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What's trending in loyalty?

The 2015 Loyalty Report saw an increasing number of people opt-in to a variety of loyalty programs in the past year, and revealed the extent to which programs are effective in influencing customer behavior show no signs of diminishing.

What are the implications of the Plenti launch on May 4th? While the U.S. marketplace has distinct differences compared to other countries where coalition models thrive, one can suspect a lot of attention against this landmark initiative. Coalition, by design, has an inherent power of helping partners acquire new customers by harnessing each brand’s customer pool. It can also move market share away from retailers with standalone programs, as customers tend to gravitate toward programs that alleviate the need to carry multiple cards, and collect multiple currencies. Last, but not least, coalition tends to accelerate members’ currency-earning power by getting them to their rewards quicker.

American Express shook up the loyalty landscape last month when it announced the launch of Plenti, a coalition loyalty program that allows members to earn and redeem points with various brands—including Macy’s, Rite Aid, Nationwide, and AT&T.

This is significant because the US has traditionally been unfriendly territory when it comes to coalition loyalty. Let’s examine some of the biggest obstacles standing in the way of coalition loyalty and why it hasn’t taken off in the US.

This past Wednesday, American Express made an historic U.S. customer loyalty announcement revealing that it is launching a coalition loyalty program called Plenti in the U.S. this coming May. Why was this announcement so historic? Well for one thing, coalition loyalty has thrived for decades in other parts of the world, including Germany, the UK, the Middle East, New Zealand, and just north of the U.S. boarder in Canada. Strangely enough, it has never really caught on here in the U.S.

Why the best forms of loyalty don’t look anything like loyalty.

There are two kinds of people in this world: those who blindly recite their contact information when retailers ask them for their email or phone number, and those who refuse to give up the goods.

On a recent trip to Lululemon, I was amused when my wife was asked for her contact info at the checkout. “Why do you need that?” she asked the eager yogi behind the counter. She was told it makes it easier for her to return or exchange her purchase—even if she lost the receipt. Well, she declined without batting an eye, leaving me to wonder why a brand that makes and sells its own apparel would choose such a bland and inflexible benefit to get customers to self-identify.

But I digress.

How your smart home thermostat controls more than just the temperature.

Think loyalty programs are confined to the plastic cards in your purse or wallet? Or that loyalty is less about the love you have for a brand and more about the point or perk attached to an airline or credit card?

Those points and rewards have been carefully designed to coerce you to choose to shop at specific retailers, increase your basket size, and make you feel like you need to do it all more frequently, consistently, and…automatically. 

Over the last few months, fraud prevention and detection have been coming up to a greater extent with clients. As consumers become savvier, this becomes an ever-increasing challenge. So, if you’re launching a loyalty program, here are two questions you’ll need to think about:

What measures can be put in place to prevent fraudulent activity?  

And knowing that you’ll never be able to think of everything, what can be put in place to detect or alert you to fraudulent activity?

Loyalty is a hot topic today for brands that are looking to differentiate themselves from the competition. But, many brands are unsure how to approach loyalty beyond a rewards card or timely discount. The Loyalty Report, which surveyed over 6,000 consumers on over 160 loyalty programs, captured key insights about consumer attitudes, behaviors and interactions with brands. Though the report is rich with insights and trends, here are the top 10 takeaways from the 2014 Loyalty Report.

As a loyal Timmies coffee drinker, I was delighted to hear that Tim Hortons had launched an “official” loyalty program; I was finally going to get a reward beyond that early-morning “ahhhh” of my first sip.

The new Double Double card has some interesting things to offer: unique technology, no fee and an easy to understand 1% back in Tim Cash. Its low household income requirement – and student card option – makes the card highly appealing to those who wouldn’t qualify for premium credit card rewards programs. As an initial foray into loyalty, this card is an excellent way for Tim Hortons to capture some data, learn about shopping patterns and spending distribution and test some targeted marketing programs. I look forward to seeing Tims broaden its loyalty offering down the road to engage more of its customers – those who are already committed to their chosen payment methods.

When many people think of loyalty programs, points cards and coupons, they think of retail department stores. This is because many consumers’ first interactions with loyalty and rewards are in the form of a store credit card or in-store rewards card. Kohl’s, a large department chain retailer that has over 1,160 stores nationwide and with JCPenney, Macy’s and Nordstrom, is known for its competitive pricing and cause-centered fundraising with Kohl’s Cares.