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Live from Shoptalk
38 Plays1 month ago
Erin Raese and Alex Tavera discuss insights from Shoptalk 2025.
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Transcript
00:00:09
Speaker
Good, good.
Introduction: Shelf Talk, Spring 2025
00:00:10
Speaker
It's been a fun event, no? Yeah. up Maybe we should tell people where we are. Oh, yeah, we're at Shelf Talk. Spring 2025. Day three.
Gap's Strategy: Fashion Attainment and Loyalty
00:00:18
Speaker
day three been a ride yeah what have what have you taken away any interesting yeah you know i really like the conversation with gap i think that going back to your reads this idea of you know fashion attainment uh but also taking a deep dive into your customers and learning more about them what was important to them what is important to them and then leveraging that in your storyline um i think also you think about
00:00:43
Speaker
loyalty programs, you know how do you take on that value proposition and think about what is important based on that value proposition, two different segments, um and then layer in the right creative, the right kind of movies or videos that they've been shooting.
00:00:57
Speaker
um and i It was a great conversation.
Old Navy's Simplified Value Approach
00:01:00
Speaker
um Yeah, I like what he had to say about Navy, where ah when he first started going into an Old Navy, there was 10%, 40%, 70%. And his point was, people don't want to do math.
00:01:12
Speaker
yeah Let's make it simple. So Old Navy was still betting on value, but it's not going to be in your face and some confusing so that simplifying focus concept.
Streamlining Loyalty Programs for Convenience
00:01:21
Speaker
Well, and I think convenience is something that so many loyalty programs and teams sometimes forget about because loyalty has been around for so long. People think about sophistication being let's add more complexity to the program. Let's add more tiers. Let's add more curves. Let's add more discounts. Let's add more promotions.
00:01:37
Speaker
um And sometimes it can be too overwhelming for the consumer. um And really thinking about convenience in terms of a convenient and streamlined member journey online so that if I am a member, it's way easier for me to engage, find what I'm looking for, transact.
00:01:51
Speaker
um Or get, you know, head of the line or get pre-chip me, right? And so I think some people are kind of meaning to kind of hunting focus and go back to those roots of what what basic things can be needed in a program that provides convenience, because that is also a part of what it's not just points and grades like right. Right. Right.
00:02:08
Speaker
Tell my one of my favorites. How do you make it more? Friction free. um Any other stats or things that you've heard?
Economic Conditions and Consumer Behavior
00:02:15
Speaker
Well, I think the other piece too that a lot of people are talking about, um which was funny, we I didn't hear as much about v the AI. No, no. Last conference we went to. That's all right.
00:02:24
Speaker
It's full of AI. Right? Like every presentation. This one wasn't about that. I think this was about how do we think about the economy as it stands today and what are things that we should be doing? I think a lot of it was kind of more at a brand level, but it got me thinking a little bit about um you know economic um uncertainty and what does that look like for a more to better. I think the staff was something like 50% of consumers are very concerned about the economy heading into the back half year. And as Shane McKinsey, I believe was the firm.
00:02:51
Speaker
And so as you think about that, where Where do loyalty managers need to come? ah And so, you know, I think one major aspect is that it's a great moment to take the time to keep your turn and really hyperanalyze your program.
00:03:06
Speaker
If you have a mature program, you have the ability to look through major board boards. So what do your redeemers do if you don't meet with them? Have you surveyed them and incentive them to give you more information?
00:03:17
Speaker
Have you used those redeemer's data with your acquisition time to see if you can find book-a-likes? um I know we've seen success with some of our clients doing that. yeah um But also thinking too about there's two kind of major segments that have big populations that you can look at.
Engagement Tactics: Currency and Promotions
00:03:30
Speaker
One is people that are returning the survey have currency. You can do things with that currency. remind Simply remind them that they have it is a clean out of the gym. right But even more than that is they like the currency. They see the value. They use it.
00:03:42
Speaker
So you can your promos like double points campaigns or spend $100 if your AOV is DD. Get them a stretch. Give them bonus points for that. But you can also expirer those points on a shorter term. What you do it on our platform.
00:03:55
Speaker
um But that's great because finance and accounting are not going to be upset about that. They are controlling a large amount mass blasts at the discount. showing your enroll releases They're new to your broker. They haven't seen it. So they haven't seen how valuable the currency is yet.
00:04:07
Speaker
Those are people you could target with a promotion or a GWP electric purchase. um to get them engaged. And they're seeing in big value, which up the front, instant gratification. But then as they're making those purchases, they're getting the currency and then they're going start redeeming and seeing the value. So simple tactics like that, I think are great.
Competitive Markets and Loyalty Program Needs
00:04:24
Speaker
And then obviously, and you know, programming is just going to get people out of their segments and do more with it. But simple things like that, I think would be great.
00:04:31
Speaker
Yeah, no, that's interesting. So if I recap what I think I heard is being with the market conditions today, you want to double down on loyalty and to be able to get the customer really thinking about that, seeing that extra value that loyalty provides and that you're offering it versus your competition.
00:04:47
Speaker
then utilizing that currency in a way that's going to further engage people. And I like what you said about making sure that there's a stretch. You said that quickly. I want to make sure we really focus in on that.
00:04:59
Speaker
And we're just not going to offer points to offer points. But if you are currently, if the average transaction amount is 80, and you set that threshold at 100, you've gotten that buff. It more than pays for those, that that extra points.
00:05:11
Speaker
And people are still excited. There's still the case. They're able to get something they that they could perceive as added value. Yeah. And I would say if you are, and I think this was pretty clear, if you don't have a little to put in and you are in industries that do have loyalty programs or your from competitors have them, it's time to get with it.
00:05:29
Speaker
Because these programs as we understand them today, with the points and the rewards, tier statuses, et cetera, that's been around for almost 50 years now. um and yes it started with airlines and hospitality but will entail cpg b2b everyone is in this day right now and i think that's another factor is that if you're hesitant about doing a program take the time to do a little bit of research structure out a working theory design and then build a slight business case around it what do we think the incremental list you beat does that offset the cost of the rewards does it offset the cost of technology That's busy things. Maybe not busy, but it's it's things that are worth the time and effort to put it
Beyond Points: Innovative Loyalty Strategies
00:06:04
Speaker
into it. Especially right now. Exactly.
00:06:05
Speaker
And so so that's where that's where my suggestion will be. Don't have program. Start assessing what that really looks like because you're going to be left behind. um If you do have a program, really start pulling in on the data. I'm pretty looking at those segments and being thoughtful with how can I get incremental revenue, but how can also be full margins given costs will be will be a big as aspect of this year given the economy.
00:06:26
Speaker
Yeah, well, the cool things to add, I think, to what you're saying, one, um that model and all of that, Alex is your guy. So if you want to do it, give us a call.
00:06:36
Speaker
But the other piece is it loyalty doesn't have to be points. You don't have to create a currency. I think that's really key because I think a lot of people look at this and go, okay, I want to do this, but I'm not going to be able to get this bad my CFO. So we're seeing more and more people come to and say, okay, we want to offer something. We want to create this connection with our customers, but we don't want this big liability thing that's out there. And how do I manage that? And there's too many questions around it.
00:07:03
Speaker
So we're seeing a lot more people use tactics like surprise, delight or challenges. where you do three actions and maybe one of those is a transaction and then you get something. and And so that doesn't create that long-term line really that sits on your books. It's an immediate...
00:07:20
Speaker
Markdown. Yeah, many a reward. Yeah. And I, um well, it's funny. I actually, I'm going to get my, I'm going to get a points bonus from United, but they had given me a specific challenge. They know how my, they know they put my, they know my flight behaviors.
00:07:32
Speaker
And so they said, hey, within a two month period, if you take five segment flights, we're going to get these 7,000 bonus points. And that's one to say, well, you know what? I'm taking two business trips. That's four. Now, if I visit a friend, that's the fact I'm going to earn points on that, but I'm also going to own my 7,000. That's equivalent to spending a thousand dollars a late credit card or taking a round trip.
00:07:49
Speaker
So um I think that's kind of the other thing we're seeing a lot of is this. It's gamification, but it's smart gamification using the customer's behavior or member behavior, but then layering in the incentive in the right way at the right point so I can stretch to the reward or stretch to a freebie. So um no, I think that's another really interesting piece that we're trying tried to see in the market. Well, it's motivating. It's changing and motivating behavior.
00:08:13
Speaker
I think we have a we don't talk about that stuff either around the loyalty really is about. Right. This isn't just about getting people discount. It's about getting them to do more. Yeah. So you can see that incremental. web um And I think, too, what you were talking about, about doing it right now. And we are we're.
00:08:31
Speaker
Technology is such today that you can launch a loyalty program in a couple of months so you can begin to create your strategy, do the model that you talked about and then be able to be up on ah on a SaaS platform like AmEx Cloud in a couple of months. So if you are, if you've seen that choice.
00:08:49
Speaker
believing that we might be moving into recessionary times. You want to be ready for the holiday because you want to make sure you're told out to your market share. You can still do it. Still make
Launching Loyalty Programs with Modern Tech
00:08:58
Speaker
cap. Yeah. And I think also the way that we like to support is, you know, helping you not only think about the technology piece of that or that work stream you're going to implementation, but providing you with advice on how to think through the creative. A bunch of.
00:09:10
Speaker
and how to make sure you're ahead of that so that the creative team has time to build a beautiful, you know, nothing feel for the program, yeah optimizing your website for it and what pages you need, terms and conditions with legal and then helping you to decline it to the county. So that based on the business case in legal line works. So I think it's it's a perfect time to start looking at it.
00:09:27
Speaker
um And once you have that program, How do you think about amplifying different aspects of the program in different communications, right? So even if you have a promotional email, how are you also reminding me, remember, members get free shipping, right? Or members get a standing discount or members get points, right? Like a simple... That exclusivity and Joanna special.
00:09:46
Speaker
Yeah. Yeah.