I want to share a few observations about current happenings in the customer loyalty world. From banking, to fast food, to travel and leisure, major brands are taking actions to respond to the uncertain economic environment, maximize lifetime customer value, and upgrade their programs.
In the QSR world, two major players are launching summer promos using the same basic strategy, but very different tactics. Subway’s Sub Club ties in with Disney’s Moana franchise, offering members a $15 Fandango credit to see the movie, while scoring collectible Moana character cups. Meanwhile at Cracker Barrel (let’s not get sidetracked by the tempest-in-a-barrel logo misstep), each adult entrée purchase is an entry to win up to $1000 in food and fuel. Both family-oriented promotions aim to help consumers feeling strapped in today’s economy; take your kids to the movies for less, or offset the cost of summer road trips.
Bank of America is rolling out a new BofA Rewards program, with serious fanfare and major media buys. Financial institutions have sought for years to create programs that effectively reward customers for their overall value, encouraging consumers to consolidate services such as checking, credit card, mortgage, investment and other services. The more accounts, the stickier the relationship. BofA’s new program sorts customers into tiers based on their combined deposits and investment value. The key to the program is to have an eligible checking account and at least one BofA rewards credit card. Based on your tier in the new program, you can receive up to a 75% bonus on the base rewards earned on your card. That could be some serious cashback. There are other tier-based benefits, such as interest rate reductions, discounted or waived fees, credits redeemable with partners, and what BofA refers to somewhat vaguely as “Lifestyle Benefits.”
Finally, a niche player in the travel sector, Margaritaville, says their Perks program will pause from June 17 through August 4, during which time “the Perks Rewards Portal will be completely unavailable (including new enrollments, selection and redemption of Perks, Welcome Perks, and Promotions).” I realize this isn’t a major airline cutting over to a new system, and I assume few Parrotheads will be up in arms at this interruption; but it sure seems like it would be worth some effort to avoid a total blackout while refreshing the program and/or changing platforms. And at peak summer travel season, too. One can only assume MV is pretty serious about improving their program.
What do these disparate moves have in common? I think they show a deep and broad commitment to customer engagement strategies. In uncertain times, smart marketers double down on keeping their customers happy and loyal. Across industries from finance to fun, from cashback to collectibles, from mortgages to mashed potatoes, and from parents to Parrotheads, loyalty and engagement programs are more important than ever. Your thoughts?