Desmond Edwards, VP of Marketing Services, Bloomin’ Brands, will be one of the featured speakers during a session at the 7th Annual Loyalty Expo, presented by Loyalty360 – The Loyalty Marketer’s Association. The event will be held March 17-19, 2014, at the Hyatt Regency Grand Cypress in Orlando, Florida.
Edwards participated in an intriguing Q&A with Loyalty360 to discuss lessons learned from loyalty pilot programs and what brands can do to avoid pitfalls in their loyalty endeavors.
Q: What are some of the key elements in setting up a pilot loyalty program?
You need to have complete “buy-in” all the way up through your senior management ranks. Another key element is to be completely aligned on the goals of the program. Understanding what success looks like is critical.
It’s also important to ensure that all of the supporting functions (i.e. accounting, finance, operations, training, marketing and IT) are aligned on their role in accomplishing the overall goal. Finally, it’s critical that there's a clear understanding of the consumer need and the pain points to which the loyalty program is solving for.
Q: Can you talk a bit about what you’ve been able to accomplish at Bloomin’ Brands that can help our audience related to customer loyalty, customer engagement, and the customer experience?
Our restaurants have a wide audience appeal, but our frequency of visit cannot be compared to that of coffee shops or fast casual restaurants. Our challenge is to therefore keep customers engaged in an era of casual dining promiscuity. That’s where the loyalty pilot comes into play. Our goal is to remind customers of their dining options within the Bloomin’ Brands family (Outback, Carrabba’s, Bonefish Grill, Flemings and Roys) and have them rewarded for that choice in a simple, but meaningful way. We center our pilot program around the visit because that’s where we shine, in creating great dining experiences when customers come to visit.
Q: How does a company set expectations?
You need to start with clarity of what success looks like. On a functional level, don’t assume that one meeting will have everyone walking out fully in sync. You need to work at aligning the core functional groups around the thought of the long term opportunity for the company. Setting simple, but clear goals and then designing a “playbook” to accomplish milestones is critical to managing expectations.
Q: What are brands doing well in the loyalty space?
Loyalty is a constantly evolving equation. Brands that best understand or anticipate their customer needs and are able to address these needs without denigrating their business plans are typically the ones that are doing well in the space.
Q: Where are the missed opportunities?
Contact strategies. Many companies fail to have constant interactions with their loyalty members. Brands have the opportunity to drive program awareness and influence purchase behavior by communicating with their members and reinforcing the value proposition and benefits they offer. Out of sight equals out of mind.
Q: What is your definition of customer loyalty and has it changed in recent years?
Customers want to feel special and that they matter. A “loyalty” program is a piece of that equation. Having the company focus on all points of the customer journey is critical to ensuring a great experience. Loyalty is not found in one tool, but established through many touch points.
Q: What is your advice for any company starting or revamping a loyalty program?
Spend time on the upfront. Take a look at the competition and also take a look at what other industries are doing for inspiration. Match this up with a clear understanding of what your customers need. Build out your ideal loyalty program and then conduct customer research against the key components as much as possible. Align your potential program with your company business objectives!
Q: Should brands focus on their best customers or on acquiring new ones?
It is a simultaneous equation as you need both. The degree of the need is dependent on your business plan model. How does your model determine and assign lifetime value? What’s the acquisition versus retention equation? How does the loyalty program fit into your company’s overall business plan?