Trends in Loyalty and Customer Communication 2010

Defining Loyalty, Measuring Loyalty, Optimizing Loyalty

September 2010

Walter Kitchenman

wkitchenman@hotmail.com

Part of a Series on Global Information Management

This presentation is part of a series of work by Walter Kitchenman

(http://www.linkedin.com/in/wkitchenman) covering the importance and use of Information.

Earlier studies documented the availability, use and benefits of shared consumer and other data

and how such transparency shapes businesses globally; inhibitors to sharing information

resources within large organizations; solutions for implementing Best Practice Information

Products and Knowledge Management; and an introduction to Digital Marketing and why it will

be critical in terms of future investments.

2

• Identify and define Loyalty Metrics

• Show how Customer Communications strategies optimize Customer Loyalty

• Anticipate the impact on Customer Loyalty of a weakened economy,

regulatory changes and the fluid Web 2.0 environment

Purpose

This presentation describes the impact on Customer Loyalty of the

challenging economic, regulatory and technology environments 2009 –

2010. Publically available data were reviewed and extrapolations were

made where necessary.

Agenda

1. The Big Picture.……………………………………………………….. 4

2. Defining Loyalty……………………………………………………….. 10

3. Measuring Loyalty ……………………………………………………. 15

4. Forces Impacting Loyalty…………………………………………….. 25

5. Communications and Loyalty………………………………………… 33

6. Improving Loyalty ..…………………………………………………… 40

7. Summary ………………………………………………………………. 48

3

THE BIG PICTURETrends in Loyalty and Customer Communication 2010

4

5

1890s Today Future

For More than 100 Years Programs Have Rewarded Customers for Loyalty

Evolution of Rewards Programs • Developments since the 1980s are

directly related to:

– Advances in IT and at POS

• Future developments are supported by

IT, specifically in the areas of:

– Social media

– POS

– Web 2.0 (i.e. iAPPS, Tweets, etc)

– Mobile

– Proximity (RFID technologies)

– Wearable or “ubiquitous” computing

Hotels

Rental Cars

Coalitions

Enterprise Rewards

Grocery & Convenience

Instant Rewards

Ubiquitous Rewards

Credit Cards

Airlines

S&H Green Stamps

Source: TowerGroup

THE BIG PICTURE> TAKEAWAYS

Take Aways

• Loyal Customers may not be profitable at a point in time making Lifecycle

Management and Customer Lifetime Value (CLV) increasingly important

• Rewards programs are ubiquitous, especially in banking, as Debit

surpasses Credit and offers loyalty programs as well

• Inserts, email campaigns and landing pages remain powerful tools to

engender Loyalty as small improvements at the margin yield big results

• New media (e.g., iAPPS, Twitter, social networks) do not yield big numbers

in terms of reaching Loyalty Members but have high adoption rates

• Highly Connected Individuals (HCI) may not produce a large CLV but carry

brands with them on mobile and other devices and sway thousands

• There is a large untapped market for Loyalty Metrics among CMOs

6

Customer satisfaction rates held steady 2010 y-t-d despite declining revenues.

Winners use more than one Loyalty Metric and measure campaigns over-time.

THE BIG PICTURE> TAKEAWAYS

The Loyalty Universe: Key Metrics

• 1.8 billion members enrolled in Loyalty Programs in the US covering an

estimated 129 million individuals

• US$2 billion spent annually in the US on Loyalty Programs and Loyalty

Solution IT that is used to segment and target customers

• US households enrolled in 14 Loyalty Programs but are active in 6

• 50%+ of revenues come from fewer than 25% of Loyalty Members

• 35% of bookings are made by Loyalty Members (hotels and Casinos)

• 80%+ of CMOs prefer email for loyalty communications and marketing

• 20%+ of all marketing dollars will be spent on digital marketing by 2014

and online technologies now receive the most new loyalty investments

A 2.1% average opt-out rate annualized across 13 campaigns means 45% of a

list or dBase of potentially Loyal Customers may disappear.

7

THE BIG PICTURE> KEY METRICS

8

Industry Millions of Members

Financial Services 422

Retail (Specialty & Dept. Stores) 284

Airlines 277

Grocery Stores & Fuel/Convenience Stores 204

Hotels 162

Casinos 106

Drug Stores 74

Restaurants 14

Car Rental & Cruise Lines 11

Other 128

Source: COLLOQUY; extrapolations from COLLOQUY data

Distribution of 1.8 billion Memberships by Major Industry Segment

US Loyalty Memberships by Industry est. 2010

There are 14 Loyalty Memberships per US household. Loyalty Programs reach

an est. 129 million individuals. Financial services (cards) are biggest segment.

THE BIG PICTURE> KEY METRICS

There is a Large Un-Tapped Market for Loyalty Metrics Among CMOs

• 73% collect basic demographics

• 68% track location of Loyalty Members

• 33% measure satisfaction levels

• 27% measure brand loyalty

• 14% measure Advocacy Rates

9

Most marketers ignore the more complex measures of Loyalty and maintain

limited dbases.

Source: CMO Council 2009 - 2010

THE BIG PICTURE> KEY METRICS

DEFINING LOYALTYTrends in Loyalty and Customer Communication 2010

10

Loyalty is the Propensity of a Customer to Use a Product in the Future

1. Customer Satisfaction

2. Emotions

3. Behaviors

11

We Define Loyalty in Three Simple Ways

DEFINING LOYALTY> DEFINITIONS

Customer Satisfaction is Highly Related to Loyalty and Customer Retention

• Dissatisfied Customer - Looking for another product or service

• Satisfied Customer - Open to the next better opportunity

• Loyal Customer - Returns despite offers by the competition.

12

Three Broad Categories of Customers

Customer satisfaction and customer loyalty are the best predictors of

customer retention.

DEFINING LOYALTY> DEFINITIONS

Customer Dissatisfaction is a Very Important Driver of Consumer Behavior

• For every customer that complains at least 25 do not

• Dissatisfied customers tell 8 to 16 others about their dissatisfaction

• Highly networked dissatisfied customers tell thousands

• 91% of dissatisfied customers never purchase from the company again

• 68% of customers who do not return cite employee attitude

13

Characteristics of a Dissatisfied Customer

Prompt resolution of a dissatisfied customer's issue results in 85% of

them as repeat customers.

DEFINING LOYALTY> DEFINITIONS

14

.

Retention Expansion Compliance Advocacy

Repeat Buyer

Seeks Out Brand

Avoids Competition

Increases

“Share of Wallet”

Pays Price Premium

Provides Info.

Self-Services

Complies w/Requests

Accepts Advice

Recommends Brand

Supports Brand

and Positions

Measures and Behaviors Identifed with Loyalty

Loyalty in the automotive industry involves many behaviors we identify intuitively

with Customer Loyalty. Auto purchases elicit emotions to a great degree.

Behaviors and Emotions Characterize Loyalty: Example from the Auto Industry

DEFINING LOYALTY> DEFINITIONS

Source: Derived in part from from Synovate

MEASURING LOYALTYTrends in Loyalty and Customer Communications 2010

15

Customer Loyalty is Quantified in Loyalty Metrics

1. Net Promoter Scores (NPS)

2. Share of Wallet (SOW)

3. American Customer Satisfaction Index (ACSI)

4. Market Metrix Hospitality Index (MMHI)

5. Customer Lifetime Value (CLV)

6. Customer Effort Score (CES)

16

We Consider Six Common Loyalty Metrics

MEASURING LOYALTY>DEFINITIONS

Take Aways

• A loyal customer may not be a profitable customer

• The best metric is a combination of qualities that can be weighted

• Loyalty Metrics should be comparable over time and provide a base for

the assessment of future performance

• Loyalty Metrics should decline due to inactivity - a prolonged period of

account inactivity suggests the need for remedial action

• Loyalty Metrics should correlate highly with the likelihood of future

purchases and account activity

17

No single metric predicts Loyalty for every company or industry.

MEASURING LOYALTY>TAKE AWAYS

Net Promoter Scores (NPS) Show Willingness to Recommend

• Traditional customer-satisfaction measures omitted willingness to

recommend

• Customers are asked "How likely is it that you would recommend us to a

friend or colleague?" and then provide a rating from 0 ("Not at all likely")

to 10 ("Extremely likely")

• Avis, HP and IBM are among the many prominent adopters of NPS

The Net Promoter benchmark is popular for simplicity and claims it

correlates to company growth.

18

MEASURING LOYALTY>LOYALTY METRICS

Share of Wallet (SOW)

• Share of wallet (SOW) measures the share of money the customer

spends on a brand in preference to other brands

• SOW is not necessarily a reliable indicator of Loyalty and works best

when there are clear choices between well established brands

• SOW is an indication of the past and therefore not necessarily an

indicator of what a customer will do tomorrow

• SOW measures behavior at a single point in time

• SOW works best as one of many Loyalty Metrics

• Financial Services firms, especially card issuers and card associations,

track SOW trends

19

MEASURING LOYALTY>LOYALTY METRICS

20

American Customer Satisfaction Index (ACSI) has Best Predictive Value

Customer Expectations

Perceived Overall Quality

Perceived Value

Customer

Satisfaction

Customer

Loyalty

+ =

Since 1994 ACSI is a leading benchmark used to measure changes to

satisfaction over time, which in turn drives customer loyalty.

Customer

Complaints

MEASURING LOYALTY>LOYALTY METRICS

ACSI May Have Several Disadvantages as a Measure of Loyalty

• Complaints may be driver not consequence of satisfaction

• Some believe that satisfaction is a poor intermediary

Many marketers believe that Quality and Value directly affect Loyalty

without going through Satisfaction.

21

MEASURING LOYALTY>LOYALTY METRICS

• Data for the MMHI are gathered from a national consumer panel

• Each quarter 35,000 new interviews are conducted with travelers

• Evaluations of all major U.S. hospitality brands in all 50 states

• Index is available quarterly and MMHI „winners‟ value this designation

• In 2009 – 2010 Customer Satisfaction was steady with the hospitality

brands that best targeted Loyalty Program members leading the way

• The MMHI is a proprietary score

22

Market Metrix Hospitality Index (MMHI) was Created in 1996

MMHI is an indicator of US customers‟ satisfaction and price

sensitivity for airlines, car rental, hotels and other hospitality services.

MEASURING LOYALTY>LOYALTY METRICS

Customer Lifetime Value (CLV): Long-Term Measure of Customer Loyalty

• A loyal customer may not be a profitable customer

• Customers may be unprofitable because they cost too much to acquire or

too much to keep loyal, or don‟t have resources at a particular point in

time to make a purchase (autos, airlines)

• CLV measures profitability but the missing variable is share of wallet

Customer lifetime value (CLV) is the net present value of today's

customer's current and future contributions to profit.

23

MEASURING LOYALTY>LOYALTY METRICS

CEB Introduced a New Proprietary Loyalty Metric: The Customer Effort Score

• The CES shows a strong negative correlation to loyalty

• The more effort a customer puts forth in a service interaction, the less

likely they are to be loyal

“The probability that a service interaction will drive disloyalty is

approximately four times greater than the chance it will create any

positive loyalty impression.” - Conference Executive Board

24

MEASURING LOYALTY>LOYALTY METRICS

FORCES IMPACTING LOYALTYTrends in Loyalty and Customer Communications 2010

25

External Forces Can Have a Major Impact on Customer Loyalty

1. The Economy

2. Regulation of Financial Services

3. Technology (Web 2.0)

26

Three Important Forces Shape Customer Loyalty 2009 - 2010

FORCES>DEFINITIONS

Take Aways

• The declining economy has impacted on Loyalty and leading brands

focused on Loyalty Members and received more than 50% of their

revenues from 25% of customers (customer segmentation works)

• In cards, the largest loyalty program segment, the number and use of debit

cards surpassed credit cards in 2009

• Regulatory changes in 2010 that impact Financial Services that provide

more opportunities for opt-outs and fee hikes require a Communications

Strategy

• Technology changes (Web 2.0) in 2010 mean that many Loyal Customers

will take a brand with them through iAPPS, Tweets, RSS and social

networking updates

27

FORCES>TAKE AWAYS

When Consumers Feel Less Wealthy there are Broad Implications for Loyalty Programs

• Modest or slow growth of the US economy

• High unemployment

• No debt capacity among many consumers and businesses

• Falling housing values and rising foreclosures limit home equity

borrowing

• Wall Street is edgy -- declining 401s reduce savings by as much as 40%

• Possible shift away from consumption-oriented growth to more

investment oriented growth

• Shift away from Credit card use to Debit cards and even cash

28

Some key indicators mean that consumers cannot borrow and

consume as they have in the past due to a lack of debt capacity.

FORCES>ECONOMY

29

Source: TowerGroup

A Slow Economy Makes Loyalty Members More Price Sensitive

Proportion Willing to Pay for Rewards Card by Category (Percent)

Rewards Category

Airlines 57% 9% 8% 22%

Auto / Gas 91% 3% 2% 2%

Cash Rebate 92% 4% 2% 2%

Merchandise 93% 3% 1% 1%

Blended 84% 4% 5% 3%

Lifestyle 91% 5% 2% 1%

General T&E 71% 8% 6% 12%

All Others 87% 6% 2% 2%

$30+$0 $1 – $19 $20 – $29

Pricing 2010

FORCES>ECONOMY

Banking Regulations Beginning in August 2009 Impact on the Largest Loyalty Segment

• 45 days notification of changes to credit card accounts - previously 15

days' notice required unless customers defaulted on accounts

• 21 days to pay monthly balances without threat of late fees or penalties

• Opt-Out from interest rate hikes and fee increases and the ability to

cancel accounts while paying off balances under older interest rates

• Restrictions on rate hikes, bans on marketing credit cards to young adults

and gift card regulations took effect beginning in February 2010

• The Consumer Financial Protection Bureau approved in August 2010 has

broad powers to enforce and interpret credit card regulations

30

Well-designed landing pages can turn reporting of regulatory change and

fee hikes into an opportunity to promote Loyalty by capturing and mitigating

the reasons for opt-outs.

FORCES>REGULATIONS

31

Credit card issuers

must give 45 days„

advance notice of

significant changes in

terms and give

consumers 21 days to

make monthly

payments. Cardholders

gain right to Opt-Out of

certain changes in

terms.

Aug 2009

Federal rules on unfair

or deceptive credit card

practices and disclosure

take effect.

July 2010

Legislation creating the

first Consumer

Financial Services

Protection Bureau.

Aug 2010

Comptroller to submit

study on credit

insurance and debt

agreements with cards.

Deadline for Fed to

produce first biennial

review of cost and

availability of cards and

adequacy of laws.

Dec 2010

Milestones in Legislation that Impact Loyalty

Credit card issuers must

reduce interest rates to

previous levels after six

month reviews of

accounts that have been

increased. Fees (late,

exceeding limit or other)

must be proportional.

Gift cards must be

valid five years+;

dormancy fees banned

for 12 months.

FORCES>REGULATIONS

Advances in Web 2.0 Impact on Loyalty Communications

• Blogs (e.g., LiveJournal, Typepad, WordPress, etc.)

• Microblogs (e.g.,Twitter, Plurk, Identica, etc)

• Message Board/Forums

• Wiki (sites that allow the public to make changes)

• Video/Photo Sharing (e.g.,YouTube, Flickr, etc)

• Social Networks (e.g., Facebook, Myspace, Linkedin)

• Mainstream Media Blogs (e.g., Wall Street Journal, CNN, etc.)

• Mobile Apps (iPhone)

Loyal Customers use new media and take brand info with them. The

suitability of each should be assessed for each industry and campaign.

32

FORCES>TECHNOLOGY

Source: Introduction to Digital Marketing (Walter Kitchenman)

COMMUNICATIONS AND LOYALTYTrends in Loyalty and Customer Communication 2010

33

Communications Strategy is Critical to Retaining Customers

1. Preferred Means of Communicating with Customers

2. Some Key Terms

3. Effectiveness of Email Campaigns 2010

4. Impact of Opt-Out Rates on Campaigns Over Time

34

We Consider Four Aspects of Customer Communication

COMMUNICATIONS>DEFINITIONS

Take Aways

• Email is a very cost effective means of contacting Loyal Customers and

preferred by more than 80% of CMOs

• The Retention Rate (RR) should be above 95% (The amount of opt-ins

less the number that have opted-out)

• A high Frequency of Mailings is expected to produce a high opt-out rate

• Opt-outs may result from poor creative content

• Leaders focus on and test an individual campaign's trend and step back

and look at the big picture of all campaigns over time

35

Opt-out rates for major industries promoting Loyalty is about 2.1% and can

be lowered by testing alternative Communications Strategies and content.

COMMUNICATIONS>TAKE AWAYS

36

Medium or Format % Using % Preferring Likely Trend

Web Sites (Corporate & Landing) 60 45

email 60 84

Word of Mouth 47 n/a

Point-of-Sale 46 n/a

Direct Mail, Statements, Inserts 42 51

Customer Service/Sales Reps 39 25

Dedicated Sites (Loyalty Program) 60 32

SMS Texting 8 24

Social Networks 8 16

iAPPS 5 n/a

Used and Preferred Means of Communications

Note: Based on 300 CMO responses across diverse industries .

Source: Extrapolated from 2009 CMO Council data

Email is preferred by marketers because of low cost, the ability to automate

targeted messages, measure results and test alternative approaches.

COMMUNICATIONS>DEFINITIONS

Some Key Terms

• Open Rate: Number of emails opened divided by the number of emails

delivered (multiply by 100 to express the result as a percentage)

• Click-Through: A prospect takes an action and clicks on a link

• Click-Through Rate: Number of responses divided by the number of

emails opened

• Hard Bounce/Soft Bounce: A "hard bounce" indicates a permanent failure

due to a non-existent address or a blocking condition by the receiver; a

"soft bounce" indicates a temporary failure due to a full mailbox or an

unavailable server

• Unsubscribe: Canceling a service (e.g., an email newsletter or inclusion

on a mailing list)

37

COMMUNICATIONS>DEFINITIONS

38

Industry Open

Rate

Click

Rate

Soft

Bounces

Hard

Bounces

Abuse

Complaints

Unsubscribes

Financial Services 20.9 2.5 2.8 4.0 .06 .03

Retail 27.6 5.8 1.5 2.8 .08 .42

Airlines & Travel 25.0 5.0 2.2 3.7 .10 .40

Grocery Stores 36.6 7.9 .84 2.0 .09 .63

Hotels 27.5 7.2 2.9 5.3 .08 .50

Restaurants 26.2 3.4 1.3 3.4 .08 .41

Effectiveness of Email Campaigns 2010

Average Open, Click, Bounce and Abuse Complaint Rates by Industry (%)

Source: Extrapolated from MailChimp‟s reporting of these rates based on 233 million emails sent in different campaigns 2009-20010

COMMUNICATIONS>EFFECTIVENESS

39

10000

become

7500

3 Mos Out 6 Mos Out 9 Mos Out 12 Mos Out

7500

become

6500

6500

become

5800

5800

Becomes

5500

Even a 2.1% Opt-Out Rate Should Prompt Efforts to Improve Communications

On an annual basis, assuming 13 campaigns, a 2.1% Opt-Out rate per

campaign will yield a 45% opt-out/invalid rate.

45% Effective Opt-Out Rate

Example of a Campaign Beginning with 10,000 potentially Loyal Customers

Source: Numerical example is extrapolated and derived from data included in the MineThatData Newsletter March 2007

COMMUNICATIONS>EFFECTIVENESS

IMPROVING LOYALTYTrends in Loyalty and Customer Communication 2010

40

Communication Tools are Used to Engender Loyalty

1. Rewards Programs

2. Traditional Communications Programs

3. Innovative use of Web 2.0 to Engender Loyalty

4. Use of Loyalty Solutions IT for Segmentation and Targeting

5. Importance of Digital Marketing in 2010 and Beyond

41

We Consider Five Aspects of Improving Customer Loyalty

IMPROVING>DEFINITIONS

42

Model Description Advantages Disadvantages

Proprietary

Rewards Programs

Rewards Programs

sponsored by a Bank that

offer a blend of

Merchandise, T&E and / or

Cash Back Rewards

for spending.

• Control • Cost

• Solution flexibility

from Fixed cost

structure

Co-Brand:

Airlines / T&E

Rewards Programs

General T&E and Airline

programs that have linked

Travel Rewards with

card usage.

• Targeted

• Shared promotion

costs

• Dependence on

Partners

• Need for market

focus is heightened

Retail

Rewards Programs

Private Label or Co-Brand

Programs that attempt to

capture lion's share of

category Spend.

• Targeted

• Shared promotion

costs with

Co-Brand partner

• Transaction data

• Mixed ability to

capture general

Spend

Loyalty Models Focused on Rewards Become Ubiquitous (Especially in Financial Services)

Competition

IMPROVING>REWARDS

Source: TowerGroup, MasterCard Advisors

Traditional Communications Programs to Improve Loyalty Work and Improve Retention

1. Program Announcements that display news and program alerts at

specified times to specified participants

2. Collateral Materials such as enrollment forms, FAQ sheets, member

cards, brochures and inserts

3. HTML email and promotional Web sites

4. Newsletters – both print and e-mail

5. Personalized direct mail (ex. - welcome letters, printed statements)

When an economic downturn limits sales, Lifecycle Management Strategies

keep Loyal Customers involved with the brand.

43

Five Traditional Means to Keep in Touch with Customers

IMPROVING>COMMUNICATIONS

Innovative Strategies that Take Advantage of Web 2.0 also Engender Loyalty

• Web Content Management provides 24/7 control over content and messages

• Landing Pages can be personalized and used intelligently to reduce opt-out

rates at the margins

• Integrated email tools deliver customers personalized "blast" HTML

messages and event-triggered emails (i.e., "Congratulations" for reaching a

goal, or “you haven‟t used your frequent miles, act now”)

• RSS Feeds, Tweets, iAPPS provide for Customer Communication that is

faster than email

• RSS Feeds, Tweets, iAPPS provide for recap messages that summarize

weekly communications or extend new offers

44

Landing pages communicate regulatory changes and prevent opt-outs by

offering alternative products or reduced contact frequency.

IMPROVING>COMMUNICATIONS

Leaders Segment Customers and Conduct Highly Targeted Campaigns Using IT

45

• Customers‟ interests and transactional behavior are analyzed in order to

group them into segments

• Analytics are used to test campaigns, identify trends and compare groups

or segments

• Demographic and transactional behavior is used to target segments

across multiple channels both traditional and emerging (e.g., emails,

personalized landing pages, RSS feeds and Tweets)

• Loyalty Solutions that perform these functions are developed in-house,

acquired from third party vendors, hosted at third parties and accessed in

a ASP model, or can be outsourced

• US$2 billion+ is spent annually on Loyalty Solutions and the Programs

they support

IMPROVING>SEGMENTATION

46

Define segments

based on the types

of transactions

and/or purchases

Which segments?

Use Analytics to

understand:

• Demographics

• Attitudes

• Preferences

• Propensity to Buy

What are they like?

What do they like?

Leverage Merchant

Aggregation

Capabilities to

examine Spend:

• 7,000+ merchants

• Preferences

• Patterns

• Combinations

Where do they shop?

Design integrated

plan to target right

message to the right

customer through the

right channel.

• Mail or Email

• Web

• RSS

• Tweets

How best

to reach them?

CHANNELACTIONS

ACTUAL PREFERENCES

CLUSTERPROFILING

PURCHASE-BASEDSEGMENTATION

Targeting Increases levels of “Relevancy” to Maximize Returns in a Bad Economy

IMPROVING>SEGMENTATION

47

• Two thirds of US consumers are online

• Mobile and internet technologies are being adopted even faster outside the US

• Digital Marketing campaigns are measurable (assuming data is reliable)

• Online tools and analytics are better for direct response

• Online campaigns may generate more immediate sales

• Online tools and analytics are less expensive than traditional methods

• Numerous Third Party Solutions are available to help manage digital

campaigns, determine their effectiveness and target dollars

Digital Marketing Matters in 2010 and Beyond

Online spending is only about 5% of ad dollars today but is projected to

reach 21% of US marketing dollars by 2014 (US$55 billion).*

IMPROVING>DIGITAL

Source: Forrester Research,* Introduction to Digital Marketing (Walter Kitchenman)

SUMMARYTrends in Loyalty and Customer Communication 2010

48

Key Developments

• Economic downturn leads successful brands to focus on Loyalty Program

Members, who in turn provide more than 50% of revenues

• Small improvements at the margin yield large results over the course of

many campaigns (e.g., a 2.1% opt-out rate may be 45% annualized)

• In Cards, the biggest sector in terms of Loyalty Programs, Debit surpassed

Credit in the US in 2009 and are major part of Rewards‟ universe

• Regulatory changes and possible fee increases impact Cards and

Financial Services require a Communications Strategy to limit opt-outs via

well-designed inserts, email campaigns and targeted landing pages

• Emerging apps like iAPPS, Tweets and social networking keep companies

involved with customers until economic circumstances improve

• Online channels dominate expected investments as most marketers plan

to use digital marketing and networking tools to grow Loyalty Programs

49

SUMMARY>DEVELOPMENTS

For More Info –http://www.linkedin.com/in/wkitchenman

2010

Walter Kitchenman

wkitchenman@hotmail.com

Walter Kitchenman is an author and consultant on strategic issues in financial services. He

spent more than a decade as an international banker in Latin America and Europe and helped

launch the leading boutique advisory firm covering the strategic use of IT. Most recently he was

VP in charge of knowledge management at MasterCard Worldwide. He has a graduate degree

from Johns Hopkins School of Advanced International Studies (SAIS) and BA with special

honors from the Elliot School of George Washington University.

Trends in Loyalty and Customer Communication 2010

Defining Loyalty, Measuring Loyalty, Optimizing Loyalty

September 2010

Walter Kitchenman

wkitchenman@hotmail.com