Deck on the Impact on Customer Loyalty of the challenging economic, regulatory and technology environments 2009 – 2010. Publically available data were reviewed and extrapolations were made where necessary.

1. Trends in Loyalty and Customer
Communication 2010
Defining Loyalty, Measuring Loyalty, Optimizing Loyalty
September 2010
Walter Kitchenman
wkitchenman@hotmail.com

2. Part of a Series on Global Information Management
This presentation is part of a series of work by Walter Kitchenman
(http://www.linkedin.com/in/wkitchenman) covering the importance and use of Information.
Earlier studies documented the availability, use and benefits of shared consumer and other data
and how such transparency shapes businesses globally; inhibitors to sharing information
resources within large organizations; solutions for implementing Best Practice Information
Products and Knowledge Management; and an introduction to Digital Marketing and why it will
be critical in terms of future investments.

3. Purpose
This presentation describes the impact on Customer Loyalty of the
challenging economic, regulatory and technology environments 2009 –
2010. Publically available data were reviewed and extrapolations were
made where necessary.
• Identify and define Loyalty Metrics
• Show how Customer Communications strategies optimize Customer Loyalty
• Anticipate the impact on Customer Loyalty of a weakened economy,
regulatory changes and the fluid Web 2.0 environment
2

4. Agenda
1. The Big Picture.……………………………………………………….. 4
2. Defining Loyalty……………………………………………………….. 10
3. Measuring Loyalty ……………………………………………………. 15
4. Forces Impacting Loyalty…………………………………………….. 25
5. Communications and Loyalty………………………………………… 33
6. Improving Loyalty ..…………………………………………………… 40
7. Summary ………………………………………………………………. 48
3

5. Trends in Loyalty and Customer Communication 2010
THE BIG PICTURE
4

6. THE BIG PICTURE> TAKEAWAYS
For More than 100 Years Programs Have
Rewarded Customers for Loyalty
Evolution of Rewards Programs • Developments since the 1980s are
directly related to:
– Advances in IT and at POS
• Future developments are supported by
Ubiquitous Rewards IT, specifically in the areas of:
Instant Rewards – Social media
– POS
Enterprise Rewards
– Web 2.0 (i.e. iAPPS, Tweets, etc)
Coalitions
– Mobile
Grocery & Convenience – Proximity (RFID technologies)
Credit Cards – Wearable or “ubiquitous” computing
Rental Cars
Hotels
Airlines
S&H Green Stamps
1890s Today Future
Source: TowerGroup
5

7. THE BIG PICTURE> TAKEAWAYS
Take Aways
Customer satisfaction rates held steady 2010 y-t-d despite declining revenues.
Winners use more than one Loyalty Metric and measure campaigns over-time.
• Loyal Customers may not be profitable at a point in time making Lifecycle
Management and Customer Lifetime Value (CLV) increasingly important
• Rewards programs are ubiquitous, especially in banking, as Debit
surpasses Credit and offers loyalty programs as well
• Inserts, email campaigns and landing pages remain powerful tools to
engender Loyalty as small improvements at the margin yield big results
• New media (e.g., iAPPS, Twitter, social networks) do not yield big numbers
in terms of reaching Loyalty Members but have high adoption rates
• Highly Connected Individuals (HCI) may not produce a large CLV but carry
brands with them on mobile and other devices and sway thousands
• There is a large untapped market for Loyalty Metrics among CMOs
6

8. THE BIG PICTURE> KEY METRICS
The Loyalty Universe: Key Metrics
A 2.1% average opt-out rate annualized across 13 campaigns means 45% of a
list or dBase of potentially Loyal Customers may disappear.
• 1.8 billion members enrolled in Loyalty Programs in the US covering an
estimated 129 million individuals
• US$2 billion spent annually in the US on Loyalty Programs and Loyalty
Solution IT that is used to segment and target customers
• US households enrolled in 14 Loyalty Programs but are active in 6
• 50%+ of revenues come from fewer than 25% of Loyalty Members
• 35% of bookings are made by Loyalty Members (hotels and Casinos)
• 80%+ of CMOs prefer email for loyalty communications and marketing
• 20%+ of all marketing dollars will be spent on digital marketing by 2014
and online technologies now receive the most new loyalty investments
7

9. THE BIG PICTURE> KEY METRICS
US Loyalty Memberships by Industry est. 2010
There are 14 Loyalty Memberships per US household. Loyalty Programs reach
an est. 129 million individuals. Financial services (cards) are biggest segment.
Distribution of 1.8 billion Memberships by Major Industry Segment
Industry Millions of Members
Financial Services 422
Retail (Specialty & Dept. Stores) 284
Airlines 277
Grocery Stores & Fuel/Convenience Stores 204
Hotels 162
Casinos 106
Drug Stores 74
Restaurants 14
Car Rental & Cruise Lines 11
Other 128
Source: COLLOQUY; extrapolations from COLLOQUY data
8

10. THE BIG PICTURE> KEY METRICS
There is a Large Un-Tapped Market for
Loyalty Metrics Among CMOs
Most marketers ignore the more complex measures of Loyalty and maintain
limited dbases.
• 73% collect basic demographics
• 68% track location of Loyalty Members
• 33% measure satisfaction levels
• 27% measure brand loyalty
• 14% measure Advocacy Rates
Source: CMO Council 2009 - 2010
9

11. Trends in Loyalty and Customer Communication 2010
DEFINING LOYALTY
10

12. DEFINING LOYALTY> DEFINITIONS
Loyalty is the Propensity of a Customer to Use a
Product in the Future
We Define Loyalty in Three Simple Ways
1. Customer Satisfaction
2. Emotions
3. Behaviors
11

13. DEFINING LOYALTY> DEFINITIONS
Customer Satisfaction is Highly Related to
Loyalty and Customer Retention
Customer satisfaction and customer loyalty are the best predictors of
customer retention.
Three Broad Categories of Customers
• Dissatisfied Customer - Looking for another product or service
• Satisfied Customer - Open to the next better opportunity
• Loyal Customer - Returns despite offers by the competition.
12

14. DEFINING LOYALTY> DEFINITIONS
Customer Dissatisfaction is a Very Important
Driver of Consumer Behavior
Prompt resolution of a dissatisfied customer's issue results in 85% of
them as repeat customers.
Characteristics of a Dissatisfied Customer
• For every customer that complains at least 25 do not
• Dissatisfied customers tell 8 to 16 others about their dissatisfaction
• Highly networked dissatisfied customers tell thousands
• 91% of dissatisfied customers never purchase from the company again
• 68% of customers who do not return cite employee attitude
13

15. DEFINING LOYALTY> DEFINITIONS
Behaviors and Emotions Characterize
Loyalty: Example from the Auto Industry
Loyalty in the automotive industry involves many behaviors we identify intuitively
with Customer Loyalty. Auto purchases elicit emotions to a great degree.
Measures and Behaviors Identifed with Loyalty
Retention Expansion Compliance Advocacy
Repeat Buyer
. Increases Provides Info. Recommends Brand
Seeks Out Brand “Share of Wallet” Self-Services Supports Brand
Avoids Competition Pays Price Premium Complies w/Requests and Positions
Accepts Advice
Source: Derived in part from from Synovate
14

16. Trends in Loyalty and Customer Communications 2010
MEASURING LOYALTY
15

17. MEASURING LOYALTY>DEFINITIONS
Customer Loyalty is Quantified in Loyalty
Metrics
We Consider Six Common Loyalty Metrics
1. Net Promoter Scores (NPS)
2. Share of Wallet (SOW)
3. American Customer Satisfaction Index (ACSI)
4. Market Metrix Hospitality Index (MMHI)
5. Customer Lifetime Value (CLV)
6. Customer Effort Score (CES)
16

18. MEASURING LOYALTY>TAKE AWAYS
Take Aways
No single metric predicts Loyalty for every company or industry.
• A loyal customer may not be a profitable customer
• The best metric is a combination of qualities that can be weighted
• Loyalty Metrics should be comparable over time and provide a base for
the assessment of future performance
• Loyalty Metrics should decline due to inactivity - a prolonged period of
account inactivity suggests the need for remedial action
• Loyalty Metrics should correlate highly with the likelihood of future
purchases and account activity
17

19. MEASURING LOYALTY>LOYALTY METRICS
Net Promoter Scores (NPS) Show
Willingness to Recommend
The Net Promoter benchmark is popular for simplicity and claims it
correlates to company growth.
• Traditional customer-satisfaction measures omitted willingness to
recommend
• Customers are asked "How likely is it that you would recommend us to a
friend or colleague?" and then provide a rating from 0 ("Not at all likely")
to 10 ("Extremely likely")
• Avis, HP and IBM are among the many prominent adopters of NPS
18

20. MEASURING LOYALTY>LOYALTY METRICS
Share of Wallet (SOW)
• Share of wallet (SOW) measures the share of money the customer
spends on a brand in preference to other brands
• SOW is not necessarily a reliable indicator of Loyalty and works best
when there are clear choices between well established brands
• SOW is an indication of the past and therefore not necessarily an
indicator of what a customer will do tomorrow
• SOW measures behavior at a single point in time
• SOW works best as one of many Loyalty Metrics
• Financial Services firms, especially card issuers and card associations,
track SOW trends
19

21. MEASURING LOYALTY>LOYALTY METRICS
American Customer Satisfaction Index
(ACSI) has Best Predictive Value
Since 1994 ACSI is a leading benchmark used to measure changes to
satisfaction over time, which in turn drives customer loyalty.
Customer
+ = Complaints
Customer Expectations Customer
Perceived Overall Quality Satisfaction
Perceived Value
Customer
Loyalty
20

22. MEASURING LOYALTY>LOYALTY METRICS
ACSI May Have Several Disadvantages as a
Measure of Loyalty
Many marketers believe that Quality and Value directly affect Loyalty
without going through Satisfaction.
• Complaints may be driver not consequence of satisfaction
• Some believe that satisfaction is a poor intermediary
21

23. MEASURING LOYALTY>LOYALTY METRICS
Market Metrix Hospitality Index (MMHI) was
Created in 1996
MMHI is an indicator of US customers‟ satisfaction and price
sensitivity for airlines, car rental, hotels and other hospitality services.
• Data for the MMHI are gathered from a national consumer panel
• Each quarter 35,000 new interviews are conducted with travelers
• Evaluations of all major U.S. hospitality brands in all 50 states
• Index is available quarterly and MMHI „winners‟ value this designation
• In 2009 – 2010 Customer Satisfaction was steady with the hospitality
brands that best targeted Loyalty Program members leading the way
• The MMHI is a proprietary score
22

24. MEASURING LOYALTY>LOYALTY METRICS
Customer Lifetime Value (CLV): Long-Term
Measure of Customer Loyalty
Customer lifetime value (CLV) is the net present value of today's
customer's current and future contributions to profit.
• A loyal customer may not be a profitable customer
• Customers may be unprofitable because they cost too much to acquire or
too much to keep loyal, or don‟t have resources at a particular point in
time to make a purchase (autos, airlines)
• CLV measures profitability but the missing variable is share of wallet
23

25. MEASURING LOYALTY>LOYALTY METRICS
CEB Introduced a New Proprietary Loyalty
Metric: The Customer Effort Score
“The probability that a service interaction will drive disloyalty is
approximately four times greater than the chance it will create any
positive loyalty impression.” - Conference Executive Board
• The CES shows a strong negative correlation to loyalty
• The more effort a customer puts forth in a service interaction, the less
likely they are to be loyal
24

26. Trends in Loyalty and Customer Communications 2010
FORCES IMPACTING LOYALTY
25

27. FORCES>DEFINITIONS
External Forces Can Have a Major Impact on
Customer Loyalty
Three Important Forces Shape Customer Loyalty 2009 - 2010
1. The Economy
2. Regulation of Financial Services
3. Technology (Web 2.0)
26

28. FORCES>TAKE AWAYS
Take Aways
• The declining economy has impacted on Loyalty and leading brands
focused on Loyalty Members and received more than 50% of their
revenues from 25% of customers (customer segmentation works)
• In cards, the largest loyalty program segment, the number and use of debit
cards surpassed credit cards in 2009
• Regulatory changes in 2010 that impact Financial Services that provide
more opportunities for opt-outs and fee hikes require a Communications
Strategy
• Technology changes (Web 2.0) in 2010 mean that many Loyal Customers
will take a brand with them through iAPPS, Tweets, RSS and social
networking updates
27

29. FORCES>ECONOMY
When Consumers Feel Less Wealthy there
are Broad Implications for Loyalty Programs
Some key indicators mean that consumers cannot borrow and
consume as they have in the past due to a lack of debt capacity.
• Modest or slow growth of the US economy
• High unemployment
• No debt capacity among many consumers and businesses
• Falling housing values and rising foreclosures limit home equity
borrowing
• Wall Street is edgy -- declining 401s reduce savings by as much as 40%
• Possible shift away from consumption-oriented growth to more
investment oriented growth
• Shift away from Credit card use to Debit cards and even cash
28

30. FORCES>ECONOMY
A Slow Economy Makes Loyalty Members
More Price Sensitive
Pricing 2010
Proportion Willing to Pay for Rewards Card by Category (Percent)
Rewards Category $0 $1 – $19 $20 – $29 $30+
Airlines 57% 9% 8% 22%
Auto / Gas 91% 3% 2% 2%
Cash Rebate 92% 4% 2% 2%
Merchandise 93% 3% 1% 1%
Blended 84% 4% 5% 3%
Lifestyle 91% 5% 2% 1%
General T&E 71% 8% 6% 12%
All Others 87% 6% 2% 2%
Source: TowerGroup
29

31. FORCES>REGULATIONS
Banking Regulations Beginning in August
2009 Impact on the Largest Loyalty Segment
Well-designed landing pages can turn reporting of regulatory change and
fee hikes into an opportunity to promote Loyalty by capturing and mitigating
the reasons for opt-outs.
• 45 days notification of changes to credit card accounts - previously 15
days' notice required unless customers defaulted on accounts
• 21 days to pay monthly balances without threat of late fees or penalties
• Opt-Out from interest rate hikes and fee increases and the ability to
cancel accounts while paying off balances under older interest rates
• Restrictions on rate hikes, bans on marketing credit cards to young adults
and gift card regulations took effect beginning in February 2010
• The Consumer Financial Protection Bureau approved in August 2010 has
broad powers to enforce and interpret credit card regulations
30

32. FORCES>REGULATIONS
Milestones in Legislation that Impact Loyalty
Aug 2009 July 2010 Aug 2010 Dec 2010
Credit card issuers Federal rules on unfair Credit card issuers must Comptroller to submit
must give 45 days„ or deceptive credit card reduce interest rates to study on credit
advance notice of practices and disclosure previous levels after six insurance and debt
significant changes in take effect. month reviews of agreements with cards.
terms and give accounts that have been Deadline for Fed to
consumers 21 days to increased. Fees (late, produce first biennial
make monthly exceeding limit or other) review of cost and
payments. Cardholders must be proportional. availability of cards and
gain right to Opt-Out of adequacy of laws.
certain changes in
terms. Gift cards must be Legislation creating the
valid five years+; first Consumer
dormancy fees banned Financial Services
for 12 months. Protection Bureau.
31

33. FORCES>TECHNOLOGY
Advances in Web 2.0 Impact on Loyalty
Communications
Loyal Customers use new media and take brand info with them. The
suitability of each should be assessed for each industry and campaign.
• Blogs (e.g., LiveJournal, Typepad, WordPress, etc.)
• Microblogs (e.g.,Twitter, Plurk, Identica, etc)
• Message Board/Forums
• Wiki (sites that allow the public to make changes)
• Video/Photo Sharing (e.g.,YouTube, Flickr, etc)
• Social Networks (e.g., Facebook, Myspace, Linkedin)
• Mainstream Media Blogs (e.g., Wall Street Journal, CNN, etc.)
• Mobile Apps (iPhone)
Source: Introduction to Digital Marketing (Walter Kitchenman)
32

34. Trends in Loyalty and Customer Communication 2010
COMMUNICATIONS AND LOYALTY
33

35. COMMUNICATIONS>DEFINITIONS
Communications Strategy is Critical to
Retaining Customers
We Consider Four Aspects of Customer Communication
1. Preferred Means of Communicating with Customers
2. Some Key Terms
3. Effectiveness of Email Campaigns 2010
4. Impact of Opt-Out Rates on Campaigns Over Time
34

36. COMMUNICATIONS>TAKE AWAYS
Take Aways
Opt-out rates for major industries promoting Loyalty is about 2.1% and can
be lowered by testing alternative Communications Strategies and content.
• Email is a very cost effective means of contacting Loyal Customers and
preferred by more than 80% of CMOs
• The Retention Rate (RR) should be above 95% (The amount of opt-ins
less the number that have opted-out)
• A high Frequency of Mailings is expected to produce a high opt-out rate
• Opt-outs may result from poor creative content
• Leaders focus on and test an individual campaign's trend and step back
and look at the big picture of all campaigns over time
35

37. COMMUNICATIONS>DEFINITIONS
Used and Preferred Means of Communications
Email is preferred by marketers because of low cost, the ability to automate
targeted messages, measure results and test alternative approaches.
Medium or Format % Using % Preferring Likely Trend
Web Sites (Corporate & Landing) 60 45
email 60 84
Word of Mouth 47 n/a
Point-of-Sale 46 n/a
Direct Mail, Statements, Inserts 42 51
Customer Service/Sales Reps 39 25
Dedicated Sites (Loyalty Program) 60 32
SMS Texting 8 24
Social Networks 8 16
iAPPS 5 n/a
Note: Based on 300 CMO responses across diverse industries .
Source: Extrapolated from 2009 CMO Council data
36

38. COMMUNICATIONS>DEFINITIONS
Some Key Terms
• Open Rate: Number of emails opened divided by the number of emails
delivered (multiply by 100 to express the result as a percentage)
• Click-Through: A prospect takes an action and clicks on a link
• Click-Through Rate: Number of responses divided by the number of
emails opened
• Hard Bounce/Soft Bounce: A "hard bounce" indicates a permanent failure
due to a non-existent address or a blocking condition by the receiver; a
"soft bounce" indicates a temporary failure due to a full mailbox or an
unavailable server
• Unsubscribe: Canceling a service (e.g., an email newsletter or inclusion
on a mailing list)
37

39. COMMUNICATIONS>EFFECTIVENESS
Effectiveness of Email Campaigns 2010
Average Open, Click, Bounce and Abuse Complaint Rates by Industry (%)
Industry Open Click Soft Hard Abuse Unsubscribes
Rate Rate Bounces Bounces Complaints
Financial Services 20.9 2.5 2.8 4.0 .06 .03
Retail 27.6 5.8 1.5 2.8 .08 .42
Airlines & Travel 25.0 5.0 2.2 3.7 .10 .40
Grocery Stores 36.6 7.9 .84 2.0 .09 .63
Hotels 27.5 7.2 2.9 5.3 .08 .50
Restaurants 26.2 3.4 1.3 3.4 .08 .41
Source: Extrapolated from MailChimp‟s reporting of these rates based on 233 million emails sent in different campaigns 2009-20010
38

40. COMMUNICATIONS>EFFECTIVENESS
Even a 2.1% Opt-Out Rate Should Prompt
Efforts to Improve Communications
On an annual basis, assuming 13 campaigns, a 2.1% Opt-Out rate per
campaign will yield a 45% opt-out/invalid rate.
Example of a Campaign Beginning with 10,000 potentially Loyal Customers
3 Mos Out 6 Mos Out 9 Mos Out 12 Mos Out
10000 7500
become become 6500 5800
7500 6500 become Becomes
5800 5500
45% Effective Opt-Out Rate
Source: Numerical example is extrapolated and derived from data included in the MineThatData Newsletter March 2007
39

41. Trends in Loyalty and Customer Communication 2010
IMPROVING LOYALTY
40

42. IMPROVING>DEFINITIONS
Communication Tools are Used to Engender
Loyalty
We Consider Five Aspects of Improving Customer Loyalty
1. Rewards Programs
2. Traditional Communications Programs
3. Innovative use of Web 2.0 to Engender Loyalty
4. Use of Loyalty Solutions IT for Segmentation and Targeting
5. Importance of Digital Marketing in 2010 and Beyond
41

43. IMPROVING>REWARDS
Loyalty Models Focused on Rewards Become
Ubiquitous (Especially in Financial Services)
Competition
Model Description Advantages Disadvantages
Proprietary Rewards Programs • Control • Cost
Rewards Programs sponsored by a Bank that • Solution flexibility
offer a blend of from Fixed cost
Merchandise, T&E and / or structure
Cash Back Rewards
for spending.
Co-Brand: General T&E and Airline • Targeted • Dependence on
Airlines / T&E programs that have linked • Shared promotion Partners
Rewards Programs Travel Rewards with costs • Need for market
card usage. focus is heightened
Retail Private Label or Co-Brand • Targeted • Mixed ability to
Rewards Programs Programs that attempt to • Shared promotion capture general
capture lion's share of costs with Spend
category Spend. Co-Brand partner
• Transaction data
Source: TowerGroup, MasterCard Advisors
42

44. IMPROVING>COMMUNICATIONS
Traditional Communications Programs to
Improve Loyalty Work and Improve Retention
When an economic downturn limits sales, Lifecycle Management Strategies
keep Loyal Customers involved with the brand.
Five Traditional Means to Keep in Touch with Customers
1. Program Announcements that display news and program alerts at
specified times to specified participants
2. Collateral Materials such as enrollment forms, FAQ sheets, member
cards, brochures and inserts
3. HTML email and promotional Web sites
4. Newsletters – both print and e-mail
5. Personalized direct mail (ex. - welcome letters, printed statements)
43

45. IMPROVING>COMMUNICATIONS
Innovative Strategies that Take Advantage of
Web 2.0 also Engender Loyalty
Landing pages communicate regulatory changes and prevent opt-outs by
offering alternative products or reduced contact frequency.
• Web Content Management provides 24/7 control over content and messages
• Landing Pages can be personalized and used intelligently to reduce opt-out
rates at the margins
• Integrated email tools deliver customers personalized "blast" HTML
messages and event-triggered emails (i.e., "Congratulations" for reaching a
goal, or “you haven‟t used your frequent miles, act now”)
• RSS Feeds, Tweets, iAPPS provide for Customer Communication that is
faster than email
• RSS Feeds, Tweets, iAPPS provide for recap messages that summarize
weekly communications or extend new offers
44

46. IMPROVING>SEGMENTATION
Leaders Segment Customers and Conduct
Highly Targeted Campaigns Using IT
• Customers‟ interests and transactional behavior are analyzed in order to
group them into segments
• Analytics are used to test campaigns, identify trends and compare groups
or segments
• Demographic and transactional behavior is used to target segments
across multiple channels both traditional and emerging (e.g., emails,
personalized landing pages, RSS feeds and Tweets)
• Loyalty Solutions that perform these functions are developed in-house,
acquired from third party vendors, hosted at third parties and accessed in
a ASP model, or can be outsourced
• US$2 billion+ is spent annually on Loyalty Solutions and the Programs
they support
45

47. IMPROVING>SEGMENTATION
Targeting Increases levels of “Relevancy” to
Maximize Returns in a Bad Economy
PURCHASE-BASED CLUSTER ACTUAL CHANNEL
SEGMENTATION PROFILING PREFERENCES ACTIONS
What are they like? How best
Which segments? Where do they shop?
What do they like? to reach them?
Define segments Use Analytics to Leverage Merchant Design integrated
based on the types understand: Aggregation plan to target right
of transactions Capabilities to message to the right
• Demographics
and/or purchases examine Spend: customer through the
• Attitudes right channel.
• 7,000+ merchants
• Preferences • Mail or Email
• Preferences
• Propensity to Buy • Web
• Patterns
• RSS
• Combinations
• Tweets
46

48. IMPROVING>DIGITAL
Digital Marketing Matters in 2010 and Beyond
Online spending is only about 5% of ad dollars today but is projected to
reach 21% of US marketing dollars by 2014 (US$55 billion).*
• Two thirds of US consumers are online
• Mobile and internet technologies are being adopted even faster outside the US
• Digital Marketing campaigns are measurable (assuming data is reliable)
• Online tools and analytics are better for direct response
• Online campaigns may generate more immediate sales
• Online tools and analytics are less expensive than traditional methods
• Numerous Third Party Solutions are available to help manage digital
campaigns, determine their effectiveness and target dollars
Source: Forrester Research,* Introduction to Digital Marketing (Walter Kitchenman)
47

49. Trends in Loyalty and Customer Communication 2010
SUMMARY
48

50. SUMMARY>DEVELOPMENTS
Key Developments
• Economic downturn leads successful brands to focus on Loyalty Program
Members, who in turn provide more than 50% of revenues
• Small improvements at the margin yield large results over the course of
many campaigns (e.g., a 2.1% opt-out rate may be 45% annualized)
• In Cards, the biggest sector in terms of Loyalty Programs, Debit surpassed
Credit in the US in 2009 and are major part of Rewards‟ universe
• Regulatory changes and possible fee increases impact Cards and
Financial Services require a Communications Strategy to limit opt-outs via
well-designed inserts, email campaigns and targeted landing pages
• Emerging apps like iAPPS, Tweets and social networking keep companies
involved with customers until economic circumstances improve
• Online channels dominate expected investments as most marketers plan
to use digital marketing and networking tools to grow Loyalty Programs
49

51. For More Info –
http://www.linkedin.com/in/wkitchenman
Walter Kitchenman is an author and consultant on strategic issues in financial services. He
spent more than a decade as an international banker in Latin America and Europe and helped
launch the leading boutique advisory firm covering the strategic use of IT. Most recently he was
VP in charge of knowledge management at MasterCard Worldwide. He has a graduate degree
from Johns Hopkins School of Advanced International Studies (SAIS) and BA with special
honors from the Elliot School of George Washington University.
2010
Walter Kitchenman
wkitchenman@hotmail.com

52. Trends in Loyalty and Customer
Communication 2010
Defining Loyalty, Measuring Loyalty, Optimizing Loyalty
September 2010
Walter Kitchenman
wkitchenman@hotmail.com