Is Customer Loyalty Earned, Bought or Both?

"Why was God able to create heaven and earth in seven days and seven nights? Because he didn't have installed customers and legacy technology to worry about." – Brad Smith, CEO, Intuit.

That’s what Smith told Fast Company earlier in the year when he was pondering this question: How do you actually move an existing group of customers from what they fell in love with to the next thing that could be great?

What he’s specifically talking about is near-field communications (NFC), a technology that uses a low-power radio signal to transmit information between two devices – such as a point-of-sale system and a consumer’s smartphone – and enables consumers to take actions such as making payments simply by tapping their phones against a terminal. I’ve written about NFC quite a lot, as well.

Mobile marketing pundits have been trumpeting NFC as the next big thing for several years, but as recently as September 2013 only 18% of American smartphone users owned an NFC-enabled device. And that’s primarily because tapping a phone isn’t all that different from swiping a card or handing over cash. 

In other words, consumers have been so well conditioned to using cards (prepaid, debit or credit) that it’s difficult to get them to embrace a new technology that requires them to change their habits – and there’s a similar dynamic in loyalty.

Loyalty program engagement has dropped 4.3% since 2010, but program memberships have continued to climb – there are 2.65 billion of them in the US alone! Clearly, consumers are used to joining loyalty programs, but when they find them unengaging, they stop using them, remaining members in name only. 

Not exactly a recipe for lasting brand loyalty, is it? Brands need to earn their customers’ goodwill and repeat business. That means communicating with them through their preferred channels and taking the necessary steps to know their wants and needs and so give them rewards that add actual value to their lives.

ThinkInk works with some loyalty companies that really get this.

For instance, Toronto-based Points, runs a virtual loyalty wallet where members can track, trade and redeem a variety of rewards currencies in one convenient location. Not only do consumers have more freedom to use their rewards how they want to, participating brands get to share some of their customer data for a clear picture of customer wants and needs that allows the brands to make relevant offers.

Another company, Kula Causes, built an online platform where brands can allow their loyal program members to convert unused points or miles into cash donations to the charitable organizations that mean most to them (there’s over 2.5 million to choose from!)

In this case, Kula’s partner brands, which include JetBlue and Kellogg’s, earn their loyalty members’ “brand love” – and longer-lasting business relationships – by acting as conduits for those customers’ charitable instincts.

We’re also lucky enough to work with Kobie Marketing, an award-winning loyalty marketing firm that has built many of the world’s most successful customer loyalty and CRM programs for brands including Verizon, AMC Theatres, TGI Fridays, BJs Restaurant & Brewhouse and Royal Bank of Canada. They were recently selected as a leader in customer loyalty services for the second time by Forrester Research, Inc. The findings were published as part of a comprehensive assessment of customer loyalty program service providers in the Forrester Wave™: Loyalty Program Service Providers, Q4 2013. The recognition showcases Kobie Marketing as a loyalty industry innovator while underscoring how companies such as Kobie help brands build programs that track, understand, reward and grow customer value and engagement. Go Kobie!!

Another client, the Fuel Rewards Network is a free rewards program that significantly cuts consumers fuel costs. Members of the FRN program are rewarded at the pump and through their regular purchases at local grocery stores, restaurants and online retailers with cents-per-gallon off savings that can then be redeemed at Shell gas stations around the country. In just over a year, the Fuel Rewards Network has saved Americans more than $240 million in fuel costs with members saving an average of .28¢ on every gallon. All of us at ThinkInk have enrolled in the program – and it’s open to everyone. Visit www.fuelrewards.com to learn more.

Last but not least is PointsHound. PointsHound, which launched in beta in October 2012, is a new type of online hotel booking site that caters to the coveted and valuable frequent traveler demographic by offering an unprecedented rate of airline, hotel and retail rewards for every hotel stay booked on the site, at more than 150,000 properties around the globe. Travelers can choose to earn points and miles with a growing roster of 12 loyalty rewards programs, including American Airlines AAdvantage, My Best Buy, Flying Blue and Virgin America Elevate when making their hotel reservations at PointsHound.com.

You could argue that customer loyalty is bought with discounts – and that’s true if we’re talking about a program that incentivizes exactly the same behaviors without being imaginative and thinking about the whole customer experience. And in an age of diminishing loyalty engagement, the overall experience is more important than ever to earn and keep a customer’s ‘brand love.’

So, while it’s actually some of both, I’m of the opinion that the best and most powerful loyalty is earned by brands that go the extra mile to better know their customers and give them the kind of true value that can drive those relationships for a lifetime.

If you belong to a loyalty program – and chances are you do – how does the brand earn your “love,” if at all? What experiences have enhanced or diminished your brand loyalty? Share your stories with us below.

Are Facebook’s Mobile Ads a Fad or will Successful Monetization Stick?

Whoever coined the phrase “it’s lonely at the top” forgot to mention that that loneliness is often short-lived.

That’s because, at best, aggressive competition means an eventual sharing of the summit (think iOS and Android). At worst, it means a complete dethroning. Remember when AOL was the most popular Web portal?

For now Facebook, still the world’s dominant social media network, can bask in all the mountaintop sunlight it wants.

Not only has active membership continued to grow – it stands 1.2 billion or one-seventh of the world’s population – but desktop and mobile ad revenue is starting to add up. Fully 60% of the publicly-traded company’s third-quarter revenue came from advertising and nearly half of that ad revenue came from mobile devices.

This is especially impressive considering how fast Facebook’s mobile advertising ramp up has been, starting as recently as early 2012. In other words, Facebook has successfully monetized advertising in less than half the time it has taken digital media to achieve even modest advertising revenue results.

But how much longer will Facebook’s mobile advertising miracle continue? The company has already been extremely transparent regarding its own expectations. For starters, Facebook will not continue increasing the percentage of ads in users’ news feeds. With this growth capped, there’s only so many clever ways to incentivize higher click-through rates.

Then there’s the nagging concern that teens are beginning to tune Facebook out, switching to sites like Twitter or embracing a host of direct messaging apps. Some of the pullback is due to Facebook’s own success. What teen really wants to be “friends” with their parents on social media or have them or other authority figures poking around on what was once the equivalent of their digital bedrooms – places considered off limits? According to financial firm Piper Jaffray, only 23% of 8,650 recently surveyed teens preferred Facebook.

While the siphoning of younger support isn’t a big deal for Facebook yet, it underscores just how fleeting social media platform popularity can be and how ad revenues, like a seasonal stream, can dry up as fast as it floods. A decade ago Myspace was the leading social media network. Today, despite a flurry of recent positive news, the site has a very long way to go in its climb back toward greatness – if it ever gets there. Its base of 36 million users is similar in size to the population of the Greater Tokyo Area. One city.

How long Facebook remains on top is anyone’s guess. While I applaud the company’s mobile advertising monetization efforts and hope they continue, could it be a little too late as the next social media fad goes on the attack, chasing that summit?

Reimagining the mobile-enabled PR agency of the future

“Publically traded diversified energy company.”

Try texting that while juggling other tasks. It is how New Jersey’s largest utility company, Public Service Enterprise Group (PSEG), describes itself.

Basically it means PSEG subsidiaries – there are four with names too long to write: control power generation, distribution, line maintenance and infrastructure investment. In non-jargon speech, it means they are almost a monopoly, overseeing nearly all aspects of the energy universe.

But PSEG’s success got me thinking. How can public relations agencies corner their own communication market, becoming “diversified communication companies” along the way?

Energy to change

PR agencies can do that by broadening their offerings and by becoming true information access, distribution and generation conglomerates. What will be their “power lines” – their message distribution medium?

Mobile.

Two recent articles speak to this need but tackle it from different perspectives.

Earlier this spring, The New York Times advertising columnist Stuart Elliott reported on the rebranding of PR powerhouse Fleishman-Hillard turned “FleishmanHillard” and highlighted how the brand is becoming “an integrated marketing communications agency.”

What does this mean? Hint: it sounds a lot like “diversified energy company,” just dressed up differently. It means expanding the agency’s focus largely from traditional earned media to include paid media (advertising), owned media (think branded content and blogs) and increased capabilities to use social media as a critical storytelling medium.

Each of these examples rely – or should rely – heavily on a communication company’s mobile presence and that of their clients. 

Read the rest of the article on Mobile Marketer.

Medical Records at the Tap of a Finger: Mobile is Transforming Patient Care

I recently went for an annual (medical) check-up and walked into the doctor’s office expecting a receptionist to hand me a form to complete. Instead, she handed me an iPad.

As I looked around the busy waiting room, I noticed other patients also clutching iPads. While the lengthy process of writing out one’s medical history is an exercise in tedium no matter what, that day, it was quite novel. Well, almost.

But this medical practice didn’t stop with its tech-savviness in the waiting room. The doctors also carried iPads to use during patient consultations. And in each consultation room, a large flat screen monitor hung on the wall displaying patient records, X-rays, MRI results and important medical data all beamed from the tablet to the screen via Bluetooth™.

It was certainly the most high-tech doctor’s office I’ve been in, a snapshot of what many medical practices will look like in the future and the first thing that came to mind when reading an article in TIME Magazine, Better Care Delivered by iPad, M.D. Part of TIME’s wireless issue, the story focused on the growing influence of mobile technology in the medical field and virtually every aspect of our lives. It’s not just doctors’ offices that are going mobile: hospital-based doctors are rapidly adopting iPads as a way to carry patient records with them and get back the bedside face time lost while looking up electronic records at desktop or remote stations.

So that’s the reason you get about 241,000 hits if you Google the words iPad Lab Coat. That’s right, medical clothing companies are now producing white lab coats with pockets big enough for tablets.

According to the article, every internal-medicine resident at the University of Chicago hospital and at Johns Hopkins in Baltimore is issued an iPad. At the former, patients of iPad doctors get tests and treatments faster and get a better understanding of their conditions.  

Even more impressively, the medical schools at Yale and Stanford have adopted fully paperless, iPad-based curriculums. Of course, these institutions are among the most prestigious hospitals and medical schools in the country, so it stands to reason they would be leading the way.

The influence of mobile on the medical profession is only going to grow: already 62% of physicians who own tablets and 85% of those who own smartphones use them for professional purposes, even if not linked to an electronic-records network.

Our overburdened and dysfunctional healthcare system desperately needs the streamlining mobile can give it. Let’s hope a leap into the future takes us back to a past where patients and doctors had the time to forge real relationships leading to better health outcomes.