Rewards comes in all shapes and sizes. Some small, some large, some that you save for over a long period of time, but not too many that are delivered in the same moment that your transaction takes place and that can be cashed in almost immediately.

When I made a quick stop at CVS today, two nice surprises took place.

1. Yes, there was a $12 CVS Extrabucks coupon appended to the bottom of my receipt. It had a few restrictions and was good for 45 days. A bounceback visit was not required and I could have returned down the aisle for a few more items and cashed in.
2. Almost a better surprise was that the cashier alerted me to the award, telling me to be sure not to throw away my receipt as it carried evidence of my twelve bucks. I’ve advocated for better training of store associates to ensure that the value of rewards programs is delivered to each customer and for some reason, brands don’t hear the message. CVS clearly gets it.

Interesting also was that as I checked my email later that morning, the notice of my $12 “quarterly earnings” was sent to me around the noon hour. I had three options to enable my reward and printing from the email or at the Extracare coupon center in-store were the two most obvious.

The fact that CVS is apparently printing the rewards on receipts for purchases made in April is an improvement. I don’t know if the reward will print out on the receipt for EVERY purchase I make during the month or if it generates only on the first purchase. Either way, its an enhancement to the customer experience and, better than telling me that their loyalty program is “going green”, is evidence that green rewards are a reality at CVS.

There are some aspects of CVS ExtraCare mentioned in a previous post that I still do not understand and maybe never will.

1. I have absolutely no idea how the $12 was calculated. The receipt did say it was issued based on my winter spending, meaning I have to guess about my spend during previous months to figure out the amount of return I am getting for my patronage. Since the award printed on April 1, I imagine the rewards are calculated with one quarter delay and are issued on the first day of the ensuing quarter.
2. My receipt tells me the amount of my “Spring” spending. I am guessing that CVS does not adhere to the Farmer’s Almanac definition of Spring and instead equates Spring to a calendar first quarter, i.e. Jan 1 – Mar 31. I don’t really care how they delineate the time, just wish they would make the message more clear.

Overall, twelve bucks is twelve bucks – a pretty solid reward given the average amount of purchase made in the store per visit. While some brands fret over 1 or 2 percent give back or generate 10% off coupons on next visit that only amount to $2-3 maximum, CVS delivers hard dollars of a more significant amount.

Maybe the mystery they create is intentional. If so, I give them credit for prescribing their own version of “surprise and delight”.

I was dining with my wife at Carrabba’s recently and she asked me the BIG question, though it’s probably not one that you have in mind:  “So, do a lot of businesses still do this loyalty stuff“?

I had just written a post about new execution formats that Loyalty Marketing programs were taking in the Big L and the Little L and I paused before answering her question.

That morning I had received a call at home from the Fort Lauderdale Sun Sentinel informing me of “Subscriber Rewards“. An insider’s club that offers “reader benefits and special privileges”, it was an intriguing pitch from a newspaper and I asked for more information. I haven’t received anything yet and can’t find anything concrete about the program on the paper’s website, but it seems to consist of merchant discounts offered on some exclusive basis to home delivery subscribers.

Just before dinner, we had strolled through Steinmart (did I say it was date night?) and, as I noticed the quality merchandise from well known brands offered at prices that should make mainline retailers shiver, I realized that Steinmart’s business model was its loyalty program. I have written about this before and believe that a points based program is not always mandatory to secure my return visit and longer term brand loyalty.

Steinmart punctuated its customer shopping experience with a personal note from the Chairman thanking customers for their business. Stacked by the check out station, it was a nice touch and something I had not seen at other retailers.

With these two examples in mind, I started to answer my wife’s question with an emphatic “yes” when I was interrupted by our server, cheerily asking if we wanted to join the “Amici Club“. Carrabba’s had apparently launched a customer club and had trained the server thoroughly in how to properly present it table-side and explain the benefits. I have a habit of testing the proficiency of front line staff in these areas and our server passed with flying colors.

My wife’s question had clearly been answered: Loyalty is alive and well and in favor with CMO’s who recognize the power of data-driven measurable marketing.

Indicative of today’s market is that I had seen three examples of brands in different industries launching distinct models. Here are some implications to consider:

• The Sun Sentinel might be seeking to increase renewal rates among home subscribers and to sustain advertising rates for merchants with its discount oriented scheme. Will they take a second step to query subscriber preferences and tailor the offers to make them more appealing and relevant?

• Steinmart’s merchandising and service model can create repeat visits but aren’t they leaving something on the table by allowing their customers to remain “invisible”? Sure they have a cobranded credit card, but shouldn’t there be something more fundamental in place and with a lower enrollment hurdle?

• Carrabba’s was taking the first step with highest potential in my opinion, seeking to create a platform for learning about customer desires and preferences. I’ve just received my first email from Amici and they offered me a free appetizer on a return visit in exchange for registration online. Simple, but a good start to create engagement. I wonder if they tested different incentives?

My free lesson in Loyalty at dinner reminded me that every organization can benefit from a sound Customer Strategy and that program designs will be more tightly integrated into the customer experience and shaped to meet unique industry needs. Tremendous opportunity remains in helping business leaders get the model right and design strategy that is complementary to their core brand.

I was also reminded that it pays to keep date night with your spouse on the calendar. You never know what you might learn!

Editor’s note: Reading Brian’s post here got the adrenaline flowing. The irony of retail is that the lowest paid associates, also the ones with the highest turnover rate, are the primary interface for the customer. How ironic….spend millions on branding, advertising, merchandising, fashion consulting…..and then leave your fate in the hands of people who are the least empowered in your organization. There is an opportunity for success for retailers willing to invest in training, motivation, incentive, and application of a higher standard of care – both for their associates and the end customers. Call me naive, but it can be done. Brian shares two good tales and I have many more as I am sure you do as well. Please send your comments with a memorable interaction.

Can it be overlooked that the very employee who interacts with the customer the most fails to get the necessary training to help them deal with different circumstances? I am amazed how often this occurs, and want to share a few personal experiences to demonstrate how detrimental poor customer service can be to a business.

Case #1 – “Teed Off”

Every late Tuesday afternoon we head to a local golf course to play 9 holes.  It is a great way to interact with various departments and talk shop. In the beginning of the year we choose a course and plan an entire season of play. We have done this for years and it was our second year at this particular golf course.  We agreed with the course owners that we would have 3 to 4 foursomes on a weekly basis, but on occasion less due to business travel that can’t be easily predicted.

One afternoon four of us showed up and headed to the pro shop to sign in and pay. The young gentleman at the counter proceeded to tell us we had “been bumped” because there was a tournament going on. We simply could not go out!  He had no emotional sincerity and could care less that we were weekly league customers. We tried to reason with him as there was no one on the tee, and we could easily work into the flow of play.  When that didn’t have any effect, we threatened to take our weekly business elsewhere, suggesting this was outrageous considering they didn’t even call us to tell us we couldn’t play that day. Once again, he could care less about our feelings, and worse, our business.

The next day we sent over a nice letter to the pro stating what happened and that we would no longer patronize the course. He was very apologetic, saying that the associate behind the counter had no idea what he was doing, and offered us a free round to keep our business. We appreciated the efforts of the pro, but question why the counter person didn’t have any idea what he was doing? He is the person who interacts with all the golfers on a daily basis and is the face of the course!  The very next week my co-worker and I showed up for our free round. There was the same kid behind the counter and an older woman in front of us arguing about the way he gave them handicap scores. He dealt with this woman for 20 minutes as we stood there in line, never acknowledging us once! I finally asked to pay before our tee time passed us by.  This kind of service can ruin a business.

Case #2 – “Dead Air”

Have you ever called into to a call center and reached a representative who said “this will take a second”, whether it was to type, or fire up that computer that was not working? Most times, and I see it in my own center as I monitor calls, they either talk to themselves, say nothing at all, and the customer has to ask if they are still there?

I call it the GAP, which can be a very advantageous place to start building a relationship. There should never be “dead air” time during a customer service call. It is a great opportunity to tell the customer about your rewards program, or anything else that could be a nice benefit to them. If you run a call center as I do, listen to the amount of dead air time and prance on the opportunity to build an encounter with the customer. It will do wonders for the experience!

In the end, it all comes down to proper training and making  sure that the employees who interact with the customers, especially if it is face to face, have the necessary training in place to accommodate all situations. Most companies focus on the product or service information, and don’t focus on customer experience training. I am currently working with our curriculum writers to create an entire training for customer experience.

Why not review the  training materials at your company as a good starting point to see where you can improve?

Editor’s note: Reading Brian’s post here got the adrenaline flowing. The irony of retail is that the lowest paid associates, also the ones with the highest turnover rate, are the primary interface for the customer. How ironic….spend millions on branding, advertising, merchandising, fashion consulting…..and then leave your fate in the hands of people who are the least empowered in your organization. There is an opportunity for success for retailers willing to invest in training, motivation, incentive, and application of a higher standard of care – both for their associates and the end customers. Call me naive, but it can be done. Brian shares two good tales and I have many more as I am sure you do as well. Please send your comments with a memorable interaction.

Can it be overlooked that the very employee who interacts with the customer the most fails to get the necessary training to help them deal with different circumstances? I am amazed how often this occurs, and want to share a few personal experiences to demonstrate how detrimental poor customer service can be to a business.

Case #1 – “Teed Off”

Every late Tuesday afternoon we head to a local golf course to play 9 holes.  It is a great way to interact with various departments and talk shop. In the beginning of the year we choose a course and plan an entire season of play. We have done this for years and it was our second year at this particular golf course.  We agreed with the course owners that we would have 3 to 4 foursomes on a weekly basis, but on occasion less due to business travel that can’t be easily predicted.

One afternoon four of us showed up and headed to the pro shop to sign in and pay. The young gentleman at the counter proceeded to tell us we had “been bumped” because there was a tournament going on. We simply could not go out!  He had no emotional sincerity and could care less that we were weekly league customers. We tried to reason with him as there was no one on the tee, and we could easily work into the flow of play.  When that didn’t have any effect, we threatened to take our weekly business elsewhere, suggesting this was outrageous considering they didn’t even call us to tell us we couldn’t play that day. Once again, he could care less about our feelings, and worse, our business.

The next day we sent over a nice letter to the pro stating what happened and that we would no longer patronize the course. He was very apologetic, saying that the associate behind the counter had no idea what he was doing, and offered us a free round to keep our business. We appreciated the efforts of the pro, but question why the counter person didn’t have any idea what he was doing? He is the person who interacts with all the golfers on a daily basis and is the face of the course!  The very next week my co-worker and I showed up for our free round. There was the same kid behind the counter and an older woman in front of us arguing about the way he gave them handicap scores. He dealt with this woman for 20 minutes as we stood there in line, never acknowledging us once! I finally asked to pay before our tee time passed us by.  This kind of service can ruin a business.

Case #2 – “Dead Air”

Have you ever called into to a call center and reached a representative who said “this will take a second”, whether it was to type, or fire up that computer that was not working? Most times, and I see it in my own center as I monitor calls, they either talk to themselves, say nothing at all, and the customer has to ask if they are still there?

I call it the GAP, which can be a very advantageous place to start building a relationship. There should never be “dead air” time during a customer service call. It is a great opportunity to tell the customer about your rewards program, or anything else that could be a nice benefit to them. If you run a call center as I do, listen to the amount of dead air time and prance on the opportunity to build an encounter with the customer. It will do wonders for the experience!

In the end, it all comes down to proper training and making  sure that the employees who interact with the customers, especially if it is face to face, have the necessary training in place to accommodate all situations. Most companies focus on the product or service information, and don’t focus on customer experience training. I am currently working with our curriculum writers to create an entire training for customer experience.

Why not review the  training materials at your company as a good starting point to see where you can improve?