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The future of customer loyalty: Insights from Nectar
Andrea Sophocleous, Event Reports, ADMA Engage, November 2013
This event report draws on insights from Nectar, the loyalty card programme, into how the relationship between consumers and brands is changing.
This event report draws on insights from Nectar, the loyalty card programme, into how the relationship between consumers and brands is changing. In order to retain the trust of shoppers in the digital age, marketers need to emphasise four areas: transparency (particularly regarding data collection and use); added value (ensuring customers get a fair exchange for providing their personal information); control (by allowing shoppers to opt in or out); and trust (building confidence in a company's privacy credentials). While most brands have improved their capabilities in the areas of choice, value and convenience, they also now need to enhance the experience on offer, reflecting the personalised service that shopkeepers provided in the 1950s.
The effect of engagement with social media on purchase behaviors
Edward Malthouse, Mark Vandenbosch, Su Jung Kim and Bobby Calder, ESOMAR, 3D Digital Dimensions, Boston, June 2013
This paper investigates whether the contribution of user generated content (UGC) in social media competitions affects consumer purchase behaviour, and then attempts to calculate the return on investment.
This paper investigates whether the contribution of user generated content (UGC) in social media competitions affects consumer purchase behaviour, and then attempts to calculate the return on investment. The paper also attempts to identify the key components of an effective social media competition, and investigates if there are any long-term effects on consumer buying behaviour. Data is analysed from two social media contests for Canada's Air Miles Reward Program (AMRP), one of the largest loyalty programs in the world.
LoyaltyOne: Air Miles Holiday March to a Million
Direct Marketing Association - US, Bronze, ECHO Awards, 2012
The Air Miles Reward Program (AMRP), the leading air miles loyalty scheme in Canada, wanted to boost consumer engagement by 10% and grow its Facebook following.
The Air Miles Reward Program (AMRP), the leading air miles loyalty scheme in Canada, wanted to boost consumer engagement by 10% and grow its Facebook following. It therefore created a charity "competition" where every "like" earned one of three charities a donation. At the end of a month, the charity with the most likes would receive a donation of 1m air miles. Advertising included direct email and text messages, PR and above-the-line advertising. It drove a huge rise in online engagement, with a 305% increase in Facebook likes. The ARMP Facebook page became the fourth-largest brand page in Canada and it was named one of the ten most influential brands in the country.
Farmlands Trading Society: The Party of the Year
The Communication Agencies Association of New Zealand, Bronze, New Zealand Effies Awards, 2012
The Farmlands Trading Society, a retail co-operative for farming supplies in New Zealand, wanted to boost usage of the Farmlands Card credit card, which its members saw as secondary to mainstream cards.
The Farmlands Trading Society, a retail co-operative for farming supplies in New Zealand, wanted to boost usage of the Farmlands Card credit card, which its members saw as secondary to mainstream cards. The creative idea for a promotional campaign was modelled on an old TV game show, Top Town, which had pitted towns against each other in various physical challenges. In the new Farmlands' version, competing towns tried to outspend each other on their Farmlands Cards. A low-budget, integrated campaign delivered a regular contact programme across print advertising, DM, web, email and in-store, and exceeded all targets. Overall spend on the Farmlands Card grew by nearly 25% and it was used by 10% of previous non-users.
From customer loyalty to social advocacy: Leveraging loyalty data and shopper insights to optimize social media engagement and drive in-store sales
Matthew Keylock and Malcolm Faulds, ARF Experiential Learning, Audience Measurement 7.0, 2012
This paper from dunnhumby and BzzAgent highlights how shopper insights can improve the effectiveness of social marketing programs.
This paper from dunnhumby and BzzAgent highlights how shopper insights can improve the effectiveness of social marketing programs. The study utilised anonymous household-level shopping data from retailer loyalty cards by inviting shoppers to link their social media profiles to their loyalty card purchase profiles. These consumers received product samples, pass-along offers and other things designed to spread recommendations both online and in person. The study found that advocacy programs that leverage both shopper and social data increase in-store sales of a brand by an average of 8% and the sales lift sustains at around 4% for six months after the end of the program. The authors also recommend that advocacy programs should target consumers based on a combination of shopper data, level of social activity and demographics.
Walgreens: Walk with Walgreens
Effie Worldwide, Silver, North America Effies 2012
Drug retailer, Walgreens, aims to inspire wellness among Americans. Walgreens turned people's wellness intentions into action by creating a loyalty program that rewards people for walking: Walk with Walgreens.
Drug retailer, Walgreens, aims to inspire wellness among Americans. Walgreens turned people's wellness intentions into action by creating a loyalty program that rewards people for walking: Walk with Walgreens. Upon signing up, members received a branded pedometer to track people's steps. Once logged online, the steps gave instant rewards redeemable at Walgreens. This was communicated through owned media, integrations with relevant media and not-for-profit partnerships. Brand image and store consideration received considerable boosts and generated 317 times more ROI than any other Walgreens initiative running during the same period.
Using supermarket loyalty card data to analyse the impact of promotions
Melanie Felgate, Andrew Fearne, Salvatore DiFalco and Marian Garcia Martinez, International Journal of Market Research, Vol. 54, No. 2, 2012, pp. 221-240
The aim of this paper is to show how supermarket loyalty card data from a panel of over 1.4 million shoppers can be used to analyse the effect of price promotions in a way which can bring significant advantages to retailers and manufacturers when making promotional decisions.
The aim of this paper is to show how supermarket loyalty card data from a panel of over 1.4 million shoppers can be used to analyse the effect of price promotions in a way which can bring significant advantages to retailers and manufacturers when making promotional decisions. The paper demonstrates the significant advantages that loyalty card data can bring to enhance our understanding of promotions, compared to traditional scanner and panel datasets. Regression analysis is used to compare the effects of different promotional mechanics upon different tiers of product across the fresh beef category in Tesco, using both scanner data and loyalty card data. The results show that using loyalty card data, which enables us to moderate for specific shopper characteristics, produces more statistically significant results and provides a more detailed picture of how promotions influence sales.
Lufthansa: Communication à la Carte
Direct Marketing Association - US, Bronze, ECHO Awards, 2011
Lufthansa Airlines in Germany wanted to attract new members to its Miles & More loyalty program, but customers often see no reason to switch.
Lufthansa Airlines in Germany wanted to attract new members to its Miles & More loyalty program, but customers often see no reason to switch. To show prospects why its program was better, it created a website and a novel way of accessing it. In the middle of the Frankfurt airport, it created a massive QR code from 1,400 Miles & More cards. With a quick cell phone picture of the QR code, passersby were taken online to see a short movie of the many advantages that come with the program. 80,000 people watched the video, and 12,000 joined.
From Event to Experience: Johnnie Walker + Social
Direct Marketing Association - US, Bronze, ECHO Awards, 2011
Diageo needed to battle the trend of a waning interest in scotch whisky in the U.S. An event introduced young drinkers to its Johnnie Walker brand, and to its loyalty club, the Striding Man Society.
Diageo needed to battle the trend of a waning interest in scotch whisky in the U.S. An event introduced young drinkers to its Johnnie Walker brand, and to its loyalty club, the Striding Man Society. To appeal to a younger audience, an upscale but less traditional look was created for Johnnie Walker. The company then created buzz around a trendy event where young people could come to learn more about scotch. Central to the campaign was the idea of letting prospects have their say. Before, during, and after the event, social media allowed participants to converse and share their experiences with Johnnie Walker. The Striding Man Society attained 123% of its membership goals.
The Communication Agencies Association of New Zealand, Gold, New Zealand Effies Awards, 2010
Progressive Enterprises created highly personalised communications in a direct marketing campaign that delivered across both email and web for its retail brands in New Zealand: Foodtown, Woolworths and Countdown.
Progressive Enterprises created highly personalised communications in a direct marketing campaign that delivered across both email and web for its retail brands in New Zealand: Foodtown, Woolworths and Countdown. The campaign opened up a new, extremely cost effective marketing channel and it has delivered improved business efficiency, increased sales and improved customer engagement.
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