Download CUTTING THROUGH CLUTTER

CUTTING THROUGH
the
CLUTTER
BY DITCHING COOKIE-CUTTER
D
igital disruption and changing
consumer lifestyles are
driving constant shifts for
many brands but especially
for one of our largest clients.
Their particular industry had a negative
reputation which made it even more
difficult for them to find ways to meet
those ever-changing customer needs
(and wants). But one area we were able
to recognize and improve for them was
their loyalty program, of course.
SITUATION
Our partnership began in late 2008
when our client saw a need to redesign
its loyalty program. “We wanted to
reward customers for having various
relationships [with us] and for bundling
different products,” our client shared. “As
a product manager, I wanted the visibility
across the [company] to see all of the
customers’ relationships, and then build
dashboards and portals that could help
me measure engagement across the
board.”
Our client also wanted to add new
features to their rewards program that
would differentiate their brand from the
competition. “We wanted to introduce
some new innovative components,
recognizing that we had a cookie-cutter
program at that point,” they continued.
And cookie-cutter is not the Kobie way.
If we were going to cut anything, it was
through the clutter.
SOLUTION
Working with Kobie, our client redesigned
its customer experience for tracking
and redeeming loyalty points. They also
leaned heavily on customer segmentation
and analytics to measure engagement.
To get the single-view of the customer
across the enterprise (that would be
required to see customer relationships
and interactions our client wanted), we
worked to tie multiple disparate systems
into our proprietary Kobie Alchemy®
loyalty platform. With this change we
were able to offer real-time analytics
and a marketing campaign manager
that helped personalize customer
communications.
With this new customer single-view, our
client was able to measure engagements
and redemption levels and to refine their
loyalty strategy accordingly. The new
platform also allowed the introduction
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Copyright © 2016 Kobie Marketing, Inc. All rights reserved.
of new capabilities - such as pooling
rewards points among different family
members – which proved to be hugely
popular with customers and highly
effective for our client.
RESULT:
With the implementation of our Alchemy
platform in late 2008, our client saw
the number of customers enrolled in
their loyalty program, as well as their
redemption levels, double. Then, in late
2011 everything changed when our client
sold its U.S. card units. They were then
re-branded and their entire marketing
strategy had to change to suit a new
customer profile.
“Our value proposition changed. Now
we had this niche population that we’re
serving, so we had to go back to Kobie
and rework our value proposition,” the
client recalled. “We had been using
loyalty as a customer acquisition leader
for our sales team. Now we had to
change that focus.”
So we reworked their program to make
it more attractive to their newly defined
niche demographic. Our client tossed out
some of the old features of its program
and introduced new ones, such as a
larger variety of rewards including travel,
gift cards, merchandise and cash back
– in multiple countries.
From 2012 to date, we have seen
tremendous strides in our client’s
portfolio size and in their customer
engagement. Registration into their
rewards program has increased almost
15%, the account portfolio has nearly
doubled in size and redemptions have
increased just under 5%. Regarding
the program to date, nearly 40% of
points earned in the program have been
redeemed, which is a very high rate for
their particular niche clientele.
Our client says Kobie Marketing has
built a new foundation for meeting the
changing needs of the customer as well
as some big shifts in [their] own business
goals. They also report that with years
of experience now on Kobie’s Alchemy
platform and working with Kobie’s
team, they now have the capability to
address new changes in customer needs
and handle the needs of new customer
segments.
727-822-5353
Find us at www.kobie.com or drop us a line at [email protected] to learn more.
Copyright © 2016 Kobie Marketing, Inc. All rights reserved.