Quick Loyalty Lock tip: Don't miss out on the opportunity to enroll customers into your loyalty program while you're away from the store. Keep a few dozen sign up forms in your car and hand them out at the next Rotary meeting or Little League game. You'll almost always run into someone you know and if they haven't been in your store in a while, it's the perfect opportunity to get them plugged in to your new Loyalty Lock program. Without a doubt, they'll be in to see you soon.
Thursday, April 30, 2009
Uno's Virtual Gift Cards Capture Customer Info
Uno Chicago Grill now offers patrons virtual gift cards, which givers load online and then e-mail to recipients.
By Lisa Bertagnoli, Contributing Editor -- Chain Leader, 5/1/2009
Patrons who want to buy a friend an Uno Chicago Grill gift card now have two choices: Buy a plastic gift card at a restaurant; or go online, buy a virtual card, and e-mail it to the recipient.
Boston-based Uno began offering virtual gift cards last December as a convenience to guests, says Rick Hendrie, senior vice president of marketing for the 200-unit chain. Uno advertised the virtual cards via an e-mail blast to customers. To create the cards, givers visit the chain's Web site, click on "gift cards," and choose the e-mail option. Once there, they can select one of nine backgrounds and a denomination of $25 or $50. They then provide the recipient's name and e-mail address and proceed to a pay page, where they give their own name, e-mail address and payment info. Givers are sent a confirmation e-mail when the recipient opens the card.
The virtual card captures data on both giver and recipient. That data will enable Uno to "segment messages to appropriate audiences," Hendrie says, though he will not elaborate.
Eighty-five percent of virtual cards are used within three months, and users spend 60 percent more than the card's face value, says David Stone, CEO of the company that supplies the technology (it is available as a Web-based or POS application).
Stone notes that the cards are not glitch-free; just under 1 percent bounce back as spam. "But the numbers are falling every day," he says.
By Lisa Bertagnoli, Contributing Editor -- Chain Leader, 5/1/2009
Patrons who want to buy a friend an Uno Chicago Grill gift card now have two choices: Buy a plastic gift card at a restaurant; or go online, buy a virtual card, and e-mail it to the recipient.
| Uno Chicago Grill now offers patrons virtual gift cards, which givers load online and then e-mail to recipients. The cards capture information from both giver and recipient. |
The virtual card captures data on both giver and recipient. That data will enable Uno to "segment messages to appropriate audiences," Hendrie says, though he will not elaborate.
Eighty-five percent of virtual cards are used within three months, and users spend 60 percent more than the card's face value, says David Stone, CEO of the company that supplies the technology (it is available as a Web-based or POS application).
Stone notes that the cards are not glitch-free; just under 1 percent bounce back as spam. "But the numbers are falling every day," he says.
Panera Bread Rolling Out Loyalty Program
Panera Bread CEO, Ron Shaich, addressed the Richmond Heights, Missouri company's plans for a consumer loyalty marketing program during the company's Q1 2009 earnings conference call yesterday. Talking about Panera's connection with their customers, Shaich said:
"Let me now speak to a number of tests that are going on relative to our effort to use our scale to deepen our relationship, that is to say marketing with our customers. As we told you on our last call, we will be testing our first television advertising in three markets beginning in the early summer. We've also begun a pilot of a loyalty program in one market with 30 bakery-cafes and have received positive feedback from many of the 30,000 plus people who have enrolled in this test program.
"And as ever we intend to use operations as a means to build transactions. For us this means speed, this means accuracy and this means an improved customer experience to increase a long-term concept differentiation. As you well know, neither category management, nor product development, nor media, nor operations will single-handedly improve our transaction in the face of a weak consumer environment.
"But taken together, we're hopeful these initiatives will be strong enough to blunt much of the recession's impact and help us to meet our gross profit dollar targets by driving both transaction growth and gross profit per transaction growth."
Panera's loyalty strategy is similar to other nationwide restauranteurs and supports the claims of the loyalty marketing industry as to the effectiveness of such programs.
"Let me now speak to a number of tests that are going on relative to our effort to use our scale to deepen our relationship, that is to say marketing with our customers. As we told you on our last call, we will be testing our first television advertising in three markets beginning in the early summer. We've also begun a pilot of a loyalty program in one market with 30 bakery-cafes and have received positive feedback from many of the 30,000 plus people who have enrolled in this test program.
"And as ever we intend to use operations as a means to build transactions. For us this means speed, this means accuracy and this means an improved customer experience to increase a long-term concept differentiation. As you well know, neither category management, nor product development, nor media, nor operations will single-handedly improve our transaction in the face of a weak consumer environment.
"But taken together, we're hopeful these initiatives will be strong enough to blunt much of the recession's impact and help us to meet our gross profit dollar targets by driving both transaction growth and gross profit per transaction growth."
Panera's loyalty strategy is similar to other nationwide restauranteurs and supports the claims of the loyalty marketing industry as to the effectiveness of such programs.
Southwest Airlines' Rapid Rewards Program Wins Best Award Redemption at the 21st Annual Freddie Awards
Airline Finishes in the Top Five in Five Other Categories
DALLAS, April 28 /PRNewswire-FirstCall/ -- Southwest Airlines' frequent flyer program, Rapid Rewards, won first place for Best Award Redemption and placed in the top five in five other award categories at Inside Flyer magazine's 21st annual Freddie Awards ceremony last week in Ft. Lauderdale, Fla. This is the 11th consecutive year for Southwest Airlines to win Best Award Redemption (every year since the award was created in 1998). Southwest Airlines also placed in the top five in five other categories, including: Program of the Year, Best Web Site for southwest.com, Best Member Communications, Best Bonus Promotion, and Best Customer Service.
"Once again, frequent flyers have spoken loud and clear - Rapid Rewards is one of the best frequent flyer programs out there," said Ryan Green, Southwest Airlines' Director of Customer Loyalty. "Our Rapid Rewards program is designed to bring value to our most frequent and loyal Customers, and we are honored to be recognized with this prestigious Freddie Award."
Each year, InsideFlyer magazine invites members of all frequent traveler programs to vote for the programs they feel deliver the best combination of benefits, awards, and returns on loyalty from the traveler's point of view. Winners are determined not only by how many votes a program receives, but by the overall merits of each program as reflected in "value voting," where voters rate their favorite programs on a scale of one to ten. More than 700,000 frequent flyers submitted ballots to Freddie Awards organizers, casting votes for programs worldwide.
www.southwest.com
Website: http://www.southwest.com/
DALLAS, April 28 /PRNewswire-FirstCall/ -- Southwest Airlines' frequent flyer program, Rapid Rewards, won first place for Best Award Redemption and placed in the top five in five other award categories at Inside Flyer magazine's 21st annual Freddie Awards ceremony last week in Ft. Lauderdale, Fla. This is the 11th consecutive year for Southwest Airlines to win Best Award Redemption (every year since the award was created in 1998). Southwest Airlines also placed in the top five in five other categories, including: Program of the Year, Best Web Site for southwest.com, Best Member Communications, Best Bonus Promotion, and Best Customer Service.
"Once again, frequent flyers have spoken loud and clear - Rapid Rewards is one of the best frequent flyer programs out there," said Ryan Green, Southwest Airlines' Director of Customer Loyalty. "Our Rapid Rewards program is designed to bring value to our most frequent and loyal Customers, and we are honored to be recognized with this prestigious Freddie Award."
Each year, InsideFlyer magazine invites members of all frequent traveler programs to vote for the programs they feel deliver the best combination of benefits, awards, and returns on loyalty from the traveler's point of view. Winners are determined not only by how many votes a program receives, but by the overall merits of each program as reflected in "value voting," where voters rate their favorite programs on a scale of one to ten. More than 700,000 frequent flyers submitted ballots to Freddie Awards organizers, casting votes for programs worldwide.
www.southwest.com
Website: http://www.southwest.com/
Wednesday, April 29, 2009
Restaurants Make Regulars Feel Special
If you've been a good customer over the years, you're king. "It's your regulars who will get you through this," says Garrett Harker, owner of Eastern Standard Kitchen & Drinks in Kenmore Square. Every restaurant needs regulars during the down times. Now owners and managers are sending little nibbles or a glass of wine to the people who have filled their tables during bad weather this winter, in the post-holiday slump, and other moments when numbers are down. "For the last 10 years, the restaurant community has enjoyed unlimited growth," says Harker. "Now people are more cautious about who they support. They're spending their limited number of dollars on those places they want to survive."
That's certainly true for Richard Barnett and his wife, Laura, regulars at 51 Lincoln in Newton Highlands. When they go out for dinner - usually every weekend, he says - "we like to know it's money well spent, where we love the food and are treated well." He's noticed that the few restaurants he and his wife dine at frequently are "doing more to actively court us, such as making sure we get a table and offering a free dessert."
Freebies are just one part of the well orchestrated effort. Harker likes to send an appetizer to the table of a guest who hasn't ordered one. Or he'll provide a drink recipe for someone who has enjoyed something at the bar.
Attentive restaurants keep track of what their customers order. It isn't necessarily luck that regulars snag a reservation at their preferred time or are seated at a favorite table. This information - along with special requests, birthdays and anniversaries, a preference for sparkling or tap water - once stored in a good maitre d's head, is now captured in the reservation system.
Smaller spots have an easier time remembering the couple who likes bread warm, with butter instead of olive oil, or the woman who prefers a seat at the bar overlooking the kitchen. This, says chef and co-owner Chris Parsons of Catch Restaurant in Winchester, is integral to the hospitality business. "The things that make you successful matter even more now." His 5-year-old restaurant, he says, "is less about me and very much about our servers and the experience [diners] have here."
Two regulars at Catch, Annie and Jeremy Baker, are going out less, she says, "but when we do, we like to eat nice food." She appreciates that Parsons "comes out and chats with people and often sends out unexpected treats between courses." The Bakers, who live near the restaurant, patronize local businesses. But Annie Baker also believes "we're not necessarily going to get a better meal elsewhere."
Another Catch regular is Winchester resident and restaurateur Barbara Lynch. Lynch often grabs an early supper there with her 5-year old daughter and says that her husband, who loves fish, eats there at least once a week. It's not just Parsons's food they come for ("he's a light-handed chef," says Lynch), but "he makes me feel appreciated and you want to give back and support him."
These days patrons are ordering more reasonably priced items, even at expensive establishments. At Mistral, a small plates menu "is a way to offer other options at price points that are far different from our regular menu," says Mark D'Alessandro, director of operations of the Columbus Restaurant Group that includes the chic bistro. Revenues are down now because guests are spending less, says D'Alessandro. "Lower priced concepts are probably faring better." Their group's casual Italian restaurant Teatro hasn't seen the declines that their more expensive properties, Mistral and Sorellina, have.
Smaller guest checks are less of an issue for Eastern Standard, where most entrees range from $18 to $24. Owner Harker keeps an eye on that, and, he says, "We have to demonstrate we care."
Enjoy the royal treatment.
Monday, April 27, 2009
Sizing the US loyalty market: the 2009 census
For the first time on record, US credit card reward programme members outnumber airline frequent flyers, according to Colloquy's '2009 US Loyalty Marketing Census'.
The census found that membership in US financial services rewards programmes has reached 422.0 million, a 77% increase since the 2007 census, sending financial services past airline frequent flyer programmes as the country's largest market for customer loyalty programmes. In contrast, airline loyalty programmes account for only 277.4 million members.
The census showed that total membership in US loyalty rewards programmes has reached an estimated total of 1.808 billion. Programme memberships ranked by industry were as follows:
Figure 1: US loyalty scheme memberships
Source: Colloquy - 2009 US Loyalty Marketing Census
The census found that membership in US financial services rewards programmes has reached 422.0 million, a 77% increase since the 2007 census, sending financial services past airline frequent flyer programmes as the country's largest market for customer loyalty programmes. In contrast, airline loyalty programmes account for only 277.4 million members.
The census showed that total membership in US loyalty rewards programmes has reached an estimated total of 1.808 billion. Programme memberships ranked by industry were as follows:
| Industry sector | Memberships |
Financial services | 422.0m |
Airlines | 277.4m |
Specialty retail | 191.3m |
Hotels | 161.8m |
Grocery | 153.3m |
Mass merchants | 124.8m |
Gaming | 106.0m |
Department stores | 92.8m |
Drug stores | 73.9m |
Fuel convenience | 51.2m |
Restaurants | 13.7m |
Car rental & cruises | 10.7m |
Other | 127.9m |
Total | 1.808bn |
Figure 1: US loyalty scheme memberships
Source: Colloquy - 2009 US Loyalty Marketing Census
"Clearly, loyalty membership growth in the financial services sector was pronounced during much of our latest census period, prior to the economic free fall," said Colloquy partner Kelly Hlavinka. "Just a few years ago, the industry regularly talked about how 50% of all credit cards had reward programmes tied in. Today, estimates range from 75% to 80%. For debit cards, 2006 estimates were 10% to 15%, but latest industry analyses put the numbers at 25% to 50% due to the explosion of merchant funded network programmes. Rarely are companies truly thinking through how crowded the marketplace has become and how to evolve their loyalty strategy to differentiate from competitors."
However, Colloquy also predicts that financial services reward programme membership will experience slow growth in the coming years, and highlights regulatory changes in the US that may affect reward programme budgets, portfolio consolidation, and even cause some card issuers to exit the marketplace. "Card issuers will turn from growing their portfolios to retaining their most profitable and credit-worthy customers," concluded Colloquy's editorial director, Rick Ferguson.
For the purpose of the census, a loyalty marketing programme is defined as recognising and rewarding the best customers of a business. Overall, the census covers 13 industry sectors, and counts programme memberships rather than unique individuals. A white paper entitled 'The Big Sort: The 2009 COLLOQUY Loyalty Marketing Census', explaining the latest census findings, has been made available for free download from Colloquy's web site - click here (free registration required). - click here (free registration required).
Saturday, April 25, 2009
EBay to test eBay Bucks shopping rewards program
NEW YORK (AP) — Shopping on eBay just got a bit more rewarding, at least for some users of the online auction site.
On Wednesday, eBay Inc. launched a "beta" test version of eBay Bucks, a program that lets participants earn a 2 percent reward on certain items they buy through the site and pay for using eBay's online payment service, PayPal. Rewards come quarterly as gift certificates, which can be used to buy other items through eBay within 30 days.
Unlike many other "beta" tests, this one is open by invitation only; eBay is randomly selecting buyers to enroll. Kurt Apen, head of eBay's loyalty marketing team, said the company will likely expand the program to everyone over the next several months.
The arrival of eBay Bucks marks the company's latest customer-retention move — something the company is focusing on as works to improve its online marketplace, at a time when consumers also have cut back on spending because of the dismal economy.
Other efforts eBay has undertaken include distributing coupons to users and offering discounts on referrals from Microsoft Corp.'s Live Search site.
Program participants will be able to earn up to $200 in eBay Bucks per item purchased on eBay and up to $500 per quarter. Because the reward rate is 2 percent, a $100 cell phone would earn $2 eBay Bucks, translating to $2 in gift certificates at the end of the quarter.
Apen said eBay Bucks users will be able to collect rewards on most types of items sold on the site, but real estate and many items sold through eBay Motors will be ineligible.
EBay, based in San Jose, Calif., initially tested eBay Bucks as a smaller pilot program last year. Changes since then include making it easier for users to redeem their rewards and allowing them to spread them out over various transactions.
— Rachel Metz, AP Technology Writer
On Wednesday, eBay Inc. launched a "beta" test version of eBay Bucks, a program that lets participants earn a 2 percent reward on certain items they buy through the site and pay for using eBay's online payment service, PayPal. Rewards come quarterly as gift certificates, which can be used to buy other items through eBay within 30 days.
Unlike many other "beta" tests, this one is open by invitation only; eBay is randomly selecting buyers to enroll. Kurt Apen, head of eBay's loyalty marketing team, said the company will likely expand the program to everyone over the next several months.
The arrival of eBay Bucks marks the company's latest customer-retention move — something the company is focusing on as works to improve its online marketplace, at a time when consumers also have cut back on spending because of the dismal economy.
Other efforts eBay has undertaken include distributing coupons to users and offering discounts on referrals from Microsoft Corp.'s Live Search site.
Program participants will be able to earn up to $200 in eBay Bucks per item purchased on eBay and up to $500 per quarter. Because the reward rate is 2 percent, a $100 cell phone would earn $2 eBay Bucks, translating to $2 in gift certificates at the end of the quarter.
Apen said eBay Bucks users will be able to collect rewards on most types of items sold on the site, but real estate and many items sold through eBay Motors will be ineligible.
EBay, based in San Jose, Calif., initially tested eBay Bucks as a smaller pilot program last year. Changes since then include making it easier for users to redeem their rewards and allowing them to spread them out over various transactions.
— Rachel Metz, AP Technology Writer
Wednesday, April 22, 2009
MovieTickets.com Rolls Out the 'Red Carpet' for Moviegoers, Offers First-Ever Auction-Based Loyalty Program
LOS ANGELES, CA--(Marketwire - April 21, 2009) - MovieTickets.com (www.movietickets.com), the worldwide leader in advance movie ticketing, today announced it has launched an auction-based loyalty program for registered moviegoers.
The "Red Carpet Rewards Club," the first of its kind in the movie-ticketing industry, rewards the site's 11 million-plus registered users, and any future registered users, with points each time they purchase tickets at MovieTickets.com. Users can then bid points on three tiers of prizes during monthly auctions.
"We wanted to create a fun and innovative way for our most loyal MovieTickets.com customers to reap the rewards of their moviegoing," said Walt Borchers, Senior Vice President of Sales and Marketing, MovieTickets.com. "And the innovative program design gives everyone a shot at winning, regardless of the number of points accrued."
Prizes refresh each month and include everything from movie ticket packages and memorabilia to round-trip air fare, shopping sprees and gaming consoles. Consumers are encouraged to check back monthly to view the latest auction items.
For more information or to speak with a MovieTickets.com representative, contact Formula at (310) 578-7050 or via e-mail at marek@formulapr.com.
About MovieTickets.com
CONTACT:
Grant Marek
Formula
310-578-7050
The "Red Carpet Rewards Club," the first of its kind in the movie-ticketing industry, rewards the site's 11 million-plus registered users, and any future registered users, with points each time they purchase tickets at MovieTickets.com. Users can then bid points on three tiers of prizes during monthly auctions.
"We wanted to create a fun and innovative way for our most loyal MovieTickets.com customers to reap the rewards of their moviegoing," said Walt Borchers, Senior Vice President of Sales and Marketing, MovieTickets.com. "And the innovative program design gives everyone a shot at winning, regardless of the number of points accrued."
Prizes refresh each month and include everything from movie ticket packages and memorabilia to round-trip air fare, shopping sprees and gaming consoles. Consumers are encouraged to check back monthly to view the latest auction items.
For more information or to speak with a MovieTickets.com representative, contact Formula at (310) 578-7050 or via e-mail at marek@formulapr.com.
About MovieTickets.com
CONTACT:
Grant Marek
Formula
310-578-7050
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