Loyalty Management Q1 2015

VOLUME 7 NUMBER 1
First Quarter 2015
IN THIS
ISSUE:
Hyatt Builds Loyalty
Around Experience
CPG : Creating a Holistic
Customer View
Caesars Evolving
Loyalty Program
Build a
Customer
Culture:
Insights
from
Forbes
2015 Conference Previews
ADAPTING
TECHNOLOGY
TO PEOPLE,
NOT THE
OTHER WAY
AROUND.
THE UX-FOCUSED TECHNOLOGY AGENCY
888.310.5327
EFFECTIVEUI.COM
In this Issue...
FIRST QUARTER 2015
FEATURES
WWW.LOYALTY360.ORG
VOLUME 7 NUMBER 1
16
Hyatt Builds Customer Loyalty
Around an Experience, Not a Routine
Mark Johnson | Loyalty360
20
LOYALTY FORUM:
IN EVERY ISSUE
4
Letter from the Editor
Loyalty360 on the Web
Your Voice
10
Behind the Brand

with Allyson Krichman | Rymax Marketing
Services, Inc.
12
By the Numbers: Email Placement
22
14
By the Numbers: Program Behavior
18
Q & A: Ask the Experts
Creating a Holistic Customer View:

CPG Insights from Google
30 Trending Now
Building the Culture of the

Customer: Insights from Forbes
Bill Brohaugh | Loyalty360
Jim Tierney | Loyalty360
26
Building Brand Loyalty With
Customers: NCR Corp. Case Study
35 By the Numbers: The State of CX

36 Behind the Brand with Jose Costa
MAACO
38 Loyalty Innovation
56 Loyalty Reads
28
Caesars Total Rewards: Evolving the
Loyalty Program
31
Grocery Powerhouse Ahold Surveys
Changes in the Grocer-CPG Relationship
32
For Avis Budget Group, Customer
Experience Drives Brand
Differentiation
the
Loyalty360
Awards
The nominations are in and judging has

commenced for the inaugural Loyalty360
Awards! Winners will be announced at
a celebration luncheon on April 27
during Loyalty Expo 2015.
To hear firsthand from the winners who
are approaching customer loyalty in
innovative ways, join us at Loyalty Expo!
register now!
www.loyaltyexpo.com
Mark Johnson | Loyalty360

Loyalty Management FIRST QUARTER 2015
FROM THE EDITOR
Loyalty: What a long strange trip

Twenty years later, the Grateful Dead cripples a U.S. Postal Office and breaks Ticketmaster. For 50
years, the Grateful Dead has been an iconic story of experience, loyalty, and de(a)dication.
What does it take to build an iconic brand? What does it take to create those emotional ties that
will not only stand the test of time, but create a lasting culture?
As much as I wish we could announce a prelude to the Fare Thee Well tour at our event, we are
going to have other iconic brands and household names sharing their loyalty stories, how theyre
keeping their brand true, yet evolving with the times, technology, and cultural changes. Join us
in April to hear from the Pittsburgh Steelers, Harley Davidson, Walgreens, True Value, and many
other esteemed brands.
This issue, deemed our loyalty issue, will demonstrate the imperative convergence of experience and
loyalty strategies. Executives from Forbes, Google, and NCR share their insights on how brands can
benefit by focusing on the customer experience to create long-term loyalty.
Still, other brands such as Caesars, Ahold, and Hyatt, discuss taking their initiatives to the next
level, responding to the customer to improve each experience by using customer insights,
analytics, and technology.
The end of the book includes a preview to our upcoming 8th annual Loyalty Expo in Orlando. I look
forward to seeing you there.
Enjoy the read!
Erin
Erin Raese
Editor-in-Chief
Loyalty Management
erinraese@loyalty360.org
How effective is
your loyalty program
in attracting and
engaging customers?
We serve as trusted advisers to:

Assess
existing customer value

and loyalty program
performance for optimal
marketing initiatives
Design
program updates and/or
new pilot programs
and differentiated
customer experiences
Execute
Measure
recommended program
pilot and drive to 1:1
interactive relationships
program engagement,
incremental customer
behaviors, and
program ROI
Go to www.cogensia.com
or
Call Barb Olson at 847.805.9800
Loyalty Management LOYALTY360.ORG
In this Issue...
FIRST QUARTER 2015
TECHNOLOGY,
TRENDS & REWARDS
40 Experience First
42
So you dont want to reward your best customers?

Barb Olson | Cogensia Loyalty
44 Change Management Its Time for Transformation

Lior Arussy | Strativity Group
44
Erin Raese - Editor in Chief

Mark Johnson - Contributing Editor
Christopher Schatzman - Design Director
Jim Tierney - Senior Writer
Crescent Printing Company - Print Production
Contacts
Article Submissions & Advertising:
Erin Raese
erinraese@loyalty360.org or
513.800.0360, ext. 210
2015 Loyalty360, Inc. and/or its Affiliates.

All Rights Reserved.
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
reliable. Loyalty360 disclaims all warranties as to
the accuracy, completeness or adequacy of such
information. The opinions shared are those of the
contributing authors and not necessarily reflective
of Loyalty360 and/or its affiliates. Loyalty360
shall have no liability for errors, omissions or
inadequacies in the information contained herein
or for interpretations thereof. The opinions
expressed herein are subject to change
without notice.
BEST BUSINESS
PRACTICES
46 Making Moments Matter: Thinking Beyond Tactics
to Win Hearts
Matt Stein | Kobie Marketing
48 Customer Journey Mapping: Pitfalls & Remedies
Lauren Reus & Clay Walton-House | Lenati
50 Understanding your VIP-cravers and discounthunters to better drive loyalty
Laura Gardiner | Epsilon
52
The Right Process Drives the Next Generation of

Value Propositions
Sue Yasav | Synchrony Financial
52
Change Management
Its Time for Transformation
Loyalty Management Editorial
& Production Team
WWW.LOYALTY360.ORG
VOLUME 7 NUMBER 1
The Right Process

Drives the Next
Generation of
Value Propositions
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2015
CONFERENCE PREVIEW
LOYALTY360 ON THE WEB
Whats New
ON LOYALTY360.ORG
NEW MEMBER-ONLY FEATURE: MY MEMBER PAGE

The recently-launched My Member Page is a dashboard featuring content thats
customized to the preferences of each member. The dashboard also provides easy
access to member-only content, such as Brandbites reports, on-demand webinars,
research and more. The My Member Page is a one stop shop for members to
access the growing library of Loyalty360s exclusive content.
CONNECT WITH PEERS, SHARE

ADVICE ON THE NEW BRAND PANEL
Brand Panel is an online community available only for
brand members of Loyalty360. The community is a b2b
networking site for professionals in marketing, customer
loyalty, customer experience, customer engagement
and related fields to connect with each other in a secure
environment. Brand Panel enables Loyalty360s members
to make connections with each other and facilitates
dialogue where news, ideas, advice and opinions are
shared. This is a member-only and exclusive networking
site, so users can be assured that the discussion will be
relevant and non-soliciting in nature.
Learn more about Brand Panel and becoming a Loyalty360 member by contacting Mark Johnson
at markjohnson@loyalty360.org or Erin Raese at erinraese@loyalty360.org.
GROWING COLLECTION OF ARTICLES ABOUT CUSTOMER EFFORTS AT TOP BRANDS

Loyalty360 continues to talk with
executives at top brands about the
approach their companies are
taking to build lasting and
profitable relationships with
customers. Be sure to visit
Loyalty360.org daily to stay
Recent Loyalty Management online

articles include:
Loyalty360 sat down with Papa Johns CEO John
Schnatter to discuss the critical role of mobile
in his companys customer experience strategy,
among other things, in Papa Johns CEO: Mobile
Strategy is a Key to Great Customer Experience.
on top of the interviews, articles

and news, and dont miss the
in-depth features published in
the monthly digital edition of
Loyalty Management.
Hilton Worldwide Vice President of Digital Innovation

Joshual Sloser shares details about the companys
focus on empowering guests to tailor their
customer experience in Choice and Control
Drive Customer Experience at Hilton Worldwide.
Hear from CEO Javier Flaim about how

Reclcyclebanks customer initiatives are
helping people achieve a more sustainable lifestyle
in Recyclebank: Rewards, Education and Metrics
to Achieve Real-World Impact.
Some platforms focus

on acquisition
Some platforms focus

on retention
Clutch focuses on Maximizing the

Value of your Best Customers
Clutch's Consumer Management Platform empowers marketers with

customer insights to drive measurable results.
Consumer Management Platform

Loyalty and Stored Value
Analytics and Segmentation
Campaign Design
Omni-Channel Engagement
Are you maximizing your best customers?

Clutch.com
888-541-6789
info@clutch.com
LOYALTY FORUM: YOUR VOICE
your
voice
Differentiating
with Impact
Data from the 2nd annual Loyalty Landscape report shows

that differentiation is one of biggest challenges facing
loyalty marketers today. Loyalty programs have proliferated
in recent years and evidence shows that consumers are no
longer motivated to be loyal to a brand solely because of
the loyalty program. Standing out from the crowd is critical
in an era when consumers are saturated with options and
discounts and promotions are the norm.
We sought the opinion of our Twitter community on the
best companies to learn from or emulate regarding
differentiation. Several common themes emerged. What we
found was the loyalty programs that set themselves apart not
only meet basic criteria of being easy, convenient and offer
rewards that are relatively easy to attain, but integrate the
program with the companys core values and customer
experience to make the customer truly feel valued.
EASY,
CONVENIENT,
ATTAINABLE
The Gap and Banana Republic. Easy & redeemable
online and on sales. I'm a busy mother and most of
those things expire before I get to them.
@KC_Francophile
Southwest - easy to use points, sends drink
coupons, easy to change flights, no high change
fees, no baggage fees.
@BlaineButtermor
Starbucks! Why? Mobile first, predictable rewards,
payment and loyalty program are embedded in the
same app.
@fpizarro
EXPERIENTIAL MARKETING
Diageo, Natura and Vogue, because those brands always make different
and stunning activities and experiences
@petrapak
INTEGRATED
Starbucks and Uber are the best. Why? Both of them are very tightly
integrated to their core customer experience and mobile payments
@janluuk
SOCIAL GOOD
REI because of the financial structure, cash-back rewards, culture, and
community service benefits. It feels good to shop there.
@C2Cseh
CUSTOMER EXPERIENCE
Ritz Carlton. I think their customer experience helps drive their customers'
loyalty regardless of the 'points'.
@cjyoung900
Virgin America. Their loyalty mimics most in the same group - but their
customer service when applied to that, puts them over.
@kargoe
Loyalty360
LOYALTY FORUM: BEHIND THE BRAND
BehindtheBrand
WITH ALLYSON KRICHMAN | RYMAX MARKETING SERVICES, INC.
Allyson manages the product sales team

overseeing the growth of key accounts
and developing new client relationships.
Allyson strategically aligns our brands and
innovative product offerings within client
programs by developing solution-oriented
strategies and implementing best practices
to ensure clients receive the highest level of
service. Recognized as an industry expert
by Incentive Magazine in 2007 as one of
the Rising Stars: One to Watch, Allysons
performance continues to rise as an industry expert. She is
an active member of the Incentive Marketing Association,
The Incentive Manufacturers & Representatives Alliance
Strategic Industry Group, Advertising Specialty Institute,
and Promotional Products Association International. With
over 10 years of experience at Rymax, Allyson has seen
firsthand how Rymax has evolved throughout the years
and continues to lead the industry in reward offerings and
loyalty program services.
IF YOU COULD PICK ONLY ONE THING, WHAT DO YOU BELIEVE

MOST INFLUENCES A GREAT CUSTOMER AND/OR EMPLOYEE
EXPERIENCE? AND WHY?
Customer/employee experience starts with the idea to drive behavior
that our clients want repeated and I believe the influence on their
experience derives from our team producing the highest level of
performance. As a premier full service loyalty and rewards
organization, we handle our clients demands one-on-one and tailor
to the needs of their customers firsthand. This interactive,
collaborative relationship, and our mission to under promise and over
deliver is what keeps our clients loyal to us. Our team at Rymax puts
100% effort into building strong and trusted relationships with our
clients and their customers to ensure their experience leaves them
satisfied and well taken care of.
WHAT IS YOUR PERSONAL MOTTO?
Ride the curve is something I say almost every day. When I started
in this role at Rymax I told my team, celebrate your success but
remember to continue to keep pushing forward. Be proud of your
success but always stay on track to achieving your next goal. Not
everyday is going to be a success, but when you hit a challenge take
a step back. Remember tomorrow is a new day to start up again and
ride back to success.
10
WHO HAS HAD THE MOST INFLUENCE ON YOUR PROFESSIONAL

LIFE? AND WHY?
My grandfather, Joseph Finkel was my biggest influence. My grandfather
saw things in me that, at times I did not see in myself, his support has
pushed me to get where I am today. He taught me to be fair, fight for
what I believe in, listen to what everyone has to say and give back to
others. The life lessons that he had taught me when I was younger
were harder to fully understand at that point in my life, but they are
things that now I can relate to and reflect on almost every day.
WHAT WAS YOUR LAST AH-HA CUSTOMER EXPERIENCE?
WHAT MAKES THIS MEMORABLE?
There is one customer that stands out in my mind. I received a
phone call from one of our clients who said they felt that they
were not contributing enough to their program and our relationship.
The reason they were not doing anything was because we offered
everything their customers needed from the delivery process to
customer service. I have to admit I was a bit stuck on how to answer
but it was then that I realized how incredible this company is. The
Rymax team understands the importance of customer service and
our proactive approach for superior service is what our clients need.
QUICK FIRE QUESTIONS*

WHAT BOOK ARE YOU RECOMMENDING & WHY?
I recently read The Last Lecture by Randy Pausch. I am now having my
sales team read the book and watch his speech at Carnegie Melon.
After listening to his anecdotes about his childhood dreams and the
lessons that he learned from them, you see that they were not out of the
ordinary and are relatable to anyones life. I always try to find new ways
to motivate my team and every time I read a passage or listen to his
speech I pick up on new ways to apply his insights to my work and life.
This book is definitely something I recommend to all managers.
WHAT IS YOUR
FAVORITE WORD?
WHAT IS YOUR LEAST

FAVORITE WORD?
WHAT TURNS YOU ON
CREATIVELY, SPIRITUALLY,
OR EMOTIONALLY?
WHAT TURNS YOU OFF?
IF YOU COULD INVITE ANY THREE PEOPLE TO DINNER (PAST OR

PRESENT), WHO WOULD THEY BE AND WHY?
The three people I would invite to dinner would be my grandfather, Sir
Richard Branson and Jackie O. I would invite my grandfather first, so he
can see where I am today and share the lessons that I know from his
many stories but never had the chance to hear first hand. The second
invite would be to Sir Richard Branson. He is involved in so many
different aspects of business and humanitarian initiatives and although
others think his goals to be a bit crazy, he never seems to be afraid to
go after them. I would like to think we could be friends and vacation
to Necker Island together. Lastly, I would choose the incredible and
sophisticated, Jackie O. I recently went to Daley Plaza in Chicago
and visited the museum where I saw the story of JFKs assassination
in 1963. To see how she came through that time and carried herself
with such grace and poise in the public eye is impactful and
truly inspirational.
CHAMPS.
COOL BEANS.
GREAT UPBEAT MUSIC.
CHEAPNESS.
WHAT SOUND OR NOISE DO

YOU LOVE?
LAUGHTER; NOTHING IS
BETTER THEN THE SOUND
OF HAPPINESS.

YOU HATE?
THE SOUND OF SOMEONE

SCRATCHING STYROFOAM,
IT IS LIKE NAILS ON A
CHALK BOARD FOR ME.
WHAT PROFESSION OTHER

THAN YOUR OWN WOULD
YOU LIKE TO ATTEMPT?
SINCE I LOVE MUSIC, I

WOULD WANT TO BE A DJ,
OR TAKE OVER FOR EITHER
KATHIE LEE OR HODA KOTB
ON THE TODAY SHOW!
WHAT PROFESSION WOULD

YOU NOT LIKE TO DO?
ANYTHING THAT WORKS

WITH SNAKES.
1
2
3
4
5
6
7
8
*Inspired by James Lipton on Inside the Actors Studio we asked Allyson to share her quick fire responses to
the questions originating from the French series, Bouillon de Culture hosted by Bernard Pivot.
IF YOU WERE GRANTED 3 WISHES WHAT WOULD THEY BE?

1. Eternal Health: I am very health conscious and love to be active so
if I can ensure my health for eternity that would be my top wish.
2. The ability to stop time.
3. The power to read minds.
WHAT TRENDS ARE YOU SEEING IN THE MARKETPLACE TODAY?
As trends are constantly changing, our team at Rymax is always adapting and
developing new and creative turnkey solutions to meet these ongoing
trends. Everything is cyclical and things that were once popular years
ago, such as contests, are making their way back into loyalty programs
especially on the merchandise side. Rymax always wants to make sure
that when implementing a program for our clients, it is relevant and
engages all generations of program participants. Rymax specializes in
using segmentation tools that target rewards to meet the desires of
every generation and keep participants engaged in the program. One of
the major factors is making sure the reward emotional connects to
the recipient.
It is important to make programs, events and experiences tangible. In
the digital age we are always on-the-go and have everything stored
in our tablet or smartphone but sometimes we forget how impactful a
memory is; especially when it is retained by using the handbag you
redeemed for, watching your favorite movie on the TV you won or
simply looking at a printed picture from a past event. The trophy value
of seeing and using rewards is invaluable to a companys overall success
as it reinforces the memory of how an individual can be recognized and
valued by a company and be rewarded for their participation.
Loyalty360
congratulat
Rymax ones
20
years
WE LIKE TO END THESE INTERVIEWS WITH SOME WORDS OF

WISDOM. WOULD YOU PLEASE SHARE A TIP OR KEY LESSON
YOUVE LEARNED OVER THE YEARS THAT COULD HELP THE
NOVICE MARKETER?
The biggest advice I give anyone is, get involved. Dont let your title
or role limit your involvement in all aspects of the company. If you
have an idea, make sure you speak up and share; this might open the
eyes of your colleagues to things they might not have seen before.
You are creating a collaborative environment and this will also show
your worth to the company. A few years ago a friend sent me something called, Reason, Season or Lifetime.Its message is something I
apply to my work but it could be applied to any business model.
Reason ask the why and the goal of the program you are going
to execute.
Season make sure the program is launched to get the best traction
and ROI for your clients and end results.
Lifetime all programs need to have a positive impact that will have
traction and carry forward throughout the years. L
11
LOYALTY FORUM: BY THE NUMBERS
Signed, Sealed and Delivered?

A Report on Email Placement Rates
Email remains one of the most

valuable tools for marketers to
stay connected with customers.
Yet, the proliferation of mobile
and constantly evolving filtering
tactics employed by mailbox
providers make it increasingly
difficult to reach customers
inboxes. A recent study by
Return Path showed how
marketers are performing with
inbox placement a critical metric
for generating strong return on
email marketing programs!
83%
of emails land in the inbox
11%
85%
go to a spam folder or
are missing altogether
of emails arrive during the months of

November, December and January
When looking at inbox

placement by country
60%
83%
87%
89%
12
of emails from
Brazilian senders
reached the inbox
of emails from
Canadian senders
reached the inbox
of emails from
U.S. senders
reached the inbox
of emails from
German and
Austrian senders
reached the inbox
Inbox placement rates

are strongest for the
following industries
91%
92%
96%
of emails from
Apparel, Atomotive and
Food & Beverage
senders
of emails from
Insurance
senders
of emails from
Health and Beauty
senders
0
2
LY
E X C L U S IV E
THROUGH
RYMAX
0
0
0
15,
YEARS
5
6
3
PRODUCTS
NGAGEM
D AY S O F E
ENT
For 20 years Rymax Marketing Services has been the trusted loyalty marketing provider
solely focused on creating programs and events to drive ROI through brand name rewards.
Organizations partnered with Rymax see increased employee performance and retention,
customer loyalty, and overall revenue. Contact us today to see what 20 years as the industry
leader can do for your business.
www.rymaxinc.com/L360 1.866.879.2581
Incentive Solutions Delivered. Worldwide.
Copyright 2015 Rymax Marketing Services, Inc. All rights reserved.
Program
Behavior
Consumer Loyalty
26%
3.3 BILLION
Amount of loyalty program
memberships US
consumers hold
Increase in loyalty program

memberships from 2013
29
Programs per household
14
12
Number of programs
theyre actually
involved in
Increase in program
memberships
29 from 22;
activation fell 4.5%
Where consumers
are participating
578 Million
Credit Cards (up 5%)
434 Million
Specialty Stores
356 Million
Airline Frequent Flyer (down 4%)

Source: 2015 COLLOQUY Loyalty Census
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s
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un ain
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e
r
April 27 - 29, 2015 | Loews Royal Pacific Resort at Universal Orlando | Orlando, Florida
2015
Loyalty Expo is a true Voice of the Customer-driven, best practice-focused customer loyalty and reward
conference. By attending, youll have the opportunity to network with hundreds of your fellow marketers
and hear how they are reaching their customer relationship-building goals. Market leaders will be sharing
their experiences and insights on customer retention strategies and trends. Attendees will leave Loyalty
Expo with an understanding of new research, technologies and solutions to aid their organizations on the
customer loyalty journey.
register now!
www.loyaltyexpo.com
powered by
FEATURES
Hyatt Builds Customer Loyalty Around an
Experience,
Not a Routine
Mark Johnson
Loyalty360
When talking about building customer loyalty, Hyatt Hotels & Resorts
eschews relying on the word program.
For Hyatt, a program often implies a set of narrowly defined steps
that attempts to invoke a sterile cause and effect reaction. But Hyatt
officials understand that fostering genuine customer loyalty involves
so much more.
This is especially true in the hotel business, where tremendous variability can exist among the expectations of business and
leisure travelers.
Simply put: Different people expect to be treated differently. And this
is why Hyatt is moving toward the loyalty experience.
16
Building a loyalty experience means effectively understanding the

dynamic nature of customer interactions, adapting quickly to
changing needs and expectations, and developing a high degree of
empathetic acumen.
You cant commodify customers, Jeff Zidell, Senior Vice President
of Hyatt Gold Passport, says. Youve got to be able to read them and
deliver accordingly. We have employed a lot of new techniques to
ensure that we are engaging with them and being very empathetic,
and listening and understanding the cues on how that customer wants
to be treated.
The unique environment of the hotel industry makes this need for a
highly personalized approach to customer engagement all the more
crucial. Guests interact with hotels in a number of ways that transcend

their typical relationships with most other brands.
Since one does not sleep at a restaurant or shower at a retailer, a
hotel provides a much more intimate setting. It is a temporary home
away from home and, therefore, elicits an incredibly varied range of
particular habits, wants, needs, and expectations among customers.
A business traveler might be all about efficiency and efficacybe
quick, be easy and Im gone, Zidell explains. A leisure traveler might
want the best hole-in-the-wall restaurant or that undiscovered find.
A big piece of our business is understanding how you read customers
and give them service in real time based on who they are.
The onus is upon us to treat our people just

the way we want them to treat our guests.
To accomplish these goals, Hyatt begins by looking within. The
espoused company philosophies must be truly embraced internally
before they can be effectively demonstrated externally. And this
starts by valuing and empowering associates at every level of
the organization.
Hyatt, in effect, leads by example, and Zidell sees a definite link
between how Hyatt treats its colleagues, and the way they in turn
treat customers.
The onus is upon us to treat our people just the way we want them
to treat our guests, Zidell explains. We have to provide a spirit and
a culture of care and generosity, and sincerity and empathy internally.
Our colleagues around the world feel good about coming to work and
they feel that we uphold and help them to be their best.
With a focus on their work force and their guests, Hyatt always strives
to create experiences that are increasingly more memorable, more
respectful, and more uniquely personal. And thats what suitably keeps
colleagues happy and guests coming back.
In the end, it all returns to Hyatts attempt to build customer loyalty
around an experience, and not a routine.
Loyalty is customer advocacy, Zidell says. Why do you choose
[a] brand? Not because they give you something thats prescribed.
Its how they make you feel. You want customers who believe in
your brand, beyond what you deliver to them day in and day out.
Customers who believe in the promise of what you stand for.
Mark is CEO & CMO of Loyalty360. He has significant experience in selling,

designing and administering prepaid, loyalty/CRM programs, as well as data-driven
marketing communication programs.
17
LOYALTY FORUM: Q&A
Ask the Experts:

What are best practices for creating consumer
awareness for programs or initiatives that are
designed to build customer loyalty?
Arm the Front Line! Your front line touchpoint with your customers is the most critical to make them aware
of your initiative, and get them to enroll and engage in your program. This is when its most relevant. Display
signage in-store or at your front line touch point and train your employees to simply introduce and invite
customers to enroll. This is the most effective means to create awareness and engagement.
For retailers, typically over 80% of enrollees are from stores. For example, Walgreens does a tremendous job
of this by prompting every customer at every transaction to enroll and use their Balanced Rewards program.
Its fast, easy and consistent. Walgreens has over 85 million enrollees today!
For non-retailers, the same principle holds. What is the front door to your business? Is it your website, front
desk, reservation agent? Educate and arm your team members to introduce and invite your customers to
participate. Keep it simple and immediate. Also, be sure your team members understand the big picture of
how your initiative will help both them and your company win.
-Barb Olson | Cogensia Loyalty Solutions
18
From a strategic perspective, there are 3 principles we recommend:
Empower Customer Advocates
1. Be Unobtrusive: Tailor your message by using Personas as your guide.

Sign-up should be 30 seconds or less.
Your customers are your most credible marketing source. Build a

VIP network of customer advocates to be your promoters. Engage
them early on in design and feedback for your new loyalty initiative,
and then empower them to build awareness through referral offers,
crowdsourced content via communities, etc.
2. Create a Narrative: Help your customers imagine themselves as the

protagonist in the story you are telling.
3. Share the Details: Deliver the right balance of simplicity and
specificity. Make it easy to understand what the program entails
and benefits.
More tactically, here are several best practices to consider:
In Context
The ideal moment to generate awareness is when your customer
is already interacting with you. From online browsing, in store
shopping, checking-in at a kiosk or on their smartphone to registering
new products for warranty on your web site. These captive moments
are your most golden opportunities to promote new loyalty programs
or initiatives. As such, it is imperative that you train your sales and
service personnel to tell your story in a compelling manner.
As consumer communication channels proliferate, a solid omnichannel approach to generating awareness for initiatives and/or
programs designed to drive loyalty grows in importance. In doing so,
marketers have to meet their customers where they are at with the
right message. The days of spray and pray are over. Rather, best
practices today dictate that brands personalize communication to
consumers, sharing specific meaning and value. Practically what
that means is creating a 360 degree view of consumers,
understanding who they are on- and off-line and pairing that data
for personalizationeven down to how that consumer likes to
receive their informationwith the right message at the right time.
In this way, brands can evangelize programs to consumers with
the right communications vehicle at the right time, with the right
message. In turn, consumers will help share the word, creating
earned media opportunities.
Align to a Cause
Customers want to be associated with brands who share their values.
Align with a cause and build awareness for your brand and programs
within this context. It must be authentic and true to your brand.
-Kevin Nix | Stellar Loyalty
For example, if a retailer wanted to promote a new initiative to drive

loyalty, they might blend in-store signage with a CTA to engage on
social media. This gives consumers a public remote control to convert
to a call-to-action or advertisement. By connecting off-line to online
you can better understand the customer while increasing your brand
visibility. The retailer in this case would also seek to connect the
consumers social handle(s) with their CRM profile to gain a holistic
consumer view, marrying it with email, location and other specific
data to tailor future program outreach. To kick-start your efforts,
try socializing an existing email list. For example, a hotelier might
combine a Twitter or Instragram intent with an element of the
loyalty-building initiative sent over email to link social handles with
email addresses. In this way, brands are able to socialize traditional
communications vehicles, taking them from 1:1 to 1:many.
-Chris Teso | Chirpify
19
FEATURES
Building the Culture of the Customer: Insights from
Bill Brohaugh
Loyalty360
Bruce Rogers, Chief Insights Officer

at Forbes Media, illustrates an
example of how to build a
customer-centric culture.
When Polaris, the manufacturer of
snowmobiles and other vehicles,
brought in Tim Larson as VP of
Global Customer Excellence, Larson
focused on changing the conversation
from units to customers. Statements
such as: We added 1,000 customers
this month took power.
The only way such statements
became meaningful was because
data was attached to them, Rogers
says. The change was an amazing,
dramatic, and transformational
moment. It changed the conversations
between Polaris and its dealers, and
it helped turn the culture around.
The result seemed to be a great
success. Polaris exceeded all of its
goals, the stock went up, and the
Board was pleased.
Rogers said that developing
customer loyalty is difficult in an
organization that talks only about
units sold or interactions and users,
or just uses the language of numbers
alone, and doesnt talk about peoplecentric data.
Rogers admits that the phrase people-centric data sounds like an
oxymoron, yet companies risk losing customer focus as they grow,
and work to scale their business.
In order to scale, organizations must get good about process, Rogers
explains. That presents the innovators dilemma: Process becomes
more important than anything else and doesnt necessarily help build
interactions with customers.
20
The Role of Data in the

Culture of the Customer
Customer numbers must resonate
internally, and they must motivate
customer action. In fact, this is the
core of Rogers advice for taking that
first best step to become simultaneously
data-centric and customer-centric.
First, understand where data is
elevated within the organization.
Mapping data to the overall
business KPIs gets everyones
attention, Rogers says. In our
research about characteristics
of highly effective marketing
organizations, we see that as the
single most important distinction.
Rogers points to a delta of 20
percentage points between highperforming and low-performing
marketing organizations, based on
the KPI factor alone.
How do you roll up marketing activity
and customer interaction into KPIs
that drives the business? he says.
Is marketing held accountable to
those KPIs? Making that connection
initiates the efforts to connect the
data points, so that you have a
better, fuller view of the customer.
KPIs, however, can also stand in the way of evolving to customer-centricity.
Legacy KPIs that are soft or fuzzy were based on what youre capable
of measuring, Rogers says. Customer satisfaction ratings and Net
Promoter Scores, brand tracking, measuring the presence and growth
of your social media engagementall of those are important. Yet,
those are not the type of metrics that the entire business runs off of.
They are elements of it. Those are going to change.
Depending on such metrics has a small-sample flaw: Your customer

satisfaction score and the answer to that one question about intent
to refer a brand to someone else can be based on a temporary
foible that you had that can obviously be addressed. That factor
challenges brands.
Although accountability is key, so is measuring that accountability.
As revealed in Loyalty360s 2014 Customer Experience Landscape
survey, organizations that do very well have a good grasp of the more
challenging metrics: Loyalty program ROI, profitability of customer
experience, and the ROI of technology, for instance. They measured
their customer experience efforts 9.5 different ways on average,
where other organizations measured 5.5. And the long-term metrics
were challenging: marketing organizations measure such things
as response rates and return on a promotion, as opposed to a more
long-term perspective.
Thats because people tend to measure what
they control, Rogers explains. All too often, a
marketing organization controls communications
assets, and not the touch points with the customer. Customers dont care that organizations
are siloed. They dont care that your call center
is run by your operations group, or that your
social media is not connected to your CRM. Say
a customer has a bad experience and tweets
about it. Whose responsibility is it to respond to
that and to do something about it? Is it marketing?
Customer service? Operations? Logistics?
who join the C-suite in promoting customer-centricity within the

company.
From that standpoint, sometimes its not about numbers,
Rogers says.
Sometimes its not data, he explains. Sometimes its going out and
going through the experience yourself.
Rogers advises decision-makers to, in a sense, go the Undercover
Boss/mystery shopper route. Shop as a customer. Phone the call
center. Use the ecommerce website.
Experience your service or your product as your customer experiences
it, he says. Then the answers are pretty evident.
Changing the culture,

changing how the
organization thinks
and refers to customers,
is the first, foremost,
and most transformative
step that an organization
can take.
Rogers notes that when all customer touch

points, including data related to those points of
contact, sit in separate silos and are owned by different
parts of the organization, the company struggles.
The siloed organization is probably the biggest problem
to a customer-centric approach, Rogers says.
The Undercover CEO

This then takes us back to concept of the C-suite mandating and
facilitating corporate-wide communication, interaction, and sharing
customer dataand taking responsibility for it.
Highly effective CEOs assume the obligation of taking the 360 view
of the organization, Rogers says. Even if they dont have responsibility
for all touch points, they become advocates for the customer across
those touch points, and help break down silos. Maybe theyre not
going to own the CRM database and maybe theyre not going to own
the call centers in India or the Philippines, but they make the point to
connect those dots so that they are indelibly the voice of the customer
within the organization.
And none of this will be easy.
Maintaining that customer-centric culture is going to take enormous
energy and focus on the part of the CEO and some evangelists within
the organization, Rogers says, adding that evangelists refer to people
Easing the Transition to

Customer-culture
The journey to a "culture of customer" is never
a quick, seamless transition. Many companies
make the mistake of taking "the Manhattan Project
approach"a single-focused, concentrated
endeavorRogers says.
Its hard to get organizational buy-in when
things take a long time, Rogers explains.
Transitions are expensive and the world
changes before the grand integration. One
solution? Create small incremental wins,
particularly around algorithmic or machine
learnings that can dramatically drive marketing
efficiency and improve customer interaction.
Rogers shares an example of this strategy.

Lets put this in the perspective of those that are incrementally
winning their way up to earn the right to integrate data solutions
throughout the organization: If marketing within the organization is
showing a 400% return and an increase in efficiency in a certain
marketing initiative because of data and its effective use, and if this
is an enhancement from machine learning, the right to use that
information works its way up the food chain, he says.
Viewing such incremental wins motivates the rest of the organization
to apply the thinking of using the data to measure everything we do
and tie it back to ROI.
Of course, every CEO wants to do that, but its extremely complex
to do it globally in an organization, Rogers explains. To change the
culture, start at a project level and build it up with an evangelist
who has the potential to share the message with the higher ups in
an organization.
Like Polaris, says Rogers, Changing the culture, changing how the
organization thinks and refers to customers, is the first, foremost, and
most transformative step that an organization can take. L
21
FEATURES
Creating a Holistic Customer View:
CPG Insights
from Google
Consumer Packaged Goods (CPG) brands, according to a recent study, can realize significant gains in cross-channel growth through digital
collaboration with retailers and distributors and better internal integration. But the research shows that a large majority (70%) of CPG heads
of sales believe this potential may not be realized because there is a lack of consistent, shared consumer data to improve decision-making.
Jim Tierney
Loyalty360
A recent study* noted that CPG brands can realize significant gains in cross-channel
growth through digital collaboration with retailers and distributors and better internal
integration. But, the study shows that a large majority (70%) of CPG heads of sales
believe this potential may not be realized because there is a lack of consistent, shared
consumer data to improve decision-making. What is your take on this survey and what
are CPG brands doing well, related to customer loyalty/engagement, and what areas do
they need to improve in?
Kevin Kells, Director, Global Client
Solutions, at Google, weighs in on this
issue and several other critical ones facing
CPG marketers in this highly competitive
landscape where customer loyalty and
customer engagement are the esteemed
pots of gold. Kells offers fascinating and
comprehensive insight regarding CPG
brands and their place in the loyalty
marketing arena.
22
Kells: This survey brings up a major pain point for CPG brands. Its
very difficult to put the pieces together in the customer journey
across channels, and now particular to digital, across devices.
In general, CPG companies have a firm grasp on understanding
each channel and its sales effect as a silo. As this study indicates,
understanding the whole picture is where both brands and their
partners need improvement.
*The study, CPG Sales Leaders Go Multichannel; A Guide
To CPG Sales And Channel Management In A Digital World,
conducted by Forrester Consulting on behalf of Accenture.
Looking at this through the digital lens, theres

a disconnect in understanding the overlap of
reaching the same customers on different
platforms and retailers sites. Its all about
reaching customers at the moments that
matter, not bombarding them with ads.
I have no doubt this will get massively easier
and better over the next decade, as the
industry (manufacturers, agencies, data and
technology companies, and media partners)
find ways to share information in ways that
protects consumers privacy, yet allows CPG
marketers, for instance, to better understand
how each and every dollar is spent and also
to look across all channels on an apples to
apples comparison. This will take shape not
only on the efficiency side of the equation,
but also on the effectiveness side of the
equation; what are people actually doing
after they have heard about or engaged with
my brand. As the study points out, thats not
an easy thing to do now, but it will get easier
and it has to because the CPG companies
will demand it.
Can investments in Big Data capabilities make direct
customer loyalty or CRM programs achievable for
CPG brands?
Kells: I would try to not get tripped up by the
term Big Data. The reality is it is just what it
is: data. And that data will be full of all sorts
of interesting facts, actions and engagement
metrics. Whats the big idea is using often
very simple tools to start to organize the
data in a way that allows us to glean real
insights from all of it. Insights that lead us to
new ways of thinking and new ways to grow
categories and brands.
These insights allow CPG brands to get
smarter about who their customer is in a
way that respects their privacy. Using data
to find macro-level consumer trends allows
marketers to move beyond thinking in
traditional demographic buckets and
targeting the most relevant customer groups
for their brand based on psychographics and
real consumer behavior.
In the digital space brands can look at
insights and trends in order to be smarter
about how, when and where they talk to their
customers. For example, if a brand knows
that a customer has engaged with their site

or purchased from them in the past, they can
tailor their approach creating more savvy and
advanced communications.
How do you define customer loyalty and has that definition

evolved in recent years?
Kells: The definition of customer loyalty
varies depending on the brand and product.
For lower consideration products, it might
mean that the customer grabs the product
off the shelf every time they need a refill. For
other products, it might mean by using or
wearing the product, the customer sees the
brand as a definition of their values and who
they are as a person. While most marketers
likely want to achieve the latter, the most
important part is to keep customers happy.
In recent years, this spectrum of loyalty has
become more apparent as customers have
more and more places to publicly display
their likes and dislikes, which is forcing brands
to adapt to how they manage customer service
to be more immediate and personalized.
Encouraging innovation and not

being afraid to fail is key to
keeping brands relevant and fresh.
How can CPG brands differentiate themselves in todays
crowded marketplace and build brand advocacy?
Kells: The most differentiated and successful
brands are able to tap into what we
frequently refer to at Google as moments
that matter. These are the key times when
consumers have a genuine need. It can be
something as small as grabbing breakfast on
the go Monday morning, or something bigger
like preparing for an interview or becoming
a parent. Brands that are able to be a trusted
partner in these moments and solve the
customers need are able to build true,
lasting brand advocacy. Also, the most
trusted brands build loyalty again and again
because they fit into peoples lives, not the
other way around. That is especially true to
watch out for as folks can often get lost in
trying the latest, greatest technology to either
solve a problem that doesnt really exist or try
to get the person to do something that they
would never do in real life.
Engaging experiences are the baseline for creating loyal

customers. How should brands create the culture by which
engaging experiences (even though they may be more
expensive to put in place and more difficult to measure)
are table stakes for brands?
Kells: In an environment of increased accountability, companies should remember that not
all programs can or should be evaluated in
the same way. Any marketing activity should
have clear and realistic goals set up front and
celebrated when reached (emphasis on clear
and realistic). Creating engaging experiences
for customers shouldnt be expected to
drive the same action as traditional tactics.
Encouraging innovation and not being afraid
to fail is key to keeping brands relevant and
fresh. New ideas and taking calculated risks
should be regularly recognized and rewarded
to encourage marketers to think outside the
traditional box.
How can we influence the employees in the channel /
process to make sure they are bought in and engaged in
the loyalty methodology for the consumer?
Kells: Its always a best practice to put checks
and balances in any business decisions
such as how the decision will impact costs,
revenue or company employees. Ingraining
the impact on the customer as one of the
checks keeps this top of mind for employees.
One of our core beliefs at Google is to put
Continued on page 24
23
FEATURES
Google continued...
the user first. This is always top of mind in

our decisions across the company, so other
companies can do this as well by prompting
employees to think how will our customers
react to this?
Marketers are tasked to be more data-centric than ever
before, yet the challenge of creating actionable insight
from data is more challenging than before. What is your
advice for marketers?
Kells: Simplify. Many times marketers get
bogged down in data dumps and granular
analyses. The most powerful insights are
easy to articulate in one sentence and always
tie back to a human truth, and best stated
in plain spoken language. Use the data to find
a trend and then humanize it because the
data is really just an aggregate of what your
customers do, need and believe. Use it to
listen to their needs and actions.
One of the strengths of digital is that
measurement can be real time, making it
immediately actionable versus waiting for
after the fact reports. At Google, we now offer
metrics like viewability and Brand Lift in near
real-time, which allow advertisers to hone in
on their key KPIs and adjust campaigns still in
market based on their performance. Staying
up to speed on these types of tools and the
available levers help simplify taking action
when it makes sense.
In traditional push marketing, we measured effectiveness
by response rates and CPMs and the ability to hit as many
eyeballs as possible to increase trial and conversion rates?
How is today different? How do you effect change with a
CMO who still may be push focused?
Kells: Push can still be valuable, but the
conversations are shifting from simply CPMs
and impressions to quality of delivery.
Viewability is a big industry buzzword these
days, but basically it means did my viewer
actually have the opportunity to see my brand,
and was the view from the right customer.
Also, many brands are focusing on more
engaging programs that facilitate the two-way
conversation with a customer. And that type
of back and forth helps build brand loyalty and
ultimately advocacy over time. New types
of digital formats that invite user choice like
skippable video or engagement ads allow
marketers to only pay when customers
engage and ensure they only reach those
who are truly open to the message.
24
As far as CMOs, our experiences at Google

have shown we can help drive business for
CMOs the most when we are 100% in sync
on a few key areas: what are their biggest
challenges and opportunities, what do they
feel is holding them back, and how ready are
both of our companies to attack the issues
head on, together. We are big believers in
joint business plans, and where we have
seen things change over the past few years is
moving from corporate or centralized plans, to
ones more specifically focused on their most
important categories or brands. The great
thing is that all the basics are still the same
at the core; its still largely about insights and
listening/storytelling. What has changed is
what you then actually do, and those choices
for marketers are infinite now. So a tight plan,
focused and done together, helps put a filter
in place to make sure were moving with pace
and pushing the biggest areas for growth.
Can you offer a high level overview of your customer
philosophy and share how this perspective helps drive
more effective engagement and therefore better
marketing outcomes?
Kells: Treat your customers as people. Behind
all the data, sales numbers, and marketing
strategies, customers are people who have
needs and desires and buy products to fulfill
those. Taking the time to truly understand the
human element and speaking to customers in
their own language will naturally lead to more
brand affinity leading to engagement.
When customers openly

express themselves, take
advantage of that opportunity
to listen to what they want.
In the move toward customer-centricity; if you could
give one piece of advice to a brand to help them increase
loyalty and engagement with their customers; what
would it be?
Kells: Listen. There are so many avenues now
to understand customers intentions. Tap
into all of them. Whether that be traditional
research, social media, Google search trends,
or any other source. When customers openly
express themselves, take advantage of that
opportunity to listen to what they want. Take
the time to identify the moments that matter
and use those keys times to build loyalty
and engagement.
What are the challenges you see with multichannel

communication for todays marketers and how do we best
address this opportunity for increased engagement?
Kells: One of the biggest challenges for
multichannel engagement is the sheer
number of channels that now exist. The
media landscape has exploded and become
increasingly more fragmented as more
platforms and networks emerge. To best
increase engagement, marketers should
keep consistent messaging but customize as
needed for customer experience on different
platforms. At YouTube we frequently see that
made for YouTube content better resonates
with viewers versus TV content repurposed
for digital. The brand message should be the
same across channels, but be tailored enough
to feel authentic to the environment.
We believe in a process of expectation matching; the
understanding that the consumers expectation change
based on their engagement with a brand and the stage of
the customer lifecycle. Brands struggle with this dynamic
and this idea; yet want to see it put in practice? What is
your advice to marketers?
Kells: Similar to what we discussed above,
use the data available to you to understand
these different customer lifecycles, and also
deeply try to understand what goes on in
an average persons day. Search is a great
opportunity to customize your message
as the searches themselves give a clear
indication of where in the purchase cycle
someone is. Being strategic about how you
answer peoples questions, you can tailor
your message to those who are further
upstream in the research phase versus those
who are ready to buy right now. L
[ empower me ]
Customer engagement optimization
engage.
Dont just deliver experiences.
2015 Verint Systems Inc. All Rights Reserved Worldwide.
Each of your customers is unique their needs,

how they communicate, what they expect.
We can help you uncover those differences
and deliver truly personalized engagement.
For more information about customer engagement
optimization, visit www.verint.com.
FEATURES
Building Brand Loyalty

With Customers:
NCR Corp.
Case Study
Jim Tierney
Loyalty360
NCR Corporation, a global leader in consumer transaction

technologies, always wants to build brand loyalty by helping
its customers/clients develop loyal customers.
And for Jon Lawrence, NCRs Senior Director of Solution
Management, the idea of helping customers build loyalty
for their customers is not new.
As a platform, weve been a provider of loyalty solutions for the
past 10-12 years, Lawrence says. When you look at a restaurant,
its very interesting and fascinating because more than 70% of
a restaurants revenue comes from repeat customers. So, really,
loyal customers drive that. Whether it relates to QSRs or fine
dining, theres some reason to come back. Finding ways to build
that loyalty has been a goal of many operators for quite some
time. The challenge, historically, has been how do you make
that connection evolve into a relationship.
Lawrence points to the massive rise in
smartphone usage globally as a critical piece
of todays customer loyalty puzzle.
Whats changed in the past three years
is the explosive growth in smartphones,
Lawrence explains. People who didnt have
smartphones before or carry cards or had
gone through a more challenging process
when signing up for loyalty programs, now
those barriers now have either been removed
or are much more seamless.
Lawrence says NCR has seen the lift over the
past few years from the growth of mobile.
Its all about the idea of being a seamless
or frictionless experience, he says. It has
grown from loyalty discussions to a broader
customer engagement level. Fast forward to
today and consumers are able to place an
order from their smartphone, pay from their
smartphone, and the benefits of loyalty are
embedded in the experience.
26
Whats more, the operator side of it is even more fascinating,

Lawrence adds.
Because were able to do a whole lot more in personalizing each
transaction, he explains. More traditional loyalty marketers look
at dollars spent, visits, and provide a reward. Now with more
information available, those things can evolve to something like
surprise and delight, or finding ways to engage consumers differently
based on how they engage with a certain establishment.
In taking something thats a core part of a persons life - like a
smartphone - and making it part of a more seamless way of
interacting is what makes this loyalty equation so powerful,
Lawrence explains.
Merchants want consumers to download their apps, Lawrence
says. Some data has shown that as much as ninety percent of
apps downloaded are only used once or less so you want an
experience to create stickiness to the brand.
For restaurants, in particular, engaging customers
from the point they are greeted to the point they
exit is crucial. According to Gartner Research,
restaurants with a loyalty program see a 4%-5% lift
in total sales, while a 5% improvement in customer
retention can increase profits from 25%-125%.
We, as consumers, love to give feedback, Lawrence
says. Finding ways to enable consumers to provide
that feedback in a way that feels like a seamless
part of the overall guest experience can add even
more value to the overall goal of developing more
repeat customers. Weve been working with our
customers to improve survey response rates
through applications that are integrated into the
mobile consumer experience.
ARE YOU REPLACING HOSPITALITY SERVICE WITH THE

MOBILE PHONE?
A mobile guest engagement strategy can enable customers to connect
on their own terms, Lawrence explains. Some customers want to
turn their mobile phone into a remote control for the restaurants
while others want a more conversational experience. A well designed
consumer engagement platform can allow the operator to tailor the
experience to their brandwhile still developing loyal customers.
As far as buzzworthy customer engagement methods, youll be hard
pressed to find topics that are as popular as mobile, Lawrence says.
The level of interest is very, very significant, he says. For those
companies implementing or researching strategies, you have multiple
points of consideration including loyalty as well as payment,
ordering, feedback, and location awareness. All of those things
can tie into the transaction which is generating a whole lot of interest
and excitement.
Brands are moving to mobile to drive customer engagement because
its really what consumers are looking for, he says.
CUSTOMER LOYALTY
The perspective of loyalty is becoming one of a creating a more
personalized experience, Lawrence says. Historically, loyalty
programs might have been viewed more as a one size fits all approach.
However, great experiences can be very different for two people.
Yet, more consumers almost expect to be rewarded for loyalty. A
key goal for any loyalty program is to create an incentive and desire
for the guest to want to come back. By strengthening the connection
between the merchant and the guest into one that moves closer to a
personalized relationship, the merchant can not only help build a
more loyal customer base but also help turn those loyal customers
into promoters.
Understanding and quantifying the value of each guest and particularly
loyal customers is significant, Lawrence notes.
From the marketing side of it, restaurants want to acquire new
customers and more deeply engage existing customers, he says. A
key part is figuring out how to engage your customers whenever they
want, however they choose.
Millennials are digital by nature, Lawrence says. That demographic

is really the future customer for our customers market.
Mobile is a very important part of the transaction.
The future of these businesses is having fewer terminals that face the
staff and more that face the consumer, Lawrence says. Digital spend
is becoming more and more important.
Understanding and quantifying the value of each guest

and particularly loyal customers is significant.
CHAMPION OF CUSTOMER EXPERIENCE AT NCR
From NCRs perspective, were a consumer transaction leader,
Lawrence says. But in terms of Customer Experience, were focused
on our customers, and whatever branded experience theyre trying
to achieve. For us, its a combination of our product development and
product strategy teams getting more engaged with our customers
through individual meetings, conferences, events, and trade shows.
NO MORE ANONYMOUS TRANSACTIONS
NCR focuses on helping companies better understand some of the

challenges they have as it relates to creating a great customer
experience and then using our technology platforms to solve those
challenges, Lawrence explains.
What used to be an anonymous transaction is now becoming more

personalized, Lawrence says. Systems are generating a lot more data
and what we help our customers do with that data is very important.
CRM and other analytic tools now are becoming a more element as
the need to turn the data into information becomes more important
to the overall guest experience. For example, should everyone get
the same promotion or should the promotion be tailored to a given
customers traffic pattern and buying preferences?
The tendency is to look more at technology as enabler of customer

experience, Lawrence says.
When brands communicate with customers, it should never feel

intrusive, Lawrence notes.
We want to help create unique and great guest experiences end-toend and we are starting to see more and more success by leveraging
technology, he says.
It has to feel like an experience and not one that is overwhelming and
intrusive, he says. When brands try to be more customer-centric in
their engagement strategy, its important for them to look at platforms
to support an evolving consumer landscape. Everything is changing
so fast, and its often hard to know what is going to be the answer or if
there will be a single approach, but were all pretty sure the consumer
will ultimately make that decision. L
More and more Internet traffic is from mobile devices than ever
before, Lawrence says, and we want to take our technology platforms,
help our customers leverage this trend, and solve challenges around
creating fantastic guest experiences.
27
FEATURES
Caesars
Total Rewards:
Evolving the
Loyalty Program
Bill Brohaugh
Loyalty360
Yes, there are laurels in the logo of Caesars

Entertainment. But when it comes to
customer engagement and customer loyalty,
the company doesnt rest on those laurels.
For this organization, every customer is a king, a
Caesarthus the company name. But despite this iconic reference
and its glorious past, the gaming and hospitality company is firmly
lodged in the present and the future. Its groundbreaking Total Rewards
customer loyalty program set standards in loyalty marketing and customer data analysis, and Caesars is working to reach new standards
through expansion and evolution.
Total Rewards began by rewarding customers for their gaming
activityslot machine play, for instance. Caesars wisely expanded
Total Rewards to reward activity (and track customer data) at Caesars
hospitality assetsincluding hotels, retail shops, concert venues,
night clubs, and day clubsthink night club with sun, a pool, and
customer swim suits instead of dresses and jeans). The day club
engages the customer at what traditionally was a slow time.
Caesars even partners with a combination bowling alley and concert
venue in Vegas: Brooklyn Bowl is a 3,000 person concert facility, and
you can bowl while enjoying such acts as Umphreys McGee and
Jane's Addiction.
The expansion also went virtualplayers of the companys five mobile
apps such as Caesars Casino and Slotomania earn Reward Credits and
benefit from the Total Rewards experience via increasingly popular
mobile gaming.
Partnerships with Visa, Starwood and Fuel Rewards have also accelerated
program earn.
This expansion presented incredible opportunities, including customer
awareness of the value of directing their gaming and hospitality dollars
toward a single organization. Players earn Total Rewards across the
enterpriseso Reward Credits can be earned, for example, in Vegas,
Atlantic City or Cincinnati, and can be burned there or in Kansas City
or Cleveland or at any Caesars property, whether its Caesars Palace,
Horseshoe, Ballys or any of the other brands under the gaming
companys umbrella.
28
Weve always used the idea that we are a

hub-and-spokes network, VP of Customer Loyalty
Michael Marino explains. Our network is more
powerful than any individual property. If youre in
Kansas City, the reason you spend your gaming dollars
with us as opposed to walking across the street to the
other property that's right there, is that you know that
the more you game with us, the better your benefits are
going to be if you go to Vegas or New Orleans or Atlantic City or
Tahoe or Cincinnati. The bigger you are in our system, the better it
is for you.
Expanding the program and its offerings gave Caesars a

number of advantages:
It fills a need. What do you do on a Saturday, from 10-6?
Marino asks. Sleep, maybe gamble a little bit. At the time, it
was assumed that all you were going to do is gamble. Nowadays,
were going to give you a lot of other options.
For instance, the bars in the casinos look much different than how
they used to look. Now they are presented as places where youd like
to hang out.
It provides opportunity for learning about good customers frequenting
non-gaming locations, and giving those customers additional incentive to
patronize the shops, concert venues and so on that are owned by Caesars.
There are more people interested in the other options we offer who
we havent met yet in Total Rewards, than there are gamblers who
we havent met yet, Marino says. We have a relationship with most
of the gamblers out thereand while there are still plenty yet to
meet, were trying to expand our appeal so we can meet those other
hospitality oriented people.
And, in fact, recent Caesars investment has concentrated on hospitality
offerings, with just three gaming locations (Baltimore, Cleveland and
Cincinnati) introduced recently.
Reacting to shifts in the market. Twenty years ago, 70% of Vegas
revenue came from gamingnowadays, its closer to 30% from
gaming, Marino explains. The nightclub business has exploded, and
the dayclub business didnt exist until a few years ago. The dayclub
industry is a very big industry today and still

growing. Its the same thing you would do
at a night club, but its sunny out, and youre
around a pool. The music, the sound, the feel
are the same. People will pay as much or
more to get a position at a day club as they
would pay at a night club. And as he says,
Its outrageous.
And, of course, it delivers additional revenue.
But the expansion also presented challenges
that Caesars continues to address. Consolidating
customer information from gaming, shopping
and hospitality activity was one element to
deal withbut internal software could
handle that.
This is the hard part about expanding Total
Rewards, Marino says. Total Rewards was
built for the gamer. If you were a guy who
came in and played penny slot machines for
four or five hours, Id treat you pretty well. If
you were a guy who ate at the steak house
every single day, I didnt know your name or
pay attention to you at all. And that person
is likely spending a lot more than someone
playing penny slots.
The perception of Total Rewards as a program
only for gamblers lingers, and communicating
the broad range of benefits to potential
members has been a challenge. To help
meet that challenge, Caesars has hired more
hospitality hosts to interact with customers,
upsell Caesars attractions and services, and
acquire new Total Rewards members.
Were trying to give our hospitality hosts a
reason to sell the program to customers and
to tell them Whats in it for me? The host
can outline the various benefits, and point
out how the customers recent purchase
be it a big meal or something elsecan be
applied toward earning status by joining
Total Rewards.
Simplicity was key, but as Marino notes, Its

hard to be simple while being differentiated.
The art was in the balance.
expansion caused. Caesars considered distinct

gaming and hospitality programs, But its
too confusing.
One tack Caesars took was to make rewards

consistent. In the past, customer spend at the
slot machine was rewarded with five times
as many Tier Credits as the same spend at
the hotel or a restaurant. Caesars recently
changed the Total Rewards structure to
make the earn proposition equal. Part of the
rationale is moving customers into higher
tiers faster.
The two-program discussion evolved into

considering giving customers at a certain tier
the option of selecting what type of rewards
they wanted to receive.
We want people who spend money at the

night clubs, the restaurants, on entertainment,
golf, the spas, and so on to gain higher-level
status with the program, Marino says. In the
past two years, weve invested more in our
high-end hospitality offerings and weve seen
our membership increase in both years.
But Caesars still struggled with the hospitality
customers who didnt understand or even want
the benefits offeredbasically gaming benefits,
not very attractive to people who come to Vegas
for non-gaming recreation. Yes, they could take
advantage of perks like dedicated short lines,
but Marino often heard, I dont feel like Im
getting enough out of the program.
Caesars recently brought in rewards that
aligned with where customers spent their
money. For example, elite customers in the
Diamond or Seven Stars tiers automatically
are given a 15% discount on room rates. Or
free appetizers or other advantages of joining
the program. This is a huge leap from what
we normally do, Marino says.
When Marino joined the organization, he
and other Caesars principalssuch as Joshua
Kanter, former head of Total Rewards now
leading the Hospitality Marketing division
formed (as Marino phrases it) a SWAT
team to consider solving the challenges that
At first all these things sound like good ideas,

but the more you get into how this is going to
work operationally and how to communicate
to our customers, it just doesnt work,
Marino explains. Soagain with simplicity in
mindCaesars decided to make the rewards
available to all members, despite their main
interest. The point is that we shouldnt restrict
those who like to gamble from rewards
like going to the pool, and vice versa. We
shouldnt restrict those who like going to the
spa from taking advantage of the gaming
offers if thats something they want to engage
in. It gives you more flexibility to choose your
own adventure through the program.
Marino notes that the contract between
Caesars and Total Rewards members is the
exchange of data for value, And I want to
make sure I use the data to deliver something
relevant in return. Rather than giving you
$20 at the spa and $20 at the night club and
$20 of gaming and $20 of food, if we know
that all you care about is food, lets give you
$80 dollars of food.
Ultimately, Were striving for a program with
broad appeal, Marino says. Theres value
to everybody. From the really big customer
well do anything for youto the customer
who shows up every single day, we have
something for you. With the customer who
shows up once a month, we have something
for you as well. L
29
LOYALTY FORUM: TRENDING NOW
Trending
Now
SOCIAL NETWORKS AS SHOPPING PLATFORMS
Social networking sites are adding purchase functionality, enabling brands to connect
commerce with community and content what some call the internet trifecta. In
mid-2014 Facebook and Twitter announced testing of Buy functions with a limited
set of retailers; look for the functionality to be widely available soon. The Like2buy
platform from Curalate is already being used on Instragram by brands such as Target
and Nordstrom. Houzz.com, a social network for home design, connects consumers
with professionals in the industry, displays of their work and the ability to purchase the
products featured in the content.
Brands
Selling
on Social:
REIMAGINING RETAIL
The Greek philosopher Heraclitus may have been predicting the current state of retail
customer experience when he said The only thing that is constant is change. Change
is afoot in customer experience for many retailers, driven by evolving demands and
expectations of customers. Same day local delivery is being offered more widely, most
recently by grocery chains. Free shipping is becoming commonplace to the point where
consumers have almost come to expect it. Online-only retailers are expanding to brickand-mortar locations in order to expand their market share. Brick-and-mortar stores
are turning into lifestyle destinations in hopes to take the customer experience to a
whole new level.
Who is
Reimagining
the Customer
Experience?
NEW PAYMENT SOLUTIONS
Brands are tapping into new technologies to enhance the payment experience and
make it more secure. The release of Apples mobile digital wallet and payment service
Apple Pay has created an increase in overall adoption of mobile payment functionality
by merchants. In the wake of widespread security breaches, the increased security
provided by mobile payment services is an added bonus. In the U.S., a looming
October, 2015 EMV liability shift mandate is driving merchants to accept Chip and
PIN credit cards (rather than the swipe and signature technology used widely up
to this point). Merchants that arent equipped to accept credit cards with Chip and
Pin technology will be held liable for costs if and when credit card fraud takes place.
Likewise, banks that do not issue chip and pin cards will be held liable. Chip and PIN
technology is also expected to enhance security.
30
Where to Use
Mobile or
Chip and Pin:
FEATURES
Grocery Powerhouse Ahold

Surveys Changes in the
Grocer-CPG Relationship
Bill Brohaugh
Loyalty360
The initials CPG do not stand for

Changing the Promotion Game
but they should.
saw the customer moving into new

worlds, we saw new business models
rising, and we saw enormous growth
for the future. If you want to be relevant
for your customers and offer them the
right experience, you really need to be
where your customers are.
The traditional business model of

food is changing, says Rick Swinkels,
Vice President of Global Customer
Loyalty at grocery conglomerate Ahold,
with stores in the U.S. (including Giant
Food, Stop & Shop and Peapod), the Czech
Republic, and The Netherlands. And such
change impacts grocers relationship with
CPGs (which of course refers to the
manufacturers of Consumer Packaged Goods).
In fact, Swinkels notes that a customer using

the online channel spends 20% more than
any other customer.
In the old days, we looked at activity on the

shelvessuch as rotation and profitability of
SKUs, says Swinkels. A SKU that didnt rotate
didnt get on the shelf. Now we know that
some low-sellers are extremely important to our
best customers. Not stocking those important
low-sellers erodes the value of the store to best
customers, and erodes their loyalty to that store. For CPGs,
thats a totally new business model. We dont challenge the CPGs
on their campaigns, but on whats in it for the best customers. What
drives their loyalty and what makes them more loyal to the CPG brand
as well as to the store?
As an example, diapers take up a lot of shelf

space in the small stores in the Netherlands.
It's all about dividing the assortment in these
smaller stores, says Swinkels. If you don't pay
attention and adjust to these trends, you leave a
lot of profitable and, from a customer standpoint,
very important shelf space that we use for products
that don't sell.
And for promotional purposes with diapersfor example, for five
weeks out of the year, we are selling 70% of our volume, and that was
in the old world. So now you still have the same volume, but you have
over 50% of diapers being sold online.
We believe that because we can build the right solution to each

customer, we can offer much more to CPGs than has been possible.
We can be extremely relevant for our customers and for our CPGs
in targeting the customers who are important to the CPGs. As
well, new products from CPGs can be promoted to amenable
customersfor example, customers who have made consistent
purchases in a particular category or from
a particular brand.
using the online
Swinkels notes that CPGs go for mass communications, which

become less and less relevant day by day, and they struggle.
They need platforms and solutions to reach their most loyal
customers. Those solutions allow the
CPGs to shift marketing allocations from
...a customer
mass promotions to targeted promotions.
And they can place products with greater
channel spends 20%
margin and lesser frequency because
any other customer.
they're important to the best customers.
Expending resources on discounts and mass promotions leads to
rewarding disloyalty instead of loyalty, says Swinkels. In other words,
such blind efforts court the cherry-pickers instead of the best customers.
The new approach impacts such factors as relations with CPGs,
delivery mechanisms, and ways to make purchases. Our culture
is innovation, says Swinkels. We stand for strong brands and
we stand for innovation for bringing new things alive. We saw that
our customers are getting more into online and digital. Also in
the Netherlands, we have an online food-delivery serviceone
thats been around for 25 years, though it began by taking orders
by telephone. We never made any money on it until recently. We
more than
For example, If a CPG wants to introduce

a big innovation, sampling is good. The
retailer and the CPG know who the
customers are, invite a certain group to
sample the product, and then reach out to that group after the sample.
Such an approach also allows for the use of focus groups. Swinkels
points to a test by Coke Zero as an example. A sampling promotion
was sent to non-buyers, and results analysis eight weeks afterwards
showed a sales uplift of 13-18%.
As Swinkels concludes, "That's the new way of retailing. L
31
FEATURES
Drives
For Avis Budget Group, Customer Experience
Brand Differentiation
Mark Johnson
Loyalty360
We inherited a brand portfolio that offered many advantages, but also many
challenges, Haas explains. Avis and Budget were well-established around the world,
but not well differentiated from each other or competitors. In our industry, the major
competitors offer similar products and services at similar price points at the same
major airports and urban centers. Given this commoditized nature of our industry,
developing and deploying a robust and differentiated brand portfolio strategy was a
key priority for us.
Avis Budget Group today consists of Avis Car Rental, Budget Car Rental, Budget
Truck Rental, Payless Car Rental, Apex Car Rentals, and Zipcar.
My first priority was to build a world-class marketing team with proven expertise
in digital and in international marketing, which would align our talents with the
companys global strategic plan, Haas says. From there, we hired a brand consultancy
to help us redefine our brand strategy. We spent several months analyzing data,
understanding our strengths, opportunities and competitive set. We engaged with
customers and as importantly with our employees and, armed with these insights,
we developed a redefined brand positioning for our Avis and Budget brands.
When Jeannine Haas, Chief

Marketing Officer, North America,
at Avis Budget Group, joined the
company three years ago, she was
excited about the opportunity to
redefine and build upon the heritage
of the companys global brands.
32
What was the conclusion after that time of redefining the role of the Avis and
Budget brands?
Both brands had tremendous equity our goal was to refine the brand specific
personality, voice and positioning to ensure each brand delivered a differentiated
customer experience that was consistent across the brand touch points, Haas says.
But this was going to require sacrificing some sacred cows in favor of solutions
appropriate to the fast-changing consumer expectations of our current times.
Haas notes that being lined up side-by-side with our competitors at airports forces
a company to delineate a clear customer experience.
What had successfully distinguished us from our major competitors in the past had
been our dual-brand approach, she explains. But following our success our industry
underwent further consolidation, leaving the three major international competitors
each with a portfolio of two to three well-established brands. So this forced us to
segment our customers, and today we view our industry segments as including
premium brands like Avis, which offer the ultimate in service and amenities; mid-tier
value brands like Budget, which offer the same great clean late-model vehicles as
premium brands, but at lower prices and with fewer amenities. Deep-value brands,
like Payless, typically provide vehicles that are older and have higher mileage
compared with premium and mid-tier value brands, and tend to compete primarily
on price. Then theres the self-service car sharing industry that is led internationally
by Zipcar; we do not view the peer-to-peer car sharing companies as occupying a
segment within the vehicle rental industry.
The result of this consolidation was an even greater challenge to

differentiate brands within specific segments and create a clear
distinction in the minds of consumers so that no matter what their
travel requirements and preferences, Avis Budget Group has a brand
that serves these needs better than the rest.
emails and what types of emails, and what are they clicking on so we can
better understand the preferences of the customers so we can deliver a
differentiated experience that meets their needs, Zamore explains.
The challenge then becomes maintaining a strategy of engagement and
retention to deepen customer loyalty.
Our global strategic plan has four pillars: Accelerating growth, expanding
our global footprint, putting the customer first, and driving efficiency
throughout the organization, Haas explains. My team has had to play
a key role in each of these strategies, and that
requires having the best people.
The Challenge of Listening and

Understanding Customers
Upon her arrival at Avis Budget Group, one
of the new hires Haas brought in was Neal
Zamore, Vice President, Consumer Marketing.
At Avis Budget Group, we have invested in our owned channels

as well as in building strategic relationships with key travel brand
partners and membership associations to fuel our customer
acquisition pipeline, Haas says. We leverage
customer information to deliver business value
Our global strategic plan has four
and ensure we meet customer needs. We
pillars: Accelerating growth,
provide multiple options for our customers to
expanding our global footprint,
do business with us across channels. We want
our customers to choose the channel that works
putting the customer first, and
best for them.
driving efficiency throughout

the organization,
Neal has a wealth of digital experience and

is a great asset to our team, Haas explains. In addition to managing
our digital and ecommerce business, he also manages our Customer
Relationship Management (CRM) and loyalty initiatives.
Most marketers face the challenge of listening and understanding
customer needs in different ways, Zamore says. Avis has a tradition of
being a technology innovator and leader, being the first in the vehicle
industry to offer computerized reservations and the first to launch a
mobile app.
We have been significantly increasing our investment in technology,
Zamore explains, driven largely, if not entirely, by marketing
insights. Our Marketing and IT groups used to live in different
worlds, but not anymore. We have an integrated approach to
capitalizing on the opportunities inherent in digital.
For example, Zamore explains, there was a time when customers
had to fit into the companys operating system.
Now its quite the opposite, he says. About a year ago, we
prioritized social media as an important channel to have a twoway conversation. Not only are we committed to listening in
to what our customers have to say, we pride ourselves on
being responsive and when possible, proactive. In this way,
we can see the ways we can enhance our brand value and
drive positive differentiation that helps drive revenue growth
and improves brand loyalty.
As a key step to make this happen, Zamore says Avis Budget
Group has enhanced its customer database.
Years ago, when we launched our customer data system, it was all
about the transaction, but now there are other attributes, there are
preferences, what are they saying in social, how often are they opening
FEATURES
Avis continued...
New competitive pressures, new technologies and new customer

needs have entered the equation.
Its incumbent on you to make sure your customer-facing people
follow and adhere to the purpose you have stated, Haas says. Were
proud that our engagement levels in our organization are outstanding
and we attribute that to open communication and collaboration. The
team here knows that the work they do makes a difference. Timely
recognition and simple thank-yous go a long way. People like to know
the work they do matters.
Big Debate: Magic or Logic

Theres been debate about whether the role of marketing is driven
more by magic or logic Haas says. Increasingly, marketings role as
the data-driven source of customer insight leans to logic. That said,
there is always an emotional connection that brands seek to build
that creates the magic. In my opinion, there will always be a blend.
The more information we can garner from customers, the better the
experience that brands can craft for that customer. It has to be mutual.
Its all about our customer and how our brands support our customers
in their journey. L
Harnessing Customer Data

Obtaining data isnt an issue, Haas says.
We have tons of customer data, she explains. The home run is
when we are able to consistently harness the data dynamically to
ensure were delivering the right offer to the right customer in the
right channel at the right time. Again, we want to make it easy for
customers to do business with us.
As a result, Zamore says the Avis Budget Group brands continually
seek input from customers about their experiences through a variety
of ways.
We frequently undertake ethnographic interviews so we can observe
and hear what is important to them, Zamore says.
Gone are the days where brands control the message, the conversation,
and the dialogue, Haas explains. The proliferation of social media
channels and the rise in customer expectations around immediacy
of response has changed the dialogue, which includes what information
youre receiving from your personal community, and that is a big
component of the empowered consumer.
Avis Budget Group conducts extensive customer journey mapping,
Haas says.
Its enlightening for us as brand managers because customers have
all this information and have become very well informed and articulate
regarding what they want, she says. The extent to which they share
with us makes it easier for us to deliver on their expectations.
Historical Little Guy Mentality

When Avis was founded, it grew rapidly by pioneering the concept
of on-airport car rental locations, Haas explains. They struggled
with the brand, but ultimately succeeded through a positioning as
the underdog, with a belief that employees had to work harder and
do things differently to compete. As the company grew, the culture
evolved and the underdog positioning succeeded for decades. Now,
weve moved past that to a more contemporary positioning for each
of our brands, but what remains at the core is a workforce that is
committed to doing the right thing.
34
Mark is CEO & CMO of Loyalty360. He has significant experience in selling,

designing and administering prepaid, loyalty/CRM programs, as well as data-driven
marketing communication programs.
The State of Customer Experience:

A Journey to Loyalty
Who owns
the customer
experience?
51%
of companies hold more

than one group
accountable for CX
The CX Landscape: The State of the Industry study surveyed more than
250 brands to understand the current and future states of customer
experience. The study revealed that brands are striving to create more
personal customer experiences and one-to-one engagements with their
customers that lead to loyalty, but the market isnt in agreement about
the optimal structure, approach, tools or techniques to utilize.
How are employees

empowered and held
accountable?
While.
26%
26%
hold Marketing
solely accountable
of companies openly communicate

CX KPIs to all levels of the organization
to empower employees
15%
use employee rewards,

recognition or incentives
12%
set measurable CX goals for employees

at all levels of the organization
What CX
tools and
innovations
are next?
24% 19%
are considering or piloting

new CRM tools
are using personalization

and describing it as an
innovative strategy
*Data from the CX Landscape: The State of the Industry report, published in November, 2014 by Loyalty360.
13%
are always serving
up personalized
customer experiences
35
LOYALTY FORUM: BEHIND THE BRAND
BehindtheBrand
WITH JOSE COSTA | PRESIDENT, MAACO
Jose R. Costa is president of MAACO and has led the companys resurgence during the past two
years. Costa will be the featured speaker during a fascinating session titled, MAACO Places the
Customer First, to be held at the 8th annual Loyalty Expo, presented by Loyalty360 The Loyalty
Marketers Association. The event will be held April 27-29, 2015, at the Loews Royal Pacific Resort
at Universal Orlando in Orlando, Florida.
Previously to joining MAACO, Costa was Vice President of Marketing and R&D at BURGER KING
where he grew Latin Americas EBITDA from $50 Million to $80 Million in 26 months. Prior to that,
he was President of COSTA IMC, a branding and interactive marketing firm with focus on the U.S.
Hispanic and Latin American segments.
OVER THE LAST FEW YEARS YOUVE BEEN INSTRUMENTAL IN

MAKING OVER THE MAACO BRAND. WHAT HAS BEEN THE MOST
REWARDING PART OF THIS EXPERIENCE?
When I began developing Maacos vision and direction for the next
five years, I actively obtained the opinions and insights of as many
franchisees and colleagues as possible. Capturing their personal
visions, getting the chance to engage their passions and motivating
them to turn these visions into milestones, has been the best part of
my time here. Ive gotten to meet and work with some exceptional
individuals towards a better future for their business and our
company. Stepping out of the office and into the work field has also
been humbling and eye opening, and Ive learned lessons that have
prepared me more than ever for the road ahead, as we plan to
continue growing the Maaco brand.
WHATS THE TOP PRIORITY FOR 2015?
To improve the customers experience, thats our top priority. Over the
last year we have implemented several initiatives to ensure that they
can have the best service, whether they visit a Maaco in San Francisco
or Miami. Weve spent a lot of time and effort building better tools
and enhancing our locations for the benefit of our customers, and that
includes online scheduling, our Maaco App, and the Maaco Store.
IF YOU WERE GRANTED 3 WISHES FOR YOUR BUSINESS
WHAT WOULD THEY BE?
1. Drive greater profitability for franchisees
2. Taking training to the next level to improve employees skills both in
the front of the shop and behind the scenes
3. Continue innovating across every aspect of our business
36
WHAT TRENDS ARE YOU SEEING IN THE MARKETPLACE TODAY?

We see a shift in the marketplace where consumers are looking for
brands to be more nimble and react to their needs much quicker and
in a transparent way. By leveraging emerging technologies and
engaging with consumers across media channels we are able to
predict their needs and build a long-term relationship that develops
from one generation to the next. Maaco embarked in this journey
two years ago and we are already seeing great results.
IF YOU COULD PICK ONLY ONE THING, WHAT DO YOU BELIEVE
MOST INFLUENCES A GREAT CUSTOMER AND/OR EMPLOYEE
EXPERIENCE? AND WHY?
You only get one chance to make a first impression, so you have to
make it a great one. Your business appearance can make or break a
sale, because customers wont trust you if you dont deliver on your
brand promise. Thats also important for the employee experience
you want a place where your staff feels comfortable and is proud to
work at; a place they can look forward to going to every day.
WHO HAS HAD THE MOST INFLUENCE ON YOUR PROFESSIONAL
LIFE? AND WHY?
Ive had three mentors who have shaped me into the person that I am
today Tom Collinger, graduate marketing professor at Northwestern
University; my father, who is also my best friend; and Glenn Newsom,
my executive coach for the last 10 years. They have guided me
through every step of my life, and having them as mentors has helped
me tremendously.
They have also helped me see that it is not only important to be
mentored, but also to become a mentor.
WHAT IS YOUR PERSONAL MOTTO?

Treating people equally and with respect. It doesnt matter where
you sit in the organization all of us have similar struggles and
dreams to succeed and provide for our families.
WHAT WAS YOUR LAST "AH-HA" CUSTOMER EXPERIENCE?
WHAT MAKES THIS MEMORABLE?
My last Ah-ha customer experience was with the Four Seasons
hotel in Los Angeles. They know my wife and I are loyal consumers
and every time we stay with them they find a special way to
thank us for our business. They are very good at capturing our
needs and wants in their CRM system and every time we stay
with them we are wowed!
WHAT BOOK ARE YOU RECOMMENDING & WHY?
I tend to read mostly business books on leadership and marketing,
Good to Great is one of my favorites, but I recently read Unbroken.
Its an inspiring story about the human spirit and took me by
surprise. Louis Zamperini was a formidable man and I think
theres much to learn about his strength and his life after
spending years as a POW.
IF YOU COULD INVITE ANY THREE PEOPLE TO DINNER (PAST
OR PRESENT), WHO WOULD THEY BE AND WHY?
Steve Jobs would be first, of course. He was a visionary and
his technology changed the world. Id also invite Tony Martino,
founder of Maaco. I am humbly following in his footsteps and
have developed a deep appreciation for what he built. No one
knew his teams and operation better than Tony, and Im in awe
of his legacy. And I also have to include Jack Welch (former CEO
of General Electric). Jack is probably one of the greatest businessmen
of our time and it would be a privilege to continue to learn
from him.
WE LIKE TO END THESE INTERVIEWS WITH SOME WORDS OF
WISDOM. WOULD YOU PLEASE SHARE A TIP OR KEY LESSON
YOUVE LEARNED OVER THE YEARS THAT COULD HELP THE
NOVICE MARKETER?
Sometimes, you just have to "get your hands dirty," and working
with your team is the best source of motivation, respect and
leadership. Listening to the people you work with and opening
yourself up to their ideas is also one of the smartest things you
can do. I love working alongside frontline employees and seeing
the world from their perspective. This is the best way to implement
meaningful changes to any business.
QUICK FIRE QUESTIONS*

WHAT IS YOUR
FAVORITE WORD?
WHAT IS YOUR LEAST

FAVORITE WORD?
WHAT TURNS YOU ON
CREATIVELY, SPIRITUALLY,
OR EMOTIONALLY?
WHAT TURNS YOU OFF?
WHAT IS YOUR FAVORITE

(PG-13) CURSE WORD?
PERSEVERANCE
IMPOSSIBLE
1
2
3
4
5
6
7
8
9
10
MY FAMILY AND MY FAITH
NEGATIVITY
DAMN

YOU LOVE?
MY CHILDRENS LAUGHTER

YOU HATE?
MY CHILDREN CRYING
WHAT PROFESSION OTHER

THAN YOUR OWN WOULD
YOU LIKE TO ATTEMPT?
RUGBY PLAYER
WHAT PROFESSION WOULD

YOU NOT LIKE TO DO?
HEART SURGEON. TALK

ABOUT A HIGH-PRESSURE
JOB!
IF HEAVEN EXISTS, WHAT

WOULD YOU LIKE TO HEAR
GOD SAY WHEN YOU ARRIVE
AT THE PEARLY GATES?
WELCOME HOME, MY SON
*Inspired by James Lipton on Inside the Actors Studio we asked Jose to share his quick fire response
to the questions originating from the French series, Bouillon de Culture hosted by Bernard Pivot.
37
LOYALTY FORUM: LOYALTY INNOVATION
Loyalty
Innovation
Products,
Advancements &
Technologies
Location-based marketing is the next game changer. Consumers require more

from retailers as mobile phones and applications move closer and closer to
the center of the multichannel shopping experience. From NFC tags and QR
codes, to BLE Beacons and Geofencing, proximity nodes are quickly becoming
the go-to distribution points for loyalty and marketing messaging. As retailers
wrestle with the challenge to have meaningful interactions with their
customers, they also struggle with the prospect of figuring out how to
integrate proximity with an existing infrastructure already in use. Whether in
the brick and mortar space, online, through out-of-home advertising, or even
in airport and transit terminals, the challenge becomes getting the relevant
message to these consumers at the right place at the right time, at the
moment they want it and in the space they need it.
At Smartwhere, delivering this contextually-aware, time-sensitive message is
our first priority. Retailers and marketers can focus on the message without
having to modify existing loyalty applications and their teams have the power
to deliver relevant content at the click of a button. MVP customers arriving
early to the boarding area? An offer to visit the lounge appears on their
smartphones as they stroll past the entrance. A medallion-level member
enters the store? They are personally welcomed and invited to an exclusive
event designed specifically for loyal customers. And after their shopping
experience is over and theyve left the store, they realize their parking has
been validated. By seamlessly utilizing both the hyperlocal technologies and
existing wireless infrastructures, Smartwhere takes proximity beyond simple
location-triggered coupons and into richer experiences that anticipate the
needs of customers.
For more information, please visit us atwww.smartwhere.com
Todays unprecedented level of consumer demand

requires loyalty programs to be better; to strive to
understand their individual consumers on ALL levels, to
reward them in real time, via their preferred channel, with
individualized content and offers that demonstrate how
their preferred brand is loyal to THEM.
Snipp Interactives holistic and innovative platform, with
full EPOS integration, is designed specifically to address
these demands. It understands that todays consumers
are loyal to brands that represent values, aspirations and
lifestyles, not merely a product; and are simultaneously
connected across a growing number of channels, with
unlimited buying options. Consequently, Snipps platform
is mobile first, provides the opportunity for immediate
gratification, rewards frequent interactions of any size
and continuously engages the consumer with individually
relevant snack size content.
At the core of Snipps advanced platform is their mobile
optimized receipt processing and image recognition
technology, which eliminates costly and cumbersome
on-pack codes, removes tedious consumer mail-ins,
rewards fans for numerous actions, including creating
and sharing content and integrates with 3rd party devices
like activity trackers to reward healthy activities.
With all the features of an enterprise-class loyalty
management platform, (full administration console for
easy member management, flexible promotions, physical
and digital touch point integration, reward shops,
integrating multiple reward partners and more) we
bring the extensive programs once reserved only for
retailers, to the brand level, providing brands and retailers
alike with a centralized data analysis tool to support
effective modeling of future behavior.
For additional information and case studies please visit
http://www.snipp.com
SPONSOR | 2015
Chirpify helps brands nurture and reward loyal

consumers for their actions on social, enabling them to
develop deeper advocacy, reach and loyalty because
they serve to establish and build upon a customer
relationship.
Customer Listening Just Got Easier with InMoment
Chirpify unlocks the power of social and mobile loyalty by

adding social triggers to existing loyalty and rewards
programs, and helps brands create new Social VIP
programs that surprise and delight consumers. In doing
so, Chirpify amplifies a brands message by an average of
8x, increases program participants by 45% and converts
on average 50% of targeted consumers. Chirpify offers
three types of loyalty programs: Social Loyalty, Brand
Ambassador, and VIP Clubs.
Active Listening Suite: Open-ended comments are a goldmine of customer

understanding. But all too often, those comments are short or dont include
much detail. The Active Listening suite engages customers with visual cues
and relevant follow up questions that encourage them to share more of their
stories, and lets them know that their feedback matters.
Within these programs, Chirpify enables brands to link

social posts and actions to existing point programs,
rewarding social behaviors with miles, points, or another
currency. A consumers social handle can be connected
to their membership identity and the CRM system,
enabling a more holistic view of program customers while
providing data collection and analysis of which
incentives, content, and marketing assets get the most
interaction and response. Chirpify allows participants to
engage over multiple channels thereby increasing
engagement and with it customer loyalty. For example,
loyalty program member, Sheila has opted in her social
ID and email. Down the line, Sheila visits a store and
checks in. Chirpify listens for that check-in action and
pieces it together with her stored consumer data.
Recognizing Sheila, the brand can then automatically
send her a personalized (mobile) email, thanking and
rewarding her for visiting.
EXHIBITOR | 2015
Loyalzoo is the only loyalty platform that works the way you do.
With Loyalzoo you can create your own loyalty program
based on your business and your customers - and you
can give loyalty points any way you want. Share them on
social media, put them in email marketing campaigns,
print them on your business cards or use our beautiful
mobile app.
With Loyalzoos patent pending system, loyalty points
can be given for any action you want - whether its for
buying an item or even filling out a feedback form! Its
about engaging with your customers on their terms. If
they have a smartphone - give them points through the
app. Are they active on twitter, send them in a tweet.
Or just print them on the receipt - the possibilities
are endless!
Loyalzoo is the first affordable omni-channel loyalty
solution. We know that people love loyalty points, but we
also know that customer engagement starts by removing
friction. Loyalzoo is not only super easy for customers
- our POS integration means your staff will love it too.
If youd like to know more, please visit our website www.loyalzoo.com.
Customer stories are one of the most powerful business tools available.
InMoments new listening features help brands get better stories, take better
action, and improve customer relationships in the process.
Social Listening: Customers are talking about their experiences in online

reviews and on social sites. InMoment allows you to gather customer
stories from popular social sharing sites, including Facebook, Twitter, Yelp,
Google+, TripAdvisor, OpenTable, UrbanSpoon and FourSquare. Automated
alerting and links to comments allow immediate response. Role-based
reporting allows you to view social stories on their own, or together with
customer feedback.
Data Integration: Clues about customers experiences can be found in many
places. InMoment can collect customer data from a variety of sources, apply
real-time text analytics, and marry this information with customer stories to
paint a holistic picture of the overall customer experience. Sources include
CRM, POS, Loyalty, Agent Notes, Mystery Shop, Ticketing, and more.
For more information about InMoments new listening capabilities, including
a short video, visit: http://www.inmoment.com/products/experiencehub/#active-listening.
By personalizing offers and incentives to maximize their relevance to each

individual customer, marketers are able to maximize customer engagement
and spend (and reduce churn), while also increasing goodwill, enhanced
brand perception and word-of-mouth promotion.
The technologies required to deliver effective one-to-one marketing are
evolving rapidly. Some of the key technologies in this science-driven
marketing space include dynamic customer micro-segmentation, predictive
behavior modeling and automated campaign execution/optimization. When
baked into an easy-to-use solution designed just for marketers, these
technologies enable remarkably-successful customer marketing and retention
programs in which no customer is left behind!
The industry leader in this field of marketer-friendly retention automation
software is Optimove. Forged and perfected in the fires of the retentionobsessed iGaming industry, Optimove is now making rapid inroads into the
e-retail industry. The companys visionary founder and CEO, Pini Yakuel,
predicts that, in the very near future, every e-retailer will either personalize
or vaporize.
The Web-based Optimove software makes it easy for marketers to plan,
manage and automate an entire multi-channel customer marketing plan. With
Optimove, marketers maximize revenues and customer lifetime value by
automatically personalizing, executing and optimizing a complete framework
of customer-data-driven campaigns. The software intelligently delivers
highly-targeted campaigns via a wide range of channels, including website
pop-ups, email, SMS, mobile push notifications and Facebook custom
audiences.
Optimove is trusted by more than 150 customer-centric brands.
Learn more at www.optimove.com.
TECHNOLOGY, TRENDS & REWARDS
Experience
First
Loyalty360 sat down with Wendi Hampshire,
Senior Director of Client Solutions at Connexions
Loyalty. Wendi helps Connexions clients solve
business challenges and create the best possible
customer experiences within their loyalty programs.
What loyalty program features do customers care

about in 2015?
Previously customers accessed loyalty programs
through their PCs and more recently, their tablets.
Now your program is accessible everywhere your
customers go on their smartphones. They can book a
hotel reservation once their flight lands in a new city,
they can redeem for gift cards while theyre walking to
a store or restaurantthat accessibility creates a new
interaction model with customers, which is exciting.
Customers are really looking for their loyalty program
to provide them with immediate gratification and
access to their rewards, but also be a safe and
secure experience.
We hear a lot about security in terms of e-commerce

sites. How concerned should I be about fraud control
as it relates to my loyalty program?
Points are just like any other currency and have a real
value in the marketplace. There are a host of new tools
to enable a more secure customer experience. In order
to keep customers safe within the loyalty program, we
tell clients to employ multiple lines of defense.
So, specifically what can I do to keep my

customers safe?
Its important to use fraud detection tools throughout
the transaction that will collect a number of pieces of
data to help verify the person's identity as well as score
that transaction for potential fraud. These tools allow
the system to intelligently determine what to do and
how to handle that transaction next.
40
SPONSOR | 2015
You mentioned immediate access. Within their

loyalty program, what do customers care about in
terms of mobility?
Customers want a loyalty program experience thats
easy to use and intuitive, as well as an experience that
delivers locally and socially relevant content when they
need it.
How should I answer these mobile needs?

There are some great tools that improve usability and
relevance for loyalty program customers. If a customer
is out and about getting ready to walk into a specific
store, with geolocation functionality, you can deliver
customized content to her. For example, you could send
her a gift card in real-time as a text message or email.
And, just like that, she can use the eGift as payment for
purchases at the store.
Another is to use responsive design principles, which
provide optimal viewing regardless of the device being
used. For example, if a customer is searching for a flight
on her phone, she wants to enter departure and arrival
cities, and date options first, then be able to scroll
through flight options. Responsive design presents key
information to the customer as she conducts a travel
booking, streamlining the process and the overall
steps needed to complete that booking using her
mobile device.
On a personal level, how do you plan to use your

points this year?
I like to use my points specifically for travel. This year
I'm looking to go and explore new places, and I'm
considering a trip to Iceland so my points will go
towards that. L
M O T I VAT E . R E WA R D . C O N N E C T.
We know how to motivate your employees, customers and partners. We
provide the power to reward them with the incentives they want, when they
cxloyalty.com
800.622.4863
want, creating loyalty for your brand. And, in the end, we connect your brand
to their lives, ensuring they choose you over the competition time and again.
So you dont
want to reward
your best
customers?
Barb Olson
Cogensia Loyalty Solutions
We have worked with retail clients and franchisees that want to build customer
loyalty and drive incremental store traffic, but are not interested in funding any
rewards or discounts to their existing best customers. We have their business
already, why should we provide them discounts? Its a good healthy debate, but
here is why you may want to reconsider rewarding your best customers.
1. You need the customer data!
As a retailer with walk in traffic, unless you have a reservation system or

a required walk in sign up, it is very likely that you do not know your
customers and all of the business they do with your company. What do
they spend? When do they visit? What do they buy? Do they come in
with friends? Do they shop multiple stores? Customers need a reason
to give you their name and unique identifier (like their phone number)
to know who they are and their associated transactional data. That may
be a service requirement for a brand like Great Clips that asks for your
phone number when you walk in and tracks your product and service
purchases; or it may require you to give your guest a simple value
proposition to motivate them to identify themselves on every visit
and touchpoint.
2. Data enables customer insights
Once you know who your customers are and can track their transactions,
you can dive into the data and determine who and whats really driving
your business profitability. Add to that any other internal data you can
obtain from individual customers such as their preferences, customer
service calls, web, social and mobile data. Then append extensive
consumer demographic data available in the marketplace to get a full
view of the customer. The result is defined, distinct marketable
segments of your customers of not only how they use your products
and services, but WHO they are in life.
42
3. Insights enable differentiated treatments

aligned to your brand
Now that you know who your customers are holistically and what
they are worth to the business, determine how to recognize and
engage them with relevant treatments. Do you need a simple do,
get value proposition to motivate them to identify themselves at
every touchpoint? What can we do to bond them to your brand in
a manner that reinforces your key brand attributes and fits their
needs? Best customers may receive first access or trial of your new
products and services, or receive relevant time fused offers based
on what we think they should buy next or just simple relevant
recommendations. Can you create a new bundled offer that attracts
a community? The goal is to engage customers in a relevant
manner that reinforces your unique brand attributes and invest in
customers appropriately to drive greater business profitability.
Its an art and a science. You can test and learn to identify the
best ideas.
4. Get relevant in your communications
Customers expect us to know them today. When you get something

that is so not me, you wonder if the brand really cares. Dynamic
execution allows you to target the right offer to the right customer
at the right time. Vary your creative, offer, message and channel to
show your customers you really know and care about their business.
5. Be smart with your customer investments
Data driven marketing allows you to invest in your customers to

both retain and grow their business. This should not mean that best
customers get nothing. If 10% of your customers drive 40% of your
business, you may need 15 new average customers to replace one
of these customers! It may feel like profit dilution, but an intelligent
investment to retain customers is not a waste. Vary the investment and
aggressiveness of offers by customer value to maximize their lifetime
value. Again, test and learn what drives the behaviors you want and
delivers greater profitability to your bottom line.
6. Best customers love your brand and

will give you more!
Most businesses dont have a 100% share of their customers

wallet. Customers dine at multiple restaurants, shop at several stores
and online and carry multiple credit cards. They have multiple brand
choices. For many businesses, getting 1 or 2 more transactions out of
a percentage of your customers can be transformational to your
business. Experience shows that its easier to get someone that loves
your brand to do more business with you than it is to acquire a new
customer or get a very infrequent buyer to buy more. Best customers
are key to retaining and growing your business. L
SPONSOR | 2015
JOIN BARB OLSON AT LOYALTY EXPO 2015

We encourage you to join Barb and Sue
Smolenski, Director Loyalty, CRM and
Mobile Strategy withTrue Value as they
presents the session: Using Data Analytics
to Move Customer Loyalty to Enterprisewide. During this session, Barb and Sue
will share the True Value loyalty journey!
Barbara Olson is a seasoned marketing executive and loyalty marketing leader with
over 20 years of experience driving company sales and profitability through effective,
measurable, data-driven marketing initiatives that acquire, retain, and build
relationships with profitable customers.
43
Change Management
Its Time for Transformation
Our vision is to become customer centric, the CEO announced. Happily, he was presenting
a set of slides describing the beauty and importance of loving the customers and our
commitment to roll this program to all employees in the next 24 months. The reactions
from his lieutenants, though, were not as enthusiastic as hed hoped. Deep down,
they were not committed; the change he sought did not resonate.
Lior Arussy
Strativity Group
he real issue was not the principle of becoming

customer centric. Some executives were simply
offended that he did not think they were already
customer centric. They honestly believed they
were. Other executives saw the new program as a bad
judgment on their past performance. They worked hard
to achieve the target financial numbers and did so
successfully. The new program implied that they had done
the wrong thing: not a welcome message by any stretch of
the imagination. Neither group welcomed the change.
The Current State of Change

Ever since the early days of change management, change
was treated as an event. The prevailing thought was that,
to assist an organization in changing, one should follow a
process, beginning with a clear vision to skills development
and tools enablement, to ensure the change would take
root and become a second nature in the organization. This
model was applied to new programs, business models and
technology implementations. A variety of approaches were
utilized, but all followed the same line of thought: change is
about a turbulent event with periods of stability in between.
Organizations need to learn to absorb those stormy
moments between their quiet waters existence.
The speed of technological evolution created structural
changes in business models, communication channels
and customers-vendor relationships that required a new
paradigm. Change is no longer defined as penetrating
events interrupting an otherwise quiet existence. It is a
constant series of events taking place daily. It is a reality
of life. It is, therefore, challenging every organization to
shift from change as an event led by change agents to
change as a part of life led by everyone. Change is no
longer an occasional occurrence. It is now the new skill
everyone must possess.
44
Rethinking Change
With a foundational change of accepting change as part of daily life,
we ought to rethink the approach of equipping the organization to
handle it. Even the term change management will no longer be appropriate.
The Skills Along with the need to change the solution, we ought
to evolve the skills of our people. Todays skills are different and
require upgrade. As solutions evolve, we upgrade skills to ensure
employees have the tools and authority required to respond to their
ever-changing customers.
To many employees, the word change implies a guilty verdict on

their past performance. They will react negatively as they will feel it is
a threat. The voice of judgment emanates from the term. No one will
appreciate a bad verdict on their past performance, especially if that
performance had been praised and rewarded in the past.
The Sight Employees and customers must know where this is all
going. A clear vision of the ideal should be clearly painted and
articulated. Oftentimes, organizations do not evolve because they
do not understand where they need to go. A clear picture of the
future will help to accelerate in the right direction.
Management means top down approach. It suggests a program

cooked-up by few people at the top of the pyramid to push down
employees throats. Needless to say, its rejection will be loud and
clear, and the pace of change will slow. Todays traditional change
management results in, at best, reluctant participation and, at worst,
incremental tweaks that do not amount to the original vision.
Change management ought to become cause evolution. We need to

evolve every day. When employees embrace the cause of the customers,
they internalize it, own it and become change agents. Unlike top down
change management, they lead the charge and often surpass their
management with performance beyond their imagination.
Its time to look at change differently.
Working with a large auto manufacturer, we focused on the customer

as the cause and followed the 4-S approach. We challenged employees
to delight customers. In the first 12 months, over 5000 stories of
When employees embrace

the cause of the customers,
they internalize it, own it and
become change agents.
When we lead customer centric programs, we carefully shy away from

talking about change. We follow the 4-S approach to frame and lead
the evolution.
The Story - We need to build a narrative that stays true to our core:
the customer and why they need us. The customer is the cause that
unifies everyone in the organization. Without the customer, no one
is employed. Oftentimes, we focus on what will not change: a
commitment to relevant value to customers. Instead, what needs to
evolve are the techniques we use. The framing story is always about
the customer as the cause for our performance.
delight emerged: all lead by employees, not by management. They

were not changing; they were merely expressing their own evolution.
They felt that they were given the permission to do whats right. These
stories became the authentic expression of the brand. Welcome to
cause evolution. Welcome everyone leading the charge. L
Lior Arussy is the president of Strativity Group, a customer experience transformation firm.
The Solution Once the customer is at the core of our work, we

ought to examine the solution we provide. Because of the pace at
which smartphones change, we recognize that customers seek new
excitement faster. Yesterdays exciting solution is todays boring one.
We need to strive to deliver exciting, emotionally engaging solutions
quickly. Nothing was wrong with yesterdays solution. It just belongs
to another era. The expiration date is shorter.
45
BEST PRACTICES
Making
Moments
Matter:
Thinking Beyond Tactics
to Win Hearts
Matt Stein
Kobie Marketing
In the last few years,

weve seen marketers
scrambling to keep up
with emerging technology
and tactics. Loyalty
marketers have become
too focused on
functionality, at times
losing sight of the real
purpose behind
their marketing.
Building a relationship between a brand and customer
is about so much more than serving a consistent
experience across channels and devices. Customers
keep coming back because of a complex emotional
bond they have with your brand, not because of a
technically flawless experience. Its time to make a
return to what loyalty is really about creating
moments that form an emotional connection between
customers and brand.
SPONSOR | 2015
JOIN MATT STEIN AT LOYALTY EXPO 2015

We encourage you to join Matt as he presents the
workshop session: Making Moments Matter:
Thinking Beyond Tactics to Win Hearts.
During this session, Matt will provide a deeper look
at customer relevancy, perceptions and the moments
that matter!
46
Why an Emotional Connection Matters

Despite many of us wishing we were rational beings, humans make
decisions based on their emotions. This doesnt mean logic plays
no part in customer decisions; many people will use your brand out
of convenience. Proximity, price and ease-of-use are all compelling
reasons to choose a brand, but emotional factors can often override
these logical factors.
According to Gallup, fully engaged customers are those who are so
emotionally connected to a brand that they will go out of their way to
use that brand over the competition. Its no surprise customers with
this level of emotional attachment to a brand are the most valuable:
Fully engaged hotel guests spend 46% more than disengaged
guests. (Gallup)
Fully engaged banking customers bring in 37% more annual revenue
than actively disengaged customers. (Gallup)
Fully engaged casual dining customers visit restaurants 56% more
per month than actively disengaged customers. (Gallup)
Providing a strong emotional experience can be a competitive
advantage, even in a saturated market full of similar products. A good
example of this is someone going out of their way for Starbucks every
morning even when they have closer, cheaper, and faster options
available. People drive the extra mile for Starbucks because of how
it makes them feel whether that is because of the customizable
product, personalized customer service, or something else unique to
the brand experience.
Leveraging Emotional Moments to Increase Loyalty
Brands that really nail the emotional side of marketing understand
which elements of the customer experience are responsible for creating
powerful, impactful moments in the minds and hearts of their customers.
At Kobie, our approach to creating emotionally-charged moments
is based on the following five pillars. Each of these pillars are
interconnected and depend upon one another.
A well-timed strategy that delivers a personalized message or

reward when its relevant and useful or even when it is delightfully
unexpected is a good example of how all of the above pillars can
work in tandem to create the best possible customer experience.
Identifying the Emotions Unique to Your Customer Experience
Now that you see why impactful moments are an integral part of the
customer experience, lets look at what to consider as you refine your
emotional engagement strategy.
1. Pinpoint the most crucial moments.
Which moments have the greatest impact on the customer experience?
For example, the most crucial moments in an airline/customer
relationship might be when something goes wrong (like how a
delayed flight or lost baggage is handled). The most crucial moment
for a restaurant patron might be the ambiance when they walk in or
their first bite of food.
Also consider the types of important moments that happen with your
brand that are outside of your control. For example, the feelings that
happen when someones child unwraps your product on their birthday
(the childs excitement, the parents satisfaction, etc.).
2. Identify the emotional reaction you want to create at each
touch point.
How does someone feel when they read an email from your brand,
when they open your app or visit your site? Choose which actions you
want each emotion to drive.
3. Decide on the overall feeling customers should have toward
your brand.
The individual moments matter, but theres also a cumulative effect.
Customer satisfaction rates are based on the sum of every moment,
adding up to an overall feeling toward your brand. Determine what all
of those moments should feel like in the mind of the customer.
1. Personalize
Customers dislike feeling like faceless members of a group. Leverage
data and technology to tailor messaging, timing and context to the
individual, not the segment.
4. Research the emotions associated with your vertical.

Aside from internal input, market research can help identify the existing
feelings toward your industry (both positive and negative). Can you
leverage these existing feelings to shape the customer experience?
Will pre-conceived emotions be difficult to overcome?
2. Empower
People dont want a one-size-fits-all experience. Let each customer
own their experience by giving them tools and incentives that let them
interact with your brand in their preferred way.
5. Keep in mind the emotions you dont want the customer to feel, too.
What feelings might drive people to stop using your brand? These are
just as important as positive emotions, since negative experiences can
have a stronger influence on loyalty.
3. Engage
Serving relevant content at the right time can move people to take
action. Use meaningful content to nurture the relationship with
the customer and extend the customer experience into their
preferred channels.
While its true that technology can provide the means to serve and
create moments that will stand out in the hearts and minds of your
customers, it shouldnt be the be all, end all of your loyalty strategy.
Adopting a feelings first mind set can help you create the right
moments at the right time right when the consumer needs it most.
True loyalty happens when interacting with your brand creates
emotionally-driven, memorable moments. L
4. Incentivize
Rewards should be based on member preferences and emotional drivers. The key here is giving the customer what they consider valuable,
which does not necessarily mean currency-based rewards, like points.
5. Advocate
Many brands think of how they can make the customer their advocate,
but this should be a two-way street. In a customer advocacy mindset,
you view every interaction as an opportunity to learn more about what
the customer wants and use those insights to better serve them. Make
your customers feel special by delivering on those wants, whether that
means access to exclusive content, free trials, important news, etc.
Matt Stein, VP of Customer Experience and Agency Services. Matt drives industryleading loyalty engagement and marketing solutions that span the online, mobile, social,
print and broadcast media channels as well as the full customer journey from digital
channels to physical locations.
47
BEST PRACTICES
CUSTOMER
JOURNEY MAPPING
Pitfalls & Remedies
Clay Walton-House
Lauren Reus
Lenati
INTRODUCTION
PITFALL #1: SELECTING THE WRONG JOURNEY MAPPING FRAMEWORK
Customer journey mapping, the process of visualizing a brand's

customer experience through the eye of the customer, has become
a widely adopted methodology by companies who strive toward
customer-centric operations. Customer journey maps provide a view
of customer experience that may not come naturally from within the
walls of a corporation, allowing marketers to more effectively address
customer needs and solve for the objectives of the organization.
The Problem
The benefits of a well-researched and well-designed customer

journey map are numerous, most commonly used to:
A foundational component of Customer Journey Mapping is the map

itself-the framework developed to capture the outputs of the mapping
process. The framework defines scope and orientation of the mapping
exercise, and can encourage or limit certain types of insights from
being explored. There are a multitude of Customer Journey Mapping
frameworks-quantitative decision modeling to service blueprintsyet not all approaches are suitable for addressing a given business
challenge. Or worse, some frameworks can be misleading.
Yet companies can be led astray if the mapping exercise is not

conducted effectively, producing maps that miss the mark in the
attempt to uncover the customer experience.
The problem is that not all frameworks are created equal, and key
considerations are not evaluated when assessing frameworks.
For example, is it important to uncover and document competitor
offerings and resulting influence on your own customers' journey?
How important is it to have deep channel experiences identified
(online, in-store, etc.)? Is your customers' lifecycle with your brand
linear (subscription businesses), or is it more circular (retail)? These
are key considerations when defining the boundaries of your journey
mapping exercise, and can either help you chart an effective course
or lead you astray.
There are three most common pitfalls when customer journey mapping:
The Solution
1. Selecting the wrong journey mapping framework
The key to selecting the right Customer Journey Mapping framework

is to start with your end-goal. This means, begin the journey mapping
process by:
Uncover opportunities for product differentiation

Identify friction in the customer experience
Ensure marketing tactics inuence customers during their
decision-making process.
2. Applying an organizational view vs. a customer perspective

3. Assuming there is one common journey for all customers
Companies who avoid these common pitfalls are better positioned to
deliver value to modern economy customers, and reduce any friction
within the customer experience. Customer journey mapping must
remain a foundational part of the strategy and development process,
and if these pitfalls can be avoided, your brand will be well on its way.
SPONSOR | 2015
48
Lenati
Articulating the business decisions the Journey Map will be

used to inform
Outlining key questions the company hopes to answer
through the mapping process
Choosing a framework that fits the objective, and whose
design (scope, boundaries, etc.) capture required insights
Ensuring that all coordinates and points on the Journey
Map contribute to the objective, and don't distract from
your end-goal.
PITFALL #2: APPLYING AN ORGANIZATIONAL VIEW VS.

A CUSTOMER PERSPECTIVE
PITFALL #3: ASSUMING A COMMON JOURNEY
The Problem
Any marketer worth their salt understands that there is always diversity
within a customer base, and that understanding and serving the
diverse customer is a strategic imperative for the brand. Yet, though
this is well known, marketers still fall into the trap of assuming the
customer journey itself is not diverse, and that customers follow a
common path. Often, this error follows from a marketing department's
assumption that they know their customers very well, and that they
have no "blind spots" regarding the customer journey-yet other times,
the error stems from a simple lack of appreciation for the nuances of
the journey's twists and turns. Regardless of the root cause, assuming
a common journey can be the downfall of a journey mapping effort,
as it fails to generate a perspective that is an accurate depiction of the
customer experience. Each customer will move through the journey in
their own way, and the challenge is for marketers to determine what
the minimum viable number of journeys are required to sufficiently
represent the varied journeys that take place.
Effective Customer Journey Maps are built upon research and analysis
undertaken from the customers perspective. However, companies
often fall in the trap of approaching the customer journey from the
perspective of institutional touch points (retail store experiences,
websites, customer service calls, etc.) rather than looking at customers'
holistic experiences with the brand directly from the customer lens.
This a common and easy trap, as departmental teams are internally
organized around corporate functions that own a piece (but not the
whole) of the customer experience. This is a problem because people
tend to orient toward what they know deeply, producing an "inside-out"
bias that fails to achieve the goal of a customer-centric view of
the journey.
A customer journey begins long before customers

actually interact directly with a company...
A customer journey begins long before customers actually interact
directly with a company, and their journey involves decisions and
emotions that go beyond an experience or touch point with a
company. Not incorporating these insights devalues what a
Customer Journey Map can provide in net new organizational
perspectives and appreciation for customer needs.
The Problem
The Solution
An effective journey map that solves for diverse journeys within the
base will:
Identify representative journeys for specic sets of target customers
(aligned in behavior, motivations, attitude and product use)
Show general patterns in the decision-making and purchase paths
The Solution
To avoid the potential pitfall of confining the map to an "inside-out"
view, an effective journey mapping exercise will incorporate deep
customer insights through primary research and/or analytics. These
robust consumer insights should be used to:
Uncover the human journey-life events, life stages, social
dynamics, etc.
Capture customers motivations, needs, and goals before, during,
and after they interact with the product
Analyze inuences surrounding the customer, including those
outside the brand's control
Represent customers perceptual journeys as effectively as their
behavioral journeys
Illustrate key forks in the road, detours, road blocks, etc. that effect
different groups of customers in different ways
Find the balance between developing numerous, segmented views
that are representative of diverse customer journeys, while not over
complicating the process and making the output less actionable
NOT ALL MAPS ARE CREATED EQUAL
As the examples above illustrate, many maps fail to reveal the full
terrain surrounding customers as they navigate their decision-making
and purchase journeys, thus leaving too many questions unanswered.
By avoiding the pitfalls laid out in this article, your map will be a strong
tool for representing your customers experiences, and ultimately for
driving organizational strategy. L
As the leader of Lenatis Customer Retention & Loyalty Team, Clay Walton-House helps
Fortune 500 companies create and implement new and interesting customer
engagement strategies that accelerate growth and build loyalty. His expertise lies in
understanding consumer behavior and translating it into actionable customer insights.
Lauren Reus is a Senior Consultant and member of Lenatis Customer Retention &
Loyalty Team. With functional expertise in customer experience and customer journey
mapping, Lauren draws on her variety of experiences in delivering thoughtful solutions
that meet clients complex business issues in the High Tech industry.
JOIN LENATI AT LOYALTY EXPO 2015

We encourage you to join Clay Walton-House & Marc Steiner with Lenati as they
present the workshop session: Building an Enterprise Loyalty Strategy: Methods,
Tools, & Best-Practices. During this session, learn more from Lenatis work with
leading brands like Nordstrom, Starbucks, and T-Mobilebrands who have focused
on holistic, enterprise approaches to managing customer experience end-to-end to
generate loyalty.
49
BEST PRACTICES
Understanding your
VIP-cravers and
discount-hunters
to better drive loyalty
Laura Gardiner
Epsilon
Customers want you to align with their values

before they commit their loyalty.
Understanding what motivates your customer will allow you to
develop a collaborative relationship based on each individuals core
values building a strong foundation for lasting customer loyalty.
he foundation for building customer

relationships and fostering customer
loyalty isnt a concrete one. What shapes
customer loyalty for one brand or consumer
can be completely different for another. There are
basically two camps of members (shoppers)
VIP-cravers and discount-hunters. Many programs
realize this but dont leverage the data to better
understand them, segment them and treat them
differently. Think of your own experiences with
brands and how you value their products and the
shopping experience. Offers for discounts are
wasted on VIP-cravers and often contribute to
cannibalism. Why give a discount to a member
who would purchase the product anyway?
Discount shoppers are more easily swayed to
become a VIP-craver once they build an emotional
bond through superior customer service and
relevant offers. It is essential for brands to
understand what motivates a consumer to
purchase and to help nurture these customer
relationships that ultimately drive loyalty.
VIP-cravers
For VIP-cravers loyalty is intrinsic. It is built-in
to the overall customer experience and isnt
something brands can nurture through price discounts and rewards. VIP-cravers arent driven
by price. Rather, they are looking for a personalized
customer experience that is convenient,
SPONSOR | 2015
JOIN EPSILON AT LOYALTY EXPO 2015

We encourage you to join Epsilon as they present a
workshop session at Loyalty Expo 2015.
50
reliable and makes them feel important. For these customers, what
drives loyalty is a consistent and superior customer experience and
the feeling of exclusivity of when interacting with your brand.
Take Nordstrom for example...long admired for their leading customer
service and the customer experience they offer their customers, many
shoppers stay loyal to Nordstrom because of the superior experience
when interacting with the brand. Whether it is the personal
shopper/concierge service, the non-existent return policy or the
in-store amenities Nordstrom provides, VIP-cravers remain loyal to
Nordstrom because the experience is unlike any other.
Another example that resonates is airline loyalty programs. Members
treasure their status to pass through security, board first and access
to the airline lounges. These benefits trump discounts because the
experience is the priority. Airlines have to manage the competitive
landscape to be in sync with other fares but still the convenience,
experience and status is what keeps the members loyal.
Understanding these motivators is an important aspect of a loyalty
program. Why? Because what motivates these customers is very
different from what motivates discount-hunters.
Discount-hunters
For discount-hunters loyalty can be acquired through price discounts
and rewards but are they truly loyal? Discount-hunters are driven
by price and want to feel like they are getting the best value for their
money. Price is what motivates these shoppers and they tend to be
less concerned with the experience they receive when interacting with
the brand. The analysis of these members needs to be around share
of wallet. For example, if you live equi-distant to Lowes and Home
Depot, how can we capture 90-100% of your discretionary income for
home improvement?
What do you need to know about these shoppers? They are more
price sensitive than your VIP-cravers and will leverage all of the
cross-channel promotions that your brand is offering in an effort to
get the best price. Expect them to try and combine coupons, look
for price-matching and use gift cards and reward points.
Will discount-hunters remain loyal to brands like Nordstrom even
though Nordstrom prices are at a premium? Absolutely. But discounthunters still come with price at top-of-mind and put less value on the
superior experience that Nordstrom is known for. Theyll shop using a
$50 gift card they received from a friend on top of the 10% off coupon
they received for signing up for the Nordstrom credit card.
VIP-cravers and discount-hunters are both valuable segments for your
brand to attract and retain. In order to make the most out of these
relationships you need to understand their motivations, what drives
their loyalty and treat them accordingly.
Using data as the foundation

of your loyalty
marketing programs
Data is the foundation of the relationship you have with your customers
and should be used to better understand your VIP-cravers and
discount-hunters. Identifying and rewarding your most loyal customers
helps improve their experience with your brand and deepen their
connection to you.
Transactional data is a natural place to start in identifying your VIPcravers and discount-hunters. Transactional data will give you insights
into the buying behavior of your customers including who used
coupons or discount codes when shopping with your brand versus
someone who may have purchased through a personal shopper.
Still, transactional data is just one building block to truly understanding
your customers. Utilizing third-party data can help complete a
360-degree view of your most loyal customers, giving you a glimpse
into their shopping habits outside of your store. Third-party data will
reveal demographic information and personal interests along with
their shopping preferences. This deeper level of analysis can help
define smaller, more tightly focused segments of your customer
base. From this analysis you should be able to better understand
and identify your VIP-cravers and discount-hunters. You then have the
ability to tailor highly personalized and relevant marketing messages
best suited to each audience.
Using data to better understand your VIP-cravers and discount-hunters
will help you more successfully drive purchase and build customer
loyalty. For VIP-cravers, consider inviting them to an exclusive in-store
event where they have the opportunity to preview new merchandise.
Meanwhile, presenting discount-hunters with a coupon code is a
better motivator for purchase and a cross/upsell accessory.
Customers want you to align with their values before they commit
their loyalty. Understanding what motivates your customer will allow
you to develop a collaborative relationship based on each individuals
core values building a strong foundation for lasting customer loyalty.
Other factors influence how we engage with loyalty programs
Age & income retired vs. business executive
Product category hobby vs. travel
Luxury brand vs. utilitarian products
Male vs. female
What kind of loyalty participant are you? Do you value the experience
more with lifestyle brands rather than utilitarian products like
Walgreens? We would love to hear how you engage with your
favorite loyalty programs. Id love to connect with you to discuss
your thoughts. L
Laura is the strategy lead for Epsilons Agility Loyalty platform. She is focused on
designing easy-to-implement applications for Epsilons loyalty solutions. With over 15
years of loyalty marketing experience, the applications that Laura designs improve
loyalty program functionality that enable global brands to better reach and engage
consumers while driving performance metrics.
51
BEST PRACTICES
The Right Process Drives

the Next Generation
of Value Propositions
Sue Yasav
Synchrony Financial
At Synchrony Financial, part of the value we add to our partners is customizing retail card value propositions
to fit the needs and goals of each retailer. But how does one know when its time for a new value proposition?
What is the process to create a customized value proposition that succeeds in fulfilling the retailers strategic
goals as well as delighting customers? Here, we summarize the steps for creating the perfect value
proposition that does just that. This article summarizes a white paper that outlines these steps in detail.
There are more loyalty and credit card programs available to consumers today than ever
before. In order to differentiate oneself in the market, a company must develop a unique
and compelling value proposition that attracts new customers and increases sales,
combing the uniqueness of the brand with the top priorities of its customers.
A winning value proposition must resonate with customers and drive results. The
ideal value proposition is a perfect mix of retailer strengths, customer needs and
competitive differentiation.
How do you know when it is time for a new value proposition?

You are no longer getting the results you are targeting for your loyalty or store
branded retail credit card program
Your current value proposition is not attracting new customers to your brand
It no longer matches your brand promise
The majority of customers cant access its benets
The competitive landscape has changed
If you have answered yes to 2 or more of the above, you are probably thinking about
how to go about creating a new or updated value proposition. Below are steps that
can be taken to develop a new value proposition, customized to a specific retail brands
strategic goals and brand experience.
Pro-actively gather customer feedback, understanding current and prospective customer

needs, wants, delighters and pain points. This can be done using both quantitative and
qualitative survey methods. Ensure your survey methodology includes actionable
insights, with program details specific enough to drive behavior. Also perform competitive
analysis at this stage. Understand other programs that are in your competitive set and
the value they provide to customers.
52
The brand promise and customer experience are key drivers of the
right value proposition. For example, for retailers with customers who
seek low prices above all else, a high-touch exclusive value proposition
may fall flat. Not all value propositions work with all populations. As
the customer experience graph shows, there are different structures
that resonate with different brand experiences.
It is often helpful to create several distinct structures to discover

which combination works best for the customer and the brand
experience. These structures should be tested with current and
potential customers. Focus groups are an excellent way to test these

concepts at this stage.
53
BEST PRACTICES
Value Propositions continued...
Financial analysis must be performed to assess the projected financial benefits of the
new value proposition vs. its anticipated costs, in order to optimize the P&L. It is essential
that the right financial model is used and correct assumptions are made in forecasting
the anticipated benefits, costs and returns of the new value proposition being considered.
This is part art and part science. It can also be an iterative process, but getting it right
is often the key to success. Best-in-class value propositions deliver the benefits over
the long run. And the ideal value proposition drives the usage of all the benefits of the
program, resulting in new customers, loyalty, reduced attrition and incremental sales.
Value propositions and customer engagement channels have evolved over time.
Substantial increases in online and mobile shopping, as well as social platforms
must be taken into consideration when creating the ideal value proposition structure.
The value proposition should address how a customer shops across all channels and
ensure a seamless brand experience.
The value proposition should

Prior to launching the new value proposition, many retailers prefer to pilot the program
or experiment with different structures through several pilots. A pilot can be very
beneficial to reduce the risk associated with a full launch of an untested program.
Additionally, it serves to shed light on executional elements of a launch and can be
used to provide insights into customer reaction and uptake.
The successful creation, development and launch of a new value proposition can
re-energize a retail brand as well as engage customers. The success of the value
proposition process starts with organizational commitment to the outcome and is
dependent on process rigor and functional expertise. An expert in this process
should be engaged to ensure that effective strategies are created, tested, analyzed
and implemented to achieve the goals of the organization. L
Sue Yasav is responsible for developing strategic insights through surveys, social listening and academic studies
on topics related to the credit card and retail industries.
SPONSOR | 2015
JOIN SUE YASAV AT LOYALTY EXPO 2015

We encourage you to join Sue with Synchrony Financial as she presents the
workshop session: A Proven Process for Developing a Winning Value Proposition.
During this session, learn more from Sue as she outlines the steps for creating the
perfect value proposition.
54
address how a customer shops

across all channels and ensure a
seamless brand experience.
YOUR CUSTOMERS
OUR LOYALTY PROGRAMS

At Synchrony Financial, we believe that numbers
matter, but people matter more. Its an idea we
call engagement. And how you engage with your
customers today is more important than ever. Thats
why weve designed our loyalty programs to add
value where it matters the most. From building
tailored offers to helping you improve your customers
buying power, weve helped thousands of businesses
offer credit and financing solutions to their customers.
Find out how our loyalty programs can help you
engage your customers at synchronyfinancial.com.
Engage with us.
Banking. Loyalty. Analytics.
2015 Synchrony Financial. All rights reserved.
LOYALTY FORUM: LOYALTY READS
Loyaltyreads
Brand Shift: The Future of Brands and Marketing
David Houle and Owen Shapiro
David Houle & Associates | September, 2014
In their book, Brand Shift: The Future of

Brands and Marketing, David Houle
and Owen Shapiro deliver a powerful
and persuasive look at how cultural
change and accelerating technological
advancement will affect brands and
marketing in the years ahead. Through
a fascinating study of the history of
brands and a detailed, cogent analysis
of current trends, the authors unveil a
compelling forecast of how brand
marketers will need to meet the novel demands of branding in the 21st
century. Business leaders who intend to successfully engage the future
will find this book an invaluable resource. The Internet of Things is
evolving a new kind of collective consciousness, one which demands that
brand marketing embrace and leverage the ensuing inevitable social
changes. Big Data and the future of human communications have
profound implications for brands and marketing. Brands that embrace
and reflect these transformations have the potential to assume ever more
important roles in our society, engendering life style enhancements for
consumers through trust and a commitment to serving the greater good.
Sprinkles: Creating Awesome Experiences Through Innovative Service

Chip R. Bell
Greenleaf Book Group Press | February, 2015
If Cirque du Soleil ever wrote a book on innovative

service, it would read like Sprinkles: Creating Awesome
Experiences Through Innovative Service. Choreographed
with compelling stories, breath-taking insights, and
super cool techniques, this new book by best-selling
author Chip R. Bell is the perfect recipe for how to create
and retain devoted customers.
What makes a great cookie special? Sprinkles! It is also

what elevates great service from value-added to valueunique. Picking up where his best-selling The 9 Principles
of Innovative Service left off, Chip Bells new book will, in
the words of the former president of UPS International,
light up your life, fire up your customer service, and rev up
your bottom-line.
Two Factor Theory of Customer Service: A Comprehensive, Easy to Read Guide

for Increasing Profits
David L. Elwood
AuthorHouse | December, 2013
In the Two Factor Theory of Customer

Service, author David L. Elwood nudges
the entire field of customer service
toward becoming a professional
discipline. Customer service is not a
casual, do-it-if-you-think-of-it aspect of
business; customer service is a real
business product that stands beside the
primary product of every business
enterprise; it is inescapable and it is
inextricably tied to profits. Elwood uses easy to follow ideas that open the
door to fresh, persuasive perceptions of the fundamental dimensions of
customer service events: accessible, emotional, temporal, informational,
solutional, aptitudinal, and relational.
The essence of Elwoods message is that the more clearly and deeply one
understands customer service events, the more effective he or she will
become at delivering customer service straight to the customer. And, as
powerful, empirical research findings have shown, delivery of Superior
56
Customer Service goes hand in hand with superior profits. The Two
Factor Theory of Customer Service will delight everyone looking for a
systematic approach to understanding and classifying the seemingly
unending differences found in published examples of Superior Customer
Service, and it will brighten the pathway for each provider seeking to
increase profits.
Without question, you ARE in the customer service business - the only
question is whether you are doing it well. Want a quick read at the
airport terminal thatll entertain more than transform? Two Factor Theory
of Customer Service isnt it! Elwood skips the cliches while delivering a
perfect balance of theory and immediate application that will change how
you see your customers, and more importantly how your customers will
see you (again and again and again . . . ).
Jay Martinson | Ph.D. Chair, Communications Department
Olivet Nazarene University
Matters of Life and Data: The Remarkable Journey of a Big Data Visionary
Whose Work Impacted Millions (Including You)
Charles D. Morgan
Morgan James Publishing | January 20, 2015
Acxiom Founder Charles Morgan Shares

Personal Data in New Book
I didnt set out to become a collector of your
and your neighbors information. When I
was growing up, nobody but egghead scientists talked about data. It was the mechanical age, and I was a gadget geek, taking
apart my cousins toys and trying to put
them back together again. I was especially crazy about cars and engines,
and had it not been for a fateful encounter during college recruiting season,
I mightve lived my life as a race car mechanic instead of learning about
computers at IBM. As it turned out, pursuing Big Data allowed me the
resources to become a professional race car driver on the side, competing
against the likes of Paul Newman, who makes appearances in these pages
as well.
Such are the wonders of this journey were all on.

Mine has taken me from the frontier of western Arkansas, where my
ancestors owned a hardware store selling iron tools to westbound travelers,
to the frontier of the digital age, where room-size computers have become
eclipsed by the power of smart phones. And in a sense, the story youre
about to read isnt so different from those of the colorful adventurers who
stocked up their wagons at my familys hardware emporium and headed
west to make their fortunes.
Data mining is the new gold rush,

and we were there at first strike,
dragging with us all our human
frailties and foibles. In this books
cast of characters youll find ambition,
arrogance, jealousy, pride, fear,
recklessness, anger, lust, viciousness,
greed, revenge, betrayal and
then some.
It is a messy story. In the big picture, this could be called a narrative
of America since World War II. But in the micro telling, think of it this way:
The man who opened your lives to Big Data finally bares his own.
Profitable Customer Engagement: Concept, Metrics and Strategies

V. Kumar
SAGE Publications Pvt. Ltd | November, 2013
The concept of customer engagement has evolved as a

powerful tool for building a profitable approach to
customer management. Profitable Customer Engagement
is an authoritative book that communicates the
fundamentals of profitable customer engagement by
proposing a customer engagement value (CEV)
framework. It is a first-of-its-kind book that outlines the
methods of engaging customers profitably in business-to-
consumer as well as business-to-business settings. The

book offers firms with definitions of the metrics within the
CEV framework, and the ways to measure and maximize
these metrics that can help in engaging customers
profitably. The interrelationships between these metrics,
i.e., how each metric impacts the other, are also explained
in detail with real-life examples.
Time Management Magic: How To Get More Done Every Day And Move
From Surviving To Thriving
Lee Cockerell
Emerge Publishing LLC | January, 2015
Executive Time Management Secrets from a Life at

Disney... During Lee Cockerells career at Disney as the
Senior Operating Executive of Walt Disney World Resort,
he lead a team of 40,000 Cast Members (employees)
and was responsible for the operations of 20 resort
hotels, 4 theme parks, 2 water parks and the ESPN
Sports Complex. As you can imagine, Lee had to become
a time management expert, first as a means of survival

and then as a way to help others make the best use of
their time. The time management secrets he developed
have become one of his most requested corporate
training lectures and are now available to you in this
tellall book.
57
LOYALTY EXPO 2015
Conferece Preview | 2015
Matt Stein
Greg Sherry
workshop sessions | Start on Monday

Making Moments Matter: Thinking
Beyond Tactics to Win Hearts
A Proven Process for Developing

a Winning Value Proposition
Loyalty marketers have become too focused on

the technical and tactical side of marketing, but
the connection between brand and customer is
about so much more than serving a consistent
experience across mediums and devices. Are
you ready for the next level of omnichannel
marketing, or will you be left behind?
How do you know when its time for a new

value proposition for your credit card or loyalty
program? What is the process to create a
customized value proposition that succeeds
in fulfilling your strategic goals as well as
delighting customers? This workshop
outlines the steps for creating the perfect
value proposition that does just that. The
steps include: gathering customer insights,
mapping the customer experience, cost/
benefit analysis and omni-channel optimization.
Customer Experience and the Brand

Promise: Case Study and Discussion
One of the biggest challenges facing organizations
is the need to maximize customer engagement
and increase revenue while minimizing the
cost of delivering an outstanding customer
experienceacross all communication channels.
Organizations can create a relevant and differentiated
customer experience by closely linking the
organizations brand and customer experience
strategy, along with aligning the right people,
with the right attitude, in the right environment.
Mike Phillips
& Meg Stensrud
Are You Being Rewarded for Your

Rewards Programs?
We all know that customer engagement is
primarily emotional. If rewards programs are
designed as a rational means for creating
customer loyalty, does this mean that these
customers are actually engaged? What is the
relationship between membership in a rewards
program and customer engagement?
58
Sue Yasav
Clay Walton-House
Marc Steiner
Building an Enterprise Loyalty Strategy:

Methods, Tools, & Best-Practices
Loyalty Marketing as a discipline is centered upon the pursuit of
improving customer satisfaction and behavioral loyalty, an end
goal that requires deep insights into the customer, and an ability
to create experiences that influence customer thinking. Leading
companies who accomplish this goal to great effect, however, are
not doing so by building capabilities within the Loyalty Marketing
team alonethey are embedding a deep understanding of loyalty
across the enterprise, and building operating models and skills that
allow them to break out of organizational silos.
2015
April 27 - 29, 2015 | LOEWS ROYAL PACIFIC RESORT AT UNIVERSAL ORLANDO | FLORIDA
Jon Kosoff
Hot Topic
Matthew Saylor
Kirklands
Phil Sugar
Aimia
Launching Successful Omnichannel & PLCC Loyalty

If you are a retailer looking to loyalty to deliver business
outcomes, this workshop is for you. Join us for a no-nonsense
panel discussion in which you will learn how Hot Topic and
Kirklands have each launched recent successful omnichannel
and PLCC programs.
Join Kirklands, Hot Topic and Aimia as they share:

How their programs were conceived and designed
Implementation challenges encountered - and how they
were overcome
Highlights of their programs in action and program benets
Their vision for the future of retail loyalty
Building Consumer Relationships and the Shift Towards Personalization

For a long time Retail & CPG brands have focused on acquisition.
But the acquisition-only model is broken and expensive.
Robyn Hannah
In todays digital world, consumer expectations are high and

competition for their attention is brutal. Traditional loyalty
programs dont deliver on their promise because the
transactions do not a relationship make.
The key to Retail & CPG success will be in retention and
growth. And the way to get there is by leveraging actionable
insights from data to create more personalized messaging.
Join PunchTab for this interactive workshop where well focus on:
The big trends- Big Data, Mobile, and The Digital Squeeze
Behavior brackets and metrics that matter
How retention and growth are the keys to Retail & CPG success
How to implement an integrated program that drives consumer
relationships instead of individual transactions.
Loyalty Expo 2015 | PLATINUM SPONSORS
Loyalty Expo 2015 | GOLD SPONSORS
cogensia
A CAC|GROUP Company
59
2015
MAACO Places the Customer First

MAACO desperately needed a makeover when Jose R. Costa became president of the company nearly
two years ago. The Charlotte, N.C.-based retailer was a strong player in the industry, but very dormant in
many aspects.
During his brief tenure, Costa has helped transform the MAACO brand from a focus on negative life events to
highlighting the potential that a fresh coat of paint can give any car.
Jose Costa
At Loyalty360s 8th annual Loyalty Expo, Costa will detail MAACOs amazing MAACO-ver that has transformed the
brand from the 1970s to a major contemporary player.
Suzie Guzzo
Making Fans Part of the Team, and Part of the Brand
Pittsburgh Steelers
Phil Rubin
rDialogue
Jon Buck
Angies List
Robert Jewell
Exchange Solutions
Tammy Lucas
Best Western
Debora Haskel
IWCO Direct
60
Professional sports teams engender loyalty across all

kinds of segments: age, gender, income, geography and
of course, who attends games, is a season ticket holder
and who travels for road games. The Pittsburgh Steelers
are no different, and like other sports teams - and even
other brands - they didnt know very much about their
fans, but knew that they could make that relationship
even stronger if they did. With a vision coming directly

from the top, the decision to get to know their fans,
establish a dialogue and create a 360-degree
experience, the Steelers set out to unify Steelers
Nation. Last October, that vision became a reality with
the launch of Steelers Nation Unite.
Inside the AngieCash Program: How Individualized Incentives Can Deliver Increased
Customer Lifetime Value, Retention and Profitability
The AngieCash loyalty program incents Angies Lists
members to perform valuable activities, such as writing
a review, referring a friend, buying a product or service,
renewing or upgrading a membership, etc. Launched in
2013, the program is delivering a measurable increase in
these high-value customer behaviors, at less cost than
Business-as-Usual marketing activities.
In this session Jon Buck, the Director of Member

Engagement at Angies List, will talk about how
individualized incentives can be used to motivate
customers to perform profitable new behaviors. He will
share key learnings from the launch of the program.
Sophisticated Direct Mail Delivers Loyal Guests for Best Western

The competition is fierce for customer loyalty in the hotel
industry. With no shortage of choices for where to rest
their heads away from home, more business and leisure
travelers are choosing Best Western. In fact, the company
has received numerous accolades for the success of its
Best Western Rewards loyalty program, including being
awarded the 360-Degree Award, Platinum Winner at
the 2014 Loyalty Expo. Best Western uses an integrated

approach to marketing its loyalty program and highlypersonalized direct mail has been a key channel in the
success of the program. Come see how direct mail has
played a vital role in one of the most successful customer
loyalty programs in the industry.
general sessions
Shonna Smith
How Consumer Management Supercharges Harley-Davisons Success
Brad Marg
This session will focus on one of the key challenges faced

by every brand how to expand a customers lifetime
value beyond a select set of core products.
Blue Springs
Harley-Davidson
Clutch
Specifically, this session will highlight the challenges

of Harley-Davidson, Americas leading manufacturer
of premier motorcycles. Harley-Davidson must both
strengthen their relationships with and deeply
understand their customers in order to extend their

lifetime value. For many Harley-Davidson customers,
their bike purchase is a once in a lifetime event. This is
particularly challenging for Harley-Davidson franchises
that benefit from the incredible strength of the Harley
brand, but also have to differentiate their own franchise
brand against a fierce 800-location dealer network.
Using Data Analytics to Move Customer Loyalty to

Enterprise-wide Success
Sue Smolenski
True Value
Mindy Heintskill
and Lisa Zhao
Walgreens
David Hess
emnos
Barb Olson
Cogensia
Today, the True Value Rewards program is

a key driver of success, delivering value to
customers that compliments great in-store
service and advice. The program drives
quantifiable customer engagement and
allows True Value to differentiate itself from
competitors. But, it was not always this
way. A leader of Loyalty, CRM and Mobile
Strategy, Sue Smolenski has worked to

transform True Value Rewards by gaining a
deep understanding (through data collection
& analysis) of True Value retailers and
customers, and building the infrastructure and
retailer support to execute on those insights.
Driving Customer Engagement and Sales Growth through Personalized Marketing

Rewarding the best customers and engaging them
through a personalized marketing program can drive
increased loyalty and retention, resulting in significant
sales growth. While retailers traditionally focus on
driving growth through new customer acquisition or
win back of lost customers, Walgreens chose to drive
significant growth through focusing on driving more
out of the best customers. Walgreens was aware that
in order to break through the noise that passes as
marketing, they would need to ensure every
communication with their best customers would
be targeted and relevant.
This session will show how Walgreens was able to

leverage product-level longitudinal customer purchase
data as a key to delivering relevant offers and content
that rewards their customers in categories which were
bought in the past, in addition to driving them into
adjacent categories. Using this approach proved to be
an effective means to drive campaign sales uplift, as
well as, affect change in long-term customer behavior
through improved customer retention and increased
share of wallet.
61
showcase sessions
Dont be Distracted by Trending Loyalty Tactics: Using Best Customer
Data to Guide Business Strategies
Luc Garneau
As loyalty program tactics evolve and technology becomes

more sophisticated, brands need to take a step back and
remember the basics: success (or failure) resides in the ability
to not only leverage customer data, but feed the right data into
day-to-day business strategies. Utilizing the very common
RFM segmentation process, brands have the ability to clearly
identify their Best Customers and use that data to align

critical business objectives. Learn how Best Customer
data, leveraged through some models, can enable brands to
make overall business strategies much more efficient across
a range of areas, including category prioritization, assortment
optimization, points issuance strategic allocation and more.
Next Generation Manufacturer Loyalty: Rewarding Both Customers and Advocates

(With No On Pack Codes)
David Hargreaves
& Frank Sweeney
This session will provide an insight into how mobile, data,

receipt processing and social media are creating new
opportunities for consumer goods companies to reward
both purchase and non-purchase behavior, while at the
same time collecting data to understand a consumers
shopping behavior like never before.
Attendees to this session can expect to take away the following:

An understanding of how mobile optimized receipt processing can
be used to validate purchase, removing the cost and inflexibility of
on-pack codes
An appreciation of how brands can tap into and reward consumers
online actions in social media
Ideas of how a brand can use freely available tools to reward
consumers for achieving lifestyle goals through devices such
as the Fitbit activity tracker.
62
2015
Loyalty Expo 2015 | SILVER SPONSORS
Loyalty Expo 2015 | SUPPORTING SPONSORS
World-Class Software Solutions
63
4120 Dumont St
Cincinnati, OH 45226
Simplify
Your Journey
Our vision for 2015 and beyond is to provide

even more value to our brand members
Loyalty360 is committed to helping brands navigate the renaissance thats happening
in customer loyalty and engagement. Membership helps simplify your journey.
call 513.800.0360 | visit loyalty360.org | follow @loyalty360
Contact us for more information on membership:

markjohnson@loyalty360.org | erinraese@loyalty360.org

Loyalty Management Q1 2015

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VOLUME 7 NUMBER 1

First Quarter 2015

2015 Conference Previews

THE UX-FOCUSED TECHNOLOGY AGENCY

Letter from the Editor

Loyalty360 on the Web

Behind the Brand

By the Numbers: Email Placement

By the Numbers: Program Behavior

Q & A: Ask the Experts

Creating a Holistic Customer View:

Building the Culture of the

Jim Tierney | Loyalty360

35 By the Numbers: The State of CX

Jim Tierney | Loyalty360

The nominations are in and judging has

Mark Johnson | Loyalty360

FROM THE EDITOR

Loyalty: What a long strange trip

We serve as trusted advisers to:

existing customer value

Loyalty Management LOYALTY360.ORG

So you dont want to reward your best customers?

44 Change Management Its Time for Transformation

Erin Raese - Editor in Chief

2015 Loyalty360, Inc. and/or its Affiliates.

The Right Process Drives the Next Generation of

The Right Process

LOYALTY360 ON THE WEB

NEW MEMBER-ONLY FEATURE: MY MEMBER PAGE

CONNECT WITH PEERS, SHARE

GROWING COLLECTION OF ARTICLES ABOUT CUSTOMER EFFORTS AT TOP BRANDS

Recent Loyalty Management online

on top of the interviews, articles

Hilton Worldwide Vice President of Digital Innovation

Loyalty Management LOYALTY360.ORG

Hear from CEO Javier Flaim about how

Some platforms focus

Some platforms focus

Clutch focuses on Maximizing the

Clutch's Consumer Management Platform empowers marketers with

Consumer Management Platform

Are you maximizing your best customers?

Loyalty Management FIRST QUARTER 2015

LOYALTY FORUM: YOUR VOICE

Data from the 2nd annual Loyalty Landscape report shows

Loyalty Management LOYALTY360.ORG

Loyalty Management FIRST QUARTER 2015

LOYALTY FORUM: BEHIND THE BRAND

Allyson manages the product sales team

IF YOU COULD PICK ONLY ONE THING, WHAT DO YOU BELIEVE

Loyalty Management LOYALTY360.ORG

WHO HAS HAD THE MOST INFLUENCE ON YOUR PROFESSIONAL

QUICK FIRE QUESTIONS*

WHAT IS YOUR LEAST

WHAT TURNS YOU OFF?

IF YOU COULD INVITE ANY THREE PEOPLE TO DINNER (PAST OR

GREAT UPBEAT MUSIC.

WHAT SOUND OR NOISE DO

WHAT SOUND OR NOISE DO

THE SOUND OF SOMEONE

WHAT PROFESSION OTHER

SINCE I LOVE MUSIC, I

WHAT PROFESSION WOULD