Chieftains: How Many Loyalty Programs Do You Actively Use?
QUESTION: HOW MANY LOYALTY PROGRAMS WOULD YOU SAY YOU BELONG TO, AND HOW MANY DO YOU ACTIVELY USE?
SHAWN R. SALTA, VICE PRESIDENT, DIRECTMAIL.COM
I belong to somewhere between 10 and 15 overall, but I actively participate in only five to seven programs. My personal favorites are Southwest Airlines and Office Depot. Southwest’s customer loyalty program, for example, allows me to accumulate points every time I fly with them. When I rent cars, I accumulate more points. And, I am a Southwest credit card holder for the same reason. Similarly, Office Depot offers a percentage back on the office supply items I purchase most. For me, the difference all comes down to value — perceived and created. Does the company make me feel special? Do they make me feel like a big fish in a small pond? I like the attention I receive via the regular corporate communications expressing how much my loyalty is appreciated. I also like receiving the special VIP offers, coupons and savings cards these programs confer. I think my buying power means something, and I’d be disappointed if I were treated the same as a first-time or infrequent customer.
KELLY HLAVINKA, MANAGING PARTNER, COLLOQUY
As a student of loyalty, I’m now up to nearly 40. I have three tiers of programs. There are only about eight cards I am actively carrying in my wallet because of size restrictions and access to benefits: One that makes the cut is the Marriott Rewards program. I also have my United Mileage Plus card, which gives me the ability to go through expedited security lines. There are another 10 that I actively participate in, but thankfully I don’t need a key fob or card, as many of them allow me to use my phone number to access benefits. The balance of them are ones I have signed up for, but that haven’t shown me enough benefit for me to remain engaged. That continues to be a challenge we see in the loyalty space.
GEOFFREY D. BATROUNEY, EXECUTIVE VICE PRESIDENT, ESTEE MARKETING GROUP, INC.
Being an active businessperson with a national and international clientele, I belong to approximately 15 hotel and airline programs. They deliver upgrades and immediate-gratification benefits, plus the longer-term benefits of receiving rewards. My wife is my business partner, and we frequently take advantage of travel benefits and rewards, particularly those tied to American Express. We have been to Australia four or five times to see our family, always flying Business or First Class, and when you are locked up in a plane for that long, you really appreciate the extra leg room and personal attention. We also take advantage of our office supply rewards program, and it never ceases to amaze me how quickly those pens and reams of paper start producing points that can translate into a new Garmin or a Tom-Tom, a camera or a telephone.
ANN MCCARTAN, PRINCIPAL, DBMCATALYST
I belong to four or five loyalty programs. I find it easiest to be loyal to the stores I shop the most frequently, so my closest loyalties are to the things I enjoy and use most — food, pet products and clothing shopping. As a busy person, I tend to stick with retailers that offer me a consistent experience, good value and geographic convenience. My grocer not only rewards dollar volume, but initiates savings through co-branded rewards. I like to keep things simple — give me cash or a coupon I can apply to my next trip! It’s the perfect reinforcing behavior — the more I spend, the more I save. Kudos to the brands that figured that out! No fuss, no muss, no points to keep track of.
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