With March Madness about to launch into full swing, you might be dusting off your list of favorite sports bars. In South Florida, there are a lot to choose from, but there is only one that combines good vibes, good food and a decent rewards program – Duffy’s Sport Grill. If you aren’t familiar with the area, Duffy’s is operates a 20 store chain between Melbourne and Plantation on the Southeast Florida coast.  I believe the firm to be privately held and have noticed their expansion in my area through assumption of real estate from Roadhouse Grill as that chain exited locations.

The program is simple to understand, encourages repeat visits and sports an email based communications stream that provides just enough information without being intrusive. They’ve even got a decent Twitter account which seems to be following people back (the exception for many business twits) and posts about more than just their daily special.

The Club MVP program was comfortably explained by well trained staff. Enrollment consisted of completing a simple post card size form while I waited to wrap up our tab.  Name, email address, zip code and birthday were the required data to get started.I wonder if they use the zip code to manage communications – South Florida is a tourist market and maybe they tailor offers for locals and visitors.

The program awards 1 point for every dollar spent and automatically credits $10 to the member card once accumulating 100 points. Points never expire and the 10% back is nothing to sneeze at. Members can earn double points every Tuesday and those who visit 12 times in a 12 month period receive a $25 credit on their birthday.

The communications via email over the first 30 days were on target and well paced:

• After enrolling, I received a Welcome to the Club MVP program message highlighting special offers and links to get more information
• Day 4 – I received “Ways to Save Big at Duffy’s” which informed me of mid-afternoon specials at 40% off
• Day 8 – Since we were nearing the holiday season, I received an email inviting me to ” Book your company’s holiday party and keep the MVP points yourself!”
• Day 18 – Another special was highlighted having to do with Game Day Deals (food and drink specials)
• Day 30 – More Game Day Deals were touted prior to the weekend

Following this first salvo of email, they’ve been judiciously letting me know about seasonal events, gift card specials (buy $100 gift card and earn $20 bonus)  and other special offers 2-3 x per month. I can’t say that they have offered anything of a personalized nature but since they haven’t tried a survey, that stands to reason. I also haven’t noticed any email triggered by a visit or items ordered – something to consider for the future.

One competitor on the local scene is Flanigan’s, renowned to have the best ribs in town. For years the stores in our area have been offering paper based punch cards, which in my opinion are completely worthless. There is a temporary feeling of earning something when you receive the card from the wait staff, but inevitably the card is lost along with the value.

The Flanigan’s chain has fragmented ownership and just recently I saw the group that owns the Quarterdeck (near the beach and Port Everglades) going “Duffy’s style” with a plastic card that allows value to be accumulated.  Let’s see how that one works out.

The lesson learned is simple: just like cash back can be turned from a transparent reward that offers limited leverage into something more powerful with partner offers, a few tweaks to the traditional punch card used by many small – medium businesses can be made to create a loyalty program that matters.

Chris Brogan is going to jump all over me.

In a keynote presentation he made recently at Like Minds 2010, he rightfully commented that the chatter about social media in US conferences had become “boring” and, with tongue in cheek, suggested  “I think it should be legal that if someone says “Just join the conversation” that it is legal to punch them in the face“.

OK, Chris, you have a free swing!

I’m suggesting that marketers interested in understanding consumer purchase behaviors and retail “join the conversation” at Retail Wire.

Here’s why….

The information funnel in my offices is getting bigger by the day. I try to narrow my field of vision and manage my time by setting up Google Alerts on my favorite loyalty marketing topics and subscribing to RSS feeds that I can browse in my Google Reader.  Those two sources create an overwhelming volume of information at times and so, I have chosen a very select few reads that are allowed to hit my inbox.

Three current favorites have been on a roll lately.

• Chris Brogan brightened my day with “I Could Totally Do That” and shared an entertaining video that you should see.
• Christopher Penn switched up his interesting stream of information with an inspirational post “Renewing Faith”, also kicking a day off in the right direction.
• Tim Sanders served up “Why I seldom reply to Tweets Publicly” which presented an opposing viewpoint to something Chris had written about earlier.

So what’s this have to do with Retail Wire?

I’ve been reading the site for a while and find they continually pose questions on critical issues, current events, and future trends in retail loyalty, online retail rewards and broader aspects of retailing. And, they share the information in a conversational way, with daily questions posed and members of a Brain Trust Panel chiming in along with anyone else who feels the urge.

I’ve recently joined the Brain Trust and you can find a compilation of my comments on a variety of topics in my Retail Wire Blog here.  I’ve got my favorite industry specific information sources for banking, card marketing, airline, hospitality, as well as a few more for general marketing topics. Beyond the self – promotional aspect of this post, I had to let you know that Retail Wire is my favorite for staying current in this segment.

Join the conversation at Retail Wire.

OK, Chris, you can have your swing now!

Online retailers have a uniquely difficult challenge in building relationships and creating customer loyalty. Without a store-front to rely upon, most online retailers lead with product selection and price to attract first time buyers.

This leaves many to rely on ad words and keyword search as their only acquisition funnel. Generating repeat business, building trusted relationships, and retaining valuable customers? Those three goals can become esoteric concepts to the marketing department as they  continually focus resources on acquisition for fear of muffling the principal sales driver that works.

The first wave of internet business placed the hurdle for marketing very low. Building traffic and gathering eyeballs was all that mattered and it seemed that selling this portfolio of traffic was more the goal than creating a business model on fundamental business principles.

Web 2.0 is different. The online stores that are working operate like a traditional retailer in the sense that they have to provide product choice, quality, and good service as a minimum to succeed. The business models adopted are generally sound and the achilles heel for those single channel, pure online, retailers remains price. Price as in LOW price.

Hammer Nutrition is one pure online retailer that caught my eye. The company caters to a well defined passionate customer group, endurance athletes. But they are not allowed the privilege to compete in a vacuum as many of their supplement and fueling products (electrolyte drinks, energy bars, joint formulas) are sold by larger, heavily branded, and more widely marketed companies from GNC to Power Bar (owned by Nestle) and Clif Bar (distributed through major grocery chains, Costco, and specialty shops).

How does Hammer Nutrition compete? It stays true to the values of its founder, Brian Frank. Brian grew up in California in a progressively-minded household and caught the action sport bug early on, riding bikes, skateboards, swimming, and racing BMX and motocross bikes to the point where he won Montana State Motocross Championships in the late 90’s. Frustrated by the sparsity of quality, naturally formulated products to meet the needs of endurance athletes, he founded Hammer Nutrition during the 80’s.

His mantra from those days has survived the passage of time:  Deliver naturally formulated quality products and cement customers for life with product knowledge and trust.

A little guerrilla marketing was at the core of the Hammer strategy: provide “Race Bags” at events around the country as a cost effective way to meet the core audience for Hammer products at their moment of highest interest. If you’ve participated in any organized athletic event from a local 5K walk to an Ironman, one of the “bennies” received for your entry fee is the race day bag. The bag itself carries branding on the outside and is kind of like the athlete’s version of an Easter basket – lots of product samples and surprises inside. When I spoke with Brian a few months ago, he told me that the program now distributes over 750,000 bags across 2,200 events in North America. That’s some powerful grass roots marketing – Word of Mouth advertising at its best before the term was coined.

The impressive part of the marketing strategy at Hammer Nutrition is its constant flow of educational and product information materials, part of an overall communication stream designed to build engagement and increase customer retention. A first order will usually trigger sending of the “Little Red Book” (product descriptions and usage instructions) and a “Welcome to the Family” letter signed by Brian Frank or one of his guru partners Steve Born or Dr. William Misner.

Triggered by an array of qualifying metrics, new customers receive monthly product-focused brochures, quarterly Endurance News magazines with articles highlighting athletes of all types who have competed successfully using Hammer products, and reminder post cards with previous orders outlined to facilitate easy reorder. Invitation to join the Autoship program is packed with benefits and discounts and the Referral program has a dual benefit feature where both existing and new customer earn a discount.

An open call to any athlete to use Hammer products is made via the HammerBuck$ program which challenges customers to “Turn race day into Payday”. Over $36,000 in cash and credit was awarded to 36 winners during 2009. The program is simple, race in Hammer gear, place highly in your race, and win some cash or credits for future purchase. Talk about crowdsourcing, just think about motivating gobs of your best customers who fit your ideal profile to wear your logo on race day and give it their all to stand on the podium at the end of the day!

Granted that I may have lost some of you who hate to run, or for whom the idea of an open water swim, adventure race or ultra-marathon is greeted with a wry smile while muttering “they’re nuts!”

Look past the issue of endurance sports and you will see a sophisticated, if not home grown, communication stream that delivers on the company’s brand promise while driving business goals. There are lots of good lessons for any pure online retailer to take away from a visit to the Hammer Nutrition web site.

Will MyTeamUSA  (U-S-A! U-S-A!) attract loyal Olympics fans?

Does anyone remember the launch of the Discover Card? When introduced in 1985 as “the card that pays you back”, it really felt different from Visa and MasterCard. Forget the card’s super high interest rate—I was getting cash back on every purchase!

Times change and now the cash back bonus doesn’t feel quite so special, but an outfit called My Fan Rewards is putting a fresh spin on it. They’ve teamed with the U.S. Olympic Committee to launch a program called MyTeamUSA Rewards.

The program works like this: When you shop through MyTeamUSARewards.com, using any credit card, you not only earn cash back from the retailer—a like amount is given to support U.S. Olympic athletes. For example, shop at the Nike Store and you’ll earn 4% cash back, while 4% of your purchase is matched and handed over to the USA Olympic team.

The program is free and feels like a good way to tap into the emotions surrounding the country’s Olympics love fest. But the real test is coming: keeping fans interested in the MyTeamUSA program now that the Olympic torch at the Vancouver Winter games has been put out.

My take: a solid, targeted emotion-based communications program could do the trick. The key will be in getting program participants juiced not about the Olympics that just passed, but for the next Olympic games to come. (2012 in London, in case you were wondering.)

On a side note, My Fan Rewards is rumored to be expanding into the pro sports market next. It’s not a bad idea, as professional sports teams showing fans a little return love could help ease the grumbling about ever-increasing ticket prices.  (Of course, let’s hope the cash rebates will be a one-way affair, and go straight into the pocket of the consumer!)

Tom Rapsas is a 20 year direct and loyalty marketing veteran and heads up Creative Services at Hanifin Loyalty. He can be reached on Twitter @tomrapsas

My Dad taught me the value of money. Cash is King and all that.

A dollar is a dollar, that can’t be denied. And, those dollars are increasingly hard to come by with the demands of business pressing harder on most over the past two years.

With my mind on cash and flipping through the latest issue of Costco Connection at home the other day, I couldn’t miss the half page announcement that at Costco, February is REWARD TIME. For holders of the  True Earnings Card® from American Express and Costco, shoppers can earn 1% on all Costco purchases and up to 3% back on other purchases including travel, dining out, and gasoline purchased at the Costco store. Business cardholders enjoy a similar offer, topping out at 4% for gas purchases.

Rewards accumulate all year long and, just as folks are thinking of flowers in the spring, the annual disbursement of rewards checks is made each February. The certificates are able to be used for in-store purchases only and expire in about 6 months on August 31.

Costco, in their partnership with American Express, reinforces that a dollar is in fact a dollar. But does it have to be so?

The Costco cash back rewards model has weakness on two levels. First, with consumers interested ever more in redeeming early and often, are they willing to wait one entire year to enjoy their rewards? Actually, the real question is not if they are willing, but if they will consistently alter shopping behavior over this extended period of time. Second, the once a year model is less likely to encourage an extra shopping trip to Costco as it becomes a way to make a regular trip “cheaper” when the coupon is redeemed.

Can Costco do better? You only have to look at far as Target and Tescos to find an answer.

Tescos is the undisputed king of grocery loyalty and may be the undisputed heavyweight champ of leveraging the customer data it collects to drive value for customers and results for the business. Tescos Clubcard is based on cash back rewards, but manages to  turns a dollar (Pound Sterling) into two as it offers Tesco Clubcard holders double the value of their vouchers when applied to purchase of a range of popular items in-stores and online. They even have a nifty rewards calculator to help customers build excitement.

Even before the latest announcement, customers could spend their Clubcard vouchers at face value in-store and online or increase the value up to four times by selecting rewards offered by Tesco Clubcard partners including restaurants and entertainment venues.

Target announced they are testing new offer combinations with their private label and cobranded credit cards. Instead of the usual “10% off today’s purchase” incentive to take a store charge card, Target is testing everyday rebates between 3-5%  on all store purchases made with the card.  To me this means they are testing incentives to drive repeat purchase and retention rather than simply acquisition.

While it is not different in structure from the Costco program and there is no leverage on specific items purchased like Tescos offers its members, the test does create an incentive to increase visit frequency and the rebate is higher than the industry norm.

Focus group members may have spoken that “cash back is king” for years, but a closer look reveals that the pure model doesn’t breed stickiness to the brand.

Target is experimenting with changes and Tesco has already shared a partial answer key to the test faced by all retailers – how to keep customers coming back for more.

A small firestorm over the efficacy of Loyalty Marketing programs broke out over this past weekend thanks in large part to an article written by Joanne Kaufman for the Wall Street Journal.

Ms. Kaufman recounts a telling tale of how her own household purchase behavior adapted to take advantage of rewards programs from Duane Reade to Starbucks to the local pizzeria and shoe store, only to be thoroughly disillusioned by an in-store experience at Duane Reade.

It seems that her son was shopping at the store and had his rewards card rejected with a less than satisfactory explanation from the cashier that Duane Reade was in a “blackout” period prior to launching a new and improved customer loyalty program. According to Ms. Kaufman, worse than the blackout message was the discovery that points previously earned in Duane Reade’s Dollar Rewards™ program would not be honored in the new program.

There are several lessons to be learned here and a few questions raised as well.

First, some background: On Jan. 15, Duane Reade announced it was launching FlexRewards™, a replacement program to Dollar Rewards™, the Company’s previous customer rewards program. The new program was to be in effect on Jan. 16. On Feb. 17, Walgreens announced that it was acquiring Duane Reade, the largest drug store chain in New York City.

The Questions:

1. What influenced the timing of Duane Reade’s launch of a new program when they were (presumably) deep into the final negotiations of the sale?
2. Regardless of the answer to #1, how could someone within Duane Reade, a company recently complimented for its customer facing marketing efforts, have been lulled into allowing the “your old points don’t count” feature to come into play? Have a look at the message on the graphic here “The old card works (just not in our store). I clicked everywhere I could on the program website and could not find an explanation for this disconcerting message.
3. Could Duane Reade have found a better way to communicate the program transition to its members? Why, oh why, does business place the burden of communications on cashiers at the point of sale? It’s an unfair burden on the position with highest turnover in the store and one that does not serve the corporation well.
4. Walgreens has a lightly advertised rewards program “Walgreens Rewards“. Will they do away with this program or will they launch something that allows consumers to earn and accumulate points at any Walgreens-owned property?

Some answers are easier to guess at than others.

The announcement by Walgreens regarding Duane Reade mentioned specifically that it would allow the chain to continue to operate under its own name. That said, launching an upgraded program might have seemed business as usual to Duane Reade marketers. Needless to say, there needs to be some damage control from Duane Reade as an operational faux pas of this nature intensifies consumer ire towards consumer rewards programs.

The most interesting question to speculate about has to do with the future of the Walgreens customer strategy.

The current program “Walgreens Rewards” offers rewards on specified products purchased using a Walgreens Card®. The value proposition does not seem clear or particularly strong and there are many product restrictions which limit earning power for members. One strong program feature is the ability to pass the Walgreens Card at the point-of-sale and instantly be credited for rewards.

As far the new Duane Reade program itself, it seems that the earning power from its predecessor has been reduced. The current offer is for customers to spend $250 to receive a $5 cash back offer. This equates to a 2% earn rate, less than the 5% offered by the previous plan according to the WSJ.

FlexRewards™ offers members lower prices on many items and rewards that can be spent on the spot at point-of-sale or can be saved up for larger rewards. Clumsy paper coupons which could be easily lost by consumers have been traded in for electronic points tracking online. Points issued never expire provided a purchase is made every 26 weeks, a generous definition of an “active” customer in the pharmacy space to be sure.

According to Joe Jackman, Acting Chief Marketing Officer, Duane Reade “customers had spoken and wanted more easily attainable rewards”, adding “half of customers in our old program didn’t even redeem their reward coupons because there were too many restrictions”.

It certainly seems that the strategy cooked up by Duane Reade is headed in the right direction and had increased customer engagement as a key objective. The company even introduced a new “Super Saver” tier to reward higher spending customers at a faster pace and with more flexible rewards.

Contrast the two programs at Walgreens and Duane Reade and you should not be surprised to see either the Duane Reade program extended (in structure if not by name) to include Walgreens stores or some new program from Walgreens that would at least improve upon the current offer. The more inclusive, the better as customers will respond well to a program that allows points accumulation at both Duane Reade and Walgreens stores.

Lessons:

1. Execution nearly trumps strategy these days.  My old boss, Pat LaPointe, coined the phrase “Technology enables, but imagination wins”. Based on what clients are telling me today, I have modified the mantra this way: “Technology enables, imagination wins, but flawless execution will save your job!”.

2. Expectations for Customer Communication are higher than ever. Consumers have access to more information than ever and expect clear, transparent messaging. Anything less sets you up for what Ms. Kaufman called “Loyalty Betrayal”.

3. Staff training and incentives will trigger better program results. Turnover at the point-of-sale is difficult to control but an effort can be made to provide front line personnel with sales aids, inexpensive “take-me’s” and similar POS material to make the job easier for overburdened staff. Offering incentives for those that learn and deliver the message would help also.

Just a few months ago, on these very Loyalty Truth pages, I gave kudos to Caesars Atlantic City and its Total Rewards loyalty program.

During some trying times for the economy in general, and Atlantic City in particular, Caesars AC was making some smart moves to get its loyalty program members back to the casino.

Last week, Caesars AC got my attention again. But not in a good way. You see, they ran a rather bizarre full-page ad in the Sunday NYTimes magazine.

Let’s start with the image in the ad: a well-dressed 30-something guy has a pretty woman to his right. She has one hand on his shoulder and another wrapped tightly around his arm. It looks like they’re at a show. Okay so far, except our guy seems more interested in another woman to his left. He has his lips to her ear and her extended arm appears to be resting on his thigh.

Under the headline “The Life You Were Meant to Live“, the stilted copy reads:

Who is that in Section A, Row 1, Seat 5, having the time of your life? That’s Todd. Flanked by your fiery vixens. Paying no attention to your favorite band on stage. But give credit where it’s due. Todd is an escape artist. And when it’s time for a getaway, he get it’s right.

What!?!

Putting aside the confusing use of the possessive “your”, who are the fiery vixens with Todd? Am I supposed to pretend I’m Todd…on some kind of a three-way tryst? Is this what they mean by “he gets it right?” More importantly, did Caesars’ market research show the ménage a trois market to be a growing demographic?

Personally, I can only think of one word for the ad – Stupid.

Instead of creating a scenario that the largely upscale readership of the NYTimes magazine might be able to imagine themselves in, they’ve come up with a fictional character in a contrived situation that’s a non-starter for anyone not in the “swinger” category.

It of course begs the question, what were they thinking? The only thing I can come up with is that Caesars AC is trying to out Vegas-Vegas.

Sorry Caesars, as much as I like you and your loyalty program, you’re no Vegas. And there are better ways to spend your precious marketing dollars.

Tom Rapsas is a 20 year direct and loyalty marketing veteran and heads up Creative Services at Hanifin Loyalty.  He can be reached on Twitter @tomrapsas

Important or Ignored?

Actually, I’m just scratching the surface, but pose a few questions to improve frequent flyer programs and make airline travel a bit more bearable for the masses.

What if the airlines …… ?

1. … would allow frequent flyers to use miles to pay for a bag check charge or, better yet, waive them for higher tier members? (They could burn mileage balances and make my flight experience a bit more pleasant)
2. …  made their airport lounges available for ad-hoc visits, not for a ridiculous daily fee or mileage exchange, but with variable exchange rates on traffic? (They could burn more miles while making the best use of a perishable resource)
3. …  permitted higher tier frequent flyers to make an itinerary change within a specified time (48 hours?) without incurring a $150 charge plus difference in airfares? (Their “best” customers would actually feel appreciated)
4. … sent an occasional email with deals on flights between city pairs that I am actually interested in instead of sending a list of 30 where only two include my home departure airport? (They would be taking advantage of easily accessible data from my flight history)
5. … sent me correspondence addressed to my “real” name instead of “Dear Mr. Hanifin”? (I’ve participated in plenty of surveys and they don’t know this yet? All they have to do is ask)
6. … stopped sending me irrelevant coupons for golf and ski vacations when I don’t play golf and haven’t skied in years? (They would build relationship with me with better prospect of creating loyalty while suppressing a mercenary mentality about frequent flyer programs)
7. … start using their data to build predictive models that encouraged more business? (The flow of business dictates my choice of airline more than any other factor. Can’t they remember me as the Platinum I was two years ago and offer incentives as a “welcome back” when they notice I’ve flown their airline 20 times in 6 months?)
8. … were gracious enough to send their frequent flyers an email explaining their decisions to change program rules, charge for bags, eliminate pillows and blankets, etc? (They would be fostering relationships rather than treating all customers the same)
9. … realized that the friendly-voiced announcements inviting passengers to take a cobrand credit card application or join their frequent flyer program are negated by the flight attendants who insist that the aisle is theirs and rip your kneecaps off if you dare stray past the invisible line? (They would be acknowledging that customer loyalty is the quotient of a great customer experience equation)
10. … admitted that travel between the US & Canada is not “domestic”? (It is only so as defined in baggage charge policies. Travelers would appreciate an explanation, the more transparent, the better)
11. … found a way to be profitable without using their customers – even the best ones – as their path to profitability? (Flyers are weary of the continual excuses about saving costs while they shoulder more charges and endure diminished in-flight experience)

Don’t mistake these questions as whiny complaints from a shattered frequent flyer.

The airlines could answer each question, except the last one, without much fuss and discover new ways to engage their best customers, burn mileage liability, and improve the flight experience.

What do you think? Does this fly?

Trendy business buzzwords aren’t any fun until you form an opinion and seek feedback to get to the substance of the issue.

Customer Engagement is one of those terms that is being mentioned more frequently than Kim Kardashian was during the Super Bowl. It’s the 2010 version of “what’s hot, what’s new, what’s next?”

The question is, should Customer Engagement be treated as a new marketing sub-set, on par with Loyalty and Word of Mouth Marketing, or is it a concept that’s been around for quite some time and just happens to be a point of pain in the Relationship Value Chain (RVP) for marketers today?

Relationship Value Chain? That’s the term that my good friend and former Colloquy colleague, Kelly Hlavinka, coined almost 10 years ago. The experience of many at the once proud Frequency Marketing was that customer value increased across a spectrum of customer interaction. Link the points of interaction and you had a value chain that loyalty marketers could use to influence communication plans and allocate marketing budget dollars to encourage specific behaviors.

The RVP is similar to the “acquisition – activation – usage – retention” lifecycle marketing that credit card issuers have been using for years, but takes objectives down to a more granular level.

One example of a flow that constitutes a RVP:

• Awareness
• Response to Invitation
• Program Enrollment
• First purchase
• Multiple purchases in response to offers
• Redemption for Reward
• Response to Survey
• Response to Future Bonus
• Multiple Redemptions

No one has a lock on defining the steps in the chain as they should be customized to the business situation under review. Going to back to Customer Engagement, just where does it live in the value chain used as an example here?

Let’s look at a few steps in the RVP and see where, if accused of being “Engaged”, there would be enough evidence to gain a conviction!

Program Enrollment – Doesn’t everyone enroll in programs without much care for future interactions? I enroll in just about every program where I know the odds are that I’ll be back (by choice or force) and the offer looks worthy enough to give it a whirl. The only caveat is that I won’t sign up if the data collection hurdle is too high at the outset.

First Purchase – You’ve got my attention, but what makes you think I’m “Engaged”? I may be a cherry-picking consumer or have just satisfied a one-time need for your product or service. Not enough evidence to convict me as engaged at this point in time.

First Redemption – I’ve stayed around long enough to make multiple purchases over time – how else would I have qualified to redeem? But did you catch me in a cycle of life that won’t soon be repeated, or can you count on me to do it again? Engagement? We’re getting closer, some say “yes”.

Survey Response – I’ve transacted, collected, redeemed, and now I am willing to actually have a conversation. You’ve got my attention, but I am skeptical of what you will do with the information and if I will hear from you again. Does this sound akin to dating? Conversation is certainly an accelerator to engagement, but does not constitute the end goal itself.

Multiple Redemptions – Once I’ve completed the purchase/collection/redemption cycle more than once, I think you can count me as “Engaged”. The focus shifts now to retaining my interest, expanding the conversation, and developing more business as a result.

My take on Customer Engagement is that it describes an end objective that marketers hope to achieve through smart execution of a well designed data-driven Customer Strategy. If you try to define engagement as one of the individual steps, take Enrollment as an example, then what you are truly talking about is more tactical ala “how to create awareness for a program and convert interest to enrollment”.

It’s a step along the way, not engagement itself.

The Loyalty Truth on Customer Engagement is that it has been around for quite a while. The reason the topic has been deserving of the spotlight lately is that customers are increasing difficult to engage, not to mention retain.

What’s your take?

In the past week, business has taken me to Vancouver, BC and San Jose, Costa Rica with a pit stop in South Florida for a day or so at home. None of that was a big deal until my colleague Mike Atkin noted at dinner that we’ve been hitting these spots in conjunction with some pretty big events.

We arrived in Vancouver exactly one week before the start of the 2010 Winter Olympics, landed in South Florida the day before Super Bowl XLIV, and arrived in San Jose on election day as the country was electing the first female President in its history. I’m not sure how I can top that although I have noticed that I arrive back in SoFla just in time to make Valentine’s day special for my wife. Better pull that one off!

I’ve also been using Foursquare for a while and, like a lot of social media waves, I engaged knowing that it would cost me a little time without being sure of a return. I’ve been having some fun with it around my local haunts and have been thinking about how something like Foursquare could intersect with location based offers as part of a loyalty marketing program. My first eye-opener was the blending of Foursquare and Twitter into the Tasti D-Lite rewards program which I talked about in a recent post.

This last jaunt across the continent and back connected a few dots. Checking in to my hotel in Vancouver, I saw a pop-up on my iPhone that said “Special Nearby”. Clicking through, I read “Welcome to the Mill Marine Bistro & Bar. Mayor receives a free beer. Show your server to redeem.”

I wasn’t the Mayor and didn’t get a free beer, but Mike and I did visit the nearby pub to have a quick dinner. The point made was that promotions relevant to someone’s stay could be delivered via this little iPhone application. Better yet, these offers are made to people who have opted-in to receive the offer. in this case, the Mayor might game the offer to get lots of free beer and over time I hope the restaurant will become more creative in the offers made, possibly targeting guests at the hotel next door.

Landing in FLL a day or so later, I switched on the phone and “checked in” to Fort Lauderdale – Hollywood International Airport and received a tip from a local attorney, Leland Garvin. On the verge of the Super Bowl weekend in SoFla, what better message could an attorney send than (paraphrased) “Have fun while in town, but if anything happens from arrest to a speeding ticket, call Leland Garvin, attorney at law.” A phone number was included and if I was a “Who Dat” ready to tear it up for the Super weekend, I would have written it down and tucked it somewhere safe.

With lots of minds grinding on how to incorporate mobile marketing, location based promotions, and social media into loyalty program communication streams, these two “pops” from Foursquare got my attention and sparked some good ideas.

Consider the possibilities. What’s it make you think about?