- AT&T - a leading USA based Telco
- Coca-Cola - their new direct to customer strategies
- Amtrack - a leading US rail network
- The UK’s Nectar loyalty programme (Nectar is our sister company).
Tuesday, January 18, 2011
February 10th - We present international mobile marketing case studies at Auckland's AmCham
Monday, January 17, 2011
Rick Ferguson leaves Colloquy and joins our family

Rick picks up a role as thought leader for our group. If you've been to any of the key loyalty conferences in the Asia region or further afield including the USA, Europe and Canada - you'll likely have heard Rick speak. You've probably also read his analysis of our loyalty industry in the weightier publications such as the Wall Street Journal, Forbes, Fast Company and others where he is quoted as a loyalty marketing expert.
There's two major trends we've seen developing in our market that Rick has recognised and analysed on the global stage.
The first is the struggle that travel loyalty programs had in retaining both members and their engagement during the recession (while the opposite has been proving true in other industries, especially retail) . We saw Airline Frequent Flyer and Hotel Frequent Stayer Programs, along with the capital intensive industries they represent, struggle in 2008 and 2009 (and even into 2010). Quoted in AdWeek , Rick commented that “The disparity between travel and the other two industries featured in our latest research mirrors the shift in consumer spending away from the travel sector, in which both business and leisure travel have seen cutbacks, and toward retail categories, particularly in the everyday spend categories of grocery and fuel.”
Rick has also contributed some excellent analysis on another key trend that's evolving and beginning to mature in our market : the targeting and engagement of brand advocates through Word of Mouth. We define Word of Mouth as the output from a brand advocate. It's the opposite of Amway. Customers will recommend a product or service to friends and family not because they get a reward (or more sales as they would in Amway) but because they believe it's the best product or service. (The Net Promoter Score is a good way of determining who is a likely WOM candidate). Rick commented in Adweek that marketers “should find brand champions buried within their program memberships, and build relationships that reward them for positive word-of-mouth activity.”
Rick's thought leadership and deep experience is going to be let loose on a (now) very wide range of our metrics, data, experience and learnings.
Thursday, December 16, 2010
Code-On-Pack loyalty programme success for Coke and P&G
New Zealanders have long been keen collectors of loyalty points for everything from their retail shopping to credit card use and airline flights. The success of these programmes has seen them quickly added to the arsenal of FMCG marketing professionals. But it’s not just entrepreneurial grocery brands at the bleeding edge of the new wave that are adopting loyalty programmes; the core of the FMCG market has recognised their value, with two multinational companies, Coca-Cola and Procter & Gamble, leading the charge. Both are our clients.
From Flat to Fizzing
Many soft-drink brands are caught in the feast-or famine cycle of traditional promotion marketing. And the indiscriminate impact of these promotions leads to unpredictable market share lifts and losses across key segments. In both Britain and the US, Coca-Cola found itself in a cycle of price promotions with no increase in sales revenue or customer loyalty. What’s more, those programmes became increasingly expensive to plan and execute.
In the UK, Coke dealt to this with one of the best customer loyalty programmes of its type. The aim was to keep customers engaged between promotions to keep sales buoyed. We were able to leverage the Coca-Cola brand equity along with a large customer database to secure some enticing reward offers. Its customer loyalty programme, Coke Zone, is a real-world equivalent of click-throughs.
Unique codes are printed inside the labels of all Coke bottles and multi-packs. Consumers enter these online or via text and, in doing so, create a continuous transaction history and picture of who they are. Coke can then tailor its marketing and offers accordingly. The result was increased volume year-over-year, with loyalty communication offers rising to an open rate of 49% and a click-through rate of 71%.
Coke has redefined how a loyalty programme website should work. So many consumers are now entering codes that Coke Zone is the most visited FMCG website in the UK. It has eight times more visitors than Pepsi and they spend ten times longer on the Coke site than its rival’s portal.

Redefining Online Rewards
Coca-Cola faced a similar situation in the US. Its existing points-based programme was expensive and lacked a sound rewards and communications strategy. The My Coke Rewards ‘build-it-and they- will come’ approach to consumer engagement was more than just a bad assumption—its old rewards strategy was not financially sustainable.
The programme was reworked and its re-energized version saw a 16.8% increase in code entry online. Logins to mycokerewards.com increased their open rate by more than 220%, indicating multiple logins, and the rise in code-entries-per member reached 108% over the control group.
A more refined approach
For another of our clients, Proctor & Gamble in the USA, refining its already effective customer-loyalty strategy delivered better results. The manufacturers of Pampers nappies, Proctor & Gamble had tested loyalty marketing and knew the strategy would work. Again, customers went online to enter unique codes printed inside each Pampers pack. The challenge was to refine the strategy and improve the programme. Using data already gathered allowed P&G to intervene at vulnerable switch points where a customer might be tempted to move to a competitor’s brand, and also at key points in their relationship with the Pampers brand. Because Pampers products are only relevant to consumers for a short period of time, the aim was to maximise that timeframe and build a relationship with parents. Carlson’s solution took the best of what airlines and credit card companies had already learned and applied it to the technology platform, consumer experience, rewards, partners, segmentation and trigger communications. The outcome has been improved results for Pampers on all fronts. Active participation among consumers has increased by 20%. The efficiency of the programme’s rewards budget improved by 10 percent and the overall ROI rose by 12.5%.
Our results for our CPG clients:
- 21% increase in share amongst participating consumers
- 12.5% volume increase year on year
- Revenues from strategic partnerships
1 COMMENTS:
- Phil Hawkins said...
So the question is, are product-specific programs such as Coke Zone sustainable in this neck of the woods? I can only presume that lack of scale has prevented Coke undertaking anything similar to date in Australia or New Zealand? There are a few eyes in Australia on the recently launched
Nescafe Cup of Rewards program. It will be interesting to see if the average household's instant coffee consumption is enough to garner interest in the program, discussed further here.- DECEMBER 16, 2010 4:13 PM

Tuesday, November 30, 2010
Air New Zealand's Airpoints innovations (again)

- Flying on Air New Zealand flights had always gave customers Airpoints Dollars which could be redeemed for..
- ...more Air New Zealand flights.
- BNZ had long issued the GlobalPlus credit card on which customers earned even more Airpoints Dollars. ANZ (our client), Kiwibank and American Express have all issued new Airpoints Dollars credit cards over the last year.
- Then recently - Air New Zealand enabled Fly Buys customers too to convert their Fly Buys points to Air New Zealand flights.
- The really interesting piece has been the issuing of a new Airpoints membership card last month which is co-branded with Fly Buys by Air New Zealand. With this Airpoints card customers can now earn even more Airpoints Dollars (earned instead of Fly Buys points) at any of the Fly Buys merchants. This is a significant innovation and not one we've seen elsewhere. It's a collaborative local solution which is in contrast to the development of Qantas's programme in Australia.
- The unexpected piece has been last week's release of an online Airpoints gift store. Airpoints Dollars can be used to buy goods and gifts from a $50 digital camera up to a $1,670 high end camera. Some goods are delivered in the same fashion as Fly Buys such as the new iPod Nano which must be picked up in store from Noel Leeming.
Friday, November 5, 2010
New generation fuel rewards - the Smart new orange card
Monday, October 11, 2010
3,000 Foursquare users in New Zealand (maybe).

- 1% of people post lots a frequently
- 9% of people comment on these posts
- 90% of people do nothing other than read them (and maybe in Facebook 'like" things)

Tuesday, August 31, 2010
New Zealand credit card loyalty programmes rated by Cannex in their inaugural study

- General rewards programmes (that give you gift cards, merchandise. experiences, trophies and the like)
- Flight rewards programmes - all of which give you Air New Zealand's Airpoints Dollars (they appear to have missed ANZ Bank's Qantas offering)
- Those who spend $24,000 per annum on their credit cards
- Those who spend $60,000 per annum
- General Rewards - ANZ's World Visa programme and Westpac's hotpoints programme [Full disclosure - Carlson Marketing deliver these programmes]
- Flight Rewards - American Express's Air New Zealand Airpoints programme and BNZ's Global Plus programme.
The Sunday Start Times article recommends to card carrying customers that "Rewards should not change your spending habits, even if they change the way you pay". Changing the way you pay is precisely what rewards programmes are designed to do.
