April 6, 2015
Going beyond birthday rewards
Through a special arrangement, what follows is a summary of an article from COLLOQUY, provider of loyalty-marketing publishing, education and research since 1990.
For most loyalty programs, birthday rewards have become as common as free pretzels on a plane.
With the greater frequency, customers can now easily contrast and compare the special gifts delivered by various merchants during his or her birthday month. As a result, several inventive brands are reimagining the concept of the birthday reward to their competitive advantage, some looking even beyond birthdays.
Here are several examples of special-occasion rewards that take the cake:
Surprise parties: With a list of customer preferences and favorite things (attained through annual surveys), a loyalty program can surprise with unexpected items, from chocolates to movie tickets. Kimpton Karma, for example, gives members 20 percent off on stays during birthday months and then surprises them with gifts based on the favorite things they list in their profiles. It’s important to make it clear to members that the information they provide may be used to surprise them later on.
Half-birthday rewards: CityGro, a Salt Lake City-based loyalty-marketing firm, launched such a campaign at Utah State University, offering free pretzels to student members on their half birthdays. The occasion is more likely to resonate with younger consumers. Said Jon Parrish, CEO of CityGro, "People don’t even realize it’s their half birthday. So it really gives them a reason to celebrate and to create some buzz."
Go beyond birthdays: Relatedly, some marketers look to other special occasions to thank their members. Celebrating its own anniversary in 2014, Hertz Gold Plus Rewards surprised European members with luxury upgrades, offered U.S. members double points on weekly rentals and surprised members with other small gifts, including chocolates, flowers or books, depending on the country. Kellogg’s Family Rewards offers its members up to 1,600 bonus points for purchases made around St. Patrick’s Day (March 17-20). It is also planning bonus offers around Cinco de Mayo and Thanksgiving.
Go big: Oftentimes, the best-received perks are those that stand apart merely for their generosity. This does not mean the merchant has to burn the margins, however. The cosmetic company, Smashbox, for example, offers its Pretty Points members free full-size products on the months of their birthdays. (This year, the gift is a full-size Full Exposure Mascara, worth about $20.) But to get that gift, members must spend $35 in their birthday months, encouraging more visits and purchases.
BrainTrust
Recent Discussions
Discussion Questions
How can retailers and brands gain a bigger payback from the birthday awards built into their loyalty programs? Does it make sense to offer surprise awards for other times of year or other occasions?
Poll
Free pretzels on a plane? I must be flying the wrong airlines. I haven’t seen free pretzels on a United flight or other airplanes since 2011.
I do agree that if everyone is doing birthday emails or something else it loses it luster and become a delete button item. One of the best points in the article is that whatever you do it has to be tailored to the individual and the company. For example, I don’t like being the person being surprised at a surprise party. While I appreciate a free dessert on my birthday at a restaurant, I don’t want a group of singing waitstaff to deliver it. Others may feel just the opposite.
Surprise rewards are unexpected and can end up in the trash can. Make sure the customer knows to expect them from time to time. The birthday reward is the most exploited since accounts are often tied to an email address. People have 20 email address and get 20 rewards a year. I wonder sometimes when Noodles and Red Robin will ask for an ID like Denny’s does. Surprise rewards need to be tied to patronage in some way. What I dislike is having them tied to consumer survey responses or to have to monitor their website looking for the right button to push. Discover card is really bad about that, requiring members to sign up for 5 percent cash back each quarter. Triple points at Hilton requires you to visit their homepage before skipping to reservations. It would be nice if good customers were always automatically signed up.
Everyone loves a surprise. Be it for a birthday or a brand anniversary, a token of thanks has the potential to go a long way. I believe the longevity of this thanks lies in how well brands can pinpoint exactly what a customer wants to receive.
Aside from the profile information programs garner when customers sign up, brands can capture more specific and insightful data than ever before. In the world of big data with every click, step, or save being chronicled, brands don’t have to lean on “the bigger, the better” but instead can deliver the exact gift their customer has been interested in. Let analytics do the heavy lifting to surprise and delight the customer.
This week is my birthday. I have received several birthday rewards. The majority of them require me to buy something that I don’t need or want to experience the reward within a period of time. THAT IS NOT A REWARD, THAT IS A PROMOTION TO GET ME TO BUY SOMETHING. I resent that. Some are no questions asked, like my Starbucks reward. A free cup of coffee, or a BOGO at a favorite restaurant that I go to REGULARLY.
I suspect that the best rewards are the surprise rewards. If I go to the store today and get to the checkout and the cashiers says, “Happy Birthday! You get an extra 5 percent off your order today,” that has value. If I go to buy myself an ice cream cone at Baskin-Robbins and at checkout they say “This one is on us today,” that is a value.
Any offer or “gift” that is unexpected tends to provide a lasting positive impression with the consumer. Service remains the ultimate differentiator. It often compels shoppers to act, even if the service costs the merchant little or nothing to execute. I think this discussion also is wider than just responding to birthday rewards. “Loyalty” is not the same as being a frequent shopper. Too often we blend the two to mean the same thing. Driving rewards that generate exclusive shopping behavior at one merchant versus another is the key to garnering long-term loyalty.
Sometimes a simple birthday card with well wishes might get the desired patronization. While email makes this very cost effective, the old reliable snail mail will enhance the experience form the consumer perspective. There are large numbers of fulfillment companies with vast amounts of local consumer information and tendencies waiting to be experimented with.
Using social media, the retailers should send out discounts for gifts to the friends of the person having the birthday.
If a promotion came to my inbox stating that it is my friend’s birthday and I will get a 20 percent discount on his/her favorite items, I would be more likely to pull the trigger on the purchase and have it shipped directly to them.
Perhaps the bigger question is, what are retailers and brands doing to gain bigger paybacks from their target markets? Birthdays are only one of many opportunities which retailers and brands have to create a happier, loyal customer who repeatedly comes back for their products at the same store. What about all of the other holidays, special days, anniversaries, and special times of the year (holiday, BTS, etc.)?
My favorite “birthday reward” came from Morton’s (The Steakhouse). They used to send me a $100 gift certificate on my birthday. No strings attached. I just had to use it within a month—pretty lenient. Of course I would always spend more than that. And, I was a pretty good customer. Too many times I receive “birthday promotions” that say because it’s my birthday they will give me a discount. It’s not really a gift if I have to buy something to get it. It’s a marketing program.
I love the idea of a surprise reward/gift for other times of the year. How about a Valentine’s Day promotion? Come in the week of Valentine’s Day and get a chocolate treat? You can still offer me the discount, but at least I’ll feel like you’re giving me something if I come in. Even better, mail it to me. If I’m that good of a customer, a couple of bucks for a sweet treat seems like low-cost marketing.
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Free pretzels on a plane? I must be flying the wrong airlines. I haven’t seen free pretzels on a United flight or other airplanes since 2011.
I do agree that if everyone is doing birthday emails or something else it loses it luster and become a delete button item. One of the best points in the article is that whatever you do it has to be tailored to the individual and the company. For example, I don’t like being the person being surprised at a surprise party. While I appreciate a free dessert on my birthday at a restaurant, I don’t want a group of singing waitstaff to deliver it. Others may feel just the opposite.
Surprise rewards are unexpected and can end up in the trash can. Make sure the customer knows to expect them from time to time. The birthday reward is the most exploited since accounts are often tied to an email address. People have 20 email address and get 20 rewards a year. I wonder sometimes when Noodles and Red Robin will ask for an ID like Denny’s does. Surprise rewards need to be tied to patronage in some way. What I dislike is having them tied to consumer survey responses or to have to monitor their website looking for the right button to push. Discover card is really bad about that, requiring members to sign up for 5 percent cash back each quarter. Triple points at Hilton requires you to visit their homepage before skipping to reservations. It would be nice if good customers were always automatically signed up.
Everyone loves a surprise. Be it for a birthday or a brand anniversary, a token of thanks has the potential to go a long way. I believe the longevity of this thanks lies in how well brands can pinpoint exactly what a customer wants to receive.
Aside from the profile information programs garner when customers sign up, brands can capture more specific and insightful data than ever before. In the world of big data with every click, step, or save being chronicled, brands don’t have to lean on “the bigger, the better” but instead can deliver the exact gift their customer has been interested in. Let analytics do the heavy lifting to surprise and delight the customer.
This week is my birthday. I have received several birthday rewards. The majority of them require me to buy something that I don’t need or want to experience the reward within a period of time. THAT IS NOT A REWARD, THAT IS A PROMOTION TO GET ME TO BUY SOMETHING. I resent that. Some are no questions asked, like my Starbucks reward. A free cup of coffee, or a BOGO at a favorite restaurant that I go to REGULARLY.
I suspect that the best rewards are the surprise rewards. If I go to the store today and get to the checkout and the cashiers says, “Happy Birthday! You get an extra 5 percent off your order today,” that has value. If I go to buy myself an ice cream cone at Baskin-Robbins and at checkout they say “This one is on us today,” that is a value.
Any offer or “gift” that is unexpected tends to provide a lasting positive impression with the consumer. Service remains the ultimate differentiator. It often compels shoppers to act, even if the service costs the merchant little or nothing to execute. I think this discussion also is wider than just responding to birthday rewards. “Loyalty” is not the same as being a frequent shopper. Too often we blend the two to mean the same thing. Driving rewards that generate exclusive shopping behavior at one merchant versus another is the key to garnering long-term loyalty.
Sometimes a simple birthday card with well wishes might get the desired patronization. While email makes this very cost effective, the old reliable snail mail will enhance the experience form the consumer perspective. There are large numbers of fulfillment companies with vast amounts of local consumer information and tendencies waiting to be experimented with.
Using social media, the retailers should send out discounts for gifts to the friends of the person having the birthday.
If a promotion came to my inbox stating that it is my friend’s birthday and I will get a 20 percent discount on his/her favorite items, I would be more likely to pull the trigger on the purchase and have it shipped directly to them.
Perhaps the bigger question is, what are retailers and brands doing to gain bigger paybacks from their target markets? Birthdays are only one of many opportunities which retailers and brands have to create a happier, loyal customer who repeatedly comes back for their products at the same store. What about all of the other holidays, special days, anniversaries, and special times of the year (holiday, BTS, etc.)?
My favorite “birthday reward” came from Morton’s (The Steakhouse). They used to send me a $100 gift certificate on my birthday. No strings attached. I just had to use it within a month—pretty lenient. Of course I would always spend more than that. And, I was a pretty good customer. Too many times I receive “birthday promotions” that say because it’s my birthday they will give me a discount. It’s not really a gift if I have to buy something to get it. It’s a marketing program.
I love the idea of a surprise reward/gift for other times of the year. How about a Valentine’s Day promotion? Come in the week of Valentine’s Day and get a chocolate treat? You can still offer me the discount, but at least I’ll feel like you’re giving me something if I come in. Even better, mail it to me. If I’m that good of a customer, a couple of bucks for a sweet treat seems like low-cost marketing.