Professional Documents
Culture Documents
November 2010
powered by Loyalty 360
YOU
& What Army? Communicate
In-the-Moment
Your Branding
Moment of Truth
Measure your
Customer
Centricity
Evolution of business. Meet the evolution of promoting it.
CONSUMER PROMOTIONS | SALES INCENTIVES | BUSINESS GIFTS | EMPLOYEE REWARD & RECOGNITION
InteliSpend™ can make everything about how you attract, acquire, reward and keep your customers
easier than ever. Our broad range of flexible, customizable prepaid products and services makes
things you never thought possible, effortless. From incredibly simple to ridiculously complex,
today’s evolving businesses need promotions that break through. And now they have them.
InteliSpend.com 1.888.234.7725
Award cards are issued in connection with loyalty, award or promotion program. Award card terms and conditions apply. © 2010 InteliSpend Prepaid Solutions, LLC
The Universal Visa Prepaid Card is issued by MetaBank™ pursuant to a license from Visa U.S.A. Inc.
Loyalty Management™ • LOYALTY360.ORG
This Month in
NOVEMBER 2010 VOLUME 2 NUMBER 3 WWW.LOYALTY360.ORG
An Interview with
DEPARTMENTS
Wyndham’s Robin Korman
6 What’s on Loyalty360.org
Behind the Brand/People
14
8 Letter from the Editor
pg
10 Contributors
pg 20
Loyalty Management™ •NOVEMBER 2010 3
SAS® Customer Intelligence
Campaign Management and Optimization | Online Analytics | Real-Time Decision Management
Social Media Analytics | E-Mail/Mobile Marketing
www.sas.com/retention
for a free white paper
SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Other brand and product names are trademarks of their respective companies. © 2010 SAS Institute Inc. All rights reserved. 56265US.0610
Loyalty Management™ • LOYALTY360.ORG
This Month in
NOVEMBER 2010 VOLUME 2 NUMBER 3 WWW.LOYALTY360.ORG
TECHNOLOGY,
TRENDS & REWARDS
34 Mobile Marketing: Top 10 Technology Strategies All
Marketers Must Know
How do you create Robert Carroll, SDL
Loyalty Management
You and
Editorial & Production Team
Erin Raese - Editor in Chief
What
Mark Johnson - Contributing Editor
Kathleen Ostoich - Graphic Designer
Army?
Crescent Printing Company - Print Production Marshaling the Troops
Loyalty 360 Team
toward Merchant
Mark Johnson - President & CEO Adoption of POS
Erin Raese - COO Mobile Commerce
48
Amanda Chasteen - Manager, Marketing Operations
Kathleen Ostoich - Marketing Manager
Annie Lerner - Marketing Coordinator
Contacts
pg
Article Submissions & Advertising: Erin Raese
erinraese@loyalty360.org or 513.360.8680, ext. 210
As a “voice of the customer” focused publication we 46 Closing the 21st Century Service Capability Gap
want to hear from you–our customers. What would Christoph Goldenstern, Kepner-Tregoe
you like to see included in these pages? Share your 48 You and What Army?
thoughts on articles and ideas for content.
Kelly Passey, Access Development
This is your platform. We would like to hear from you.
50 Loyal Insurance Customers: An Untapped Market
Write us at: mailbag@loyaltymangement.com Sandra Zoratti & Lee Gallagher, InfoPrint Solutions
© 2010 Loyalty 360, Inc. and/or its Affiliates. All Rights Reserved. 52 What We’re Hearing
Reproduction and distribution of this publication in any form without prior written permission is
forbidden. The information contained herein has been obtained from sources believed to be reli- Mark Johnson, Loyalty 360
able. Loyalty 360 disclaims all warranties as to the accuracy, completeness or adequacy of such
information. The opinions shared are those of the contributing uthors and not necessarily reflec-
tive of Loyalty 360 and/or its affiliates. Loyalty 360 shall have no liability for errors, omissions 54 Loyalty Program Profile
or inadequacies in the information contained herein or for interpretations thereof. The opinions
expressed herein are subject to change without notice. Best Buy’s Reward Zone
Loyalty Management™ •NOVEMBER 2010 5
LOYALTY 360 ON THE WEB
what’s on loyalty360.org
Loyalty 360 brings you the best of the best in loyalty marketing
and supports your customer strategy needs. Some of the tools we offer include:
Medallia As always, we want to hear from you. Please continue to share your insights,
PaP Solutions topics you’d like to learn more about and your stories (your peers want to hear
from you!).
RiteAid
Sincerely,
Mobius
CIS Solutions
Georgia Pacific
Erin Raese
Editor-in-Chief
Loyalty Management
erinraese@loyalty360.org
P.S. Be sure to register for the 2011 Loyalty Expo—this year March 20 – 22 at
the Hyatt Grand Cypress in Orlando, FL—Early-bird registration ends at the
end of the year. Looking forward to seeing you there!
Lee Gallagher
Robert Carroll
Annette Gleneicki
Render Dahiya Annette Gleneicki is Senior Director of Cus-
Render Dahiya has served as Arroweye’s CEO tomer Success at Allegiance, Inc. She has
since 2007. He previously spent nearly 20 almost 20 years of experience in designing
years at FedEx Kinko’s as a founding member, large global VOC and EFM initiatives for For-
helping to build it into a nationally recognized tune 1000 companies.
brand.
Annette Gleneicki
Render Dahiya
Kelly Passey
Robert A. Kobek Kelly, Executive Vice President of Incentive &
Robert is the President of Mobius Vendor Loyalty Services at Access Development, has
Partners. Prior to forming Mobius, Robert over fifteen years of experience in the finan-
spent more than 20 years in the direct mar- cial bank card sector with specific focus on in-
keting industry and government. He success- centive and loyalty solutions, including seven
fully launched two companies with core com- years at VISA managing Incentive Marketing
petencies in the teleservices industry. Kelly Passey Services.
Robert Kobek
C
They include food products like Quaker oatmeal, Old Spice,
Subaru, HP, Sony and others. I pick up on new brands like onsistently great quality at a reasonable price.
Visio and Kindle if they bring something special. I tend
to stick with Blackberry even though the technology is Joni Newkirk
inferior to iPhone because of embedded information and
knowledge of the device. I believe MAC is free from viruses
and hackers but will not use it because I do not see it as I am loyal to a brand when quality is consistent. Over the years I have
tried to switch some of my favorite brands to try something new, because
user friendly compared to PC. In summary I choose brands
they had more variety, lower price, etc...But I usually come back to the
and stay loyal because they fit my lifestyle and therefore
tried and true favorites, because of the quality and I know they will work
make my experience as a consumer easier.
for me. The funny thing is there are some items I am fanatic on staying
Les Deck loyal, there are others I skip around pretty easily.
Lissa Daniels
Robin Korman
Senior Vice President of Loyalty and Strategic Partnerships ,
Wyndham Hotel Group
Robin joined Wyndham Hotel Group as Senior Vice President of Loyalty and
Strategic Partnerships one year ago. She has extensive loyalty experience
in financial services and hospitality and is currently changing the face of
Wyndham Rewards, the world’s largest hotel loyalty program with 11 brands
and more than 6,500 participating hotels.
Previously, Robin was Vice President of Global Loyalty for Starwood
Hotels & Resorts, where she transformed the Starwood Preferred Guest program
from a “one-size-fits-all” point-accrual program to a customer-centric rewards and recognition program.
She has also held senior marketing roles at JPMorgan Chase and Citibank building loyalty among credit card
customers. Loyalty Management takes a closer look at the woman changing this brand—Robin Korman, SVP,
Loyalty Marketing and Strategic Partnerships.
Wyndham has over 6,500 locations under its rich acquisitions bonuses of up to three free nights and an
umbrella and its loyalty program, Wyndham extra point/$1 when used at Wyndham hotels.
Rewards, is only 6 years old. This must mean Wyndham ran a summer promotion via
a variety of new initiatives and opportunity. mobile. Have you found your customer base
We are a relatively new player in the hotel loyalty
space and we have been growing aggressively. We have responsive to mobile promotions?
8 million active members who can rack up points quickly We are just getting into mobile. For travel, it is the
as we have the most brands (11) and wave of the future since most frequent travelers are not
the greatest number of hotels to sitting in front of computers all day.
earn and redeem points.
Research showed us that loyalty
Always treat the Like many loyalty marketers, we are
trying different things, but the pen-
program members are skeptical that
they can get to reward levels quickly.
customer better etration of smart phones is in its in-
fancy in the US (only about 20%) so
We are capitalizing on our competi-
tive advantage—the most hotels to
than they expect it limits the ability to fully penetrate
your customer base.
earn and redeem—by relaunching
Wyndham Rewards with new posi-
and, when you don’t, We have done more with mobile
in China as that market is ahead of
tioning based on reward attainabil-
ity and with a new tagline, Rewards
make it right. People the US in adoption. We push pro-
motions out through our members’
Right Around the Corner. We also appreciate being mobile phones and they can regis-
ter right from their devices. We also
have a new GPS-inspired creative
look which showcases our hotel heard. send reminders texts to book and
stay during the promotional period,
brands and shows travelers who
easy it is to attain rewards because tailoring the messages depending
of our ubiquity. on whether they have made a booking.
wacky advertising which led to my decision to get an MBA We recently relaunched our website with better navi-
in international management, and then to start working in gation and new redemption options such as airline tickets
advertising agencies. Unfortunately, I started after the era and tickets to sports, music and theatrical events. We are
of the three martini lunch. exploring new opportunities in social and mobile so look
for some new things to happen there.
If you could have dinner with anyone (past or
What’s your advice for a novice loyalty
present) who would it be?
Jerry Seinfeld. I love the way he shows the insanity of marketer?
customer service situations such as the car rental compa- Data is your friend. Many creative marketers are
ny that knows how to take—but not hold—the reservation, afraid of numbers but data is the way to truly understand
the horror of air travel and the frustration of waiting for a who your best customers are—sometimes your most fre-
table at a restaurant, or buying soup from a surly deli guy. quent customers are not your most profitable (they are
His show should be the “what not to do” for any customer- often the deal seekers) and you need to understand the
focused organization and a whole night of these insights difference. Creatively, just try things (but always have a
matched control group). You never know what will work! L
Ask the
Experts
Q: Couponing, a strategy to build customer loyalty?
Loyalty Reads
EMPOWERED: Unleash Your Employees, Energize Your
Customers, And Transform Your Business
by Josh Bernoff and Ted Schadler
September 2010 | Harvard Business Review Press
You know it’s happening within your organization. Your people, armed with cheap, accessible technology, are
connecting with customers and building innovative new solutions. But who are these creative problem-solvers? How can you be one? And just as
important—how can you lead them?
We call them HEROes: highly empowered and resourceful operatives. Your company needs them because in the age of Twitter, iPhones,
Facebook, YouTube, and an ever-evolving torrent of Web information, your customers now step up to the counter armed with more data and access
than ever before, and in many cases, your company is overmatched.
In Empowered, Forrester’s Josh Bernoff—co-author of the pioneering book Groundswell—and Ted Schadler explain how to transform your
company by unleashing the mighty force of these HEROes. Like John Bernier and Ben Hedrington at Best Buy, who built an army of 2,500 tweeting
employees to reach out to customers online. Or Ross Inglis, who tapped into Internet computing resources to open an entirely new customer channel
for Thomson Reuters. Or John Stadick, who equipped 600 sales staff with iPhones and boosted profits at his construction rental company.
The truth is, one in three of your information workers already use easily accessible technologies that your company does not sanction.
Empowered gives you a prescription for embracing this covert innovation. At the heart of a HERO-powered business is a new pact between these
critical employees, company managers, and the IT department: HEROes build new solutions to meet customer needs, management sets clear rules
while encouraging more experimentation, and IT expands its role to both support and secure these business solutions.
Much have been written about the importance of customer experience. But how do you actually develop and
launch such strategy? The stories of the Ritz Carlton, Disney, Southwest and Zappos are very popular among cus-
tomer advocates. But how do you develop customer experience in your company?
These are the two core questions Customer Experience Strategy: The Complete Guide from Innovation to Execution
was designed to address. Following a close loop blueprint, the book delivers a ready to implement recipe that turns customer experience into a man-
ageable endeavor. Lior Arussy is the founder of Strativity Group, a global customer experience research and consulting firm with clients such as FedEx,
Capital One, Nokia, Crowne Plaza Hotels and Merck. Utilizing the successful methodology developed by Strativity, the book details the steps to take
and the pitfalls to avoid as you seek to differentiate your business based on customer experience. With examples of customer experience in consumer
environment, business to business relationships, employees as customers and the citizen experience, the book provide applicable guidelines to diverse
customers’ relationships.
From setting up the strategy to innovating the experience at every touch point, the book provides in depth guidelines from real time experience of
the author deploying these strategies at corporations around the world. Hot issues such as developing the business case and executive sponsorship
are receiving special attention in the book with practical ideas how to address these classic challenges. Especially fascinating is one of the case studies
detailed in the book in which a utility company transform their performance from a negative 30 net promoter score (NPS) to appositive 54 NPS in 12
months. For those struggling with moving the satisfaction needle, this and other case studies will be very useful.
Customer Experience Strategy is an indispensable tool for every manager serious enough to actually move from talking to doing. For managers who
attempt to transform their organization to deliver consistent, delightful experiences, the book will become a critical tool for success.
There’s no question that the Internet has changed relationships. As a result, they wield enough online
the way we do business—especially when it comes to influence to build up or bring down a business’s repu-
marketing. Consumer environments are short on trust tation. This book will show you how to build profit-
and populated by consumers who are cynical, savvy and able relationships with trust agents, or become one
informed. Though it’s easier than ever to reach your cus- yourself.
tomers, it’s less likely that they’ll listen. Today, the most In an online world defined by its transparency, be-
valuable online currency isn’t the dollar, but trust itself. coming a trust agent is no easy task, but once you’ve
At the same time, social networks and personal established your reputation, you can build influence,
connections have far more influence on consumers share it and reap the benefits of it for your business.
that your marketing messages ever will—unless your When you’ve learned a trust agent’s secrets, your
business knows how to harness them. In Trust Agents, words can carry more power and more weight than
two social media veterans show you how to tap into the any PR firm or big corporate marketing department.
power of these networks to build your brand’s influence, Learn to use the power of the Web and social net-
reputation, and profits. works for your business now. Trust Agents gives you
Trust agents aren’t necessarily marketers or sales- all the tools and strategies you need to do it the right
people; they’re the digitally savvy people who use the Web to way—honestly, effectively, and profitably.
humanize businesses using transparency, honesty, and genuine
Two social media veterans show you how to tap into the
power of these networks to build your brand’s influence,
reputation, & profits.
PREDICTABLY IRRATIONAL: The Hidden Forces That Shape Our Decisions
by Dan Ariely
April 2010 | Harper Perennial
Do you know why you still have a headache after taking a one- This sly and lucid book is not about
cent aspirin, but why that same headache disappears if the aspirin
your grandfather’s dismal science.
costs fifty cents? Do you know why recalling the Ten Command-
ments reduces people’s tendency to lie, or why honor codes are Ariely’s trade is behavioral economics,
actually effective in reducing dishonesty at the workplace? Do you which is the study, by experiments,
know why, after doing careful and extensive research on which car of what people actually do when
to buy, a random meeting with someone who had an awful experi-
they buy, sell, change jobs, marry
ence with that car changes your decision? Why do we make deci-
sions contrary to our better judgment? What is better judgment?
and make other real-life decisions…
Predictably Irrational challenges us to ponder these questions [Predictably Irrational is] a concise
and demonstrates how irrationality manifests itself in situations summary of why today’s social
(often very peculiar and hilarious situations) where rational thought science increasingly treats the markets-know-best
is expected. We all succumb to irrationality, it s about time we find
out how it affects our daily lives in a significant way. In this astound-
model as a fairy tale.
ing new book, groundbreaking in scope and totally original, Dan —David Berreby, The New York Times
Ariely cuts to the heart of our strange behaviors and presents out-
standing material that will keep every reader transfixed. People will make the same types of mistakes over and over, in a predictable
Predictably Irrational comes from Dr. Ariely’s work as a behav- manner, because the behaviors have structural origins. So recognizing them
ioral economist, but it’s not for economists. Well, it is, but mainly and understanding them offers us a way to do better. And that’s the aim of
to the extent that it can help them the same way it can help anyone. this book: to leave you with new knowledge of human nature, derived from
If the behaviors that skew our judgments were random or sense- a wide range of scientific experiments and findings, that will help you make
less, we’d be hard put to sort them out and make better decisions. better decisions in your personal life, your business life, and in the choices we
But research has shown that our irrationality is, in fact, systematic. all need to make about our collective welfare.
P redictability is reassuring. It’s also totally boring. Think about it—when did you last you call IHOP to see if they
still served pancakes? Or had any doubts whether the fall TV lineup would include a reality show where a houseful of
beautiful people competes for televised validation? Some things are just a sure bet. The upside of the predictable things
in life is that we don’t waste any brain power worrying about them. The down side is…we don’t waste any brain power
paying attention to them, either. For anyone trying to influence human behavior, that’s a problem.
Game designers have intuitively known this for centuries. Randomness, or “chance,” is woven into most great game
experiences, through the draw of a card or a roll of the dice. Randomness is novel, and novelty always gets our atten-
tion and keeps us interested. The trick, of course, is balancing the random with the predictable to create a compelling
experience, but not a frustrating one. As Carnegie Mellon professor and game designer Jesse Schell puts it:
“Risk and randomness are like spices. A game without a hint of them can be com-
pletely bland, but put in too much and you overwhelm everything else.”
But game designers aren’t unique in their ability to understand how humans think. Thanks to the growing fields of
neuroscience and behavioral economics, loyalty marketers now have a larger window into how human beings connect
with what’s important to them. We’re coming to understand that humans are more than rational. Our brains are wired
for social experience more than any others. We are biologically driven to engage in competition and raise our status
amongst peers. We enjoy playing and learning through play. Rewards motivate and intrigue us. We desire to master
skills, and we set goals to achieve that mastery. When we find these elements in an experience, we “play” harder, lon-
I t is very hard for me to imagine a discussion surrounding customer care is really necessary. But for some
reason all businesses swat at the issue as if it is a breaking story on a major news network.
Concentrating on what it takes to ensure a pleasant customer vacation experience is a natural part of busi-
ness, at least I think it is. But there are other areas we touch, or should touch, our owners and guests.
Often “care” is confused with service, which is, no doubt, a part of caring for a customer. Caring for a cus-
tomer goes beyond customer service. Customers are assets that should be protected with every fiber of the
company’s being.
First, the definition of a customer lies in the attitude of the beholder. Dictionary.com defines it as:
cus·tom·er [kuhs-tuh-mer] –noun
1. a person who purchases goods or services from another; buyer; patron.
2. Informal. a person one has to deal with: a tough customer; a cool customer.
I will throw in a 3rd definition:
Those who provide goods or services on behalf of others. syn. Employees.
Adam Smith conjured up the notion of supply sale and a light bulb should go off in the head of
and demand in his 1776 publication The Wealth of every property manager in timeshare that the bud-
Nations and Theodore Levitt bolstered the argu- get dedicated to the care and feeding of an existing
ment in his 1960 Harvard Business Review mani- customer is most likely far too low.
festo (Marketing Myopia) “that companies should And, there are efficient tools that can be used to
stop defining themselves by what they produced continue to touch customers who cost nothing, or
and instead reorient themselves toward customer very little at all. Most fall into the category of com-
needs.” munications. Talk to them, and let them talk back.
Adam Smith’s premise was that increasing rev- Ask questions and respond to the answers, provide
enues and decreasing expenses results in a profit. information, good information, not “so what” stuff.
It was Benjamin Franklin that took that premise The vehicles are there; mail, phone, internet,
and installed it into what we know as capitalism in and on site interaction should all meld with the
the United States. vacation experience to create the warm fuzzy for
If the premise that it takes five times the re- our customers that will decrease default rates, in-
sources to gain a new customer than it does to keep crease visits, decrease complaints and increase
one is correct, the following information is meant compliments. What could be wrong with intelli-
to establish a new or renewed attitude toward gent and planned efforts to find out what they are
timeshare owners, guests and employees. thinking instead of talking to ourselves about what
If a timeshare tour hovers around $500 then it will and won’t work?
seems logical to point at least $100 per customer to As a matter of respect for this forum, a com-
take care of their needs. Add to that the cost of the mercial about a product we offer is inappropri-
refer; if they hate it, they won’t refer. •The vacation experience begins If you don’t know how, find
(The same is true in ensuring main- before check in. The tone of the someone who does. Just as you
tenance fees and other payments are experience starts in your call can’t tell the players without a
made in timely fashion). center when the owner, exchang- program, you can’t know what
Today the acquisition cost for er or guest calls to inquire and/or needs fixing unless you identify
new business is the same. There is make a reservation. If your man- the gaps in service.
no decrease in the per tour expense, date is to “save on seconds”, the •Measure, consistently, con-
just fewer tours. The decrease in caller knows and will leave the stantly and regularly.
the variable side of the ledger is be- experience with a lukewarm per- Do more of what pops up as
cause we are selling less, being good and less of
but the cost per sale is
the same. There is no The notion that; “if it ain’t broke, what is bad. Ask genuine
questions regularly and
increase in profit, just
holding our own until don’t fix it” is old, tired and wrong. consistently. Act on the
answers.
things get better and the
bankers tell us it’s ok to Imagine the cave dweller who •Customers and em-
ployees are the center
go back to the old ways
of marketing and selling. slipped on a rock and figured out of your universe. All
good things sprout from
And, the
(customer) is getting
owner
that he could invent a ball bearing, them and all bad things
fester from them.
creamed with offers that
will eventually lead to a
then alas, the wheel. Neither of •The speed of light is
442,000,000 miles an
dry well. While some-
what valuable today,
them budget items. hour. Coincidently
that is the same speed
there are a finite number bad new travels.
of owners (4 million +/- depending ception, at best. Good news moves at the speed of
on who you ask). •Dress well, everywhere, every- a snail relaxing.
The proper care and feeding of a one, every time. The next per- •There are no shortcuts to care.
customer will produce referrals, in- son to call you or walk in the door Every time you think there is,
crease traffic at a resort, and cause is a VIP. Get rid of clutter, expect you end up breaking a rule and
money to flow. It minimizes com- everyone to have shined or new you will be reminded why it was
plaints and creates efficiencies in shoes regardless of their function a rule in the first place.
areas you may never have thought of and there is never an acceptable •Mind your etiquette. Answer
(like savings on your toll free lines). time when property and personal every email and return every call.
Try these “rules of thumb” as a hygiene should not be impecca- Be responsive. Learn to write
guide and add them to what you al- ble. Be mindful of language and in business speak. Teach your
ready have to ensure the proper care grammar. employees to write in business
and feeding of your customers. •It is the little things. The devil is speak. Please and thank you go a
not in the details, the answers are very long way.
•Treat employees like customers. in the details. And, finally, none of us knows it
There is a direct correlation be- •Quality is a path, not a result. all. Keep learning, keep caring and
tween employee satisfaction and Only you can define the quality stop talking to yourself. Instead of
service delivery. Employees who standards and only you can in- swatting at the issue do something.
like their jobs will better serve sist they be met and only you can Stop trying and take action.
customers and stay on the job decide on the commitment you In the words of Charlie Weis,
longer thereby decreasing cost make to maintain and grow on head football coach of Notre Dame,
and increasing revenue. the quality path. “yesterday is over, tomorrow may not
•Satisfied customers are not nec- •Document all your processes. come, there is only today”. L
essarily loyal customers.
A s much as $40 billion/month is spent in the U.S. on marketing—to build brand recognition, differentiate brands from their
competitors, and ultimately win sales. Much of this well-honed and refined corporate branding, marketing and advertising—ranging
from more traditional outreach such as newspaper and television advertising to online advertising and social media marketing—is
being implemented to drive consumers to take action. We want consumers to visit our stores and websites, to call us and e-mail us,
and ultimately spend money with us.
to ensure that they make it to their final hit (extremely popular with the retailer’s tar- provide the ultimate brand experience.
destination. The result? 2009 was South- get demographic) heard by everyone pass- For instance, if your agents are being
west’s 37th consecutive year of profitabil- ing within 25 feet of the same brand’s retail measured—and potentially compensated—
ity. outlet in the local mall. partially on average handle time (AHT),
they are literally being rewarded for getting
Replace your call center agents with brand Mix up your metrics
your customers off of the phone as quickly
advocates Is your contact center being evaluated
as they possibly can. Even if every call ends
Does your front line have a true pas- on metrics conducive to a positive brand ex-
with “Is there anything else I can help you
sion for your brand and what it stands for? perience? Often, contact centers measure
with?” they don’t really mean it. They want
Your contact center is your front line—the success based on key performance indica-
to end the call and move onto the next one.
first, and oftentimes only, contact that tors (KPI’s) such as average speed of answer,
In contrast, there is a direct correlation
your customers have with your brand. In
between first contact resolution and over-
order to deliver upon your brand promise,
all customer satisfaction. A simple shift
your front line must have not only a clear
in focus from AHT to that of first contact
understanding of, but authentic passion
resolution can dramatically shift the overall
for, your brand. Passionate contact center
brand experience your contact center pro-
agents are true advocates of your brand—
vides.
both serving your customer’s immediate
needs and leaving a lasting impression that Memorable Customer Experiences
will strengthen customer loyalty and truly Produce Memorable Results
differentiate your brand from that of your It is hard to turn your customer service
competitors. center into a branding powerhouse over-
night, especially if you have historically
It’s the little things that make a brand
looked at your contact center as a cost
Do you think of the little things that
center, and not the strategic business unit
give your customers a complete brand ex-
that it can be. An enterprise-wide shift to
perience? If you spend hours debating the
a customer experience more in line with
font used in your corporate email signa-
your brand promise, versus a customer ex-
ture, take a few minutes to think about the
perience more in line with a contact center
little things that add up to really express
that operates like a well-oiled machine can
your brand. Such as hold music. I recently
be a challenge, as this is a dramatic shift
called the toll-free number of a very trendy
average handle time, cost per contact, and in mindset for many companies. However
retailer in order to purchase some back-to-
first contact resolution. While these metrics time and time again, a dedication to creat-
school clothing for my niece—and spent
are certainly indicative of a contact center ing memorable customer experiences pro-
several minutes listening to smooth jazz
functioning as a well-oiled machine, they duces memorable results—just ask South-
while on hold. This was a very different mu-
aren’t necessarily those that are going to west Airlines. L
sical experience than the latest Lady GaGa
The cost of sending irrelevant messages is increasing. People aren’t just ignoring
you anymore, they are opting out and disengaging from your brand. In fact, 54% of
customers surveyed have ended a brand relationship as a result of poor communications1.
Learn how you can activate dormant or past customers, retain and engage
current ones, and cross-sell and up-sell your best ones through Precision
Marketing solutions from InfoPrint.
Contact us today to learn more about our low-cost assessment and pilot
programs, and see the ROI for yourself.
Ricoh, InfoPrint, and the InfoPrint logo are trademarks or registered trademarks of Ricoh Co., Ltd, in Japan, the United States, and other countries, and are used under license from the trademark owner.
InfoPrint Solutions and InfoPrint Solutions Company are tradenames of InfoPrint Solutions Company, LLC. 1http://www.outputlinks.com/html/news/infoprint_CMO_Council_012510.aspx
FEATURES
In-the-Moment
Communications
Loyalty Programs &
Today’s Mobile Consumer
by Bob Gold, Gold Mobile
Mobile Marketing:
Top 10 Technology Strategies
All Marketers Must Know
by Robert Carroll, SDL
Loyalty in a
Fickle Age
by Render Dahiya, Arroweye Solutions
Loyalty
Innovation
PRODUCTS,
ADVANCEMENTS,
& TECHNOLOGIES
SocialTwist Square
In today’s competitive market, savvy brands are us- Accept Payments. Everywhere.
ing social media to help boost customer satisfaction
Square, an application that works
and increase customer loyalty.
with a physical reader that enables cash and
SocialTwist, www.socialtwist.com, which enables marketers to turn social media into so- card payments on any device with and audio in-
cial marketing, has helped major brands such as Barnes & Noble and Jamba produce a put jack, including your mobile phone, helps you
highly valuable ROI, cementing relationship ties with customers. SocialTwist harnesses the build your business in real-time. Take payments,
power of referrals—a key driver in consumer purchase decisions—to help marketers con- see how much you’ve made for the day, browse
nect in a measurable way. SocialTwist’s flagship Tell-a-Friend (TAF) suite of services pro- all of your receipts, set up virtual shelves on the
iPad.
SocialTwist relies on the fact that no algorithm can Square is focused on providing the best pay-
ment experience in the world, and that includes
match human filtering, because a friend knows cost. While taking cash is always free and easy,
accepting cards can be confusing and costly.
the interests and purchasing patterns of his other That’s why Square has simple pricing and no hid-
den fees, monthly charges, or contracts. Square
friends. is constantly working with their partners to sim-
plify and lower costs associated with accepting
card payments.
mote highly viral—and trusted—word-of-mouth marketing campaigns online by combining
While the payment abilities add ease and
marketing messages, the power of referrals and the social platforms customers use most,
mobility to business operations, the behind-
from email to the most popular social networks.
the-scenes functionality of Square is practi-
While traditional sharing products are simple URL link pass-alongs more focused on cal and efficient. Your receipts are sent to your
data mining and behavioral targeting ads that capture user preferences and their shared email, and through the application, you can see
data, SocialTwist relies on the fact that no algorithm can match human filtering, because all of them in one simple view. You can browse
a friend knows the interests and purchasing patterns of his or her other friends. TAF lets through photos of every item you bought and
savvy marketers leverage their users’ influence on their friends and spread their product share them with your friends, as well as set up
message while protecting consumer data privacy and maintaining the three-way trust re- “shelves” of your products, complete with names,
lationship between the brand, its users and their referred friends. TAF’s ability to improve prices, pictures and descriptions when you use
click-through to sites, generate new revenue and promote virality is proven and measurable. an iPad. Square automatically builds your own
SocialTwist has serviced over 73,000 publishers and garnered over 4.5 billion impressions. mobile store.
1.888.3ACXIOM
www.acxiom.com/customerloyalty
BEST BUSINESS PRACTICES
Implementing and
Measuring a Customer
Centricity Framework
by Carlos Dunlap, Kobie Marketing
Every company wants to make measuring customer satisfaction and loyalty a top priority. They all talk
about it; most of them do it. But are they doing it right? To help answer that question, this article provides
an overview of just one of the very elements of a successful, enterprise-wide Voice of the Customer (VOC)
program: customer data—both survey and non-survey.
Types of Customer Data more, although the actual number of questions seen by the
Customer feedback comes in many forms, all of which can respondent may be much less due to skips and branching
be categorized as either structured or unstructured. Struc- (as a result of questions asked or what’s in the customer
tured feedback comes from customers who receive a survey file that can be linked to the survey on the backend).
and answer the questions posed within that survey. Examples Relationship surveys complement or supplement trans-
of unstructured feedback include customer posts to a blog, actional surveys; they can often identify areas where you
Facebook, Twitter, or elsewhere that your company has not might require further drilldown through transactional sur-
solicited or prompted. veys. Relationship surveys can also serve another purpose:
they can help identify issues or preview your customers’
Structured Feedback likelihood to renew a contract. For this particular purpose,
Until recently, structured feedback was the main way that the survey is served up once a year.
companies could hear from their customers about their expe-
riences. Sure, customers could write letters or emails or drop Competitive Surveys
a card in a suggestion box. But let’s be real here. Those were When designing a VOC initiative, avoid viewing insights
all just “cosmetic” and “feel good.” Customers knew they had about your company in a vacuum. Having an understand-
an outlet, but did companies really care about that feedback, ing of your placement in the marketplace relative to your
respond to it, or change processes because of it? Probably not. competitors by identifying your customers’ consideration
What follows is the various types of structured feedback, sets and competitive perceptions, combined with the mea-
including what they are and what their place is in the overall surement of their relationship with you, is quite powerful.
VOC initiative. We won’t address every possible form of struc- Two different approaches can be taken to collect com-
tured feedback, but we’ll hit the big ones that should be part of petitive insights, including: (1) asking your customers to
any VOC effort. evaluate competitors they have done business with by
asking a similar, but often limited set of questions they
Relationship Surveys answered about your company, or (2) conducting a blind
Relationship surveys are conducted to get a point-in- competitive survey among your target audience. The lat-
time read on customer satisfaction, loyalty, and engage- ter, which is the preferred and more-robust (yet more-ex-
ment and provide high-level perceptions of your company. pensive) approach, typically entails renting a list of names
These surveys are conducted quarterly, semi-annually, or from a list or panel provider, asking respondents to identify
annually and contain questions that span the customer ex- companies they have worked with, and then having them
perience with various departments or touchpoints. These evaluate their experiences with each of them (or some sub-
surveys tend to be longer, sometimes 50 questions or set of them).
Closing
the 21st
Century
Service
Capability
Gap
by Christoph Goldenstern, Kepner-Tregoe
Loyal Insurance
Customers:
An Untapped Market
by Sandra Zoratti & Lee Gallagher, InfoPrint Solutions
After attending the 2010 ATM, Debit and Prepaid retention and when this group begins to redeem, it creates a
conference, I realized again that this economy (and new level of “stickiness“ for the bank, as well as an increase
the banking industry in particular) is in a unique state in the number of products an individual or business will have
of transition that has led to the increased interest and with the bank.
inclination of the attendees to achieve a more detailed and There was also talk of debit rewards. According to Jonathan
comprehensive understanding of loyalty and engagement Silver, President and CEO of Affinity Solutions, “The future of
best practices. debit rewards is going to change. The whole
This understanding is sought through loyalty model is going to be dynamic and
best practices, actionable insight and case
The need for changing rapidly over the next couple of years.”
studies that can impact ROI and create engaging, relevant He sees a much more integrated model for
“sustainable behavioral change.” The loyalty that will function across industries.
continued need for this knowledge is part of
and timely rewards As Silver pointed out, “Merchant funded was
a concerted effort from financial institutionsthat create loyalty traditionally a bolt on. 1 plus 1 equals three.
The coalition model is coming around, but the
to achieve a better understanding of their
customers given the fluid and dynamic state
and engagement is key is creating a currency that works.”
of the market. The market we live in is filledthe goal of today’s There is going to be a change in the debit
with an ever expanding set of traditional programs. card programs, yet the consensus is that the
demise of the debit card loyalty program is
marketing channels and external market and
governmental forces that have caused banks greatly exaggerated. Cynthia Smith of Zion’s
and other financial institutions to adapt to Bank mentioned that some of their customers
and try to comprehend this new landscape get $2,000 dollars back a year from their
in order to make sure they retain and better understand programs, yet there is a push to simplify rewards and to make
their customers. them more targeted, relevant and engaging. She suggested
Attendees learned there has been a shift in the way banks should not look for short-term profitability on their
people are paying for products. We have seen the increase programs, but rather on the long-term engagement, detailed
in the use of cash and debit products, and have witnessed understanding and profitability of the client.
the consumer saving rate inch up to 6-7%, which had been I continued to hear from the conference that consumers
around 0% for the better part of 15 years. PNC, a leader in want to be rewarded. The need for engaging, relevant and
the bank-based loyalty business, has witnessed significant timely rewards that create loyalty and engagement—but more
interest in loyalty/rewards programs for both consumers importantly sustainable behavioral change—is the goal of
and their business customers. They have seen better today’s programs and more imperative now than ever.
At the 2010 Motivation by their clients. When I raised the issue of what does drive
Show, I noticed that this behavior, and many responded that the answer to this exact
show is changing along question is the Holy Grail that they were looking for.
with the incentive I also asked my audience where they thought the market
industry itself. While was going, and I received both ambiguous and uncertain
the goal of creating behavioral change for employees and responses. Some felt that employers/clients were beginning
channel partners remains, I spoke with a number of people to loosen up their purse strings, but doing so very cautiously.
who felt that Incentives are now a “four letter word;” that Others believed that employers could be divided into the
the old school “trinkets and trash” incentives are being proactive (reward focused), active (looking for solutions)
replaced with more measurable methods of rewards. I heard and inactive (you should feel lucky to have a job) categories.
time and time again from the vanguard of the industry that Yet, while more companies over the past two years were in
their clients want to understand, influence and measure the inactive category, we were seeing more interest—not
the changes their loyalty/reward programs are creating. necessarily spend, but interest—in moving to the other
I had the opportunity to speak at this year’s Show. categories.
As Loyalty 360 is focused on hearing the “Voice of the Behavior is a complex idea. The focus on the neuroscience,
Customer”, the session was structured as interactive behavioral psychology and attribution theory are areas of
discussion with the audience; the goal being to get a sense increased interest, but the complexities involved with them
from them of where the market is, where is it going, what are leading to a new paradigm in the marketing world. We
the financials are looking like for them, what they felt the saw that the Motivation Show dedicated a one-day pre-
challenges were and how should one solve them? As conference workshop to the ROI of engagement. I found
always, I was (am) looking for market-driven insight. this unique in that not only are we trying to give a new
What I can tell you is that there is as much confusion connotative and denotative meaning to engagement, but we
in this market as in any other. I was surprised how open are now fixated with the ROI component. I think this is the
and candid the individuals in my session were. They spoke direction we will see the Motivation Show continue to move
of meetings with HR representatives that now would have towards. The case study approach they are bringing to the
operational and financial representatives in their sales/ show is very much welcomed by Loyalty 360 and Loyalty
process meetings with an inclination to push the vendor Management because we believe—and what we’re hearing
for a more thorough understanding of how their spend from our members—these are the areas of interest to the
can be more effectively targeted to increase the efficacy market. Without them the old school view of incentives may
of these internal programs; to drive behavior. I asked the be in trouble.
audience: “Does a bike in a catalog impact behavior?” Most
responded either “no” or “don’t know”—but indicated that
this is the same type of question they were being asked