Badgeville Summit, Engage 2012 - Presentation : Gamifying Retail Loyalty Strategies with America’s...

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.

Thank You

Marc Parrishmparrish@book.com