Consumer Strategist

Maintained by 8 Connect Consulting Team and partners from the industry. The team consists of experts in consumer rewards, engagement and loyalty. Over the last ten years, we have helped hundreds of retailers and small business owners in engaging their customers using games, social media and mobile applications. How do you get your customers to return to you? Create Fun and Rewarding Experiences. Contact us at [email protected]

[consumerstrategist]

From a Business Standpoint: Is Fitness Health really Wealth?

Indeed, a 2013 State of the UK Fitness Industry Report showed that the UK health and fitness industry is valued at £3.92 billion.

The sheer numbers of fitness clubs, gyms, yoga studios, online supplement stores and other health-related businesses in existence today, arguably seem to lend credibility to the adage. Meanwhile in the United States, the continuous rise and consumer interest in health and fitness is set to increase jobs availability in the industry by 23% over the next 10 years!

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They say that there is a coffee shop on almost every street in the world and business is (pardon the pun) ‘hot’. But the same can also be said about the health and fitness industry and some may even argue that business is even hotter than your cuppa joe. So in the face of such competitive and fierce business climate how have some weathered the storm and succeeded? And is Health really Wealth, from a business standpoint?

The health and fitness industry is unique in a sense that your customers’ loss is key to your business gains – Weight and Loyalty respectively that is. Motivation is amongst several factors that can make or break your business in this field.

People need encouragement to help them overcome setbacks and to accomplish new achievements. Motivation can come, for example, in the form of realistic goals that you set for your customer. When you tailor realistic goals in many ways it shows that you know your customer. This personalized treatment can only be good for customer loyalty and retention.

Fitness First, the world’s largest health club operator

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Fitness First has rolled out a unique personalized service for its member in its UK outlets. The ‘Star Guest’ alerts staff if a member’s attendance starts to decline and also provides member’s history as well as their reasons for joining the club.

This information enables staff to better understand the club’s members. With such initiative, it’s not hard to see why Fitness First remains at the forefront of the health and fitness club industry.

Proper nutrition is important to a healthy lifestyle

The number of health supplement stores both in physical form and on the ecommerce platform is testimonial to that awareness and need. GNC, Holland & Barrett and Bodybuilding.com are a few examples of household names that have made their mark in the industry.

Here in Singapore, one online health supplement store that has truly made its mark is NutriFirst.net who scored a huge success on the rising fitness trend with a reported $5 million earnings. The company’s focus on service, detailed product consultation and customer retention programs contributed much to its success.

The rising health concerns and climate change have made consumers the wiser when it comes to food choices.

For example, consumers these days would give serious consideration to buying produce from suppliers with good farming and eco-friendly practices. Going green is all the rage it seems.

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Whole Foods Market, Inc. is a giant in the natural and organic foods industry. With stores in the United States, United Kingdom and Canada, this American supermarket chain has been at the forefront on the industry since the 80s.

Recently, it announced a new loyalty program that will be implemented in time for the winter holidays next year. This new program is hope to widen their customer base and improve their share of the natural and organic foods industry.

The continuous rise in consumers’ health and fitness interest don’t look to wane anytime soon. In fact, with the changes (erratic even) in global climate and increased ageing population, the concerns will only get more heightened.

For businesses in the industry, it presents an opportunity to not only educate but also reap major benefits. Knowing your customers is key. When everything is in place and set in motion, Health can truly lead to Wealth.

If you are an SME owner who would like to reach out to your customers who are on the go, 8 Connect has recently launched Instant App Cafe. You can create and publish your own app for just S$50 a month. With more than 10 features in the app such as Stamp cards, Coupons, Menu, Product Catalog, Click to Call, Map Locator and Events, you can now notify your customers of deals and promotions easier.

Instant App Cafe can be downloaded via Apple App Store and Google Play Store. Speak to us at desk @ 8connect.com      

[consumerstrategist]

[News] Which Brands Ranked Top in the Loyalty Game?

Dove, Adidas and JetBlue get high marks for loyalty program satisfaction, according to a new report from Bond Brand Loyalty.

In its fourth-annual study of more than 6,000 consumers, the agency found that 69% of participants in loyalty programs are satisfied with them.

“There aren’t too many brands without some sort of loyalty program in place,” said Scott Robinson, consumer loyalty strategist at Bond.

Indeed, it appears that today’s younger consumers have come to expect brands to offer incentive programs. Almost 30% of all studied said brand loyalty requires such a program. A CMO might react negatively to the news that only a third of customers were loyal to the brand, suggested Mr. Robinson. “The loyalty marketer would say, ‘I’m getting my raise this year.’ “

The number spikes to 37% when it comes to millennials surveyed for the study, who said they would not be loyal to a brand that doesn’t have a strong loyalty program.

These millennials, defined in the study as 20-to-34-year-olds, alter their purchase behavior based on loyalty offerings, too. According to the study, 68% change when and where they make purchases to get loyalty rewards, and 60% will switch brands if incentivized.

On average, people are enrolled in 10.4 loyalty programs, according to Bond, yet they are only active in 70% of them.

People today are more leery of coughing up personal information to branded loyalty programs, said the report. Compared to 29% of consumers who said last year they weren’t sure why programs require them to divulge personal data, 32% said the same this year.

“Willingness to share personal information is strongly correlated with trust,” said the report, noting that “49% of members who strongly believed a program is trustworthy are willing to share information — over three times the average.”

Personal data uses deemed “cool” by those surveyed included discounts based on previous purchases, customized offers and invitations to events, and “online communities” related to the loyalty program.

Bond Brand Loyalty listed the top loyalty programs in a variety of categories. Here’s who ranked No. 1 in each category, followed by the key driver of satisfaction in that category:

Consumer packaged goods Dove (total earning potential)

Dining/quick-service restaurants Papa John’s PapaRewards (members were proud to be part of the program)

Entertainment AMCStubs (total earning potential)

Payment Cards Chase Southwest Airlines Rapid Rewards Premier (quality of rewards)

Retail Kohl’s Rewards (total earning potential)

Grocery Giant Eagle Fuelperks (ability to reach desired awards in timely manner)

Pharma RiteAid Wellness (total earning potential)

Apparel Adidas (total earning potential)

Telecom Verizon (members were proud to be part of the program)

Air Travel Jet Blue TrueBlue (quality or rewards)

Hospitality Marriott Rewards (program is trustworthy)

Source: Adage

[consumerstrategist]

[Case Study] Lululemon Beats Out Nike and Gap on Customer Loyalty

In the United States, 55% of Lululemon’s shoppers between the ages of 25-35 said Lululemon was their favorite brand. In Canada, Lululemon fared even better with 70% 

Lululemon athletica has been under fire recently because of multiple public perception problems. While management transition problems have weighed down the yoga-wear retailer, it has also been branded as unfriendly to plus-sized customers and, if that weren’t enough, Lululemon has for the first time faced questions on the quality of its products.

Specifically, some of the retailer’s most popular yoga pants have been found to “bead,” which basically means that the fabric begins to degrade and form small ball-like beads after multiple uses. With all of these public relations troubles, customer loyalty is more important than ever — and that’s exactly what Lululemon still has going for it.

Customers make a big difference

Retail is a tough world right now. Not only are many retailers, like J.C. Penney, struggling to bring in lost customers, but since the economy crashed in 2009 many consumers have become increasingly cost conscious. This has led many retailers to draw in customers through lots of promotions.

The lucky few retailers who don’t need to cut prices in order to draw in customers are the ones that have extremely loyal customers, which is why premium-priced, active-wear retailer Lululemon’s own customer loyalty is so important.

If customers are not willing to shop exclusively at Lululemon’s stores and also pay the premium prices that the brand commands, then Lululemon has nothing. Fortunately for Lululemon, its customers don’t seem to be going anywhere.

News in!

In January 2014, during ICR Xchange’s 16th annual consumer brands conference, Lululemon gave a presentation in which it not only detailed where it plans to go in the future, it also uncovered some interesting data concerning its customers.

Lululemon hired consumer research organization Target Research Group to not only assess the loyalty of its own customers, but also the loyalty of other top active-wear brands.

These brands included Lululemon athletica as well as Adidas, Athleta of Gap, Nike, Reebok, and Under Armour. Conducted in November 2013, the study was officially titled “Lululemon U.S. Canadian Attitudes & Usage Study”, and it pulled in 25-35 year-old customers of each brand to take part in the research study.

The research group then calculated the percentage of consumers who considered each brand their favorite.

Study results

The results were impressive for Lululemon to say the least. In the United States 55% of Lululemon’s shoppers between the ages of 25-35 said Lululemon was their favorite brand. In Canada Lululemon fared even better with 70% of shoppers saying that Lululemon was their favorite brand. Nike was the second strongest brand with 45% of US customers and 38% of Canadians saying Nike was their top choice. Lululemon also fared well in comparison with Gap’s Athleta brand of yoga-wear as just 29% of U.S. shoppers said Athleta was their preferred brand.

What this data tells us is that despite the difficulties Lululemon has faced in terms of product malfunctions and management flaws, the retailer’s customers have stayed put. Furthermore, this tells us that Lululemon consumers are committed to the brand in its entirety, regardless of what problems may arise. What’s even more interesting is that Nike took precedence over Gap’s Athleta brand since Athleta’s products are more geared to yoga, like those of Lululemon. Time will tell whether Lululemon’s consumers stay loyal or gravitate to one of its competitors.

Foolish takeaway

While Lululemon certainly can’t go on alienating certain customers and not executing on its promise of selling high-quality merchandise, it appears that Lululemon’s brand is intact for now.

What’s even more interesting is that many of the company’s troubles took place before the research group conducted the study, and Lululemon still beat out just about every other major active-wear brand as a customer favorite.

Foolish investors would be wise to take consumer loyalty into account when they consider investing in shares of Lululemon because, like J.C. Penney discovered, customers drive the business; without them, operations take a turn for the worse.

Source: Fool.com

[consumerstrategist]

Whether you business will improve or making sure that customers will come back, is entirely up to you.

[consumerstrategist]

There are no Secrets to Success. Success of your business is in your own hands. When you can hear crows in the quiet cafe or studio, that is the time for you to rethink about your customers’ needs and wants. Dont give up. 8 Connect Consulting has helped hundreds of retailers, malls and small business owners revamped their businesses by engaging customers using games, social media and mobile applications. There is nothing we cannot do for you. Speak to us at desk @ connect.com

[consumerstrategist]

[Case Study] Singapore Airlines: Flying High With Customer Loyalty

Ever since its first flight took off from Kallang Airport, Singapore on 1 May 1947, Singapore Airlines (Malayan Airways Limited Airspeed Consul) has soared great heights in the airline industry for its stellar performance.

It started as a joint venture between the Singapore and the Malaysian governments, to serve the South East Asian region. Singapore Airlines (SIA) was born in 1972, after Malaysian Airlines ceased operations.

Innovation and quality service has propelled the growth of Singapore Airlines in the hugely populated airline industry. It has evolved to be one of the most respected travel brands across the world. With the youngest fleet in the air and a network spanning five continents, SIA is definitely a name to reckon with.

SIA’s Culture of Service Excellence

SIA has continued to provide excellent service to customers, investors, partners, and staff. From the very beginning, SIA had envisioned a completely branded product or service. Throughout its history, it has relied on technology, innovation, genuine quality and excellent customer service.

At the same time, it has remained true to its brand attributes. It places the passengers’ needs first, serving above and beyond the ordinary.

Most importantly, SIA recognizes the fact that innovation has a short life span. Hence, it continues to invest heavily in R&D to remain distinct.

SIA – An Industry Trend Setter

The demure “Singapore Girl” has remained a symbol of quality customer care and service. SIA has a reputation of many “firsts” and it promises a future, of more “firsts” too. Over the years, SIA has pioneered a number of customer service initiatives, few of which are listed below:

Krisworld in-flight entertainment (IFE) system for all classes

Internet and phone check-in for all classes

Full-size ‘space-bed’

Free headsets

Gourmet cuisine, which includes fine wines

Global inflight e-mail system to all passengers

‘Alert Service’ SMS to inform customers of flight arrivals and delays

‘Book the Cook’ service where specific dishes may be selected in advance from a more extensive menu

It was the launch customer of the Airbus A380 Superjumbo too.

Flying High in Turbulent Times

The past five years have been a time of drastic changes in the airline industry. Wide expansion of low-cost carriers, stiff competition across major routes, and major shakeouts has resulted in a significant impact on consumer behavior. According to the International Transport Association (IATA), 2009 witnessed the largest decline in air passenger traffic in the post-war era. However, a greater decrease in passenger traffic (when compared to other international airlines) did not result in a dent in SIA’s growth plans. An understanding of buyer behavior, which aids value creation, has led SIA to fly high in turbulent times too.

SIA has been able to manage its brand through every interaction and experience. One distinct aspect of its experiential brand strategy has been the in-flight hospitality and warmth. In fact, Mr Yap Kim Wah, SIA’s Senior VP (Product and Service) has stated that “We have a high reputation for service and that means that when someone flies with us they come with high expectations. But still we want them to come away saying ‘Wow! That was something out of the ordinary’.”

The ‘Product Innovation Department’ at SIA constantly tracks trends, and uses implications to apply them for future better service. For example, when changing food habits of passengers (increasingly health conscious travelers) was noticed, SIA went ahead and made food, which was lighter and more nutritious. With people moving across continents more than ever before, improvement and innovation are the only qualities, which have kept SIA flying high. Moreover, this has helped reinforce the belief that the companies, which focus on their customers rather than their products, can successfully maintain customer loyalty.

Apart from being one of the most profitable airlines in the world, SIA is the world’s youngest fleet in the air. It has been routinely voted as the ‘best airline’, ‘best business class’, ‘best in-flight food’, and ‘Asia’s most admired company’, and many more such awards. It was ranked 33rd in Fortune’s World’s Most Admired Companies rankings in 2009 too.

SIA’s Customer Loyalty Programs

KrisFlyer: With a KrisFlyer membership, you can earn miles for travel to your favorite destinations. You can redeem your KrisFlyer miles and upgrade to higher class of travel on your next travel through Singapore Airlines, SilkAir and some Star Alliance airlines.

PPS Club: As a PPS Club member, you are guaranteed service and personalized attention. You are also entitled to a host of privileges that will make your entire travel experience more comfortable, more convenient, and more satisfying. Some of the privileges include, Priority Reservation Waitlist, Increased Check-in Baggage Allowance, and Priority Baggage Handling.

Members may also have access to lounges operated by a number of the airline’s partners and may use the lounges at San Francisco, London, Amsterdam, Hong Kong, Sydney, and few other airports.

Conclusion

SIA’s choice of a long-term, customer-driven approach has helped it retain its customers, who act as promoters too. And most of them are prepared to pay the premium price to fly SIA.

With its continued dual focus on customer experience through service excellence and innovation, as it continues to strive for efficiency, SIA is set to achieve newer heights in customer loyalty.

Source: Loyalty Square

[consumerstrategist]

The Secret Ingredients to Repeat Patronage for a Restaurant

Everyday customers are enticed with offers aimed at their wallets. Cleverly crafted advertisements and marketing gimmicks can do plenty for an establishment in their efforts to make customers part with their money. But are special offers enough to warrant customer loyalty?

The Food and Beverage (F&B) business is not for the weak willed. How many times have we come across “Notice of Closure” posted outside F&B establishments that just a month ago (a week or days even) seemed to be thriving?

Indeed it can be disheartening and unnerving when you realize the rate at which restaurants, for example, are faced with foreclosures. They get flipped as many times and some times even more than your breakfast pancakes.

On the flipside, there are many F&B businesses that have stood the test of time and earned a permanent place in the hearts of consumers.

SUCCESSFUL FOOD ESTABLISHMENTS IN SINGAPORE

In Singapore, local establishments such as Tian Tian Chicken Rice, Ya Kun Kaya Toast and BreadTalk Group, to name a few, are now synonymous with good food and perhaps more importantly, healthy patronage. The ingredients in the secret to their respective success may vary but one thing’s for sure, business is good.

Quality of food, service standards and ambience are arguably some of the contributing factors to business success. They entice and more often than not, can also influence and engage consumers into repeat patronage.

But in this day and age, consumers have become smarter and in some ways, a tad more demanding.

Not only do they want value for their money, they also expect returns with every dollar spent. Therefore rewards and loyalty programs have become normal practices for businesses across the myriad of industries to help them get a slice of the consumer pie. Customer engagement is also key in securing loyalty and repeat patronage.

WENDY’S, AMERICA’S FAVOURITE FAST FOOD

  Wendy’s, one of America’s favorite fast food establishments, employs a gamification technique that is both fun and interactive to engage its customers. This has not only contributed to the brand’s continual success but the Wendy’s Friends program has also increase repeat patronage from customers.

When it comes to business and customer loyalty success, Starbucks’ rewards program has been quoted and used as a model in many examples. It has also been studied, dissected and even copied (to a certain extent).

JUMBO SEAFOOD & FISH & CO., LOCAL’S SEAFOOD FAVOURITES

JUMBO Seafood, a favorite restaurant amongst many Singaporeans, has a reward program that gives its customers varying discounts.

Customers can also earn JUMBO dollars with every $20 spent that can be used to offset their final bill. It doesn’t end there. JUMBO seafood rewards card holders are also entitled to discount vouchers and other promotions under the brand and its partner merchants.

Fish & Co., another favorite amongst the locals, offer its privilege card members rewards such as 15% percent rebate on spendings, 80 fish point that can be used to offset their final bill, other attractive deals all year long and more.

The success of an F&B business clearly not only lies in the quality of food or its standard of service

It’s imperative to employ a rewards program to entice and secure a customer’s loyalty. With loyalty comes repeat patronage and that can only be good for business.

So remember to include a form of rewards program on your platter the next time you serve your customer.

It could just be the secret ingredient to your business success.

F&B MOBILE LOYALTY APP

If you are an SME owner who would like to reach out to your customers who are on the go, 8 Connect has recently launched Instant App Cafe.

You can create and publish your own app for just S$50 a month. With more than 10 features in the app such as Stamp cards, Coupons, Menu, Product Catalog, Click to Call, Map Locator and Events, you can now notify your customers of deals and promotions easier.

Instant App Cafe can be downloaded via Apple App Store and Google Play Store.

Speak to us at ming @ 8connect.com

[consumerstrategist]

[News] Hyundai Ranks No. 1 in Customer Loyalty - #BecauseFutbol Tops Social Charts During 2014 FIFA World Cup

The 2014 FIFA World Cup creative theme of celebrating fan passion is a nod to what being a true fan really means. And Hyundai has a 36% share of voice.

The 2014 FIFA World Cup is being hailed as one of the greatest ever – both on and off the field. The tournament is dominating the social universe as one of the most talked about events on Twitter of all time with more than 300 million Tweets related to #WorldCup. With just three games until the coveted Cup finds its next home the drama, excitement and fan passion lives on #BecauseFutbol.

Hyundai currently has a 36 percent share of voice against other top branded hashtags for the World Cup, making it the top branded hashtag among World Cup conversations on Twitter. #BecauseFutbol has generated more than 17 million impressions on Twitter alone and the engagement rate of 9.98 percent has greatly surpassed Twitter’s auto benchmark of 1-2 percent. Similarly, BecauseFutbol.com continues to extend Hyundai’s celebration of fan passion beyond the big screen with more than 200,000 interactions, and counting.

“Great campaigns on Twitter are built around great conversations in the moment.” said Adam Bain, president of global revenue at Twitter. “Hyundai has been amazing at rallying the passions of World Cup fans everywhere on Twitter, and then extending that conversation with really compelling content.”

“#BecauseFutbol has really taken on a life of its own and continues to gain momentum as the tournament continues,” said Steve Shannon, vice president, Marketing, Hyundai Motor America. “In just a matter of weeks, the response to #BecauseFutbol has been amazing; outranking other branded hashtags from leading FIFA advertisers including Adidas, Nike, Budweiser, and Volkswagen to name a few. It has quickly gained popularity, organically dominating conversations around the World Cup. It’s exciting to see a simple phrase transform into a trend that relates to fans and fits naturally with the phenomenon of fan passion.”

“World Cup fans are looking for ways to share team spirit and passion,” adds Shannon. “Our campaign goes beyond driving social conversation around #BecauseFutbol, but also provides fans with a platform where they can share artistic expressions of their passion and interact with like-minded soccer fans.”

Built on the Tumblr platform, BecauseFutbol.com connects, inspires and engages fans with unique content and tools developed by dozens of leading Tumblr artists and content creators. Since its launch BecauseFutbol.com has attracted 28,613 followers, 17.7 million impressions and 465,444 engagements.

Hyundai Motor America tapped INNOCEAN USA’s StoryLab to create, manage and optimize branded content for the World Cup. “While most brands are celebrating the players and teams, it made natural sense to connect Hyundai with fan passion,” said Uwe Gutschow, vice president, INNOCEAN USA. “To this end we’re creating more than 150 original pieces of content. #BecauseFutbol was created as the perfect excuse fans could own to express their love for the game.”

The 2014 FIFA World Cup creative theme of celebrating fan passion is a nod to what being a true fan really means. Hyundai’s ranking as No. 1 in customer loyalty for the fifth consecutive year, according to research consultancy, Brand Keys, served as the creative inspiration. The complete 360˚ integrated marketing platform, complete with two all-new television spots feature the all-new 2015 Sonata, highlights the emotional love of the game and aims to inspire fans with two simple words – “#BecauseFutbol.”

The increased social chatter around #BecauseFutbol and positive response to the commercials translate to new highs on Hyundai.com and dealership websites. Data obtained just two weeks into the World Cup revealed that weekly shopper traffic to 2015 Sonata model pages on Hyundai.com increased 86 percent while Hyundai dealer sites also benefited with a 108 percent spike in views of 2015 Sonatas in-inventory.

2014 marks Hyundai’s fourth consecutive year since 2002 as the official vehicle sponsor of the World Cup. Creative was developed by Hyundai’s agency of record, INNOCEAN USA.

Source: Korea BizWire

[consumerstrategist]

[Case Study] 4 Reads on how Aeroplan, Bitcoin, Starbucks & Virgin Airlines are Approaching Customer Loyalty Program

A core part of marketing strategies for many businesses, loyalty programs can help brands to both attract and retain valuable customers.

When done correctly, loyalty programs encourage repeat purchases, potentially converting customers into brand advocates. But if done incorrectly, loyalty programs can be a waste of time and resources, as well as, a nuisance for customers who don’t want to be involved. Increasingly, many of our fortune 500 clients are seeking ways to link their proprietary insight communities to their customer loyalty programs. Doing so allows them to not only tap into these programs for ongoing insights, but perhaps more importantly, helps them to connect these two assets into an ecosystem that can fuel both consumer-driven business improvement strategies and deeper customer engagement. Here are four examples that illustrate how companies today are integrating loyalty programs into their marketing strategies.

Aeroplan targets students by expanding rewards to include tuition

Aeroplan is the frequent flyer miles program for Air Canada. Aeroplan has built its brand convincing people to collect loyalty points to pay for flights. In recent years, it has been expanding the things those points can buy: charitable donations, song downloads, necklaces, and even fondue sets. Starting Friday, another item will be added to the rewards catalogue: tuition. The program comes at a time when tuition is rising and student debt puts a significant weight on the shoulders of young people attempting to kick-start their adult lives. And it also represents an opportunity for the loyalty industry. –Susan Krashinsky in The Globe and Mail

Is a Bitcoin rewards program the answer to get people on board?

Bitcoin suffers two big problems when it comes to consumer adoption: retailers are unfamiliar with it, and shoppers have no incentive to spend it. A rewards program by gift card site Gyft shows how this could change. Recall that a big problem for Bitcoin is that it’s great in theory but, in practice, it’s not good for much besides speculating. A handful of places in New York and San Francisco accept it, but most retailers haven’t even heard of Bitcoin and, besides, it’s still much easier to pay by swiping a card. –Jeff John Roberts in Gigaom

Starbucks uses its loyalty program to target non-customers

A great case study to look at when deciding on the value of loyalty cards is coffee stores. Most would be familiar with the coffee stamp system where shoppers are rewarded with a free coffee for collecting stamps each time they buy one. That was until recently as two of the big high street coffee brands, Costa and Starbucks, decided to start plastic loyalty card systems more akin to

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supermarket loyalty schemes. Although it is not much of a reason to stay loyal to one brand in any case. Starbucks director of business intelligence and analytics, Joe LaCugna, said earlier this year that the data the company gathered from loyalty cards had shown them that it was not the regular customer that was worth targeting but the one that flits from store to store. –George Arnett in The Guardian

Virgin Airlines uses a tier-system reward program to encourage more purchases

Finding a balance between attainable and desirable rewards is a challenge for most companies designing loyalty programs. One way to combat this is to implement a tiered system. Offer small rewards as a base offering for being a part of the program, and encourage repeat customers by increasing the value of the rewards as the customer moves up the loyalty ladder. This helps solve the problem of members forgetting about their points and never redeeming them because the time between purchase and gratification is too long. Virgin Airlines’ Flying Club inducts members at the Club Red tier, then bumps them up through Club Silver and Club Gold. Club Red members earn miles on flights and get discounts on rental cars and hotels. Club Silver members earn 50% more points on flights, expedited check-in, and priority stand-by seating. Club Gold members get double miles, priority boarding, and access to exclusive clubhouses where they can grab a drink or get a massage before their flight. The key is to offer benefits in the early stages to hook the customer into coming back. Once they do, they’ll realize that “gold” status isn’t unattainable, and offers really cool benefits. –Kendal Peiguss in HubSpot

Source: Vision Critical 

[consumerstrategist]

[Case Study] Coca-Cola's 125th Anniversary Marked its Strong Brand Loyalty

Brand loyalty for Coke is strong. Coke changes its cans, but consumers are still loyal. When Coca-Cola celebrated its 125th anniversary, the Company marked the year in a number of ways. Coke has never been shy about making changes – remember New Coke? – and sometimes the company plays with the designs on its cans. That winter, Coke joined forces with the World Wildlife Fund (WWF) to fundrawase on behalf of polar bears, a Coca-Cola mascot since the 1920s. Specially designed cans of Coke were decorated with polar bears to call attention to the Arctic Home initiative. Coca-Cola Plays with Cans, Could You? Seasonal cans of Diet Coke showed up in silver with snowflake designs. Some loyal Coke fans seem to be okay with that, however, other Coke fans love red and were unhappy with the change to white cans, even for the holidays. This was really too bad since the change to white cans was for a very good cause -- protecting polar bear habitat. Seems like some soft drink consumers forget that the holidays were not just about celebrating, but also about caring and socially responsible charitable giving. Coca-Cola has long been associated with special advertising and designs for the holidays. A more lasting change was made to the Diet Coke can – beyond the usual holiday decoration. In 1982, Coca-Cola extended the brand by launching Diet Coke. The Diet Coke can was re-designed by the Turner Duckworth design firm in San Francwasco. The can has a fresh, modern look but has retained the same design colors of red, black, and silver so recognition should be easy and quick for consumers. The Coca-Cola Company seems to have mastered the social network and social media sites as a way to create some fun for loyal consumers. From Facebook, brand fans can be a Coca-Cola AHHH Giver (thats ahhh! as in "Ahhh, I love the great taste of Coke!" and "Ahhh, how sweet - my friend was thinking of me!") by sending a coke to a friend. That gift of Coke can come right from the hand of the inventor of Coke, Dr. John Pemberton, who speeds the gift along with a wink, or it can be a special coke that delivers points which can be used to help protect polar bear habitat through the Arctic Home initiative. A Coffee Table Book for Coke Fans A commemorative book published by Assouline featured Coca-Cola advertising, artwork, and photography reflecting the relevance of the Coca-Cola brand in popular culture over the past 125 years. Both digital (at the App Store for the Apple iPad) and hard copy versions of the book are available worldwide. This was truly a book for shared moments and memories. It was worth noting that there was a $650 version of the book and a $65 version for those who really will put the book on their coffee tables. Coke Celebrated 125 Years by Sharing Special Treasures Limited edition packaging in select markets around the world was available to mark the 125 year milestone. The Coca-Cola heritage archives were accessible by way of tours of the 360-degree Virtual Museum. The heritage archives have never been viewed by the public before this reveal for the 125th anniversary of the flagship product -- Coke. A new Coca-Cola Heritage App debuted in the App Store. Featured in the application were an interactive timeline and a link to Coca-Cola Conversations, the Company’s blog that was frequently updated with interesting commentary and news. Coke Celebrated 125 Years of Sharing by Making Socially Responsible Commitments The Coca-Cola Company has come up with many exciting ways to thank its loyal customers for making Coke what it is today. Celebrations were taking place around the globe.

Coke released a new packaging size for Coca-Cola – 1.25 liters (naturally) and invited people to enjoy "125 Years of Summer Fun."

Community initiative grants were awarded in South Africa that align with the priorities of "Live for a Difference".

"Live Positively" campaign was launched in Vietnam.

Sustainability initiatives were kicked off in Kenya, including a Kenya Red Cross water partnership.

Elements of Coke’s history was featured at the grand opening of the "World of Coca-Cola" exhibition in Russia.

Commemorative postcards were distributed in Brazil to share happiness and communicate optimism from The Coca-Cola Company associates.

Coke sponsored the International Festival of Arts in Zimbabwe where more than 140 global artists and more than 1000 local artists shared and sold their art.

The Coca-Cola Company uses a customer-based approach to market research, not a product-based approach. Because of Coca-Cola’s close relationship with its customers, it was able to create products that were focused on their market segments. Market research enables Coca-Cola to determine the type of product consumers seek, the best places to promote and distribute the products, and the price that offers consumers the best value for their money. Consumers in different markets can be quite different, even when their consumer profiles appear similar. Coca-Cola Vanilla was a good example of this phenomenon. Coca-Cola Vanilla was established in the U.S. with a good market following, but the Coca-Cola Company wanted to extend the brand to the U.K. Market researchers tested the product concept in the U.K. in order to gauge the response of consumers and Coke fans. Through taste tasting, Coca-Cola was able to ascertain how the product should taste for Coke drinkers in the U.K. Focus groups held with consumers were the basis for identifying the most attractive product design to have British appeal. The work of market researchers in a company like Coca-Cola was complex. Just think of what it takes to test and develop a product range that was attractive to consumers around the globe. The Coca-Cola company and its market research department and market research partners does this very well. Market research keeps tabs of consumer perceptions about the current range of Coca-Cola products, and it helps the company to extend the product range by focusing on customer-driven opportunities. The Coca-Cola Company regards market research so highly that it helped to establish and fund The Coca-Cola Center for Marketing Studies at the University of Georgia. The Master of Marketing Research Program was offered at the university. Coca-Cola Plays with Fashion Designers to celebrate Diet Coke's 30th Birthday Coke continued this creativity with partnerships with fashion designers such as Marc Jacobs, Karl Lagerfeld and Jean Paul Gaultier in 2013. Just a week after Diet Coke announced Marc Jacobs as their new creative director, the designer had unveiled his first new can design. As part of year-long partnership with the drink brand set up to celebrate Diet Coke's 30th birthday, Jacobs designed the collection of bottles and cans, which are set to be unveiled across 11 countries including Britain, France and Iceland. Calling Jacobs one of this generation's 'hottest and most influential designers', a spokesman for Diet Coke said Marc Jacobs’ designs exude a 'youthful spirit, with provocative artistry - the perfect partner to collaborate with Diet Coke'. With this exciting appointment they say they will be building on the brand's impressive heritage of fashion collaborations that have included work with Jean Paul Gaultier, Diane von Furstenberg and Chanel's Karl Lagerfeld, who is reported to drink gallons of the stuff out of crystal goblets. Source: Market Research

[consumerstrategist]

Mobile Wallet - Tap & go payments with your smartphone

[consumerstrategist]

[News] Amazon’s Brand Loyalty should Support its Fights with Hachette & Time Warner

Like a familiar-feeling sequel to Amazon’s dispute with publisher Hachette Book Group, the mega-online retailer is now going head-to-head with movie studio Warner Bros., refusing to accept preorders for a handful of DVD and Blu-Ray releases that include the hit film “The Lego Movie,” according to the New York Times.

While Amazon wrangles over contract terms with Time Warner Inc.’s Warner Bros., does the online retailer’s anti-preorder stance also risk brand damage with consumers? After all, it was only last month that the e-vendor told shoppers that if they needed certain Hachette titles (such as, ahem, JK Rowling’s latest novel), they were welcome to take their business elsewhere.

Yet despite the immense popularity of Legos brought to life on screen, this particular spat isn’t likely to cost Amazon much in terms of consumer loyalty, according to Robert Passikoff, founder and president of the research consultancy Brand Keys. “Ultimately, what it will come down to for a consumer is how emotionally engaged he is with one brand versus another,” Passikoff said.

“Engagement levels for Amazon are much higher than they are for Warner Bros.” By “engagement,” Passikoff means how well a brand lives up to a consumer ideal and delivers on expectations. Passikoff’s firm has published the Customer Loyalty Engagement Index for the past two decades, an annual poll of tens of thousands of people across the nine U.S. census regions.

The more engaged consumers are with a brand, the more likely they are to buy from that brand, and to give that brand “the benefit of the doubt,” Passikoff said.

Amazon has scored No. 1 in the online retail category for 18 years running. This

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year, Amazon achieved a 93% customer engagement rating, similar to its rating in years past, Passikoff said. Customers evaluate the company on measures such as range of merchandise, brand reputation, customer service and security, and dollar-for-value.

By contrast, Brand Keys does not even bother to survey consumers about their engagement with movie studios, Passikoff said, because it is not worth the investment of time and resources to do so. “[Consumers] know the movies,” Passikoff said. “They don’t know who the distributor is.” Passikoff’s isn’t the only consumer survey in which Amazon continues to come out on top.

As Bloomberg reported, the company was the “best-perceived brand in the U.S. last year,” according to polling by the research firm YouGov, and it’s also top-ranked on the American Customers Satisfaction Index.

Bloomberg also noted the dearth of customer commentary on the retailer’s Web site: A comment thread on Amazon.com under the subject line “Why isn’t this available for pre-order?” has less than 20 comments, and many people seem more confused than angry. If there were really a groundswell of public sentiment, the media probably would have gotten wind of this weeks ago when Amazon actually stopped accepting pre-orders for Warner movies.

“Certainly the rabid fans, the rabid readers are not going to be happy about” Amazon’s decision to block preorders, Passikoff said. “Until they need to buy the next book or the next video, and there it is on Amazon.”

Source: IBTimes

[consumerstrategist]

Social media platforms such as Facebook, LinkedIn, Twitter, and blogs are most effective when they serve as an extension of (and not a replacement for) the strong personal connections that you and your employees form with customers. In this 17-minute presentation, Patrick Galvin provides ideas for connecting with customers in ways that will keep them coming back and referring others. Specifically, he'll discuss how to:  • Create "wow" experiences that customers will want to repeat • Follow up after the sale to keep customer enthusiasm alive • Show appreciation in sincere and memorable ways • Ask for and get referrals while strengthening existing customer relationships • Choose the right social media platforms to build meaningful connections

[consumerstrategist]

The future of customer service. BlackBerry takes a look at the impact mobile technology could have in the future of customer service. This video shows how businesses could use integrated social networking to better serve customers and to improve employee collaboration and engagement. A fictional utilities company uses social networking to track, respond and improve their customer experience and service levels whilst increasing staff productivity.

[consumerstrategist]

[News] Online Shopping In Japan: The Pre-paid Card Primer

Here’s the situation: You live in Japan. You don’t speak Japanese. You like stuff.Getting a credit card is possible, but frankly, to a newcomer or transient expat, this is an intimidating proposition. So what do you do when you want to shop online but not use your credit card from back home?

Buy a pre-paid card at the konbini. There are a few to choose from, and some are much easier than others.

Amazon

Amazon.jp cards are available in 3,000 yen and 5,000 yen denominations. While these cards are the most limited in variety (no Visa or MasterCard functionality—it’s like a gift card) it’s also the easiest to use. iTunes, Google Play, and other vendor-specific cards you see at the konbini work the same way—basically—you’re buying store credit.

TO USE: Buy, scratch off the code on the back, and enter that code under “Gift Cards and Promotional Codes.” Boom. Done.

PROS: Super easy and English-friendly. I love Amazon.jp because they have a decent variety and ship insanely fast—you can even schedule your shipment.

CONS: You can only use at Amazon.jp… and you can’t use it to pay for Amazon.jp purchases at the konbini. (But if you’re already shopping online, who cares?)

BUY AT: Family Mart, Mini Stop

Rakuten

The Rakuten Virtual Pre-paid came out last year. It’s available in denominations from 500 to 50,000 yen, and functions as a pre-paid Mastercard, so you can shop with it anywhere Mastercard is accepted online.

PROS: Easily available, and Rakuten has a much bigger selection of goodies than Amazon.jp. Plus, it’s a pre-paid MC, not a gift card.

CONS: You do have to register the card online, in Japanese, using the half-width characters. If you’re decent at Japanese or have a friend who can help you out—this shouldn’t be a deal breaker. And though it’s a prepaid MasterCard, you can still only use it online.

BUY AT: 7-11, MiniStop, et al.

Vanilla

The Vanilla Pre-Paid seems the most user-friendly of all the Visa/MC “register” cards. You buy the card, register online (again—you might need help!) but the site interface is much smoother and from reports I’ve received, it’s the card people go back to.

PROS: Easy to find, fairly easy to use. Buy, register, and get your cc# and security code like a regular credit card. BOOM. InstaVisa.

CONS: Even though it’s supposed to be a virtual Visa, not all merchants will take this card. There’s a list of merchant on their site that cannot accept Vanilla.

BUY AT: Lawson’s, Mini Stop, 7-11

VPC Lifecard

The Visa Pre-Paid Virtual Credit Card (a.k.a the VPC Lifecard)

This isn’t a physical card, but rather a voucher you can buy for Visa credit through any Family Mart. I don’t recommend this method for novice Japanese speakers like me– it requires using the red, Family Mart pre-paid shopping machine and is pretty intimidating. I finally asked the clerk to help me.

Once you buy the voucher, you have to register it online (just like Rakuten and Vanilla), again, all in Japanese. I had a Japanese friend of mine help me translate and even he had a tough time figuring it out (those half-width characters again!).

That said—I did get my “credit card number” and “security code.” And was able to shop online.

PROS: Available anywhere

CONS: Not all merchants accept this one either. I tried using it an an independent UK shop and it didn’t work, but Asos.com accepted it.

BUY AT: 7-11, Mini-Stop, Lawson’s Family Mart, Daily Yamakazi, Circle K SunKus

Source: Gajinpot

[consumerstrategist]

[News] Westpac Brings tap-and-go Payments to Samsung Galaxy Smartphones

After the launch of the Samsung Galaxy S5, Westpac will begin offering contactless payments on selected Galaxy devices.

Westpac is bringing contactless payments to more Australians, with the bank joining Samsung to bring tap-and-go transactions to Galaxy S4 and S5 smartphones next week.

Although it is a burgeoning technology in Australia at the moment, 3 million Australians are expected to have adopted contactless payment technology by 2015 to make $3 billion worth of transactions in the 2015 calendar year.

These numbers represent a broader shift in the ways consumers are spending, with cash payments declining and contactless transactions on the increase according to Westpac chief product officer David Lindberg.

“Eighteen months ago, we could see the momentum building in contactless payments, the ability to take out your credit or debit card and tap it on a terminal and have the payment go through. It was about 18 per cent of all scheme debit card transactions in Australia. In the last 12 months we’ve seen this figure skyrocket to 60 per cent.

“We believe that low value cash transactions will gradually decline. Cash won’t disappear altogether, but when you’re buying your morning coffee, your lunch and your train pass, these will increasingly be paid for on your card or phone and therefore people won’t need as much cash in their wallets. This is a revolution.”

The partnership with Samsung will give GS4 and GS5 users the option to pay using the built-in NFC in their device at contactless terminals where MasterCard PayPass and Visa payWave are accepted.

The functionality is available through Westpac’s mobile banking app; users can determine whether they want to pay by holding their phone to the terminal, or whether they want the increased security of opening the Westpac app or opening and then signing in. The bank also maintains that paying with a mobile will be “just as secure as a card” with backing from Westpac’s Fraud Money Back Guarantee.

At last month’s Galaxy S5 launch, Samsung announced that both Westpac and Commonwealth Bank customers would be able to use the smartphone for mobile payments. With the GS5 hitting stores this Friday, Westpac has confirmed that the app will offer the new contactless functionality next week.

Source: CNET

[consumerstrategist]

[News] Cafe Coffee Day in India Introduces 'CAFE MOMENTS' Prepaid Cards

Cafe Coffee Day (CCD), the leading retail chain of coffee cafes in India today launched 'Cafe Moments' - the very first pre-paid card usable at all CCD outlets.

A tribute to coffee loyalists of the country, the card was first launched at an event at the Coffee Day Square at Vittal Mallya Road in Bangalore. Personalities such as stand-up comedian Sanjay Manaktala, Vivek Prabhakar of popular e-portal Chumbak, karaoke artist Zeke Lawrence, members of metro rock band 'Pushing Tin', RJ Pijosh, along with K. Ramakrishnan of CCD, gathered on the occasion to share their personal memorable moments with CCD.

'Cafe Moments' are prepaid cards designed to enable cashless transactions at all the CCD outlets. Customers can top-up their cards with denominations ranging from Rs. 100 to Rs. 5001 on an ongoing basis,enabling ease of use on the purchase of food,beverages and merchandise at their favourite CCD outlets. What's more, the cards are designed to be a great gift item that can be given out to friends and family members at any occasion. Corporates can also use it as an ideal fun gift for their employees.

The initial phase of 'Cafe Moments' card involves the first launch in Bengaluru. Rest of the cities and markets are to follow shortly.

The launch event saw four young talents of Bengaluru share life moments they had spent at Cafe Coffee Day outlets and how those had become defining moments for them in real life. Like most of the CCD loyalists, the memories of the four youth icons involved funny moments, endearing and romantic incidents as well as professional situations that changed their lives in one way or the other.

Said K. Ramakrishnan, President Marketing, Cafe Coffee Day, "In many ways than one, Cafe Coffee Day has been a hub of many a memorable moments for people of all ages and walks of life. Cafe Moments can be used as an ideal gift or for oneself to create many more happy moments. The card takes away the hassle of carrying cash to CCD and allows you to completely focus on what you're there for -- enjoying the food, beverage and the company.

With the ease of payment that comes with the card, it becomes a must-have for all the CCD frequenters To make it even more exciting, we have crafted special benefits on load, reload & usage, as well as surprise gifts, that will keep changing from time-to-time. I'm sure the card will become part of even more memorable moments of our customers."

In addition to the youth icons, the event also saw attendance by a group of young CCD frequenters. There were giggles and the venue roared with laughter as the audience themselves could relate to some funny, romantic, embarrassing and eventful moments shared by them. The event was a light-hearted and fun presentation on "your memorable moments at CCD" where each of the personalities shared their story on how their life changing moments happened at a CCD cafe.

Source: Cafe Coffee Daily