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ORLANDO -- Three years ago, Kellogg Company set out to establish 1-to-1 relationships with its best shoppers, leveraging marketing strategies and insights to increase loyalty for the century-old brand.
Dan Keller, Vice President, CRM & Loyalty, Kellogg Company, told attendees at the 6th annual Loyalty Expo that the goal was to build lasting consumer/shopper relationships to sell more both today and tomorrow.
“We wanted to build scale, segment and learn, engage and activate, measure lift (ROI), partner with retail customers, and identify and engage with our best customers,” he said, adding that about 25% of Kellogg’s shoppers account for half of its overall sales.
Loyalty strengthens CRM value propositions with tangible rewards, Keller said. After extensive research, he said the loyalty program the company wanted to launch would be named Kellogg’s Family Rewards.
“Mom is the primary target,” Keller said. “She can get more out of something she’s already doing from our points-based program and earn rewards of merchandise, coupons, free groceries from a daily sweepstakes, movie passes, restaurant vouchers, gifts cards, and Delta vacations.”
Here’s how the Kellogg’s Family Rewards loyalty program works: Enter codes found inside specially marked Kellogg’s Family Rewards™ packages to collect points. Redeem points for rewards and fun. There is no fee to join and a person can enter as many as 20 valid codes per day.
Keller said Kellogg’s Family Rewards launched in June 2012 and the company has received more than 10 million visitors to its website since that time. He said the brand built awareness of the program through its packaging and not from television or radio. The program was integrated by many partners – including Aimia for its rewards platform -- and teams, Keller said, including development of a mobile site and Facebook app.
“We have a very strong CRM program,” Keller said, adding Kellogg’s sends 35 versions its emails each week, four or five versions of their coupons to consumers, along with access to transactional data.
Since Kellogg’s Family Rewards loyalty program launched last June, the company has acquired about 2.6 million members – 2/3 of which are new to the company database. The program is the top traffic website at Kellogg’s.
“We’re encouraged by the trend,” Keller said. “It’s become a platform for promotions across the company.”
Maria Keller, Director of CRM & Loyalty, Digital Marketing IT, Kellogg Company (and no relation to Dan Keller), told attendees during their Friday session, “Join the Family! How Kellogg’s is Connecting the Dots to Build an Engaging Relationship with Their Consumers,” that consistency of messaging has been crucial for the program.
The biggest challenge? “The first huge challenge was developing a business case saying why this program would work for us,” Maria Keller said. “The initial plan was to have a loyalty program up and running in six months. It’s not the cost of rewards that’s challenging, it’s the cost of getting codes on the packaging that’s a challenge.”
To enhance the core value proposition, Kellogg’s created a community within the program, which offers recipes, healthy eating tips, and other family related ideas to improve the life experience.
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