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Loyalty trends and best practices

How to Craft an Award-Winning Loyalty Campaign (Case Study)

by Zach Woith
April 15, 2014
How to Craft an Award-Winning Loyalty Campaign (Case Study)

Looking to leverage your loyalty program to drive more sales, boost margins, and enhance your brand? Then you'll definitely want to take a look at the award-winning loyalty campaign from Spa Week, the health and wellness brand whose loyalty program, MyWellness Rewards, recently won the Loyalty360 Award for Best Creative Campaign in Loyalty Marketing. With its goal of engaging shoppers throughout the year across multiple channels, Spa Week rolled out a yearlong campaign with seasonally themed installments. Starting with January's "Resolve to Relax" and ending with December's "Shop to Unlock," Spa Week used these campaigns to increase brand engagement while luring in shoppers with real added value. For example, the Thanksgiving campaign, titled "Thanks-Giveaway," featured a 1,000 Wellness Point giveaway, with entries granted as a reward for social referrals via Twitter, Facebook and email. ... Read more

Loyalty Makeover: Abercrombie & Fitch

by Zach Woith
March 24, 2014
Loyalty Makeover: Abercrombie & Fitch

In this installment, we look at the loyalty program at Abercrombie and Fitch, the $4.1 billion fashion retailer with over 1,000 stores, and brands including Abercrombie Kids, Hollister, and Gilly Hicks. 500friends Loyalty Makeovers offer suggestions to retail brands for making the most of their loyalty initiatives. What Abercrombie and Fitch's loyalty program looks like today: Abercrombie and Fitch's loyalty program distinguishes itself from cookie-cutter loyalty programs by embodying the brand's tone and effectively addressing core customers. Benefits include free streaming of music playlists, the chance to skip lines at events, and members-only birthday offers. Limited-time promotional offers keep the program fresh and relevant. First impressions: Abercrombie and Fitch is attempting a turnaround, with revenue dropping 12%, to $4.1 billion, and profit falling 77%, to $54.6 million, during ... Read more

Improve Your Email Marketing with Loyalty: Cardstore's Schedule-Ahead Promotion

by Zach Woith
March 21, 2014
Improve Your Email Marketing with Loyalty: Cardstore's Schedule-Ahead Promotion

One of the greatest benefits of running a loyalty program is the positive impact it can have on your email marketing. In fact, 500friends customers report that loyalty-powered emails can generate up to 50% higher response rates versus regular emails.A great example of how loyalty and email marketing can best work together is a new campaign by our client Cardstore, the online greeting card site owned by American Greetings. In the promotion (creative below), Cardstore offers customers double points for trying out a schedule-ahead feature that makes sending cards more convenient. The campaign is really smart for a bunch of reasons: by offering bonus loyalty rewards for using the schedule-ahead feature — but for a limited time only — Cardstore creates an appropriate sense of urgency, Cardstore is using its loyalty-powered promotion to interact with its customers during a non… Read more

Spa Week Wins Best Creative Loyalty Campaign Award

by Ashley Bienvenu
March 18, 2014
Spa Week Wins Best Creative Loyalty Campaign Award

I'm happy to announce that our client Spa Week has been named winner of the Loyalty360 Awards' Creative Campaign in Loyalty Marketing! Spa Week integrated its rewards program into a series of seasonally-themed creative campaigns that drove loyalty program acquisition and engagement. The campaigns complimented Spa Week's core positioning, which promotes a healthy, well-rounded lifestyle 365 days a year.... Read more

Revving Up Loyalty at Cruiser Customizing

by Ashley Bienvenu
March 14, 2014
Revving Up Loyalty at Cruiser Customizing

Leaders in Loyalty shares the insights and experiences of executives who run loyalty programs. In this edition, Brian Moreno, Marketing Specialist at motorcycle parts and accessories retailer Cruiser Customizing, explains how loyalty-fueled email marketing boosts the mileage of his customer retention investments. Why did you launch Cruiser Customizing Rider Rewards? Moreno: Motorcycle parts and accessories is a competitive industry, and we were looking for ways to stand out. We're not willing to kill margins just to attract customers, so we can't always play the price game. A loyalty program was a great way give our customers an extra bonus. Since we’ve launched, most of our competitors have followed suit and set up their own rewards programs. What benefits are you seeing from Rider Rewards? Moreno: I can't share all the numbers because we consider our loyalty program a strategic asset, but I can tell ... Read more

Loyalty Makeover: Office Depot

by Ashley Bienvenu
March 11, 2014
Loyalty Makeover: Office Depot

In this installment, we look at the loyalty program at Office Depot, the $17 billion office supplies retailer with 1,900 stores that recently merged with Office Max. Loyalty Makeover offers suggestions to retail brands for making the most of their loyalty initiatives.In late 2013, Office Depot completed a $1.2 billion merger with competitor Office Max. In this Loyalty Makeover we'll look at both programs, and we'll examine the opportunities in merging them. What the Office Depot and Office Max loyalty programs look like today: Office Depot Rewards lets members earn rewards for purchases of ink, toner, paper and copy/print/ship services. Members can also earn rewards for recycling used ink cartridges and completing member profiles. Members who spend at least $200 in a calendar quarter achieve Choice status, which allows them to earn extra points through purchases, made either in-store or online, for products in up to... Read more

Should Your Loyalty Programs Rewards Be Higher? Lower? This Key Metric Has the Answer

by Arif Damji
March 10, 2014

To evaluate the success of a loyalty program, many marketers look at its impact on revenue and profit growth. But a huge factor in loyalty program ROI is the cost, the bulk of which is determined by investment in rewards costs. At most companies, marketing and finance departments use budget limitations to set an “acceptable” level of rewards, but like any investment, the right way is to look at the return. Do higher — or lower — rewards levels make more sense? To simplify the answer this question, we’ll use a loyalty metric know as Reward Cost Efficiency, or RCE. RCE tracks incremental dollars generated for each dollar spent on rewards. To see it in action, let’s consider a simple example. Say I run a loyalty program for 7-H Stores, a fictional specialty retailer, and I’m evaluating whether to increase my rewards level. Currently my program has a 4% funding rate, … Read more

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