Loyalty Marketing and More…

This post is not so much about Loyalty but about a really cool tech gadget that is making big waves in Europe and just starting to catch attention in the U.S. The device is called a Poken and at its most basic form, it is an electronic business card. You meet someone who has one, you put the two devices next to each other and they wirelessly transmit information about the owners. Then when you get to a computer, you can upload the people you met automatically and now have access to their social networking sites (i.e. Facebook, LinkedIn, etc.).  Personally I think this is one of the coolest new devices I’ve seen and I can imagine a lot of very practical uses.

Imagine walking around a conference where networking is one of the most valuable things you can do. Instead of handing out tons of business cards or collecting tons of cards, you simply touch your Poken to their Poken and you’re done. When you get back to your computer, you upload and all your new contacts are organized for you. You have details of the date and time you met but you can also see a picture of your new friend and link directly to their LinkedIn profile to get connected. This could be a huge timesaver.

But I also see this at work in social settings such as at a bar. No more writing phone numbers or email addresses on scrap paper. Adding someone to your cell phone seems like going overboard for someone you just met. Poken is perfect! Just tap and go and decide later if you want to connect.

Poken was featured recently on NPR and has been getting some good coverage in Europe. If you want to buy a Poken, go to PokenPlace.com. I’ve set up my own little Poken store just to sell the devices since I’m such a big fan. Enter the promo code “Loyalty” at checkout and I’ll give you 5% off. Remember, you read it here first – Poken will be HUGE!

With the economy in the dumps, companies appear to be doing one of two things to survive. They are either retrenching to fight off the bad times or they are trying new things to stand out from the crowd. Very few if any are sitting still and not doing anything. For the companies retrenching, who can really blame them? Everyone keeps talking about how difficult these economic times are and how very few people still alive today can recall economic conditions this bad. Not since the Great Depression have we seen this level of corporate failures and stock market woes. Perhaps cutting back and looking for things to improve before one spends money will be a wise course of action. I however prefer the more adventurous approach – to try some new things and see if you can actually grow your business. Some people are even using the difficult economic times as an easy excuse if something they try doesn’t work. Instead of blaming a failed strategy or a bad idea, one can easily point to the bad economy and have some justification for failure.

Many people in news articles and blogs have already pointed out that companies like Kellogg and Proctor and Gamble were created during the Great Depression and used advertising to grow their companies. Kellogg overtook Post Cereals through creativity and a new approach and has never looked back. Some of the keys to success for these companies were their approaches around advertising. Spending may have been down and some people may have truly been struggling but some spending was still happening as it is today. The questions decision-makers at companies need to ask themselves are what new things are worth trying and how will we judge success?

One area receiving a lot of attention is customer Loyalty. There are many ways to address Loyalty and how it impacts your business. There have been numerous articles over the years giving the “inside secrets” on how to make your Loyalty Program successful. Personally I find this “one size fits all” approach disturbing. Sure there are certain tenets that are relevant for most businesses. But your business is not the same as your neighbors so your Loyalty Program shouldn’t be the same either. You need to focus on what makes your business unique and find specific solutions that address your customer’s needs. Spend a few hours talking through your ideas with a Loyalty consultant. A small investment now could save you a lot of money in the long run.

For some resources that may be helpful, see the following articles:

• Rewards That Reward
• Differentiating Loyalty Schemes by Customer Needs (registration required)
• How to DIY…Loyalty Programs

Or if you have questions and want to talk to a consultant, please Contact Us.

An interesting email from Upromise showed up recently announcing that Zappos, the popular online shoe site, was leaving the Upromise program. I have to admit that I was surprised. Not that I got an email from Upromise but that Zappos would be leaving the service. I’m not sure why they chose to do so - maybe all the publicity they’ve received has gone to their heads and they think they don’t need affiliate traffic. I’ve been told they are terminating any affiliate programs that offer something back to the consumer (i.e. college savings, cash back, points, etc.). I for one will be telling everyone they shouldn’t shop with Zappos anymore and to give the other merchants that still work with Upromise and other online shopping programs a chance. Perhaps someone from Zappos will see this post and enlighten us as to why they would choose to no longer help people save for a college education or some other worthwhile goal.

I received an email inquiry from a prospective client recently who read an online article and a comment I made almost two years ago. It always amazes me how things on the Internet stick around for so long. Luckily I still feel as strong today as I did two years ago about the topic - “Online Loyalty Programs Can Increase Repeat Shoppers.” There are many pros and cons around developing stand-alone Loyalty programs vs. participating in broader Loyalty Coalition programs and in some cases, there may be an opportunity to do both as long as the economics support that direction.

Thinking about the previous article/comment reminded me of an article I contributed to recently in DM News. The topic was whether or not a Loyalty program should be exclusive to only certain members or open to everyone. You can read the article yourself but I think the premise is too black and white when there are definitely shades of gray. My stand was that you could do both so long as the program was structured properly. There’s no question that your best customers deserve something special, perhaps even more than your average customer. Airlines have been doing this for many years with their tiered frequent flyer programs. The argument goes that getting someone to preffered status and giving them a “taste” of the good life will keep them more loyal so they don’t lose those benefits. I definitely think this works as I once flew cross country and back the same day just to put me over the mileage requirement before the end of the year. It was the longest “Roberto’s Run” in history I think. But I digress.

The key takeaway is that the airlines don’t offer their program only to their best customers, they have a program that appeals to the average consumer and tries to encourage them up the ladder of engagement. Companies should keep in mind strategies for how to best engage their customers, attract new customers and drive long-term economic value. And if you’re confused about how best to do this, let me know because Loyalty Marketers would be happy to help.