Kobie Quarterly Review - Financial Services Edition - Mar 2014

KOBIE
QUARTERLY
REVIEW

kobie.com

FEB 2014

FINANCIAL SERVICES EDITION

8

13

20

FINANCIAL SERVICES
LOYALTY PROGRAMS IN
PERSPECTIVE

HOW YOUR MOBILE ENABLED
LOYALTY PROGRAM IMPACTS
CUSTOMER LIFETIME VALUE

MOBILE BANKING AND
THE FUTURE OF LOYALTY

on.fb.me/17n5zxV

@Kobie_Marketing

linkedin.com/company/kobie-marketing

FEATURED CONTENTS
8

FINANCIAL SERVICES LOYALTY PROGRAMS IN PERSPECTIVE:
The Path Toward Engagement Success
Thanks to mobile technology,
systems that manage terabytes of
data and new channels that can
deliver genuine, personalized
experiences, the loyalty program
manager’s job has paradoxically

AD

grown easier, yet more complex.

13

20

HOW YOUR MOBILE-ENABLED

MOBILE BANKING AND THE

LOYALTY PROGRAM IMPACTS

FUTURE OF LOYALTY: A LOOK

CUSTOMER

INTO THE NEXT GENERATION

LIFETIME VALUE

“Going mobile” means the future of

The smartphone is an ideal mechanism

many financial services programs will

with which to drive loyalty thanks to

focus on some form of mobile strategy.

its unique ability to capture real-time

And those programs will also be heav-

customer insights. The key here is

ily influenced by the latest loyalty pro-

discovering how a
bank’s customers
spend their money
and time beyond

gram and technology developments.

24
THE EVOLUTION OF LOYALTY
AND MOBILE BANKING FROM
INDUSTRY PERSPECTIVES

traditional banking

The question at hand is simple, but

transactions.

critical: How can banks turn what is typically a 2-minute-or-less experience (a
mobile banking transaction) and make
it last 15 minutes or longer, to drive
engagement and newfound loyalty?

KOBIE QUARTERLY REVIEW

3

CONTENTS

FROM OUR PRESIDENT

17

Despite a sluggish economic recovery, Americans continue to shell out ev-

FOUNDATIONAL LOYALTY PRO-

er-growing amounts during high-spending times of the year. Take, for example,

GRAM GUIDELINES: ENABLING

the record $4.7 billion consumers spent on movie tickets during the summer of

TECHNOLOGY

2013 and their total holiday purchases, which have been climbing steadily since

Enabling technology, one of the foun-

2010 after a two-year drop. During the run-up to these free-spending peri-

dational loyalty program guidelines

ods, companies put in many long hours devising sales strategies to maximize

Kobie calls the “Five E’s,” can help

consumer engagement and ROI. Consumers plan ahead, too; relying on friends,

financial services brands advance their

family, social media and mobile devices to research products, land the best

programs, enhance customer experi-

6

deals and discover the ultimate customer experience.

ence and engagement and drive ROI.

TURNING SKEPTICISM INTO

During these times, loyalty programs take center stage – not just in the retail sector, but also in financial

TRUST: THREE THINGS THAT CAN

services. And some exciting recent developments have helped financial services loyalty programs turn the

IMPROVE FINANCIAL SERVICES

image of the faceless, unresponsive bank into one that is driving genuine customer engagement year-

LOYALTY PROGRAMS

22

Of any industry, the financial

MOBILE BANKING AND LOYALTY

services sector might be the most

TRENDS WITH NEW APP

contradictory when it comes to

PHENOMENON

loyalty program effectiveness.

Since the vast majority of Americans

10
GARNERING MILLENNIALS’
LOYALTY: ALL-MOBILE LENDER
GOBANK DRIVES NEWFOUND
ENGAGEMENT
GoBank – considered the first branchless lending institution designed solely
for mobile devices – is tackling loyalty
from the ground up, marketing itself to
Millennials. Just out of beta, the bank
is partnering with Barnes & Noble to
promote its financial services in 555
Barnes & Noble-run college book
stores.

18
HOW FINANCIAL INSTITUTIONS
CAN USE BIG DATA AND CONVERGED DATA SETS TO IMPROVE
CUSTOMER LOYALTY

use traditional banking services, and

• The evolving importance of Big Data and its accumulation and analysis beyond traditional loyalty
metrics. Financial services, like other verticals, are learning to cater holistically to customers. What
can a brand learn about program members outside of how they shop, what they buy and how they
interact with their financial institution? How does their lifestyle impact their loyalty experience?
• The growing need for FIs to get moving on mobile while attracting, engaging and retaining

more than half are smartphone own-

Millennials – a generation poised for significant spending power, but whose loyalty remains up for

ers, mobile engagement is becoming

grabs. Banks need to be where their customers are; and increasingly, that means offering them an

increasingly commonplace. Ultimately,
though, it’s up to consumers to help
banks navigate their mobile needs and
wants.

on-the-go experience that is seamless, intuitive and fun.
• The fundamental rethinking of how a customer’s predicted long-term economic value – commonly
known as customer lifetime value (CLV) – is determined. FIs must embrace CLV as the total amount
customers could spend over time if properly engaged, with transactional barriers removed.

At its most basic, Big Data refers to the
accumulation and analysis of massive

round, including:

amounts of information from many

23

These trends – and additional insights – are at the heart of the Kobie Quarterly Review: Financial Services

digital channels in order to derive gran-

THE FINANCIAL SERVICES LOY-

edition. Its goal is simple: to educate readers about the evolving loyalty landscape in specific industries

ular customer insights and behavioral

ALTY PROGRAM LANDSCAPE:

and where it’s heading. Our Quarterly Review also offers suggestions and analyses on how brands can

preferences. For loyalty programs, it’s

WHERE ARE WE TODAY?

improve their loyalty efforts, discussions on mobile technology and today’s two-way brand-consumer

about turning the data noise into a
clear and actionable signal.

When consumers think about banking,
it often falls into the necessary evil
category. But that stereotype is begin-

11

ning to change: the 2013 Maritz Loyalty

CUSTOMER LOYALTY IN RETAIL

are pleased with their financial services

BANKING: STRATEGIES FOR

loyalty program.

Report found that 73% of respondents

dialogue.
We hope the Kobie Quarterly Review: Financial Services edition broadens your appreciation for what
loyalty programs are all about - a way for brands and customers to truly develop genuine relationships –
relationships that can grow as robust as the most revered financial institutions.
Tell us what you think and keep the conversation going.

SUCCESS
Banks should avoid becoming too preoccupied with generating and amassing data from multiple sources, as they
risk becoming overwhelmed with data
that is peripheral rather than genuinely
useful.

4


Michael Hemsey, President
Kobie Marketing


5

TURNING SKEPTICISM
INTO TRUST

1

Recognize and act on the

nue, top-selling products, trans-

new program, called Buzz Points™,

importance of Big Data: It may

actions, average payment volume

encourages local business owners

come as a surprise but financial

and returning customers.

to become Buzz Point Merchants,

institutions aren’t as proficient

as they should be when it comes
to dealing with Big Data. Traditional consumer transaction data? No

Three Things That Can
Improve Financial Services

problem. Loyalty data? Less so. A

Loyalty Programs

ness of Big Data, but uncertainty

By: Michael Hemsey

recent Celent report finds widespread financial services’ awareover what to do with the data
collected. That’s despite the fact
that 60% of firms believe information is key to their competitive

Of any industry, the financial services sector
might be the most contradictory when it comes
to loyalty program effectiveness.
At its most basic level, loyalty is about trust –
not about program specifics. But recent data
shows that Americans don’t trust their banks
very much. Investors, too, have diminishing
trust in the financial system, according to data
compiled by the Securities and Exchange Commission. As for non-investors and everyday
Americans, only 1 in 4 has faith in big banks.
Bankrate.com (an aggregator of financial rate
information), says that 76% of Americans
remain risk averse when it comes to stock
tinvestments.

advantage.

2

3

Build Trust through an Omnichannel Framework: As with
loyalty programs in other
industries, transparency in

the financial services sector is critical – especially after the housing
bubble implosion and the collapse
of major banks, like Bear Stearns
and Washington Mutual in 2008,
at the start of the Great Recession.
Building that trust and transparen-

52% of the money spent with local
merchants remains in the local
economy, versus only 14% for big
box stores. The campaign relies on
a host of social media, email, web
and mobile outreach efforts – a
clear nod to omnichannel engagement.

er outreach across all marketing

the reality is that consumers can’t

Consider Convergence:

channels and consumer touch

live without credit cards or banks.

Financial services companies

points. That’s what we call omni-

But neither can banks live without

frequently keep customer rela-

channel loyalty – an enterprise-lev-

customers.

tionship data

and loyalty data
in siloed collection centers. But
convergence of
these two data
sets will help
paint a more
granular, accu-

el initiative to

60 information
of firms
believe
%

is key to their
competitive
advantage.

rate picture. So

drive, track,
measure and reward incremental
behavior throughout the enterprise
and customer
experience. The
fact that there

if customer A
ed, but chooses to spend XYZ,

says nothing about their level of

financial services companies can

engagement or activity. Too often,

put two and two together and

loyalty cards - digital or physical -

incentivize transactions via loyalty

accumulate in consumers’ wallets

rewards, possibly with gamified

and on their smartphones without

elements and mobile apps, add-

ever being used.

payments company that many

strictly a financial services example, iZettle, the Swedish mobile
hope will be Europe’s answer to
Square, is a good example of data
convergence. Rather than just
logging credit transaction information, the latest device upgrades
include the ability to analyze what
was purchased, measuring reve-

customer experience, demonstrate
transparency, engage across all
channels and utilize Big Data in a
way that drives enhanced consumer knowledge are the best ways
financial institutions can improve
long term customer loyalty.

American financial loyalty program memberships

ing to the enjoyment. While not

Loyalty programs that improve the

are 400 million

Bringing these challenges – skepticism of banks
and a lack of clarity about loyalty program benefits and their differentiators – together, how
can loyalty programs improve customer trust
and preferences for a financial services brand?


35%. The study also found that

Despite post-recession skepticism,

Yet considering the number and popularity of
co-branded credit cards linked to customer rewards – co-branded cards make up nearly 50%
of all credit card spending – many consumers
are part of financial services loyalty programs
(total membership is around 420 million, including multiple programs) even if they’re not
actively engaged.

6

data, increases local spending by

cy begins with engaging custom-

has B amount of money invest-

Here are a few ideas:

which according to the company’s

But while big banks still evoke
mistrust, smaller banks have fared
better. And some, like Birmingham,
Alabama-based Cadence Bank,
(with branches across the South-

400 million
American financial
loyalty program
memberships says
nothing about
their level of
engagement or
activity.

east) are implementing several of
the above suggestions as part of
their new debit card loyalty program. Cadence builds trust by giving back to the local community
through a “buy local initiative.” The

7

FINANCIAL SERVICES LOYALTY PROGRAMS IN PERSPECTIVE
The Path toward Engagement Success
It wasn’t long ago that loyalty

mobile devices, financial services

managers had a near-impossible

providers have access

task: discover consumer wants and

to an unparalleled

needs in real time – and unob-

amount of data

trusively. This was especially true

which can be

in the financial services loyalty

used to segment

program realm.

customers based

Thanks to new technology like
smartphones, systems that manage terabytes of data and new
channels that can deliver genuine,
personalized experiences, the
loyalty program manager’s job has

on their level of

more rigorous over time. FIs must
also be aware of how
much data they can

An Interview with Don Hughes

What are some of those specific

What are the critical factors for

spond quickly to new ideas, espe-

threats?

a successful financial services

cially ones that are time-sensitive.

The challenge for
pull from other
ﬁnancial services loyalty
sources and use
providers is earning
customer participation while those insights to
honoring those customers’ inform their customers.
channel preferences.

Until recently, data breaches were

Another loyalty man-

brand engagement. Only 10 years
ago these levels of
granular insight
were impossible.

loyalty program?

systemic in nature. Now, a lot more

Financial services loyalty pro-

organized data breaching activity

grams must be cost-effective.

and hacking are occurring over-

That means the monetary value

seas targeting companies within

it brings to the brand exceeds its

North America. We have a custom-

cost of implementation. FIs must

er who experienced what’s known

also push the envelope and find

as a DOS (denial of service) attack

alternate funding sources within a

that came from China. Essentially,

brand’s financial services model,

of open-architecture systems and

it was a massive effort targeting

moving beyond more traditional

their capabilities. How can banks

one particular company and its

incentives like:

entire service infrastructure.

agement technology threat
relates to fraud and the nature

paradoxically grown easier, yet

The challenge for financial ser-

store highly-sensitive cardholder

more complex. While enhanced

vices loyalty providers is earning

data while preventing or reduc-

engagement means greater

customer participation while

ing the risk of a breach? And how

customer behavioral insights and

honoring those customers’ chan-

can that data be protected from

data, that information influx has

nel preferences. How do programs

emerging threats coming from

led to an uptick in fraud and iden-

vie for their customers’ voluntary

Asia and overseas?

tity theft.

participation and on what chan-

zero interest rates

nels? And what type of message

for six months

Kobie Marketing’s Chief Information Officer, Don Hughes, discusses these challenges and opportunities, offering his insights on
how financial services institutions’
loyalty programs can achieve customer engagement success with a
top-notch loyalty experience.
What are some of the biggest
challenges and opportunities

will improve members’ loyalty
experience? Product-specific or
program offers? These are some of
the questions program managers
must answer in order to maximize
the customer experience.

The bottom line

particular credit card

loyalty programs
also require a tech-

cial services institutions, due to
their data-driven requirements,
have long been at the forefront
of gauging customer behaviors,
wants and needs:
• Today, the deck is stacked intechnology and new engagement methods help them collectively chart new paths forward

• 15% off an item purchased

Financial services

ognized, but banks and finan-

creasingly in their favor as new

• 15% discount for opening a

• Zero payments or

It may not be consistently rec-

in customer loyalty.

73%

Even so, security
risks must be reduced
and communication
channel management

loyalty program
approval rating

nology partner that

is a must.
But with a 73%
loyalty program ap-

is innovative by nature
and agile enough to re-

•

proval rating, there’s no
question that banks and finan-

Are there technological challenges

cial services institutions are begin-

that financial services loyalty pro-

ning to find the right engagement

grams face over other verticals?

balance.

for financial services loyalty

FI programs face audit and com-

programs?

pliance challenges that other ver-

The biggest opportunity for
financial services loyalty management comes down to tapping into

ticals don’t. They spend more on
these due to frequently-changing
standards as regulations become

the real-time data stream. With
programs delivered via “smart”
8



9

GARNERING
MILLENNIALS’
LOYALTY:

CUSTOMER LOYALTY IN RETAIL BANKING:
Strategies for Success By: David Andreadakis
The following is reprinted from Datamonitor Financial’s recent report, Customer Loyalty in Retail Banking:
Strategies for Success which includes Kobie Marketing insights as related to financial services brand loyalty.

All-Mobile Lender GoBank Drives
Newfound Engagement

Once banks have mastered the use of internally-gen-

of more qualitative, unstructured data that can be

erated data, they can then consider using third party

gleaned from external sources, such as social media.

data on their customers. Retailers and merchants are

By: Bram Hechtkopf
Loyalty program providers, Kobie

Much discussion around big data has involved the use

However, although such sources can potentially yield

an obvious source, given that they have access to

valuable information in the longer term, banks should

detailed transactional data. Banks should give serious

focus on easily quantified, structured data for now,

consideration to forming strategic partnerships with

GoBank’s emphasis on mobile

as this will have a much more immediate impact on

retailers such as supermarkets, as this can give them

customer service.

an immense amount of insight into their customers’

of mobile phone users, they also

included, often advise young

comprise nearly half, 44%, of those

makes sense not just for Millen-

businesses that loyalty from the

who do their banking on mobile.

nials, but for all next-generation

get-go is much easier to implement than loyalty after the fact.
Customer rewards programs work
best when they are organically and
seamlessly wedded to the brand
promise. This is especially true
when it comes to “legacy banks” –
a financial services industry subset
that has historically struggled with
best-in-class customer engagement as a transactions-only perception persists.
But that perception is beginning
to change.
Launched last month, GoBank –
considered the first branchless
lending institution designed solely
for mobile devices – is tackling
loyalty from the ground up, marketing itself to Millennials. Just
out of beta, the bank is partnering
with Barnes & Noble to promote

While GoBank hasn’t announced
any specific loyalty programs just
yet, it is already employing several
highly effective loyalty-generating
tactics, including:
• Enhanced transparency and customer empowerment: members
can choose how much they want
to pay for the service – prices
range from $0 to $9 per month.
There are also no ATM withdrawal fees, no minimum balance
requirements and no overdraft
penalties.
• Extreme dedication to the appbased customer experience:
the fact that GoBank has been
in beta testing since January
speaks to that dedication.
• A budgeting tool: This is likely

its financial services in 555 Barnes

to include gamified elements,

& Noble-run college book stores.

making saving money a fun and

Mind you, this is the demographic

engaging experience rather than

least likely to be branch bank-af-

a boring chore.

filiated, yet also the most mobile-savvy. Underscoring the point:
a 2011 Federal Reserve survey
found that while those in the
18-29 age group make up 22.4%
10


• Integration with social media:

According to Kobie Marketing, a global loyalty

consumers. Much has been written
of late regarding the effectiveness of mobile wallets, the
future of virtual
currencies and
the need for

18-29
MAKE UP
22.4%

marketing agency, banks should avoid becoming

age
group

of mobile phone users

lifestyles and habits.
In the US, Kobie Marketing highlighted Citizens Bank

too preoccupied with generating and amassing

as a strong performer in this area. Citizens Bank has

data from multiple sources, as they risk becom-

a large number of in-store branches, with around 170

ing overwhelmed with data that is peripheral

outlets operating within Stop & Shop supermarkets,

rather than genuinely useful.

and is starting to make use of Stop & Shop’s detailed
transactional data. This will allow the

Therefore banks should prioritize using

bank to, for example, fill the gaps

data that can be clearly linked to be-

industry standardization. Turning
mobile banking into a ubiquitous

loyalty; these are generally hard

and engaging experience – sup-

numbers on demographics,

ported by a loyalty mindset – is a

product holding, channel

vital first step in shifting consum-

usage and transactions,

ers’ mindsets, heralding all-mobile

among others. By

customer engagement.

looking at all these

in its debit card data, where it

havioural and attitudinal drivers of

But what’s next for GoBank? Attracting new members, first of the
Millennial demographic and then
beyond, would seem most logical.
With about 10,000 customers so
far, the bank must grow rapidly if it
hopes to survive.

data in the whole,
banks can start
to build a holistic,
360-degree
view of their
customers,
gain a much

previously only had access to
top-level information such
as the time, location and

…banks
can start to
build a holistic,
360-degree
view of their
customers

fuller understanding of their

And while pay-what-you-want fee

act accordingly.

entice in-debt college grads, this
probably needs to be adjusted.
Instead of removing the offering,

bank customers can send money

though, perhaps it should remain a

directly to other individuals via

on the specific
items purchased
within each transaction, Citizens
Bank can combine
this with its existing
CRM data to make
relevant offers to their
that pursue this route
will be able to gain a competitive

advantage over their rivals, at least until they
follow suit.

customer perk for those who have

Facebook (or email).

transactional data

With access to data

customers. Other banks

Banks should form partnerships with
retailers to access valuable

transaction.

very accurate and

financial requirements and

structures might be a good way to

total value of each

helped establish new accounts and
future brand ambassadors.

11

HOW YOUR MOBILE-ENABLED LOYALTY PROGRAM IMPACTS
CUSTOMER’S LIFETIME VALUE
By: Michael Hemsey

It wasn’t long ago that being loyal to a bank or finan-

customers spend their money and time beyond

Banks and FIs must be invited into

While not yet mobile-enabled,

cial institution was a given. Like other establishments,

traditional banking transactions. And, only by giving

numerous aspects of consumers’

League of Legends offers sev-

the bank was a fixture or centerpiece of the local

customers genuine offers that speak to them on their

lives, so my advice is to proceed

eral game-related apps like LoL

community.

preferred channels, can banks broaden the loyalty

gently. Where do consumers’ lives

Connect, a chatting program that

experience.

increasingly exist? Social media.

lets users communicate in real

Whether it’s on Facebook, Twitter,

time. Such developments open the

Instagram, Pinterest or through

door for additional gaming (and

text messaging apps like Kik and

monetization) opportunities linked

WhatsApp, mobile is an excellent

to mobile-enabled bank loyalty

way for FIs to learn about their

programs.

Today, however, banking culture in the U.S. is radically
different. Instead of a personal relationship between

Driving loyalty also comes down to assessing a cus-

the teller and customer, many banks now charge for

tomer’s monetary worth. Fortunately, there’s a way to

that level of service – or have eliminated tellers alto-

express this need known as customer lifetime value.

gether. The result is strained relations between banks

CLV, as defined by the American Heritage® Dictionary

and their customers. According to a recent Temenos

of Business Terms, is “the [predicted] economic value

and Deloitte report, nearly a third of senior banking

of a customer during the life of the customer’s asso-

executives see retaining customers and their loyalty as

ciation with a business. An estimate of customer life-

the greatest challenge.

time value allows a business to determine the amount

While mobile channel innovation was cited as a top

of money that can be spent on acquiring and retaining

customers’ interests and service
them at every moment of their
lives, regardless of their physical
location.

ideal mechanism with which to drive loyalty, thanks
to its unique ability to capture real-time customer
insights. The key here is discovering how a bank’s

What we are beginning to see is

Consider a 22 year-old Millennial,

airlines moving beyond creating

this definition is only partially accurate. At Kobie, we

part of a generation that spends

apps that simply allow passengers

consider CLV as the total amount customers could

14% more time on mobile devic-

to book flights or check the status

spend over time if they’re well-engaged and transac-

es per week than any other age

of their accumulated rewards

tional barriers are removed. Mobile’s ability to simpli-

group. Properly engaged, these

points. Airlines are starting to link

fy banking is only the beginning of its CLV potential.

individuals could be customers

their mobile engagement tools

for decades. More than just a

with seatback display screens and
entertainment systems, while flight
attendants are using tablets to
access passenger profiles.

through exciting and original loyalty programs.

These actions are helping them
create more accurate pictures of
what their customers might want

Take American Express and its

to purchase before they even

partnership with the makers of the

board the plane. Knowing what

popular online game, League of

customers want before they know

Legends. The credit card com-

it themselves, collected and deliv-

pany recently issued a League of

ered via mobile, is an engagement

Legends prepaid debit card as

model that banks could easily

part of its RP+ program. Activat-

emulate.

ing the card allows users to earn
virtual Riot Points redeemable for
in-game rewards as they purchase
“real-world” items and services
12

2

Engaging customers doesn’t
mean ‘how do we make them

give banks and FIs their bottom
dollar?’ Focus on providing loyalty
experiences that make your customer more likely to spend their
money at one place versus some-

3

lifetime value comes from airlines.

a customer.” Though from our company’s perspective,

tivizing increased customer spend

they’re already on.

where else.

banking can be monetized, incen-

gagement. That’s unfortunate as the smartphone is an

from the engagement path/s

channel maximizing customer

make on-the-go deposits, mobile

maximize this channel for long-term customer en-

Don’t tear your customers away

Another example of the mobile

mechanism to check balances and

priority by these executives, many banks have yet to

1

The ABCs of CLV:
A Formula for Consideration
Three simple, yet important pieces
of advice to consider:

Don’t make engagement
more difficult. Be convenient

and focused on maximizing those
coveted consumer “in-between
times.”
For instance, if a customer wants
to invest in a stock while walking
to a meeting, then make this mobile experience less onerous. That
means reducing the number of
times a customer has to enter multiple passwords or the number of
verification steps needed. Sometimes a customer will forget a first
pet’s name from when they were
six years old and they don’t want
to be bothered with remembering
excessive minor details. Therefore,
it’s banks’ and FIs’ responsibility to
reduce the number of hoops their
customers must jump through.
Ultimately, customer lifetime
value isn’t just marketing jargon.
It’s based on an actual formula.
continued on page 16

13

$

$

$

$

$

$

$

$

$

$

63%

continued from page 13

Rather than relying on traditional calculations, (summing up how much
a customer spends across all channels and using that as a predictor for

FOUNDATIONAL LOYALTY PROGRAM GUIDELINES:
Enabling Technology By: Don Hughes

future worth), I suggest employing the Fader-Hardie model, Probability
Models for Customer-Base Analysis. Based on the work of professors

A recent survey revealed that

gy and technological agility really

emotional status and psycholog-

Peter Fader and Bruce Hardie, their business model considers ex-

a majority of consumers, 57%,

mean? It’s not just about acquir-

ical triggers for enhanced brand

pected customer lifetime value a potentially richer dataset than past

would travel in driverless vehicles

ing technology partners. It’s also

engagement.

transactions alone:

controlled entirely by computer.

about fostering a corporate cul-

Considering the rate at which hard

ture where technology is seen as

drives crash and computer glitches

the solution and not the problem

cost businesses millions per year,

of delivering a better loyalty ex-

that’s an incredible finding. The sta-

perience. C-level buy-in is a must

tistic also demonstrates consumers’

from the beginning, but technol-

powerful faith in technology even

ogy enabling within the loyalty

when their lives are at stake.

program construct also requires

E(CLV)=f E[v(t)]S(t)d(t)dt
∞
˚

Complex calculations aside, bank and FI customers are a complicated
mix of interests, spending habits and shopper desires.
Encapsulating all of that diversity into a single formula that tries to
predict long-term customer value is far from easy. But it’s an important start – and mobile technology is the financial services industry’s
most valuable tool on two important levels. Mobile, as a portal to social
media, is an excellent metrics gatherer and brand educational device.
Banks and FIs learn about who their customers really are beyond banking transactions. And increasingly, it’s the platform where banks and FI
loyalty programs must exist if they are to truly excite customers.
I spoke of customers’ preferred channels above. More often than not,
mobile is that preferred channel. If banks and FIs reduced the steps
consumers need to use mobile banking effectively as well as send

This belief, however, is more than

frequent internal review across all

true in today’s automotive
industry as it is for financial
services and their ability to
implement effective customer rewards programs. Which
is why enabling technology, one of the foundational

Loyalty programs today
want a complete picture
of a customer’s emotional
status and psychological
triggers for enhanced
brand engagement.

cently announced it was to issue
cards decorated with scenes
from League of Legends, an
online multiplayer game which
includes the in-game purchase
of real-world items. Cardholders
will receive 1,000 Riot Points for
1,000 points for their first 10
in-game purchases – with
10,000 points awarded to
those who link their card to a
checking account.
Considering the need for
financial services brands to
better engage Millennials,

loyalty program guidelines
Kobie calls the “Five E’s,” can help

The credit card company re-

signing up plus an additional

faith. Technology has become necessity. That’s as

Case in point: American Express.

this would seem like an excit-

departments in de-siloed ways

ing, fun and data-rich endeavor.

their loyalty program, enhance

One of the biggest ways financial

customers’ experience and en-

services institutions are enabling

Ultimately, enabling technology

It’s time for banks and FIs to once again become fixtures of their com-

gagement and drive ROI – all in an

technology comes down to their

munities – not with physical tellers, but by embracing the latest mobile

omnichannel manner.

use of traditional and non-tradi-

rewards and offers based on a more holistic customer view, true customer lifetime value might be much greater than what the traditional
formula predicts.

technology has to offer.
Today’s young adults represent potential decades of brand allegiance.
Now is the time to begin courting their loyalty.

financial services brands advance

The enabling of both established
and emerging technologies can
make what happens under the
“digital loyalty program hood”
work seamlessly and effectively
while remaining robust enough to
be scalable as a business expands.
This requires a third-party loyalty
partner that is technology-agile –
innovative by nature and able to
adjust and respond to new ideas,
especially time-sensitive ones.
But what does enabling technolo-

16


tional data. Traditional data sets
include customer transactions and
financial information. Now, thanks
to the real-time data stream delivered to banks via smart mobile
devices, additional customer
metrics such as purchase location,
level of social media interaction
(either directly with a specific
loyalty program or generally with
social circles) and degree of brand
engagement are available. At their

is more than just flicking a switch
or pressing the “power button” to
launch a new tech-savvy loyalty
program. It’s about fostering a
culture where exciting and engaging ideas like the American
Express example can take root
and then take flight. Compare the
marketing and branding differences between the American Express
that first brought consumers the
“don’t leave home without it” ad
campaign in 1975 to League of
Legends.

core, the best financial services

They’re in an entirely different

loyalty programs today want a

league, don’t you think?

complete picture of a customer’s

17

HOW FINANCIAL INSTITUTIONS CAN USE
BIG DATA AND CONVERGED DATASETS TO
IMPROVE CUSTOMER LOYALTY By: Bram Hechtkopf

won’t be a disconnect between

emotional chord with the consum-

While banking on big data loyalty

overall loyalty satisfaction and

er – so much so, that under ideal

success, privacy is a big must

customer experience and moder-

circumstances loyalty becomes a

ately high program dropout rates.

moral obligation.

Here’s how:

Of course, adopting these techniques isn’t easy. Considering
consumers’ data privacy concerns

• Banks should be thinking more

can learn about non-banking

– 89% of US adults worry about

like other verticals, marketing their

transactions only if they partner

their online privacy and 43% do

uniqueness in omnichannel ways.

Read a newspaper, listen to a streamed

• Speaking of shopping, banks

with other verticals, like retail

not trust businesses with their

They should also expand beyond

stores, grocery chains and travel

personal information – data con-

transactional datasets to include

and hospitality brands, converg-

vergence must be accomplished

radio broadcast or go online and you’ll find

consumer “lifestyle metrics.” That

ing datasets under one, de-siloed

carefully and with the right legal

the term Big Data still scoring major press

way, a bank can offer something

roof. That’s because this – rather

safeguards in place.

truly distinct. For example, a cus-

than a bank branch or mobile app

tomer donates 2% of his or her an-

– is where most consumer trans-

nual income to charity. Rather than

actions live and evolve. Grocery

distributing generic points toward

stores are a great example as

experience for financial services brands and

discounts via branded credit cards,

food purchases reveal a tremen-

why is all of this important?

banks can incentivize loyalty by of-

dous amount of personal shopper

fering a selection of charities for this

information and lifestyle habits. Do

customer to choose from and do-

your financial services customers

nate. This demonstrates a financial

buy ethnic foods? Do their travel

institution’s tacit recognition of the

habits suggest that they fly to

and a topic of significant conversation
across multiple industries. But what is Big
Data, what is its relevance to the customer

Let’s start with the first question.

and reward incremental behavior

grams become mechanisms for

customer as a person with interests

certain regions of the world where

At its most basic, Big Data refers

throughout the enterprise and

disposable cash and there’s no ra-

beyond simple banking transac-

those dishes are indigenous? Big

to the accumulation and analysis

customer experience – to market

tionale for customers to use them

tions. As for customers, it tells them:

Data can and does measure these

of massive amounts of informa-

themselves as distinct brands.

beyond their face value.

“this financial institution cares

tion from many digital channels in

Doing so evokes genuine loyalty

order to derive granular customer

based more on reciprocal emo-

insights and behavioral preferenc-

tional status and less on transac-

es. It’s about turning the data noise

tional behavioral triggers.

While the 2013 Maritz Loyalty
Report found that 73% of respondents are pleased with their finan-

about the ‘whole me,’”
driving a new level of
loyalty commitment.

types of metrics.

89%

The key for banks is to

tailored customer-centric rewards
and charity-of-choice donation.
The Royal Bank of Canada (RBC)
has also upped its loyalty game
and now offers the purchase of
wide-ranging products – including gifts for pets like carriers, dog
feeders and “doggie loungers.”

Fargo Rewards® has a subsection
dedicated to a variety of green

to organize the merg-

products like reusable shopping

services customer profile look like?

half, 53%, dropped out of at least

adopted by many

companies are well-versed in some

And what motivates the custom-

one loyalty program in the last

verticals as an ef-

aspects of Big Data – electroni-

er’s continued brand loyalty? For

year across all verticals, including

fective way to engage

cally gathering customers’ trans-

some, that brand buy-in is based

financial services. This is not the

members and customers.

action histories since the 1960s

on incentives like higher interest

most encouraging picture.

Gamification’s particular strength

accesses that bank’s mobile app,

and 70s – the use of that data to

rates on savings accounts, fraud

(in this context) comes down to

there will be an offer incentivizing

fuel competitive advantage has

protection, the reimbursement

graphic visualization. Let’s say that

their travel on an airline which flies

been limited. For financial services

of ATM fees or features such as

in addition to offering customers

to that region or offers discounts

institutions to continue reaching

smartphone apps that allow check

charities from which to choose,

for signing up additional family

and engaging customers with

deposits and other transactions.

a financial services provider also

members – especially if they’ve

relevant information, it is critical

For others, bank loyalty is more

Used correctly, however, Big Data

showed images of how many mos-

just moved to the US. And to think

they broaden their data horizons

about the path of least resistance.

can fundamentally change this

quito nets or lanterns or bottles of

this level of granular analysis and

using the latest CRM software.

Young adults join their parents’

picture by revealing how to better

fresh water their donations direct-

improved customer experience

That means deepening customer

bank or become customers by

earn customer loyalty beyond ATM

ly purchased. Measures like this

began with what a shopper pur-

relationships using omnichan-

default as one institution merges

withdrawal fee reimbursements,

turn banks into places of genuine

chased in Aisle 6.

nel tactics – an enterprise-level

with another. The result is that

free checking or family history.

experiences and not just places to

initiative to drive, track, measure

bank cards and their loyalty pro-

That way, in future surveys, there


of the above tactics, including

latest CRM software

While many financial services

18

Advantage, already employs some

er profiles, using the

is gamification,

of US adults
worry about their
online privacy

deposit money. It also strikes an

revamped loyalty program, Perks

of eco-friendly purchases, Wells

• Another example

and lackluster engagement.

stance, Bank of America’s newly

And, recognizing the dollar value

gram, it also found that more than

loyalty inertia – lukewarm support

can be truly impressive. For in-

their existing custom-

What does the loyal financial

Instead, it sounds a lot more like

successfully struck, the results

combine that data with

cial services sector loyalty pro-

into a clear and actionable signal.

But if that delicate balance is

er. That ensures the

next time a customer
walks into a bank branch or

totes, bicycles and battery-powered chainsaws.
Ultimately, loyalty is about trust
and transparency first. And it’s
in brands’ interests not to abuse
Big Data and converged data sets
but channel them into their most
effective consumer engagement
tool. Doing so allows financial
services brands to expand beyond
their traditional loyalty offerings
and provide customers genuine
experiences they never would
have believed could come from a
bank.

19

MOBILE BANKING AND THE FUTURE OF LOYALTY:
A Look into the Next Generation

An interview with Michael Hemsey

Say goodbye to boring bank-

of rapid catch-up. In 2012, accord-

influenced by the latest loyalty

following: focus on the utility of

branch features or products. But,

ing and get ready for an entirely

ing to the Federal Reserve, nearly

program and technology develop-

those applications from a consum-

again, this is poised to change as

new experience. That’s because

21% of survey respondents said

ments. Kobie’s president, Michael

er perspective, discuss the enter-

second-generation mobile apps

banks are learning how to attract,

they used some form of mobile

Hemsey, shared his views on

prise from the bank’s perspective

evolve, helping consumers make

engage and retain customers

banking services during the pre-

mobile banking and loyalty in an

and dabble with social media.

use of additional enterprise

through mobile outreach while

vious 12 months. Younger respon-

interview with Robert McGarvey

turning to innovative loyalty pro-

dents were even more likely to

of The Credit Union Times for his

grams that better speak to chang-

use such mobile financial services

article, “Mobility Matters: Getting

ing consumer habits – especially

tools with nearly half of the 18-29

to Mobile Banking 2.0.”

as they relate to smartphones and

demographic “going mobile.”

tablets.

Below, Michael Hemsey explores

But what does “going mobile”

how wedding loyalty and expe-

Just as other industries have come

really mean? It means that the

rience-driven engagement to

to embrace mobile as a powerful

future of many financial services

mobile will help move tablet and

engagement and metrics-gather-

programs will focus on some form

smartphone usage to the next

ing tool, the banking and financial

of mobile strategy. And those

phase in financial services loyalty

services industry is playing a game

programs will also be heavily

programs, among other things.

What are the specifics of utility, enterprise and social as they

Banks’ usage of social media via

mention above?

mobile is also set for change,

From a utility perspective, banks
are coming out with capabilities
such as mobile bill pay, mobile
POS enablement and the ability
for consumers to check in to their
bank, much like they already do
at a restaurant.
Doing so helps

and what does the next genera-

banks review

tion look like?

customer trans-

tend to follow and not lead when
it comes to creating mobile
engagement. That way, they can
see what others are already doing
(successfully) and how they can
improve mobile offerings.
Banks are also behind the curve
when it comes to tablet-enabled
apps – applications designed specifically for these devices despite
rapid adoption rates. Tablet engagement can be far more sophisticated and intuitive. That’s why I
think we’ll start to see an uptick in
investment for both smartphone
and tablet apps. To categorize the
short-term and longer-term innovation goals, banks should do the
20

management.

relate to the innovation goals you

How is mobile banking changing

As a general statement, banks

services like personal wealth

action data and in
turn tailor rewards
or incentives for
continued bank

though I believe this is a longer-term development. Mirroring
the efforts of other industries,
social media is highly effective at
incentivizing and promoting brand
engagement. Its greatest potential,
however, is not

…banks are coming out
with capabilities such as
mobile bill pay, mobile
POS enablement and the
ability for consumers to
check in to their bank…

apps are moving in that direction.
Banks must also be more sophisticated in how their loyalty and
incentive programs integrate the
overall experience. Today they can
be very disconnected. The third
utility-related development uses
mobile tools like scanning receipts
and taking advantage of voice-activated features.
Regarding enterprise, many banks

ing the online
conversation,
but understanding and acting
on what other
people are
saying about

loyalty. Real time
is key and I think banks and most

only monitor-

the brand.
Twitter, Foursquare, Facebook,

The Takeaway
Banks know they have some
catching up to do in terms of
mobile innovation. But, as seen
here, the industry is very aware
of what’s possible and what other
verticals are doing. It is only a
matter of time (and investment)
before banks and financial institutions – led by consumer demand –
upgrade their mobile offerings.

Instagram, Snapchat and Pixnet

What’s next? How to move beyond

are all good examples. In July of

setting the mobile banking loyalty

this year, Pixnet became Taiwan’s

stage, what industries are doing

fifth most-visited website, and in

mobile loyalty well and how banks

October, Snapchat launched its

can model their “mobile 2.0”

first commercials – a clear sign

approach.

of its growing popularity. Crowdsourcing is another way banks can
better unite their customer base.
But that, too, might be further
down the road.

can’t even tell consumers where
the nearest ATM is relative to their
location, nor can they list bank

21

MOBILE BANKING,
LOYALTY TRENDS AND THE
APP PHENOMENON
An interview with Michael Hemsey

THE FINANCIAL SERVICES LOYALTY
PROGRAM LANDSCAPE:
Where Are We Today?

An Interview with Don Hughes

The slogan used to be “there’s an

Mint is definitely a good idea. But

the time. Kobie works with a lot

When consumers think about banking, it often falls into the necessary

On the up side, consumers are

app for that.” But for the banking

there’s always a risk: if you build

of the banks that do so. They’re

evil category. But that stereotype is beginning to change: the 2013 Maritz

much more open to interacting

and financial services industry, it’s

it, will consumers come? In this

continuously focused on how to

Loyalty Report found that 73% of respondents are pleased with their

with financial services institutions

not so much an overused expres-

case consumers will come. Why?

provide a better-integrated loyalty

financial services loyalty program.

directly through their smart-

sion as it is a statement that raises

Because the app lends itself to

experience. On a macro level, the

a fundamental question. Is there a

more creative thinking than we’re

ability to provide offers germane

mobile banking app out there that

seeing elsewhere. Even simple

to user interests and spending

can genuinely engage customers,

things like alerts and the notion

habits is essential.

increase conversions, reduce costs

of security, fraud and privacy. The

and simply be fun to use, mimick-

banking industry is central to all

ing the types of app experiences

of these issues and using mobile

found in other industries? At least

to send account alerts – especially

one app, Mint, is trying to address

in households with multiple credit

these capabilities.

and debit cards – is imperative.

Someone using their mobile banking app for 15 minutes might strike
you as odd. What can they be
doing for all that time? But that’s
where banks have to get. Do you
have a sense that banks realize

Another critical question

their apps are primitive and

is how a well-devel-

that it’s time to raise the

oped loyalty program
can be used to further
enhance the customer experience. And is
it really possible for a
mobile banking app to
be as fun and as exciting as the latest mobile
games? The answer may

Is there a mobile
banking app out
there that can
genuinely engage
customers…?

surprise you.
Michael Hemsey discusses how “plain vanilla apps” won’t
get the financial services industry
anywhere.
The folks at Intuit® are hoping to
get consumers to spend a lot of
time using their app Mint, which
is a personal financial manager
that’s been pretty successful. Is
it a good idea? Can it be more
successful?

22


bar? I heard a senior executive at JP Morgan Chase say
exactly that. Their goal is to

programs evolving? Will their user
frequency increase?

including the benefits Wof new engagement channels and connected consumers and the challenges of economic regulation and security
threats.
What does the financial services loyalty landscape look like today?
The current landscape can be categorized in two areas: single-product and multi-product programs. Single-product
cial institutions send account-level data into the loyalty
particular person (whether using credit or debit cards),
but typically covering a single product.

app. He’s not there yet. But

process of implementing multiple financial products into one

they’re trying. Do other

loyalty program. These are less common now, especially after

banks think that way?

the Durbin Amendment, which reduced debit card interchange fees

what we’ve been discussa more social (and fun) mobile
banking experience. Some banks
are thinking that way, but not

and what happened to loyalty

enough. Banks tend to rest on

programs, banks have not turned

their laurels until someone comes

away from offering loyalty and

out with the newest offering and

incentives for use of their debit

then they follow versus lead.

and credit cards. Bank loyalty pro-

Whether it’s for IT reasons or oth-

grams need to be more relevant.

erwise, many banks are risk averse.

nologies, banks are able to send
highly personalized location-based
ties for additional loyalty earnings
to consumers’ smartphones,
whether they’re in the
bank lobby or miles
away.

respondents are
pleased with their
financial services
loyalty program

wherein the bank or financial services institution is in the

ing – providing more utility and

CRM, mobile and payments tech-

73

Multi-product programs are an enterprise approach

The JP Morgan reference is

convergence and new loyalty,

%

loyalty programs are batched in nature. This means finanenvironment, as well as all the transactions against that

phones. Thanks to both channel

offers and merchant opportuni-

as the best-selling game

With the debit interchange issue

Mind you, banks work on this all

with me about the loyalty landscape within the financial services sector,

build an app that’s as good

very insightful. It speaks to
How do you see bank loyalty

Don Hughes, Kobie Marketing’s Chief Information Officer, recently talked

(usage fees charged to merchants), was passed in 2010 and multi-product programs fell out of favor. The best example of an enterprise loyalty
environment would be Capital One, leveraged by the Tesus loyalty pro-

What are some
of the biggest
loyalty challenges facing the
financial services
industry?

Technical complexity
and auditing requirements,
as well as security and compliance
costs, are on the rise costs are
on the rise. Every year, additional

gram that I designed while at that company.

audit requirements for PCI, DSS

What has impacted loyalty programs within the last 2-3 years?

of performing loyalty services.

From an overall industry perspective, the global economic crisis was
probably the most significant negative impact with banks being pulled
out of service as a result of their debt-to-asset ratios. Regarding loyalty
programs specifically, the Durbin Amendment had one of the largest impacts. Debit card-linked loyalty programs were quite widespread prior to
2010 – and the fees merchants paid partly funded their success. However,

or SSAE16 increase the base cost
At the same time, programs are
experiencing revenue leakage due
to the decrease in earnings from
interchange reductions. All of
these factors present significant
challenges to the industry.

most financial services loyalty programs have now eliminated them and

Service providers also need to get

have sought additional services, such as couponing, discounts and daily

smarter about how they opera-

deals for their debit card loyalty propositions.


23

THE EVOLUTION OF LOYALTY

AND MOBILE BANKING FROM

Conclusion

INDUSTRY PERSPECTIVES

Will mobile banking apps become the most frequently downloaded apps in Apple’s app store or Google Play,
rivaling the coolest games? That’s unlikely, at least anytime soon. But the good news is that the financial services

An Interview with Michael Hemsey

industry is clearly beginning to think creatively and is rapidly learning from other industry mistakes and successes. Whether 2013 or 2014 becomes the year where mobile banking apps take on Siri-like qualities and include
social media real-time engagement also remains to be seen. But with thought leaders in the financial services,
loyalty and IT industries addressing these challenges, mobile 2.0 for banking can’t be too far off.
Since the vast majority of Americans use traditional banking services and more than half are smartphone owners, mobile engagement is becoming increasingly commonplace.
Ultimately, it’s up to consumers like us to help banks navigate our mobile needs and wants.

Considering that the average

doing so. Granted, bank experiences

or less. Spending time on a mobile

cost per consumer transaction

aren’t motion picture events, but the

banking app is not like shopping on

same social media engagement rules

the Gap’s app. Your thoughts?

at a brick-and-mortar bank is
$4 compared to just $.08 on
a mobile device, banks should
be strongly incentivized to

still apply. Imagine a Wells Fargo customer who has a great banking experience. Why shouldn’t that individual
earn rewards via a loyalty program,

Given banking’s importance, you
would expect people would spend
more time on mobile bank apps. But
it comes down to how the informa-

convert more of their custom-

promoting his or her experience and

ers to the mobile channel.

encouraging others to join?

But how successful are they in that

The restaurant industry is also a

it let users pay bills (usually, that’s a

endeavor? And how can banks turn

mobile leader. Restaurants, of course,

given)? Does the app let customers

what is typically a 2-minute-or-less

lend themselves to social experienc-

receive offers based on their stand-

experience (a mobile banking trans-

es, starting with the fact that people

ing and relationship with the bank?

action) and make it last 15 minutes

like to take pictures of their food,

Can they access mortgage informa-

or longer, driving engagement and

who they’re dining with and where

tion? Wealth management services?

newfound loyalty?

they’re eating. TGIF and BJ’s restau-

An auto loan, a credit card, a debit

rants are strong examples of social

card?

Banks can and should do a lot more,
says Kobie’s president, Michael
Hemsey. The following interview with

tionalize the work they do on behalf of financial services clients. “Doing less with more” is here to stay and the
reality is that it’s extremely easy, especially within a single-product loyalty environment, to switch from one loyalty provider to another. There are a lot of loyalty startups that will disappear within a few years-as getting into
the game is so difficult today, compared with five or ten years ago.
The bottom line
While the global economic crisis forced many bank closures
and the resulting Durbin amendment (an addition to the
Dodd-Frank Wall Street Reform and Consumer Protection
Act of 2010) has severely reduced merchant interchange fees,
these challenges have also forced some new loyalty program
innovations. But that innovation isn’t enough. Financial service
loyalty programs must push beyond existing thinking to drive
engagement with increasingly tech-savvy customers.

integration and banks should follow
their lead.

tion is presented. Does the app allow
users to set spending goals? Does

Most banks have yet to take the
mobile maturity step to make their

Michael reviews which industries

The telecom space is more chal-

app a place to spend 20 minutes and

are doing mobile well and how the

lenging. People don’t think of their

have fun.

banking sector can best emulate

computer files or Internet products

their success.

the way they think about going to a

What kind of industries are ahead of
banks in term of mobile apps, and
where can they look to learn?
From a social perspective, the entertainment industry does rather well.
Take movie theater apps. One of our
clients does an excellent job incentivizing users to promote its brand.
Consider the very specific use-case:
consumers see a movie. Then they
post their ticket stubs on social me-

restaurant. And yet companies like
Verizon and Comcast would love to
find a way to have that social integration work with their brands.

Although 20 minutes might sound
like a long time to be using a mobile
banking app, the average American
spends over two hours per day on
actual mobile gaming. With that in
mind, one-third of an hour doesn’t

That said, existing bank app func-

sound so hard to achieve. How else

tionality is already solid. But more

can other industries help banking

work is required. Mobile features like

reach these lofty mobile goals?

scanning and voice-activated questions and answers (like asking Siri
where the nearest Wells Fargo ATM
is) must be included.

In Mobile Banking and the Future of
Loyalty, Michael Hemsey discusses
the merits of the financial management app, Mint, and how it can be

dia and provide reviews of the film,

on their app, but often the engage-

consumer engagement.

while they earn loyalty currency for

further enhanced, driving ROI and

sharing them with friends. All the

24

Banks want customers to spend time
ment lasts for as little as two minutes


25

ABOUT THE AUTHORS
Michael Hemsey, President
As President of Kobie Marketing, Michael is responsible for leading all facets of the loyalty marketing organization 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, marketing, 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 relationship management teams serving the
world’s largest issuers and retailers.

KOBIE IS THE LOYALTY
EXPERIENCE COMPANY

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 business 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

Everything we do is customized to your brand, your objectives, and the specific
needs of your customer base. We execute flawlessly within each of our three
disciplines — strategy, technology, and program management.

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.

David Andreadakis, Vice President of Loyalty Strategy
Dave is focused on business development with a bend towards helping clients and prospects think
through the strategic and financial aspects of loyalty and the benefits that we can bring from a
strategic, design, analytical, behavioral and platform basis. Prior to Kobie, Dave lead Business Development for AIMIA and played a key role on the Loyalty Strategy team. His primary focus was to
understand markets, ensure the optimal selection of strategies and tactics that will meet the needs
for clients, and then design programs that drive maximum value.

Don Hughes, Chief Information Officer
Don serves as Chief Information Officer and leads the development, product innovation and IT operations efforts of Kobie Marketing. Drawing from a wealth of technical and creative problem-solving skills acquired during the past 15 years, Don works closely with Kobie’s clients to deliver new
customer loyalty management solutions that provide differentiating value.

How can we
help you?
We’d love
to chat.

26


800-821-7892
www.kobie.com

WE ARE KOBIE

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
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Kobie Quarterly Review - Financial Services Edition - Mar 2014

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Kobie Quarterly Review - Financial Services Edition - Mar 2014