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RETAIL JUNE 2013 omnichannel loyalty: Cracking the Code SPONSORED BY presented by RIS RETAIL MATURITY LADDER Maturity Ladder: Omnichannel Loyalty The RIS News Retail IQ Report Maturity Ladder is a diagnostic measurement tool for a retailer’s state of technology advancement in a specific category. There are four key phases: 1. Basic – minimal capabilities, 2. Intermediate – mostly basic with some advanced capabilities, 3. Advanced – mostly advanced capabilities with some limitations, and 4. State-of-theArt – comprehensive capabilities are fully integrated and up to date. Note that it is possible to be on more than one step of the ladder simultaneously as specific technology components and processes are upgraded in phases 4. STATE-OF-THE-ART · A complete array of technologies, including databases and analytics, are fully integrated across channels and transparent across departments, allowing for unified customer service · Organizational silos are eliminated, allowing full collaboration among marketing, IT, logistics, store operations, etc. · Loyalty program elements and offers are available to shoppers seamlessly across physical and digital channels, creating a single omnichannel presentation · Big data is integrated into marketing plans, allowing for highly nuanced and targeted offers · A set of performance metrics is established to demonstrate ROI 3. ADVANCED · Downloadable coupons, personalized online fliers, mobile apps linked to the loyalty programs, and other digital rewards are made available · Shoppers have real-time access to reward status, with auto-alerts and the ability to instantly redeem awards · A robust level of interaction is taking place on social media outlets like Facebook and Twitter · Campaign management is integrated across channels · Big data is captured through multiple digital channels 2. INTERMEDIATE · Corporate structure is reorganized so that campaign management can be coordinated across departments · Investments are made in technology upgrades, including databases, analytics and Web platforms, making use of cloud offerings whenever possible · A policy is established respecting shoppers’ tolerance for digital promotions as well as their privacy · Forays are started into mobile marketing (such as text promotions), social media engagement and website personalization 1. BASIC · Silos predominate as departments like marketing and IT pursue separate agendas · Loyalty programs are mostly geared toward financial incentives without an effort to understand shopper tendencies · Loyalty data is collected but not leveraged for deeper insights · Websites offer coupons and promotions, but they are not personalized · Smartphones and social media remain largely untapped 2 RETAIL Aug. 2013 omnichannel loyalty: Cracking the code In the retail marketplace of escalating competition and innovative new concepts that are empowering digital shopping like never before there is nothing a retailer covets more than loyal customers. Today three-quarters of U.S. households are enrolled in at least one frequent customer program. However, just 44% are active. So while technology-based loyalty programs have become ubiquitous, their utility and appeal to shoppers are not automatic. Too many retail companies have built loyalty programs that don’t actively engage their customers or give them compelling reasons to use them. The solution resides in shifting from loyalty systems that were largely designed in a singlechannel environment dominated by stores to one that seizes the opportunity to engage customers and cultivate loyalty through a fully integrated omnichannel approach. 39% Retail 31% Travel, Hospitality 21% Financial Services 9% Other There is nothing a retailer covets more than loyal customers. These are shoppers who return again and again despite what the competition offers, who are not just looking for the lowest-priced bargain, and who recommend their favorite retailers to their friends. They see enduring value in what a good retailer offers and identify with the retailer’s brand, price image, level of service, quality and ambience. Shoppers like these are rare and valuable, and the process of cultivating them is a complicated combination of science and art. It is one thing to attract a shopper to your store, but quite another to keep her coming back. There was a time when merchants used to engender loyalty by getting to know their shoppers personally. Good ones remembered names, faces, preferences, family members, birthdays, anniversaries and more. This was a simpler time. Today, however, large retailers rely on technology rather than personal contact to build and nurture relationships with shoppers. Retailers began to use technology for loyalty marketing in the late 1980s as grocery chains like Ukrop’s and Source: Colloquy Loyalty Census 2012 3 RETAIL Jack Kennamer President, LOC Enterprises The industry will have to flip the current model by letting the consumer tailor their engagement with each merchant. So I as a consumer would say I want to get e-mails from this merchant, connect with this one via Facebook, and that one via Pinterest. LOC Enterprises, LLC, based in Cincinnati, Ohio and with offices in Atlanta, Ga. and Wichita, Kan., is the creator of the LOC Card®, the first truly universal loyalty enrollment/ engagement system that provides the most effective, cost-efficient, customer friendly and privacy-protected solution for connecting consumers with merchants’ rewards and loyalty programs. LOC Enterprises has teamed with Logicalis, an international IT solution and managed services provider, and VMware, the Palo Alto, Calif.-based global leader in virtualization and cloud infrastructure, to create an IT infrastructure that allows consumers to use the LOC Card all over the world. Other LOC Enterprises partners include top scanner manufacturer Motorola, Conductiv Software, a leading developer of mobile POS systems; and SHC Direct and rDialogue, loyalty solution providers. For more information, visit www.locenterprisesllc.com and www.LOCcard.com. Insights To Boost Loyalty, Let Shoppers Tailor Relationship with Retailer Q: As retailers have moved toward an omnichannel operating model, what have been the biggest impacts on their customer loyalty efforts? JACK KENNAMER: For retailers, ‘consumer-centric’ is a nice way of saying being everywhere your customer is. But let’s look at this from the customer’s perspective. They don’t necessarily want you to be everywhere they’re at, such as in their Facebook feed or seemingly everywhere they turn around. Consumers are entitled to their personal space, and their e-mail address and cellphone is ‘personal space’ no different from their house or their laptop computer. Q: How do retailers find the right balance? KENNAMER: You want to avoid having customers feel that they’re getting pummeled with information. I had a customer say in a focus group that she felt their e-mail address had been ‘compromised’ – that it was a tool she had previously used to communicate with friends and family, but it was now so swamped with other things that she could no longer find the content that was still important to her. When customers give retailers their e-mail address or like them on Facebook, they expect them to be good stewards of that information, and a good steward doesn’t abuse that access. There are good steward merchants that send relevant content occasionally, and there are other merchants that pummel the consumer with multiple e-mails. The LOC solution, which operates as a single engagement solution for multiple retailers, is an alternative bridge between the consumer and the merchant. It operates without encroaching on the customer’s personal space nor leaving the merchant out. Q: How can retailers make the best use of the analytics insights they derive from customer data? KENNAMER: There’s nothing wrong with a merchant using your purchasing habits and other information – that you as a consumer opt in to provide – to offer what they believe is a better experience. From the retailer side, it also depends on the goals of their loyalty program. Are they seeking hardcore analytics that will allow them to serve up very specific offers and coupons sent directly to the consumer, or are they just seeking to generally improve engagement? Q: What do you see as retailers’ biggest loyalty challenges during the next few years? KENNAMER: Every merchant, from the biggest to the smallest, realizes they need some type of loyalty or rewards mechanism to communicate and engage with their customer. But if these programs are going to swamp the customer – and omnichannel multiplies this possibility – the consumer just won’t have the bandwidth to deal with it. The industry will have to flip the current model by letting the consumer tailor their engagement with each merchant. So I as a consumer would say I want to get e-mails from this merchant, connect with this one via Facebook, and that one via Pinterest. They will need to be able to tailor what they want and how they want it, versus the merchant shoveling everything at everyone. Give customers the ability to do what they can’t do now, but would do if only knew it was possible! There are already some good stewards out there, and there are others that are swamping the boat. If a merchant lets a consumer tailor the relationship, those retailers will put a firewall between themselves and the other merchants who are not doing what the customer wants. 4 RETAIL Aug. 2013 omnichannel loyalty: Cracking the code Vons (now part of Safeway) introduced loyalty-card (frequent shopper) programs. Scanning or swiping a loyalty card at the POS would deliver points or product discounts not otherwise available. For the first time, retailers were able to link scanned purchases with the people making them, filling databases with “shopping basket” data on individual customers. The concept quickly caught on, and today three-quarters of U.S. households are enrolled in at least one frequent customer account, such as airline miles, hotel points and grocery cards, according to McKinsey & Co. Colloquy, a Cincinnati-based loyalty organization and consultancy practice, put the number of U.S. loyalty program memberships in 2012 at 2.65 billion. However, just 44% of these memberships are active, according to Colloquy. So while technology-based loyalty programs have become ubiquitous, their utility and appeal to shoppers are not automatic. 56% 56% of all customer interaction happens during a multi-event, multi-channel journey. Source: McKinsey & Co. “Too many companies have built loyalty programs that don’t actively engage their customers or give them compelling reasons to want to use them,” writes McKinsey analyst Liz Hilton Segel. She also questions whether the programs, even when used, are driving sales or increasing customer satisfaction. “Fewer than 20% of loyalty members say their memberships are influential in purchasing decisions,” she notes. In the grocery industry, chains like Albertsons and Shaw’s discontinued their loyalty programs this year, and overall, 42% of retailers don’t offer a loyalty program, according to the EKN Benchmark Report “The State of Loyalty in Retail” (2012). The problem with many loyalty programs, blogged Forrester analyst Emily Collins, is that they “largely revolve around financial incentives that drive spikes in short-term behavior but don’t necessarily establish deeper or long-term customer relationships.” This leads to a sea of sameness among loyalty programs and undifferentiated appeal. 5 RETAIL rajashree r Global Head, Retail Solutions group Tata Consultancy Services The customer expects an engaging and seamless experience across channels. It is not about transactions and instead is about interactions. Insights Loyalty Is Built on Unique Experiences, Benefits and Rewards Q: What have been the major impacts of the move to omnichannel retailing on customer loyalty? rajashree: In the new world of retail the customer is not looking at channels; she is only looking at a need to be fulfilled. Relationships are becoming increasingly non-linear and rewarding the customer becomes very different from the traditional loyalty programs. The customer expects an engaging and seamless experience across channels. It is not about transactions and instead is about interactions, especially unique experiences, appealing benefits and experiential rewards. To make this happen retailers need a single view of the customer across channels to engage and influence shopping behavior and create a roadmap for future functionality. Q: Are there new omnichannel metrics that can measure a customer’s value to the retailer? rajashree: Retailers have had standard metrics in place to determine their relative success within a specific channel. However, as new channels emerge and the shopping experience continues to evolve, retailers are re-thinking how they measure success. Establishing omnichannel performance metrics is crucial for retailers. Leaders in this area are establishing new ways to gauge the overall shopping experience by combining traditional metrics with emerging omnichannel metrics, which include net promoter scores, customer satisfaction, percentage of business from repeat customers, cross-sell and up-sell, customer profitability, number of repeat visitors, and dollar value influenced by brand advocates. Q: What are some recommendations for making more productive use of data gathered via loyalty programs? rajashree: Customers expect loyalty offers to be consistent across all channels from an offer creation, delivery and redemption standpoint. Key recommendations include implementing an effective and centralized cross-channel customer loyalty platform that delivers a single view of the customer. Another recommendation is incorporating uniform data collection guidelines across channels for developing personalized loyalty offers based on customer profiles and preferences. And, finally, two key recommendations: Adopt mobile technology to reach a target audience on the go and embrace social media to engage customers in a two-way dialogue. Rajashree R is the global head of the Retail Solutions Group at TCS. She has spent over 15 years engaging with leading retailers in driving their transformation and innovation programs. She has over 15 years’ experience in retail, with expertise in the areas of Customer Experience, Retail Merchandising Operations and Innovation. At TCS she led the creation of the Retail Solutions group which has incubated innovative solutions in the areas of the POS, Loyalty and Big Data based Merchandise Optimization. She also conceptualized the Retail Innovation Lab which researches and experiments with new technology innovations in retail. Q: In the next few years, what do you see as the biggest challenges for retailers in building and maintaining customer loyalty? rajashree: Customer expectations are at all-time highs and brand loyalty is at risk from competitive and marketplace pressures. So, retailers must devise new strategies to keep their valuable customers coming back. The shift to digital media, which enables retailers to listen and respond to customers, presents businesses with vast opportunities as well as challenges. Social media offers retailers a method to be part of the conversation rather than pushing one-way communication. It has also given the customer significant power to influence the purchase behavior of others and many retailers are flying without a cohesive social media plan in a rush to join the conversation, which could end up creating brand confusion. The era of big data has given us the opportunity to collect and store massive amounts of information about our customers, but harnessing that information across the organization is difficult. Many organizations lack the tools, technology and infrastructure necessary to create an effective customer information strategy. Another big challenge is to build brand evangelists and not bargain shoppers. If a loyalty program centers on offering customers special deals it trains them to wait for the discount. Companies need to shift their focus to deepening the relationship with the customer and building evangelists that are less price-sensitive and more resistant to competitive overtures. 6 RETAIL Aug. 2013 omnichannel loyalty: Cracking the code The solution to this problem resides in developing creative strategies from the voluminous shopper data collected via the loyalty programs. “Customer intelligence helps marketers create customer insights that improve their strategy and programs through targeting, segmentation and customized offers,” notes Collins. Indeed, loyalty data has long been viewed as the key to unlocking shoppers’ hidden wants and needs, especially when the emphasis is placed on high-value and high-potential shoppers who could be engaged through personalized offers tailored to their preferences. However, as appealing as this potential was in theory, many retailers struggled to achieve measurable gains from their loyalty programs in the early years of adoption. Ultimately, smart retailers began to crack the code and figured out how to convert the data into personalized marketing initiatives that did indeed keep shoppers coming back for more. Customer analytics specialist dunnhumby, for example, worked some magic for Tesco, which became the U.K.’s largest food retailer, and it later joined forces with Kroger, which has since become famous in the grocery industry for targeted direct-mail campaigns. In recent years, as more technology consultants and vendors have entered the loyalty marketing space, a growing number of retailers have been able to extract marketing nuggets from their loyalty data. Growth in loyalty membership from 2010 to 2012 70% 45% 26% Specialty Store Source: Colloquy Loyalty Census 2012 -1.0% Department Store Grocery Store 8% Drug Store Mass Merchant 7 RETAIL Insights Mike Burge Chairman & CEO, MI9 By having a centralized customer database complete with the details of all sales transactions in all channels, a retailer can develop a full customer profile and purchase history that better serves his customer and himself. MI9 develops and supports a revolutionary retail platform that seamlessly integrates all store and ERP functions and provides users with information in real time anywhere in the enterprise. Differentiated by its elegantly streamlined architecture and lightning-fast processing speeds, this system is ideal for retailers seeking to provide a consistent shopping experience to customers and unified management and reporting to personnel. For more information visit www.mi9retail.com. Preventing the Information Gaps that Erode Loyalty Q: What are the biggest challenges to building/maintaining customer loyalty that are specific to an omnichannel retailing environment? Mike burge: The most difficult challenge is to create a pleasant and seamless experience every time the customer shops, no matter how she interacts with the chain. Every time a customer changes channels in a transaction, there is an opportunity for errors that can erode loyalty – an item is not reserved for pickup, a send sale is overlooked or delayed, a return can’t be matched to the original purchase, a loyalty award is withheld, an inventory lookup provides erroneous info, Web pricing isn’t being honored in the store, etc. Controlling all these variables is a daunting task unless retail systems connect in real time and all channels share the same central database. Q: Are there new, more omnichannel-friendly metrics available for measuring a customer’s value to the retailer? What do you see as some of the most important (or most promising) metrics emerging? burge: RFM (recency/frequency/monetary value) is still a valuable tool, but omnichannel adds complexity. By having a centralized customer database complete with the details of all sales transactions in all channels, a retailer can develop a full customer profile and purchase history that better serves his customer and himself. Through analysis of this database, a marketer can redefine what constitutes ‘best’ customers or establish multiple categories of ‘best’ customers. For example, a store shopper may seem to be of low value because she makes a lot of returns to the store. Using omnichannel analysis, however, she may emerge as a much higher value customer because she purchases a lot online and returns only a small fraction of her total purchases to her local store. Buyers will also have the granular information they need to forecast demand for each item at each fulfillment point, thus satisfying customers and avoiding excessive overhead. Q: Which tools/technologies are going to be most valuable in creating customer loyalty going forward? burge: The key to building true loyalty is having the right merchandise at the right price and making the purchasing process easy, be it in the store, online or using one’s iPhone. Unless the retailer wants to carry a large overhead, reliable item forecasting and intelligent allocation is critical. In this scenario real time data and information access go hand-in-hand. In addition, customer information, loyalty profiles and rewards need to be available in all channels. This is best handled using a centralized customer database. MI9 has built such a system. The Intelligent Retail System delivers a complete merchandising system fitted with a data warehouse and business intelligence at the center of its architectural framework, a robust store system with a built-in loyalty program for field deployment, and then connecting them all with real time data communications through the MI9 Retail Hub. A store-level transaction takes less than two seconds to update information and make it available to the entire enterprise. This is truly real time retailing and provides the immediacy customers expect. 8 RETAIL Aug. 2013 omnichannel loyalty: Cracking the code But the development of today’s successful loyalty systems took place largely while retailing was virtually a single-channel environment dominated by sales through physical stores. Over the past half-decade, however, retailing has morphed into an omnichannel world in which physical stores have joined forces with websites, social media and mobile technology to radically expand and complicate the retailing landscape. As shoppers explore new shopping vistas, retailers have found themselves with new opportunities to engage customers and cultivate their loyalty, and, in the process, have finally begun to realize the broad potential of these programs. “If Loyalty 1.0 was all about discounts, points and miles, Loyalty 2.0 is all about differentiation and engagement,” observes Forrester’s Collins. New Connections For starters, digital options – websites, social media and smartphones – provide retailers with new vehicles to recognize and reward loyal shoppers beyond the POS or direct mail. Shoppers can now be contacted via text, e-mail, social media and mobile apps, among a growing number of digital touchpoints. 2.65 BILLION loyalty memberships in 2012 Source: Colloquy Loyalty Census 2012 Moreover, the variety of offers retailers can deliver through digital media is much richer than ever before as they leverage new sources of data about their shoppers as well as the technological power of these channels. Retailers can also give loyal shoppers access to an unprecedented level of information about products, particularly the ones they are most interested in, and also use this information to ratchet up important customer services. Consumers increasingly rely on mobile devices “as companions to their interactions with a brand” and generate behavioral, transactional and location data in the process, notes Forrester’s Col9 RETAIL Aug. 2013 omnichannel loyalty: Cracking the code lins. Since mobile channels are highly trackable, loyalty programs that collect mobile information “can create deep customer insights that drive personalized communications, experiences and offers,” she adds. For example, a retailer might use geolocation data combined with preference and transaction history to recognize and remind a toptier loyalty member that she has “points to burn” when she enters a store, suggests Collins. Or shoppers can receive offers on their smartphones as they are returning from work and thinking about what to have for dinner. Do you Shop, browse, research or purchase online with your mobile device with any retailer? 29% Yes, excluding purchase Mobile phones can also be used as a source for displaying loyalty membership IDs, a method for points redemption, or an instant program update channel, according to loyalty expert Colloquy. Social media has become an entirely new playing field in which retailers and shoppers can interact with each other, expanding loyalty from a transactional to a more emotional type of engagement. “The big change in the loyalty business has been the emergence of social media to engage and bond with customers in a truly personalized, relevant and emotional way at scale,” says McKinsey analyst Marc Singer. 45% No Source: Forrester Research, The State of Retailing Online 2012 Shoppers can demonstrate their loyalty by “liking” a retailer on Facebook or commenting on how they feel about a particular product or promotion (good or bad). Shoppers who are influential in the social world can become a “net promoter” who blogs about a retailer’s products and services. BzzAgent, a subsidiary of dunnhumby, gives sample products to such shoppers so they can share their opinions via Facebook posts, photos, videos and blogs. Public recognition – such as Foursquare members who compete to become the “mayor” of a local retailer – is another way retailers 10 RETAIL Aug. 2013 omnichannel loyalty: Cracking the code can form an emotional connection via digital means, notes Singer. It’s about “highlighting a customer’s loyalty and value in front of their friends, family and peers to create a multiplier effect on top of the emotional connection,” he says. Social recognition also enables companies to tap into the powerful competitive nature of their customers. Moreover, a badges-and-benefits approach yields a data bonanza. The flip side of the digital revolution is that if retailers thought they could opt out of developing a loyalty program in the past that is no longer a viable strategy today. Shoppers have become so empowered through the use of digital platforms that they are increasingly able to dictate the terms of their shopping experience. It is now necessary for retailers to meet shoppers where they live digitally and constantly figure out ways to attract their business and loyalty. Moreover, the omnichannel world represents a quantum leap in the complexity of loyalty marketing. Shopper databases, which used to be limited to what was collected at the POS in the physical store, have exploded with new information from a wide variety of Web and mobile sources. Retailers realize that this data offers unprecedented insights into their shoppers, and thus greater potential to turn more of them into loyal customers. “The trick is to use the incentive to ask and gather information about their needs,” writes Gartner analyst Adam Sarner in a recent blog. “Do they prefer self-checkout? Which channels of communication do they prefer? Do they go on holiday the same time each year? Now’s the time to ask for that information.” Along with aggregating and possessing new sources of information, the world of omnichannel loyalty also brings with it a host of new obligations. On a broad level, retailers must be wary of overloading shoppers with too many communications or, worse, impinging on their privacy. Shoppers must always be able to opt in or out of any digital loyalty program. 11 RETAIL Aug. 2013 omnichannel loyalty: Cracking the code Operationally, there are other caveats. For example, shoppers should have real-time access to point totals and reward status, with auto-alerts and the ability to instantly redeem awards. Store associates and call center agents should be able to easily access a unified, centralized loyalty program database to discover individuals’ purchase histories, along with their history of redemptions, product returns, complaints and resolutions. Fundamentally, the omnichannel loyalty experience needs to be uniform, with all of the channels meshing into a seamless whole. For that to happen, retailers may need to reorganize their companies so that departments like marketing and IT are working in sync. But this scenario is far from the norm, as only 30% of respondents to the 2012 RIS News Cross-Channel Benchmark Study study said they are currently consistent across channels. Takeaway: If Loyalty 1.0 was all about discounts, points and miles Loyalty 2.0 is all about differentiation and engagement. Omnichannel loyalty also requires tracking a new set of performance metrics that combine old and new KPIs, such as frequency of visits, average basket size for loyal customers, cross-sell, up-sell, use of multiple channels, brand awareness, the quality of customer insights, and value of brand advocates. These KPIs will be important factors in assessing the ROI for the investment in an omnichannel loyalty program, which can represent a significant percentage of top-line sales. Omnichannel Loyalty Leaders Among the retailers who have been able to create a successful omnichannel loyalty program, Seattle-based Starbucks has been one of the leaders. The coffee purveyor became the first national retailer to offer its own mobile payment technology combined with its My Starbucks Rewards program, and the company now generates over three million mobile transactions each week in the U.S., accounting for approximately 10% of total U.S. sales. 12 RETAIL Aug. 2013 omnichannel loyalty: Cracking the code Other elements of the Starbucks program include allowing users to track their loyalty status on mobile devices and become involved in the online community My Starbucks Idea, which encourages customers to have a voice in shaping the company’s future. This year, Starbucks rolled out a way for shoppers to earn My Starbucks Rewards Stars for purchases of Starbucks packaged coffee in grocery stores. The program is expected to be expanded to include other Starbucks products sold through supermarkets this fall. The Stars can be redeemed for free food or beverages in Starbucks retail stores. This kind of multi-retailer loyalty program, known as a “loyalty coalition,” can be found in several global markets but is not yet common in the U.S. Stop & Shop, based in Quincy, Massachusetts, has been a pioneer in merging loyalty with mobile applications. For example, the chain offers loyalty-card shoppers an in-store scanner device dubbed Scan It! that they use to scan products as they shop, expediting checkout at the front-end. The devices also display offers tailored to the shopper’s purchase history and based on her location in the store. Last year, Stop & Shop ported the functionality to a mobile app, enabling shoppers to scan and receive offers on their smartphones. Stop & Shop offers a separate app that allows loyalty shoppers to receive targeted offers on their phones, which can be loaded onto their loyalty cards for redemption. It also enables customers to track gas points, look at the weekly ads, prepare a shopping list (in beta) and order groceries via Peapod home delivery. Percentage of Active Loyalty Memberships 2006 Source: Colloquy Loyalty Census 2012 46% 43.8% 39.5% 2008 2010 44% 2012 13 RETAIL Aug. 2013 Takeaway: The big change in the loyalty business has been the emergence of social media to engage and bond with customers in a truly personalized, relevant and emotional way at scale. omnichannel loyalty: Cracking the code Kohl’s also stepped up its omnichannel loyalty efforts this year, revamping its e-commerce platform and mobile technologies to support its loyalty program. The program has been tested in Texas and is being expanded into 300 stores in California, with a decision to implement it chainwide coming next year. Smartphones and tablets will play an increasingly important role in Kohl’s customer engagement efforts, according to CEO Kevin Mansell, adding that “the program continues to provide significant insight into how our customer shops, and more importantly, how we are better able to influence her shopping behavior.” Multichannel apparel retailer Coldwater Creek is enhancing its loyalty program by combining it with new private label credit cards. “We believe that the best way to strengthen brand loyalty and provide an improved shopping experience across all of our channels is to offer our customers a choice of credit card options, both of which will be fully implemented with our rewards program,” says Coldwater Creek president and CEO Jill Dean. And finally, regional grocer Giant Eagle, recently enhanced its online and in-store experiences to increase engagement by offering personalized toolsets such as digital weekly circulars, shopping lists, menu planning and digital coupons that can be downloaded to shoppers’ loyalty cards. Since launching the revamped site this year, the chain has increased impressions by more than 40% and boosted overall site engagement. The development of today’s successful loyalty marketing systems reaplaces old programs that were dominated by a single-channel approach. The new loyalty paradigm offers retailers an opportunity to leverage new media and new soures of data to produce an unprecedented level of relevancy and engagement. 14 RIS INFOGRAPHIC Aug. 2013 omnichannel loyalty: Cracking the code Loyalty program memberships by industry 39% Retail 31% Travel, Hospitality 21% Financial Services 9% Other Source: Colloquy Loyalty Census 2012 2.65 56% of all customer interaction happens during a multi-event, multi-channel journey. BILLION loyalty memberships in 2012 Source: McKinsey & Co. Source: Colloquy Loyalty Census 2012 Loyalty growth from 2010 to 2012 Do you Shop online with your mobile device with any retailer? Source: Colloquy Loyalty Census 2012 Source: Forrester Research, The State of Retailing Online 2012 Active loyalty memberships Source: Colloquy Loyalty Census 2012