Posts Tagged ‘loyalty programs’

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MONDAY MORNING QUARTERBACK DIGEST #27

September 24, 2018

Monday Morning Quarterback Marketing Digest. Here’s some marketing and research thoughts for the week. Email me (Mark@dennettgroup.com) if you need more info on any subject.

TWO QUICK REMINDERS – Do you need end-of-the-year research or a facilitator for a planning meeting? Contact us and let’s get you on the calendar. Also, our 6th Annual Destination Website Research Study will begin next month. The cost is just $125 per month for a one-year study.

AS ANYTHING CHANGED IN 27 YEARS? – Stay tuned this week for “she said, he said” 2018 version when we find out at Kavanaugh hearing if anything has changed since Anita Hill’s sexual harassment allegations against nominee Clarence Thomas in 1991. Interestingly, our view of women in leadership has definitely changed. According to a current Pew Research Center survey, today the majority of Americans say they would like to see more women in top leadership positions – not only in politics, but also in the corporate world. But Republicans and Democrats have widely different views on this subject.

Democrats and Democratic-leaning independents are more than twice as likely as Republicans and Republican-leaning independents to say there are too few women in office (79% vs. 33%). While 64% of Democrats say gender discrimination is a major reason woman are underrepresented in these positions, only 30% of Republicans agree. Will party differences in their view of women in power make any difference when it comes to sexual harassment? We will see.

THE WORLD OF FACEBOOK HAS CHANGED –Take note if you use Facebook (FB) for marketing. People’s relationship with FB is changing. Just over half of FB (54%) users say they have adjusted their privacy settings in the past 12 months, according to a new Pew Research Center survey. Around 42% say they have taken a break from checking the platform for a period of several weeks or more, while around a quarter 26% say they have deleted the Facebook app from their cellphone. All told, some 74% of FB users say they have taken at least one of these three actions in the past year. These changes could have a long-term impact on using FB as a marketing tool.

NIKE GAMBLES – Nike’s “Just do it” campaign is three decades old. So, how do you breathe life into a slogan that is not relevant to a new generation of consumers (most were not even born when the campaign was launched in 1988)? Just add controversy. It was a risky marketing step. It started off with a ton of angry and upset people (mostly baby-boomers and older). But it spoke to a new generation that is far more tolerant. The result? According to a Thomson Reuters Research Study, Nike’s decision to feature Colin Kaepernick paid off handsomely. The company got a load of free publicity, its online sales saw a big boost after the campaign launched, and its stock hit a record high last week. Nike’s online sales in the 10 days following the campaign’s launch saw a 61% rise in the amount of sold-out merchandise, compared to 10 days before the launch. Researchers also noted that, immediately following the launch, Nike managed to cut the number of items it was discounting on its e-commerce site by almost a third, and still do well. The marketing lesson here: if you have an old brand that is relevant only to people over 40, drastic action may be required.

LOYALTY PROGRAMS ARE CHANGING – I was involved in launching the first frequent flyer program, 38 years ago! So, like Nike, how do you keep a loyalty program going for four decades? You need to change-up the rewards. Retailers, who used to just offer discounts, are finally changing their approach according to The Wall Street Journal. Many retail loyalty clubs are shifting to experiences. Recently J. Crew members were treated to breakfast when the store opened an hour early to give them first dibs on sales items. Nike’s Manhattan flagship store, which will open in 2019, is set to have a members-only floor with exclusive products and services. Macy’s platinum cardholders get VIP access to the Thanksgiving Day Parade, cooking classes and Broadway show previews. Lesson here: you must keep your loyalty programs relevant. Is it time to look at your program? By the way, if you don’t have a loyalty program, we help set one up for you.

Ok, see you all next week.

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ARE YOUR CUSTOMERS LOYAL?

February 22, 2012

Because I launched the first frequent flyer program more than 30 years ago (1980), I’ve worked with numerous firms over the years in developing loyalty programs. But now rewards may not be the best way to grow customer loyalty.

Today your customer is bombarded with benefits, points and prizes. There are 1.8 billion loyalty-program individual memberships in the U.S., with the average household participating in 14.1 programs. Yet more than half of those memberships are inactive, according to an article in Ad Age by Martin Reidy, president of Meredith Xcelerated Marketing.

While rewards have worked for travel and credit cards, where increased frequency and value make the rewards worthwhile, they have been far less effective for other businesses. Why? As Reidy points out, “A successful loyalty strategy is underpinned by the consumer’s connection with your brand. The goal is to create sustained demand.”

Earning customer loyalty requires understanding the way your product/service meets the needs of your most important and loyal customers, not just giving them points for being on your side. How well do you know your best customer? Do you know what they value in your service/product?  Once you know that, you will know how to create a loyal customer and not a shopper.