1. Effective Integration of Loyalty Programs and eClubs
November 2012

2. Fishbowl Best Practices Webinar
Hosted by:
Liz Friscino
Online Marketing Consultant
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3. Agenda
• Loyalty Marketing Defined
• eClubs and Loyalty Programs: Similarities and Differences
• Integration and Collaboration
• Summary and Recommendations
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4. Marketing
D-e-f-i-n-e-d

5. Loyalty Marketing: Beyond the Plastic Card
What Is It?
Loyalty is a feeling of attachment that customers have towards a brand.
Loyalty Marketing focuses on strengthening brand attachment to
influence consumer behavior…one member at a time.
Why Do It?
The goal of Loyalty Marketing is to maximize the Lifetime Value of each
customer through increased member frequency, spend and retention.
CARD-BASED LOYALTY PROGRAMS CAN BE A KEY
COMPONENT OF A LOYALTY MARKETING STRATEGY
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6. Why The Excitement and Urgency
Around Loyalty Cards?

7. What’s Driving the Interest In Card-based Programs?
• Revenue Potential
o Loyalty club members visit more often, spend more and take greater ownership in the brand
o It costs about 5-10 times more to acquire a new customer than to sell to an existing one
o On average, current customers spend 67% more than new ones
• Market Share Battles
o More and more restaurant brands are launching some form of earned reward program and In
the fight for customers, no one wants to fall behind
o A loyal customer has less opportunity to visit competitors
• Success Stories
o Airlines, hotels, retailers and restaurants are crediting their loyalty programs for sales growth
THE QUESTION IS: How Many Consumers Are Willing to Pledge their “Loyalty” to Your Brand?
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8. How Big Is the Pie and How Can You Reach Them?
Consumers Broadcast + Print
Branding and offers sent to a
at Large general audience using mass media
Potential
eClub
Members In-store + Email + Social Media
News, benefits and offers sent to
members, fans and followers
Loyalty
Prospects

9. Many are willing to ENGAGE, few are ready to COMMIT
eClub Loyalty eClub eClub eClub
Loyalty
eClub eClub
eClub
eClub
Together…Loyalty Programs and eClubs can provide a bridge
across the varying member engagement levels

10. eClubs & Loyalty Card Programs – How Do
They Relate?

11. Shared Member Traits + A Paired Data Opportunity
DEMOGRAPHIC DATA
A fondness for your brand
• Email Address
• Home store
Medium to Heavy Usage • Birthday
• Name
• City, State, Zip
Desire for rewards & discounts
TRANSACTION DATA
• Card Number
Interest in News & Events
• Check Amount
• Points Earned
• # of Visits
• Lifetime Spend

12. eClub-based Loyalty Marketing
eClubs target basic Triggered offers are Common trigger
loyalty objectives designed to events include:
promote program Welcome, Birthday
• Engagement
commitment and Anniversary
• Transactions
• Retention
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13. Card-based Loyalty Marketing: 2 Primary Types
Point-based Rewards Surprise & Delight Rewards
Points earned based on spend and Focus is on instant ‘win’ and rewards
frequency; can include varying levels rather than point accumulation
of rewards based on point level
Heavier emphasis on soft benefits &
Push on driving incremental visits and recognition (event invites, VIP
increasing frequency privileges)
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14. Stand-alone Challenges for eClubs and Loyalty Programs
eClub Only Loyalty Program Only
- Limited group of available members
- No escalating or accumulating rewards
- No benefits without membership
- Limited to demographic data capture
- Most communication directly related to
the Loyalty program
- Maintaining engagement can be difficult
- Limited social media reach
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15. Integration Model and Program Examples

16. A Loyalty Program and eClub Working in Tandem
Digital media used to
Members swipe loyalty deliver relevant
card or redeems eClub messaging and
loyalty offer Behavioral and preference recruit new loyalty
data stored for ongoing use members
Ongoing mining analysis of data to better target loyalty members eClub segments

17. The 837 Club: Palm Restaurants
Program At A Glance
Launch Date October 1997
Enrollment Method In restaurant or online
Reward System Points; earn one point for every dollar spent
Member Approach 2-tier: email program and 837 club
Program Integration
Palm Mailing List (eClub) 837 Club (Loyalty Program)
Messaging Welcome Message , Update Profile Message, Monthly 837 Club Welcome, Miss You Message (60 days after last
Newsletter and promotional messages. Monthly transaction), Monthly Newsletter with 837 specials,
messages include 837 only special & push for Promotional Emails
conversion
Hard Benefits Birthday lobster certificate; variety of prizes including Palm
Free appetizer on join (select campaigns only) certificates, gift cards to other vendors (Tiffany & Co, Neiman
Marcus), travel excursions
Soft Benefits Event invites, menu specials, exclusive news Periodic special offers, special event invitations
Expiration & N/A Unused points expire 18 months from date of issue; must
Restrictions accumulate 500 lifetime points and have activity 6 months
prior to birthday to receive birthday offer
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18. The Bones Club: Smokey Bones
Program At A Glance
Launch Date August 2009
Enrollment Method Online
Reward System Points; earn one point for every dollar spent
Member Approach 2-tier: email program and Bones Club
Program Integration
Bones Club Lite (eClub) Bones Club (Loyalty Club)
Welcome, Birthday and Anniversary, Bones Club Welcome, Miss You Message (60, 120
Messaging coupons and promotional items. Welcome days after last transaction), Rewards Notice,
message includes push for conversion. monthly promotional emails and newsletters
Receive $20 credit for every 200 points earned;
$10 off for Welcome, birthday cake, free
Hard Benefits free appetizer with enrollment, receive points
dessert
even when paying with rewards
Soft Benefits Exclusive news, event invitations Bonus point opportunities
Expiration & Coupons expirations vary based on No expiration
Restrictions promotion
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19. Using Your Website to Build eClub & Loyalty Program Awareness
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20. Summary and Recommendations
• Every consumer touch point provides an opportunity to deepen the relationship and build
customer loyalty.
• Remember…consumers are at different places on the “loyalty” continuum, so be
ready to meet them where they are.
• Your eClub already plays a valuable role in your Loyalty Marketing strategy and can
provide a natural first-step towards loyalty club membership:
• Delivery of basic loyalty rewards (birthday, anniversary, etc.)
• Recruitment of new program members and conversion of eClub members
• If you’re considering a card-based loyalty program. Carefully consider the following:
• Add-on costs of the program (POP, collateral, cards, rewards and liability for unredeemed points)?
• How the program will look in 6 months, 1 year, 3 years (brand and customer perspective)
• Resources needed to manage the program and related data today and as it grows
• The most successful eClubs and Loyalty programs are easy to understand, join and use

21. Questions?
Thanks for your time!

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