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Hearts & Wallets is a magazine of BrandLoyalty EDITION 9, SEPTEMBER 2019

RETAIL LOYALTY CONGRESS ‘19

Dare to Differentiate Aljan de Boer, Head of Inspiration at TrendsActive

What drives Generation Z?

GOOD IS THE NEW COOL

Afdhel Aziz shares how retailers must “market like they give a damn”!

FROM IDEA TO FR

EXECUTION DEVELOPING IDEAS THAT SOAR! Michael G. Cohen, Zero Gravity Labs

The loyalty industry is big, and it’s only getting bigger

LOYALTY HEADS OR TAILS?


Optimising in-store execution

StorePal is an award-winning app from BrandLoyalty that replaces ‘mystery shoppers’ by store staff with intuitive digital intelligence on their smart device. It’s designed to let retailers immediately evaluate the impact of their in-store marketing execution, enabling them to identify underperforming stores and rectify any problems immediately, resulting in a 1,3% turnover growth. www.storepal.org

Powered by BrandLoyalty


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With just a few months to go before we welcome you to our Retail Loyalty Congress in Amsterdam, it’s time for us to reassess who we are and what makes us stand out from the rest. Consumers’ increased knowledge and their constantly growing expectations have made them more demanding than ever before. With endless options available at their fingertips, the world has never been so small. It’s time to face up to the fact that meeting all of the needs of every consumer is impossible. We need to make choices. The right choices. It’s time to build businesses around difference instead of similarity. That’s why the theme for the RLC 2019 is ‘Dare to Differentiate’. Successful differentiation starts with deciding what you could and should do best. It involves being willing to constantly reinvent yourself to investigate which consumers truly add value; and to add more meaning to each interaction with them. It means understanding that health is the new luxury, and that the environment means more to shoppers than they themselves may have realised. It necessitates digging deeper into your data to truly understand loyalty and how it’s made. In order to stand out from the crowd, it’s crucial that you dare to differentiate. After all, nobody ever made a difference by being like everyone else. So, we’ve decided to do things differently too this year. We’re creating a new format for the RLC by building four different stages for more than 35 speakers in a set-up that’s almost like a retail festival. We’ll have more retailers stepping up to share best practices than ever before. You’re free to choose your own content, to discover new ideas, to explore your own differentiating factors and to enjoy talks that are relevant to you. Networking is a given; the degree of self-discovery is entirely up to you. We’ll tell you more nearer the time, but there’s one thing I can say for sure: I’m looking forward to seeing you and exploring the value of differentiation with you in Amsterdam this September. Claudia Mennen on behalf of the Executive Committee


CONTENTS

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30 34 RETAIL LOYALTY CONGRESS 2019

Hearts & Wallets is a magazine of BrandLoyalty

EDITION 9 JULY ’19

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Dare to Differentiate

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What drives Generation Z?

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Good is the new cool

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From idea to execution developing ideas that soar


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38 45

50 GADGETS

CASE STUDIES 24

Changing Aussie kids’ eating habits

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Bringing Movie Moments to life at Plus

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Priceless results

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Reversing a negative trend

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If you can’t stand the heat

NEWS IN THE MARKET 16

What’s happening in retail all over the world

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Blockbusting in 2019

BRANDLOYALTY 70

Spotlight on Taiwan


RETAIL LOYALTY CONGRESS 2019

Dare to Differentiate at this year’s RLC Last year we took you on a journey to happiness, but this year we are daring you to differentiate!

It’s time to build businesses around difference instead of similarity. Consumers’ increased knowledge and constantly growing expectations have made them more demanding. With endless options available at their fingertips, the world has never been so small. Therefore, meeting all of the needs of every single consumer is impossible. Instead, it’s time to make choices. Differentiation involves constantly reinventing the store to find out who the value-adding consumer is. It means standing out and doing well by doing good. It means realising that health is the new luxury, and digging deeper into your data to truly understand loyalty and how it’s made. In order to stand out from the crowd, it is important that you dare to differentiate. After all, nobody ever made a difference by being like everyone else.

Create your own programme In our 25 years of global presence in the retail industry, we have seen that many food retailers struggle with their focus, identity and value proposition. We have combined our insights into 6 key focus topics that can strengthen the consumer offer and help you differentiate your brand from the competition. At this year’s Retail Loyalty Congress, you will be inspired by over 35 speakers on 4 different stages, with more food retailers taking to the stage than ever before.


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RETAIL LOYALTY CONGRESS 2019

With obesity now the number one killer in the world, and stress rising to be the biggest health epidemic of the 21st century, consumers are regularly confronted with numerous food-related health risks. Food retail can play an indescribable role in improving health in communities around the world. By educating and motivating consumers to make healthier food choices, stimulating creativity and making exercising fun, food retailers can help everyone to live a healthier lifestyle and have more nutritional knowledge. At the RLC, we will dig deeper into obesity, the importance of reducing sugar and salt, getting kids active and outdoors, reducing screen time and how to stimulate (young) minds.

confirmed speakers include:

Jamie Oliver Encouraging healthy swaps


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One of today’s biggest problems that companies, and individuals are facing is finding purpose and doing good for people and the planet. Businesses around the world are already starting to unlock the potential of sustainability as a business model, offering real purpose by using their influence to do good in the world. As the cornerstone of society, retailers have a strong influence on consumer behaviour. At the RLC we will explore topics such as reducing plastic, sourcing with integrity and finding ways to create happiness in your community.

confirmed speakers include:

Afdhel Aziz Good is the new cool


RETAIL LOYALTY CONGRESS 2019

Grocery shopping has become one merged omnichannel / new retail experience, throwing food retailers more heavily into competition with new sectors, such as the food-service industry, as well as with each other. This has resulted in evolving store formats, which has seen traditional retailers become much more like IT companies, and online retailers moving into bricks and mortar stores. At the RLC, we will explore what the future of retail could look like, or what it already looks like for some. Going in-depth on topics such as maximising the potential of man and machine, creating in-store theatre, winning consumers’ trust, and owning the seasons.

confirmed speakers include:

Steven van Belleghem

When Digital becomes Human


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Loyalty works on a subconscious level, affecting all choices we make, all-day, everyday. There isn’t one retailer on the planet that isn’t searching for the magic formula that triggers consumers to flock to their stores time-and-time again. Loyalty is very much alive for food retailers who see it as a path to shopper engagement and understand the added value that short-term programmes offer through robust data and insights. It’s time for research, facts and real conversations around the strategic value of loyalty. At the RLC, we will challenge you to define your moon-shot and help you to realise it, reveal the success factors to maximise ROI, show the impact of small programme adjustments and the power of a high discount.

confirmed speakers include:

annabelle durán

beyond the brand


RETAIL LOYALTY CONGRESS 2019

Data analysis is no longer a question but is a must-have. Collecting transactional data sits well within food retailers’ DNA, but finding the motivation behind the correlation, retailers also need to dig deeper into other sources. With the increased red tape around the use of personal information, navigating data dos and don’ts can often confuse food retailers, which results in inaction and can leave marketing campaigns in a grey area. At the RLC, we will guide you through understanding transactional and emotional data analysis, data tools and solving today’s privacy challenges.

confirmed speakers include:

Viktor MayerSchönberger Let the data in


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Every consumer is unique, differing in what truly matters and what makes them tick. As new generations, GenYZA, enter the market, understanding these consumers is becoming more complex. To connect to shoppers, and get a bigger share of their wallet, food retailers need to understand what motivates them and provide personalised offers. At the RLC, we will take a closer look at the differences between millennials and generation Z, how technology can help food retailers to provide the most attractive offer and the psychology behind decision making.

confirmed speakers include:

Jonah Stillman

Make way for Gen Z For more information visit www.retailloyaltycongress.com. To secure your place at this year’s RLC, get in touch with your BrandLoyalty contact person or email congress@brandloyalty-int.com.


RETAIL LOYALTY CONGRESS 2019

ALBERT HEIJN DEEP-DIVE

This year’s Congress will go deeper than any retail tour has ever gone before, with a deep-dive into Albert Heijn, the leading retailer in the Netherlands. Through a series of short talks, we will learn more about the retailer’s technological developments, it’s advanced and unique flexible pricing system as well as its 52 week loyalty initiatives which have taken hold of Dutch households. The learnings from the talks will then be explored further by visiting three different stores.


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BIGGEST LINE-UP ever! MORE THAN 35 SPEAKERS across 4 stages Viktor Mayer-Schönberger From dark data to enlightened decisions

Viktor Mayer is the Professor of internet governance and regulation at the University of Oxford. As one of the contributors to the GDPR he is one of the leading authorities on how you can get to know your data in a positive way. After his success at our 2015 congress, he will join us once again at the RLC to discuss what data hurdles retailers face and how they can overcome them.

Chieh Huang

Making sense of the once-in-a-lifetime shift to online grocery Chieh Huang is the co-founder and CEO of boxed.com, a company that is disrupting the wholesale shopping club experience. Boxed.com offers a personal touch in a traditionally impersonal environment. He will join us at the RLC to bring his experience of the convergence of offline and online retail inlcuding more about the partnership with Lidl.

Jimmy Nelson

Rory Sutherland

Jimmy Nelson is a world-renowned photographer. After spending his childhood in boarding schools he felt socially isolated and so he set off to find a place where he was comfortable in the world. Upon returning home from Tibet, Jimmy’s visual diary, featuring revealing images of a previously inaccessible Tibet, was published to a wide international acclaim. He will join us at the RLC to discuss his work to date, as well as his path to differentiation.

The self-styled ‘Cinderella of Advertising’ Rory Sutherland is the Vice President of Ogilvy Group and the founder of its behavioural science group. He joins us at the RLC and challenges us to stop looking at the bigger picture and instead “sweat the small stuff” in order to be memorable.

the path to differentiate

Sweat the small stuff

Sekou Andrews

Steven van Belleghem

Jonah Stillman

Afdhel Aziz

Good is the new cool

DIY Innovation

Following the success of his masterclass at the 2018 RLC, Steven van Belleghem thought leader on the transformation of consumer relationships is back. This time with his keynote ‘When digital becomes human’, which uses global examples to explore the relationships with consumers and the balance between human and machine.

Jonah Stillman can call himself a true expert in Generation Z because he is one! At just 19 years of age Jonah currently advises the NFL and LinkedIn on how to reach young adults, and now he’s coming to the RLC. He will join us to explain there is life after the millennial generation, and they are now hitting the workplace and marketplace. It’s time for retailers to make way for Gen Z!

Afdhel Aziz is on a mission to solve one of the biggest problems facing companies and individuals in the 21st century: how to find purpose and meaning in the work they do, and unlock the power of business to do good in the world. He will be joining this year’s Congress to discuss why good is the new cool.

Sekou Andrews, the world’s leading ‘Poetic Voice’, joins the RLC, seamlessly blending inspirational speaking with the spoken word. He will join the RLC to offer us a creative perspective on embracing failure, encouraging unconventional thinking and being the kind of leader who walks the innovation talk.

When Digital becomes Human

Make way for Gen Z


NEWS IN THE MARKET

WHAT’S HAPPENING IN RETAIL ALL OVER THE WORLD? UK

Sainsbury’s trials checkout-less convenience store Sainsbury’s has announced the debut of a till-free concept at its Holborn Circus convenience store in London. The concept uses the SmartShop Scan, Pay & Go app. All checkouts and till areas have been removed from the premises. Shoppers must download the app to their phones to be able to shop in the store, which specialises in snacks and drinks. Items are scanned in as they are added to a basket, with payment made via a QR code upon exit.

GERMANY

Edeka to launch Naturkind organic supermarket banner This summer, Edeka plans to open its first organic supermarket named ‘Naturkind’. With the new organic concept, Ekeda is looking to tap into the demand for organic food by offering specialist ranges.

USA

Amazon Go will accept cash payments Amazon Go will start accepting cash, amid intensifying criticism that the company is discriminating against people who don’t have a bank account.

Would you like to receive the latest news in your inbox every month? Subscribe to the ‘Things we see in retail & loyalty’ newsletter via your BrandLoyalty contact person.

The retailer has not specified a timeline, nor has it determined precisely how it will accept cash payments for the stores.


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CANADA

Walmart Canada unveils new, stateof-the-art, “Urban Supercentre Concept”

APAC

Food in the nude becomes a worldwide sensation As more and more retailers become aware of their plastic footprint, it’s the beginning of the end for plastic in supermarkets. Sales of vegetables soared by up to 300% following moves by a number of New Zealand supermarkets to ditch plastic packaging. Meanwhile some supermarkets in Vietnam and Thailand are turning to banana leaves to replace their plastic packaging.

SWITZERLAND

Coop opens a new food market: Fooby Coop has opened its unique concept store: Fooby. At Fooby, you can buy products, watch them being made or simply enjoy a coffee in the unique atmosphere of a former theatre. It’s also worth checking out the Fooby website for a better understanding of this attractive concept store: www.fooby.ch.

Walmart Canada has unveiled what it calls its new Urban Supercentre Concept store in Toronto which integrates ecommerce, third-party licensees, in-store technology, and an updated assortment into a new bricks-and-mortar design and layout for urban markets. The retailer’s Toronto-Stockyards location will be home for the new prototype store which is introducing “Fast Lane” - a new technology that will allow customers to use the My Walmart app on their mobile device to shop and checkout quickly and seamlessly.


GENERATION Z

What drives Generation Z? F

or retailers who find it hard enough to understand the customer of today, it’s even

more of a challenge to engage with the customer of tomorrow. Yet it’s imperative for the future success of your stores to know who will be shopping there in years to come. Aljan de Boer, Head of Inspiration at TrendsActive, who will be speaking at the RLC 2019, describes Generation Z and explains why it’s crucial to look into what drives these young people’s behaviour.

ALJAN DE BOER WILL BE TALKING MORE ABOUT GENERATION Z AT THE RLC 2019. FIND OUT MORE WWW.RETAILLOYALTYCONGRESS.COM


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GENERATION Z

ALJAN, WHAT ACTUALLY IS GENERATION Z? These are the people born roughly between 1998 and 2015, which means that the oldest of them are just entering adulthood. They now make up 40% of the global population, and influence more than 90% of household purchases. So it’s important to know how to connect with them, but here’s the problem: you first need to understand them properly.

OKAY, SO YOU DO SOME RESEARCH INTO THEIR BEHAVIOUR? Of course we do, but it’s not as simple as only doing that. I believe that most retailers (and brands in general) focus too much on the behaviour itself, and not on what is driving that behaviour. In other words, they look at the outer manifestations rather than the inner drivers. This then leads to the wrong insights, which in turn results in a ‘garbage in, garbage out’ marketing culture. We need to dive deeper to reveal the motivations that cause young people to act in a certain way.

CAN YOU GIVE US AN EXAMPLE? Let’s first look at two seemingly contradictory behaviours. On the one hand, Generation Z are hedonistic: they like to have the latest mobile phone, enjoy travelling the world, and seem to organise their lives around music festivals and going out. On the other hand, they seem pretty responsible and level-headed: they drink less alcohol than previous generations, are less likely to smoke, and have their first sexual experience at an older age. This paradox is pretty confusing to retailers: shelves containing non-alcoholic drinks, vegan and vegetarian foods are increasingly in demand, yet Oreo, Doritos, Heineken and McDonald’s are still very popular brands. It only makes sense if you understand that both types of behaviour are driven by an open-eyed realism. Generation Z believe in making the most of the present while preparing themselves for a very uncertain future. They don’t like hangovers, because these makes them less productive. Being less productive means you lower your chances of success in life. And they’d like the earth to last longer, so they make sustainable choices to delay climate change: there are even vegan Adidas and Nike sneakers now. Yet they also want to have fun today, because there are so many factors that make it impossible to plan a stable lifestyle for themselves in 10 or 20 years’ time. Let’s also bear in mind that they’re still kids, and kids will always want to have fun.

HOW DOES THIS AFFECT THE MARKETING APPROACH? It means that you should build your marketing campaign around the drivers rather than around the behaviour. Let’s take ’smartphone addiction’, whereby withdrawal symptoms occur when someone can’t use their smartphone for 24 hours. From our point of view, this term overlooks the human needs that are driving this so-called addiction. Users are not necessarily addicted to the smartphone per se; it’s simply an instrument for the social rewards and instant gratification that people crave. So as a marketer you should not merely create more apps or better on-screen content; you should also ensure you provide a socially rewarding experience. Also, consider the context: Generation Z are mobile natives who expect a quick fix, so they are


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impatient: speed of service and delivery are important. They don’t yet want to spend their money on subscription-based e-commerce or on groceries; they’re happy for their parents (Generation X) to pay for these things at the moment. However, that may change in the future, as more and more companies like Stitch Fix start offering fast, effortless shopping formats that appeal to young people in a hurry.

I’VE HEARD THEY’RE FAMOUS FOR HAVING A 7-SECOND ATTENTION SPAN Actually, that particular statistic is an urban myth. It comes from some misinterpreted research carried out a few years ago by Microsoft in which they checked young people’s attention span when looking at online banners. Using common sense, you would realise it is ridiculous to state that Generation Z can only focus for 7 seconds, when in reality they watch vlogs, binge-watch or play games for hours on end. Clearly, this kind of superficial soundbite isn’t going to give us the right insights.

WHAT DO YOU SUGGEST INSTEAD? At TrendsActive, we use sociocultural trend research to deeply understand human behaviour. We derive insights from the academic fields of sociology, anthropology, psychology and even pedagogy to help use truly understand Generation Z. For instance, sociology teaches us to look at a person’s formative years – the period roughly between the ages of 10 and 25 – to understand how they have formed their identity. Anthropology warns us that focus groups are a dangerous research tool, because participants often present themselves as their would-be selves rather than as who they truly are. Also, consumers don’t always know or can’t accurately assess why they behave as they do. Psychology shows that people tend to have a heightened sensitivity to information or signals indicating potential danger. This helps to explain why Generation Z, who are bombarded with bad news from online media, lack optimism about the future. And pedagogy has lent us some wonderfully descriptive terms such as ‘stealth-fighter parenting’ styles or ‘curling parents’ to explain trends in upbringing that have a big impact on how some generations raise and shape their children. All of these insights provide a much firmer basis than traditional market research along upon which to build business strategies.

CAN YOU TELL US ABOUT SOME SUCCESSFUL ONES? There are many great examples of how brands and retailers have used insights into behavioural drivers to create very successful marketing campaigns for Generation Z. I’ll show some of them and will talk about all of this more at the RLC 2019 in Amsterdam soon. n

“YOU SHOULD NOT MERELY CREATE MORE APPS OR BETTER ON-SCREEN CONTENT; YOU SHOULD ALSO ENSURE YOU PROVIDE A SOCIALLY REWARDING EXPERIENCE”


BRANDLOYALTY’S RETAIL SIMULATION

The food retail challenge

IT’S NOT A GAME. IT’S A BATTLE!

00 HOUR

00 04 MIN

SEC


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Do you want your colleagues to understand the bigger picture of running a supermarket and put them in control? Now you can, with BrandLoyalty’s unique food retail business simulation – WaldonLake. In the growing city of WaldonLake, you become a supermarket manager and start taking control of what goes on. You’re responsible for running your supermarket and for setting your business targets. For three years, you must design a promotional calendar that best fits your targets and the changing market circumstances. After being in business for three years, the winning team will be the one that has collected the most points by utilising the best marketing activities they have in their arsenal. For more information, or to book a WaldonLake workshop for you and your team, speak with your BrandLoyalty contact person today. Will you become WaldonLake’s retailer of the year? n


CASE STUDY COLES

FRESH STIKEEZ CHANGE AUSSIE KIDS’ EATING HABITS! COLES WILL JOIN US AT THE RLC 2019 TO SHARE ITS BEST PRACTICE. FOR MORE INFORMATION VISIT WWW.RETAILLOYALTYCONGERSS.COM.


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ailer in Australia, Coles, the second-biggest ret the start of 2019. was in a difficult position at rmer Woolworths Squeezed between top perfo orts to win more and discounter Aldi, its eff uctions weren’t customers through price red cut its prices working: Woolworths simply was needed too. A far brighter strategy shoppers to engage valuable family nd and create a distinctive bra later, identity. Just a few months enge the Stikeez Rainbow Chall was born!


CASE STUDY COLES

EAT YOUR GREENS! AND PURPLES, REDS, YELLOWS...

A FRESH WAY TO BOOST FRESH

The aim of the Stikeez campaign was twofold. Firstly, it would stimulate sales by giving customers a free fruit or veg Stikeez character for each $30 AUD spent in the store. Secondly – and no less importantly – it would promote healthy eating by challenging Australian kids to eat fruit & veg in all colours of the rainbow every day. Kids could collect 24 Stikeez altogether, making each shopping trip exciting and enjoyable. This dual approach added up to a very bold move for Coles, which was suddenly and very obviously presenting itself as the to go-to store for fresh, healthy family food. In so doing, it was directly competing against Woolworths, whose strapline is ‘The fresh food people’.

MAKING PARENTS’ LIVES EASIER As every parent knows, it can be hard to get your children to eat healthy food. Kids can be very picky eaters, and they often just want to eat a very limited range of foods. The range of fun characters in the Stikeez campaign turned all sorts of fruit & veg into childfriendly options that were enjoyable and good to eat. So rather than just encouraging customers to spend multiples of $30 AUD to get a free Stikeez, the campaign promoted the actual consumption of a whole fruit & veg rainbow.

Coles went all-out to promote the Stikeez campaign through TV, radio, outdoor and press advertisements, as well as through online and social media. School swaps quickly became very popular too! To keep the momentum going, Coles paced the campaign carefully by starting with an introductory phase to let customers meet the characters, and then later bringing in 4 special characters (glow-in-the-dark, glitter, gold and X). But then a fresh new character emerged who became an amazing story in his own right…

“It’s an opportunity for our team members to give everybody a smile!” Mark During, Coles General Manager, Marketing Operations

JOINING FORCES To support its healthy eating message, Coles partnered with the Healthy Food Association, which went into schools to educate children about how to make good food choices. The retailer also teamed up with the newspaper trade: if readers bought a paper containing a full-page special about the campaign, they received a voucher for a free Stikeez. What’s more, in addition to running FreshStikeez throughout its 820 Coles supermarkets, the retailer extended the campaign to its 685 Coles Express stores. Last but not least, Coles also embraced the power of supplier funding by offering bonus Stikeez on selected products.

BILLY THE GOLDEN BANANA – WORTH $20,000 AUD ON EBAY! To create maximum hype, Coles introduced a strictly limited edition of Billy the Golden Banana. If customers found one of these in their sealed flowpack, they could exchange it for a $100 AUD voucher in-store. Only 100 Golden Billies were made, and they soon became a hype. Very quickly, they were selling for far more than their in-store voucher value on Ebay, with one even going for $20,000 AUD! You can imagine what this craze generated in free publicity for Coles.

FOR FRESH FOOD, COME TO COLES

By the end of the 6-week campaign in spring 2019, Coles had established itself in consumers’ minds as a family-friendly store with a great fresh fruit & veg section. With 96% unprompted awareness, and a significant increase in fresh food sales, Coles improved kids’ eating habits and established a sustainable place in the market for itself.

LIKE TO KNOW MORE? The Fresh Stikeez campaign shows how a retailer can use a spend-and-redeem promotion to change its brand image at the same time as maximising its sales. n


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1

FOOD GADGETS

IF YOU CAN’T STAND THE HEAT… HIDEAWAY STEP You can now safely access the top cupboard or shelf thanks to this hideaway step. The integrated unit gives an extra 15 inches of height and folds away into the unused space in between your cupboards. Price: USD 595

BEEFER HIGH-PERFORMANCE BEEF GRILL Yet another product that claims to give you the perfect piece of beef every time. Reaching temperatures of 1,500 degrees Fahrenheit, it provides an optimal environment to grill steaks. It’s also easy to clean: you can dismantle the interior parts and place them in the dishwasher. Price: USD 900

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FOODCYCLER ECO-FRIENDLY FOOD RECYCLER

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COUNTERTOP PIZZA OVEN Do you want tasty wood fire results at home in just 2 minutes? Then look no further than the Breville Pizzaiolo Smart Pizza Oven. The oven replicates the three forms of heat that a traditional brick oven is known for, allowing you to bake your favourite pizza. Price: USD 800

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Reduce your waste by up to 90% whilst creating perfect compost for your garden with this food recycler. Simply add your cooked and uncooked food scraps to the machine, and in just 3 hours you will have an odourless additive for your garden. Price: USD 350

ROTIMANTIC SMART ROTI MAKER Making your own roti at home has never been easier. To take the hard work out of flatbread making, the device measures, mixes, kneads, flattens, cooks and puffs for you. All you need to do is add the ingredients. Connect the Rotimatic to Wi-Fi for upgrades to add more diversity to meals. Price: USD 1, 11,000 000

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UNIKIA STAINLESS STEEL CLASSY KETCHUP DISPENSER Gone are the days that you had to awkwardly shake the ketchup out of the bottle. Designed with elegant stainless steel, the dispenser delivers the perfect amount of sauce onto your plate. Just fill it with your favourite brand of ketchup and be the envy of all your friends. Price: USD 34

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INTERVIEW: AFDHEL AZIZ


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Good is the new Cool Commercial operators who believe they can only succeed by being more ruthlessly commercial and cutthroat than their competitors may be in for a surprise. Today’s elite weapon of choice is more like a magic wand that dispenses an irresistible mix of goodness, purpose and happiness. Is this naïve, or just good business sense in the 21st century? Afdhel Aziz, Founder and Chief Purpose Officer at brand purpose agency Conspiracy of Love, will speak about how ‘good is the new cool’ at the RLC in September, but his ideas are too interesting not to share with you now.

AFDHEL, WHY DO YOU THINK THAT DOING GOOD IS GOOD FOR BUSINESS? Because the global sales figures prove it. Consumers are voting with their wallets. An enormous proportion of corporate growth is now coming from sustainable products and brands. Take electric cars: people buy them because they represent a purpose, not because they’re cheap – which of course they’re not. Organic foods are no longer just a niche interest. Materials that replace plastic packaging are being welcomed with open arms. Companies that have an active purpose beyond just selling things are attracting greater consumer interest and sales, and this trend is only going to accelerate.

SO ARE WE ACTUALLY ENTERING A NEW KIND OF COMMERCIAL ERA? We’re already there. People are searching for more morality and meaning in their lives, and that includes where and how they shop. Some of the coolest brands are also the ones doing good. They’re the ones that are sourcing their raw materials ethically, reducing their environmental impact, paying their workforces properly and embracing worthwhile causes. Consumers are applauding – and rewarding – such initiatives.

HOW AND WHY HAS THIS SHIFT OCCURRED? AFDHEL AZIZ WILL BE TALKING

People are more connected than ever before, which means they’re more aware of the

MORE ABOUT GOOD IS THE NEW COOL

problems around the world and in their own societies. They are taking their cues from the

AT THE RLC 2019. FIND OUT MORE

architects of cool – such as musicians, directors and athletes – and amplifying their voices

WWW.RETAILLOYALTYCONGRESS.COM.

on a grand scale. Social media platforms have made activism accessible and acceptable


INTERVIEW: AFDHEL AZIZ

in everyday life. Expressions of conservative, nationalistic sentiments such as Trumpism and Brexit are actually stimulating their own counter-balance: grass-roots movements embracing diversity and inclusion. The irony of this is that we’re now experiencing a rise in political engagement, the likes of which we probably haven’t seen since the 1960s. Consumers are very aware of the power they have, and they’re exercising it to shape the kind of world they want to live in.

ISN’T THAT OVER-IDEALISTIC? I’m a realist and so are the CEOs of the companies I work with. They know they have to evolve – and fast – because consumers don’t want to do business with brands that make them feel bad. Nasty brands get a bad name very quickly these days, and nobody wants to be associated with them. People get a positive feeling from interacting with brands that do good things. This leads to a virtuous – and profitable – circle.

AH YES – THE MONEY. WHAT’S THE BOTTOM LINE? We need to change our attitude to doing good. It’s cynical to just view it as a cost that impacts your profitability. Corporate social responsibility is not a deadweight: it’s a huge opportunity. For instance, there are trillions of dollars out there just waiting to be unlocked by companies working to meet the UN’s Sustainable Development Goals. The realisation that goodness and profitability can be mutually beneficial is transforming the whole nature of organisations, especially as vacancies are more likely to be filled if they offer potential employees a purpose along with a paycheck. Young people in particular want to use their skills for more than making money. They need to experience a sense of purpose both during their professional lives and in the choices they make outside work.

AT’S THE MOST IMPORTANT SINGLE LESSON YOU’D LIKE RETAILERS TO LEARN? Know your purpose. Realise why you exist as an organisation, other than to make money. Work out why you should be worth including in people’s lives. If you don’t, why should they want you around when they have so many other options? Think about this now, and I’ll challenge you more at the RLC 2019 in September.

“People are searching for more morality and meaning in their lives, and that includes where and how they shop. Some of the coolest brands are also the ones doing good”


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Afdhel Aziz ONE OF THE WORLD’S LEADING EXPERTS IN BRAND PURPOSE, MARKETING INNOVATION AND SOCIAL IMPACT. HE IS AN AWARD-WINNING MARKETER WHO HAS LED BRANDS AT PROCTER & GAMBLE, HEINEKEN, ABSOLUT, AND NOKIA, IN LONDON AND NEW YORK. HE IS CURRENTLY THE FOUNDER AND CHIEF PURPOSE OFFICER OF CONSPIRACY OF LOVE, A BRAND PURPOSE CONSULTANCY THAT HELPS BRANDS LIKE SONOS, ADIDAS, BOMBAY SAPPHIRE, MARS AND COTY FIND WAYS TO ‘MAKE MONEY AND DO GOOD’. Afdhel is the co-author of the bestselling book ‘Good is the New Cool: Market Like You Give a Damn’, a provocative manifesto for a bold new model of marketing. In it, he explains how brands and companies can market to Millennials and Generation Z by using the power of purpose to change the world for the better.


CASE STUDY PLUS


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BRINGING

DISNEY MOVIE MOMENTS TO LIFE AT PLUS

Belle and the Beast dancing in the great hall, Elsa singing “Let it go”, or the Dory “just keep swimming” scene. Everyone has a favourite Disney movie moment. In 2018 PLUS supermarkets in the Netherlands encouraged shoppers to collect their favourite Movie Moments in a spend and get loyalty programme. With great activation and an interactive app the programme captured the hearts of shoppers young

©Disney ©Disney/Pixar

and old. Hearts and Wallets looks at the programme in more detail.


CASE STUDY PLUS

CAPTURING THE HEARTS OF LITTLE SHOPPERS As a family orientated supermarket, PLUS understands the value of appealing to the little shoppers. Therefore, in September 2018 the Dutch retailer launched a programme to reward its shoppers, offering everyone’s favourite Disney Movie Moments in collectable cards. For every 10 euros spent in-store, customers received a pack of four cards which they could collect in an accompanying album or trade with friends. With 192 different cards to collect PLUS was able to provide hours of entertainment, which was experienced on the shop floor and in Dutch households across the country.

BRINGING MOVIE MOMENTS TO LIFE Of course, a little extra Disney magic was added to each card. By using the Movie Moments app shoppers were able to bring these cards to life! The aim was to design experiences around different emotions, rather than simply just distributing content. The result was a series of collectable cards that formed a tool for sparking greater social awareness around the deeper concept of emotions. By scanning the card, the app unlocked extras such as movie clips, sound bites, games and augmented reality that enhanced the key emotions explored during the films. There were also special edition cards available with glow in the dark, scratch and sniff, scratch off, textured and glitter additions. Three super special cards were also given out with the purchase of certain supplier collaborated products.

APP STATS > 9,2 Million unique cards scanned (source loyalty entry) In the App we used for example a smart AR filter, to çhill’the phone’s camera to create a snowy lens reminding the viewer of the contrast between the warmth and sisterly love of our heroines Anna & Elsa and the icy magic in the movie Frozen!

> 10 minutes = average time spent on the app by users each day (source loyalty entry) > Nearly 85,000 active users (source loyalty entry) > On average, 108 cards are scanned by each user of the app


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Disney was the perfect brand for PLUS, for 6 weeks the retailer was able to bring kids’ favourite characters to life on the shop floor, increasing the fun of shopping for the whole family. Plus has leveraged this appealing and fully integrated communications campaign to connect the emotional appeal of Disney to its own brand in a long-lasting and meaningful way. With high participation from shoppers this was definitely a moment that PLUS and its shoppers will never forget.

ABOUT DISNEY MOVIE MOMENTS For almost 100 years, Disney’s stories and experiences have touched the hearts of people all around the world. Movie Moments combines the greatest moments from Disney and Pixar’s movies, and transforms them into a set of collectable cards. We decided to use emotions as the link to connecting with kids and parents and the shopping experience because emotions are the key to memory associations. By using digital media and augmented reality we could create unique experiences based on emotive moments from Disney. Cards were available in various different categories, allowing shoppers to compare the craziest, cutest, scariest and happiest moments from 16 different movies. A concept that strikes a chord with children of all ages, all year round. n

“I WAS A FAN OF DISNEY 40 YEARS AGO, AND IT IS STILL RELEVANT TO KIDS TODAY. IT SPANS GENERATIONS!” - PLUS Store Manager

©Disney ©Disney/Pixar

THE PERFECT PARTNERSHIP


MOVIE RELEASES

BLOCK BUSTING IN 2019 This year will be one that goes down in cinematic history. With huge blockbuster hits set for release soon, film enthusiasts young and old will be flocking to see their favourites return to the big screen. With Buzz Lightyear, Woody, C-3PO and BB-8 all making an appearance in 2019, we take a look at the key Disney cinema releases that should be put in your diary.

THE OPPORTUNITY FOR RETAILERS As a brand, Disney provides unbeatable opportunities for retailers, especially around the release of a film. Thanks to the unprecedented marketing budget for each film, as well as wordof-mouth and viral marketing, retailers can piggy-back on each film launch with tailored programmes in their stores.

ŠDisney/Pixar

To help you make the most out of the opportunities a Disney film launch can provide, BrandLoyalty has developed concepts for loyalty programmes based around these top-ranking movies. For more information, please contact your local BrandLoyalty sales representative.


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DISNEY PIXAR

TOY STORY 4

After a nine year break, the creators of the beloved Toy Story films are once again reopening reopened the toy box and bringing brought moviegoers back to the delightful world of everyone’s favourite gang of characters. Toy Story 4 opened to commercial and critical triumph at the Box Office this summer, with total Global Box Office number currently standing at $924M. $ Get ready to welcome back We welcomed back Woody, Buzz Lightyear, Jessie, Rex, Bo Peep and Slinky as well as newcomers Forky, Ducky and Bunny. This is the fourth instalment of the Toy Story series and continues the story with Sheriff Woody and Buzz Lightyear after they were given by their owner Andy Davis to new owner Bonnie Anderson.

What’s it all about? Woody, Buzz and the whole gang find themselves far from home, discovering new friends – and old ones – on an eyeopening road trip that takes them to unexpected places.

Due for Home Entertainment release in Winter 2019.


©Disney

MOVIE RELEASES


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DISNEY

FROZEN 2 When it was released in 2013, Frozen was an instant hit and broke records at the box office. The movie was the highestgrossing animated film of all time as well as Disney’s first animated film to win an Academy Award for Best Animated Feature Film, along with an Oscar for Best Original Song for the film’s breakout hit ‘Let It Go’. Therefore, a follow-up was inevitable. Now Anna and Elsa are back, with more catchy tunes and a close-knit group of friends to face a series of adventures that lie before them.

What’s it all about? Few details have been released by Disney about the plot of the upcoming sequel, but we do know that Anna, Elsa, Kristoff and Olaf will be on an adventure into the forest to find out the truth about the ancient mystery of their kingdom. Coming to cinemas in November 2019.


MOVIE RELEASES

STAR WARS: THE RISE OF SKYWALKER

© & ™ Lucasfilm Ltd.

The third instalment of the Star Wars sequel trilogy, the ninth and last film in the franchise, Star Wars: The Rise of Skywalker will have audiences on the edge of their seats. Fans will be pleased to hear that the role of Leia Organa will once again be played by Carrie Fisher, using previously unreleased footage shot for Star Wars: The Force Awakens.

What’s it all about? Here we can only guess at the actual plot line, but we can definitely say it continues from the story of 2015’s Star Wars: The Force Awakens. Lucasfilm has also confirmed that Episode IX will be the final movie instalment based around the Skywalker clan, drawing to a close the saga that was started by George Lucas over 40 years ago. Coming to cinemas in December 2019.


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BUT WAIT, THERE’S MORE Don’t forget these other Disney releases that will be coming to cinemas this year: Avengers Endgame (Out now!) Aladdin (Out now!) The Lion King (Out new!) Maleficent: Mistress of Evil (October) And of course, hitting the big screen in 2020 will be: Onward (March) Mulan (March) Artemis Fowl (May) Jungle Cruise (July) The One and Only Ivan (August) Cruella (December) n


Jamie Oliver is a brand within the BrandLoyalty portfolio.


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PRICELESS

RESULTS SULTS Grupo Pão de Açúcar (GPA) is the largest retail and distribution group in South America. On the 65th anniversary of its premium banner Pão de Açúcar - the retailer decided it wanted to thank its customers for their loyalty and create additional loyalty with others. This was the start of something new for Brazil, and it involved the celebrity chef Jamie Oliver.

GPA WILL BE SHARING ITS BEST PRACTICES AT THE RLC 2019. FOR MORE INFORMATION, VISIT WWW.RETAILLOYALTYCONGRESS.COM


CASE STUDY GPA

BRAZIL WELCOMES STAMP COLLECTION WITH OPEN ARMS In 2017, Pão de Açúcar celebrated its 65th anniversary, and what better way to celebrate such a huge milestone than by rewarding loyal customers shopping in one of its 267 stores? Pão de Açúcar and BrandLoyalty created a stamp-based loyalty programme offering Jamie Oliver knives and cutlery.

KNOWING THE CONSUMER Brazilian families put a lot of time and effort into cooking and sharing meals together. This knowledge, coupled with the fact that high-quality knives are often unaffordable for the average household, made the perfect opportunity for a knives and cutlery programme. Using the Jamie Oliver brand, which had 72% brand awareness in Brazil before the programme, proved the perfect match for this retailer and its customers’ love of cooking great meals.

CREATING AN OFFER TOO GOOD TO REFUSE With seven high-quality Jamie Oliver knives and three completer items available to collect, shoppers could redeem each knife almost for free once they had collected an average of 50 stamps. As a result, although this was a new type of promotion for shoppers in the country, they simply couldn’t resist it.

PERFORMANCE THAT OUT-PERFORMED The results of the programme went beyond anything that BrandLoyalty or Pão de Açúcar could have expected. Brazilian consumers welcomed the concept of collecting stamps with open arms. As the end of the programme drew closer, influencers turned to social media to ask GPA to extend the closing date to allow them to finish collecting their set of knives.

THANK YOU! At the end of the programme, GPA wanted to thank those who joined, redeemed and drove the hype for the Jamie Oliver knives and cutlery programme to make it such a hit. They did so by publishing an advertisement in one of the largest national newspapers.


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Many thanks to all of you who joined in, redeemed your stamps and made this promotion a success. The collect & redeem programme exceeded all expectations • More than 1 million knives and cutlery items redeemed • Over 50 million stamps distributed • Thousands of customers redeemed their stamps

And there’s more to come: we are already working to bring you more promotions like this one, with unique, high-quality and amazing rewards.


CASE STUDY GPA

OF COURSE, A FOLLOW-UP WAS JUST AROUND THE CORNER...

REWARDING LITTLE SHOPPERS

Of course, the follow-up could not be just any programme. As pioneers in the country, Pão de Açúcar continued setting trends, this time by creating a kids’ promotion, again with Jamie Oliver’s brand, to reward little shoppers in their stores.

BUILDING ON GPA’S ORGANIC HERITAGE

REWARDING LITTLE SHOPPERS

GPA encourages a healthy, balanced diet full of nutritious choices,

Participating in the programme was very simple: instead of

and this is something that BrandLoyalty wanted to mirror. In

collecting stamps, shoppers received a NES pack for every

addition, over 7% of Brazilian children up to the age of 5 are

R$35.00 they spent. Each pack included 4 stickers, which could

overweight: a fact that was shocking to Pão de Açúcar and

be collected in the accompanying album, and a shield. Once

BrandLoyalty alike. Creating a programme that would not only fit in

shoppers had collected 4 shields, they could redeem 1 of 5

with GPA’s beliefs but also solve a problem amongst children seemed

superpower vegetable plush for just R$4.99. In addition,

like the perfect answer. And so Jamie’s Garden was launched.

shoppers could buy a greenhouse kit that included seeds for just R$9.99, encouraging kids to find out more about where their

JAMIE OLIVER – FOOD ACTIVIST

veggies come from.

Due to his roots in advocacy for healthy eating, Jamie Oliver was once again the perfect partner for GPA. His high brand profile,

RESULTS THAT SPOKE FOR THEMSELVES

coupled with the effect of the previous programme, created a

During the 8-week programme, there was a continuous wave of

buzz around the programme from the start.

good feeling that surrounded Jamie’s Garden. Social media was flooded with pictures of kids planting their own gardens, babies

TRAINING THE AMBASSADORS – THE STORE STAFF

and dogs(!) holding the vegetable plush, and families reading

In the two weeks before the launch of the programme, 13 training

their children stories from the illustrated book.

sessions were held with store staff that resulted in more than 830 GPA employees becoming advocates of the programme from

BrandLoyalty was contacted by teachers who expressed their

the start.

gratitude for how the programme had changed their classes to focus on healthier ways of eating. There was even a report from a journalist who recounted how the theme of his son’s birthday party had changed from dinosaurs to fruit and vegetables.

VEGETABLE SUPERHEROES Beatriz Ramos, Managing Director of BrandLoyalty Brazil, commented, “Imagine you’re a child again, and your parents are telling you stories about superheroes. But this time, they’re fruit and vegetables who teach children all about a healthy diet through their unique adventures in Jamie’s Garden. It was incredible to see how this campaign came to life and became the talk of the town in Brazil. We saw Pão de Açúcar being widely recognised for the wonderful message it sent in helping parents educate their children about healthy eating.” n


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JAMIE’S GARDEN RESULTS “AFTER WE PRESENTED HER WITH THE BROCCOLI PLUSH, SHE STARTED EATING BROCCOLI AND ENJOYING THE TASTE MORE THAN EVER BEFORE.” – Pão de Açúcar customer, talking about her daughter

900,000 plush redeemed 16,000,000 stickers distributed 122,000 illustrated albums sold 62,000 greenhouse kits sold


MICHAEL COHEN

Michael Cohen

Michael Cohen, is a co-founder of the Zero Gravity Lab (ZGL), the innovation arm of LoyaltyOne. Focusing on emerging and disruptive technology that could shape customer experience at retail, ZGL works with technologies such as facial recognition, augmented reality, voice assistants and machine learning. Michael spoke to Hearts & Wallets about how ZGL goes from idea to execution, and in doing so, how they can get buy in from senior leaders or outsiders for their ideas.

MICHAEL G. COHEN WILL BE TALKING MORE ABOUT INNOVATION AT THE RLC 2019. FIND OUT MORE WWW.RETAILLOYALTYCONGRESS.COM.


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MICHAEL COHEN (JD/MBA) IS AN INTRAPRENEUR AND INNOVATION LEADER. WITH OVER A DECADE IN INNOVATIONBASED ROLES, MICHAEL HAS A TRACK RECORD FOR INTRAPRENEURSHIP AND PRODUCT DEVELOPMENT THAT HAS SEEN HIM BRING MULTIPLE SUCCESSFUL PRODUCTS TO MARKET. As the General Manager at Zero Gravity Labs (ZGL) Michael is responsible for the business leadership of the Labs including everything from overarching strategy, team selection, office culture and branding through formal partnerships and relations with the ZGL Board of Directors.


MICHAEL COHEN

GETTING BUY IN FOR NEW IDEAS

2. FRAME A STORY AROUND YOUR IDEA

Having ideas is a great thing, we live in a time when technology

Now that you have your idea written down you are going to want

has enabled people who have big ideas to shape, change and

to start communicating it to others. So how can you take

disrupt businesses and industries. However, having an idea is

something complex or where you are talking about a big

not enough. To be successful and really get that idea off the

opportunity that is around the corner and not easy for your

ground you need a game plan and a strategy for how you will go

executive team or others to spot and make it digestible and

from idea to execution. You need to get people to rally behind

understandable?

that idea and ultimately to get it to market in a successful fashion you need a lot of people (you need budget, you need

In my experience a great way to do this is to frame a story for

teammates, you need customers) to say yes.

them that they can understand. Since the beginning of time we have been a species that likes to both tell and listen to stories so

As an idea person myself, over the past several years I have

use that to your advantage and think about how you can frame

developed some steps I try to follow

your idea in a narrative that draws

that have helped me get to yes on a

your audience in and leads them to

bunch of ideas. Here are my steps to

the same conclusion you have.

success;

1. COMMIT TO YOUR IDEA BY WRITING IT DOWN The first step in getting others to understand and buy into your idea is for you to see it as more than just a set of thoughts floating in your head. It needs to be concrete, you need to commit in a material fashion and so I encourage you to write it down. Whether that is on a sticky note, a white board or in a journal there is

“you need budget, you need teammates, you need customers”

When I am doing this, I will often use a tool like the Lean Canvas to help me by

forcing

my

thinking

into

a

framework around the idea and then extrapolating from that to make it less rigid and more of an actual story. Though it may seem a bit cheesy if you help people understand your idea by referencing something they already know (e.g. This is part of the sharing economy like AirBnB) it will

something amazing that happens

bring them to a place of familiarity.

when you are forced to put your

You can even go as far as to journey

ideas down in a fashion that is

map a day in the life of customers or

tactile.

users. Bottom line take them on a little trip by using a narrative that is

A Harvard Business Study found that the 3% of graduates from

not a rigid set of slides or just a free flow of ideas.

their MBA who had their goals written down, ended up earning ten times as much as the other 97% put together, just ten years

3. HAVE PRE-MEETINGS AS NEEDED

after graduation.

My first boss told me “the meeting never happens in the meeting” and it was advice that has served me well.

Writing your goals down not only forces you to get clear on what exactly it is that you want to accomplish but doing so plays

Depending on how many people are going to be a part of the

a part in motivating you to complete the tasks necessary for

decision-making process you may benefit from having “pre-

your success. The process of putting your goals on paper will

meetings” and gathering input and possible objections before

force you to strategize, to ask questions about your current

you present for the formal and official ask. I have found that in a

progress, and to brainstorm your plan of attack.

meeting of multiple decision makers if you can get the first couple


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of head nods the rest of the people are more likely to agree.

5. HAVE A CLEAR ASK

However, if you get objections or question marks right away it

Finally, while this may seem obvious, I am often in meetings

often causes the others to take the same route. Sometimes it is as

where at the end I am not sure what the person is asking for. Do

simple as hearing how a decision maker rephrases something

they need money? Do they just want me to approve the time they

you have said and then using the same terminology when you

are spending on this? What is their question? So be upfront with

present to the group. In doing so they feel they have contributed

it, open the meeting with it. “Today I am here to ask you for X.”

to the work and are more likely to feel bought in.

In doing so you have given your audience the right context from which to evaluate what you are sharing with them. If you need

4. MAKE IT TANGIBLE

$1M that is a lot different than if you need some of your time

Especially when you have an idea that is based on a digital

freed up to work on something.

solution you should do everything you can to create some sort of prototype, wire frame, clickable demo or even use hand

At the outset of your presentation, if your audience does not

drawn sketches. A discussion about a digital or data science-

know what you need it becomes harder and harder for them

based solution takes on so much more meaning for your

follow your presentation in the right way to evaluate and make a

audience when they can visualize it or touch and feel it.

decision in a timely fashion.

You don’t need to be extremely technical yourself to achieve this. Sync up with someone with some graphic design skills and

6. START TODAY

get them to help build you a few mock screens or wires for your

One of my favourite Nike ads says, “Yesterday you said tomorrow”

product and then drop those in a prototyping tool like Invision.

and its true. Many people have ideas and talk about doing

Showcasing a product in this form also adds confidence for your

something but yet very few actually do it. So, take an idea today

decision makers that you do indeed have a vision and can

and write it down and pursue it. The only way you can truly fail

bring it to life.

is by not getting started. n


CASE STUDY MAGNIT


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Creating HAPPY FAMILY MOMENTS with Magnit In 2018, BrandLoyalty set about the mammoth task of launching the biggest ever ‘collect and redeem’ loyalty programme in its history. Across more than 15,000 Magnit stores, BrandLoyalty gave shoppers the opportunity to collect for vivo | Villeroy & Boch ovenware with up to 97% % discount. Hearts & Wallets took the opportunity to dive deeper into the programme.


CASE STUDY MAGNIT

Magnit is one of the market-leading food retailers in Russia. The company is the leader in terms of number of stores and territorial presence. BrandLoyalty and Magnit have had a productive partnership for four years, running numerous successful loyalty programmes across single retail channels, which helped to attract new customers and to increase interest and excitement amongst existing customers.

IMPLEMENTING A NEW LOYALTY STRATEGY In 2018 Magnit and BrandLoyalty established a clear loyalty strategy together: sharpen the offer for high value shoppers. With free (or almost free) A-branded rewards we succeed in attracting and holding on more loyal shoppers for Magnit and meet their needs.

CROSSING ALL RETAIL BANNERS AT ONCE Magnit still kept the desire to create one programme for all regions and all formats of store family. At that time, Magnit consisted of 13,424 convenience stores, 467 supermarkets and 4,505 drugstores. In 2018, for the first time, a loyalty programme was created to take place across such a big number of selling points. We designed a vivo | Villeroy & Boch ovenware range that could be bought for 19 weeks from September 2018, during the Christmas period until January 2019. More than 30,000 pallets of products got shipped to the stores for the vivo | Villeroy & Boch programme.

CREATING A STORY Hooking on one of todays’ biggest consumer desires to have more quality time with families, we created a ‘family time’ theme that particularly focused on bringing families. To emphasise this, we developed an ovenware range for cooking fresh meals and eating together at the table. We all experienced that hosting a dinner party isn’t as convenient as join in at the table. Therefore, we focused on a concept and recipes to support shoppers in preparing meals upfront, saving the time and effort.

GIVING CONSUMERS A CHOICE Magnit offered consumers a choice - in this case, the choice of deciding how much discount they wanted to receive. For example, with 50 stamps, they could take advantage of a small discount on their selected product, while with a full card of 100 stamps, they could receive a discount of up to 97% on the product they wanted.

Shoppers were encouraged to share their own recipes, with the chance of being rewarded with extra stamps


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FACTS > More than 30,000 pallets of products > Delivered by more than 800 trucks > To 34 Magnit distribution centres > 30,000 app downloads > 15,500 displays were used during the programme > To manage the volumes required, 5 factories all over the world produced the vivo ovenware.

Shoppers could use interactive in-store screens to find a recipe

DIFFERENT TYPES OF STAMPS Two different kinds of stamps were created. The small stamps required a spend of RUB 250 in Magnit’s mini-stores and pharmacies, while the big stamps (worth 2 small stamps each) were given out for each RUB 500 spent in supermarkets and cosmetic stores. In addition, a special shape and font was used in unique stamps.

DIGITALLY ENHANCED EXPERIENCE Throughout the Magnit vivo programme, an interesting addition which drove the promotion’s popularity was digital participation by customers. Inspired by the idea of recipe sharing, shoppers were encouraged to share their own favourite recipes, with the chance of being rewarded with special points or prizes. During the programme, more than 30,000 people downloaded the programme app and more than 1,000 recipes were uploaded onto the sharing page. Shoppers could use in-store touch panels to find a recipe and print it out.

SEEING THE RESULTS AT THE CHECKOUT In addition to the sheer number of uploaded recipes, shoppers were happy to save for vivo products returning regularly to ensure they could save enough stamps to complete their collection. n


LOYALTY BIG PICTURE

Loyalty heads or tails?

CAROLINE PAPADATOS WILL BE TALKING MORE ABOUT THE LOYALTY BIG PICTURE AT THE RLC 2019. FIND OUT MORE WWW.RETAILLOYALTYCONGRESS.COM


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LOYALTY IS BIG BUSINESS, WITH RETAILERS AROUND THE GLOBE SEARCHING FOR THE MAGIC FORMULA THAT TRIGGERS CONSUMERS TO FLOCK TO THEIR STORES. TO HELP RETAILERS MAKE THE RIGHT DECISIONS FOR THEIR BUSINESS AND POSITIVELY IMPACT CUSTOMER LOYALTY, LOYALTYONE HAS CONDUCTED EXTENSIVE RESEARCH FROM BOTH THE PRACTIONER AND CONSUMER LENS AND BROKEN IT DOWN IN A NEW REPORT: LOYALTY BIG PICTURE. CAROLINE PAPADATOS, SENIOR VICE PRESIDENT, LOYALTYONE GLOBAL SOLUTIONS, EXPLAINS MORE.

In the marketing world, Loyalty is a double-sided coin. On one side of the coin, it’s a powerful word that describes the emotional (and sometimes irrational) pull that a customer has to a brand. On the flip side, it’s a tactic by which customers collect points or stamps for rewards, leading to an increase in basket size or frequency of shopping. As results have shown, both are needed to shape shopper behaviour and to create happy customers. Yet loyalty stirs up fiery debates in retail boardrooms. Certainly, all companies strive for the ideal of loyal customers who resist competitive offers (especially Amazon’s or Alibaba’s), but must they invest in loyalty schemes to get there? The sheer number of programmes in the market means there’s a fight to get into a customer’s physical or digital wallet, and once there, how do you make sure your best customers get the most value? Do everyday low price or discount players also need to jump into loyalty? Can programmes pay for themselves? One thing is sure. Customer spend potential or open-to-buy is the best place to secure new revenue and steal market share. So you

invest, but how, and how much? Is customer loyalty growing, and in what sectors? Where are competitors putting their money? What are best practices to stay ahead of customer demands, and which experiences do they value? Indeed, these are the questions that we most often get in boardrooms, and they prompted LoyaltyOne to survey the industry, with both a company and a customer lens. This May, we published our report that brings together survey results from over 1,200 loyalty programme operators and thousands of consumers across five global markets, as well as additional secondary research. In this report we lay out the facts., starting with the size of the loyalty industry and customer management. Let me give you a clue, it’s BIG, $32b USD big, and as we break it down into programme types and technologies, the numbers will surprise you. For the full story, including insightful perspectives shared by your global peers, please speak to your BrandLoyalty contact person. Alternatively, you can join me at the Loyalty Big Picture Masterclass at the Retail Loyalty Congress in September. n


CASE STUDY FAMILYMART

Reversing a negative trend how to understand and retain silver shoppers.

Despite an ever-ageing population, Taiwan’s convenience stores are seeing a downturn in the number of Silver Shoppers that are visiting their stores. FamilyMart therefore turned to BrandLoyalty to help stop this downward trend and find the solutions that the consumers wanted.


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According to the Ministry of Economic Affairs, Taiwan comes second in the list of most convenience stores per capita in the world, with South Korea in first place. Counting an impressive 10,662 convenience stores (in March 2017), there is 1 convenience store for every 2,211 people in Taiwan. There are 4 chains that dominate the convenience store industry: FamilyMart, 7-11, OK-Mart and Hi-Life, one of which can be seen on almost every corner. Whereas convenience stores around the world are mostly seen as a place to quickly grab a snack or a drink on the go, in Taiwan convenience stores are much more, and play an important role in the community. They are open 24/7 and go far beyond just offering quick-and-easy refreshments, as they also act as social hubs for people to meet, hang out and pay their bills.

THE BUSINESS CHALLENGE Taiwan currently has an ageing population, and every year fewer children are born. This means that the proportion of young people in relation to the older generation is declining. Unfortunately for BrandLoyalty’s client FamilyMart, the group of customers between 40 and 50 years old has seen the most decline in recent years. If these trends continue, its problem will only become bigger in the near future, as the older population grows. So, what do convenience stores like FamilyMart need to do to reverse these negative trends and make these customers want to visit their stores more frequently again?

COOKING FOR SMALL FAMILIES IS A CHALLENGE. I WOULD LIKE TO SEE FAST COOKING VIDEOS, WITH ALL THE INGREDIENTS AND SAUCES AVAILABLE IN A ‘TODAY’S DISH PACKAGE’. Charlie (47)


CASE STUDY FAMILYMART

THE KEY CONSUMER QUESTION Despite the current abundance of data, it seems that questions like these remain difficult to answer. One reason is simply that these customers visit less frequently and spend less, resulting in less data being generated for this customer segment. Therefore, it is difficult to understand who these customers are, what they do, what they like and dislike, and what they might be missing in the stores they visit and the service that is offered to them. User Experience (UX) research or small data focuses on the ‘why’ and is ideally suited to answer these complex and strategic business questions by looking at them from the consumer perspective. For FamilyMart, BrandLoyalty used UX research to search for the ‘why’ behind the decrease in customers between 40-50 years old and what the retailer can do to make them visit and buy more at its stores once again. The first step in solving FamilyMart’s negative trend problem was to translate the business question into a consumer question. Such as ‘Did the needs of this group of customers change?’ ‘Do they get their products or services elsewhere? Why?’ and ‘What triggered the change in behaviour and possibly motivation?’

THE CONSUMER ANSWER The BrandLoyalty UX team researched the behaviour and motivations of several previous and current FamilyMart customers through our innovative ‘context chat’ method. BrandLoyalty identified 5 different motivational types that visit convenience stores. Each of these motivational types was given a short description, pinpointing drivers in their decisions and indicating the services and products that they used the most.

LITTLE PLEASURES LILY/ Lily enjoys checking out new snacks and drinks at FamilyMart, to relieve the stress from her busy day-today routine. Although she does not always buy them, Lily enjoys the little surprises these exciting new products bring her.


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RECHARGE ROSA/ Rosa has a very busy life, therefore in between work and meetings she enjoys her relaxing moments in FamilyMart. With a snack or a drink, alone or with friends, it gives her a meaningful moment to recharge.

COST PERFORMANCE MEANINGFUL MIMI/ CINDY/

BASIC NEEDS BORIS/

Cindy always likes to compare prices and find discounts. She wants to be rewarded for shopping and makes the most out of each dollar. She usually favours stores for their attractive promotions or offers. Calculating or on impulse, she bases her shopping decisions on the best deal around.

Boris is a frequent visitor to FamilyMart. He relies on its various products and services: buying food, picking up packages and even paying taxes to fulfil his basic needs instantly and efficiently. He does not really prefer one convenience store over the other as long as it is close and he can get things done efficiently. Therefore, reliability and convenience are very important to him.

Mimi is very conscious of the world around her and wants the best for her and her family. She is very aware and knows or wants to check products and ingredients for specific additives. From 1979 onwards, Taiwan has had over 160 food scandals, from tainted oil to plasticisers, so she is still always on high alert. She doesn’t compromise on health and quality, even if it requires more effort or money. In her busy lifestyle, being heathy is its own reward.


CASE STUDY FAMILYMART

EVEN WITH SIMPLE RICE BALLS, IF YOU CHECK THE DESCRIPTION ON THE BACK OF THE PACKAGE, THEY CONTAIN MANY ADDED INGREDIENTS THAT I DO NOT UNDERSTAND. Marie (42)

THE BUSINESS STRATEGY The final step was to turn FamilyMart’s business challenge into a new business strategy. For each of the five different motivational types, BrandLoyalty made recommendations in three directions: products and services, UX and communication, and loyalty. For FamilyMart, the fifth motivational type – Meaningful Mimi – was the most important one to address, because she represented the motivations of most of its 40 to 50-year-old shoppers. The new generation of 40 to 50-year-olds will be more tech-savvy and open to trying innovative services and solutions that optimise their lifestyles. Convenience will remain important, but there will be more emphasis on product value, healthy living and social responsibility. Daring to focus on creating more meaning in its products, services, communication and loyalty offerings will allow FamilyMart to appeal to this group and differentiate itself from competitors. We therefore made the following recommendations to FamilyMart: 1. Products and services: Help customers make healthy choices and support their lifestyles. 2. UX and communication: Actively contribute to the local community and focus on togetherness. 3. Loyalty: Reward loyalty in a meaningful way, by focusing on education, the environment and social awareness. n


T HE EXPERTS ’ C H O ICE F O R CENTURIES

Spiegelau is a brand within the BrandLoyalty portfolio. Glassware shown is part of the Capri range.

S INCE 152 1

Spiegelau has been producing glass products in Germany for nearly 500 years, making it one of the oldest consumer brands in the world. The brand combines traditional craftsmanship with innovative technologies. Spiegelau specialises in high-quality and elegant crystal glasses for the most demanding sommeliers as well as consumers, providing a perfect balance between form and function. Its glasses are developed to perfect the wine’s bouquet, taste, balance and finish.


CONSUMER INSIGHTS


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CAN’T WAIT TO OPTIMISE YOUR LOYALTY PROGRAMME? THE ANALYTICAL FRAMEWORK GIVES YOU ACTIONABLE INSIGHTS WITHIN ONE WEEK If you’ve ever wondered how your loyalty programme is doing, you can now analyse it – and adjust it if necessary – while it’s actually running. BrandLoyalty’s new Analytical Framework can process transactional data within 2 days and provide a meaningful analysis within a week. Its speedy turnaround is designed to put you in control of your programme so that you can maximise its impact – and your ROI.

DISCOVER MORE ABOUT OPTIMISING YOUR LOYALTY PROGRAMME AT THE RLC 2019. VISIT WWW.RETAILLOYALTYCONGRESS.COM.


CONSUMER INSIGHTS

NEW. FAST. VERSATILE.

W

e developed the Analytical Framework to enable us to speed up our data analysis. This used to take up to 6 weeks, which often meant that programme managers weren’t able to be reactive and change things if

needed. So we worked together with our sister company Precima to refine a methodology for offering standard analyses, and launched the Analytical Framework in May 2018. It is able to process over 300m lines of transactional data an hour, is fully automated, scalable and safe. It now enables us to funnel all sorts of data inputs into a consistent format, thereby enabling quick analysis and cross-programme comparisons. In a competitive market, it means we can be more creative and data-driven in how we influence consumer behaviour. PAST, PRESENT AND FUTURE Our vision was of a tool that would allow us to quickly and easily analyse

In today’s fast-paced world, it’s frustrating to have to wait weeks or even months after the end of a loyalty programme to find out where and how it’s performed best. By that stage, you can’t adjust it, optimise it or change how it works in any way. Yet you might already have had to sign your name to a follow-up programme for which the preparations are rapidly in full swing. That’s why we created the Analytical Framework: a powerful tool that allows us to analyse and share data with the retailer while the programme’s still running.

transactional data before, during and after the actual loyalty programme. For

CHRISTINA DANIELS, DATA

Another big advantage over traditional number-crunching is that the data is

SOLUTIONS MANAGER AND

presented very visually instead of in endless rows of figures. This makes it much

BLAF’S PRODUCT OWNER,

easier to understand and act on. The Analytical Framework visualises programme

TELLS US MORE ABOUT IT.

impact by customer segments, such as member vs. non-member; digital vs paper;

instance, by running it on lots of historical data, we knew we could get to understand a retailer’s customers better even before we started. It’s been quite an eye-opener: we could immediately see what worked and didn’t work with particular customer segments, or set programme mechanics to align with a retailer’s KPIs and goals, so we’ve been able to design our programmes in a more targetted way. The Analytical Framework has also allowed us to adjust programmes that are already running – such as by offering bonus points to certain customers or on selected supplier-funded items – to optimise uptake. And of course, the new insights we gain during each programme and across all the programmes we run are enabling us to establish what will work in the future. TAILOR-MADE ANALYSES Depending on preferences, each analysis can be tailored or specified to shopper segments, regions, banners, individual stores, categories, SKUs, and individual shoppers. You can build in your own segmentation criteria too, or just get started with our pre-set value segments based on multidimensional value segmentation combined with our benchmarks for programmes all over the world. What’s really helpful is that we can validate the data with the retailer easily because we have exactly the same view of it. This gives everyone more confidence, which means we can quickly make decisions based on accurate knowledge. PICTURE THE DATA

different spend deciles; or as defined by the retailer. We can plug those in right away, and the retailer can view their most valuable customers and see how the programme has affected them.


69

AUTOMATED, SCALABLE AND SAFE

what you’d expect, but the evidence is before your eyes. So then you

Privacy and data security are rightly crucial factors these days.

learn not to over-index on those lower-value customers.

That’s why we built The Analytical Framework with privacy in mind, complying with legislation such as GDPR in Europe

CUSTOMER-FOCUSED INNOVATION

and SOX in the US. It’s of paramount importance to us

The Analytical Framework is proving a great source of best

to ensure that customers’ data is safe.

practices across the world because it is

It’s also worth bearing in mind that

able to turn each retailer’s individual

The Analytical Framework is a fully

data inputs into a standardised, easily

automated process, unlike a manual process which is lengthy and prone to user error. Analysing a programme with The Analytical Framework therefore saves the whole team a lot of valuable time

and

effort,

while

protecting

customers at the same time. DIVE RIGHT IN We can even filter by aspects such as

viewable and understandable output.

“Customers should be at the centre of every decision”

This is providing us with insights that then help us to develop innovative programmes based around customers’ needs, desires and shopping preferences. From

2016

to

2018,

we

manually

analysed 150 million unique customers, while in the first 6 months of using The Analytical Framework we already

redeemer

surpassed this total. The Analytical

status, store type and sales decile, and are

Framework has now been up and

stamp

collection

method,

running for a year, during which time

able to insert additional filters as needed. For example, you could want to check how the programme is

we’ve analysed more than 200 million unique customers,

affecting the top 20% or 30% of customers. With a high-value

5.3 billion transactions, 15 billion purchased products and

programme, you might notice the proportion of redeemers jumping

50 programmes, and we are excited to see what the future will

to a much higher percentage. And you can clearly see if, for

bring. The momentum is continuing, and we’re looking forward to

instance, the dollars spent on a discount programme actually aren’t

helping more retailers discover the advantages of this innovative

influencing the bottom 30% of customers. That’s not necessarily

new tool. n

BE FULLY IN CONTROL BEFORE, DURING AND AFTER THE PROGRAMME The Analytical Framework continuously provides new predictions and insights while the programme is running:

> > > >

Big data analysis within 3 days Weekly updates Automated, scalable and safe Can be tailored to: - Shopper segments - Regions - Banners - Individual stores - Categories - SKUs - Individual shoppers


BRANDLOYALTY INSIGHT

SPOTLIGHT ON


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WITH MORE THAN 20 OFFICES ACROSS THE GLOBE, BRANDLOYALTY HAS ITS OWN UNIQUE INTERNATIONAL CULTURE. IN THIS EDITION, HEARTS & WALLETS SHINES A SPOTLIGHT ONTO OUR TAIWAN OFFICE, SITED IN ONE OF THE NEWEST BUILDINGS IN THE HEART OF TAIPEI’S BUSINESS DISTRICT: THE CATHAY LANDMARK.


BRANDLOYALTY INSIGHT

THE OFFICE After years of preparation, BrandLoyalty established its official branch in Taiwan in November 2017. Situated on the 12th floor of the Cathay Landmark, the office enjoys spectacular views of Taipei and looks onto one of the tallest buildings in the world, Taipei 101. If the sun is shining, you will often see the reflection of the beautiful lake, and as the sun goes down, the orange rays bounce off the 101-floor building, creating a mysterious and magical atmosphere. The Taipei office is continuing to grow, with six BrandLoyalty colleagues now working in this fascinating part of the world.

TAIWAN’S RETAIL SCENE If Taiwan had a national pastime, shopping would be it. Cities are filled with shopping districts, and in some parts of Taipei it is hard to know where one shopping district ends and the next one begins. Taipei is a shopper’s paradise, with high-end department stores like Shin Kong Mitsukoshi, luxury shopping malls such as Taipei 101 Mall, and the infamous night markets where the locals go to eat their favourite foods and acquire the latest trends.

THE TAIWANESE ARE VERY INTELLIGENT AND HAVE SOME OF THE WORLD’S BEST MATHS SCORES. TAIWAN IS A HIGH-IQ AREA OF THE WORLD.

Taiwan is becoming increasingly competitive too. Chain operators such as PX Mart, Wellcome, Carrefour, Costco, Family Mart and 7-Eleven continue to dominate Taiwan’s food retail market.

CONVENIENCE STORE CULTURE Convenience stores such as 7-Eleven and FamilyMart are everywhere: they are open all night and more than just a place to buy a drink or a quick snack. Convenience stores can also be used to call a taxi, send a parcel, pay your bills or print documents. Smallformat retail outlets represent the fastest growing channel in Taiwan. Their focus on convenience, ready-to-eat foods, service and assortment appeal to the new generation of shoppers, thereby explaining their success.


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IF YOU FIND YOURSELF IN TAIPEI… Why not take a walk down the 1.5km-long ‘skywalk’ in the Xinyi District? A fiveminute stroll will lead you to all the fivestar hotels, Taipei 101, and a high-end shopping mall, just around the corner from BrandLoyalty’s office!

BRANDLOYATY IN TAIWAN BrandLoyalty is becoming well established in Taiwan, with loyalty programmes being run at some of the largest retailers in the country: PX Mart, RT Mart and convenience store chain FamilyMart.


Credits WE WOULD LIKE TO THANK THE FOLLOWING PEOPLE FOR THEIR CONTRIBUTIONS TO THIS EDITION OF HEARTS & WALLETS:

ABOUT THIS PUBLICATION Hearts & Wallets is a publication of Brand Loyalty International B.V. Copyright Š2019 Brand Loyalty International BV. Nothing from this publication may be copied, transmitted and/or made public by means of printing, photocopying, transmitting digitalised data files or in any other way whatsoever without prior written permission from the publisher. After specific permission from the publisher, articles from this issue may be republished and/or reproduced, provided that the source is mentioned. The publishers have done their utmost to identify all persons or organisations who own the rights to the visual images used. Should a person or organisation be able to prove that their permission was required for any images we have used, we hereby ask them to contact us as soon as possible.

Editor Kirsty Shaw

art Direction & design Ivo Spikmans, Renate de Vries, Richard van Zon, Sanne Huizinga

illustrations Ivo Spikmans

Photography/images Anouk Bosman, Penguin Random House, NoPoint Studios, The Walt Disney Company, www.eatalyworld.it, Shutterstock, Offset, Alamy

Editorial Cathy Scott, Kirsty Shaw, KK Wong, Koen van Dijck, Martijn Verbruggen

Printing Paul van Oosten, Max Schelbergen Albe De Coker

This publication has been developed with the greatest of care. However, the authors and publisher disclaim any responsibility in the case that any information it contains may have been reproduced incompletely or inaccurately. Should any such omissions or inaccuracies come to light, the authors and publisher will be pleased to receive suggestions for amendments.


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RoyalWars Star VKBis isaalicense brand within withinthe theBrandLoyalty BrandLoyaltyportfolio. portfolio.

Royal VKB. Simply Dutch.


Profile for BrandLoyalty

Hearts & Wallets - September 2019, Edition 9  

Hearts & Wallets, the official magazine of BrandLoyalty

Hearts & Wallets - September 2019, Edition 9  

Hearts & Wallets, the official magazine of BrandLoyalty

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