Kobie Quarterly Review: Restaurant and Retail Edition - 2014 - Learn More at Kobie.com

KOBIE
QUARTERLY
REVIEWJULY 2014
on.fb.me/17n5zxV @Kobie_Marketing linkedin.com/company/kobie-marketing
kobie.com
21
THE TRUTH ABOUT LOYALTY
PROGRAMS & MOBILE APPS
18
HOW RESTAURANTS ARE
INTEGRATING LOYALTY
PROGRAMS
08
RESTAURANT & RETAIL
LOYALTY: WHAT’S
HAPPENING IN 2014?
&
RESTAURANT &
RETAIL EDITION

KOBIE QUARTERLY REVIEW 3
FEATURED CONTENTS
With change being the only con-
stant in business today, loyalty
08
RESTAURANT & RETAIL LOYALTY:
WHAT’S HAPPENING IN 2014?
When it comes to developing true
customer loyalty, restaurant operators
and retailers must learn how to engage
with consumers beyond the discounts
and deals dichotomy. Counter to
popular thinking, it’s the relationship
building, not frequency, that’s vital for
loyalty.
18
TABLE TALK: INDUSTRY IN-
SIGHTS INTO HOW RESTAU-
RANTS ARE INTEGRATING LOY-
ALTY PROGRAMS
Separate from other marketing initia-
tives, loyalty programs give restaurant
operators direct insight into what
guests think about their menu items,
staff and overall quality of service.
11
THE SECRET SAUCE IN SUCCESS-
FUL RETAIL AND RESTAURANT
LOYALTY PROGRAMS
Loyalty programs have proven to be
a highly effective way for brands to
increase customer interaction, determine
purchasing preferences and show appre-
ciation to their loyal customer base.
21
PROGRAMS AND MOBILE APPS
If you still think that mobile devices are
just gadgets, think again. They have
become the center of consumers’ daily
lives and how they engage with the
world. And a critical channel for brands
to be a part of those lives, too.
14
THE MILLENNIAL MINDSET
Millennials represent a growing eco-
nomic force for the restaurant and
retail sectors. They might be small in
terms of age, but their future spend-
ing power alone serves up a veritable
goldmine.
05
LOYALTY TRENDS AND INNOVA-
TIONS: IN PERSPECTIVE
With change being the only constant in
business today, loyalty programs (and
their IT teams and designers) are con-
tinuously challenged with adapting and
evolving their programs to anticipate
and keep up with consumer, commerce
and technology trends.

KOBIE QUARTERLY REVIEW4
Over the past decade, several major factors have significantly disrupted the retail and
restaurant industries: including the evolution of eCommerce, the rise of social media, and
most significantly, mobile devices and the broader mobile channel. All of these channels
– as well as the insights into consumer behaviors they provide – have influenced loyalty
marketers and the way they design their campaigns and programs.
Examining the restaurant and retail sectors specifically, two industries that were already
heavily social, these trends have created more opportunities for increased customer
engagement through social media channels, location-based messaging, gamification and
innovative rewards structures. And, with digital and mobile playing an integral part in
consumer purchasing decisions, omnichannel loyalty is shaping the consumer experience.
According to a recent report by MIT, 80% of shoppers check prices online before making a purchase, 1.1 trillion in-store
sales are influenced by the web, $12 billion in retail sales are made on mobile devices and $252 billion in revenue results
from online shopping.
Other key trends include Millennials, the generation of younger consumers whose lives are driven by technology. Spend-
ing a collective $600 billion in-store and online each year, marketers are using trends in technology to capture their
attention. With innovations like Google Glass and the SmartWatch becoming part of Millennials’ daily wardrobe, analysts
predict that wearable technology sales will reach 90 million units in 2014 and more than 485 million by 2018.
Looking back (and ahead), other technologies have taken what was once a predominately brick-and-mortar shopping or
dining experience and transformed them into a virtual experience heavily controlled by the consumer. A large factor in
this change is the mobile device, now ubiquitous across every demographic and consumer spending category. A recent
Forrester report predicts that more consumers will be using m-payments, or paying using their mobile device, in 2014.
These mobile payments are expected to grow by 43% each year, bringing in an anticipated $90 billion by 2018.
In this Kobie Quarterly Review: Restaurant and Retail Edition, our goal is to educate those responsible for developing
and running loyalty programs about the trends impacting loyalty today, with a focus on retail loyalty trends and the
innovations, challenges and opportunities facing restaurant customer loyalty and rewards programs. Within these two
industries, we highlight successful programs and the methodology behind them; looking at the impact of Millennial
shoppers and diners and how they are slowly creating a societal shift in loyalty and consumerism.
Taking all that we’ve seen and learned so far this year, as loyalty marketers, our collective goal should be to integrate the
most effective technologies, look closely at our program design and think deeply about how well we know our custom-
ers – and if we’re truly rewarding them.
As you read through this report, there is one ultimate truth we hope you take with you: With customer preferences
constantly in flux, and today’s technology becoming tomorrow’s news, loyalty marketers should understand that real
customer loyalty depends on how willing you are to adapt to the change.
How many changes will you make this year?
Let’s find out.
Michael Hemsey, President
Kobie Marketing
FROM OUR PRESIDENT

By Nancy Berg
Statistics show that existing customers
spend 67% more on a brand than new cus-
tomers. While this shouldn’t be a reason
to ignore new customer acquisition, the
importance of an evolving customer reten-
tion strategy should not be underestimated,
either.
With constant changes in the way business-
es operate, loyalty program organizers are
continually challenged with modifying their
programs to keep with the trends while con-
tinuing to drive value and engagement.
Here are some of the top loyalty program
trends that we’re seeing across major indus-
tries in 2014, and the brands who are apply-
ing them most effectively:
Retail
For retail loyalty programs, 2014 is the year of
the “seamless” transition between brick and
mortar, online and mobile shopping. Today
more than ever, advances in mobile and online
technology make it possible for consumers to
have a complete virtual shopping experience
– one that includes fast and free shipping, re-
turns and exchanges, and the ability to return
online items to the nearest physical location.
To stay ahead of the trends,
Looking at 2014 trends in
the retail, financial, travel,
telecommunications and
entertainment sectors
LOYALTY TRENDS
& INNOVATIONS
IN PERSPECTIVE

more retailers are hosting plat-
forms for mobile loyalty programs
to track customer purchases and
document preferences, facilitating
mobile payments, and using GPS
technology to send relevant offers
to shoppers’ mobile devices. When
tracking these purchases, smart re-
tailers are also using the data they
collect to learn more about individ-
ual customers, offer personalized
shopping recommendations and
ultimately connect with shoppers
in store. Most prevalent in custom-
er loyalty today is the integration
of social media. According to the
Walker Sands’ 2014 Future of Retail
study, 78% of modern consumers
interact with social media channels
like Facebook,
Pinterest and
Twitter to learn
more about
the brand, get
discounts and
special offers,
and read other
customer re-
views.
Success Story:
Amazon.com has mastered the
art of personalized recommenda-
tions with customized pages like
“Related to Items You’ve Viewed,”
“Inspired by Your Shopping Trends”
and “Recommendations for You.”
By doing so, Amazon is capitalizing
on the fact that users are more like-
ly to purchase products based on
relevant offers – a business practice
that has industry experts predicting
Amazon to bring in $100 billion in
revenue in 2014 alone.
Financial Services
Between 2006 and 2012, the finan-
cial services industry witnessed
an increase in loyalty program
membership by 130%. However, as
technology rapidly changes and
Millennials become the future of
this industry’s growth, more loyalty
program participants demand
products and services that coin-
cide with their lifestyle. An esti-
mated 83% of consumers believe
they should be rewarded for their
loyalty to the brand, and 93% want
banks to tailor rewards to their
individual circumstances. In line
with this changing lifestyle, experts
believe that financial services loy-
alty programs in 2014 will continue
to build an omnichannel approach
– integrating more mobile tech-
nology and social media – where
banks can em-
power program
members using
compelling en-
gagements and
personalized
messages sent
through multiple
channels of com-
munication. With
mobile and social
platforms mak-
ing it easy for users to access their
accounts, read member reviews
and deposit money quickly and
easily – and banks giving consum-
ers more incentives to grow their
rewards – banking has become
more practical and efficient than
ever before.
Success Story: The industry con-
tinues to compete aggressively for
new acquisitions—lots of different
sizes and flavors. The Chase Sap-
phire Preferred Card is incentivizing
consumers by giving away 40,000
bonus points for program members
who spend $3,000 on the card
during their first three months.
Chase’s Marriott Rewards Card
offers 1 FREE night plus 70,000
points for members that spend
$2,000 on the card in the first two
months. Citi’s American Airlines
Card offers 50,000 miles for
spending $3,000 in the first three
months. And, American Express is
trumping them all with a 100,000
mile incentive for spending $10,000
on the Business Platinum Card in
the first three months.
Travel
According to recent studies, more
than 238 million U.S. travelers have
travel loyalty program member-
ships. Frequent Flyer programs
built the roadmap for formal loyalty
programs in the early 80’s. They
have a reputation for being some
of the largest and most popular
programs in the industry; and have
long been known for attracting
active and inactive members by
expanding the program with earn/
burn activities that go well beyond
airline trips only, However, only
44% of these consumers are
actively engaged with the program
– and 50% believe they are actually
limiting their value by enrolling in
memberships that only focus on
one airline alliance or hotel chain.
So how is 2014 responding to this
issue? With more Millennials making
up the bulk of travelers, 2014 has
witnessed new loyalty strategies
83%
of
consumers believe
they should be re-
warded for their
loyalty to a brand.
238 million
U.S. Travelers
have travel
loyalty program
memberships.

that incorporate social media,
mobile usage and digital behavior
to gain real insight on consumer
preferences and increase their level
of engagement beyond their flight
or hotel stay. On the burn side,
expanding rewards and promoting
miles/points + cash, such as ‘mix
and match’ rewards, and access to
once in a lifetime experiences con-
tinues to resonate well. And with
25% of airline and hotel program
members begging for rewards they
can actually redeem, 2014 travel
loyalty programs are opting for
flexible points options that keep
Millennials coming back for more.
Success Story: Recognized as a top
hotel program at the 2014 Flyer-
Talk Awards, Starwood’s Preferred
Guest program offers customers
flexibility by allowing members to
transfer rewards to different airlines
and combine points and cash to
book rooms.
Telecom
Whereas restaurant patrons and
retail shoppers can benefit from
incentives that keep them coming
back frequently, telecommunica-
tions loyalty programs have a dif-
ferent challenge. Many customers
sign annual contracts and brands
have less opportunity to grow sales
through increased additional lines,
so programs had to think differ-
ently. Telecom brands have seen
significant success leveraging loyal
customers for referrals through
formal Refer-A-Friend programs.
They also are leveraging technolo-
gy advancements including mobile
integration, cloud computing and
sensing technologies to collect
important data about customers
to drive growth, while social media
outlets serve to connect potential
consumers with brands and offer
incentives to earn loyalty rewards.
Incenting incremental behaviors is
also a rising opportunity for tele-
com loyalty in 2014. As spectrum
constraints impact profitability,
incremental behaviors that drive
revenue and decrease expense,
such as getting the customers to
pay their bills on time or incenting
them to enroll in paperless billing,
has real im-
pact on the
bottom line.
Success
Story: The
popular mo-
bile phone
carrier,
Sprint, used
their Ninja
Ambassador
Program to train 3,000 employees
to reach out to customers through
various social media channels – like
Facebook, Twitter, LinkedIn, You-
Tube, community forums and more
– on pre-selected topics to facili-
tate customer engagement.
Entertainment
For the entertainment industry,
where attendance is less regu-
lar, brand loyalty should focus on
expanding purchasing at the POS.
While many entertainment brands
have focused on new customer
acquisition, more recently they’ve
recognized the importance of
segmenting their customer base
and leveraging ways to retain their
most loyal customers. In 2014,
loyalty program organizers are
curbing these issues by finding
innovative ways to engage mem-
bers through multiple channels –
like mobile apps, smartphones and
gamification – and using collected
data from customer interactions
to gain customer insight. Using
modern technology to promote
benefits, these brands are devel-
oping more relevant offers to send
to program members that are both
attractive and valuable.
Success Story: Disney’s new “Magic
Bands,” computerized wristbands
containing Ra-
dio-frequency
identification
(RFID) technology,
allow team mem-
bers to identify
guest preferences
and personal infor-
mation by scan-
ning their band.
Through this same
technology, visitors
can collect Fastpasses for popular
rides, make payments, order park-
ing passes and access their resort
rooms – data that is all collected –
giving Disney team members more
flexibility to have meaningful inter-
actions with resort and park guests
throughout their stay.
Keeping these trends in mind,
loyalty marketers across all indus-
tries can gauge opportunities for
data collection that can lead to
meaningful customer interactions,
increased consumer trust and in-
fluence purchasing behaviors and
decisions.

As restaurants and retailers seek
out creative ways to deepen en-
gagement with new and existing
customers, the performance of
these brands’ loyalty programs
is being more closely monitored
than ever before. And whether the
goal is to entice patrons to return
to a restaurant or promote the
opening of a new store, for loyalty
programs to deliver on these per-
formance goals in 2014, market-
ers need to move beyond simple
behavior/reward models and strike
a balance between strategy and
the channels they engage custom-
ers on. Finding this balance will
require a deeper understanding of
what customers are looking for, as
well as a broader knowledge of the
loyalty landscape in the restaurant
and retail space.
Research has found that the top
three external marketing priorities
of Chief Marketing Officers in 2014
are customer acquisition, giving
customers a personal experience
and customer engagement. To-
day’s CMOs are also responsible
for revenue growth, adding anoth-
er “bottom-line” priority to their
growing list. And they have to work
more closely with CIOs in order to
ensure their loyalty programs are
seamlessly integrated into other
functions of the organization.
In other words, loyalty programs
are being held to a higher standard,
with technology innovations and
strategy being set as top priorities.
And as CMOs continue to stream-
line their loyalty programs in the
retail and restaurant industries,
there are four themes they should
focus on to increase loyalty growth:
personalization, omnichannel loyal-
ty, mobile integration and integrat-
ed multi-tender loyalty.
Here is a deeper look at some of
the key trends loyalty programs in
the restaurant and retail sector are
utilizing in 2014:
Personalization
While personalizing the loyalty
experience ultimately increases the
chance of driving a positive cus-
tomer response to a campaign or
promotional message, restaurants
and retailers need to make sure
they use personalization selectively.
Marketers need be careful to moni-
tor customer sentiment - especially
for emerging channels like mobile
and social media. Although the
messaging and incentives may be
personalized, excessive use of this
approach can overwhelm consum-
ers, and lose the “personal” experi-
ence that the message was meant
to communicate in the first place.
In 2014, for example, CMOs have
realized that personalization does
not need to be as far reaching as
planned, but only focus on reach-
ing consumers in a way they will
actually respond to. Think about
it. If marketers know a particular
consumer responds best to mobile
interaction, it would be pointless
to personalize their marketing
through direct mailings just be-
cause a similar group of consumers
may have, at one point, respond-
ed positively in that manner. The
challenge, therefore, is to find the
perfect balance between enticing
customers with a personalized
message through their preferred
channel while refraining from be-
coming too invasive.
Omnichannel Loyalty
Personalization goes hand-in-
hand with omnichannel loyalty.
With advancements in technology
powering the way brands connect
with their customers, the expecta-
tions of those shoppers and diners
have also become higher as they
demand relevant information – on
relevant channels. Knowing this,
and recognizing trends in how con-
sumers operate, restaurants and
retailers agree that omnichannel
loyalty gives them a way to reach
consumers in a way that will really
resonate.
Omnichannel loyalty can help to
drive:
• More Connections with Consum-
ers: Today more than ever, customer
shopping and dining has become a
tech-driven experience. Research,
recommendations, reviews and brand
RESTAURANT AND RETAIL
WHAT’S HAPPENING IN 2014?

LOYALTY TRENDS:
interactions can happen digitally, be-
fore consumers even enter a store, and
ultimately affect purchasing decisions.
Modern consumers are technological-
ly savvy shoppers and diners – due,
in part, to the prevalence of smart-
phones, social media, gamification,
GPS technology and big data.
• Real-Time Program Feedback:
Through omnichannel marketing,
restaurant and retailers can capture
data in real-time and use this infor-
mation to entice individual customers
through communication channels they
prefer. By doing so, loyalty program
organizers can tailor messaging to
impact consumers and increase their
chances of gaining a response.
• Smarter Methods for Smarter Cus-
tomer Retention: Omnichannel loyalty
provides customer insights that allows
marketers to leverage real-time data
and in turn build custom rewards
programs that are both timely and
relevant.
Mobile Integration
Mobile continues to be an inte-
gral part of restaurant and retail
loyalty programs and marketing
campaigns – and if the rate of cus-
tomer adoption is any indication,
the importance of mobile strate-
gy shows no sign of diminishing
anytime soon. For loyalty programs
in the restaurant and retail space,
mobile technology is essential to
maintaining an engaged and active
customer base, giving CMOs one of
the most direct channels in which
to interact with their customers
and gain real-time insights.
In recent years, the prevalence
of mobile devices has paved the
way for mobile wallets. Allowing
customers to make secure in store
payments, without needing a credit
or debit card, mobile wallets are
making consumer purchasing eas-
ier and more convenient than ever
before. For loyalty programs, this
puts all of a customer’s information
at their fingertips – like rewards
statistics, payment information and
credit card data – using nothing
more than the consumer’s personal
smartphone. According to recent
studies, 43% of all smartphone
users, nearly 113 million consum-
ers, will use mobile wallets
by 2017. If they don’t
fit already, current
loyalty programs are
being formatted to
be able to integrate
with mobile payment
platforms for future
customers.
Due to the rise of interactive mo-
bile technology, gamification has
become a popular way for busi-
nesses to keep consumers actively
engaged and entertained. Giving
customers the opportunity to earn
points and redeem rewards for
purchases or free items, gamifica-
tion is all about making the most of
modern technology. It adds a level
of competitiveness to the loyalty
experience and by embedding
games into the loyalty program,
gamification creates a loyalty envi-
ronment where members are chal-
lenged, incentivized and engaged
in a way that brings a level of fun
and entertainment to a program.
Integrated Multi-
Tender Loyalty (IMTL)
As today’s CMOs are increasingly
more responsible for the revenues
of a brand, integrated multi-tender
loyalty (IMTL) presents an ideal
opportunity to bring together a
retailer’s credit card and loyalty
program; which oftentimes existed
in parallels or competed with each
other.
Historically, loyalty
programs and retail
credit programs were
executed as sepa-
rate customer-facing
programs, with little
to no integration. Many
retailers struggled with a
lack of unified loyalty branding
and seamless integration between
multi-tender and credit programs,
often resulting in confusion among
associates and customers...and
lower engagement levels. IMTL
brings an integrated approach that
delivers one seamless experience
to engage all customers - regard-
less if it’s through credit.
By Mary Falleson
43%
of smartphone
users will use
mobile wallet
by 2017

Furthermore, it provides retailers
with a new way of getting to know
their customers better and building
stronger and more profitable long-
term relationships by combining
multiple CRM, credit and loyalty
program platforms into a single
integrated data warehouse. This
means that decisions on all tenders
(payment types) are reflected in
one place.
With customization and personal-
ization being critical to the success
of today’s loyalty programs, ITML’s
approach provides retailers with
more information about the wants
and needs of all customers. This
creates value for members by using
data to deliver personalized offers
that create the right emotional
connection, leading to more op-
portunities for those customers to
earn and redeem in an omnichannel
manner.
With a renewed focus on ROI and
revenues, CMOs who capitalize on
these trends will be the differenti-
ator for a high preforming loyalty
program in 2014. There are more
consumers enrolling in loyalty
programs today than ever before
and the retail sector owns 39% of
those memberships. CMOs that
embrace the advancements in per-
sonalization, omnichannel loyalty,
mobile integration and integrated
multi-tender loyalty are ensuring
a deeper level of engagement and
an enriched member experience
for years to come.

THE SECRET SAUCE:
SUCCESSFUL RETAIL
AND RESTAURANT
LOYALTY PROGRAMS
Two case studies that demonstrate
how loyalty programs can be used to
influence customer behaviors
By Bram
Hechtkopf
For decades, loyalty programs have been a very effective tool for retailers to encourage new business and
grow their customer relationships. Loyalty in restaurants, on the other hand, is a concept that some marketers
have overlooked. Yet loyalty strategies in both sectors have quite a lot in common, and are a primary way for
restaurants and retailers alike to boost customer interaction with their brands, determine purchasing preferenc-
es and demonstrate their appreciation for their customer base.
Following are two loyalty programs - one retail and one restaurant - that have demonstrated effective ways to
influence consumers’ behaviors, increase their engagement with the brand and grow their programs:
Red Robin Royalty Program
With more than 30% of its patrons under the age of
18, Red Robin is strong in the family category – and
has targeted its Red Robin Royalty program to include
benefits and rewards suitable to diners of all ages.
First tested in 2011 in 75% of the restaurant’s loca-
tions across the United States, this customer rewards
program currently stands at 2.7 million members and
climbing. The program continues to attract new cus-
tomers with the right incentives and rewards existing
members with redeemable for free gifts and special
deals throughout the year, for example:
• A one-time, instant free appetizer for registering
• A free gourmet burger in the diner’s birthday
month
• After ordering nine items, a tenth item free
Various “surprise and delight” offers throughout the
year
Why Does Red Robin’s Royalty
Program Attract Members?
Using omnichannel marketing to reach a diverse
customer base across all the channels their members
use, Red Robin has found ways to drive dine-in traffic
through interactive social media initiatives, mobile
marketing and targeted online messaging. Further-
more, by swiping the customer’s Red Robin Royal-
ty card, team members get immediate access to a
customer’s rewards status so they can redeem those
rewards accordingly.
What Can Restaurants Learn from Red Robin?
Capitalizing on the idea that dining frequency, prefer-
ences and interactions constantly change, Red Rob-
in Royalty’s road to redemption centers around its
adaptability and ability to heed customer feedback
and react accordingly. One of the most popular na-
tional casual dining chains today, Red Robin’s loyalty
program continues to grow: in 2013, the chain wit-
nessed a 4.1% revenue increase to $1 billion annually.
Following this trend in 2014, Red Robin expects sales
to increase exponentially as 25 additional locations
open, boosting the number of potential Royalty par-
ticipants at restaurants nationwide.

Bloomingdale’s Loyallist
Rewards Program
Bloomingdale’s Loyallist strategy is simple: reward
consumers for every dollar spent, through any form
of payment, at any time. Whether program members
shop in-store, online or at the outlet stores – or use
cash, credit, or the Loyallist card – they earn Loyallist
points. At certain times throughout the year, these
“Loyallists” can earn double, triple and quadruple
points, and the more they earn, the more benefits they
receive – like free shipping and “Power Points” shop-
ping. For every 5,000 points earned, members receive
a $25 Bloomingdale’s gift card, regardless of their
status in the program.
While Bloomingdale’s traditionally focused on an
older audience, marketing executives have recog-
nized the rise of the Millennial shopper. Tailoring their
rewards towards this demographic, they have incor-
porated mobile and Bluetooth technology into their
marketing initiatives, and have eliminated the need for
a credit card – giving younger shoppers the ability to
join the program without eliminating their eligibility to
join without credit.
Why Does Bloomingdale’s Loyallist
Program Attract Shoppers?
Capitalizing on mobile trends and store locations to
drive in-store traffic, Bloomingdale’s is leveraging
Bluetooth technology to promote the Loyallist pro-
gram to mall shoppers in real-time and in-location
- offering potential customers incentives to join the
Loyallist program and earn rewards points for every
dollar they spend on their Bloomingdale’s card. Using
localized technology (geofencing and proximity)
designed to scan for Bluetooth devices throughout
the mall, the retailer’s marketers are able to send
special “opt in” prompts – only one per customer, per
mall visit – related to a pre-selected brand or prod-
uct carried at Bloomingdale’s. If these mobile users
agree to opt in to the messaging, they can download
content related to that brand or product; or in some
cases, a high definition video explaining how they can
become Loyallist program members and save. Outside
of this initiative, Bloomingdale’s marketing team has
also invested heavily in different mobile applications
that give their customers the ability to access Loyallist
cards, balances and rewards through their personal
smartphones, regardless of location, thus easing the
purchasing process overall.
What Can Retailers Learn from Bloomingdale’s?
Bloomingdale’s Loyallist program is successful be-
cause it focuses on the one goal all loyalty programs
should strive for: giving members relevant rewards
they can actually use. When Loyallist cardholders
spend money – any kind of money – they are reward-
ed with points they can later convert to payment;
which encourages these shoppers to return to the
store and spend even more on future purchases. By
rewarding loyal customers with tiered points’ earnings,
this program demonstrates Bloomingdale’s commit-
ment to their customers; and in turn, makes custom-
ers more committed to the brand. Finally, it offers a
straightforward and distinctive program that attracts
new customers – emphasizing the notion that the key
elements of any successful loyalty program are sim-
plicity, attainable rewards and a collection of points
that customers can identify with and actually use.
What do these loyalty programs have in common?
They demonstrate brands that have tailored their loy-
alty programs based on what benefits their custom-
ers use the most; factoring in technology, marketing
initiatives, rewards and the constant push to better
understand their customer base.
The Bottom Line: Brands who invest in their dining or
in-store/venue experience with timely incentives that
add value and are relevant to consumers stand to
gain from increased membership, greater customer
engagement and bottom line growth.

5000points=
$25 Rewards Card
Bloomingdale’s loyallist strategy rewards
consumers for every dollar they spend,
through any form of payment, at any time
The program’s rewards & benefits are
suitable for members of all ages, including
- A one-time free appetizer for registration
- A free birthday gourmet burger
- After ordering nine items, the tenth is free
- Various “surprise and delight” offers
throughout the year
Rewards are tailored for different demographics,
and with bluetooth and mobile technology the program
has eliminated the need for members to have credit
30%of the restaurant’s
patrons are under 18
During select times
of the year loyallists
can earn double, triple,
& quadruple points
Red Robin uses
omnichannel
marketing to
reach a diverse
customer base
Traffic is driven
through social,
mobile & online
messaging
Team members
have immediate
access to member
data at POS
BOTH HAVE TAILORED THEIR LOYALTY PROGRAMS BASED ON WHAT BENEFITS THEIR CUSTOMERS USE THE MOST BY FACTORING IN
TECHNOLOGY, MARKETING INITIATIVES, REWARDS AND THE CONSTANT PUSH TO BETTER UNDERSTAND THEIR CUSTOMER BASE.
Bloomingdale’s sends promotions
in real-time based on location, offering
incentives to join the program
Members can access their account directly
through Bloomingdale’s Big Brown Bag
mobile app or the mobile site
The Red Robin Royalty program consists of over
2.7 million members and is growing
Red Robin
rOYALTY pROGRAM
Red Robin
rOYALTY pROGRAM
Bloomingdale’s
loyallist Rewards program

THE
MILLENNIAL
MINDSET
By Matt Stein
Millennials are a contradictory generation. They’re
young, but they’re highly motivated. Their finances are
limited, but they’re developing some of the most cut-
ting edge technology, mobile applications and social
platforms on the market today. They may buck tradi-
tion when it comes to the workplace, but are fiercely
passionate about causes that are making social impact
and brands they feel a connection with. Oxymorons
aside, this ‘army’ of 79 million young college students,
workers, entrepreneurs, and consumers – all between
the ages of 18 and 33 – make up America’s largest
generation in history. Collectively, they spend $600
billion annually, and by the year 2020, are expected to
account for 30% of all retail transactions in the United
States.
In short, Millennials represent a growing economic
force for the restaurant and retail sectors. Their future
spending power alone serves up a veritable goldmine
for the brands that can understand the motivators be-
hind this generation’s purchasing behaviors and cater
to their evolving lifestyles and needs.
What Matters Most to Millennials?
While younger Millennials have not amassed much
wealth yet (their median income at age 30 hovers
around $42K), they have fully embraced the entrepre-
neurial and startup culture. In fact, more than 14% of
Millennials are already earning more than $2 million
annually. But as the most distrustful generation in
recent history, the industries courting Millennials need
to quickly understand those brand loyalty triggers to
secure their trust – and future spending – before their
loyalties become aligned elsewhere.
For the Millennial generation, brand loyalty (and their
spending) amounts to a lot more than comparing
restaurant menus or a store’s inventory. It’s about com-
bining a brand’s products and offerings with a compel-
ling mission they can identify with and trust. According
to an academic analysis of their behavior and demo-
graphics, Millennials want the abundance of choice
and freedom of selection they have known since birth.
With this abundance and freedom, comes a desire for
flexibility in schedule and items and orders personal-
ized to their individual preferences – and they want
them all now. Millennials are collaborative, and they
learn through hands-on and social interactions. Yet
despite this collaboration, they recognize themselves
as individuals, and they don’t feel the need to conform
to mainstream ideals.
So what do Millennial consumers look for
in brands when aligning their loyalty?
• Social Impact. As a philanthropic generation, Millennials
want to know that their actions, and those of the companies
they align with, effect meaningful change.
• Innovation. Millennials are a product of technological
advancement. They also champion disruptors.
• Leadership. Millennials don’t just want to make an impact;
they want to lead the charge.
• Opportunity. Millennials are the most educated generation
– they are driven, motivated and always looking for the next
big thing.
Technology Drives Loyalty
Greatly influenced by the latest mobile, social and
disruptive technologies, Millennials expect that all their
interactions with brands and service providers, whether
it’s in the physical or digital world be immediate, effi-
cient, relevant and rewarding. A recent Forbes article
about Millennials as customers sums this up well:
“Customers expect you to be as good as the best of
what they’ve encountered online and in self-service
solutions.”
While older generations might question or feel uncom-
fortable with these tactics, Millennials have only ever
known a technologically-connected world; one where
instant gratification is only a tap, click or swipe away.
Tapping into the
Triggers that Lead
to Long-term Loyalty

Here’s a brief timeline of how they grew up:
• In 1989, the Internet, which just turned 25 (the age of the av-
erage Millennial) become known to the masses. Just a decade
later, while most Millennials were still in elementary school in
1998, Larry Page and Sergey Brin launched Google.
• In 1999, the very first wireless handheld device known as the
Blackberry came out, heralding the birth of the smartphone era.
• In 2004, social networking site Facebook launches (orig-
inally launched as “The Facebook”) by a 23 year-old Mark
Zuckerberg.
• In 2007, the first iPhone was released. Three years later,
the first iPad hit store shelves.
• In 2011, Spotify entered the American music scene, and for
better or worse, “selfie” was officially added to the Oxford
English Dictionary in 2013.
With their short history firmly rooted in technology, it’s
hardly surprising that Millennials are hyper connected,
technologically savvy and constantly on the go.76%
own a smartphone, 45% access coupons via email on
mobile devices and 63% are more likely to buy some-
thing if they receive a coupon on their mobile device
while near a store. And while Millennials may not be
readily handing out their loyalty, one thing they are
giving away is data. Many Millennials freely share their
personal information with companies having few, if any,
invasion of privacy reservations. For loyalty marketers,
this creates a perfect opportunity to build one of the
most complete customer profiles for any segment,
utilizing real-time data to tailor offerings to match Mil-
lennials’ fast-paced and mobile-centric lifestyle.
Social Dependency
More importantly, as Millennials continue to offer data,
marketers need to gather and analyze it. By using data
gleaned from CRM and social channels to understand
behaviors, restaurants and retailers can ensure they’re
sending well executed and targeted campaigns to
give these consumers what they’re actually asking for.
By analyzing their data, loyalty marketers can evalu-
ate their campaigns and gain real insight into what’s
working with millennial engagement, what’s not - and
what they can do next. Millennials want retailers and
restaurants they frequent, and their employees, to be a
real-life representation of the easy and effective virtual
experience they have always grown up with. They de-
mand control over their loyalty wallets and programs,
they want to shop and eat without the interference of
store associates and waiters, and they want retail and
restaurant employees to know all of the same informa-
tion about their shopping and dining preferences that
logging into their online account would give them.
It’s this kind of seamless experience that will drive
Millennial loyalty far beyond the loyalty program itself –
and companies who don’t create this experience could
fail as a result. Take the popular fast food chain McDon-
ald’s – which ranked number one amongst American
consumers, but doesn’t even make the top ten list for
Millennials’ favorite restaurant chains. Why is this? Un-
like Subway, Wendy’s and Pizza Hut, all in the Millenni-
als’ top five, McDonald’s hasn’t offered Millennials the
opportunity to customize, or control their food order-
ing. Furthermore, as Millennials subscribe to healthier,
more sustainable food chains, they look for quality over
quantity even with smaller average incomes. They want
to know the food they’re consuming is grown sustain-
ably, and that the brand they’re aligning with is not
harming them – or the environment. This comes back
to an emotional component of their generation: trust.
The brand-consumer relationship is pivotal for Millen-
nials, the socially-dependent generation, and they align
brand loyalty beyond what they see in store.
Sowing the Seeds by Roasting the Beans
(for the Digital Natives)
One rewards program that has successfully cap-
tured the Millennial mindset (and their wallets) is My
Starbucks Rewards, powered by what is currently
the largest coffeehouse chain on the planet. Having
survived the push for local business, this global cof-
feehouse-cum-retailer continues to engage Millennials
through various social media channels, mobile technol-
ogy and sustainable efforts. By offering smartphone
applications and mobile payment options, and reward-
ing consumers for engaging with the brand through
social media channels, My Starbucks Rewards isn’t only
making life easier for its younger customers – it’s as if
the program was designed specifically with the Millen-
nial in mind.
And that’s what keeps the coffee-loving generation
coming back: the program is built around motivators
that cater to the Millennial lifestyle including music
downloads, mobile games and free beverages. The
program’s tiered approach lets members earn “Stars”
so they can move up to different levels.

cards and consumers have the option to pay using a
mobile wallet through the program’s smartphone appli-
cation. Starbucks also updated its iPhone application (in
March 2014) to incorporate tipping and a special “shake
to pay” function that will help boost the store’s trend
towards “next-generation” retail, digital and mobile pay-
ments.
In fact, recent studies reported that nearly 10 million con-
sumers pay for their coffee drinks through the app, making
more than 5 million mobile transactions per week. And
since we know Millennials look for sustainable brands that
value social impact, their mobile wallets also give them
avenues to donate to help fund jobs in America through
Starbucks’ Create Jobs for U.S.A. Program.
To keep these young consumers loyal to the brand,
Starbucks’ marketing team used an omnichannel ap-
proach to ensure their brand and communications were
accessible and everywhere their customers were. A
simple to use and interactive rewards structure, com-
bined with clear and concise messaging really grabbed
the attention of Millennials. By combining an innovative
mobile application with forward thinking and an oppor-
tunity to contribute to the greater good in the world,
My Starbucks Rewards appeals to Millennials by lever-
aging advances in technology and encouraging social
engagement and smart spending.
What We’ve Learned about Millennials and Loyalty
As contradictory as they are, what we do know about
Millennials is this:
• Millennials want control over their shopping and dining
experience.
• Millennials need to trust the brands they are loyal to.
• Millennials thrive off social interaction and engagement,
whether through personalized messaging, in store communi-
cation or social media outlets. Millennials want to know their
impact – and align with brands that identify with a greater
purpose than increasing revenue.
Between their spending habits and dining and shop-
ping preferences, this generation – the largest and
most culturally diverse since the Baby Boomers – is
changing the way restaurants and retailers develop
customer loyalty programs. By mining CRM and social
data to identify preferences and trends, and utilizing
predictive and behavioral analytics to understand what
triggers brand love and loyalty among this set, these
brands will create and seize opportunities to nurture
long-lasting relationships as the generation matures
and flourishes financially.

76% own a Smartphone

18
TABLE TALK: INDUSTRY INSIGHTS ON
INTEGRATING LOYALTY PROGRAMS I
BY PAMELA SULLINS
For restaurant operators and their marketing exec-
utives, a well-designed and well-executed loyalty
program does more than drive customer engagement
and frequency of return visits – it forms an essential
part of the company’s overall marketing strategy and
can be a significant contributor to the company’s
bottom line growth.
Separate from other marketing initiatives, loyalty
programs can also give restaurant operators direct
insight into what guests think about their menu items,
staff and overall quality of service before, during
and after the dining experience. In other words, how
their customers experience their brand. And from
this collected data, executives can evaluate compa-
ny performance against key performance indicators
to determine how their loyalty program impacts the
restaurant’s reputation and encourages customer
referrals, repeat purchases and renewals.
In today’s intensely competitive loyalty landscape, it’s
critical for marketing departments to contribute to the
profitability of any business – and demonstrate this
contribution through measured and proven results.
How? Through a customer loyalty program.
While a well designed loyalty program is one facet
of a comprehensive marketing plan, it should also be
a central component. When it comes to profitability,
many marketers forget that new customer acquisition
is more expensive, and less lucrative, than customer
retention. And as a result, they often silo their loyalty
programs instead of integrating them into the overall
marketing strategy. When it comes down to it, loyalty
programs reflect what marketing campaigns aim to
achieve: increased brand interactions, increased spend
and more profitable customers.
Ten Restaurant Loyalty
Programs Tips:
For restaurants, customer loy-
alty programs are an effective way
to turn new customers into regulars,
increase the frequency of customer
visits, gain more insight into the restaurant’s
customer base, attract new members and
increase revenue.
By following these best practices and avoiding
the bad ones, restaurant operators and their
marketing executives can incorporate customer
rewards programs into annual marketing cam-
paigns that drive member engagement exponen-
tially and boost customer loyalty year-round.

N HOW RESTAURANTS ARE
INTO OVERALL MARKETING PLANS
By: Pamela Sullins
Send guests a relevant
“come-back” promotion or offer.
Today’s consumers are inundated
with dozens of marketing messag-
es daily, delivered through every
channel. To keep your restaurant’s
promotion or program call-to-
action from adding to the digital
chaos, marketers should strive for
meaningful loyalty interactions and
intelligent messaging that really
resonates with consumers. Rel-
evancy is key. You want them to
come back because they received
a genuine experience; so instead of
sending guests irrelevant informa-
tion or offers, use the knowledge
gleaned from your CRM and trans-
actional data sets to send messag-
es that are timely and personalized
and offer both a reason and a
request.
Use relevant marketing channels.
Understanding the demographics
of your patrons and the market-
ing channels they prefer is crucial
to knowing how you can reach
and impact them effectively. To
promote your restaurant pro-
gram effectively, deliver messag-
ing through those channels you
know your guests prefer and that
illustrate your knowledge of the
individual. Don’t use marketing
tactics that past data has proven
won’t generate a response. Estab-
lish a presence on all communica-
tion channels that are relevant to
your customer base – from direct
mailings and personalized emails or
geo-targeted alerts, to user-friend-
ly, mobile optimized websites and
applications – and keep your target
audience in mind.
Break down silos.
Whether your goal is to increase
traffic, promote new menu items or
introduce new dine-in or out ser-
vices, this information needs to be
communicated through your loyal-
ty program. Your loyalty program
should be viewed as an extension
of all other marketing initiatives
(advertising, POP materials, etc.)
and therefore used to reinforce a
desired behavior. As your most
loyal patrons make up your pro-
gram, consider providing them with
expanded or specialized content
and rewards that reflect overall
marketing campaigns, as this can
deepen the engagement levels and
accelerate goal achievement.
Encourage
“Word of Mouth” advertising.
Just as restaurants know the value
of Word of Mouth for good re-
views and to drive traffic, so too
can it drive loyalty participation
– especially in the restaurant and
retail sector, two industries that
are social by nature. In fact, recent
studies show that Word of Mouth is
embraced by Millennials – who view
it as a leading purchase influencer.
For marketers, “social” influence
needs to go beyond traditional
social media channels and aim for
ROI-driven marketing initiatives
with measurable sales impact.
With the development of Big Data,
researchers can use data-driven
Word of Mouth to evaluate pur-
chase influence, and as a result, use
their findings to boost the ROI of
any company marketing campaign.
Using the power of Word of Mouth
advertising, good loyalty programs
will be shared organically.
Segment members to identify
and give special treatment to
your high-value members.
Make sure you distinguish be-
tween high-value and infrequent
customers, and distribute rewards
by segmenting them into good,
better and best customers. While
63% of company marketers focus
their attention on new customer
acquisition, smart companies know
that 20% of shoppers constitute
their loyal customer base – and it’s
this same 20% that drives 80% of
restaurant and retail revenue.
Consider this: loyal customers
spend ten times more than new
customers, they are 60-70% more
likely to purchase additional items
at the point of sale, and they are
70% more likely to advertise your
company. Every customer likes
to receive the VIP treatment – it’s
important to send them special
promotions and rewards oppor-
tunities to offer an impression of
exclusivity.

Test messaging strategies
to see what works.
The old adage, “What’s good for
the goose is good for the gander”
can be especially true when it
comes to loyalty. As your loyalty
program’s membership is made up
of a cross-sec-
tion of your
patrons, utilize
your mem-
bership base
to test (and
retest) market-
ing messaging,
campaigns and
even promo-
tions to your
various cus-
tomer segments. This controlled
environment can provide action-
able insights that can be received
in real-time and then disseminated
to a wider audience later.
Empower your employees.
For restaurant owners, employees
are the front lines of all business
operations and the face of the
brand to your customer base.
Within this role, employees often
directly influence a customer’s
dining experience and can signifi-
cantly impact whether or not they
will return to your restaurant. For
those reasons, it is critical to ensure
that all staff members (servers,
hostesses, bartenders, etc.) are
fully trained on all aspects of your
restaurant loyalty program so they
are adequately prepared to engage
potential new members. Make it as
fun and easy as possible. Give store
clerks a script they can read that
contains the program’s standard
messaging, explains the value
to the customer and extends an
invitation for them to enroll. Train
employees on how to use the loy-
alty program software to register
customers and process rewards.
Finally, come up with creative ways
to encourage employees to pro-
mote your rewards program – like
contests and prizes – just as you
would to encourage your custom-
ers to join.
Promote your loyalty program.
Promoting restaurant loyalty
programs is not about facilitating
outreach to the general public; it’s
about getting to the right customer
in a way that will really resonate.
Today’s business culture is driven
by innovative technology, op-
posing customer opinions, and a
never-ending search for “the next
new thing.” In this environment,
restaurants can ensure they reach
targeted customers by marketing
through omnichannel and engaging
consumers through channel-opti-
mized loyalty program marketing
campaigns that are “right timed”
to deliver messages at every touch
point relevant to customers on
their own level. Unlike traditional
rewards programs, omnichannel
loyalty gives marketers a way to
reach consumers with the right
message at the right time, in a way
that is organic, intuitive, individ-
ualized, engaging and fun, and
represents the brand appropriately.
Engage with customers, especially
after their dining experience.
Consumer feedback is crucial to
restaurant success – and those who
listen to this feedback and make
changes accordingly stand out
from the rest. Customer reviews
allow you to analyze your current
business practices and evaluate
what might be negatively affecting
your success. If there is negative
feedback, consider the following
questions: What is the root cause
of the problem? Is it a communi-
cation issue? How can we correct
it? How will this affect the overall
customer experience? Customers
are the backbone of any operation.
By using their concerns to improve
the dining experience, you are
not only securing their return, but
you are creating opportunities for
these diners to use positive Word
of Mouth
to engage
additional
consum-
ers and
boost your
restaurant’s
ROI.
Keep the data flowing.
Today’s technology has businesses
in every sector analyzing data to
change the way they operate. Just
as these businesses use loyalty
data to influence marketing deci-
sions, they use other forms of data,
too – from transactional to social
intelligence – to ensure operational
success. For example, through data
collection and analysis, restaurants
can identify critical facts and fig-
ures about what diners prefer, what
they’re purchasing - or not, which
rewards they like and those they’re
not taking advantage of on a daily
basis – all in real time. Factor in so-
cial media, and these same restau-
rants can use comments, “likes”
and retweets to gauge customer
opinions, better understand diner
trends, and leverage data to put
their loyalty marketing dollars to
work where it actually counts.
Success Story: Take the Italian
favorite Maggiano’s Little Italy,
for example. Known for their
large portions of authentic
Italian dinners, they tested
a smaller menu, with more
controlled portions, in select
restaurant locations to try and
attract a larger lunch crowd.
Upon realizing its success, the
smaller menu was adopted by
all locations nationwide.
Success Story: The popular chain
Saladworks created the website
www.SaladworksListens.com to
gain customer feedback in real
time, and had a staff on hand to
respond to that feedback im-
mediately – including feedback
received after hours and on
weekends.
Success Story: The Colora-
do-based chain, Larkburger, pro-
moted its new loyalty program
by creating a contest that asked
customers to suggest the name
of the program. The result was
increased customer engagement
and a $50 Larkburger gift certifi-
cate for the winner.

PROGRAMS AND MOBILE APPS
By Michael Hemsey
How retailers and restaurants
can use mobile technology
and social media to increase
member engagement
Over the past decade, a number
of major factors have significantly
disrupted the retail and restaurant
industries, including the evolu-
tion of eCommerce, the rise of
social media and the emergence
of Millennials as a customer base.
None of these, however, have been
as disruptive as the mobile device
– and the broader mobile channel
itself.
According to MIT, 80% of store
shoppers check prices online,
and the web influences $1.1 tril-
lion in store sales. A 2013 study
also found that 81% of consumers
have searched for a restaurant on
a mobile app, and 75% said they
often choose a restaurant based on
those search results. These chang-
es in consumer behaviors have
forced traditional brick-and-mortar
businesses to adapt to the new
mobile world or get left behind.
Retailers and restaurants have
responded to the challenge with
omnichannel strategies that create
a seamless experience between
brick-and-mortar and mobile, and
the results are clear — according
to one study, companies with the
strongest omnichannel customer
engagement strategies retain 89%
of their customers, compared with
33% for companies with weak om-
nichannel strategies.
Mobile devices are not just gad-
gets. They have become the center
of users’ daily lives and how they
engage with the world. If brands
want to engage customers, they
have to go through a mobile device
first. The mobile channel, therefore,
must become central to brands’
lives, too.
The Consumer’s Center of
Universe: The Smartphone
With mobile retail payments
expected to reach $707 billion by
2018 and restaurants already the
most searched industry on mobile
apps and browsers, smartphones
have become the center of the
‘new consumer experience,’ and
brands have to unify their strate-
gies and tactics around this center
if they want to remain part of con-
sumers’ lives.
Advances in mobile technology
have paved the way for restaurant
and retail loyalty programs to em-
ploy strategies that move “beyond
the discount.” By delivering timely
messaging and offers that focus on
increasing member engagement
and are relevant in real-time and
in-location, marketers can ensure
a consistent brand experience that
nevertheless personalizes engage-
ment for each channel and each
program member.
Retailers and restaurants have be-
gun to recognize this omnichannel
approach as more than just a trend
or buzzword – it’s the new normal.
Omnichannel marketing opens up
more sophisticated ways for brands
to create program awareness, im-
prove the shopping/dining experi-
ence, and ultimately, drive loyalty
and customer retention.

Mobile Tech Trends Make Loyalty
Marketing Easy and Entertaining
Geo-location features like GPS al-
low retailers and restaurants to tar-
get customers where they are and
create real-time and relevant offers
and messaging that keep brand
awareness alive, attract brick-
and-mortar traffic and incentivize
ongoing spending. This fits into
the omnichannel goal of managing
the entire customer experience
before, during and after shopping
or dining.
In line with this goal, Taco Bell
and McDonald’s are also introduc-
ing mobile ordering, a trend that
reflects the growing importance
of omnichannel marketing in the
restaurant industry. As Taco Bell’s
mobile lead put it, “Mobile is the
biggest shift in QSR since the drive
thru. If you can get 10 million peo-
ple to download your app, you’re
putting a portal to Taco Bell in 10
million pockets.”
Marketing aside,
mobile devices as
a whole are also
changing in-store
interactions for
retailers and restau-
rants industry wide.
New POS and mobile
payment systems, for
example, are helping streamline
the payment process by allowing
diners to pay with their mobile
device, therefore making service
more efficient for staff and adding
value to the transaction. Many
retailers and restaurants are also
implementing tablet strategies and
equipping locations with these
devices to help customers browse,
order, customize, pay – or even play
games to keep them engaged with
the brand.
Pizza Hut, for example, recently
announced plans to implement its
own digital signage tabletop where
diners can customize their orders
– from the size, toppings and crust
of their pizza, to side dishes, wings,
pastas and desserts – and even
play games while they wait. This
kind of in-store technology helps
create a brand experience that
simultaneously improves retail and
restaurant operations – like staff
efficiency, reduced wait times and
increased spending. According to
Ziosk, tablet menus increase tips
by 15% on average, and at Chili’s,
they increased dessert sales by
about 20%.
Some restaurants have taken gam-
ification to the next level with mo-
bile apps that create brand aware-
ness and let customers play games
to win free products and impact
the local community. The sandwich
chain Blimpie’s, for example, de-
veloped “Blimpie’s Run,” a mobile
game that randomly selects
participants to win free
subs for an entire year.
Chipotle, on the other
hand, uses mobile
apps to get customers
on board with their
company philosophy. Its
“Scarecrow Game” teaches
consumers of all ages about
the importance of pro-sustainable
farming efforts, a standard oper-
ating procedure for the healthy
Mexican food chain.
Ultimately, the goal of omnichannel
and mobile marketing is to help
drive lasting customer loyalty, and
for retailers and restaurants in par-
ticular, mobile devices have to be
loyalty drivers. JiWire’s recent Mo-
bile Audience Insights Report has
some interesting stats on diners:
39% of consumers use mobile apps
over other methods to find infor-
mation on QSR and casual dining
establishments.
Restaurant review apps are second
only to Word of Mouth advertising
for determining where to eat.
83% of consumers rely on their
mobile device for dining decisions
while traveling, compared to 65%
while in their home market.
Loyalty programs have to adapt to
the new environment where mobile
devices drive consumer decisions
in real time. Mobile loyalty apps
should, at the very least, make
it easy for program members to
manage their account, earn points
and redeem rewards with a swipe
of their touchscreens. Pouch, an ex-
perimental new loyalty app, is try-
ing to consolidate cards, vouchers,
content and other loyalty features
into one convenient platform, while
also using Bluetooth beacons to
target mobile users when they are
near a retail or restaurant location.
Once they have a solid manage-
ment platform in place, retailers
and restaurants can focus on
creative and effective tactics to
drive loyalty among mobile us-
ers. Fashion retailer GUESS rolled
out a new mobile app earlier this
year, providing points earning
opportunities, personal customer
service, fashion updates, photos
and videos of merchandise and
the ability to cross-sell and up-sell.
That is the omnichannel range of
mobile devices, consolidating the
entire brand experience into one
platform, creating new opportuni-
ties for spending and engagement,
and ultimately, tying everything
into customer loyalty programs to
39%
of consumers
use mobile to
find dining
information

MOBILEIS PAVING THE WAY
for
OMNICHANNEL
EXPERIENCES
An Interview with Don Hughes
THE FINANCIAL SERVICES LOYALTY
PROGRAM LANDSCAPE:
Where Are We Today?
create lasting value for both brands
and consumers.
The Wrap:
Six Reasons Why Brands Can
Benefit from Applying a Mobile
Mindset to Their Loyalty Programs
Given advancements in mobile
technology, research shows there are
six ways that companies can benefit
from integrating their loyalty pro-
grams with a mobile platform.
Mobile Loyalty Programs:
1. Drive activity and increase ROI.
Smartphones drive the way consum-
ers interact with brands today. Mobile
loyalty programs give customers
another reason to stop by
(physically or digitally) and
make a purchase.
2. Are easy to administer.
Instead of printing out
punch cards or replacing
lost loyalty rewards cards,
mobile programs need only
a smartphone (which most
consumers always have
with them) and most can be
changed, as needed, from
the app dashboard. In short,
they are clean, elegant and
cost-effective for restaurants
and retailers to manage.
3. Reduce churn and im-
prove loyalty. Having a mo-
bile platform that consumers
can easily access is another
incentive for them to choose
one program over another.
4. Are a solution to loyalty
program fatigue. Consumers
like carrying loyalty cards
less and less. Mobile loyalty
programs make it really easy
for consumers with a tap,
click or swipe.
5. Improve customer
satisfaction. Mobile loyalty
programs provide a way for
brands to remain connected
with their members at all times and
offer a vehicle for instant feedback
and dialogue, just like social media.
6. Track customer activity. Mobile
loyalty programs provide data that
allows retailers and restaurants to see
what rewards are motivating, how fast
members redeem and what items they
frequently purchase. This data is key
to knowing what to offer customers
and how programs can be improved
incrementally and continually.
More than any other industry, the
retail and restaurant industries
– which are both very social by
nature – have tremendous oppor-
tunities to capitalize on custom-
er loyalty through the mobile
channel and the most intimate
marketing tool, the mobile device.
Leaving traditional marketing
tactics behind, mobile technology
has paved the way for a loyalty
marketing landscape that centers
on the omnichannel experience
and garners success by reaching
consumers wherever they are.

1
Mobile apps drive
activity and ROI 2 They’re easy to
administer
3 Mobile programs
reduce churn 4 They solve
program fatigue
6They improve
customer satisfaction5 Mobile programs
track activity
6 Ways that brands
can benefit from mobile
GEO-LOCAtiONfeatures allow retailers and restaurants to
target customers on the spot and attract
brick-and-mortar traffic
Gamification Tactics
Are being used to drive engagement
and create brand awareness among
members
Mobile is changing in-store
interactions with new POS
mobile payment systems,
making services more efficient
Advances in mobile tech have paved the
way for industries to employ strategies
Beyond the Discount
Mobile technology has paved the way
for a loyalty marketing landscape that centers
on the omnichannel experience and reaches
customers wherever they are
increase member engagEment
through mobile technology
80%
use mobileuse mobileuse mobileuse mobile
apps to find info on
QSR & other diners
QSR & other diners
QSR & other diners
QSR & other diners
39%39%39%39%
of store shoppers check prices online
81% have looked for a restaurant on an app

Michael Hemsey, President
As President of Kobie Marketing, Michael is responsible for leading all facets of the loyalty marketing organiza-
tion including business development, IT initiatives, client services, as well as the overall direction of the Kobie
brand. For 20 years, Michael has cultivated a rich background in client services, product development, market-
ing, technology and operations through several key posts. Prior to Kobie Marketing, Michael was Executive Vice
President of TSYS Loyalty (formerly ESC Loyalty) and led the loyalty marketing implementation and relation-
ship management teams serving the world’s largest issuers and retailers.
Bram Hechtkopf, Vice President of Business Development and Marketing
Bram leads the “marketing of Kobie Marketing”. He consults with current and prospective clients on new busi-
ness opportunities, helping to develop customer retention and loyalty marketing strategies and solutions that
drive increased retention and spend. Following in the footsteps of his father, Kobie’s founder, Bram is eager to
continue Kobie’s vision of technology and data analytics as enablers of leading-edge marketing executions for
world-class customer loyalty initiatives. Bram has consulted with a wide array of leading brands including AMC
Entertainment, TGI Friday’s, BJ’s Restaurants, Verizon, Bank of America, RBC, Flagstar Bank, JPMC, Sagicor,
Coca Cola, Cox Enterprises, Ruby Tuesday, Hawaiian Airlines, and Royal Caribbean Cruise Lines.
Nancy Berg, VP of Client Services and Partnerships
Nancy is responsible for leading Kobie’s Client Services team and Partnership Marketing practice, where she is
responsible for all aspects of Account Management and building strategic and tactical marketing partnerships
that differentiate Kobie’s client programs. Nancy takes great pride in delivering against Kobie’s mantra that we
will never sacrifice an existing client for a new business opportunity, and that we will do what we say we will do
each and every day. She is a strong and trusted leader, that has nearly 20 years’ experience in Customer Loyal-
ty Marketing working in several industry verticals with top brands including Verizon, RBC Bank, AMC Theatres,
Hawaiian Airlines, Bank of America, Northwest Airlines, US Bank, Westin Hotels and others.
Matt Stein, Creative Director
Matt serves as the head of Kobie’s Creative & Marketing Services capabilities. With over 13 years of experience
in senior creative leadership roles, he drives industry-leading loyalty engagement solutions that span the online,
mobile, social, print and broadcast media channels as well as the full customer journey from digital channels to
physical locations.
Pamela Sullins, Senior Director of Client Services
Pamela Sullins has more than twenty years’ experience as a senior sales and marketing executive with a suc-
cessful career of consultative sales, product/service marketing, channel marketing and client relationship man-
agement for technology and healthcare organizations. Ignited by her training in coalition building at Harvard,
Pamela has volunteered and worked to promote social enterprise and social marketing for community-based
non-profit organizations. She is an alumna of the Center for Creative Leadership and brings proven leadership,
business acumen and innovative solutions to all of her endeavors.
Mary Falleson, Account Director
Mary’s background includes building brand value in the consumer, healthcare, retail, entertainment, and finance
sectors through insight-based solutions that engage customers in unique and relevant ways. Her method to
achieving big picture success for her clients is by inspiring loyalty and holistic engagement and making every
single program work, where it counts, at the point-of-purchase.
ABOUT THE AUTHORS

Kobie Marketing is a diverse team of loyalty
enthusiasts who are passionate and dedicated
to the day-to-day management and long-term
success of your loyalty program. We deliver
quantifiable ROI and real customer experience to
increase customer retention.
Kobie Marketing is a global leader in loyalty
marketing and an industry pioneer, delivering
end-to-end strategy, technology and program
management solutions. Kobie drives results and
ROI through Kobie Alchemy®, a best-in-class
loyalty marketing technology platform.
Find out more at info@kobie.com
WE ARE KOBIE

Kobie Quarterly Review: Restaurant and Retail Edition - 2014 - Learn More at Kobie.com

Recommended

Recommended

More Related Content

Recently uploaded

Recently uploaded (6)

Featured

Featured (20)

Kobie Quarterly Review: Restaurant and Retail Edition - 2014 - Learn More at Kobie.com