- Loyalty programs need continual care, nurturing, and refinement over time to remain successful as customer needs change. Examining customer response and behaviors long after launch helps guide strategy. - Many popular loyalty programs have evolved their strategies, benefits, and branding in response to customer feedback to keep programs fresh and relevant, such as Crown Rewards, Best Buy Rewards Zone, and Dick's Sporting Goods ScoreCard. - Maintaining an open mindset to test new ideas and refine programs based on data helps optimize performance and build profitable long-term customer relationships.

1. Your Loyalty Program: Time to Refresh
The key To a
successful
l o y a lT y p r o g r a m
i s u n d e r s Ta n d i n g
T h aT i T n e e d s
conTinual care
and nurTuring.
It seems that everybody much-lauded debut, but it’s Jump to the
has a loyalty program all too frequent that we see bottom line.
programs that were launched,
these days. there’s customer response and
put on a shelf and not given
some were created years ago then there’s bottom line num-
much more thought. the key
and don’t look a day older than bers. every year, it’s important
to a successful loyalty program to scrutinize all the elements
the day they were rolled out.
is understanding that it needs of your loyalty program. this
others have undergone dramatic
continual care and nurturing. list serves as a starting point in
facelifts. so how do you know
measuring customer response honing in on what the numbers
when the time is right to make
some changes? Let a heavy and opinion, not only after an are telling you:
dose of customer insight influ- initial launch, but throughout the
> Are your redemption rates
ence your strategy along with an life of the program helps keep
trickling in or staying strong?
open mind and the best refine- you on top of what your program
> Which departments are
ments will present themselves participants want and need. At
customers redeeming?
loud and clear. the heart of all loyalty programs
> Are enrollment rates slowing
is the creation of a relationship
examine program between you and your customer.
or on the rise?
response over time. Keep that dialogue going and > Are new members migrating up?
It seems so obvious that you the response you receive will > How are your response rates?
should look at how your program help guide every aspect of your > Is the program getting the
is being received long after its refinement strategies. ROI forecasted?
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2. communications, and a con-
s i n c e l o y a lT y p r o g r a m s a r e b e c o m i n g s o c o m m o n - tinuously nurtured strategy that
place, iT’s imporTanT To be diligenT in keeping keeps the program topmost in
y o u r s f r e s h a n d r e l e v a n T. customers minds. one of its
more notable refinements is
how the program now uses the
Is your CFO concerned about was reinvented again into Crown information it has gleaned from
the impact on profit margin? Rewards. with the name change its various customer segments
What are the changes in the came a new tiered loyalty pro- to tailor messaging and offers
competition and marketplace? gram with a fresh set of rewards specific to each segment —
and ways to earn them. the new ultimately making the message
Do you have new services
program is strategically focused even more relevant to each
and/or products that impact
on getting customers to move customer and in turn, their
the program?
up and earn more rewards. membership more valuable.
program benefits are designed
my, how Best Buy Reward Zone
to increase basket size by
you’ve changed. giving customers bonus points Launched in 2003, Best Buy’s
some of the most successful for purchasing three or more Reward Zone has since made its
programs started very differently cards, drive shopping frequency own transformations. After solic-
than they are today. By respond- through new monthly member iting feedback from customers,
ing to changing customer needs, offers and rewarding high-value they dropped the $9.99 enroll-
shifts in business climate and platinum customers with more ment fee, made it easier for
new inroads from competition, points and rewards. members to use the web, and
loyalty programs succeed in simplified the way customers
remaining fresh, relevant and DICK’S Sporting Goods receive exclusive offers, deals
profitable. here’s a quick look Sports a New Look and reward certificates by e-mail
at how some popular retail pro- recreation retailer Dick's or by accessing myrewardZone.
grams have evolved. sporting goods has featured com. As an example, Best Buy
their ScoreCard Rewards pro- offered up a never-before-seen
Hallmark Gold Crown gram for years with a stable perk for program members
Becomes Crown Rewards
rewards structure that has – exclusive access to The Police
In 1994 the Hallmark Gold remained unchanged over time. Live in Concert tickets. this
Crown program debuted, a fre- what has changed, thanks to unique benefit was right on
quent-buyer reward program insight from current customers, target for their entertainment-
for customers at selected are its enhanced benefits, a savvy member base and rang
hallmark retail stores. two fresh new look to the program true to their program’s goal
years later, the hallmark stores that’s supported across all of maximizing their members’
participating in the reward pro- print, electronic and in-store entertainment lifestyle.
gram were rebranded under
the Hallmark Gold Crown name
through a $100 million remod- one of iTs more noTable refinemenTs is how The
eling program in which stores program now uses The informaTion iT has gleaned
were revamped with a fresh from iTs various cusTomer segmenTs To Tailor
look. then more recently, the m e s s a g i n g a n d o f f e r s s p e c i f i c T o e a c h s e g m e n T.
Hallmark Gold Crown program
|| ©2010 Customer InsIght group, InC. ph: 303.422.9758 www.CustomerInsIghtgroup.Com

3. It’s not the destination loyalty programs are becoming maintain the attitude that you’re
so commonplace, it’s impor- on a journey of continuous test-
— it’s the journey.
tant to be diligent in keeping ing and refinement to constantly
the key to optimizing program yours fresh and relevant. use improve the customer experi-
performance is to keep an open customer feedback as well as ence and build profitable cus-
mind and be willing to try some- purchase behavior to test, refine tomer relationships.
thing new and different. since strategy and freshen creative.
sallie burneTT c u s T o m e r i n s i g h T g r o u p, i n c .
strategist. leader. innovator.
Customer Insight Group is a strategic
With over 20 years’ experience in marketing company that uses customer
strategic marketing, sales management information to help its clients engage in
and customer relationship management, successful and profitable long-term rela-
Customer Insight Group founder Sallie tionships with each and every customer.
Burnett has built her vanguard reputation It provides marketing strategy, customer
by crafting solid customer-centric strate- research, data analysis, program develop-
gies that drive bottom-line success for ment, implementation and refinement
her clients. Renowned for her out-of-the- of customer-centric programs including:
Sallie Burnett box thinking and wealth of experience, loyalty, social media, customer engage-
president, Ceo she’s been sought out by many of the ment, retention, win-back and new
Customer Insight group
nation’s top companies to engage, keep customer acquisition.
twitter.com/sallieburnett
and grow their customer relationships at
every point along their customer relation-
ship journey. Her insight results in better
aligned sales, service and marketing,
while generating the greatest return on
investment based on the voice and value
671 Secrest Circle
1
of the customer. Arvada, CO 80007
ph: 303.422.9758
www.customerinsightgroup.com
info@customerinsightgroup.com
Customer relationships — engage.Keep.grow. twitter.com/internethowto
|| ©2010 Customer InsIght group, InC. ph: 303.422.9758 www.CustomerInsIghtgroup.Com