Did you know that companies with well-established loyalty programs have a healthier bottom line? Are you looking for ways to establish or enhance your company’s loyalty program? Strong loyalty programs move beyond points or rewards. A well-designed loyalty program results in incremental gains, turning a customer who spends $X, into a customer who spends $X plus Y% more. In this webinar, you will learn: • The 6 Cs of loyalty, • The steps required to promote and market a loyalty program, • How to avoid making the biggest mistakes when introducing a loyalty program, • How branding can make a loyalty program more successful.

1. Leveraging Brand Loyalty Programs – June 18, 2014
Leveraging
Brand
Loyalty
Programs

2. Overview of
the Past
• Loyalty Programs were often
created as a reactive measure to
competition, resulting in weak
benchmarking and weak
understanding of the customer
• With today’s empowered customer,
offering simple “points” or rewards
programs is not enough.
Leveraging Brand Loyalty Programs – June 18, 2014

3. Leveraging Brand Loyalty Programs – June 18, 2014
Successful Programs …
Only 7-10% of brands provide what the
consumer wants:
• A sense of empowerment and a sense of
value
• Creating incremental dialogue and mutually
beneficial behaviour
• Montreal Transportation Department, Best
Western, American Express, Loblaws.

4. Leveraging Brand Loyalty Programs – June 18, 2014
How Branding
Enhances a
Loyalty
Program
• Allows for top-of-mind recall and
allows individuals to associate their
behaviours and interactions with the
brand
• Brand Coherence: Consistent branding
across the program allows the
consumer to identify with the brand

5. Leveraging Brand Loyalty Programs – June 18, 2014
Advice for Introducing a
Loyalty Program:
• Understand your position: get an outside
perspective of what your customers value
(consider hiring a consultant)
• Set lower expectations, and meet or exceed
them
• Loyalty program has to focus on what the
customers value in order to reach the top of
customer’s consideration set

6. Putting Loyalty
Programs on
People’s Radar
• A true loyalty program is about
behaviour
• Successful programs have infused an
entrepreneurial spirit into their
organizations
• Successful programs are willing to
take risks in communications with
customers (new technology, etc.)
Leveraging Brand Loyalty Programs – June 18, 2014

7. What is a
Loyalty
Program?
• Definitions of a loyalty program have
expanded exponentially with CRM,
data sets, analytics, etc.
• What loyalty entails is becoming a
bigger part of the budget
• Creating successful program
requires involvement of various
sections of the organization (CMOs,
CFOs, COOs, etc.)
Leveraging Brand Loyalty Programs – June 18, 2014

8. Sixth ‘C’ of
Loyalty:
• 5 Cs of loyalty programs:
Commitment, Collaboration,
Community, Content, Commerce
• Expanded with the 6th C: Confidence
(Organizations must have
confidence that they can develop
new programs and drive the
customer behaviour)
Leveraging Brand Loyalty Programs – June 18, 2014

9. Unsuccessful
Loyalty
Programs
• Programs that alienate: Delta
Airlines (spent-based rewards)
• Programs with flawed processes:
Sears (flawed technology)
• Programs that do not listen or try to
do too much
Leveraging Brand Loyalty Programs – June 18, 2014

10. Leveraging Brand Loyalty Programs – June 18, 2014
J.D. Power and Loyalty
Programs
• J.D. Power considers Loyalty Programs when
scoring organizations:
• Looking at how the loyalty program drives
financial success, incremental return and the
cost of managing the customers
• J.D. power helps brands realize what they should
be doing in their loyalty programs

11. Leveraging Brand Loyalty Programs – June 18, 2014
Affinity Programs That Work
Best
• Grocery programs (Kroger, Loblaws) do
new things and speak to their customers
• The #1 challenge for brands is
understanding what rewards the
customer wants: cash back, discount,
…, ???

12. Effective
Incentives for
Building
Loyalty
• Members seek rational engagement
as well as great experience with the
program
• Customers create rational/emotional
connection with the brands and
programs
• The rewards form should reflect on
the customers’ needs
Leveraging Brand Loyalty Programs – June 18, 2014

13. Private Label
Brands
• Incremental spent drives the
emotional attachment to private
label brands
• The incentive of these programs
comes from the price gap between
national brands and private label
brands
• U.S.-based Programs: Kroger and
Target
Leveraging Brand Loyalty Programs – June 18, 2014

14. Leveraging Brand Loyalty Programs – June 18, 2014
Question
Period
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