badgeville summit, engage 2012 - presentation : gamifying retail loyalty strategies with america’s...
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MARC PARRISH, VP of Customer Retention and Loyalty Marketing · Barnes & NobleTRANSCRIPT
PRESENTATION: Gamifying Retail Loyalty Strategieswith America’s #1 Book Retailer
MARC PARRISHVP of Customer Retention and Loyalty Marketing
Gamifying Your Retail Loyalty Strategies
Marc ParrishVP, Customer Retention & Loyalty Marketing, Barnes & Noble
Retail Brands crave loyalty.
Source: Google Insights News Search
It means that marketing dollars can be spent more effectively on a convinced audience.
But most Retailers cannot pivot easily…
… they think little about loyalty and believe it will naturally occur. Also, ads to acquire new customers are sexier.
But technically, customers evolved quickly.
So must retailers.
Spray & Pray
Customization
Segmentation
Individualization
1995
2000
2005
2013
From Inbox to Clutterbox.12 hours in my digital life …
and these are brands I want to relate to!
Email & Direct Marketing
The Goal of Loyalty Marketing is always white glove service….
But one hat does not fit all CustomersHow Often Do You Shop? Once a Year
or LessSeveral Times
a Year
Once a month or
more
Once a week or
more
Unique Yearly Cust.
(M) Store Count
Walmart 7% 19% 36% 38% 132 3,300
Target 23% 37% 30% 11% 100 1,800
Warehouse store (e.g., Costco, Sam's or BJs) 25% 31% 35% 9% 75 1,000
Amazon.com 23% 41% 27% 9% 87
Best Buy 47% 41% 10% 2% 70 1,300
Office supply store (e.g, Staples or Office Depot) 36% 47% 15% 2% 82 4,200
Once a Year or
Less
Several Times a
Year
Once a month or
more
Once a week or
more
0%5%
10%15%20%25%30%35%40%45%50%
Wedges Low Frequency
Once a Year or
Less
Several Times a
Year
Once a month or
more
Once a week or
more
0%5%
10%15%20%25%30%35%40%45%50%
Once a Year or
Less
Several Times a
Year
Once a month or
more
Once a week or
more
0%5%
10%15%20%25%30%35%40%45%
Bells Moderate Frequency Direct Competitors High Frequency
To bring your shoppers back, customer friendly machinery is required.
So all Retailers have loyalty programs.But after decades, who listens?
• In 2009*– 1.807 billion: loyalty program
memberships in US• Up 25% from 2006
– 14.1: average memberships per US household
– 56%: percent of memberships that are inactive
• No engagement within a 12-month period
– 6.2: active programs per household– 80%: percent of consumers with at
least one loyalty card
* 2009 Colloquy Report
CC Program Point / Money Back Program
Free ProgramPaid Program
That something is gamification.
Something has to be done.
How retailers see “Gamification”
I’m a Gamer!• I can’t wait for the next
great gaming experience!
• Mobile
• Casual
• Hard Core
I’m a retailer!• How can I use gaming
to make my products & services more engaging?
should
Scary!
Because Retail has already been gamified.Retailers just didn’t lead the way.
Starbucks went out front.
Mobile gamification tied to Retail Strores. From January 2011 beta to today, Starbucks is now the largest mobile payments company, with 8,000 outlets.
Starbucks cards now account for 22% of all transactions
Lesson: It will work!
(Just don’t give up.)
Challe
ng
e
Skill
Boredom
Anxiety1. Desire
2. Incentive
3. Challenge
4. Achievement
5. Reward
6. feedback
7. Mastery
Think of it this way.
• Gamification is using digital candy to capture that special place in your customer’s brain for your brand, and defend your physical footprint.
