Inflection points: Seizing the Moments in Customer Loyalty

Cindy Faust,Vice President,

Product Management

Paul Sage,Product Management Director,Loyalty Management Systems

INFLECTION POINTS

SEIZING THE MOMENTS IN CUSTOMER LOYALTY

RETAIL BRIEF

02 / Inflection Points

© 2013 Aimia Inc. All Rights Reserved.

REMOTE

EMPOWERING LOYALTY

CONTROL

POWER + EASE = CONTROL Our loyalty toolkit makes it easy to control powerful loyalty programs when and how you want to. That unique combination of power and ease gives you

improved control over the customer experience. We can help you. Visit us at aimia.com


INTRODUCTION

The term “inflection point” has multiple definitions. In differential calculus, an inflection point is a point on a curve at which the concavity changes from positive curvature to negative curvature, or vice versa. In political science, an inflection point is a moment in history that dramatically alters a geopolitical situation, for better or worse. In business, Intel co-founder Andy Grove has described a strategic inflection point as “an event that changes the way we think and act.” Each of these definitions describes a moment at which our fortunes change — and in many cases, we can’t recognize the moment until after it’s passed.

When it comes to customer loyalty, inflection points are no less important. Every customer interaction — from her first encounter with your brand, through her first purchase, at each touch point she encounters in your loyalty program, and into each post-purchase service encounter — can make or break her relationship with your brand. In today’s recovering global economy, recognizing and positively influencing these loyalty moments of truth has become our singular challenge.

Indeed, this challenge has led customer-facing businesses to reinvest in and refocus on the customer experience. Consulting firm Temkin Group, for example, found that a modest improvement in the customer experience by a USD $1 billion company can generate between USD $141 million and USD $382 million over three years. Companies such as U.S.-based Delta Air Lines are paying heed to this advice, investing more than USD $3 billion in airport facilities, global products, services, and technologies that enhance the customer experience in the air and on the ground.

The business press is also full of stories heralding the rise of Big Data as a business imperative. But success requires more than a blanket investment in data. The most important data are not big, but rather “core” customer data — that data the closest to, and the most predictive of, relationship value. Historically, traditional transaction-based loyalty programs have served as a rich source of behavioural data. Loyalty analytics translate that data into action, and customers respond with increased spend, tenure, and advocacy.

But in today’s multichannel, message-saturated, always-on marketplace, a one-dimensional loyalty program is no longer enough. In traditional programs, relationship-building efforts happen only after the purchase — and can’t leverage data and insight from pre- or post-purchase interactions. As we revealed in our 2011 “Born This Way”

series of white papers, Millennial consumers around the globe are massively influenced by social and mobile channels, crowd-sourced recommendations, and demand instant gratification from brand interactions. Building loyalty with Generation Y consumers requires a holistic approach, one that connects data dots between channels and touch points to provide a rich flow of customer insight into the business.

The problem is that no one has yet assembled a complete view of customer relationships. Interaction data are often unstructured or locked in silos inside the business. Starbucks, for example, collects rich social media data, and funnels a quarter of its transactions through its My Starbucks RewardsTM loyalty program. But even this retail loyalty leader is still searching for ways to unlock the power of its data. “We haven’t figured out what exactly to do with it yet,” said Joe LaCugna, Director of Analytics and Business Intelligence at Starbucks, about the company’s customer data.

So while marketing utopia may yet lie over the horizon, our vision of this future remains firmly fixed: Reward and recognize best customers throughout the purchase cycle. In this future, we can build loyalty at every stage: When consumers check in at your store, when they make a purchase, when they share the purchase on Facebook, or even when they upload post-purchase usage data via an interactive app. We may not be there yet, but today’s loyalty platforms and solutions hold the potential to turn this data into the marketing fuel that powers sustainable, reciprocal, and profitable customer relationships.

To take the first step on this path, you’ll need to identify the most important inflection points along your customers’ journeys from curious newcomers to brand loyalists. In this Retail Brief, we identify the 10 most important loyalty moments of truth — and offer a few guidelines for getting them right.

“So while marketing utopia may yet lie over the horizon, our vision of this future remains firmly fixed: Reward and recognize best

customers throughout the purchase cycle.”

Inflection Points / 1



According to McKinsey & Company Director David Court, consumers encounter two-thirds of brand touch points during the “active-evaluation phase” — when they seek out online reviews and peer recommendations, when they’re browsing in the store, or when they encounter brand offers and messages. A fair amount of relationship-building work, therefore, happens well before your customers have made a conscious decision to purchase. These early encounters collectively comprise your first loyalty inflection point.

Because these pre-purchase touch points have become so important, traditional loyalty programs that don’t provide insight into evaluation-stage behaviour leave marketers at a decided disadvantage. The good news: Many retailers already have a fair amount of

evaluation-stage data at their disposal. But how do you know which data hold the most insight?

Your challenge is to understand which data points will give you a head start in building loyalty before your customer walks in the door. She may have “liked” your Facebook page, or contacted your call center — but if the data from these channels lie stored in disparate silos within your organization, then you’re missing key puzzle pieces that can help you assemble a complete picture of customer potential. Here are two first steps to leverage that data to build loyalty:

> Break down the silos. Virtual retailers such as Amazon have been linking evaluation-stage data points to customer purchase data for years. Thanks to web analytics, online retailers can link data from

web searches, site page views, and abandoned shopping carts to serve up relevant offers and emails to consumers, their response to which signals their intent to purchase. Fortunately, next-generation loyalty software platforms now give multichannel retailers the same opportunity to break down the data silos.

> Leverage predictive analytics. By looking at the historical behaviour of current best customers — first point of contact, pages viewed, Facebook posts “liked,” offers clicked on, etc. — you can become adept at understanding which real-time behaviours are most predictive of future relationship value. Predictive models fine-tuned to your business can now identify loyal customers — sometimes before they even know they’re loyal.

I: BEFORE SHE WALKS IN THE DOOR

II: AT THE FIRST SIGN OF TROUBLE

Every fledgling relationship hits a few early snags. Time-starved customers are distracted in-store by a rival offer received via mobile device. An early customer service interaction goes awry. Retail showroomers find a lower price online and walk out of your store. By leveraging interaction data, you can identify and act on these inflection points with relationship-saving tactics.

A recent report from consulting firm Accenture highlights the challenge. The report claims that “companies are losing loyal customers at an alarming rate because of poor customer service and rewards.” Clearly employee engagement matters more than ever before. Nearly 85 percent of surveyed customers feel companies could do more to retain their loyalty. Sixty-nine percent would have stayed loyal if the company had resolved a customer service problem upon their first contact, while 55 percent would have

remained loyal had the company offered them preferential treatment and rewards.

An Aimia retail research study conducted in Canada in early 2013 revealed that certain factors can play more of an influencing role than others in driving successive switching behaviour. The top three factors driving switching behaviour were price, product quality, and location. These top factors were consistent for individuals who switched main retailer(s) in a given category and those individuals who remained loyal to their main retailer. However, the study did highlight that for individuals showing a propensity to switch their main retail store multiple times, customer experience factors, like staff quality and store location, begin to hold similar importance in driving these “high switchers” to shop elsewhere.

How can you leverage data and insight to smooth out these rough patches? Here’s how:

> Leverage data to improve service. Through loyalty analytics, you can identify current and potential best customers. By funnelling this insight to your frontline customer service channels, you can flag these best customers for preferential treatment, more liberal return policies, and recognition.

> Embrace in-store mobile activity. Combat showrooming by embracing showroomers. Techniques such as location-based offers, geo-fencing, and smartphone apps allow you to connect in real time when a customer is in the aisle contemplating a purchase and allows them to pull up offers for themselves. Retailers such as Kohl’s, Target, Debenhams, John Lewis, and Gap have installed free Wi-Fi in their stores. At Target, customers can now access the chain’s mobile app to redeem coupons and scan QR codes throughout its stores.


MOBILEBeing with the

customer, wherever and whenever

INTERACTION CENTRICITYRecognize and

respond to every interaction,

not just the transaction

SCALEAllowing for breadth

and depth across every customer

touch point

REAL-TIMEShortening time between action

and reaction

SOCIALCreating social

currency, not just a points currency

CREATING THE RIGHT CUSTOMER

EXPERIENCETechnology represents the floor

of your marketing potential, rather than the ceiling

MOBILEBe with the

customer, wherever and whenever

INTERACTION CENTRICITYRecognize and

respond to interactions, not just transactions

SCALEBuild loyalty solutions that

grow with your customer base

ACHIEVEMENTDeconstruct

individual behaviours to provide individual

recognition

REAL TIMEShorten time

between actions and reactions

SOCIALCreate social

currency, not just a points currency

CREATE THE RIGHT CUSTOMER

EXPERIENCETechnology represents the foundation of your

marketing potential




III: DURING A LIFE CHANGE

Retail analytics have become so sophisticated that retailers can often anticipate major events in their customers’ lives — a pregnancy, a marriage, the purchase of a new home — with uncanny precision. Sometimes we even know more about our customers than they might want us to. As marketers, our task is to wield these tools to build relationships with the building blocks of trust, commitment, and reciprocity.

> Aimia’s Canadian retail research evaluated a cross-section of life events that were either within individuals’ control to initiate (i.e. home renovation, exercise/diet program, etc.) or outside of the individual’s control (i.e. death, injury, etc.). Overall, nearly three out of every five life events (59%) were found to be within the control of the individual to initiate the experience. Those events that precipitated a higher

likelihood to switch retailers were most often within the consumers’ control.

Here are a few tips to influence these life events:

> Counter-program against the offer blitz. If you’re not ready to invest heavily in new data sources, you can always take advantage of the data you already have. A DIY retailer, for example, may have a pretty good handle on which of its customers have purchased a new home. But rather than contribute to the blizzard of offers with which new homeowners are inundated, why not send an offer for gardening supplies the following spring — when many new homeowners invest in landscaping?

> Help them navigate the journey. Customers who do volunteer life-change information derive the

most value when you use these data to help them navigate specific stages of the journey. The Pampers “Gifts to Grow” reward program, for example, provides multiple points of engagement for expectant and new mothers who join the program. Through data analysis, P&G has identified key inflection points within the motherhood journey where the company can help a new mother with information, education, and offers that are about more than diapers and wipes — she receives information about making the right decisions for her family.

These examples are simple, yet powerful, loyalty-building tools that help marketers build relationships based on mutual expectations of value. By demonstrating commitment to the customer journey, you can build brand loyalty that lasts well beyond the customer’s initial entry into a new life stage.

The modern loyalty program is arguably the most effective means to build relationships with loyal customers through the exchange of value for information in an environment of permission and trust. When you invite a customer to join your loyalty program, you must execute this inflection point flawlessly — if the experience is cumbersome, or if you fail to deliver on promised value, then the relationship might take a permanent turn for the worse.

Loyalty programs typically fail when the operator assumes that the loyalty journey ends when the customer joins, and that offering a basic point-per-dollar or flat discount reward, with no further

effort to build value and relevance into the program, is sufficient to maintain loyalty. Avoid dropping the ball with this inflection point by considering the following tips:

> Make joining seamless. Jimmy Buffett’s Margaritaville Casino & Restaurant in Biloxi, Mississippi, for example, equips employees with iPhones and iPod Touches so they can sign up new guests for the Players Club reward program right on the casino floor, instead of having customers wait in line at a central program desk. This tactic allows employees to interact with customers — and gives customers more time to spend on the gaming floor. Guests can also start using their cards immediately, which translates into

more immediate customer data flowing into the business.

> Demonstrate immediate value. Aimia’s research into the Millennial generation reveals that Generation Y holds high expectations for instant gratification from reward programs. That expectation doesn’t mean you have to fund expensive rewards for new members. But it does mean your program will need to incorporate engagement tactics such as gamification and social media channels. It also means you’ll need to focus on that most underserved element of program value — offer relevance. By demonstrating relevance early in the program, you can satisfy Millennial value expectations without breaking the bank.

IV: WHEN SHE JOINS YOUR LOYALTY PROGRAM


MILLENNIAL REWARDSThe key difference between Millennial loyalty program participation and participation by older consumers: Millennials expect immediate gratification and transparent value from your program. These expectations will require marketers to reinvent programs in traditional sectors. Data from Aimia’s U.S. Millennial Survey, 2011.

Q: How long should it take to earn a reward?

PLAYING THE GAME: Millennials play the loyalty game to win…

So they expect programs to be free, fast, and relevant…

Q: Top program sectors:

And they’re open to more non-traditional rewards.

66%55%

44%36%

42%50%

40%37%

83% 85%

9% 5%

43%35 13 9 28 21 9

41%

Millennials Non-Millennials




Q: Are you a member of a loyalty program? (yes)

77% 82%

Millennials Non-Millennials< month

< 3 months

< 6 months

< 1 year

It’s free to join: Rewards can be earned quickly: Rewards are relevant to my life:

It’s easy to join and participate in:25%20%

19%18%

9%11%

Exciting rewards such as trips, etc.: It’s a company I feel loyal to:

It’s connected to a social cause:

Groceries Retail

44%

Restaurant

21% 23%Travel Online Shopping

50%

22% 20%

Entertainment

admit one

56%

25%

26%

69%

45%

18%

Credit/Debit

45% 55%

Cash Back

$

$

6% 8%Charity

$

$

22% 18%

Entertainment

admit one

35% 42%

Discount Coupons

47% OFF

12% 6%

Fashion

1% 1%

Mobile Downloads

19% 35%Travel

80% 80%Gift Cards

VIP Access

10% 4%Music

Q: Top reason to join a reward program:

Q: Preferred reward categories:

24% 15%

Home Electronics




V: AT THE FIRST SIGN OF LIFE

Experienced loyalty marketers know that early signs of program engagement can be highly predictive of future customer value. Conversely, poor communication or lack of reinforcement of early, positive signs of interest can derail a promising relationship. Ensure the formation of long-term, profitable relationships with your best customers by acting on insight from these early loyalty program interactions to reinforce desired behaviour and enhance the customer experience.

Sometimes, the simple things can be the most effective — say, when a member earns program currency for the first time, and you send an email to thank and congratulate her right away, in the moment. Or perhaps you reinforce the value of connecting her Facebook account to the program with a surprise-and-delight benefit. By rewarding these early signs

Reward redemption is the heart of the customer loyalty experience. It’s the inflection point at which your program proves its value, and loyalty marketers know that multiple redemptions are a demonstrable indicator of increased customer value. While short-term financial concerns might lead the unwise to discourage redemptions in favour of increasing program breakage, we must resist the urge — in fact, Aimia research demonstrates that customers who redeem at least three times maintain higher spending and greater lifetime customer value. And the customer insight you gain from redemption data drives even greater value throughout the enterprise.

The trick today is to encourage redemption without breaking the bank. To receive the full benefit of increased loyalty through the

of life with positive, responsive reinforcement, you can lay the foundation for enduring relationships.

To get started, consider these best practices:

> Supplement with soft benefits. Program disengagement often occurs when members don’t feel they’re earning hard currency benefits quickly enough to make a difference. Engage these customers with early-stage soft benefits that reinforce program value for high-potential customers who have yet to shift spend. For instance, U.S.-based hotelier Lexington by Vantage Hospitality Group, rewards leisure travelers in its points-based reward program with such immediate benefits as free upgrades, late check-out privileges, and discount car rentals.

redemption experience, incorporate these best practices:

> Deliver a flawless redemption experience. One certain way to damage relationship value is to fumble reward fulfilment — particularly during a member’s first redemption experience, when her expectations are high. From the software that deducts the points from her account, to the email that confirms her order has shipped, to the delivery method you choose to fulfil the order, every step of the redemption process must proceed without a hitch. Should the process break down at any point on the fulfilment chain, apologize immediately and fix the problem. Each successful redemption reinforces relationship value and increases loyalty.

> Personalize as quickly as possible. Savvy loyalty marketers now leverage loyalty data as early in the relationship as they can to personalize the customer experience. Transactional data is useful for more than just rewarding points — you can leverage it to provide personalized offers, enable preferences, and even derive early segmentation benefits. U.S.-based luxury hotel chain Kimpton Hotels & Resorts, for example, personalizes the experience of its loyalty program members when they hit specific eligibility milestones: Threshold-reaching members can request their favourite snacks, receive upgrades to preferred room types, and earn surprise gifts. UAE-based airline Emirates captures passenger preferences like favourite beverages and uses this information to ensure that on future journeys, business class seats are decked out with preferred drinks.

> Add value through partnerships. A sound partner strategy can enhance redemption value on both sides of the program experience. On the earn side, partnerships increase earn velocity while helping you control costs. My Starbucks Rewards, for example, has expanded earning opportunities to grocery store purchases of Starbucks products as well as purchases at Starbucks-owned Teavana stores — a change expected to double program membership. On the burn side, coalition loyalty programs like Aeroplan in Canada and Nectar in the United Kingdom (both programs operated by Aimia) offer a variety of redemption partnerships that expand member opportunities and increase program value.

VI: DURING PROGRAM REDEMPTIONS


*84% of members are likely to choose a retailer over its competitor if they are

members of the retailer’s loyalty program.

78%of U.S. Millennials are more

likely to choose a brand that offers a loyalty program

— Aimia 2011 Millennial Study

74%of UK Millennials are more

likely to choose a brand that offers a loyalty program

— Aimia 2011 Millennial Study

Share shift can increase by

20-25% for brands after implementing

a loyalty program

— Aimia proprietary program data,

2009-2013

A loyalty program can improve customer

acquisition by

5-10%— Aimia proprietary

program data, 2009-2013

Loyalty programs influence

84% of U.S. members*

— ACI Worldwide Study, January 2012




VII: DURING MAKE-GOOD OPPORTUNITIES

VIII: WHEN YOU EXCEED EXPECTATIONS

Of failure, Henry David Thoreau once wrote, “If we will be quiet and ready enough, we shall find compensation in every disappointment.” For every company, failure to deliver a flawless customer experience is inevitable — what counts is how we react to that failure, what we do to rectify it for the customer, and what we learn from it. That our flaws are often now broadcast to the world via the bullhorn of social media makes our recovery from failure exponentially more challenging — but those same channels also provide opportunity to highlight your strengths.

If the flip side of every problem is an opportunity, then you won’t want to miss the chance to take advantage of the loyalty-building potential of make-good moments. A recent RightNow Customer Experience Impact Report found that 89 percent of consumers began doing business

Customers are so well trained by experience to expect the bare minimum in service and attention that even modest efforts to exceed baseline expectations can pay dividends in customer loyalty. Best practice dictates that you provide basic, quality service to all customers and reserve high-touch service opportunities for high-value customers. But how do you recognize best customers when they walk into your store, call in, or complain on your Facebook page? That’s where customer data and insight can spell the difference.

The ultimate winners in the marathon race for customer loyalty will be those marketers who develop a holistic, analytical view of customer relationships by linking data from loyalty, CRM, web, social, and mobile

with a competitor following a poor customer experience, but 92 percent of the same group said they would be willing to return to a company after a negative experience if they got an apology.

To turn customer service lemons into loyalty lemonade, consider these best practices:

> Develop a 360-degree customer view. Your challenge in resolving service issues in real time is to connect your customer service, communication, and loyalty touch points on the back end. If one team manages customer complaints, while another team monitors social media, while still another manages loyalty program and CRM data, you end up with a Rashomon-like view of the customer relationship, with no one able to identify or distinguish high-value relationships

channels. But if that blessed day has not yet arrived, you can take smaller, immediate steps to improve baseline customer service, as well as provide opportunities to exceed best customer expectations:

> Deploy the right tools. U.S.-based home improvement retailer Lowe’s recently outfitted its 1,700+ stores with Wi-Fi and iPhones for associates to improve in-store service by, for example, helping customers search for products online and buy them on the spot. Associates can also cross-reference answers to questions posted to the retailer’s Facebook and Pinterest pages with links back to the company’s website to provide cost estimates and product numbers. As well, UK-based British Airways recently deployed 2,000 iPads for

that require extra care. Tearing down these data silos is the great marketing challenge of our time.

> Use the loyalty program as brand insulation. The reward and recognition tools inherent in your loyalty program provide powerful relationship insulation. If a service issue disgruntles a premium member, a bonus point offer or a surprise-and-delight benefit can quickly assuage bruised feelings. Amsterdam-based KLM Royal Dutch Airlines does a nice job of using surprise-and-delight techniques based on life events learned via social channels to make sure it manages its customers’ experiences. For new customers, auto-enrolment in your program with an immediate earning bonus can also soothe perceived injuries.

data capture. The airline said the biggest benefit was just having customer information in hand and being able to offer local travel tips and advice to passengers on select long-haul flights.

> Refocus on the customer. Lowe’s rival, U.S.-based retailer Home Depot, is famously returning to its roots as a customer-centric enterprise. For instance, the retailer has recently expanded its “Customers First” initiative to include “Power Hours” where associates focus on in-aisle customer service during high-traffic times. The retailer is also training associates to analyze customers’ shopping carts to suggest missing products required to complete a home improvement task.


CONNECTING THE DATA DOTS

Modern loyalty systems must allow for the capture of brand interactions

throughout the purchase cycle —

before, during, and after the transaction

Link social data to reward and recognize

brand interactions, likes, and referrals

Reward and recognize customers to encourage

them to provide data, link data sources, and identify themselves during transactions

Link search data to provide targeted,

relevant offers

Link loyalty program data to connect insight

to transactions

Link location data to encourage time shift, cross-sell, and up-sell




X: WHEN SHE SINGS YOUR PRAISES

IX: WHEN YOU ANTICIPATE HER NEEDS

Steve Jobs once reportedly said of Apple customers, “People don’t know what they want until you give it to them.” To deliver a flawless customer experience, the brass ring is the ability to use customer data, multichannel communications, and predictive analytics to send a relevant offer or fulfil a customer’s need before she’s even aware that her need is unfulfiled. With today’s modern loyalty technology and analytic platforms, that brass ring is within reach. But if your touch points can’t talk to each other, then this promise may go unrealized.

Nurturing loyalty requires rewarding and recognizing best customers, anticipating their needs, and guiding

If there is a holy grail for marketers, it’s that moment when a best customer becomes your vocal advocate. Whether she gives you a glowing review on a social network, tweets about a great experience, or forwards a new product offer to her inner circle, her advocacy exponentially increases the value of the relationship. With the right technology, you can identify, reward, and recognize these customer advocates and reap the benefits. Not all best customers are vocal advocates — but all vocal advocates are potentially best customers.

In fact, in Aimia’s Canadian retail research, 39 percent of “high switchers” liked a brand on Facebook, which is 2.6 times higher than that of consumers loyal to their retailer. As well, they are 3.5 times more likely to tweet about a brand and 2.4 times more likely to comment on Facebook.

them through a relevant, personalized customer journey. But even if your marketing resources and technology are not yet at the level required to deliver real-time offers based on sophisticated predictive models, there are still relatively simple steps you can take to anticipate and fulfil your customers’ needs. Here are two:

> Help your channels talk to each other. Even with today’s web-enabled commerce, call centers are still critical customer touch points. But very often, call center staff can’t see what offers the customer has received or responded to — which can lead to conflicting or duplicative communications. Providing your

Creating advocacy requires more than just raising your aggregate Net Promoter Score. It requires the ability to connect the data dots from your social media and web channels to your core purchase data. It also requires the analytical ability to understand which of your advocates are really impacting your bottom line, and the means to reward them accordingly. And finally, it requires seamless, multichannel communications that send the right messages to the right customers through the right channels. Here are a few other ways you can help foster customer advocacy:

> Exploit the network effect. Customer networks become more valuable when you give customers a platform to talk to each other, as well as to you. For example, Walmart flies a handpicked, exclusive club of 20 influential bloggers dubbed the “Walmart Moms” to its Bentonville, Arkansas headquarters to test new products.

call center staff with customer profiles allows them to reinforce existing offers or make the next offer — leading to additional sales and a better customer experience.

> Practice surprise and delight. U.S. online retailer Zappos is famous for its surprise-and-delight customer experience efforts, such as upgrading a percentage of first-time purchasers to overnight shipping as a way to reinforce relationship value. Adopt these tactics with high-value customers to create personal, emotional connections. The bonds you create will demonstrate commitment and fuel both trust and reciprocity in your customer relationships.

The retailer also hosts a blog and YouTube channel especially for them. By providing these platforms for mutual interaction, Walmart makes these customer relationships more valuable — both to the retailer, and to the Walmart Moms.

> Give advocates a seat at the table. In 2011, Google held its inaugural Global Top Contributors Summit at its Mountain View, California headquarters. These Top Contributors are not Google employees, but rather Google advocates — in this case, unpaid product forum participants. Google rewarded them for their loyalty, sought their feedback, and offered educational resources to help them become better advocates. Toy manufacturer Lego has even turned some fanatical Lego customers into paid employees who evangelize about Lego and help design new product lines.


567

32 41

9 108

AT THE FIRST SIGN OF LIFE

Reward early signs of relationship engagement with

positive reinforcement.

DURING PROGRAM REDEMPTIONS

Deliver a flawless redemption experience

and add value through partnerships.

DURING MAKE-GOOD OPPORTUNITIES

Connect your touch points to

resolve service issues across channels.

WHEN YOU ANTICIPATE HER NEEDS

Distribute customer profiles across service channels to fulfil a need before she’s even aware

that her need is unfulfiled.

WHEN SHE SINGS YOUR PRAISES

To foster advocates, give best customers a voice and a seat

at the table.

SEIZING THE MOMENTSThese 10 inflection points mark the most critical stages in a customer’s journey from newly acquired to brand advocate. By deploying loyalty systems, analytical tools, and best practices, you can ensure deeper relationships, enhanced loyalty, and greater lifetime value.

BEFORE SHE WALKS IN THE DOOR

Break down the data silos and leverage

analytics to identify high-potential customers.

DURING A LIFE CHANGE

Deliver personalized, relevant offers to help her navigate

the journey.

AT THE FIRST SIGN OF TROUBLE

Use customer data and in-store

technology to improve service.

WHEN SHE JOINS YOUR LOYALTY PROGRAM

Make enrolment seamless and

demonstrate immediate program value.

WHEN YOU EXCEED EXPECTATIONS

Deploy the right tools and training to go above and beyond for best customers.




ABOUT THE AUTHORS

Cindy Faust, Vice President, Product Management

Cindy Faust drives strategy, development, and revenue of new and existing products to help position our clients for success. She is responsible for setting the strategic direction of product development based on client and market needs, and works in close collaboration with our clients and all areas of the Aimia business, both in the U.S. and globally.

Prior to her current role, she was VP, Loyalty Technology Services, aligning information technology design and delivery with other Aimia capabilities to create fully integrated customer and business loyalty marketing programs. Before this, she was Senior Director, Technology Services, delivering consumer

loyalty technical solutions for clients in the financial services, travel and hospitality, retail, CPG and telecom industries. She joined the company in 2005 with a main focus on business development for new loyalty programs.

Prior to joining Aimia, Cindy held various IT leadership positions with Carlson Companies and GE Capital ITS. She started her career at Entex Technical Solutions as a consultant on the American Express account.

Cindy is a member of the IT Service Management Forum and is a Menttium alumna. She earned various collegiate degrees including an MBA from the University of Minnesota’s Carlson School of Management. In addition, Cindy was a contributing author for the IHRIM Shared Services book, Transforming the Organizational Mindset to Embrace Shared Services.

Paul Sage, Product Management Director, Loyalty Management Systems — U.S.

Paul Sage is responsible for product strategy and positioning of Aimia’s Loyalty Platform within the U.S. region. Paul coordinates client collaboration, market analysis, and industry leader feedback to inform the global product development of requirements for ongoing investments in the Loyalty Platform. His responsibilities extend to delivering sales tools, product management processes, content, and positioning for all aspects of the product.

Prior to his current role, Paul managed the IT architecture and consulting team in the U.S. region. As part of his responsibilities, he repositioned the team to a product strategy and sales engineering team which secured and

brought on board three fully integrated loyalty programs in CPG and retail during 2011/12.

Prior to Aimia, Paul was on the board of a UK social enterprise organization supporting NGOs, charities and not-for-profits in their efforts to leverage social media to drive donations and communications. As well, Paul is owner of a UK marketing consultancy firm specializing in securing government digital presences.

With two decades of international experience Paul has worked extensively with marketing services and data analytics organizations in the United Kingdom, United States and Asia for clients in oil and gas, financial services, retail, high tech, government, non-profit and CPG verticals.

About Aimia

Aimia Inc. (“Aimia”) is a global leader in loyalty management. Employing more than 4,000 people in over 20 countries worldwide, Aimia offers clients, partners, and members proven expertise in launching and managing coalition loyalty programs, delivering proprietary loyalty services, creating value through loyalty analytics, and driving innovation in the emerging digital, mobile, and social communications spaces. Aimia owns and operates Aeroplan, Canada’s premier coalition loyalty program, Nectar, the United Kingdom’s largest coalition loyalty program and Nectar Italia, Italy’s first independent loyalty coalition program. In addition, Aimia owns stakes in Air Miles Middle East, Mexico’s leading coalition loyalty program, Club Premier, Brazil’s Prismah Fidelidade, and i2c, a joint venture with Sainsbury’s offering insight and data analytics services in the UK to retailers and suppliers. Aimia also holds a minority position in Cardlytics, a U.S.-based private company operating in transaction-driven marketing for electronic banking. Aimia is listed on the Toronto Stock Exchange (TSX: AIM).

Visit us at www.aimia.com.


SAMPLE OUR BRAIN FOOD.Sample some of our loyalty thought leadership in the Knowledge section at aimia.com.

THE FOUR FUTURES: The Digital Loyalty Survey By Martin Hayward, Vice President, Global Digital Strategy

To help marketers divine the proper strategy for navigating the digital future, Aimia has conducted a research study designed to understand consumers’ current attitudes and opinions about data sharing and control, the role of digital media in their lives, and about the nature and frequency of digital marketing communications. We found that marketing success in the digital future will depend upon how well marketers use data to build relationships dependent on two primary variables: the degree of engagement, and the degree of consumer control over their personal information.

THE RISE OF THE SAVVY SHOPPER: The Impact of the Recession on Customer Loyalty By Maria Sealy, Director of Research Services

The recession may be over, but its impact still reverberates everywhere. From the corner shop to the high street or shopping mall. Despite the stark headlines, however, the news isn’t all bad. Even as the going has gotten tougher, some brands have risen to the challenge and built loyalty around customer experiences, redemption touchpoints and the value exchange.

THROWING OFF SPARKS : Reigniting Retail Loyalty Programs By Alan Goldstein, Vice President, Managing Director

Retailers attract loyal customers based on the quality of their products, a positive customer experience, and competitive prices. Loyal customers respond by buying more, buying more often, and telling their friends. To reach your relationship potential with your best customers, you must reignite your customer strategy — and fan the flames continuously — through data-driven marketing, a robust value proposition, and dynamic customer segmentation. It’s the best way to keep the sparks flying.

MOVING PICTURES: The Future of Customer Loyalty in Canada By Kevin O’Brien, Chief Commercial Officer, Aeroplan and Michael O’Sullivan, President Proprietary Loyalty, Canada

While portraits of customer behaviour used to be static, they’re now moving targets which scroll into the past like social media news feeds. Loyalty marketing offers the best set of tools available for capturing these moving pictures.





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Marketing

Inflection points: Seizing the Moments in Customer Loyalty