2011-COLLOQUY-Cross-Cultural-II-White-Paper-2

The Rules of EngagementLoyalty in the U.S. and Canada

How to win the hearts and minds of U.S. and Canadian consumers in an age of low engagement and economic unrest

Kelly Hlavinka Managing Partner, COLLOQUYJim Sullivan Partner, COLLOQUY

Part 2 in a series drawn from the 2011 COLLOQUY Cross-Cultural Loyalty Study

DECEMBER 2011

sponsored by

COLLOQUY.COM | COLLOQUYtalk | 12.11 | PAGE 1

Introduction

In an increasingly tough competitive environment, it’s not a reach to say that U.S. and Canadiancompanies are at war to win their share of customers. In the last decade, most consumer-orientedfirms in the U.S. and Canada have made it a priority to sign up as many of their customers aspossible in a slew of rewards programs that now count well over two billion memberships. Butthe truth is that although today’s consumers have become rewards-program members in recordnumbers, a large portion of them reveal a surprising apathy about those programs and thebrands they represent. Why? Consumers say it’s because companies are failing to engage themwith relevant and motivating marketing beyond price incentives. In strategic terms, businessesappear to be winning the battle for identifying and targeting their customers, but they are losingthe war for customers’ hearts and minds.

While most customers are enticed by deals, discounts and cash-back rewards, the overuse ofsuch tactics has bought transactional frequency at the expense of unique customer experiencesthat forge long-term commitment to brands. Hard-dollar deals can drive short-term sales bumps,but when all combatants are using the same tactics, it becomes an expensive and draining war ofattrition. The real firepower is in those strong bonds of emotional loyalty, which drive rewards-program ROI and transform it into a vehicle for sustainable company-wide growth.

The battle is joined, and to define the rules of engagement in today’s global economy, wecommissioned the 2011 COLLOQUY Cross-Cultural Loyalty Study, the first of its kind to analyzeattitudes about loyalty across six of the largest, most important global economies. The Studyfocuses on three emerging markets (Brazil, China and India) and three developed economies(Australia, Canada and the U.S.).

This paper analyzes the facts and challenges in the U.S. and Canada, comparing consumersentiments with data from the other countries in the 2011 COLLOQUY Cross-Cultural LoyaltyStudy, while also highlighting homeland trends from our 2007 and 2009 Segment Talk ResearchStudies. Deploying our insights will help you secure the competitive opportunity of the comingdecade: Engaging your rewards-program members to move from participation to fully engagedemotional loyalty. This is the competitive high ground, and it will be taken by those who movenow with speed and confidence.


The 2011 COLLOQUY Cross-Cultural Loyalty Study

examines consumer attitudes and perceptions about

loyalty in three developed economies: Canada, Australia

and the U.S.; and three emerging economies: Brazil,

China and India. The first of its kind, this study uncovers

profound differences in these consumer environments

and has clear implications about how practitioners

should think about loyalty. Because of the wide-ranging

scope of the research, the material is being made

available in three formats:

• “The Global Loyalty Compass” compares developed

and emerging markets.

• This paper, “The Rules of Engagement: Loyalty in the

U.S. and Canada,” examines loyalty challenges and

opportunities in these two countries and provides

trends data related to our previous research on con-

sumer attitudes and perceptions about loyalty.

• More detailed coverage of loyalty in emerging

countries, including papers and features focusing on

India, Brazil, China and Australia.


I: The Target: A Disconnect in Program Participation

The research reveals that both Canadian and U.S. customers display a disconnect with brandmarketing and rewards-program engagement in general, despite higher levels of participation.

On the one hand, we see a significant increase in the proportion of Americans participating inrewards programs (defined in our survey as programs “that offer points, airlines miles, giftcertificates, discounts off purchases, or that require you to keep, scan or make purchases with acard”). In the past four years, for example, the number of Americans participating in at least oneprogram has grown from 57% to 74%. And in Canada, roughly nine out of ten households haveparticipated in at least one program since 2007, as shown in Exhibit 1.

In the U.S., program participation levels have been driven by seniors. Fully 81% of U.S. seniorsnow participate in rewards programs, up from 54% in 2007. That’s a significantly higherparticipation rate over 2009’s 61% (see Exhibit 2).

57%

68%

74%

86%

94%90%

U.S. U.S. U.S. Canada Canada Canada2007 2009 2011 2007 2009 2011

Exhibit 1Percentage Who Participate in LoyaltyPrograms in the U.S. and in Canada

Participation has steadily increased in the U.S.but has remained stable in Canada

Source: 2011 COLLOQUY Cross-Cultural Loyalty Study, U.S. andCanadian Results and 2007, 2009 COLLOQUY LoyaltyDemographics Studies

• Q: Do you currently belong to any rewards programs? Yes or No.

• Results indicate proportion who selected “yes.” • Bold border indicates significant difference.• U.S. n = 2,151; Canada n = 2,199

94%90% 91%

94%

Canada2009

GeneralPopulation

Canada2011

GeneralPopulation

Canada2009

SeniorsCanada

2011

Seniors

Source: 2011 COLLOQUY Cross-Cultural Loyalty Study, U.S. and Canadian Results and 2009 Loyalty Demographics Study

• Q: Do you currently belong to any rewards programs? Yes or No.• Results indicate proportion who selected “yes.” • Bold border indicates significant difference.• U.S. n = 2,210; Canada n = 2,199

68%

74%

61%

81%

U.S.2009

GeneralPopulation

U.S.2011

GeneralPopulation

U.S2009

SeniorsU.S2011

Seniors

Exhibit 2aGeneral Population vs. Seniors’ Loyalty Program Participation, U.S.

Growth in general population participation is due to seniors’ increased involvement in loyalty programs in the U.S.

Exhibit 2bGeneral Population vs. Seniors’ Loyalty Program Participation, Canada

Participation remains stable with a slight increase among seniors in Canada.


However, a surprising disconnect emerges when we contrast these record numbers of programsignups with what consumers say about their experiences once they’ve joined. Here, they indicate atroubling cynicism about their favorite brands. Asked whether “it pays to be loyal to your favoritebrands,” only 12% of U.S. consumers and 10% of Canadians “strongly agreed.”

Even more disturbing, the value propositions for most loyalty programs don’t seem to be grabbingconsumer attention. In fact, only 17% of U.S. respondents and just 12% of Canadian respondents saidthat loyalty programs were “very influential” in their decisions about where they made purchases.

Why are these findings especially worrisome? They contrast sharply with feedback from emergingeconomies, where fewer consumers participate in rewards programs but those who do are far moreexcited and engaged. For example, an average of 29% of rewards-program members in China, Indiaand Brazil say that “it pays to be loyal to your favorite brands”—nearly three times the rate of those inthe U.S. and Canada. Similarly, shoppers in emerging countries are twice as likely to say the rewardsprograms influence which companies they do business with. Clearly, at this stage of maturity at home,there’s something missing in the loyalty formula.

Program proliferation and the increase in memberships are being driven by consumers’ calculatingdesire for hard benefits and a lack of perceived differentiation among them. Unfortunately, it is notbacked by any real emotional connection or expectation of something more from the brands thatoperate rewards programs.

In fact, according to the 2011 COLLOQUY Loyalty Census, the average American household belongs to18.5 programs yet is active in only about eight. In today’s economy, members are drawn to hardbenefits, such as price reductions or anything with a cash equivalent, but once signed up they don’tfind enough relevance or difference to keep them engaged.

Only 17% of U.S. respondents and

just 12% of Canadian respondents say

loyalty programs are “very influential”

in their purchasing decisions.


II: Report from the Front: A Call for a Strategy Change The 2011 COLLOQUY Cross-Cultural Loyalty Study is a wake-up call for marketers in the U.S. andCanada. The loyalty market here has matured, and members are no longer motivated by the originalneeds that prompted them to participate—needs that were met long ago. Something new is needed.Two critical marketing issues provide the evidence that members are complying with but notcommitted to the loyalty strategies employed by most companies:

1. Member Disengagement: Virtually every measured form of interaction with rewards commu -nication is down compared to 2009. That even includes “new school” channels, such asswapping brand information via social networking sites and learning about program detailsvia cell phone, as seen in Exhibit 3.

This level of disengagement is not universal. In Brazil, India and China, for example, consumersreported twice the level of interaction and engagement with marketing communications andrewards-program messages, on average.

2. Communication Irrelevance: Only 31% of Americans and 22% of Canadians find rewards-programcommunications “extremely relevant.” Trend data from the 2011 COLLOQUY Cross-Cultural LoyaltyStudy and the 2009 COLLOQUY Loyalty Marketing Census shows that affluent and youngerconsumers, in particular, are giving program communications significantly lower relevance scoresthan in 2009, as seen in Exhibit 4.

When we compare these findings to those of consumers in the emerging economies, we seethat their relevance assessments for marketing and loyalty communications are double thoseof the U.S. and Canada. When increasing numbers of target customers are tuning outmessages that they see as less relevant, obviously something needs to change.

Exhibit 3Engagement with Loyalty Programs

Decline in overall engagement with loyaltycommunications

Top 3 Box “Extremely Active”

Source: 2011 COLLOQUY Cross-Cultural Loyalty Study, U.S. andCanadian Results and 2009 Loyalty Demographics Study

• Q: How active are you in each of the following? Please use a scalefrom 1 to 10, where 1 means “Not at all active” and 10 means“Extremely active.” Other options included “Not sure” and “Neverdone it before.”• Swapping information with other members via social networkingsites.

• Reading or responding to reward program offers you receive viacell phone/ text messaging.

• Logging into websites to get information about your rewardsprogram.

• Results indicate Top 3 Box “Extremely active.” • Bold border indicates significant difference.• U.S. n = 1,651; Canada n = 1,699

44%

33%

30%

26%

18%

9%8%

18%

8% 7%4% 5%

Learning program infovia websites

Swapping program info viasocial networking sites

Reading special o�ersvia cell phone

U.S.2009

U.S.2011

Canada2009

Canada2011

U.S.2009

U.S.2011

Canada2009

Canada2011

U.S.2009

U.S.2011

Canada2009

Canada2011


32%31%

40%

36%

28%26%

25% 24%

U.S.2009

GeneralPopulation

U.S.2011

GeneralPopulation

U.S.2009

A�uentU.S.2011

A�uentU.S.

2009

YouthU.S.2011

YouthU.S.

2009

SeniorsU.S.2011

Seniors

23%22%

28%

23%22%

16%

19%

24%

Canada2009

GeneralPopulation

Canada2011

GeneralPopulation

Canada2009

A�uentCanada

2011

A�uentCanada2009

YouthCanada

2011

YouthCanada2009

SeniorsCanada

2011

Seniors

Exhibit 4aRelevance of Loyalty Communicationsin the U.S.

Perceived relevance has declined,particularly among affluent and youngerconsumers

Top 3 Box “Extremely Relevant”2009 n = 1,494; 2011 n = 818

Exhibit 4bRelevance of Loyalty Communicationsin Canada

Canadian results exhibit a downward trendsimilar to that in the U.S.

Top 3 Box “Extremely Relevant”2009 n = 1,746; 2011 n = 1,032

Source: 2011 COLLOQUY Cross-Cultural Loyalty Study, U.S. andCanadian Results

• Q: Thinking about the communications you receive fromrewards programs, how relevant are they to your needs?Please use the scale from 1 to 10, where 1 means "not at allrelevant to my needs" and 10 means "extremely relevant to myneeds.” Please select one response only.

• Results indicate proportion selecting Top 3 Box “Extremelyrelevant to my needs.”


III: Battlefield Assessment: Prepare for a Long Campaign

It’s important to study the context and surroundings of our 2011 COLLOQUY Cross-Cultural LoyaltyStudy in order to understand the forces acting on consumers that may challenge our efforts toaddress these marketing issues. We see two overarching strategic factors that favor a long-termmarketing mindset for achieving victory:

1. Bunker mentality: The economic outlook has been dashed by the global financial meltdown,lingering employment recession, and the debt-driven threat of relapse. As a result, consumersshow significant caution as they try to rebuild their balance sheets in the face of stiff economicheadwinds. This translates to an obsession with discounts at the expense of brand loyalty anda reluctance to part with cash for anything beyond the basics. In several surprising ways, thesefear-based attitudes are concentrated in younger consumers, which indicates a long, slowrecovery not only for the economy overall, but also for brand loyalty.

Only 18% of Canadian and 17% of U.S. respondents strongly agree that they are confident thattheir own or their families’ economic prospects will improve over the next ten years, as Exhibit5 shows. These figures sharply contrast with attitudes in developing nations: In Brazil, fully 71%of respondents strongly agree that their prospects will improve. That optimism is found inChina (47%) and India (34%) as well.

India34%

China47%

Brazil71%

17%

24% 24%

U.S.

GeneralPopulation A uent

GeneralPopulation A uentYouth

U.S. U.S.Seniors Youth SeniorsU.S.

18%

10%

22%

24%

Canada Canada Canada

14%

Canada

Exhibit 5Economic Outlook

Dampened economic outlook in the U.S. and Canada relative to the emergingeconomies

Top 2 Box “Strongly Agree”


• Q: Please indicate how much you agree or disagree with thefollowing statement. “I am confident that my/ my family’seconomic prospects will improve over the next ten years.”Please use the scale from 1 to 10, where 1 means “stronglydisagree” and 10 means “strongly agree.”

• Results indicate Top 2 Box proportions of those who“Strongly Agree.”

• Bold border indicates significant difference.• n = 2,251


The cautionary mentality of the “squeezed middle class” is also evident in the majority ofconsumers taking a strong stance against using credit cards to rack up debt. A minusculepercentage of U.S. and Canadian consumers—3%—say they strongly agree (Top 2 box) that it’sacceptable to use a credit card to pay for “things you can’t afford right now” (Exhibit 6). Themean scores for credit use across both nations’ general populations are barely above 3 on a 10-point scale.

Meanwhile, almost ten times that percentage of all Americans and Canadians, 28% and 27%respectively, strongly agree that they will shop around to find the best deal before making apurchase. General population means are 7 out of 10 for both countries, as seen below:

2. Uncertain Allies? With all this economic instability, perhaps it’s not surprising that majorities ofboth Americans and Canadians are wary of businesses and cautious with their money. OurStudy found that, in a choice between “Most businesses can be trusted” or “You can’t be toocareful with businesses,” 61% of Americans and 56% of Canadians chose the latter (Exhibit 7).This overall distrusting attitude was most evident in younger consumers aged 18-25, wherebarely 3 in 10 said most businesses can be trusted.

General Population A�uent SeniorsYouth

10

8

7

9

6

4

5

1

Strongly Agree

Strongly Disagree

“I will shop aroundin order to find the best bargain/deal.”

“Using a credit card to pay for things you can’t a�ord right now is okay.”

2

3

Canada

U.S.

Exhibit 6Consumers Weary of DiscretionarySpend

Consumers show a preference for bargainhunting and avoid credit purchases they can’tafford right now

Mean Scores


• Q: Please indicate how much you agree or disagree with eachof the following statements. “Using a credit card to pay forthings you can’t afford right now is okay.” Please use the scalefrom 1 to 10, where 1 means “strongly disagree” and 10 means“strongly agree.”

• Q: How well does each of the following statements describeyou when it comes to how you feel about shopping? “I willshop around in order to find the best bargain/deal.” Please usethe scale from 1 to 10, where 1 means “strongly disagree” and10 means “strongly agree.”

• Results indicate mean scores.• n = 2,251

61%

68%

53% 47%

56%49%

70%

46%

Trusts BusinessDistrusts Business

53% 44447774 %

56%4944 %

44444666%

39%

32%

47%

53%

44%

51%

30%

54%

GeneralPopulation

U.S.A!uent

U.S.Youth

U.S.Senior

U.S.

GeneralPopulation

CanadaA!uentCanada

YouthCanada

SeniorCanada

Exhibit 7Trust vs. Distrust in Business

U.S. and Canadian youth are significantly lesstrusting of business than the other segments


• Q: In the next section, you will be presented with twostatements at a time. Please select the ONE statement youagree with the most. In general, do you believe that “Mostbusinesses can be trusted” or "You can't be too careful withbusinesses.”

• Bold border indicates significant difference.• n = 2,251


Youth are also significantly and surprisingly more conservative in their attitudes toward moneyand spending. They were much more likely than those in other segments to hold the view thatmoney is “for security and better saved, not spent.” While the majority of all groups agreed thatmoney “is a tool for reaching your goals and dreams,” young Americans were twice as likely toview money as “security” than even seniors aged 60+ (Exhibit 8). Youth in Canada were fourtimes more likely to hold the same view.

General attitudes of distrust in business and economic caution in an era of slow recovery, mostacutely held by younger consumers, indicate that the best approach to win back trust and loyaltyis a long-term, comprehensive, enterprise-wide strategy.

With this in mind, marketers who want to reach younger consumers must design programs thatprovide discounts, yes, but also aspirational benefits relevant to their dreams. Strong economicheadwinds, combined with a distrust of business and underscored by caution about credit use,mean that a marketer can’t simply “freshen up” a campaign. Instead, these realities must beincorporated into the program as a fundamental relationship driver.

Exhibit 8aBeliefs about Money as a Tool forReaching Goals

Majority of Americans and Canadians view money as a tool for achieving their goals and dreams

Exhibit 8bBeliefs about Money as Security

However, youth are more likely than any other group, including seniors, to feel moneyis better saved than spent


• Q: People have different beliefs about money. Which of thefollowing statement is most true for you? Please select oneresponse only.• “Money is a tool that when used effectively will help you

reach your goals and dreams.”• “Money is security; the more you have saved the better you

are, it’s best not to spend.”• Results indicate proportion making the selection.• Bold border indicates significant difference.• n = 2,251

67%

U.S.

GeneralPopulation

74%

GeneralPopulation

Canada

75%

A�uentU.S.

A�uentCanada

84%

Youth

45%

U.S.Youth

57%

CanadaSeniors

79%

U.S.Seniors

85%

Canada

2X

4X

25%

12%

20%

5%

YouthU.S.

SeniorsU.S.

YouthCanada

SeniorsCanada


IV: Boots on the Ground: Opportunities for Practitioners

Many programs have fallen into the “best practice” trap of copying others, focusing on pragmaticvalue/discount-based rewards. This has created a commoditization of loyalty programs, whichincreasingly look alike to consumers. This creates opportunity: Programs that shore up their“relevance” offensive have the potential to differentiate themselves and outgun the competition.

You may have an expanding program membership list, but are members so engaged that they willstick with your brand for better or worse? And what will motivate them to brag about this newrelationship to their friends? For companies to win this battle for consumer hearts and minds, thereare three tactical initiatives to deploy:

1. Make messaging relevant. A minority of Canadian and U.S. loyalty members think that programcommunications are “extremely relevant.” But loyalty members do say that they see more value incommunications from loyalty programs than in general company news.

Leverage this increased loyalty communication relevance even further by using the data you arealready gathering. What do your highest-potential or highest-value customers buy? When do theybuy it? What do they redeem for? All of these are cues that consumers expect to inform theirrewards-program communications.

For even more insight, ask customers for their preferences, needs and intentions. And then act ontheir answers. For example, if a customer says that she prefers vacationing in Latin America, showher that you are listening by highlighting those destinations.

Then, of course, put the consumer fully in control. Are your opt-ins and opt-outs easy for customersto change? Are they offered by category and channel? These are table stakes, because membersacross the board are still focused on privacy issues. Just over half of Americans and Canadians saythey are strongly concerned about the privacy and protection of their personal information.

An example of relevance at work is SAS Scandinavian Airline’s EuroBonus MatchMe. The programnot only features a website that offers members suggestions for travel-award destinations basedon their current point level, it also offers potential upsell destinations they don’t quite have thepoints for, along with suggestions on how to earn what they need to get there.

2. Target unmet needs. If we explore psychologist Abraham Maslow’s “hierarchy of needs,” wediscover areas where programs can exceed current customer expectations. Maslow’s frameworkapplied to loyalty translates into a base level of “expectations,” a mid-level of “desires,” and atop level of “unrecognized needs.” (See Exhibit 9.)

Self-actualization

Esteem Needs

Social Needs

Safety Needs

Physiological Needs

Customized Program

Maslow’s Hierarchy of Needs Rewards Program Benefits

Insider Status

Recognition

Privacy and Security

Easy, No-Fuss Basics

Exhibit 9Climbing the Hierarchy of Needs

The progression of loyalty-program benefits

Source: COLLOQUY, 2011. Based on Maslow’s hierarchy of needs,published in A Theory of Human Motivation, 1943.

Programs that shore up their

“relevance” offensive have the

potential to differentiate themselves

and outgun the competiton.


When their expectations are met, customers are satisfied. When their desires are met, theybecome committed. But when their unrecognized needs are met, they become evangelists.

The problem for loyalty programs is that if a customer’s frame of reference for how theseprograms work doesn’t include anything special, over time she won’t expect anything special.Commoditization has resulted in program after program that seems to have collapsed down topoints and discounts; and even then, redemption can be a challenge. Because of blackout dates,for instance, many customers have stopped expecting to be able to redeem for plane tickets. Theyhave been disappointed and have learned not to expect much. By contrast, in emerging economiessuch as Brazil, China and India, expectations for loyalty programs are higher because excitementis higher. They haven’t been let down yet.

Americans and Canadians have had their basic loyalty needs met for 30 years or more. Consumersunderstand loyalty programs now—they grasp the issues of points collection and points-dilutionprotection and privacy. These “met” needs are at the bottom of the pyramid.

To address the higher needs, consider what your program is doing to engender a sense of “insiderstatus” for customers. Are you inviting customers to help design how rewards and benefits aretailored to their needs? That is the new horizon for programs in the U.S. and Canada.

Consumer-to-consumer dialogue and company-to-consumer-to-consumer trialogue both presentnew opportunities. Examples include community forums, such as the one created by Lego, wherefans of Lego Mindstorms share photos and step-by-step processes of their projects. At theStarbucks website, customers trade product ideas, some of which are put into development bythe company. Such community forums have become authoritative go-to places for customersto engage with each other and the company. And with that level of engagement, emotionalloyalty grows.

3. Focus on execution. Operationalizing these solutions can be the big checkpoint holdup on theroad to relevancy and winning emotional loyalty. The optimal solution extends beyond loyaltymarketing and involves using the data to transform the organization from being product- orchannel-focused to being a truly customer-centric organization.

Flawless execution must begin with ease of engagement: When asked why they actually joineda program, 64% of U.S. customers and 57% of Canadians said it was because the program “makesit easy to redeem for a reward when you have earned it.” Redemption was ranked number onefor both the U.S. and Canada, with programs being “easy to understand” a close second. Thatwas cited as a reason to join a program by 54% of U.S. members and 48% of Canadians.

Implementing a “keep it simple” solution will involve many different teams within an organi -zation, including call centers, IT, sales and inventory—and those teams can be linked togethervia insights derived from customer data. For example, financial institutions typically managerewards on a credit card independently from, say, the value propositions for a debit card orother initiatives for retail banking products. That structure may work for the company, but itfrustrates customers.

When their expectations are

met, customers are satisfied.

When their desires are met, they

become committed. But when

their unrecognized needs are met,

they become evangelists.


Instead, a company’s attentiveness to transactional data, behavioral data and collected customerpreference creates customer-specific insights that can be leveraged to develop enterprise-widecustomer strategies. These insights can inform areas as wide-ranging as merchandising, pricing,new product/service development, operations, marketing, customer experience, store layout/design and store locations.

Operationalizing solutions and pushing them into the organization extends the vision beyondjust loyalty marketing, crafting the best experience for customers. One example is SearsHoldings Corporation, whose journey earned it the award of Master of Enterprise Loyalty in the2011 COLLOQUY Loyalty Awards. As the U.S.’s fourth-largest retailer, Sears’ main goal was notcustomer acquisition. Instead, it focused on retaining that base and connecting with customersin a meaningful way. Its Shop Your Way Rewards program initiated an enterprise-wide shiftthat influenced marketing, sales and operations at its many brands, which include not justSears but Kmart and Lands’ End. Customers are rewarded not just for buying things, but forreviewing products and performing other online activities. They can earn without having topresent their card, and they can redeem their points instantly at the time of purchase. Searsaddressed ease of use and enterprise-wide execution in one fell swoop.

In Conclusion: Step Up Customer Engagement

The war for winning customer loyalty is ongoing, but the rules of engagement have changed.Today’s loyalty marketers will need to ramp up relevancy, stockpile soft benefits, map out a clearvalue proposition and keep the entire operation simple and easy to understand.

Consumers in the U.S. and Canada are looking for engagement, signing up for programs andsearching for reasons to connect with brands beyond sales and deals. But to keep them involved,marketers need to maintain a clear line of sight to how these customers want to be reached andwhat they want to hear. Mastering these details will maximize your ability to win both the battleand the war.

Today’s loyalty marketers will

need to ramp up relevancy, stockpile

soft benefits, map out a clear

value proposition and keep the entire

operation simple and easy to

understand.

Appendix:

Methodology

The 2011 COLLOQUY Cross-Cultural Loyalty Study was fielded via an online survey during July 2011.Approximately 1,000 responses were collected in both the U.S. and Canada, while a minimum of 500responses were collected in Australia, China, India and Brazil. The online survey was run in English inall countries, but also translated to French in Canada, Simplified Chinese in China, and Portuguese inBrazil.

Respondents in the emerging economies of China, India and Brazil were further classified bysocioeconomic class A, B and C. COLLOQUY collected a minimum of 300 responses for SEC A/B and200 responses for SEC C in each of the emerging countries studied.

Demographic Segment U.S. Sample Canadian Sample

General Population: Ages 18+ n = 1100 n = 1151

Affluent: $125k Household Income n = 104 n = 138

Youth: Male and Female, Ages 18-25 n = 127 n = 143

Seniors: Male and Female, Ages 60+ n = 262 n = 267



As COLLOQUY Managing Partner, Kelly Hlavinka has helped define and carryout COLLOQUY’s mission as the voice of the loyalty industry since 1996.Drawing on her 20 years as a loyalty specialist, Kelly develops articles, whitepapers and educational initiatives that illuminate the many ways to unlock theasset of customer-specific data.

The Authors

As COLLOQUY Partner, Jim Sullivan directs the advancement of EnterpriseLoyalty at COLLOQUY, an endeavor guided by his almost 30 years of managingin marketing, strategic planning, business development, innovation and commu -nications. Jim assists with COLLOQUY’s loyalty workshops, seminars andconferences, and serves as an academic liaison for colleges, universities and other

institutions researching Enterprise Loyalty.


COLLOQUY comprises a collection of publishing, education and research resources devoted tothe global loyalty marketing industry. COLLOQUY has served the loyalty marketing industrysince 1990 with more than 45,000 global subscribers. Its research division develops consumerand B2B studies and white papers, and COLLOQUY also provides educational services throughworkshops, webinars and speeches worldwide. For more information, visit www.colloquy.com.

COLLOQUY is owned by LoyaltyOne, a global provider of loyalty strategy and programs,customer analytics and relationship marketing services. Toronto-based LoyaltyOne is anAlliance Data company. For more information, visit www.loyalty.com.

The Publisher

Epsilon is a leading marketing services firm, with a broad array of data-driven, multichannelmarketing solutions that leverage consumer insight to help brands deepen their relationships withcustomers. Epsilon is an Alliance Data company. For more information, visit www.epsilon.com.

The Sponsor

©2011 LoyaltyOne US, Inc. All rights reserved. Permission to reprint may be granted upon specific request. COLLOQUY is a trademark of Alliance Data Systems Corporation used under license by LoyaltyOne US, Inc., an Alliance Data Systems Company.

4445 Lake Forest Dr., Cincinnati OH 45242Telephone: +1.513.248.9184Fax: +1.513.248.9184Email: [email protected]

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For more COLLOQUY white papers and studies, visit www.colloquy.com/whitepapers

Research Coordinator Wardah Malik

Research Analyst Jill Hickman

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