the
summer of 2014. The Clubcard has 375,000 members from an estimated target
market of 400,000 people. Average basket size has increased by 8% for mem-
bers, and the company estimates that higher levels of customer engagement
since the launch of Clubcard contributed to $38 million in additional revenue
in 12 weeks. Read more.
21. 19
JULY/AUG 2015
WWW.COLLOQUY.COM
313 W. Fourth Street
Cincinnati, OH 45202
Telephone: +1.513.248.9184
FAX: +1.513.231.0555
Email: info@colloquy.com
www.colloquy.com
Not a subscriber? Sign up now – it’s FREE!
COLLOQUY.com is your professional resource for loyalty intelligence. Subscribe now for complete benefits:
Bimonthly COLLOQUY magazine | Speaking of Loyalty weekly e-newsletter | Daily breaking news | Timely and comprehensive reports | Loyalty program summaries
Subscribe now for complete access to COLLOQUY.com.
