I am often asked where to go to learn more about Loyalty Marketing. Until Mark Johnson and his crew launched Loyalty 360, it was difficult to provide a useful answer.  There are occasional tracks presented at the annual DMA event and Colloquy continues to deliver its Loyalty Marketing Workshop in conjunction with the DMA, but for up-to-date industry specific information, the choices narrowed.

One new entrant that should be worth attending is the Cards & Payments Loyalty Conference slated for 2 December in New York.

If you’re looking for airline specific information on Loyalty Marketing, I’d suggest that you become involved with Airline Information, the brainchild of Christopher Staab and Roger Williams. Both of these gentleman have deep roots in the airline business and, through their conferences, are not afraid to tackle the tougher issues of ancillary revenues, frequent flyer programs, and cobrand credit & debit card partnerships.

One of the bigger topics in discussion these days is how the need for development of ancillary revenues can conflict with cost savings. Considering that a mainstay of frequent flyer programs has been the cobranded credit card, it is controversial that the airlines eagerly accept $billions earned from co-branded credit cards while mounting protest to the amount they pay in merchant fees. Edgar Dunn & Company and ARC estimate that the airline industry faces annual cost of U$1.5 billion for the privilege of accepting credit card payments or approximately U$12 per ticket, so the magnitude of the issue is clear.

You can take part in the debate by attending one or both of AI’s conferences in the coming weeks. First up is the FFP-ARAC “Mega-Event” to be held 22-23 October in Los Angeles.  This conference has a decidedly strong marketing bias while the Airline & Travel Payments Summit, planned for 2-3 December in Miami will address payment and revenue issues as well as related marketing topics.

If you can’t wait for either conference and want to stay on top of industry issues, you can also visit Roger Williams’ Load Factor blog.

I recently attended an AI Networking Cocktail in Miami and hosted Evan Liu of Spirit Airlines as he talked about the role of Free Spirit for the carrier and future plans for development. These events are well organized and attended and I encourage you to give AI some mind share if you are interested in the airline industry.

AI has been specifically looking into the development of cobranded airline debit cards as a compromise solution between ancillary revenue and cost savings.  Delta Air Lines recently introduced a SkyMiles co-brand debit card in association with SunTrust Bank, and considering the economics of the debit card, you might ask why and how can issuers/airlines support the value proposition of giving away frequent flyer miles on debit card purchases.

AI was looking for the same answers and recently published results of 31 airlines surveyed in their latest “45 Second Survey on Cobrand Loyalty Debit Cards”. They found that only 37.9% of airlines had previously looked at the benefits of issuing a cobrand debit card while over 55% consider debit cards as a “steady or significant” source of growth for ticket purchase. Today only 5% of airlines surveyed offer a cobranded debit card, though 48% responded that they were “very interested” in pursuing co-branded debit cards.

To navigate safely through the storms of commercial aviation and take part in the rebirth of frequent flyer programs, stay in touch with AI.

Loyalty 360 held its Loyalty, Reward and Incentive Expo 2009 at the Westin Diplomat in Hollywood, Florida between May 31 – June 2.  Over 500 attended the second edition of this conference and the report which follows was published at www.TheWiseMarketer.com on June 16, 2009 as filed by Bill Hanifin, North American Contributing Editor.

If you are interested in the latest news on Loyalty and Relationship marketing, I strongly encourage you to Register here for a free subscription to the Wise Marketer

Among weekly updates and special reports, the WiseMarketer also offers the Loyalty Guide III, the most comprehensive resource covering the industry today.

New Channels Aid Loyal Customer Dialogue

The recent Loyalty Expo 2009 conference in Florida saw nearly 400 delegates (I was corrected by the organizer later that the number was over 500) gather to share ideas and innovations, with the overall informal theme being the discussion of new channels of communication that have recently become available to loyalty programme sponsors, and ways of fostering more meaningful dialogue with programme members, according to our US contributing editor Bill Hanifin.

Mobile phone applications and social media were hot topics and the conference sponsor, Loyalty360, put both into action itself during the event. Partnering with Vayulogic and Hanifin Loyalty, the organisers solicited feedback for conference sessions with SMS messaging and shared a live Twitter feed to foster networking and encourage real time discussion of presentations.

The three day event began with a series of workshops, most compelling of which was arguable “The Gamification of Loyalty“, presented by Barry Kirk and Tim Crank of Maritz Loyalty Marketing. The session demonstrated how game playing and competitive scenarios can be introduced in loyalty schemes to drive higher engagement, participation, and activity levels.

The general session keynote presentation featured Timothy Keiningham of IPSOS Loyalty, speaking about the realities and myths surrounding customer loyalty (largely based on Keiningham’s recently published book, Why Loyalty Matters).  Deborah Eastman of Satmetrix followed with an overview of the Net Promoter Score (NPS), and expanded on the basic concept to describe a methodology that could be applied as a planning mechanism for loyalty initiatives.

The conference then featured a range of subjects including sixteen panels on topics ranging from mobile marketing, B2B loyalty strategy, and global approaches to loyalty, grocery specific learnings, and how to translate the voice of the customer into higher programme engagement.

Among the highlights, Matt Howland of Loyalty Lab and Greg Dolan of Campbell’s Soup presented a compelling case for extending the relationship between CPGs and consumers beyond traditional channels, while Phil Rubin of rDialogue shared his thoughts on measuring loyalty programme performance.

Jonathan Silver of Affinity Solutions and Nick Medina of ExxonMobil provided insights into on how merchant funded rewards can be made more effective through strong retailer and bank relationships, while Bjorn Larsen of Edhance, Ragy Thomas of Aiti Solutions, and Atle Skalleberg of StudentUniverse joined forces for a lively discussion on how to engage with ‘millennials’.

The second day of the conference featured some 15 breakout sessions followed by roundtable discussions that Hanfin described as “the loyalty marketing version of speed dating“. Among the highlights, Mike Blyth of Groupe Aeroplan presented an insightful look at how UK grocer Sainsbury’s has connected loyalty programme data to SKU-level product information to drive more relevant promotions.

Another key presentation with implications for the future of loyalty was made by Don Hughes, CIO for Kobie Marketing.  Speaking from research recently completed by the company, Hughes talked about leveraging today’s mobile technologies to move products, reduce inventory, and increase communication.

Noting that there will be over 140 million smart phones in use by 2013 and that satisfaction ratings for smart phones are more than double that of conventional handsets, Hughes emphasized the importance of incorporating this medium into loyalty programme communications. Kobie’s study found that 94% of customers will complete a loyalty profile application through the mobile channel, compared to only 47% on the web.

This article is copyright 2009 TheWiseMarketer.com

Editor’s note: I was fortunate to moderate a panel at  Loyalty Expo 2009 this week titled Building Engagement with Millennials. The panelists were rich in expertise engaging and building brand with Generation Y as well as using email and social media as tools for communications. Bjorn Larsen Founder & CEO Edhance,  Atle Skalleberg VP Marketing Student Universe, and Ragy Thomas Co-Founder & CEO Aiti Solutions took part.

One of my fascinations with extending the Loyalty Marketing model beyond its traditional borders is in working through resistance and dissenting opinions. I partnered with Loyalty 360 to use Twitter during the conference with mixed results and learned that not everyone shares the same view on what it will take to build loyalty among Millennials or if it can be done at all.  Contributing Author Brian Kryzanski offers his view on GenY with this post “Generation crY”

Click here to see the connection between Generation crY and “You’ll Get Nothing and Like It”

Let the debate begin!

Generation crY

I want everything now, for free. I want to be treated with respect and don’t try to outsmart me, because you can’t. I want to come right out of college into the CEO chair because I know everything and always win. Simply put, I do not fail! Welcome to Generation crY- a generation of spoiled brats who were brought up in Never Never Land and told by their parents that they are no less than perfect. A trophy for everyone, no losers, no wrong doing, completely invincible, and everybody plays! What have the Boomers and X-generation created?

When I was growing up, and it wasn’t long ago, I was taught that hard work and determination is rewarded. I didn’t get trophies for simply showing up, and didn’t make the team if I wasn’t great or at very least showed 100% passion and effort. I was taught it was ok to fail, to lose, and it was just one step closer towards winning. My high school baseball coach use to say “second place is no place”, and if you were not first or the best, you were told you stink and no one sugar-coated it. You practiced harder, played tougher, studied more, and still were not guaranteed success. If you did bear fruit from your efforts, you then truly know what it is to be a winner, or successful, and appreciate the process.

Athletes are great examples of exactly what I am talking about. Pitchers pitched 9 innings and threw over 120 pitches “back in the day”. People played when they had bruises and bumps, and there were no such things as Social Anxiety Disorders. Why do we have that? Simple, when they get to the “bigs” and are not stellar, they cannot comprehend it. Rookie quarterbacks demanding multi-million dollar contracts before taking a snap in the NFL, or crying it’s not their team of choice – our fault!

We have made Never Never Land a reality! A place where our upcoming consumers are never fooled! The days of hard work and sweat equity are over, and we have created an environment that we are not only responsible for, but challenged as Loyalty or any other genre of marketers to succeed in.

We are told that we are too old and don’t understand the space they play in. Ah, but are fools being fooled? After all, we created Never Land and Tinker Bell has been hard at work creating a new Never Land called My Space, Facebook, and Twitter!

Are the Boomers and GenX marketers really worried, or are they simply still playing the game that they started years ago? We will continue to tell them how good they are as long as they continue to drink the cool aid. Maybe when the responsibilities of GenY increase they will realize that Facebook cannot warm the baby bottles and they actually have to get up and put it in the microwave! Don’t underestimate the X-Factor. We have built the technology and societies you play in, and hold the pixie dust that has been sprinkled among your communities. If all it takes is pizza and beer to hear how good our tactics are working, then we get off cheap.

The hazards of business travel aside, it’s good to see and be seen.  You can find Bill Hanifin at one of several events in the next few weeks. If you are attending either Card Forum or the Loyalty Expo, I hope you will say hello. Here’s where I can be found in the near future:

April 20 – 22, 2009
21st Annual Card Forum and Expo
Marco Island Marriott Beach Resort
Marco Island, FL

May 14th 2:30pm ET
Creating Loyalty Among Generation Y
Webinar sponsored by OnSite Conferences

May 31 – June 2, 2009
2009 Loyalty, Incentive and Reward Expo
Westin Diplomat
Hollywood, Florida