jerryking + loyalty_management   38

Air Canada CEO Calin Rovinescu’s hardball tactics benefit everyone but Aimia - The Globe and Mail
ANDREW WILLIS
PUBLISHED 3 DAYS AGO

Mr. Rovinescu, whose career includes stints as a lawyer and investment banker along with an investor-friendly flight at the helm of Air Canada, can take credit for launching Aimia as a public company back in 2005. Air Canada’s CEO also pulled the rug out from under Aimia, setting the stage for this takeover, by announcing in May, 2017, that the airline planned to end its relationship and start its own loyalty program when its contract expires in 2020. That announcement knocked back Aimia’s stock price by more than 50 per cent, and shares have never recovered.

Air Canada’s decision to spin out Aimia, along with the airline’s maintenance business and regional carrier, amounted to inspired financial engineering. The offerings brought in the cash needed to spruce up the fleet with fuel-efficient jets and pay down debt. It’s fair to say these deals set the stage for Air Canada’s stunning stock-price performance on Mr. Rovinescu’s watch.

The decision to buy back Aimia is also strategically and financially sound. Loyalty programs and the data they generate are valuable assets for airlines and credit-card companies. Along with Air Canada, this takeover is backed by Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and Visa Canada Corp. The consortium leaves long-time Aeroplan partner American Express on the outside looking in........Air Canada sold high on Aimia, then knocked the stuffing out of the company by ending its partnership. Now, the airline is buying low. Long-time Aimia shareholders will emerge from this journey badly bruised. But Mr. Rovinescu’s tactics are good business.

Students of corporate deal-making may recall how TD Bank, a member of the Aimia takeover consortium, played capital markets to its advantage. In 1999, the bank raised $1.5-billion by spinning off a stake in its discount brokerage division, TD Waterhouse. The move gave TD Bank the capital it needed to buy Canada Trust the following year, a transformative deal.

By 2001, the dot-com bubble had burst, taking with it the premium valuation on discount brokerages. The parent bank bought back TD Waterhouse for a fraction of the price it had sold shares for, just two years earlier. TD Waterhouse shareholders complained, but at the end of the day, they sold. TD Bank’s bosses came out of the experience with a stronger company and burnished reputations.
Aeroplan  Aimia  Air_Canada  Andrew_Willis  Bay_Street  Calin_Rovinescu  CEOs  credit_cards  deal-making  dealmakers  loyalty_management  offensive_tactics  hardball  financial_engineering  transformational 
july 2018 by jerryking
Verizon Wants to Build an Advertising Juggernaut. It Needs Your Data First - WSJ
By Ryan Knutson
Sept. 5, 2017

Verizon still wants customers to opt-in to its most comprehensive advertising program, called Verizon Selects. Data collected under the program is shared with Oath, the digital-media unit Verizon created when it bought AOL and Yahoo.

Since access to data from customers could make it easier to tailor ads to their liking, Verizon hopes the information will help it gain advertising revenue to offset sluggish growth in its cellular business. .....Verizon makes it clear during the sign-up process what data consumers are giving up: Information about their demographics and interests, what websites they visit, what apps and features they use, and their location.

The disclaimer quickly drew criticism in the tech world. Adam Levin, a consumer advocate and founder of data-security firm CyberScout, warned in a column on HuffPost that the “hidden cost of Verizon’s ’free’ rewards program is your data.”
Verizon  privacy  loyalty_management  digital_strategies  location_based_services  opt-in  Verizon_Up  subscriptions  advertising  personal_data  Verizon_Selects 
september 2017 by jerryking
Whole Foods changes unlikely to spark Canadian grocery price wars
August 29th | The Globe and Mail | by DAVID FRIEND.

The country's biggest grocers are unlikely to play along with deep cuts by Whole Foods' new owner Amazon in the aisles of its 13 locations across Canada. That's partly because the imminent threat of the high-end chain wouldn't justify the financial hit of reacting with deep discounts, suggested Brynn Winegard, a marketing expert at Winegard and Company.

"Places like Loblaws, Sobeys and Longo's won't necessarily be able to afford that," she said.

"But what you will be looking at is a huge market play towards loyalty."

Winegard expects established chains to lean on their reputations – and points-redemption programs – in hopes of keeping customers from straying to competitors in the short term.

Expect better deals on taking home three bottles of spaghetti sauce instead of two, for example, and more appealing bonus point offers designed to get customers back into stores. Both are generally more affordable, and effective, strategies than deep cuts to a wide assortment of products.

Price wars have a long history of offering Canadian grocers little upside, especially if their profit margins are cut to the bone.......Canadian grocers are misdirecting their attention to storefronts, rather than establishing infrastructure that could go head-to-head in the digital world, Amazon's forte.

"Amazon certainly has the capacity, the capability and the website support to do this – the other stores, like Loblaw and Sobeys, aren't really there yet."
supermarkets  grocery  Loblaws  Sobeys  Longo's  Amazon  Whole_Foods  Canadian  price_wars  loyalty_management  oligopolies 
august 2017 by jerryking
A Tale of Two Metrics
August 7, 2017 | | RetailNext | Ray Hartjen, Director, Content Marketing & Public Relations.

Traffic can’t alone measure the effectiveness of demand creation efforts, but some well-placed math can show retailers strong correlations over a myriad of relevant variables. More over, as my colleague Shelley E. Kohan pointed out in her post earlier this summer, “Expanding the Scope of Metrics,” Traffic is foundational for meaningful metrics like Conversion and Sales Yield (Sales per Shopper), key measurements that help managers make daily decisions on the floor from tailoring merchandising displays to allocating staffing and refining associate training.
With metrics, it’s important to remember there’re different strokes for different folks, with different measurements critical for different functions, much like financial accounting and managerial accounting serve different masters. Today’s “big data” age allows retailers to inexpensively collect, synthesize, analyze and report almost unbelievable amounts of data from an equally almost unbelievable number of data streams. Paramount is to get the right information in front of the right people at the right time.
Sometimes, the right data is Sales per Square Foot, and it certainly makes for a nice headline. But, not to be outshined, other instances call for Traffic. As Chitra Balasubramanian, RetailNext’s Head of Business Analytics, points out in the same Sourcing Journal Online article, “Traffic equals opportunity. Retailers should take advantage of store visits with loyalty programs, heightened customer service, and a great in-store experience to create a long-lasting relationship with that customer to ensure repeat visits.”
metrics  sales  foot_traffic  retailers  inexpensive  massive_data_sets  data  creating_demand  correlations  experiential_marketing  in-store  mathematics  loyalty_management  the_right_people  sales_per_square_foot 
august 2017 by jerryking
Three Hard Lessons the Internet Is Teaching Traditional Stores
April 23, 2017 | WSJ | By Christopher Mims.
Legacy retailers have to put their mountains of purchasing data to work to create the kind of personalization and automation shoppers are getting online
(1) Data Is King
When I asked Target, Walgreens and grocery chain Giant Food about loyalty programs and the fate of customers’ purchasing data—which is the in-store equivalent of your web browsing history—they all declined to comment. ...Data has been a vital part of Amazon’s retail revolution, just as it was with Netflix ’s media revolution and Google and Facebook ’s advertising revolution. For brick-and-mortar retailers, purchasing data doesn’t just help them compete with online adversaries; it has also become an alternate revenue source when profit margins are razor-thin. ....Physical retailers must catch up to online retailers in collecting rich data without making it feel so intrusive. Why, exactly, does my grocery store need my phone number?

(2) Personalization + Automation = Profits
Personalization and Automation = Profits
There’s a debate in the auto industry: Can Tesla get good at making cars faster than Ford, General Motors and Toyota can get good at making self-driving electric vehicles? The same applies to retail: Can physical retailers build intimate digital relationships with their customers—and use that data to update their stores—faster than online-first retailers can learn how to lease property, handle inventory and manage retail workers? [the great game ]

Online retailers know what’s popular, and how customers who like one item tend to like certain others. So Amazon’s physical bookstores can put out fewer books with more prominently displayed covers. Bonobos doesn’t even sell clothes in its stores, which it calls “guideshops.” Instead, customers go there to try clothes on, and their selections are delivered through the company’s existing e-commerce system.

Amazon’s upcoming Go convenience stores, selling groceries and meal kits, don’t require cashiers. That’s the sort of automation that could position Amazon to reap margins—or slash prices—to a degree unprecedented for retailers in traditionally low-margin categories like food and packaged goods.

While online retailers are accustomed to updating inventory and prices by the hour, physical retailers simply don’t have the data or the systems to keep up, and tend to buy and stock on cycles as long as a year, says George Faigen, a retail consultant at Oliver Wyman. Some legacy retailers are getting around this by teaming up with online players.

Target stocks men’s shaving supplies from not one but two online upstarts, Harry’s and Bevel. Target has said that, as a result, more customers are coming in to buy razors, increasing the sales of every brand on that aisle—even good old Gillette. Retailers have long relied on manufacturers to drive customers to stores by marketing their goods and even managing in-store displays. The difference is this: In the past, new brands had to persuade store buyers to dole out precious shelf space; now the brands can prove themselves online first.

(3) Legacy Tech Won’t Cut It

Perhaps the biggest challenge for existing retailers, says Euromonitor’s Ms. Grant, is finding the money to transition to this hybrid online-offline model. While Target has announced it will spend $7 billion over the next three years to revamp its stores, investors fled the stock in February after Target reported 2017 profits might be 25% less than expected.

When Warby Parker, the online eyeglasses retailer, set out to launch stores across the U.S., the company looked for in-store sales software that could integrate with its existing e-commerce systems. It couldn’t find a system up to the task, so it built one from scratch.

These kinds of systems allow salespeople to know what customers have bought both online and off, and what they might be nudged toward on that day. “We call it the ‘point of everything’ system,” says David Gilboa, co-founder and co-chief executive.

Having this much customer knowledge available instantly is critical, but it’s precisely what existing retailers struggle with, Mr. Faigen says.

Even Amazon is experiencing brick-and-mortar difficulties. In March, The Wall Street Journal reported that the Go stores would be delayed because of kinks in the point-of-sale software system.

Andy Katz-Mayfield, co-founder and co-chief executive of Harry’s, is skeptical that traditional retailers like Wal-Mart can make the leap, even if they invest heavily in technology.

The problem, he says, is that selling online isn’t just about taking orders through a website. Companies that succeed are good at selling direct to consumers—building technology from the ground up, integrating teams skilled at navigating online marketing’s ever-shifting terrain and managing the experience through fulfillment and delivery, Mr. Katz-Mayfield says.

That e-commerce startups are so confident about their own future doesn’t mean they are right about the fate of traditional retailers, however.

A report from Merrill Lynch argues Wal-Mart is embarking on a period of 20% to 30% growth for its e-commerce business. A spokesman for the company said that in addition to acquisitions, the company is focused on growing its e-commerce business organically.

It isn’t hard to picture today’s e-commerce companies becoming brick-and-mortar retailers. It’s harder to bet on traditional retailers becoming as tech savvy as their e-competition.[the great game]
lessons_learned  bricks-and-mortar  retailers  curation  personalization  e-commerce  shopping_malls  automation  privacy  Warby_Parker  Amazon_Go  data  data_driven  think_threes  Bonobos  Amazon  legacy_tech  omnichannel  Harry’s  Bevel  loyalty_management  low-margin  legacy_players  digital_first  Tesla  Ford  GM  Toyota  automobile  electric_cars  point-of-sale  physical_world  contra-Amazon  brands  shelf_space  the_great_game  cyberphysical  cashierless  Christopher_Mims  in-store  digital_savvy 
april 2017 by jerryking
Amazon’s Next Big Move: Take Over the Mall
November 14, 2016 | Technology Review | by Nicholas Carr .

What’s Amazon doing with Amazon Books?...Wall Street analysts and tech writers have filled the void with conjecture. The stores are all about selling gadgets, goes one popular idea, with the books there just to lure customers. The stores are data-gathering machines, goes another, enabling Amazon to extend its tracking of customers into the physical world. Or maybe the company’s secret plan is to use the stores to promote its cloud computing operation, Amazon Web Services, to other retailers....The theories are intriguing, and they may contain bits of truth. But the real impetus behind the stores is probably much simpler: Amazon wants to sell more books....Not long ago, the common wisdom held that Amazon would remake the book business in its own image. Its Web store would kill off bookstores, and its Kindle would render physical books obsolete. ...
“Pure-play Web retailing is not sustainable.”Bezos underestimated the allure of bricks and paper. With his bookstore chain, he now seems to be admitting that if Amazon is to expand its share of the book market, it will need to invest in bricks as well as bits....Having come up short in its plan to supplant books and bookstores with digital alternatives, the company is taking its revenge by attacking traditional bookshops on their own turf. Unlike the mom-and-pop independents, or even the struggling Barnes & Noble chain, Amazon has the scale and the cash required to wage a war of attrition. It can sustain losses on its stores for a long time.....Amazon Books may be just the vanguard of a much broader push into brick-and-mortar retailing by the company. In October, the Wall Street Journal revealed that Amazon is planning to open a chain of convenience stores, mainly for groceries, along with drive-in depots where consumers will be able to pick up merchandise ordered online. It has also begun rolling out small “pop-up” stores to hawk its electronic devices. It already has more than two dozen such kiosks in malls around the country, and dozens more are said to be in the works.

Even after 20 years of rapid growth, e-commerce still accounts for less than 10 percent of total retail sales. And now the rise of mobile computing places new constraints on Web stores.At the same time, the smartphone, with its apps, its messaging platforms, and its constant connectivity, gives retailers more ways to communicate with and influence customers, even when they’re shopping in stores. This is why the big trend in retailing today is toward “omnichannel” strategies, which blend physical stores, Web stores, and mobile apps in a way that makes the most of the convenience of smartphones and overcomes their limitations.....Beyond its expertise in Web sales, Amazon brings distinctive strengths to an omnichannel operation. Its vast, efficient network of warehouses and distribution centers can supply outlets and process returns. It has, thanks to the largesse and patience of its investors, a reservoir of cheap capital that it can draw on to fund a building spree. And it has a much-admired brand. What Amazon lacks is experience in the touchy-feely world of traditional retailing (e.g. merchandising??). The company’s proficiency in software and data crunching is unquestioned. Its people skills are another matter..... another of the store’s goals: to promote the Prime program, which is central to Amazon’s strategy of locking in customers....I feel let down. I had convinced myself that I was going to witness something fresh and unexpected at Amazon Books. What I found was an annex to a website—a store that, despite the bricks and paper, retains the coldness of the virtual.
e-commerce  shopping_malls  Amazon  Amazon_Prime  books  sterile  soulless  Nicholas_Carr  Amazon_Books  bricks-and-mortar  Jeff_Bezos  pure-plays  bookstores  omnichannel  strengths  smartphones  mobile_applications  loyalty_management  impersonal  people_skills  Achilles’_heel  weaknesses  convenience_stores  pop-ups  kiosks  voids  merchandising  AWS  physical_world  mom-and-pop  coldness  touchy-feely  cyberphysical  emotional_connections  empathy_vacuum  Amazon_Go  cashierless  locked_in  distribution_centres 
february 2017 by jerryking
Amazon's prime strategy
30 July /31 July 2016 | | Financial Times | Leslie Hook.

"The competition is less about Amazon versus Walmart. it is Amazon versus Netflix versus Google versus Apple versus Facebook" Tien Tzuo, CEO of Zuora.
Amazon  subscriptions  user_generated  customer_loyalty  online_identity  FAANG  customer_data  customer_identity  Amazon_Prime  loyalty_management 
august 2016 by jerryking
U.S. Retailers Learn to Speak Canadian - WSJ
By RITA TRICHUR
Dec. 3, 2014

High-profile stumbles are not lost on those still planning to enter. “We’ve been paying attention to every American retailer that moved into Canada,” said Ms. White of Nordstrom, which expects an approximate loss of $35 million in 2014 due to infrastructure and pre-opening costs.

After first announcing its intentions back in 2012, Nordstrom immediately called some its best Canadian customers. Hosting about 160 of those clients in Calgary, Ottawa, Vancouver and Toronto, the retailer treated them to hors d’oeuvres while seeking their feedback for a Canadian launch. “Bring us the full Nordstrom. Don’t bring us Nordstrom lite,” was the consistent message.
crossborder  luxury  mens'_clothing  retailers  Harry_Rosen  Nordstrom  localization  Saks  loyalty_management  pay_attention 
december 2014 by jerryking
Big Data rewards come with tricky set of risks for companies - The Globe and Mail
SUSAN KRASHINSKY - MARKETING REPORTER
The Globe and Mail
Published Monday, Nov. 03 2014

It was a sign that Loblaw Cos. Ltd. was taking a specific strategy with its loyalty program: telling people who shop at the company’s stores that their purchases would be recorded and tracked, but that they would be offered something of value in return: rewards for buying the things they like best.

In an age of “Big Data,” companies are scrambling to better target their communications with customers. If done right, businesses hope that this will eliminate more of the irrelevant advertising that makes people tune out at best and irritates them at worst.

But it has also thrown the advertising industry into a potentially damaging situation. As more of our behaviour is tracked, both online and off, many consumers are becoming wary about how their information is stored and used. Combine that with repeated instances of massive breaches of data security, and the corporate world faces the threat of losing the trust of consumers altogether....One area where consumer data is particularly important is in mobile advertising, where companies send people real-time offers on their mobile phones. But consumers are cautious. In supermarkets, 66 per cent of Canadians said that offers on their phones would make them uncomfortable.

“The complexity of the context is something that, if a marketer doesn’t feel their way through that, they can misstep,”
massive_data_sets  Loblaws  Susan_Krashinsky  data_breaches  mobile  contextual  advertising  loyalty_management  Aimia  privacy  risks  location_based_services  missteps 
november 2014 by jerryking
New software allows insurers to track driving habits and personalize premiums - The Globe and Mail
OMAR EL AKKAD

The Globe and Mail

Published Monday, Aug. 19 2013,

The ability to monitor and adapt to the behaviour of individual customers, for example, was part of the rationale for last month’s announcement by Loblaw Cos. Ltd. that it will acquire Shoppers Drug Mart Corp. for $12.4-billion. Shoppers’ Optimum loyalty program will give Loblaw purchasing information on some 10 million customers.
Omar_el_Akkad  telematics  insurance  personalization  massive_data_sets  pattern_recognition  data_mining  sensors  meat_space  SAP  Shoppers  loyalty_management  Loblaws 
january 2014 by jerryking
Pulling More Meaning from Big Data
August 2013 | Retail Leader | By Ed Avis

"A.G. Lafley [Procter & Gamble's CEO] spoke of the two moments of truth," says John Ross, president of Inmar Analytics based in Winston-Salem, N.C. "The first occurs when a consumer buys a product, and the second when they use it. Much of the data today is about orchestrating and understanding those two moments. But two additional moments of truth are emerging to bookend Lafley's. One occurs when a consumer is planning to make a purchase. The other happens following use, when the consumer talks about his or her experience with the product. All of these activities leave a 'data wake' that describes how the consumer is moving down the path to purchase." (jk: going to assume that data wake = exhaust data).

Like most consumer packaged goods companies, Procter & Gamble relies on data to determine what consumers are looking for. "Consumer insight is at the core of our business model. We approach every brand we make by asking the question, 'What do people really need and want from this product? What does this mean to their lives?' Let me be clear – this is not casual observation. We employ teams of behavioral scientists, researchers, psychologists, even anthropologists to uncover true insight based on intensive research and exploration," said Marc Pritchard, P&G's global marketing and brand building officer, speaking at the Association of National Advertisers' 2012 Annual Conference....Most firms haven't advanced beyond localized analytics and don't fully capitalize on the existing data they have at hand – such as POS data, loyalty club data and social media traffic – according to a 2012 Deloitte study for the Grocery Manufacturers Association.
massive_data_sets  Sobeys  grocery  supermarkets  Safeway  P&G  A.G._Lafley  Kroger  point-of-sale  loyalty_management  customer_insights  insights  CPG  exhaust_data  psychologists  psychology  anthropologists  anthropology  ethnography  behavioural_science  hiring-a-product-to-do-a-specific-job  data  information_sources  moments  moments_of_truth 
december 2013 by jerryking
Finding gems of insight from customer data
Dec. 16 2013 | The Globe and Mail | by AMANDA HAY.

"Albert Einstein – “If you can’t explain it to a six-year-old, you don’t understand it yourself.” It’s not enough to be able do the calculations, build the models, run the analyses, you have to be able to articulate and justify your methods simply. Clients want insights they can use to generate revenue. Understanding your client’s business is key so that you can communicate with them in meaningful terms."
customer_loyalty  customer_insights  massive_data_sets  Aimia  loyalty_management  data  analytics  Albert_Einstein  insights  Communicating_&_Connecting  storytelling 
december 2013 by jerryking
globeadvisor.com: Shoppers makes move into e-commerce
October 23, 2013 | G&M | MARINA STRAUSS.
Drugstore chain to offer Optimum points to customers of Montreal-based online fashion retailer Beyond The Rack

The country's largest drugstore chain is teaming with flash-sale fashion website Beyond the Rack to give Shoppers loyalty cardholders the chance to rack up more rewards. It's an important entry for Shoppers into the world of online shopping, as global rivals move quickly to gobble up market share.

"We see it as a first step to e-commerce," said Jim Noteboom, senior vice-president of business analytics and financial services at Shoppers, which is rolling out the new Optimum-Beyond the Rack site on Wednesday.

Shoppers has already dipped its toes in cybershopping waters, launching an e-commerce site tied to its small upscale Murale beauty chain last year. But it faces competition from powerhouse retailers Wal-Mart Canada Corp. and Amazon.com, which are expanding their online beauty and consumer product stores.

Shoppers is betting that its partnership with Montreal-based Beyond the Rack, one of the largest online retailers, will help speed up its embrace of e-commerce.
Marina_Strauss  Shoppers  retailers  e-commerce  Beyond_the_Rack  fashion  product_launches  flash_sales  loyalty_management  beauty  personal_grooming  personal_care_products  brands 
november 2013 by jerryking
Boss Talk: A New Test for Panera's Pay-What-You-Can - WSJ.com
June 4, 2013 | WSJ | By ANNIE GASPARRO.

A New Test for Panera's Pay-What-You-Can

WSJ: How has the competitive landscape changed in the fast-casual area?
Mr. Shaich: We were clearly the first people out there in the space. For at least five years, in the mid '90s, my stock was flat. I couldn't get anybody to see a place that existed between fast food and fine dining.

Basically, fast casual is us, Chipotle and Starbucks . Probably between the three of us, we represent 95% of the sales that are considered fast casual.
Panera  fast-casual  CEOs  restaurants  loyalty_management  pricing  competitive_landscape  baked_goods 
august 2013 by jerryking
Beyond loyalty: Why retailers track your every purchase - The Globe and Mail
OMAR EL AKKAD AND JOSH KERR

The Globe and Mail

Published
Friday, Jul. 19 2013,

Using variants of the same tools that banks and insurance companies use to detect patterns of account fraud, retail chains in Canada and the U.S. mine their customers’ shopping patterns looking for opportunities to personalize the shopping experience. For example, earlier this year, Shoppers began rolling out a personalized e-mail brochure to each of its loyalty card customers. The e-mails often contain offers not found in their general flyers, as well as limited-time discounts on the sorts of products that individual customers have purchased in the past.

“We’ve had the data for a while now and it has allowed us to make improvements within the store format, but now we’re taking it to the next level,” says Tammy Smitham, vice president of communications and corporate affairs at Shoppers. “We’re giving them exactly what they’re shopping for.”
retailers  customer_loyalty  Omar_el_Akkad  SAS  data_mining  massive_data_sets  store_footprints  Loblaws  Shoppers  personal_data  loyalty_management  Turnstyle 
august 2013 by jerryking
Boss Talk: A New Test for Panera's Pay-What-You-Can
June 4, 2013| WSJ |By ANNIE GASPARRO.

Amid increasing competition, Panera's co-Chief Executive Ron Shaich has stepped up spending on marketing, added new menu categories like pasta and developed a vast loyalty program.

But perhaps the chain's biggest recent innovation was opening pay-what-you-can cafes—there are no set prices, just suggested donations—in markets that are struggling economically, such as Detroit and St. Louis. Three years into the experiment, the company now is testing one pay-what-you-can item—turkey chili in a bread bowl—at for-profit St. Louis stores, in hopes the idea will expand to all of its 1,700 outlets....
...WSJ: How has the competitive landscape changed in the fast-casual area?

Mr. Shaich: We were clearly the first people out there in the space. For at least five years, in the mid '90s, my stock was flat. I couldn't get anybody to see a place that existed between fast food and fine dining.

Basically, fast casual is us, Chipotle and Starbucks SBUX +1.09% . Probably between the three of us, we represent 95% of the sales that are considered fast casual.

WSJ: Do you expect a shakeout in the industry?

Mr. Shaich: There's always a continual shakeout going on; this is a dynamic industry. The reality is, what was good enough yesterday will not be good enough tomorrow.
fast-casual  restaurants  CEOs  Panera  innovation  experimentation  Detroit  good_enough  competitive_landscape  menus  new_categories  Chipotle  Starbucks  loyalty_management  shakeouts 
june 2013 by jerryking
Danny Meyer Brings His Hospitality Expertise to Broadway - WSJ.com
August 8, 2012 | WSJ | By JENNIFER MALONEY.

Danny Meyer, the chief executive of Union Square Hospitality Group and founder of Union Square Cafe, Gramercy Tavern and other New York restaurants has teamed up with Jordan Roth, president of Jujamcyn Theaters, creating special hospitality workshops in hopes of turning pans into raves....About 250 full-time employees from all of Jujamcyn's theaters and its corporate office have attended the workshops led by Mr. Meyer's consulting firm, Hospitality Quotient. At a session in a theater-district restaurant in May, the Walter Kerr Theatre's ushers, ticket takers, porters and box-office staff brainstormed scenarios....Hospitality Quotient and Jujamcyn declined to discuss the financial details of their arrangement. Jujamcyn said it is spending about $275,000 for the workshops and to cover the labor costs for staff to attend....Other theater operators say they, too, are trying to make going to the theater more comfortable. "We're all trying to make the experience better. … The theater owners are all taking steps, individually and collectively," said Nick Scandalios, executive vice president of the Nederlander Organization, which owns nine Broadway theaters. All three Broadway landlords participate in an audience-rewards program that offers points redeemable for tickets and seat upgrades, he said.

One challenge the effort faces: the tight space constraints of landmark buildings in which renovations would be costly or not permitted.
Danny_Meyer  customer_experience  customer_service  Broadway  loyalty_management  workshops  hospitality  theatre  management_consulting  experience  experiential_marketing 
august 2012 by jerryking
From Harvard Yard To Vegas Strip Article
10.07.02 | Forbes.com - Magazine | Carol Potash.

Through branding, cross-casino marketing, loyalty cards, and technology, CEO Gary Loveman has made Harrah's Entertainment, the most diversified of the big four gaming companies, a model of effective customer feedback. In an industry accustomed to relying on intuition, Harrah's has built a database of 25 million customers that drills down through all its activities. Digital profiles are based not on observed behavior of what customers have spent but on analysis of what they are capable of spending. The technology includes built-in marketing interventions designed to close the gap between actual and potential spending. In this new world of computer-generated predictions, the customers are willing participants. Harrah's may be the best example of this kind of ongoing feedback system that could be applied to theme parks, ski resorts, cruise lines, retailers, and subscription businesses such as AOL and satellite TV.
predictive_modeling  Las_Vegas  databases  theme_parks  gaming  CEOs  Harrah's  casinos  yield_management  data_mining  customer_profiling  loyalty_management  customer_feedback  variance_analysis  leisure  branding  Gary_Loveman  marketing  observations 
july 2012 by jerryking
globeadvisor.com: How retailers romance their top customers
June 4, 2012 | G&M | MARINA STRAUSS.
From loyalty programs to 'treasure products,' merchants use new ways to woo their best buyers - and keep them from shopping around.

"retailers are courting their premium customers like never before.

These customers aren't necessarily merchants' wealthiest shoppers, but rather their most valued ones: Those who, for the sake of convenience or product choice, often pay full price rather than wait for a sale. They make up just 30 per cent of consumers, but generate about 50 per cent of retail sales and 70 per cent of gross profit margins, according to new research from rewards-program specialist Aeroplan"
retailers  HBC  Marina_Strauss  customer_loyalty  loyalty  Aeroplan  Longo's  Shoppers  loyalty_management 
june 2012 by jerryking
Big Data is watching you
Jan. 06, 2012 | The Globe and Mail | Simon Houpt.

Companies have amassed trillions of digital bread crumbs: from credit card transactions, from people’s online wanderings on social media and search sites, from GPS devices embedded within smart phones...

Live Nation acquired Big Champagne, a consumer data analytics firm that had gained notice for developing the Ultimate Chart, a ranking of the most popular songs and artists according to chatter on social networks and other online sites.

Big Champagne will help Live Nation crunch the information it has on the 200 million ticket buyers in its database, and also help design the company’s dynamic pricing model...An ever more connected world offers richer opportunities for marketers to collect specific consumer data.

The Christmas season may still be a recent memory, but many marketers are already casting a hopeful eye upon 2012 as the year they finally turn into mercantile versions of Santa Claus: omniscient beings who know everything about their customers, and not just whether they’ve been bad or good. (And yes, the marketers believe they’re doing it for goodness’ sake.)

In the past few years, companies have amassed trillions of digital bread crumbs: from credit card transactions, from people’s online wanderings on social media and search sites, from GPS devices embedded within smart phones. Last June, the market intelligence firm IDC said the amount of data produced by our ever-digitizing mass of humanity is more than doubling every two years. Companies are drowning in data. But they’re also recognizing an extraordinary opportunity, and after a series of studies of so-called big data published by research firms over the past year, many are predicting it will become a major focus of marketing executives in 2012.

Already this year, Big Data has received a big endorsement. On Wednesday, after being appointed president of Yahoo, the ex-PayPal executive Scott Thompson was pledging that data would be the key to his new company’s future just as it powered his last company.

“I am certain that the battle of the next generation of Internet businesses will be made up of who has more data and who knows how to use it better than anyone else,” he told a reporter for the trade publication AdAge.com. “I’m not talking about your classic segmentation stuff,” he said, referring to the demographic categorization that companies use to group individuals into broad target markets. Companies such as Yahoo will increasingly focus on individuals. “It’s the segmentation of one and what the data of one tells you,” he said.

In the middle of December, the live entertainment colossus Live Nation acquired Big Champagne, a consumer data analytics firm that had gained notice for developing the Ultimate Chart, a ranking of the most popular songs and artists according to chatter on social networks and other online sites.

Big Champagne will help Live Nation crunch the information it has on the 200 million ticket buyers in its database, and also help design the company’s dynamic pricing model: the practice of altering ticket prices depending on real-time supply and demand. Old industries are also getting into that act. Over the past year, Broadway producers have capitalized on dynamic pricing to charge much higher ticket prices for especially hot shows, and nimbly offer discounts when demand fell away.

Even very young industries are being remodelled by the use of more specific data. Last year, after trying to slug it out with Groupon and Living Social, the two-year-old San Francisco-based local offers provider Bloomspot took a different tack. The company realized it could confront the main reason for merchants’ disenchantment with the sites – a belief that too many people merely take advantage of discounts and never patronize the merchants again – by sifting data in order to find the most valuable customers.

With the permission of both the participating merchants and the customers, “we are able to effectively get access to the stream of consumer credit card purchases belonging to a particular merchant by going through the credit card processors,” said Jasper Malcolmson, the Canadian-born president of Bloomspot, which received $40-million (U.S.) in funding last summer.

Mr. Malcolmson said that analysis of that data enables Bloomspot, which operates in 10 U.S. cities, to determine which customers who have bought, say, a 60-minute massage at New York’s Broadway Chiropractic for $39 (a “$270 value”) end up “acting like penny-pinchers and don’t spend well and don’t return,” and which ones instead treat the discount as an incentive and end up spending more money at the merchant: the goal of making the discount offer in the first place.

“The customers who are good receive follow-up offers, effectively in recognition of their spending behaviours,” he explained.

But Big Data isn’t just being used for newfangled loyalty marketing; many companies are using it to provide better service to customers in new ways. Kenna, a data analytics firm based in Mississauga, designed a mobile app to be used by customers of its client BASF Canada, the farming chemical company. BASF cross-references its customer purchase data with information on weather patterns to generate real-time information for farmers on when to apply the chemicals for greatest crop yield.
Simon_Houpt  massive_data_sets  data_mining  real-time  data  data_driven  personalization  agriculture  Kenna  Live_Nation  loyalty_management  dynamic_pricing  Broadway  Bloomspot  purchase_data 
january 2012 by jerryking
The games customers play
October 6, 2011 | Report on Small Business | Omar El Akkad.
Gamification can make your brand appealing and addictive

Gamification refers to a strategy whereby interactions with a brand are made more appealing and addictive to consumers by incorporating tricks from the gaming world, such as high-score tables and achievement badges. Are such "achievements" almost completely worthless in the real world? Yes. Do consumers become mindlessly addicted to them anyway? Yes.

2. Think of gamification as a way of creating an Aeroplan-like loyalty program at a tiny fraction of the cost. Many businesses implement loyalty programs such as "get the 10th coffee free" cards. But Zichermann says free stuff is actually at the bottom of the list of what customers want. He uses the acronym SAPS: status, access, power, stuff. Those are the things loyal customers want, in that order. As such, lunch with the owner or a 15-minute head start on a sale for your best customers might be far more effective than a free coffee.

3. Figure out where your product fits into your customers' lives and help make that experience more meaningful.
in_the_real_world  games  Omar_el_Akkad  branding  gamification  loyalty_management  perks  customer_loyalty  customer_insights  hiring-a-product-to-do-a-specific-job  Aeroplan  Aimia  brands 
october 2011 by jerryking
STRATEGY PERKONOMICS: The customer's always right ... and looking for a perk
Nov. 24, 2008 G&M column by Harvey Schachter looking at customer care plus assorted tips on branding.

some companies are gaining an edge through what it calls "Perkonomics" - adding perks and privileges to the regular offering in order to gain loyalty by satisfying consumers' desire for novel forms of status and/or convenience.

Perkonomics applies across all industries, and even to luxury brands that can search for additional status perks to offer customers. In most cases, the perks are free but in some instances the customer pays for the privilege.

Examples.

Exclusive Perks: American Express cardholders had exclusive access to purchase the winning dress designed on the episode of Project Runway of Sept. 3 - non-Amex customers could not purchase it.

No Queue Perks: Skipping a lineup can be a big time saver and, hence, a major perk. Avis Preferred membership enables car rental customers to skip lines and paperwork and go straight to their car, at more than 1,400 locations worldwide.

Concierge Perks: Amsterdam-based private bank Insinger de Beaufort launched a service aimed at saving its top clients the time and hassle of dealing with the minutiae of their personal finances. The clients are sent a big shoebox by courier every month into which they drop bills to be paid, receipts, tax returns, speeding tickets, insurance documents and the like, which the bank then handles for them.

Assorted Perks: South African health insurance company Discovery has a wellness program called Vitality that offers rewards for a healthy lifestyle based on scientific measurement. Members receive points by decreasing their risk factors for illness, and the higher the points, the greater the access to shopping and travel discounts. Nokia in the Philippines has installed battery-charging stations for phones throughout the Manila subway system, which Nokia owners can use at no cost.

Parking Perks: IKEA stores in Canada feature two Green Parking spaces close to the store reserved for drivers of hybrid cars and fuel-efficient vehicles.
Harvey_Schachter  customer_care  tips  branding  innovation  perks  product_launches  Amex  queuing  parking  customer_loyalty  loyalty_management  exclusivity  concierge_services  quantified_self  IKEA  Green_P  risk_factors 
january 2009 by jerryking

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