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	<title>Loyalty Truth Blog &#187; Customer Experience</title>
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	<link>http://blog.hanifinloyalty.com</link>
	<description>Straight talk and opinion about Customer Strategy, Loyalty Marketing, and Measurable Marketing</description>
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		<title>Defusing Airline Frustration In A Word: Communication</title>
		<link>http://blog.hanifinloyalty.com/2010/08/13/tsa-secure-flight-program-opportunity-risk-for-airlines.html</link>
		<comments>http://blog.hanifinloyalty.com/2010/08/13/tsa-secure-flight-program-opportunity-risk-for-airlines.html#comments</comments>
		<pubDate>Fri, 13 Aug 2010 04:30:42 +0000</pubDate>
		<dc:creator>BillHanifin</dc:creator>
				<category><![CDATA[Airline]]></category>
		<category><![CDATA[Customer Experience]]></category>
		<category><![CDATA[Social Media]]></category>
		<category><![CDATA[Delta Sky Miles]]></category>
		<category><![CDATA[Frequent Flyer]]></category>
		<category><![CDATA[frequent flyer programs]]></category>
		<category><![CDATA[Jet Blue]]></category>
		<category><![CDATA[Steven Slater]]></category>
		<category><![CDATA[TSA Secure Flight]]></category>

		<guid isPermaLink="false">http://blog.hanifinloyalty.com/?p=3115</guid>
		<description><![CDATA[
			
				
			
		
Steven Slater is a blogger&#8217;s dream. For anyone looking for that quirky story to opine about, Mr. Slater provided a remarkable set of actions that will earn him a bit more than 15 minutes of fame. In fact, I&#8217;ll bet the incident that took place this week on Jet Blue flight 1052 from Pittsburgh to [...]]]></description>
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<p><a href="http://abcnews.go.com/US/steven-slater-jetblue-flight-attendant-free-plans-hit/story?id=11374234" target="_blank"><strong>Steven Slater</strong></a> is a blogger&#8217;s dream. For anyone looking for that quirky story to opine about, Mr. Slater <a href="http://news.yahoo.com/s/yblog_upshot/20100810/bs_yblog_upshot/rogue-jetblue-flight-attendant-being-hailed-as-a-modern-american-working-class-hero" target="_blank"><strong>provided a remarkable set of actions</strong></a> that will earn him a bit more than 15 minutes of fame. In fact, I&#8217;ll bet the incident that took place this week on <a href="http://www.fiveguysproductions.com/2010/08/just-little-excitement-on-my-flight.html" target="_blank"><strong>Jet Blue flight 1052</strong></a> from Pittsburgh to JFK will be cited in serious business circles over the next year as some form of turning point in improving the commercial airline travel experience.</p>
<p>Let&#8217;s be clear. It is not acceptable for a customer facing employee, whether flight attendant, service write-up person, or <a rel="attachment wp-att-3125" href="http://blog.hanifinloyalty.com/2010/08/13/tsa-secure-flight-program-opportunity-risk-for-airlines.html/howard-is-mad"><img class="alignright size-thumbnail wp-image-3125" style="margin: 10px;" title="Howard is Mad" src="http://blog.hanifinloyalty.com/wp-content/uploads/2010/08/Howard-is-Mad-150x150.jpg" alt="" width="150" height="150" /></a>cashier to lose control and address others with anger and profanity. The world is a frustrating place but my Dad used to remind me <strong>&#8220;the veneer of civilization is paper thin&#8221;</strong>. In other words, we have to maintain control no matter the circumstances.</p>
<p>On the other hand, flying commercially is becoming more tortuous by the day. The restrictions that the airlines deem necessary negatively impact the flight experience and, rather than the intended compliance, are bringing out the worst in many people.</p>
<p>It seems the more travelers are charged for things that used to be free and the less freedoms we enjoy in flight, the more rebellious that paying customers seem to become. Our sense of entitlement is being threatened and <a href="http://www.youtube.com/watch?v=q_qgVn-Op7Q" target="_blank"><strong>we don&#8217;t like it</strong></a>. The offending passenger on Mr. Slater&#8217;s flight, by all reports, was truly offensive and anyone of us that endures business travel can attest to the selfish, rude, and flat out ignorant behaviour displayed by many passengers these days.</p>
<p>Toddlers learn quickly that ignoring rules and responding with extreme petulance draws further punishment. Mr. Slater <a href="http://abcnews.go.com/US/steven-slater-jetblue-flight-attendant-free-plans-hit/story?id=11374234" target="_blank"><strong>executed his own version of a smack down</strong></a> and essentially threw his entire flight into &#8220;time out&#8221;. Not good, but he certainly delivered his message.</p>
<p>In my opinion, the airlines could <strong>defuse frustration for all parties on board simply through improved communications</strong>.</p>
<p>I have always wondered if using my cell phone in flight &#8220;really&#8221; impacts flight operations. Now it seems that placing your mobile device in <strong>airplane mode</strong> is not enough as we are constantly reminded to &#8220;turn everything with an on/off switch into the off position&#8221;. I guess <strong>Apple wasted its time</strong> designing that feature for its iPhone.  Posting simple explanations of policies that impact passengers would go a long way to soothing flyer nerves.</p>
<p>The biggest opportunity for airlines to create goodwill with their customers is to make compliance with TSA&#8217;s Secure Flight Program a breeze. If you are not familiar with the requirements of Secure Flight, <a href="http://www.tsa.gov/what_we_do/layers/secureflight/" target="_blank"><strong>read here</strong></a>.</p>
<p>I have received notice of my need to comply from several airlines via emails and in newsletters. JetBlue published a link in an email addressing the topic but I challenge you to find further reference to the topic on their website. Delta currently requires passengers to change the name of their SkyMiles accounts in writing and to provide &#8220;legal documents&#8221; as support.</p>
<p>I&#8217;d rather send them my legal name that matches my passport and <strong>redeem 10,000 miles for them to make the change</strong>, not that they would ever consider making it this easy.</p>
<p>Neither <strong>prosecuting Mr. Slater</strong> nor further <strong>clamping down on passengers</strong> will yield good results for the airlines as a group. Giving more thought to communicating the reasons behind in-flight requirements and making it easy for loyal frequent flyers to comply with new TSA regulations would not only serve as damage control, but represent steps towards restoring civility in commercial air travel.</p>
<p><strong>There&#8217;s an App for all this</strong>: it&#8217;s called <strong>social media</strong>. Why don&#8217;t the airlines considering using it to communicate with their valued customers?</p>
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		<title>Tropicana Offers Juicy Rewards</title>
		<link>http://blog.hanifinloyalty.com/2010/05/26/tropicana-offers-juicy-rewards.html</link>
		<comments>http://blog.hanifinloyalty.com/2010/05/26/tropicana-offers-juicy-rewards.html#comments</comments>
		<pubDate>Wed, 26 May 2010 15:04:09 +0000</pubDate>
		<dc:creator>BillHanifin</dc:creator>
				<category><![CDATA[Customer Experience]]></category>
		<category><![CDATA[Retail]]></category>
		<category><![CDATA[CPG rewards programs]]></category>
		<category><![CDATA[discount programs]]></category>
		<category><![CDATA[Juicy Rewards]]></category>
		<category><![CDATA[loyalty program]]></category>
		<category><![CDATA[Tropicana]]></category>
		<category><![CDATA[Tropicana Juicy Rewards]]></category>

		<guid isPermaLink="false">http://blog.hanifinloyalty.com/?p=2781</guid>
		<description><![CDATA[
			
				
			
		
Orange Juice has been on my breakfast menu for as long as I remember. Linus Pauling shined the original spotlight on OJ as he asserted the benefits of Vitamin C to cure the common cold and retard the impact of certain forms of cancer.
Since then, there has been great debate about Pauling&#8217;s claims and the [...]]]></description>
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<p>Orange Juice has been on my breakfast menu for as long as I remember. <a href="http://lpi.oregonstate.edu/infocenter/vitamins/vitaminC/" target="_blank"><strong>Linus Pauling</strong></a> shined the original spotlight on OJ as he asserted the benefits of Vitamin C to cure the common cold and retard the impact of certain forms of cancer.<a rel="attachment wp-att-2785" href="http://blog.hanifinloyalty.com/2010/05/26/tropicana-offers-juicy-rewards.html/juicyrewards_logo"><img class="alignright size-full wp-image-2785" style="margin: 10px;" title="JuicyRewards_logo" src="http://blog.hanifinloyalty.com/wp-content/uploads/2010/05/JuicyRewards_logo.png" alt="" width="118" height="156" /></a></p>
<p>Since then, there has been great debate about Pauling&#8217;s claims and the fruit juice has survived public relation storms from <a href="http://www.youtube.com/watch?v=3ld8DQkC6po" target="_blank"><em>Anita Bryant</em></a> to <em>OJ Simpson</em>. Nonetheless, we&#8217;re still enjoying OJ in our home and I just noticed the other day that Tropicana was promoting Juicy Rewards on its cartons.</p>
<p>The biggest challenge for consumer packaged goods (CPG) companies is to understand who is buying their product. Sure, they understand market share through reporting services and can track sales through various distribution outlets, but connecting with individual consumers is a highly problematic chore.</p>
<p>The messaging on the carton caught my eye:</p>
<ul>
<li>&#8220;Click, Save, Enjoy&#8221;</li>
<li>&#8220;Collect points online for healthy savings on healthy fun&#8221;</li>
<li>&#8220;Thousands of rewards nationwide &#8211; log on to find the ones near you!&#8221;</li>
</ul>
<p>In a labor of loyalty love, I visited Tropicana.com and arrived at the <a href="http://juicyrewards.tropicana.com/login/home.aspx" target="_blank"><strong>Juicy Rewards landing page</strong></a>. My initial curiosity was held by two messages:</p>
<ul>
<li> &#8220;20,000 ways to save on everything from golf and workout gear to water parks and zoo admission&#8221;</li>
<li>&#8220;One carton saves you up to $15, three can save you up to $45&#8243;.</li>
</ul>
<p>With the average price of a 56oz. carton of OJ in my area around $3.50, Tropicana creates the perception of a huge return, dwarfing the usual 1-3% funding rate for rewards these days.</p>
<p style="text-align: center;"><a rel="attachment wp-att-2800" href="http://blog.hanifinloyalty.com/2010/05/26/tropicana-offers-juicy-rewards.html/tropicanarewardpartners-3"><img class="aligncenter size-full wp-image-2800" style="margin: 10px;" title="TropicanaRewardPartners" src="http://blog.hanifinloyalty.com/wp-content/uploads/2010/05/TropicanaRewardPartners2.png" alt="" width="492" height="44" /></a></p>
<p>As soon as I completed my enrollment, I was asked to participate in a brief 4 question survey. Well designed, I was asked:</p>
<ol>
<li>Which rewards categories most interest you?</li>
<li>We&#8217;d love to get to know you better. So clue us in by sharing your  interests.</li>
<li>Think back on your most recent orange juice purchases. Ahhh &#8230; a fond  memory, we&#8217;re sure! We&#8217;d like to know how often you buy Tropicana.</li>
<li>Are there children in your household? [this does not include the  neighbor kid who just snuck in!]</li>
</ol>
<p>These questions were cleverly designed and not overly intrusive. The entire customer experience was moving along without a hitch until I had to <strong>spend about 15 minutes locating and entering the correct on-carton codes</strong> to get my credits for future discounts. In the process, I discovered that the program was product specific as  the Grapefruit Juice we had in the fridge didn&#8217;t qualify.</p>
<p>The labor intensive and menial nature of code entering is the <strong>achilles heel of CPG rewards programs</strong> and there surely must be a better way to solve this  painful aspect of program execution.</p>
<p>Overall, Tropicana&#8217;s approach is well executed and  the messaging supports its product branding. Among the reward options  available, members can donate points to <strong>&#8220;Rescue the Rainforest&#8221;</strong>. We are told that on the website that &#8220;Each point donated to help Rescue the Rainforest  saves 33 1/3 sq. ft. of rainforest.&#8221; I don&#8217;t have any idea how the  calculation is made and it is not explained on the website, but it feels  right nonetheless.</p>
<p>Sometimes, rewards are all about perception. The Juicy Rewards loyalty program delivers a <strong>top-line message of value</strong> and capably solves the issue of customer engagement. Digging deeper, consumers will realize that the program is all about discounts, so nothing is &#8220;really&#8221; earned until the member decides to spend more money with one of the partners involved.</p>
<p>Still, the partner list is wide ranging, includes many top brands, and are localized and searchable by zip code.  If drinking our morning OJ can result in a 10% discount off a visit to <a href="http://www.massageenvy.com/" target="_blank"><strong>MassageEnvy</strong></a>, it just might be worth the time taken to enter those codes.</p>
<p>I wonder what Anita Bryant would say about that?</p>
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		<title>Virgin Atlantic Goes The Extra Mile</title>
		<link>http://blog.hanifinloyalty.com/2010/05/24/virgin-atlantic-goes-the-extra-mile.html</link>
		<comments>http://blog.hanifinloyalty.com/2010/05/24/virgin-atlantic-goes-the-extra-mile.html#comments</comments>
		<pubDate>Mon, 24 May 2010 13:00:05 +0000</pubDate>
		<dc:creator>TomRapsas</dc:creator>
				<category><![CDATA[Airline]]></category>
		<category><![CDATA[Customer Experience]]></category>
		<category><![CDATA[Business Stripped Bare]]></category>
		<category><![CDATA[Customer Loyalty]]></category>
		<category><![CDATA[Flying Club]]></category>
		<category><![CDATA[Frequent Flyer]]></category>
		<category><![CDATA[frequent flyer card]]></category>
		<category><![CDATA[Loyalty]]></category>
		<category><![CDATA[Richard Branson]]></category>
		<category><![CDATA[Virgin Atlantic]]></category>
		<category><![CDATA[Virgin Atlantic Flying club]]></category>
		<category><![CDATA[Virgin Galactic]]></category>
		<category><![CDATA[Virgin Mobile]]></category>

		<guid isPermaLink="false">http://blog.hanifinloyalty.com/?p=2770</guid>
		<description><![CDATA[
			
				
			
		
I just signed up for the Virgin Atlantic loyalty program called the Flying Club. I have no immediate plans to fly on the airline. Nor do I really need another frequent flyer card, as I’ve got miles banked in three or four programs now.
The reason I joined the club is I just finished reading Business [...]]]></description>
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<p>I just signed up for the <strong>Virgin Atlantic</strong> loyalty program called the <a href="https://www.virgin-atlantic.com/en/us/frequentflyer/index.jsp" target="_blank"><strong>Flying Club</strong></a>. I have no immediate plans to fly on the airline. Nor do I really need another frequent flyer card, as I’ve got miles banked in three or four programs now.<a rel="attachment wp-att-2776" href="http://blog.hanifinloyalty.com/2010/05/24/virgin-atlantic-goes-the-extra-mile.html/virgin-sir-rich"><img class="alignright size-medium wp-image-2776" style="margin: 10px;" title="Virgin Sir Rich" src="http://blog.hanifinloyalty.com/wp-content/uploads/2010/05/Virgin-Sir-Rich-300x280.jpg" alt="" width="240" height="224" /></a></p>
<p>The reason I joined the club is I just finished reading <a href="http://www.virgin.com/richard-branson/books/business-stripped-bare" target="_blank"><strong>Business Stripped Bare, Adventures of a Global Entrepreneur</strong></a>, the new book by Virgin-owner Richard Branson. I’ve come away impressed with Branson’s business acumen, his marketing skills, as well as his infectious <em>joie de vivre</em>.</p>
<p>I mean here’s a guy who started in the record business and has since branched out into mobile phones via Virgin Mobile, financial services, health clubs, bio-fuel, <a href="http://www.virginhealthbank.com" target="_blank"><strong>stem cell research</strong></a>, health-care and even space travel with <a href="http://www.virgingalactic.com" target="_blank"><strong>Virgin Galactic</strong></a>. His brand, and passion for business, truly knows no boundaries.</p>
<p>But, getting back to Virgin Atlantic, what might be most impressive is how he has keyed into the <strong>customer experience as the crucial element of continued loyalty</strong>. Sure, Virgin has a traditional air miles program, but Branson identified several areas he believed would offer a better onboard experience, and delivered on them.</p>
<p>These features, some since copied by competitors, include:</p>
<ul>
<li> The ability to order food from your seat on-demand, according to your schedule, not the flight attendant</li>
<li>A vast choice of music and movie options, delivered to a personal entertainment screen at your seat</li>
<li>Seat-to-seat chatting with friends, colleagues or the attractive woman in 9B, via an entertainment screen keyboard</li>
<li>Custom designed “soothing” lighting and comfy seats</li>
</ul>
<p>It’s a reminder that <strong>true customer loyalty is never achieved by points programs and perks alone</strong>—you also need to deliver a <strong>superior customer experience</strong>. It’s something Branson strives for across all his business lines, and has me hoping I can find an excuse to fly Virgin Atlantic soon.</p>
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		<title>Spirit Airlines Baggage Policy &#8211; Brilliant or Bungling?</title>
		<link>http://blog.hanifinloyalty.com/2010/05/12/spirit-airlines-baggage-policy-brilliant-or-bungling.html</link>
		<comments>http://blog.hanifinloyalty.com/2010/05/12/spirit-airlines-baggage-policy-brilliant-or-bungling.html#comments</comments>
		<pubDate>Wed, 12 May 2010 04:44:12 +0000</pubDate>
		<dc:creator>BillHanifin</dc:creator>
				<category><![CDATA[Airline]]></category>
		<category><![CDATA[Customer Experience]]></category>
		<category><![CDATA[Ben Baldanza]]></category>
		<category><![CDATA[Frequent Flyer]]></category>
		<category><![CDATA[Frequent Flyer miles]]></category>
		<category><![CDATA[Retail Wire]]></category>
		<category><![CDATA[Retail Wire Blog]]></category>
		<category><![CDATA[Spirit Airlines]]></category>
		<category><![CDATA[Walmart]]></category>

		<guid isPermaLink="false">http://blog.hanifinloyalty.com/?p=2697</guid>
		<description><![CDATA[
			
				
			
		
Air travel has changed from an exciting and privileged experience to something considerably less elegant. Leisure travelers absorb the shock from ever-changing TSA procedures at security checkpoints, and unknowingly contribute to the woes of their fellow travelers when they board loaded down with enough bags to make the Beverly Hillbillies look like minimalists.
For the business [...]]]></description>
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<p>Air travel has changed from an exciting and privileged experience to something considerably less elegant. Leisure travelers absorb the shock from ever-changing TSA procedures at security checkpoints, and unknowingly contribute to the woes of their fellow travelers when they board loaded down with enough bags to make the Beverly Hillbillies look like minimalists.<a rel="attachment wp-att-2723" href="http://blog.hanifinloyalty.com/2010/05/12/spirit-airlines-baggage-policy-brilliant-or-bungling.html/baggage-handler-looking_00993agl"><img class="alignright size-full wp-image-2723" style="margin: 10px;" title="baggage-handler-looking_~00993AGL" src="http://blog.hanifinloyalty.com/wp-content/uploads/2010/05/baggage-handler-looking_00993AGL.jpg" alt="" width="240" height="196" /></a></p>
<p>For the business traveler sitting across the aisle, aspirations of time efficiency and comfort are placed on a 3 hour hold each trip as seat pitch has become so tight that only a notebook computer will open up comfortably in flight.</p>
<p>Corporate travel is increasingly driven by economics, and many flyers who used to hold out for a legacy carrier to fly in familiar circumstances and collect more frequent flyer miles are now abdicating &#8220;loyalty to the livery&#8221; and accepting the best combination of schedule and price &#8211; period.</p>
<p>There is a lot of talk among airlines and consumers about how to improve the air travel experience, and last week Spirit Airlines took a bold step towards &#8220;improving&#8221; the situation by announcing it would impose baggage fees &#8211; not for checked bags &#8211; but for bags carried on with intent to be placed in the overhead bins as of August 1.</p>
<p><strong>Ben Baldanza</strong>, Spirit&#8217;s President, has been <a href="http://today.msnbc.msn.com/id/36686726/ns/travel-news/ns/travel-news/" target="_blank"><strong>making the media rounds defending his airline&#8217;s new policy</strong></a>. Advancing a questionable argument, he has been rationalizing the new policy saying that consumers will actual save money on a net basis because Spirit&#8217;s fares are being reduced, and that 5 minutes saved in more efficient boarding  of aircraft accumulated over a 24 hour period will save 20 hours of airplane time per day &#8211; the equivalent of having two extra $40Million planes in the fleet. If that isn&#8217;t fuzzy math, then I don&#8217;t understand the concept.</p>
<p>Spirit&#8217;s new baggage policy has its foundation in operational efficiency as do many similar airline policies. The trouble is, they seem to have <strong>forgotten about the customer</strong> in the process. Between the new baggage policy and the recent announcement of its &#8220;pre-reclined seats&#8221;, Spirit is either focusing ever more narrowly on its target market, or is outsmarting itself one new policy at a time.</p>
<p><br class="spacer_" /></p>
<p>
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</p>
<p style="font-size: 11px; font-family: Arial,Helvetica,sans-serif; color: #999999; margin-top: 5px; background: none repeat scroll 0% 0% transparent; text-align: center; width: 420px;">Visit msnbc.com for <a style="text-decoration: none ! important; border-bottom: 1px dotted #999999 ! important; font-weight: normal ! important; height: 13px; color: #5799db ! important;" href="http://www.msnbc.msn.com">breaking news</a>, <a style="text-decoration: none ! important; border-bottom: 1px dotted #999999 ! important; font-weight: normal ! important; height: 13px; color: #5799db ! important;" href="http://www.msnbc.msn.com/id/3032507">world news</a>, and <a style="text-decoration: none ! important; border-bottom: 1px dotted #999999 ! important; font-weight: normal ! important; height: 13px; color: #5799db ! important;" href="http://www.msnbc.msn.com/id/3032072">news about the economy</a></p>
<p><strong>Spirit may be wiser than we think</strong>. They are a price-driven airline appearing to cater to the leisure traveler. It is possible that they have abandoned all thought of courting the business traveler, and are moving ahead with new policies to further strengthen its position in its chosen market.</p>
<p>Spirit&#8217;s promotional marketing strategy is oriented to the leisure flyer. <strong>In a recent survey of email communications used by loyalty program sponsors</strong>, Hanifin Loyalty found that Spirit was the single most prolific sender of email among 22 companies studied, with an average of 14.77 emails per month. With almost zero evidence of behavioral triggers in its email flow, Spirit uses edgy messaging to tout low prices in over 96% of its emails.</p>
<p>In my view, <strong>there can only be one low price leader per category</strong>. In retail it remains Walmart, and in air travel, it could be Spirit. There is risk to this strategy, and cracks have appeared in Walmart&#8217;s low-price strategy recently as consumers are questioning if in fact they offer the lowest prices around. There are several discussions on <strong>Retail Wire</strong> on the topic and <a href="http://www.retailwire.com/braintrust/blog_post.cfm/154530/article/71309" target="_blank"><strong>here is a link to one of them</strong></a>. The warning is that once a company is positioned as the low price leader, they have little to cushion their fall should they lose the advantage as customer experience and quality are often perceived to be below the competition.</p>
<p>Time will tell if Spirit has made the right moves and, while the market decides, my vote is for the regulators to stay out of it.</p>
<p>I believe that many business travelers will resist these changes and avoid Spirit or any other airline who adopts similar policies for two big reasons &#8211; checking a bag limits the ability to make changes to an itinerary on the day of travel and costs business travelers precious time once landed at a destination.</p>
<p>Spirit has the right to choose its course, as do we in the frequent flyer population.</p>
<p>What do you think?</p>
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		<title>IHG Hotel Group Grabs My Attention &amp; My Business</title>
		<link>http://blog.hanifinloyalty.com/2010/03/17/ihg-hotel-group-grabs-my-attention-my-business.html</link>
		<comments>http://blog.hanifinloyalty.com/2010/03/17/ihg-hotel-group-grabs-my-attention-my-business.html#comments</comments>
		<pubDate>Wed, 17 Mar 2010 15:02:49 +0000</pubDate>
		<dc:creator>TomRapsas</dc:creator>
				<category><![CDATA[Case Study]]></category>
		<category><![CDATA[Customer Experience]]></category>
		<category><![CDATA[Crowne Plaza]]></category>
		<category><![CDATA[Fairmont Hotels]]></category>
		<category><![CDATA[frequent guest program]]></category>
		<category><![CDATA[Hhonors]]></category>
		<category><![CDATA[Hilton Honors]]></category>
		<category><![CDATA[Holiday Inn]]></category>
		<category><![CDATA[IHG]]></category>
		<category><![CDATA[InterContinental Hotels Group]]></category>
		<category><![CDATA[loyalty points]]></category>
		<category><![CDATA[Luckiest Loser]]></category>
		<category><![CDATA[President's Club]]></category>
		<category><![CDATA[rewards program]]></category>

		<guid isPermaLink="false">http://blog.hanifinloyalty.com/?p=2526</guid>
		<description><![CDATA[
			
				
			
		
Up until a few weeks ago, I had little awareness of the InterContinental Hotels Group. Known by the acronym IHG, they operate brands like Holiday Inn and Crowne Plaza which are part of the Priority Club Rewards loyalty program.
The main reason IHG hasn’t been on my radar is simple: for most of the past decade, [...]]]></description>
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<p>Up until a few weeks ago, I had little awareness of the <a href="http://www.ichotelsgroup.com" target="_blank"><strong>InterContinental Hotels Group</strong></a>. Known by the acronym IHG, they operate<a rel="attachment wp-att-2538" href="http://blog.hanifinloyalty.com/2010/03/17/ihg-hotel-group-grabs-my-attention-my-business.html/priority-club"><img class="alignright size-full wp-image-2538" style="margin: 10px;" title="Priority Club" src="http://blog.hanifinloyalty.com/wp-content/uploads/2010/03/Priority-Club.png" alt="" width="166" height="49" /></a> brands like <strong>Holiday Inn</strong> and <strong>Crowne Plaza</strong> which are part of the <a href="http://www.ichotelsgroup.com/h/d/pc/1/en/home" target="_blank"><strong>Priority Club Rewards</strong></a> loyalty program.</p>
<p>The main reason IHG hasn’t been on my radar is simple: for most of the past decade, the majority of my stays were business-related and on the company dime. So to build up maximum loyalty points for personal use, I had narrowed my hotel universe to the Fairmont Hotel group (<a href="http://www.fairmont.com/fpc" target="_blank"><strong>President’s Club</strong></a>), as well as hotels aligned with the <a href="http://hhonors1.hilton.com/en_US/hh/home_index.do" target="_blank"><strong>Hilton Hhonors</strong></a> program.</p>
<p>Over the past few weeks though, IHG has come to my attention not once, but twice.</p>
<p><strong>Reason #1.</strong> IHG made a brilliant marketing move. When Hilton Hotels decided to raise the number of loyalty points required for a free hotel stay earlier this year, IHG pounced. They launched a campaign for their Priority Club rewards program that called out the changes to the Hhonors frequent guest program via a contest called the <a href="http://www.pointsloser.priorityclub.com/" target="_blank"><strong>“Luckiest Loser”</strong></a>.</p>
<p>The consumer who was the “luckiest loser”—the one with the most points invested in the HHonors program—won 2 million Priority Club points. Additionally, 20,000 “lucky losers” got up to 20% of their current HHonors balance in Priority Club points. Everyone else got 1,000 points just for entering.</p>
<p>It was a smart move —and a great use of the IHG database. It seems they had a 50 to 60% overlap between Priority Club members and those enrolled in HHonors, making it easy to target disgruntled Hhonors members. After all, these folks had seen their stake in the Hilton program shrink by 20-25% overnight.</p>
<p><strong>Reason #2.</strong> IHG saved me a few bucks. Funny how when I went solo and hotel charges began appearing on my personal card, as opposed to a corporate credit card, I began looking at hotels that were, how can I phrase this, cheap. So when I was searching for an inexpensive place to stay in New York City a few weeks back, I checked the IHG corporate site—and came up with a mid-town <strong>Manhattan Holiday Inn</strong> with an eye-popping rate of under $100 bucks a night.</p>
<p>So what was a $100 room in New York City like? Okay, it won’t be confused with <a href="http://www.fairmont.com/theplaza" target="_blank"><strong>The Plaza</strong></a>. But while this particular Holiday Inn <a rel="attachment wp-att-2541" href="http://blog.hanifinloyalty.com/2010/03/17/ihg-hotel-group-grabs-my-attention-my-business.html/the-plaza"><img class="alignright size-medium wp-image-2541" style="margin: 10px;" title="The Plaza" src="http://blog.hanifinloyalty.com/wp-content/uploads/2010/03/The-Plaza-300x127.png" alt="" width="210" height="89" /></a>was a little worn around the edges, the room was clean, the bed was more than comfy and the staff was friendly. I even got a pretty good cup of coffee in the morning.</p>
<p>So now I’m a member of a new hotel loyalty program, IHG’s Priority Club Rewards. I’ve already received a “thank you for my stay” e-mail which was nice. And while I dearly miss the Fairmont, until the economy picks up, I’ll be pulling out my Priority Club Rewards card a little more often.</p>
<p><em><strong>Tom Rapsas</strong> is a 20 year direct and loyalty marketing veteran and heads up Creative Services at <strong>Hanifin Loyalty</strong>. He can be reached on Twitter <a href="http://twitter.com/tomrapsas" target="_blank"><strong>@tomrapsas</strong></a></em></p>
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		<title>DIRECTV Becomes a Cable Company</title>
		<link>http://blog.hanifinloyalty.com/2010/02/01/directv-becomes-a-cable-company.html</link>
		<comments>http://blog.hanifinloyalty.com/2010/02/01/directv-becomes-a-cable-company.html#comments</comments>
		<pubDate>Tue, 02 Feb 2010 04:00:26 +0000</pubDate>
		<dc:creator>JimKuschill</dc:creator>
				<category><![CDATA[Case Study]]></category>
		<category><![CDATA[Customer Experience]]></category>
		<category><![CDATA[customer service]]></category>
		<category><![CDATA[Directv]]></category>
		<category><![CDATA[Loyalty Marketing]]></category>

		<guid isPermaLink="false">http://blog.hanifinloyalty.com/?p=2231</guid>
		<description><![CDATA[
			
				
			
		
Editors Note: Jim Kuschill is a patient man. Patient enough to have architected one of the world&#8217;s leading loyalty marketing software platforms while Chief Technology Officer of Frequency Marketing. DIRECTV got his goat and the following is worth a read, especially if you&#8217;re the person responsible for customer experience or customer service at your company.

I [...]]]></description>
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<p><strong>Editors Note:</strong> Jim Kuschill is a patient man. Patient enough to have architected one of the world&#8217;s leading loyalty marketing software platforms while Chief Technology Officer of Frequency Marketing. DIRECTV got his goat and the following is worth a read, especially if you&#8217;re the person responsible for customer experience or customer service at your company.</p>
<hr size="5" noshade="noshade" />
<p>I don’t know when the customer experience scales tipped, but indeed they have – <a href="http://www.directv.com/" target="_blank"><strong>DIRECTV</strong></a> can now claim to be just as lacking as your typical cable company.</p>
<p>My enlightenment started a few months ago…</p>
<p>As is the case with so many of us, my wife and I are pretty busy and we almost never remember <strong>pay per view (PPV)</strong>. On this particular evening, I remembered PPV and even identified a movie that <a rel="attachment wp-att-2235" href="http://blog.hanifinloyalty.com/2010/02/01/directv-becomes-a-cable-company.html/directv"><img class="alignright size-full wp-image-2235" style="border: 10px solid black; margin: 20px;" title="Directv" src="http://blog.hanifinloyalty.com/wp-content/uploads/2010/01/Directv.jpg" alt="" width="69" height="65" /></a>would be fun to watch. I queued it up and was looking forward to some comedy over the coming weekend, or maybe the weekend after.</p>
<p>In case you haven’t heard, the PPV model has changed and the (then) subtle notations on the ordering menu about the “new and improved” model were too subtle for me to comprehend. My movie recorded, my bill was debited, and my movie was erased.</p>
<p>I did some research and discovered this was certainly my fault. Flaming blog entries from a variety of people indicated that the change had taken place some time before. Never mind that there wasn’t anything with my billing statement explaining the change, nor an e-mail, nor a separate communication. It was as if DirecTV and the Studios didn’t want anybody to know about the change. How could it be that they wouldn’t want you to know that “pay per view” had become “pay per download?” Clearly the emphasis was now on “pay per” and viewing be damned.</p>
<p>I spent time wondering about <strong>“fair use”</strong> and what the Studios were thinking. How does a movie taking up space on somebody’s DVR lose them money? Do they expect thousands of recurring neighborhood parties for Battle of the Smithsonian? Maybe the movie gets tweeted around the world in 4 million little pieces? I just couldn’t figure it out.</p>
<p>I sent an e-mail of complaint to DirecTV and requested a credit to my bill. No response. I sent another. Still nothing. The $4.99 wasn’t worth a call, which sadly I suspect was the plan in not responding to the e-mail, so I simply bit my tongue.</p>
<p>But, I really did want to watch that movie, so I tried to order it again. The DirecTV system, being smarter than I am, decided that because I had already viewed that movie that I couldn’t really want to view it again. Well, that’s not quite correct, it said something was “wrong” and I needed to call them. Sorry, it just wasn’t worth it.</p>
<p><strong> I vowed to never again use PPV</strong> – we simply couldn’t watch a movie within 24 hours of recording.</p>
<p>I have to imagine many people did just the same and sales tanked quite a bit. I have to imagine that DirecTV noticed, and trying to get viewers back they held a promotion in December offering 4 movies for the price of 2. Frankly, this was enough to get my attention and break my vow – which is usually a bad idea. But I had an ace up my sleeve and since the prior problem I had developed a Rube Goldberg way of recording the movies, so maybe I could beat the system, maybe just a little.</p>
<p>With the hustle of the holidays we forgot about the offer until the morning of December 30th, so we had to move fast so as not to impinge too much on all the football we wanted to watch. I scheduled 2 of the movies for the night of the 30th and the other 2 for the night of the 31st (making certain the last finished recording before the clock ticked over to the 1st). I got up early on the 31st, scheduled a few football games to record, and started my “transcription” process. Did the same thing on the 1st (with the parade this time). Mission accomplished – didn’t miss much of any football game and had 4 movies to watch sometime later for under $10. Such a deal. Well, almost. Turns out I had a media problem with one movie so we got 3 for $10, still not so bad.</p>
<p><strong>Well, I just got my bill</strong>. The 2 movies I downloaded on the 30th show up as being downloaded on the 31st. And sadly, the 2 movies I downloaded on the 31st show up as being downloaded on the 1st. So no credit.</p>
<p>I immediately call DirecTV and quickly get through to Customer Service. Mickey confirms that his screens show the movies correctly being ordered/delivered on the 30th and 31st. I ask what seems to be a logical question, “Why does my bill show the 31st and the 1st?” Mickey has no answer. My next question is about the missing credit. Mickey has an answer for this – “DirecTV will mail you a certificate that you need to return.” Huh? “I’m sorry, can you say that again?” Mickey repeats his explanation &#8211; they are going to mail a certificate and I need to return it “with my payment.” I mention that I’m on an automatic payment plan, “How will that work?” I ask. Mickey doesn’t know. “Does the certificate come with the bill or will it be in a separate envelope?” Mickey doesn’t know. “When am I getting the certificate?” Mickey is happy he has an answer to this one – “Usually 4 to 6 weeks.” “Usually?” I inquire. “Well, yes, usually 4 to 6 weeks” say’s Mickey.</p>
<p>I ask Mickey if he doesn’t think this is pretty “customer unfriendly.” No response. I ask if I can make a complaint about the process. Mickey offers to forward an e-mail to the complaint department, but his heart isn’t in it. “Mickey, I understand this is not of your doing, but somebody there should really be thinking about this more from the customer perspective.” No comment from Mickey. I wish him a nice weekend and hang up.</p>
<p><strong>DirecTV will pay for people to answer the phones because the bills are wrong</strong>. DirecTV will pay for people to answer the phones to explain that a certificate will come in the mail, sometime in the future. DirecTV will pay for the certificate stock. DirecTV will pay people to print and mail the certificates. DirecTV will make their customers spend time and money to return the certificates. DirecTV will pay people to answer calls about where the certificates are. DirecTV will pay people to open the envelopes that the certificates are in and post them to accounts. And, inevitably, when certificates are lost or damaged in distribution, lost or damaged in return, or credited to the wrong account, DirecTV will again pay for people to resolve these problems.</p>
<p>DirecTV could have given their customers a warm fuzzy by giving a direct credit. They could have described the process up front (<em><strong>in readable type</strong></em>) and then people could have made an informed decision. Nope. Somebody at DirecTV created an equation that said the promotion wouldn’t cost them as much by doing it this way. Clearly the equation didn’t take into account the loss of customer lifetime value.</p>
<p>As I said, <strong>DirecTV is now officially a cable company</strong>.</p>
<p>And so much for being a DirecTV advocate.</p>
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		<title>Sometimes Even The Best Customer Service Comes Up Short</title>
		<link>http://blog.hanifinloyalty.com/2009/11/05/sometimes-even-the-best-customer-service-comes-up-short.html</link>
		<comments>http://blog.hanifinloyalty.com/2009/11/05/sometimes-even-the-best-customer-service-comes-up-short.html#comments</comments>
		<pubDate>Thu, 05 Nov 2009 04:43:00 +0000</pubDate>
		<dc:creator>TomRapsas</dc:creator>
				<category><![CDATA[Brand]]></category>
		<category><![CDATA[Customer Experience]]></category>
		<category><![CDATA[AMC]]></category>
		<category><![CDATA[Apple]]></category>
		<category><![CDATA[Chris Brogan]]></category>
		<category><![CDATA[Comcast]]></category>
		<category><![CDATA[Countdown with Keith Olbermann]]></category>
		<category><![CDATA[Credo cell phones]]></category>
		<category><![CDATA[Keith Olbermann]]></category>
		<category><![CDATA[Loyal Customers]]></category>
		<category><![CDATA[MSNBC]]></category>
		<category><![CDATA[Scientific Atlanta]]></category>

		<guid isPermaLink="false">http://blog.hanifinloyalty.com/?p=1917</guid>
		<description><![CDATA[
			
				
			
		
It’s probably no surprise that the great brands are able to combine excellent products with a superior level of customer service. After all, it’s this magic combination that makes them great brands in the first place.
Go to an Apple store to purchase their (in my opinion) superior products, and you get service from friendly, helpful [...]]]></description>
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<p>It’s probably no surprise that the great brands are able to combine excellent products with a superior level of customer service. After all, it’s this magic combination that makes them great brands in the first place.</p>
<p>Go to an Apple store to purchase their (in my opinion) superior products, and you get service from friendly, helpful sales reps who truly know and love their stuff. I’m also a big fan of <strong><a href="http://www.credomobile.com" target="_blank">Credo cell phone service</a></strong>. Not only does part of my bill go towards support of worthwhile social causes, every time I talk to customer service I find their reps are some of the nicest people in the world.</p>
<p>Then, there are certain products or services we use and like in spite of their customer service. Like the cool hotel on the beach, with the nice rooms and fantastic ocean views, but the less than accommodating staff. Or the pizza joint with the best pies in town and the never-on-time delivery.</p>
<p><strong>But what about the opposite scenario?</strong> Can great customer service overcome a product or service that is deficient in some way to the competition?</p>
<p>Regular readers of Loyalty Truth already know where I’m going with this: right to my television set and Comcast. <strong><a href="http://blog.hanifinloyalty.com/2009/09/26/comcast-and-the-two-faces-of-customer-service.html" target="_blank">On these very Web pages, I recently wrote</a></strong> about my efforts to get my hands on a digital converter box from Comcast in order to receive a couple of channels that had dropped off my set.</p>
<p>You see, back in April, I was informed that I needed to pick up a digital converter to continue receiving MSNBC and AMC. But after going to my local office, I was told, “we’re out of them, come back in January”. A 9-month wait. After checking back in September, I received several conflicting responses, and after a lot of back-and-forth, I was led me to believe a converter would be sent to me in two weeks.</p>
<p>Fast forward to September 26th: two days after my last Comcast blog entry was posted, I received an online reply from <strong>ComcastMark</strong> of Comcast National Customer Operations. After answering a few questions, I was turned over to ComcastMike (or was it ComcastRich?) who e-mailed me with a few more questions. He, in turn, had a Comcast customer service rep named Cynthia call me.</p>
<p>I wish I could tell you the story had a happy ending, that Cynthia stopped by in a Comcast van to hand-deliver the converter box to me, and I was now writing this from my bedroom office, <strong><a href="http://www.msnbc.msn.com/id/3036677/" target="_blank">Countdown with Keith Olbermann</a></strong> playing in the background. But no such luck.</p>
<p>You see, instead of bringing me good news, <strong>ComcastCynthia</strong> reverted back to the original story. She told me there was in fact a 9-month wait for the digital converters, due to a delay by supplier Scientific Atlanta. She would call me as soon as they came in, probably in January.</p>
<p>To me, a 9-month wait to get the converter box means that someone in the offices of Comcast had really dropped the ball.  A 9-month wait means these devices must be in demand. Yikes, can’t Comcast put a little pressure on Scientific Atlanta to ramp up production? After all, in my town, a place where Comcast had a monopoly for many years, their share of market has dropped below 50%. Surely, there had to be a quicker way, Comcast. <strong>You’re bleeding customers!</strong></p>
<p>It got me thinking about a recent post by <strong><a href="http://www.chrisbrogan.com" target="_blank">Chris Brogan</a></strong> who pointed out that when a customer service rep tweets “some kind of comforting or informational note to someone who’s having a problem in real time, this information doesn’t exactly travel (easily) through the rest of the system to the people most likely to be directly in front of that person.” Or, in my case, to Cynthia, my designated Comcast rep.</p>
<p>Yet, I don’t really blame ComcastMark or ComcastMike or even ComcastCynthia. Sure, I was passed down the line once, twice, but that’s okay, as they all got back to me in a prompt and courteous manner. Cynthia also gave me the straight story, contrary to my previous encounter with a Comcast rep who said I’d have the converter mailed to me in a couple of weeks.</p>
<p>But despite their best efforts, I’m still in the same place I was back in April, before the Comcast National Customer Operations crew got involved—in essence, waiting 9 months for a part. (Which makes me glad I didn’t lease my car from Comcast.)</p>
<p>It just goes to show you that <strong>all the great customer service people in the world often don’t translate into happy, loyal customers</strong>—unless you have an organization behind them that gives them the tools, and great products and services, to back them up.</p>
<p>Tom Rapsas is an independent Creative Director/Writer/Strategist. He can be reached at <strong><em>tomrapsas@gmail.com</em></strong> and via Twitter <strong><a href="http://twitter.com/tomrapsas" target="_blank">@tomrapsas</a></strong>.</p>
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		<title>Why is Wal Mart Crushing the Competition?</title>
		<link>http://blog.hanifinloyalty.com/2009/10/21/why-is-wal-mart-crushing-the-competition.html</link>
		<comments>http://blog.hanifinloyalty.com/2009/10/21/why-is-wal-mart-crushing-the-competition.html#comments</comments>
		<pubDate>Wed, 21 Oct 2009 12:44:29 +0000</pubDate>
		<dc:creator>BrianKryzanski</dc:creator>
				<category><![CDATA[Customer Experience]]></category>
		<category><![CDATA[Retail]]></category>
		<category><![CDATA[Action Alley]]></category>
		<category><![CDATA[Big Box Retail]]></category>
		<category><![CDATA[Big Retail]]></category>
		<category><![CDATA[customer surveys]]></category>
		<category><![CDATA[focus groups]]></category>
		<category><![CDATA[market research]]></category>
		<category><![CDATA[polls]]></category>
		<category><![CDATA[Project Impact]]></category>
		<category><![CDATA[Sam Walton]]></category>
		<category><![CDATA[Time Magazine]]></category>
		<category><![CDATA[Walmart]]></category>

		<guid isPermaLink="false">http://blog.hanifinloyalty.com/?p=1869</guid>
		<description><![CDATA[
			
				
			
		
Sam Walton’s vision of creating a retail giant that would stock shelves with every day low priced items and crush the competition is still standing tall, even in a tough economy. They have managed to wipe out nearly all the competition and are looking to take out what’s left via Project Impact.
 Project Impacts is [...]]]></description>
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<p>Sam Walton’s vision of creating a retail giant that would stock shelves with every day low priced items and crush the competition is still standing tall, even in a tough economy. They have managed to wipe out nearly all the competition and are looking to take out what’s left via <strong><a href="http://www.time.com/time/business/article/0,8599,1920698,00.html" target="_blank">Project Impact</a></strong>.</p>
<p><strong><a href="http://www.huffingtonpost.com/2009/09/09/walmarts-project-impact-r_n_280831.html" target="_blank"> Project Impact</a>s </strong>is in the beginning stages and represents a massive store and strategy remodeling effort. The result will be cleaner, less cluttered stores and friendlier customer service intended to improve the shopping experience. None of this is good news for competitors Kmart and Toys R Us.</p>
<p><strong>Why is Wal Mart so successful?</strong></p>
<p>The answer is quite simple and the company&#8217;s Northeast Manager <em>Lance De La Rosa</em> said it best in a recent article written by <strong><a href="http://www.time.com/time/business/article/0,8599,1920698,00.html" target="_blank">Time Magazine</a></strong> &#8211; “We&#8217;ve listened to our customers, and they want an easier shopping experience,&#8221; says De La Rosa. &#8220;We&#8217;ve brightened up the stores and opened things up to make it more navigable.&#8221;</p>
<p>One of the most noticeable changes is that Project Impact stores reshape <strong><a href="http://www.flickr.com/photos/21241102@N00/3482823229/" target="_blank">Action Alley</a></strong>, the aisles where promotional items were pulled off the shelves and prominently displayed for shoppers. Those stacks crowded both the aisles and interrupted sight lines.  Now, the aisles are all clear, and you can see most sections of the store from any vantage point. For example, standing on the corner intersection of the auto-care and crafts areas, you can look straight ahead and see where shoes, pet care, groceries, the pharmacy and other areas are located.</p>
<p>Maybe more important, discount price tags are still at eye level, so <strong>the value message doesn&#8217;t get lost</strong>.</p>
<p>As I read the article, the statement that “<strong>We’ve listened to our customers</strong>” stuck me as the most important element of Walmart&#8217;s success.  They listen to what their customers want and strategize to deliver &#8211; period. How many times do we hear what our customers want, but don&#8217;t act in turn as if we really listened?</p>
<p>Big Box retail pays big money for market research, customer surveys, polls and focus groups, but doesn&#8217;t seem to put the information to use often enough.  I suggest that Big Retail spend less time &#8220;wordsmithing&#8221; this message into company mission statements and focus on executing against the promises made. As many businesses are closing their doors, Wal Mart chugs along, widening their lead in a race they seem determined to win.</p>
<p>Hats off to Wal Mart as they implement this new merchandising strategy and read back customer needs in store design and operations.</p>
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		<title>Punchcards on Every Menu in Coral Gables</title>
		<link>http://blog.hanifinloyalty.com/2009/10/20/punchcards-on-every-menu-in-coral-gables.html</link>
		<comments>http://blog.hanifinloyalty.com/2009/10/20/punchcards-on-every-menu-in-coral-gables.html#comments</comments>
		<pubDate>Tue, 20 Oct 2009 11:14:08 +0000</pubDate>
		<dc:creator>BillHanifin</dc:creator>
				<category><![CDATA[Customer Experience]]></category>
		<category><![CDATA[Retail]]></category>
		<category><![CDATA[Coral Gables]]></category>
		<category><![CDATA[customer database]]></category>
		<category><![CDATA[Daily Grind]]></category>
		<category><![CDATA[Giardino Gourmet Salads]]></category>
		<category><![CDATA[lighthouse point]]></category>
		<category><![CDATA[Pasión de Cielo]]></category>
		<category><![CDATA[punch cards]]></category>

		<guid isPermaLink="false">http://blog.hanifinloyalty.com/?p=1700</guid>
		<description><![CDATA[
			
				
			
		
In the middle of bustling multi-cultural Miami, Coral Gables is an oasis of sleek affluence framed by Spanish and Mediterranean architecture.
The rhythm of the city at lunch is to skip franchise restaurants and instead seek out one of the many independent stops for a meal or just coffee.
Last week, lunch turned into a two-part experiment, [...]]]></description>
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<p>In the middle of bustling multi-cultural Miami, <strong><a href="http://www.coralgables.com/" target="_blank">Coral Gables</a></strong> is an oasis of sleek affluence framed by Spanish and Mediterranean architecture.</p>
<p>The rhythm of the city at lunch is to skip franchise restaurants and instead seek out one of the many independent stops for a meal or just coffee.</p>
<p>Last week, lunch turned into a two-part experiment, first visiting <strong><a href="http://www.giardinosalads.com/" target="_blank">Giardino Gourmet Salads</a></strong> for something light and then stopping by <strong><a href="http://www.pasioncoffee.com/" target="_blank">Pasión de Cielo</a></strong> for coffee.  I would recommend each establishment for local visitors. The salads at Giardino are high quality and custom made while being prepared in a quasi-QSR environment.  Quality, healthy food and quick service don&#8217;t always go together, which makes Giardino worth a stop. Walking into Pasión de Cielo, I was struck by the Andean feel to the interior decor and the wide choice of gourmet coffees. Not every day would I drop the extra dollars for Jamaican Blue Mountain or Kona coffee, but this day it seemed worthwhile.<img class="alignright size-medium wp-image-1851" title="JardinCG" src="http://blog.hanifinloyalty.com/wp-content/uploads/2009/10/JardinCG-300x180.jpg" alt="JardinCG" width="300" height="180" /></p>
<p>You might wonder why I am writing about salads and coffee in a loyalty marketing blog. The simple reason is that, in place of offering me &#8220;desert&#8221;, each restaurant offered me a punch card in hopes of a return visit.</p>
<p>Two thoughts came to mind:</p>
<ol>
<li>If I were a small retailer or restaurant, <strong>would I bother with a punch card</strong>?</li>
<li>If I did go down the frequency marketing path, <strong>how could I do it better</strong> than the typical offering?</li>
</ol>
<p>The right answer to the question is found by answering both together. I would not go down the punch card path unless I was <strong>fully committed to doing it better than the average bear</strong>. Why retailers wake up one day and think they should throw a punch card into their marketing mix makes no sense to me. Sure, there is a chance that they encourage some bounce back visits, but it is just as likely that the cards will be lost, and without anything more than the distant promise of &#8220;the 11th one free&#8221;, many people will lose focus long before that time comes.</p>
<p><strong>Bottom line:</strong> punch cards without any enhancement don&#8217;t change behavior. At least not enough to warrant the slight give away in margin.</p>
<p>My two visits offered a contrast in punch card execution. Pasión de Cielo threw me the card like it was a <strong>receipt to be tossed in my bag</strong>. No reinforcing message, no request for an email, nothing. Giardino on the other hand, delivered the punch  card like it was a <strong>special gift</strong> that I should guard. They also handed me a card and asked that I give them name, email, and phone number to receive special offers and occasional announcements.  The <strong>biggest challenge for small business is customer identification</strong>, and at least Giardino took a step in the right direction. How they follow up and what they can offer that will encourage my return visit remains to be seen, but I like their approach.</p>
<p>Another local coffee stop that I frequent is the <strong><a href="http://www.dailygrindunwind.com/index.php" target="_blank">Daily Grind</a></strong>. They don&#8217;t offer a punch card but do have wireless internet. Sensitive to the <strong><a href="http://online.wsj.com/article/SB124950421033208823.html#mod=rss_US_News" target="_blank">wireless squatters</a></strong> that take up table space,<img class="alignright size-medium wp-image-1847" title="CieloCafe" src="http://blog.hanifinloyalty.com/wp-content/uploads/2009/10/CieloCafe-300x176.jpg" alt="CieloCafe" width="300" height="176" /> they provide a password for 1 hour with each purchase. Why not take it a step farther and combine the punch card and email gathering with an offer of wireless service for those patrons willing to share their data? It wouldn&#8217;t take much to figure out how a tiered system that would award more wireless time to more valuable customers.</p>
<p>Sometimes it is not the tactic that is in question, just the execution. A punch might seem shallow and worthless to some, but if it is executed to improve customer visit experience, build a customer database, and drive return visits, it is a low cost and effective tool. Considering that the cost of the 11th cup of coffee is nominal, these retailers might have the <strong><a href="http://blog.hanifinloyalty.com/2008/02/06/the-cost-of-building-a-database.html" target="_blank">lowest cost going to acquire customer information</a></strong> for their database.</p>
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		<title>Comcast and the two faces of customer service</title>
		<link>http://blog.hanifinloyalty.com/2009/09/26/comcast-and-the-two-faces-of-customer-service.html</link>
		<comments>http://blog.hanifinloyalty.com/2009/09/26/comcast-and-the-two-faces-of-customer-service.html#comments</comments>
		<pubDate>Sat, 26 Sep 2009 19:44:36 +0000</pubDate>
		<dc:creator>TomRapsas</dc:creator>
				<category><![CDATA[Contributing Authors]]></category>
		<category><![CDATA[Customer Experience]]></category>
		<category><![CDATA[Tom Rapsas]]></category>
		<category><![CDATA[Comcast]]></category>
		<category><![CDATA[customer service]]></category>

		<guid isPermaLink="false">http://blog.hanifinloyalty.com/?p=1736</guid>
		<description><![CDATA[
			
				
			
		
If you’re like me and work on the creative side of the business, you’d like to believe that good communications and a healthy social dialog are the keys to building relationships and ensuring customer loyalty.
But the fact is, your company is often only as good as the people you have on the front line. One [...]]]></description>
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<p>If you’re like me and work on the creative side of the business, you’d like to believe that good communications and a healthy social dialog are the keys to building relationships and ensuring customer loyalty.</p>
<p>But the fact is, your company is often only as good as the people you have on the front line. One bad experience either in-store, on the phone, or via an online chat, can often tarnish even your best marketing efforts.</p>
<p>Take  <strong>Comcast</strong>. Is there any company whose customer service reputation swings more wildly across the great/terrible spectrum? Comcast has been both vilified for its customer service via the infamous <strong><a href="http://comcastmustdie.blogspot.com/" target="_blank">“Comcast must die” Web site</a></strong> and glorified for its prompt <strong><a href="http://twitter.com/comcastcares" target="_blank">@comcastcares</a></strong> replies on Twitter.</p>
<p>Which brings me to <strong>a recent personal encounter</strong> I had with the cable conglomerate. I’m a decade long Comcast customer and in April I found that two channels we occasionally watched at home, MSNBC and AMC, had disappeared from our two televisions that did not have a dedicated cable box.  I called 1-800-COMCAST and was told that I needed a digital converter to continue receiving these channels and could pick one up for free—by going to the dreaded local Comcast office.</p>
<p>What’s most off-putting about this office isn’t the untouched-since-the-‘70s interior or the unsmiling, laconic customer service reps—it’s, I kid you not, the counter-to-ceiling wall of thick bullet-proof glass the reps sit behind.  It’s the kind of set-up you see on TV in the <strong>visiting rooms of prisons</strong>, complete with vented portholes through which you talk to the person opposite you. It serves as a quite literal barrier to developing any kind of customer rapport, and gets you wondering why they need this kind of security in the first place.</p>
<p>So anyway, I went to the office to get my free converters—only to have the customer service rep behind the wall of glass tell me, with an unmistakable I-hate-my-job vibe, “we’re out of them, you need to come back in January”. <strong>A 9-month wait!</strong></p>
<p><strong></strong> From the parking lot I made a call to 1-800-COMCAST to complain and received an apology. I was told that the converters were on order and should in fact be ready in September, a slightly more tolerable 5 months away.</p>
<p>Fast forward to a few days ago. Using Instant Chat at the Comcast Web site, I check to see if the converters might be ready. After being passed from one associate to another more versed with the converters, I’m informed they’re now available and I can have them shipped to my home. Yes!  Only, after confirming my address, I’m told that, oops, they can’t mail the converters to my area (for a reason never explained) and that I need to contact my local office to see if they have them.</p>
<p>“Wait a second,” I chat back, “I don’t want to contact my local office, <strong>that’s why I’m talking to you</strong>.”  A canned response is sent back to me to the effect, “I am so sorry about your situation. I know you’re frustrated, but you need to contact your local office. Is there anything else I can do for you today?”</p>
<p>Yes, for starters you can drop the canned faux sincerity. Then, you can break the rules and ship me my free converters. OR you can contact the local office for me and see if they have the converters. After all, I started our conversation by telling you that I was very tempted by a money-saving Verizon triple play offer I was receiving in the mail 3 or 4 times a week. Hint: You’re in danger of losing me as a long-time customer!</p>
<p>Funny thing is, I call 1-800-COMCAST an hour or so later on an unrelated Internet issue. And, after addressing the problem, the customer service rep quickly switches subjects. “Sir, I see you’re having an issue getting digital converters. Can I have them mailed to you in the next two weeks?”  Shocked, I reply “Yes, you can, thank you.”</p>
<p>Sometimes Comcast offers terrible customer service. Sometimes Comcast offers great customer service. And sometimes <strong>you get to see both of them in the very same day</strong>. But my guess is, most customers only see one side. And if it’s the terrible side, they don’t stay customers for very long.</p>
<p>(Now, let’s see if I get my converters!)</p>
<p>Tom Rapsas is an independent Creative Director/Writer/Strategist. He can be reached at tomrapsas@gmail.com and via Twitter<strong> <a href="http://twitter.com/tomrapsas" target="_blank">@tomrapsas</a></strong></p>
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