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MediaPost Publications, November 2, 2009 — Starbucks' decision to merge its year-old, $25-per-year Gold rewards card and its lower-level card into a single, frequency-driven rewards program signals a shift to a more customer-centric corporate strategy.
Advertising Age, October 5, 2009 — Joseph, a 30-something New Yorker, was visiting Harrah's Resort in Atlantic City on a weekend the hotel was booked solid. But after using his Total Rewards card while playing the tables, he was directed by a pit boss to the front desk, which informed him a room had become available for a "special rate of around $100 a night." When he checked out two nights later he was told all the room charges were on the house.
Was the sudden vacancy pure luck or was it just a case of good customer-relationship marketing on Harrah's part? Ask any of Harrah's 10 million active Total Rewards program members, and they'll all tell you it's unequivocally the latter.
Wall Street Journal, September 1, 2009 — Debra Shigley recently went to a CVS pharmacy in Atlanta and paid $25.39 for two prescriptions, a beverage and a roll of toilet paper. The cashier then handed her a receipt that was almost two feet long.
"As long as my arm," said Ms. Shigley, a 30-year-old author who consults with women on careers and fashion.
Many shoppers have noticed with chagrin store receipts getting longer and longer as retailers tack coupons, return policies, loyalty points and other bits of information and advertising onto narrow pieces of paper that are supposed to be a record of what you bought and how much you paid.
MediaPost Publications, July 13, 2009 — U.S. consumer participation in rewards programs is on the rise across all demographic segments, according to Colloquy, the Cincinnati-based loyalty marketing consultancy. The study reports a 19% participation growth by the general population since 2007.
Participation by Millennials (ages 18-25) has climbed 32% since last measured in 2007.
New York Times, June 21, 2009 — In the days ahead, managers and employees of the Hyatt hotel chain will be doing favors for some of their customers. Maybe they always did them, but these favors will be different: they will be what Hyatt Hotels’ C.E.O., Mark Hoplamazian, has called “random acts of generosity,” like unexpectedly picking up the tab for your hotel-bar drinks or hotel-spa massage. “Random” seems slightly off as a description, in that Hoplamazian announced this pending outburst of hospitality, and the months of consumer research that preceded it, in a guest post on a USA Today business-travel blog. But the idea is that the unexpected nature of the gifts will leave the customer not just pleased but also grateful. Gratitude is a powerful, and potentially quite... continue reading
Advertising Age, June 15, 2009 — After 28 years at Hyatt, John Wallis was named head of marketing at the hotel chain in November of last year. Resigned not to let the recession limit Hyatt's marketing activity, he launched a massive marketing effort. The campaign, which is intended to introduce its redesigned loyalty program, awards three winners — one from North America, Europe and Asia — of an essay contest 365 free nights at any Hyatt hotel worldwide; another 30,000 people will win one free night. More than 87,000 people, 79% of which were customers, entered an essay.
MediaPost Publications, February 16, 2009 — Reward program members are a brand's best word-of-mouth (WOM) advocates, according to new research from Colloquy, the Cincinnati-based loyalty marketing consultancy.
Reward program members are 70% more likely than others to actively recommend products, services and brands, the study found. Proclaiming these active recommenders "word-of-mouth champions," Colloquy said they make up 55% of reward program members, but only 32% of consumers who don't belong.
New York Times, November 5, 2008 — Delta Air Lines, the nation’s biggest carrier, said Wednesday that it would charge some passengers to check their first bag, but that it was eliminating the fuel surcharges to book tickets using frequent-flier miles. It said it was adopting the fee as it matches its policies with Northwest, with whom it merged last week.
Wall Street Journal, September 22, 2008 — Used by businesses for more than 25 years, loyalty programs aim to entice consumers to make repeat purchases by offering them rewards — things like discounts on future purchases or points toward free airline tickets.
Since companies continue to expand them, one would think loyalty programs are powerful tools for boosting market share. Our research indicates many aren't, at least not as designed.
New York Times, August 31, 2008 — Could Coca-Cola’s long-running Internet loyalty program actually be eroding customer loyalty?
Some members of the My Coke Rewards program complain that they have amassed hundreds of bottle-cap codes in exchange for points, only to have some of the expensive items that they have been saving for become suddenly unavailable.
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