Loyalty trends and best practices

The Healthy Benefits of Kate Somervilles Loyalty Program

by Zach Woith
January 27, 2014
The Healthy Benefits of Kate Somervilles Loyalty Program

Leaders in Loyalty shares the insights and experiences of executives who run loyalty programs. In this installment, Matt Bunn, Director of Digital Marketing at Kate Somerville, talks about the many benefits of the skincare brand's loyalty strategy. Why did you launch the Ultimate Kate Rewards loyalty program at Kate Somerville? Our primary goals are email acquisition, customer retention and increased visitor engagement. Skin care and beauty is a competitive landscape, and most of our retail partners — such as Nordstrom and Sephora — offer their own customer loyalty programs. Ultimate Kate Rewards puts our online presence on a level playing field. Also, because we utilize our program to communicate with our most loyal customers, it elevates the overall brand relationship. Your loyalty program rewards not only purchases, but other activities as well. Can you explain how that drives ROI? We r... Read more

Loyalty Makeover: Keurig

by Arif Damji
January 15, 2014
Loyalty Makeover: Keurig

Loyalty Makeover offers suggestions to retail brands for making the most of their loyalty initiatives. In this installment, we focus on the loyalty program at Keurig, the single-cup coffee manufacturer, whose annual pod sales have climbed to nearly $1 billion. What Keurig's loyalty program looks like today: The Club Keurig program rewards members with points worth 1% of their total purchases, in addition to special product offers. Everyone who makes a purchase on is automatically enrolled in the program, and points never expire. The program has two tiers: Gold Members: All new members start here, receiving 10% off Keurig beverages. Platinum Members: Gold members who spend $500 attain this level, where they receive 15% off Keurig beverages. First impressions: The substantial 10% discount for Club Keurig Gold members clearly eclipses the value of the program's points giveaways, and given that all customers are aut… Read more

Crafting Your Loyalty Programs Business Case: 8 Non-Obvious Benefits

by Dave Louie
December 16, 2013

Like most execs running omnichannel retail brands, you're probably thinking about the business case for loyalty — either to launch a new loyalty program or expand an existing one. Having helped many omnichannel retailers run those numbers, I'm always surprised by the ways in which loyalty acts as a kind of force multiplier, amplifying the benefits of your other marketing efforts. When crafting your loyalty business case, be sure to take these potentially huge — though not always obvious — benefits into account. 1. Higher gross margins The biggest benefit of a loyalty program is that it trains your customers to buy — not to expect discounts. Margin contribution typically grows over time as more members enroll and your team gets smarter about how to most effectively substitute loyalty offers for straight discounts... Read more

How to Measure Your Loyalty Program Refresh

by Arif Damji
November 26, 2013

Why bother revamping a mediocre loyalty program? Because the payoff can be huge. Still, you may be asking yourself: Shouldn't I just continue with my existing program and prioritize other initiatives? How much will a loyalty program refresh cost, and what are the risks? How will I measure success? Before we tackle measurement and success, let’s address the first two questions. A sub-optimal loyalty program may be a hidden cost center, with customers earning rewards for purchases they would have made anyway. A common symptom of an under-performing program is that rewards costs among top-tier customers (top two deciles) are exceptionally high, while the corresponding opportunity to drive incremental revenue is modest. This scenario often plays out with specialty retailers who are constrained by an addressable share of wallet that is inherently limited among their best customers... Read more


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