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The Brands Behind Brilliant Customer Loyalty Programs

Debora Haskel

According to Colloquy, the average number of customer loyalty programs per U.S. household has grown to 21.9, but only 9.5 of those memberships are currently active. In my house, we discovered the metal container used by Wrigley for its Eclipse® mints is the perfect vessel for those mostly-inactive loyalty program fob cards. Since it appears Wrigley has discontinued this product, it is especially appropriate for inactivity.

We leave the box in the car’s center console and try to remember to grab the appropriate card when needed. But mostly, they stay in the Eclipse box. The loyalty cards that only leave my wallet when scanned at the register and immediately return to their “always with me” place are Dunkin Donuts Perks and CVS ExtraCare. Both programs share attributes that put them squarely in the “active” category in my house.

  • Every purchase earns a reward
  • Rewards can be earned for things other than transactions (e.g. surveys, referrals, social media, sweepstakes, etc.)
  • Rewards are easy to earn and redeem

Our friends at Mintel cite these and other selling points in the following statistics for why consumers join loyalty programs:

  • Ease of redeeming rewards – 55%
  • Ease of earning points – 51%
  • Monetary rewards – 51%
  • Access to exclusive deals and coupons – 36%
  • Easy enrollment options – 22%

New Meaning for Customer Loyalty Perks

The launch of Dunkin Donuts’ new Perks program included point-of-purchase brochures that were eye-catching, brilliantly designed (the corner was die cut to look like a bite was taken out) and included an immediate incentive for enrolling. However, employee awareness and knowledge about the program seemed to vary from location to location. The easy explanation is that some Dunkin Donuts franchisees may be more active in partaking of corporate marketing support than others.

The ExtraCare program at CVS offers opportunities for savings and rewards. I would be embarrassed by the yards of coupons that print for me at the register except that I don’t seem to be alone in earning them. In my ZIP code, CVS has done a great job training employees to ask if customers are members of the program at the beginning of the checkout process. They also make it easy to participate with a phone number if the card is in the Eclipse box in the car.

CVS clearly understands the principles of segmentation and transaction history, too. There are additional segments to its customer loyalty program including beauty, health and diabetes management. To incent members to fill their prescriptions at CVS and keep them there, the company offers the opportunity to earn $5 in ExtraCare Rewards for every 10 prescriptions filled when you join ExtraCare Pharmacy & Health Rewards.

After all this writing, it feels like time for a cup of coffee. According to its website, Dunkin Donuts was rated #1 in Customer Loyalty by Brand Keys Customer Loyalty Index from 2006-2013. Apparently I’m not alone in proudly wearing my “Friends Don’t Let Friends Drink Starbucks” t-shirt. If you’d like to talk about how IWCO Direct can help make your loyalty program a favorite of consumers, let’s meet over a cup of coffee (preferably Dunkin Donuts) soon.

link https://www.iwco.com/blog/2014/11/19/customer-loyalty-done-right/
Debora Haskel

Author

Debora Haskel

Vice President Marketing and Corporate Communications. Graduate of Syracuse University. Member of the Forbes Communications Council. Bringing the “there’s no such thing as good enough” philosophy to IWCO Direct since 2000. Single Source Award winner while at Banta, antique auction aficionado, and New York Yankees supporter since age 4.

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