Tag Archives: loyalty strategy

Using loyalty programs to reach retailers’ best customers

Loyalty programs are not a new concept in the world of retail, but, like today’s customer base, they are in a critical state of flux in the current digital era. Both for retailers looking to create loyalty programs from scratch and for those looking to adapt existing programs to appeal to shifting consumers, engaging today’s connected consumer is key, and developing engaging programs was the topic of a session at National Retail Federation’s BIG Show this week in New York.

According to Caroline Papadatos, senior vice president of international corporate marketing at Loyalty One, there has been an “explosion of channels” recently among consumers. She noted during the session that smartphones are often the first thing consumers pick up when they wake up in the morning and the last thing they put down before they go to sleep at night, and it is the responsibility of retailers to make sure that they let that kind of behavior shape their loyalty programs.

“What we’re seeing is that savvy retailers are adapting and they’re getting ahead of the customer,” she said.Shoppers are increasingly looking for personalization and they are looking to have experiences in everything they do from shopping to ordering pizza, Papadatos said, and loyalty programs are a great way for retailers to not only offer shoppers a unique experience but also to collect the kinds of data they need to create a truly personalized shopping experience.

“To create real personalization you need data,” and the well-positioned retailers are the ones that are using that to fuel their loyalty programs, she said.For Walgreens, it took longer than other retailers to really get into the loyalty game. In the early 2000s, the retailer relied on stores for growth, but there came appoint where Walgreens reached a saturation point and had to restrategize. So in 2013 the company turned to loyalty programs as a way to figure out how to better leverage its network of stores and get a deeper understanding of customers, with the goal of transforming the retailer’s image from a drugstore to a wellness destination, Walgreens Senior Manager of Loyalty Strategy and Insights David Zychinski said during the session.

In the two years since the chain launched its rewards program, Walgreens has really worked to create an engaging and dynamic program that includes its regular Balanced Rewards, pharmacy rewards and Balance Rewards for healthy choices, Zychinski said. And the retailer’s goal is to focus its loyalty strategy on its best customers.

“It’s not about having a loyalty rewards strategy, it’s about having a customer loyalty strategy,” he said.For Walgreens, the direct benefits of its loyalty programs are important, but the indirect benefits like gaining insights into product assortment, pricing, promotions and store layout also carry real value for the retailer, Zychinski said. And focusing its loyalty strategy on its best customers creates opportunities for retention, greater access to those customers and a deeper understanding of the “share of mind” of Walgreens customers, he said. And the strategy is paying off. Since its launch, Walgreens’ loyalty program has seen more than 1 million customers download coupons, 120 million registrations, more than 80 million active members and 500 billion loyalty points earned.

All in all, Zychinski said important things to keep in mind when it comes to loyalty programs include aligning loyalty strategies with corporate strategies, focusing loyalty strategies on the best customers, establishing a foundation of insights into and segmentation of those customers and using those insights to drive loyalty and behavior changes among the best customers.

“It’s a really exciting time to be in loyalty,” he said.The main goals retailers should keep in mind when it comes to loyalty programs are acquiring customers, increasing basket size, drawing shoppers to stores and achieving a status among customers that has them choosing you over your competitors, according to Papadatos.

“It’s not much more complicated than that,” she said.But it doesn’t end with just establishing a loyalty program.“Loyalty programs are an important tool, but they’re not the only tool in the tool set,” Papadatos said.

It’s also about knowing what to do with the data collected through loyalty programs and bringing the different aspects of loyalty programs like promotional pricing, points programs and perks together into a single platform. Data can only become a decision-making tool after retailers take the time to prioritize and when they apply the data to other aspects of their businesses like merchandising, Papadatos said.

Source : smartblogs.com

Dunkin’ Donuts’ app reaches 10M downloads as loyalty, payments ascend

In a reflection of the growing importance of mobile loyalty to quick-serve restaurants, Dunkin’ Donuts DD Perks loyalty program has signed up 2 million members while the chain’s mobile payment and gifting application has surpassed more than 10 million downloads.

Last year, the coffee house chain initiated a revamp of its loyalty strategy with a bigger mobile focus, similar to the Starbucks loyalty program, and rolled out the program nationwide in early 2014. The company continues to enhance its mobile strategy, including upgrading a typical reward from a free medium beverage to a free, any-size beverage as well as adding new features to the app such the ability to share rewards and to sign up for auto-recharge.

“Looking at the number of guests who have downloaded the Mobile App as well as the number of members the DD Perks Rewards program has, you can see that both programs really resonate with customers simply because both provide guests with new levels of speed and convenience so that people can run on Dunkin’ more quickly than ever before – especially during the busy holiday season,” said Scott Hudler, vice president  of global consumer engagement at Dunkin’ Brands.

“To encourage the spirit of giving this season, DD Perks Members now have the opportunity to share their rewards through the Dunkin’ Mobile App with friends, family and colleagues to keep them running on Dunkin’,” he said. “Dunkin’ Donuts Cards can be used via the Mobile App and purchased at any participating Dunkin’ Donuts locations in amounts from $2 to $125, as well as online at www.DunkinDonuts.com and at many pharmacy, and big box retailers.”

Speed and convenience
The DD Perks Rewards loyalty program, which was introduced nationwide in January 2014, is fully integrated into the app. Members earn five points for every dollar they spend on qualifying purchases at Dunkin’ Donuts when they pay using an enrolled Dunkin’ Donuts Card, either plastic or via the Dunkin’ Mobile App.The DD Perks program was designed to provide customers with new levels of speed and convenience and the results suggest that customers are responding to the mobile strategy.

New enhancements to the program and app include the distribution of a coupon for a free any-size beverage upon enrollment into the DD Perks program, on a member’s birthday and once 200 reward points have been accumulated. Previously, members received a free medium beverage.

Additionally, members can now share their reward with anyone via email from the app while users can sign up for auto-recharge directly through the Dunkin’ Mobile App.

Dunkin’ Donuts is celebrating its mobile achievements with several promotions. For example, it is recognizing the two millionth DD Perks member, Jae Choi, with a cash prize of $1,000, free coffee for a year and a trip to the chain’s hometown near Boston.Additionally, anyone who registers to become a DD Perks member between Nov. 24 and Nov. 30 using the promotional code “2MIL” will be eligible to win $1,000.  One new member will be randomly selected each day.

Social promotion
The promotional activity is being extended to social media as well, where Dunkin’ Donuts has been very active over the couple of years.

Between Nov. 24 and Nov. 26, followers of the brand on Twitter can tweet @DunkinDonuts what they are most thankful for this season. By using the hashtag #DDPerksSweeps in their tweet, followers will have a chance to win a $1,000 daily cash prize.

The Dunkin’ Donuts Mobile App enables guests to pay for food, beverages and merchandise at participating locations in the United States by scanning their DD Cards stored in the app either in-store or at the drive-thru. The app was first introduced in 2012.

The chain also continues to look for ways to fine-tune its targeting on mobile.

“We think that targeted offers, as seen on the Dunkin’ App as well as with the new DD Perks Program, are definitely a must-have for the future of these programs,” Mr. Hudler said. “Consumers have responded very well to the localized offers that are available through the DD Mobile app and when we launched the DD Perks program, we started to target our guests with valuable offers right away to drive incremental spend and visits.“This targeting will become more refined as we continue to learn more about how each guest is behaving as members within DD Perks,” he said. “The DD Perks Program will be an important driver of long-term growth for this brand.”

Source : http://www.mobilecommercedaily.com/dunkin-donuts-app-reaches-10m-downloads-as-loyalty-payments-ascend