Skip to main content

Powerful Collaborations Always Begin With Trends And Insights.

 


By: Ray Chelstowski / Hilton Barbour 

The most successful marketing and loyalty programs put consumers at the very center and are purpose-built to uniquely solve a challenge in their lives. That opening statement is so blindingly obvious as to almost be insulting but, in our experience, the truly great programs keep a keen eye on how the challenges our consumers face are changing and evolving – and they change and evolve to keep pace and remain relevant.

Loyalty programs cannot be a “set it and forget it” proposition if they’re to be successful.

Case in point, Covid has impacted consumers in numerous sectors in ways that were unimaginable 3 short years ago. Supply chain issues has led to inflationary pressure which, in turn, has cascaded down to hit many consumer groups particularly hard in the wallet.

We’ve also seen, amidst lockdowns and travel restrictions, that many consumers are seeking to put more into their homes and the creature comforts they surround themselves with. If we’re literally talking creature comforts, it may surprise you to know that data collected by the American Pet Products Association (APPA) in December 2020 and March 2021 indicate that the prevalence of dog ownership increased from 48% of households to 54% of US households during that period. Cat ownership declined by 3% for the same period***.

Why are these factors important and how are savvy loyalty marketers taking advantage of them?

Last week, Advance Auto Parts announced a new collaboration with Shell to provide savings on gas to drivers through its loyalty program. Users of Speed Perks Gas Rewards can now save on any single gas purchase at participating stations for every $50 spent at Advance store locations or online.

“Saving at the pump is always top of mind for motorists. In fact, we found that fuel savings was an often-requested benefit from our Speed Perks members. By teaming up with Shell on Speed Perks Gas Rewards, we’re helping motorists advance at the pump and on the road in 2022 and beyond,” said Jason McDonell, Executive Vice President of Merchandising, Marketing and eCommerce of Advance Auto Parts.

“With Advance’s concentration of retail stores near Shell stations, we believe this is an offering that benefits all motorists. We are thrilled to be part of Advance’s enhanced Speed Perks loyalty program, which combines savings on quality automotive aftermarket parts and Shell’s patented formula of high-quality fuels,” added Greg Lemen, Shell’s Director of Loyalty Partnerships.

While the decision to work together makes complete sense intuitively, the fact that it’s supported by data and research not only ensures that the program will be successful – importantly it helped shape the relationships very structure.

Speed Perks members can check their points balance, member status and gas rewards balance online at AdvanceAutoParts.com or Advance’s mobile app. Combining Speed Perks Gas Rewards and the Fuel Rewards program can help Fuel Rewards Gold Status members save an additional five cents per gallon and Silver Status members save three cents per gallon on each fill-up. The more a customer spends at Advance, the more they save on gas. When inflationary pressures start hitting, you know one area that consumers (in the US and elsewhere) will look for some relief is at the gas pump.

That’s not the only program borne from a strategic evaluation of evolving and emerging trends.

Last week saw Hardware giant Lowe's and Pet Supply Retailer Petco joining forces in a new pilot initiative.

Starting in February, Lowe's will open mini-Petco shops inside 15 of its stores in Texas, North Carolina, and South Carolina. The Petco stores-within-a-store will offer staples like dog and cat food, leashes, and litter, and some will also have on-site groomers and veterinarians. If the pilot program is a success, expect more to quickly open across the United States.


During the pandemic, both companies have been boosted by customers who are at home more, giving them the chance to tackle projects around the house or adopt a new pet. Now they can offer a one-stop shopping experience that's irresistible to home-owning animal lovers. Millennials are the target audience for this partnership, with Petco Chief Merchandising Officer Nick Konat saying, "They're a high-spend customer and they really take care of their pet like they are family. And they've also been doing the same with their homes, with a lot of them being new homeowners or new renters."

These collaborations are smart because they build on the complementary brand equity and reputation of multiple organizations. Rather than invest countless dollars – and countless man hours – to build a new set of capabilities and competencies, savvy marketers are finding adjacent categories with the same consumer base to collaborate with and launch together. At Kognitiv, we see collaborations of the type epitomized by Lowe’s and Petco as the future of customer engagement and the evolution of loyalty programs. As our Zimbabwean colleague Hilton often reminds us with this classic African saying “If you want to go fast, go alone. If you want to go far, go together”

In our opinion, the programs destined to go the furthest are always going to be the ones built on strong collaborations and strong insights.

ray.chelstowski@kognitiv.com

hilton.barbour@kognitiv.com

*** Source - Characterizing Pet Acquisition and Retention During the COVID-19 Pandemic. November 18 2021. https://www.frontiersin.org/articles/10.3389/fvets.2021.781403/full

Comments

Post a Comment

Popular posts from this blog

Loyalty Shouldn't Start - or End - at Checkout

  When uncertainty runs high, restaurants often fall back on traditional loyalty programs like a safety net. Points. Punch cards. Discounts dressed up as “engagement.” But the uncomfortable truth is this: loyalty as we’ve known it is wearing thin. What once felt rewarding now feels routine. Predictable. Transactional. Customers are asked to trade data for discounts, frequency for freebies - reduced to behaviors instead of people. These programs may keep customers close, but they rarely make them feel connected. In some cases, they even feel like a trap: buy more to get less that actually matters. Today, brand love isn’t earned through discounts. It’s earned through devotion. The brands winning right now don’t treat loyalty as a program -they treat it as a relationship. They invite customers into the story. They create moments worth remembering. They move beyond transactions and build emotional equity by recognizing customers not just as consumers, but as participants, insider...
Post a Comment
Read more

Personalization Isn’t a Tactic. It’s a Growth Strategy.

  In crowded categories, brand loyalty is fragile. When new competitors enter the shelf, especially premium challengers, the instinct is often to respond with price cuts, bigger promotions, or louder messaging. But price doesn’t build loyalty. Relevance does. That’s where personalization changes the game. When Pepperidge Farm faced expected sales pressure from Dave's Killer Bread entering the market, the challenge wasn’t just competitive. It was emotional. How do you reinforce loyalty among long-term buyers — primarily female heads of household making bread decisions for their families — in a category where new options constantly surface? You don’t shout louder. You connect deeper. The Personalization Insight Moms are often the primary grocery decision-makers. They’re busy. They’re stretched. And when it comes to self-care, they’re usually the last person they prioritize. The insight was simple but powerful: If you want her attention - and her wallet - offer somet...
Post a Comment
Read more

Winning Brands Get Fit Through Experiences

Stop discounting. Start reallocating. Fit-to-Win brands cut smarter and invest in experiences that drive real momentum. And, see how Tommy Hilfiger pivoted from rebates to experiences and lifted same period sales by 84%.   Get Your Brand Fit to Win: Cut Smarter. Grow Faster. In a low-volume-growth world, most brands default to defensive cost cutting. Trim budgets. Reduce spend. Protect margin. But the brands that outperform don’t just cut costs - they get fit to win . Being “fit” means identifying and eliminating cost burdens that don’t create growth or competitive advantage. Being “fit to win” means reallocating those freed-up dollars into bold commercial bets that unlock top-line momentum. This isn’t austerity. It’s optimization with intent. When done right, this approach can reduce expenses by as much as 30 percent — while simultaneously strengthening brand equity and accelerating revenue. The question isn’t where can we cut? It’s where are we spending ...
Post a Comment
Read more