LOYALTY

EXPO
2009
July 2009 | Loyalty Management 59
 FROM THE EXPO

Expo Takeaways:
“Keep it Real”
by Al McClain – RetailWire.com

Some marketers are more in love with putting

together programs and setting rules than they
are in really connecting with their customers.

60 July 2009 | Loyalty Management

 LOYALTY EXPO 2009

S “The Loyalty
o here’s the thing about loyalty—it’s whatever
the individual shopper/consumer wants it to be,
not a marketer’s program. One person is loyal
due to personalized service, another likes the one free
after ten purchases deal, while someone else wants to
accumulate points, etc. The problem seems to be that
Expo was a well
at least some marketers are more in love with putting
together programs and setting rules than they are in run conference
with many great
really connecting with their customers.

Citibank and American Airlines have a program, for

presentations
example, where one can earn 20,000 Aadvantage® miles
for doing the following: Open a checking account with at
least $1,000 by 6-30-09. Make one direct deposit or pay
two electronic bills or make five qualifying non PIN-based
purchase transactions with their debit card per month for
twelve consecutive months. Oh, and you have to remember
and significant
to register for the program using a special code and once it’s
all over it takes up to 120 days from completing all the activity
to receive the miles.
networking
Meanwhile, speaker after speaker at this week’s Loyalty
Expo advised marketers to “simplify”, “connect with consumers
opportunities
” and “keep it real”. With the above example, we can see why
that advice is necessary. BrandMIND noted that households
have an average of 14 loyalty cards yet a Colloquy presenter
with clients,
said that only 6.2 of those 14 memberships are active. In
other words, consumers have a lot of loyalty cards and partners and
prospects.”
can’t keep up with them all. Yet, here’s the program that
started it all in 1981 making consumers jump through nearly
impossible hoops to claim their award.

For the 80 million 12 to 31 year olds classified as Millenials,

programs like the above example make even less sense.
Panelists at a session on “Building Engagement with
Millenials” said that this group is very connected with friends
and family, relying heavily on word-of-mouth for everything.
Millennials want instant gratification—they prefer instant
cash back (who doesn’t) versus mileage rewards that take a
long time to accumulate. Traditional media with this group
is less effective, and they have the ability to opt-out of
everything, so marketers need to find reasons to keep them
engaged with their brands. If a brand doesn’t deliver, they
can tarnish it pretty quickly, via social networks and W-O-M.
Panelists felt that marketers should take away complexity
because, although this group can scan information more
rapidly than previous generations, they are better at
“scanning” than really reading in-depth.
My overall impression is that consumers, if left to their own
devices, would really prefer to just have better prices than
wade through piles of special offers and loyalty program rules.
(Can anyone say Wal-Mart or Southwest Airlines?) But, since
there can be only one low price leader for any given type of
business, everybody else needs to think about what else will
work best and perhaps try the following tips:
—Bob Fetter, Pluris
• Keep loyalty programs and special offers simple enough
that harried consumers can figure them out easily and
quickly.
• Don’t try to trick consumers with onerous rules and
regulations—you’ll get trashed via social media.
• Personalize offers enough so that shoppers will know you
are on the same page with them, but not so much that
they think you are snooping on them or trying to be their
“friend”.
• Think about what you offer from the perspective of
consumers who are going through tough times more
often than not, and are continuously bombarded by
“deals” from marketers of all sizes and stripes. L

July 2009 | Loyalty Management 61

 FROM THE EXPO

Eye on
the Future
by Julie Sturgeon

“There is no magic bullet, no simple solution

to loyalty. We have to satisfy customer needs
and wants at a sustainable profit. It’s the last
part marketers forget.”
The Loyalty 360 Expo in Hollywood, Florida, offered yet another chance for our association to
show the industry how far we’ve come in one scant year. We’ve partnered with the International
Marketing Association, the Motivation Show, the Petroleum Convenience Alliance for Technology
Standards, and the National Restaurant Association. We’ve just rolled out an innovative best
practices database on the newly launched website. Look for us to roll out councils, offer more
webinar series and focus on innovations in the time of economic uncertainty.

In short, our goal is to find the answer to today’s
vital questions on how to retain loyalty, how to engage
consumers and how to measure effectively.
But we can’t drag the baggage of our past along on this
journey if we intend to get to our destination, as Timothy
Keiningham, global chief strategy officer and executive
vice president of IPSOS Loyalty , made clear in his keynote
address. “We see with our brains, not our eyes, so we accept
the myths in this industry,” he told the audience of 300-plus.
“That’s a problem.”
Unfortunately, our brains are wired to see things consistent
with our normal world—we do not see things we think are
impossible. And as marketers, there’s a second twist: Our
brains see patterns in everything. As a result, Keiningham
says, we think that correlations are the cause, which means
we buy into myths such as customers become more
profitable the longer they stay with the company. (Wrong.
Buyers fall into either profitable, break-even or unprofitable
buckets. You simply want to encourage the profitables to
stay, not everyone in a blanket statement.) Or we believe
loyal customers pay higher prices. (Just the opposite: they are
quite price sensitive because they’ve learned how we tick.)
“There is no magic bullet, no simple solution to loyalty,”
Keiningham said. “We have to satisfy customer needs and
wants at a sustainable profit. It’s the last part marketers
forget.”
Here’s a glimpse of how other loyalty marketing players are
using what we know today to reshape our future. L

62 July 2009 | Loyalty Management

 LOYALTY EXPO 2009

“There
were many
L O Y A LT Y E X P O S U M M A R Y

Census Talk 2009:

Sizing Up the U.S. Loyalty Marketing Industry improvements
Rick Ferguson, editorial director of Colloquy, knows a few
disheartening facts about the loyalty marketing industry. this year...The
In a nutshell, we’ve reached saturation, with the average
household enrolled in approximately 14 programs. Yet the content was
strong and very
average consumer carries only three or four of those cards in
their wallets.

Additionally, the engagement numbers his company is

seeing are flat. “There’s a lot of signing up and walking away relevant for
going on,” Ferguson said. “It’s loyalty marketing’s dirty little
secret: a lot of these programs are a waste of money.” the times, the
So, if you’re not a member of the card-carrying set, do
you push the envelope or get out of the game? Ferguson location was
recommended that participants who attended his
session survive by stop expecting a revolution and begin easily accessible
to many airports
concentrating on the four Cs of the current evolution:

Convergence: When different technologies like

telephone, video and computers merged, the world
welcomed broadband. In marketing, this convergence will be and the venue
partnerships, as airlines and Citi have begun to demonstrate.
The idea is to reward people for behavior across an entire allowed for easy
networking.”
network of partners as opposed to limiting them to one
brand. For marketers, it means critical mass, which is why
Citi teamed up with Expedia to use points toward travel in
2008, and even in the midst of a financial industry meltdown
forged forward with a similar plan with Amazon.
—Adam Bashe,
Coalition: Air Miles was revolutionary, and its position Destination Maternity
has proven strong enough to bear repeating in the U.K.,
Germany, Australia, New Zealand and Brazil. So far, the
United States hasn’t had a successful attempt at a coalition.
“But I’ll stake a body part that it will happen here in three to
five years,” he said. “At that point, you’ll either need to join or “Now, how do you get them involved in your business
compete. Get your plans together for that direction now.” model?” he added. Ask Club Lego, which let its members
design a kit that proved to be the biggest seller in the
Cooperation: When it comes to word-of-mouth company’s history.
advertising, Colloquy has found that 71 percent of the U.S.
population is willing to recommend any given company, Cause marketing: No, we’re not just talking about going
but whether their actions meet their attitude is uncertain. green. Customers are demanding companies to do business
Fifty-eight percent of the population is a connector who in socially responsible ways, like American Express’ Members
has the ability to recommend the product to folks in their Project that let participants vote on where to donate non-
real-life and social networks but aren’t necessarily into profit dollars. Likewise, Air Miles suggests ways its members
your brand. The sweet spot—that interaction between can burn points in green ways.
advocate and connector—Ferguson calls a champion. The
best news: 55 percent of loyalty members are champions, “We have the ability to put the right products on the
“so your database has a ton of people who like you and shelves to hit our profitability numbers,” Ferguson said. “All
talk about you. we have to do is focus on the things that matter. L

July 2009 | Loyalty Management 63

 FROM THE EXPO
L O Y A LT Y E X P O S U M M A R Y
Gamification of Loyalty:
Driving Deeper Customer Engagement
Through the Power of Play
A large chunk of our society evolves around games:
American Idol is clearly one, and some viewers swear the
TV series Lost is as well. But when you define “game” as
a structured experience with rules and goals that is fun,
suddenly all of life is eligible for this label.
And, as Barry Kirk and Tim Crank of Maritz advocate, that
includes loyalty marketing programs.
“Games tap into competition, status, flow, play, reward,
achievement and mastery—primal psychological needs,”
Kirk told his audience. And that’s exactly why they could
be the big ticket to solving pervasive challenges in the
loyalty marketing arena, such as commoditized programs,
the public’s growing attention scarcity and social media’s
message that everything needs to be interactive and
immersive.
Kirk offers three steps to take immediately:
1. See yourself as a game designer: Call it a loyalty program
if you insist, but the goal is still to tap into the same
power engagement triggers. The real transformation
happens when you throw in the fun.
2. Focus on your player. As a game designer, your role is to
be an advocate for the player. Yes, it’s a radical shift for
folks who traditionally think in terms of price per point.
3. Master these game mechanics:
Points, or even more precisely, scores. Coca-Cola has
turned its bottle caps into tokens; YouTube encourages
participants to strive for hits and ratings. Anything you
can do to create experience points to go with the spend
points is golden.
Tiers to let people know where they are relative to
the game. Think of American Express’s card color
progression, or Yahoo Answers passing out gifts built on
interaction levels.
Collecting, because if you put it in a set, the human
brain feels compelled to gather the entire thing. Think
Boy Scout badges, Burger King Star Trek glasses, and
McDonald’s Monopoly cards. According to Kirk, if you
bundle behaviors you currently aren’t getting with
actions the public is comfortable with, they’ll strive for it.
64 July 2009 | Loyalty Management
“I had a great time at the
expo and found the sessions
helpful and insightful. I was
particularly impressed with
the Gamification of Loyalty.”
—Adriana-Vethencourt,
Office Depot
Leader boards give players status to compare. It’s
basically the YouTube “most watched video” hits
announcement, but in loyalty, that might translate to a
lifetime point accumulation recognition.
Exchanges make the games social. When you let
people interact—think sending gifts on Facebook or
retweeting on Twitter—they’ll play longer
Customization, such as avatars, cement folks to your
program. The more time they invest in creating their
stamp, the higher the exit barrier. PetSociety gamers
did exactly this when they discovered players had
made a point to collect the different color dog poos in
the competition. Now, there’s an added goal: to earn
golden and rainbow poo. “We have as much data on
how people use loyalty as gaming companies do,” Kirk
pointed out. “Why not use it to fit the program to the
players?”
Feedback shows where you stand relative to a
personal goal in addition to the big picture.
Randomness plays on the popularity of slots.
Psychologists will tell you that variable reinforcement
is the most powerful carrot. Take, for instance, Charter
cable company’s loyalty program. Participants know
how to collect points (yawn) but they have no idea
when the window to redeem them will open and
close. The suspense means they open every email just
in case. It also helps with a program’s liability if you
control when people can redeem, Kirk said.
Spectators are a given. Face it, without an audience
Facebook wouldn’t exist.
Bosses, as the last great Herculean task before
completing a level or game, intrigues the best of us. If
you fail, it’s human nature to work to get that second
(third, fourth and fifth) crack at it. And when you do
conquer the obstacle, the emotions are very positive.
“It’s all about looking at your existing programs to see
where game tactics fit,” Kirk encouraged. L
 LOYALTY EXPO 2009

L O Y A LT Y E X P O S U M M A R Y

“Had a great
iPhonifying Loyalty—Micro Offers
and Mobile Interaction:

time at Loyalty
Leveraging Today’s Mobile Technologies to
Move Product, Reduce Inventory and Increase
Communication

It’s official: On May 21, 2009, Vatican City launched www.

pope2you.net to reach out to Catholics around the world Expo. Met a lot
of great people,
via Facebook, YouTube and iPhones. In his public relations
announcement, the Pope told 20,000 listeners in St. Peter’s
Square, “to use the technology in a positive way to build
up bonds of friendship and solidarity that contribute to a
better world.”

Consumers certainly haven’t waited for this blessing. Don

looking forward
Hughes, CIO of Kobie Marketing, says 1.6 billion people are
connected to the Internet today, while 140 million smart
phones will be in use by 2013. At least 65 percent of mobile
to building
partnerships
web browsing takes place on an iPhone, the device that now
accounts for 32 percent of AT&T’s business.

for Dukky.”
Even more damning for ordinary phones: 72 percent of
iPhone users told surveyors in December 2008 that they are
very satisfied with their smart choice, while 52 percent at
Blackberry (RIM) rate echo that sentiment. Other cell phones
have fallen into the 30 percent ratings category, and Nokia,
which clocked in at only 32 percent on the very satisfied —Mike Paine, Dukky
scale, lost 10 percent of market share in the last quarter.

“With the advent of the iPhone we’re seeing a seismic shift

in the market” said Hughes. “We saw a huge opportunity
to integrate that experience into our customer’s loyalty
experience and so we developed iPhone and WAP
applications that integrate into Kobie’s Alchemy loyalty
platform. It has been an overwhelming success from our
clients perspective.”
The medium’s user profile only makes the story better.
The average smart phone user is 35 years old, works more
than 50 hours a week, and has double the average U.S.
household income. Fifty-four percent are college educated,
61 percent have kids, and 53 percent say they don’t have
enough “me” time compared to 40 percent as the national
average. Best of all, 24 percent of smart phone users make
purchases with it today, and 81 percent use their smart
phones while shopping.
Kobie’s studies even show that 94 percent of customers
will complete a loyalty profile over mobile versus the 47
percent who follow through on the web. What’s more, the
idea of registering and not returning is a foreign concept to
smart phone users. After all, they have it at their fingertips to
tinker with when they are bored at the airport, the doctor’s
office, or between seminar sessions at a conference.
The sky is the limit on how companies can use this tool.
Already, the iRewardsCard application allows users to
store their loyalty program bar codes on one iPhone and
simply scan the appropriate one at the point of sale. This
means they carry all of the cards virtually and constantly.
Companies are also experimenting with models that push
information about products and offers to the screen when
the user takes a photo of a UPC. Surveys, point auctions
on rewards, and sweepstakes games are a snap to do on a
mobile platform as well.
The only thing that’s failed so far: GPS tracking inside
specific stores. According to Hughes, the accuracy is still too
weak to be effective as an in-store GPS.
Convinced this is the next frontier? Then your assignment
is to plot a way to “earn attention” via the right content
and the right distribution because customer intimacy—
knowing what the consumer wants and being relevant with
your message—rules this medium. And Hughes assured
his audience that armed with the right loyalty platform
architecture; the technology actually takes no more than two
to four weeks to implement. L

July 2009 | Loyalty Management 65

 FROM THE EXPO
L O Y A LT Y E X P O S U M M A R Y
Going from 0 – 120 MPH
in 18 Months:
How Sainsbury, UK is Using Granular Customer
Data to Shape the Shopping Experience, Build
Customer Intimacy & Drive Customer Loyalty in
One of the World’s Toughest Markets
Putting the infrastructure together to build the Nectar
coalition in the U.K. wasn’t easy, and Mike Blyth, president of
LMG USA (Groupe Aeroplan) will be the first to admit that.
Simply connecting earners and burners alone presents a
challenge, since everyone thinks their points are worth more
than the next guy’s, he laughed.
Yet grocer Sainsbury did just that , pulling together
16 earners and 30 burners that now have 50 percent of
households in the United Kingdom participating. Together
they collect information on 3 billion transactions—and this
is in a country where the gross domestic product is far lower
than the United States.
The marketers’ challenge, of course, is keeping the
program fresh. So far they’ve done this by adding a credit
card, a music store, an insurance program and a wine and
film club. The public expects innovation, not just “me, too”
add-ons everybody else has. In 2007, the Nectar coalition
added an emotional aspect, calling its rewards, “treats you
deserve,” and pumping up the fact these prizes are all about
thrilling experiences. It’s given out more than $1 billion GBP
in rewards value to date.
From a database side, the challenge is even greater.
For starters, Sainsbury opted for speed on the report
runs, coming in at 2 minutes, 32 seconds, a time that
fundamentally changes the business. Now the consumer
package goods brands can access information themselves
without waiting—and everyone from the sales department
to public relations is helping themselves to the facts, figures
and patterns stored here to improve their game. They’re
accessing tings like spend per customer, daily sales, which
stores stock their products, repeat purchasing patterns, cross-
shopping, and even how their product high loyalty buyers
rank compared to category loyal buyers.
You can even see which pop singer album more Kit Kat
Senses bar buyers have purchased. (Psst, the answer is
Mariah Carey.)
“A very well thought out service agreement between the
players is crucial,” Blyth warned. On the other hand, the work
is worth it, as every piece of data helps determine how to
communicate with target customers. That makes NextGen
tools, and NexGen digital content and management crucial.
“If you don’t think through the process, you just have data,”
Blyth added. L
66 July 2009 | Loyalty Management
L O Y A LT Y E X P O S U M M A R Y
Wake Up and Smell the Loyalty:
How Loyalty Metrics Could Have Prevented
Starbucks from Burning the Brand (and Other
Predictive Loyalty Applications)
Certainly the famous coffee company out of Seattle isn’t
the only company to hit hard times. General Motors and The
Gap have also run into problems with brand identification
and the loyalty that fosters.
But when the executive vice president of client services at
Brand Keys, Leigh Benatar, needs an example of how loyalty
models can provide the information CEOs need to steer a
company, it doesn’t get much better than Starbucks.
For starters, coffee is a category Brand Keys has watched
for 12 years now. Its researchers know that four areas drive
customers: location/value, quality, service/surroundings,
and variety/selection, with quality and service weighing
in more heavily. So in 2006, Starbucks was sitting pretty
ahead of Dunkin Donuts and Krispy Kreme. After all, it
brought the European coffee experience with its hand-
ground beans aroma.
But by 2007, sales slipped and research indicated it was
because of the long lines. Corporate axed the hand-grinding,
killed the sofa and stopped the newspapers in an effort to fix
the problem. In essence, they took out the theatre of coffee—
an area loyalty metrics could have warned him mattered to
his customers. Starbucks consumers began rating other coffee
competitors above this once cherished brand.
Oh, the brand tried to introduce new blends and coupons,
but these attempts addressed the lesser categories and thus
didn’t have the impact CEO Howard Schultz wanted. “They
used brand marketing but not brand strategy,” Benatar noted.
By 2008 the service/surroundings category shot up in
both importance and consumer expectations—a normal
phenomenon in Benatar’s experience, with product and
service expectations increasing an average off 24 percent
annually across the board. So Starbucks continued to fall
from grace, with stock prices plunging and many stores
shutting their doors. By 2009, even McDonald’s has surpassed
Starbucks in coffee satisfaction surveys.
Brand Keys’ predictive model also shows premium media
touch points in the same way, helping executives to fine-tune
their marketing channels for the right audience to boost sales.
“The idea is to anticipate various audience segments’ needs,
wants and expectations. Then you can identify the true value
proposition that drives behavior,” he wrapped up. L
 LOYALTY EXPO 2009

L O Y A LT Y E X P O S U M M A R Y

Economic Downturns:
Is Loyalty Dead?

As a marketer, John Bartold ignored economic data. Now,

“Thanks for
as the vice president of loyalty solutions at Irving, Texas-
based Epsilon, he is slicing and dicing the 2009 recession.
everything you
did at the EXPO.
Most loyalty markers know a recession is defined as two
or more quarters of negative GDP. We’ve seen 11 recessions
since World War II, with the expansionary period afterwards
substantially longer than the recession. “It’s like the ocean.
The tide will come back,” Bartold told attendees gathered
Sunday morning.
I thought it was
“The market will turn around
when real wages increase, which
an outstanding
is happening now. Retailers
will start to see an upsurge in
meeting, and
personal spending, so get ready.
We will fight for every customer.” I am looking
Yet, while holiday retail sails were down but not dismal,
gift card sales plummeted because of folks’ perception the
forward to the
companies might not be around to redeem them. It’s just
one tidbit that signals to Bartold and his co-presenter, senior
vice president and Epsilon’s loyalty sector lead Todd Nelson,
next event.”
that this time, the game is changing. Some predict loyalty
marketing could be dead. —Chip Hall, Kobie Marketing
Bartold and Nelson assure the opposite is true.

Certainly, enrollment rates and activity levels on the

consumer side are down, and because 80 percent of a loyalty
program’s cost is awards, CFOs are itching to cut down on
that part of the budget. Bartold understands that reality, but
said savvy companies will put half of the savings from such
changes into infrastructure and future loyalty analysis.
“It’s about best processes more than best practices,”
Bartold said. “Finding out her birthday and sending a card is a
tactic. Everybody does it. It’s more import to understand how
you identify the innovation, not how you copy innovation.”

“The market will turn around when real wages increase,
which is happening now. Retailers will start to see an upsurge
in personal spending, so get ready. We will fight for every
customer,” he warned.
Indeed, in 2000 the marketing model heavily emphasized
economy and emotion. Today dialogue and continuity is
king, Nelson added. Simply putting a name on an email
doesn’t equal “personal” any longer—today returning guests
at a hotel chain want the check-in staff to recognize their
status and treat them like they know the score. That takes
more precise internal data gathering for starters, and a
revamped way to measure results.
Finally, 66 percent of Americans say they intend to spend
more or the same as always in this recession—do you know
who they are in your loyalty program? Once you find them,
drive them to redeem their rewards. After all, there is no
value until there is consumption. One of Epsilon’s clients
saw flat sales until its consumers began redeeming their $10
certificates at the company’s urging. Most spent far more
since the $10 didn’t cover the whole shopping trip, and
boosted sales for the entire period.
“A recession is a stress test to clean out garbage and force
us to grow,” Nelson summed up. L

July 2009 | Loyalty Management 67

 FROM THE EXPO

The Loyalty Expo gets

Social with Twitter
by Bill Hanifin – Hanifin Loyalty, LLC

Whether using mobile

handsets or social media
for communications with
loyalty program members,
the discussion of new
communications platforms
and channels was a hot topic
at Loyalty Expo 2009.

68 July 2009 | Loyalty Management

 LOYALTY EXPO 2009

A
ttending recent conferences around different
vertical markets, I had been struck by the
stark contrast in conference style and

“Kudos to
structure. At one banking event, there was almost
palpable embarrassment in the air when attendees
were asked to raise hands acknowledging their use
of Twitter. At another more digital-friendly event,
interest in the keynote speaker was validated by
the sea of attendees tweeting and texting on their
Mark Johnson,
mobile devices during the presentation.
Erin Raese & the
Loyalty 360 crew
Given these contrasts, the suggestion to engage an
experiment with Twitter at Loyalty Expo 2009 seemed to
make sense. After all, if we are to lead innovation in loyalty

for putting on
marketing for the next generation, how can we do so without
being familiar with the tools of the trade?

The use of Twitter was designed to enable real-time
communications with fellow attendees opting-in as
“Followers” while listening to chosen colleagues and
competitors participants were “Following”. The effort was
complemented by the texting program sponsored by
Vayulogic and allowed conference participants two new ways
to keep abreast of schedule changes, provide evaluations on
presentations, and facilitate networking.
In all, about 40 people were seen posting updates using
the “hashtag” LE360 to designate the event. Hashtags are
a Twitter convention used to make comments (Tweets)
searchable when used in the message. Over 100 messages
were bantered about and there were probably 10 power-users
of the micro-blogging tool posting during the 3 day event.
Given the size of the event, adoption of Twitter could
have been much higher. Reluctance to participate is partly
due to misunderstanding of the tool and its implications for
corporate users. A pre-conference Twitter webinar (Twebinar)
was held to answer many of these questions and I have done
my best to put social media tools in perspective in a recent
post on my blog Loyalty Truth.
During the Social Media Roundtable on Day 2 of the event,
value was at the center of our discussions. A common concern
was how smaller brands would use social media as opposed
to corporate brands to differentiate in crowded markets. The
answers seem to lie in understanding corporate objectives for
social media campaigns.
There are many examples of large corporate brands
(Comcast, JetBlue, Zappos) using social media, Twitter
specifically, to meet customer service needs, offer promotions,
and to listen to what consumers are saying about their
brand. For smaller organizations, the same tool could be a
channel for promotion, public relations, brand awareness, and
networking.
Another recurring question asked “If you had to choose just
one or two tools, what would they be?” Again, the answer is
found in defining objectives. If customer service and primary
a great event
in Florida.
Met great folks;
learned a lot!”
—Mark Frisk,
Thinking Like a Customer
research are top on the list, then Twitter and a Facebook Fan
page might serve the purpose. For more established brands,
building a community (we used to call this a forum) might
be the right venue to encourage candid comments from
preferred customers. If brand building and awareness are the
goals, then a corporate blog might be the foundation of an
evolving social media strategy that would include Twitter and
other tools.
Concerns were express in our Roundtable about the time
investment needed to “do social media right”. The choice of
who sits at the keyboard to execute blog posts and Tweets
was a related issue and most in the group acknowledged that
the value of executive time should be weighed against the
risk of unapproved voices speaking out about the brand.
The fact that consumers continue to be empowered, first
with the information generally available on the internet and
now with tools to share this information at increasing velocity
should be the focus of our energies. Whether Twitter survives
and becomes the Google of its category remains to be seen.
Less in doubt is that micro-blogging and other forms of social
media are here to stay. L

July 2009 | Loyalty Management 69

 FROM THE EXPO: Behind the Brand

Beverly Hollifield
AT&T
Panelist at the 2009 Loyalty Expo! Beverly is responsible for the
strategic development and management of the AT&T Select Business Rewards
program, the AT&T Universal Business Rewards credit card and third party offers for the AT&T
small business customer base. She spearheaded the introduction of numerous exciting enhancements to the
small business loyalty program to include partner points, a mobile application and an online community.

What do you consider your greatest
achievement?
While I am extremely proud of my company and my
accomplishments in the areas of bringing new products
to market and bringing loyalty initiatives to our customer,
my greatest pride would be my children and seeing the
amazing young adults they are today.
Which talent would you most like to have?
The talent I would like most to have would be to be able
to sing. My fellow church members would probably really
appreciate it if I had this talent as well.
Where do you go to keep up to date on the
latest trends in your business?
An avid reader of books, I also read numerous
publications related to loyalty and attend conferences
and seminars related to loyalty and the customer
experience.
What words or phrases do you most over use?
“Wonderful”—A word I feel expresses appreciation
and has the power to make people feel good about
themselves and what they are doing. Wishing someone
a wonderful day will hopefully make the day just that.

Which person has made the most impact in
your life?
My great grandmother is the person who had the most
impact on my life. She was a woman before her time,
the epitome of a “steel magnolia”. She taught me that a
woman could be and achieve anything as long as she
stayed true to herself, her faith, stayed committed to
whatever endeavor she undertakes and maintains the
highest integrity.
What can we expect from AT&T Select Business
Rewards in 2010?
The AT&T Select Business Rewards program is currently
in the southeast. As we continue to see the critical
impact of loyalty initiatives, especially in this economic
downturn, our strategy will be to expand its current
boundaries. At the same time, new enhancements will
be made to the current program to keep it exciting and
relevant to our current member base.

Which book(s) are you currently recommending?
I am an avid reader. Team of Rival about Abraham Lincoln’s
rise to the presidency would be my first recommendation.
It is amazing how little politics have changed over the last
100 years. My second recommendation would be Outliers
by Malcom Gladwell. Interesting and entertaining at the
same time about how successful people arrive at the top
of their field.
What have been your biggest challenges in
2009?
As with everyone, the economic downturn and its
impact on our small business customers is our biggest
challenge. Our focus has been to find ways to provide
services and benefits that would ease the pain of the
current environment for them.

If you were not doing what you do today, how
would you be spending your time?
I would work with children who have been abused,
emotionally and physically, pursuing with the greatest
passion improvements in their rights and the systems
that protect them.
Word of advice for a novice loyalty marketer:
Loyalty Programs should work to strengthen your
relationship with your customers, recognizing them
for what they are already doing with your company.
These programs, in no way, replace your commitment
to deliver best in class products and customer service.
Never loose focus on “what brought you to the dance.”
L

70 July 2009 | Loyalty Management

 Thank you to the 2009
Loyalty Expo Sponsors
The show was a great success!

Media Sponsors: Colloquy | PayBefore | The Nilson Report | RetailWire.com

We are looking forward to seeing you all again next year at the
Omni ChampionsGate in Orlando, Florida, June 6th–8th.

Visit LoyaltyExpo.com for details.

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The Engagement Expo will take a deeper look at the best practices of engagement and
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and how to leverage these as part of your marketing communication mix.

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