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Loyalty Marketing: The Second Act

By Brian Woolf

Hardback, published in October 2001



About the Book...

This book shows what's required for success today in loyalty marketing. Using many successful programs from around the world as examples, the following questions are answered:
1.   What are global best practices?
2.   Why have some programs failed?
3.   How should we measure success?
4.   What are the common denominators of success?
5.   Are some programs inherently better than others?
6.   What keeps customers interested in the program?
7.   Why don't all retailers embrace loyalty marketing?
8.   How deeply should a loyalty program permeate a company?
In addition, you will learn why:
1.   A loyalty program's greatest benefit is the information
2.   Points programs costing 1% of sales are questionable
3.   Charging a membership fee makes eminent sense
4.   Best Customers are the critical success indicator
5.   There's no single best strategy
The lessons of this book, using retailing examples, has direct relevance to both on-line and off-line businesses across all sectors. Its purpose is to help you follow in the footsteps of the best, and avoid the missteps of the rest.

What's in it?

I. An Introduction to Excellence
    Chapter 1 - A Tale of Two Cities
                       The story of two great loyalty leaders:
                       Dorothy Lane in Dayton and Superquinn in Dublin
    Chapter 2 - Customer Churn and Burn
                       The untold tale of hidden customer losses
    Chapter 3 - From Deciles to Thresholds
                       A better measurement tool

II. The Diverse Paths of Loyalty
    Chapter 4 - The Power of Points
                       Optimize flexibility and minimize costs
    Chapter 5 - A Giant With a Laser Focus
                       Using information, Tesco aims to win loyalty customer by customer
    Chapter 6 - Two-Tier Pricing
                       The low-cost alternative
    Chapter 7 - Mission Marketing
                       Big Y: loyalty marketing with religious zeal
    Chapter 8 - Best Customer Marketing
                       The special case of marketing to Best Customers
    Chapter 9 - Targeting the Primary Customer
                       Boots' program is designed for its Best Customers

III. How Customer Measurements Help
    Chapter 10 - Infinite Segmentation
                         Myriad ways of segmenting customers
    Chapter 11 - The Great Game of Yield
                         How customer data is used to increase profits

IV. Drawing It All Together
    Chapter 12 - Do Loyalty Programs Work for Low-Cost Operators?
                         Some low-cost operators with loyalty programs
    Chapter 13 - Key Success Factors
                         The six requirements for on-going success

What others are saying...

""Loyalty Marketing: The Second Act is the new bible for customer-focused retailers worldwide.""
Frank Murphy, Director, Superquinn, Dublin
""Brian Woolf's new book is certainly the most fascinating, comprehensive, and readable coverage of retail loyalty programs in the world today. It is filled with specific examples taken from a variety of companies in many countries. It explains clearly the advantages of discounts vs points, plus what use can be made of the valuable data gained from a loyalty program. No one in retailing should try to run his business without reading this book.""
Arthur Middleton Hughes, Vice President for Strategic Planning, msdbm, Los Angeles and author of The Complete Database Marketer and Strategic Database Marketing
""Inspiring case studies. Actionable ideas. Fundamental rules. Measurable reports. Whether you are just getting started or are well down the path of loyalty marketing, you will find The Second Act indispensable.""
Scott Ukrop, Vice President of Marketing, Ukrop's Super Markets, Richmond, Virginia
""Brian Woolf, whose first book, Customer Specific Marketing lifted the veil on the secrets of successful loyalty marketing and changed the industry, has done it again! His thoughts on threshold measurements alone are worth more than even his always-valuable seminars. Read this book before your competitors do.""
Fred Newell, Author of and Wireless Rules
""What is so valuable about Brian Woolf's new book is that it shows us how to measure and manage customers' behavior - something missing in other marketing books which typically talk more about general concepts.""
Luis Martinez, Director of Marketing, Dia, Madrid
""In this book Brian Woolf has given even advanced practitioners of loyalty marketing a set of global best practices against which they can judge and then improve their own performance.""
Kevin Doris, CEO, Gerland's, Houston, Texas
""Brian Woolf clearly explains what it takes to succeed with loyalty marketing, using many examples found around the world. Loyalty Marketing: The Second Act reinforces many of Brian's founding principles and puts forth his latest thinking and fresh ideas.""
Gary Hawkins, President, DataWorks Marketing Group and CEO, Green Hills Farms, Syracuse, New York
""Brian Woolf's new book is wonderful! It offers insight into the minds of some of CRM's best retailers, and how their attitudes toward customers changed as they learned to use data. As an added bonus, these leaders share some of their most creative and effective ideas. The book is filled with rules of thumb, easy-to-follow models, and real-life bottom line results. If everyone followed this advice, we would see no more failed loyalty marketing programs. Anyone who wants to learn about the current CRM masters, or hopes to become one, needs to read this book.""
Carlene Thissen, President, Retail Systems Consulting, Naples, Florida
""It's all about the data - and what you do with it. Loyalty Marketing: The Second Act lays it all on the table. Replete with demonstrable stories of the world's best practices in loyalty card marketing, Brian Woolf leads you down a path towards the mastery of your own program. You'll enjoy his conversational style of writing and come away with a new vision. Read it with a highlighter, change colors, and then read it again.""
Bill Roth, CEO, Pervasive Marketing Group, Denver
""A major strength of the book is its use of example after example of strategies used by successful retailers in ways that let everyone know not only 'what can be done', but that 'it can be done' successfully.""
Earl Johnson, Director of Marketing, Hardin Piggly Wiggly, Gadsden, Alabama
""This is an excellent read. While there are some more technical chapters, Brian's manner of writing makes it interesting and entertaining instead of scholarly and dry.""
Cathleen Jacobson, Director, Marketing & Print Media, Carson Pirie Scott & Co., Milwaukee, Wisconsin
""The problem with most loyalty programs is not the plastic cards but the 'plastic' programs! Here's an authoritative book about the numbers and key factors that add up to make an exciting and profitable program for customers, retailers and suppliers.""
Gordon Cooper, Director, The Continuity Company, Italy
""Loyalty Marketing: The Second Act offers a significant new set of ideas for all of us retailers to approach our CRM efforts in a new and more profitable direction! Read it now for a clear peek of our future customer opportunities!""
Dan Bernstein, President, Patti's Hallmark Gold Crown Stores, San Diego, California
""When you read this book, I guarantee that you will experience either of these two reactions - either you will be kicking yourself for not yet having institutionalized a loyalty program in your business; or you will have a moment of revelation, maybe several, as to how your loyalty program can be made to pay better dividends.""
Ajita Kini, Principal, Infosys Business Consulting Services, Fremont, California
""Loyalty Marketing: The Second Act picks up where Customer Specific Marketing left off. It provides great insights to revitalize card programs into true customer loyalty campaigns. With real-world case studies and practical applications, Brian Woolf has given companies the tools necessary to leverage the power of the customer database into programs that can truly increase customer retention and satisfaction.""
Tom Montano, Director of CRM, Smart and Final, Commerce, California

About the author...

Brian Woolf is a global leader in loyalty marketing and has written three definitive works on the subject, Measured Marketing: A Tool to Shape Food Store Strategy, Customer Specific Marketing, and Loyalty Marketing: The Second Act. He devotes his time to helping retailers develop, critique and strengthen their loyalty programs.

The techniques and metrics Brian Woolf has developed have become guiding principles for those operating some of the world's most successful programs. He is the President of the Retail Strategy Center, and has consulted, and spoken at conferences, in the US, Europe, Japan, and Australasia.

Prior to his total commitment to loyalty marketing, his corporate roles included Deputy Managing Director of Progressive Enterprises, a major New Zealand retailer; and Chief Financial Officer of Food Lion, a leading US food retailer. He has an M.Com. (Economics) from the University of Auckland, New Zealand, and an MBA from the Harvard Business School.

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