...Canada, and is owned by Groupe Aeroplan Inc. It is the prominent loyalty management organization in the world. The head offices for Aeroplan are situated in Montreal, Toronto. It also has two call centers, one in Vancouver and the other in Montreal. Aeroplan started as a promotional tool for business travelers for Air Canada in 1984. After a period of one year, the organization had amassed about 100,000 regular flyers. In 2004, Aeroplan adopted its own identity separate from Air Canada, and it emerged as the leading loyalty initiative in Canada (Boer & Gudmundsson, 2012). In 2008, Aeroplan converted its Income Fund to growth oriented, which is a worldwide loyalty management organization referred to as Groupe Aeroplan Inc. In 2009, Air Canada transferred its Vancouver and Montreal call hubs to Aeroplan. This move made approximately 800 agents who were affiliated with the CAW Union to join around 350 employees who used to serve as administrative staff at Aeroplan. As a result, the company was forced to adopt a key culture change in order to cope with the workers who previously worked for Air Canada. Presently, Aeroplan has around 4 million members who are awarded air miles based on the widening network that comprises of about 150 brands in the retail, financial and travel industries (Boer & Gudmundsson, 2012). The mission for Aeroplan is to stimulate the loyalty of its associates and partners, supplement its members’ lives, and have significant influence for its partners, shareholders...
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...9-505-031 REV: DECEMBER 5, 2005 JOHN DEIGHTON Nectar: Making Loyalty Pay Persuading British households to do anything was not easy, yet, in the 18 months leading up to March 2004, Loyalty Management UK (LMUK) had induced over 54% of them to try collecting Nectar points and 40% to persist, making Nectar Britain’s largest rewards program. Each week it added 50,000 new members (whom Nectar called collectors). Rob Gierkink, CEO of LMUK, was pleased with his team’s accomplishment. In March 2004 Justin King had just taken over as group chief executive at Sainsbury’s, the supermarket chain that was Nectar’s largest issuer of points. He saw that more than half of Sainsbury’s 240 million pound (₤) annual marketing budget went to Nectar and said: “Nectar represents a significant investment for Sainsbury’s, and I can’t help but feel that if we put the investment into more staff in our stores we’d see a better return. I was part of the senior management team that turned around the ASDA supermarket chain before it was sold to Wal-Mart, and the changes we made at ASDA were all about price and value for money. ASDA didn’t have a loyalty program.” He continued: But I do understand the value of knowing more about what our customers are doing dayto-day and this is part of the value we get from Nectar. We use the Nectar data on our customers to help us determine which stock to carry in which stores. The Nectar data also allows us to do much better and more targeted marketing...
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...JUNE 2013 Bulking Up: The 2013 COLLOQUY Loyalty Census Growth and Trends in U.S. Loyalty Program Activity Jeff Berry Sr. Director, Knowledge Development and Application, LoyaltyOne Research Director, COLLOQUY 2.65 BILLION That’s the number of U.S. loyalty program memberships in 2012 Learn why that incredible figure is both good and bad news for loyalty marketers, and how you can profitably respond to it COLLOQUY.COM | 06.13 | 1 Bulking Up: The 2013 COLLOQUY Loyalty Census Growth and Trends in U.S. Loyalty Program Activity Introduction When our 2011 COLLOQUY Loyalty Census revealed that the number of loyalty-program memberships in the U.S. topped 2 billion in 2010, you could almost hear the sound of the industry doing a double-take. Now it’s time to listen for that sound again, because the loyalty tally leaped to 2.65 billion in 2012. Obviously, the loyalty industry is pumping up. And what fascinates us as much as half a billion of pure growth are the reasons behind this continued expansion. Back in 2000, COLLOQUY tallied 973 million memberships in our landmark program sizing study. By the time we published the 2009 COLLOQUY Loyalty Census, that figure had reached 1.8 billion memberships. In the 2011 Census, we noted that the rate of expansion was slowing when we saw only 16.3% growth between 2009 and the eye-popping 2 billion in 2011. But the slowdown was temporary. The current figure of 2.65 billion represents additional 26.7% growth. Where is this bulk...
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...Assignment questions: 1. What should Justin King do with the program? In my opinion King should continue with nectar program . Nectar provides Sainsbury with valuable information about their customers that helps keep Sainsbury thriving : In other words * 2.9% raise in revenue Cost is dispersed amongst the partners * Increase in number of buyers due to a large number of partners Cons: * Costs more than 120 million pounds towards the loyalty program * Company is competing with partners on same commodities * Benefits sometimes get split due to similar offering by partners * No complete control over its nectar loyalty program * The amount of inactive collectors has increased from 0 to 12%, using it once then abandoning in it. * Sainsbury’s CRM may be stronger if they had their own loyalty program 2. What should Rob Gierkink do with the program to keep Sainsbury’s happy? Sainsbury’s advantages if it remains associated with the Nectar Program: * The program’s management is outsourced to LMUK, which allows its partners to concentrate on their own business * By having a share cost of multiple partners, the cost would be greatly reduced * It helps with the segmentation of its customers by analyzing their purchase across a section of different products which was purchased in many different outlets * Expand company to different countries where Sainsbury’s is not present * Award more points to Sainsbury's' customers...
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...1. Is there any evidence that the program pays out for Sainsbury? Elaborate. * Nectar collected information on customers that helped Sainsbury’s to determine what stock to carry in which stores and to do more targeted marketing to customers. * Sainsbury’s had been losing market share, but after using Nectar’s rewards coalition their customers were spending more money than when they were using Sainsbury’s stand-alone points program. In fact, weekly spending was 40% greater at Sainsbury’s among people collecting points from the store and two other sponsors in the program. In addition, with each new added sponsor the amount spent at Sainsbury’s increased. For customers that earned points from 5 sponsors, their spending at the grocery store increased by 100%. * The benefit of using Nectar was to get customers to spend more per transaction and more frequently at the store, acquire customers that were customers of other Nectar partners, retain current customers, and up-sell customers higher margin products through incentives from the program. * The rewards program increased the competition for selling gas between Sainsbury’s and BP, but at the same time helped both companies take market share from retailers that did not offer Nectar points. * Conversely, though the majority of point were earned at Sansbury’s, there was a steady decrease in its importance throughout the year. Originally four out of five users redeemed at Sansbury’s, but throughout the year...
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...“The more you buy, the more you earn” – this is the logic each company sells to customers when introducing their loyalty programmes. Loyalty programmes offer gift redemptions, cash backs, discounts and privileges to customers who make frequent purchases. What is less known is that for every purchase, the data is recorded and used for unknown purposes, leading to privacy related issues. The benefits of loyalty programmes versus the related privacy issues have always been an item of debate. Benefits including customer satisfaction brought by customization, higher earnings for the company and savings for customers bring about higher welfare to both the company and the consumer, and therefore outweigh the privacy issues of data manipulation and information leak which will rarely happen. People often complain about receiving promotions and discounts on items that are worthless to them. Reward programmes address this issue by providing product customization thereby increasing customer satisfaction. Through in-depth analysis of consumer data and customer preferences, spending patterns that signal changes in shopping trends and customer behavior allow companies to customize products for their customers. The United Kingdom based retailer, Tesco PLC, employs this strategy by sending their members tailor-made coupons. This leads to 5 million different versions of mail promotions being sent to 12 million customers. Though customer habits are exposed in the process of determining suitable...
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...Is there any evidence that the program pays out for Sainsbury? Elaborate. Yes, there is evidence in the case that Nectar’s loyalty program pays out for Sainsbury's in numerous ways. Nectar helped Sainsbury's acquire customers. For instance, Nectar customers who are not Sainsbury customers may have another supermarket close to their home, such as Tesco. However, because these shoppers have a Nectar card, they are more likely to travel further for their grocery shopping in order to obtain loyalty points for their Nectar card. Additionally, Nectar allows Sainsbury to target members who are not currently shopping at Sainsbury’s but live close by a location. Typically, the retailer would have a very hard time connecting these targeted individuals, and subsequently converting them to regular shoppers. However, since Nectar has their information in its database, Nectar can target them, yielding a much higher acquisition rate at a much lower cost. The Nectar network helps Sainsbury’s retain customers. Customers are more likely to be loyal to Sainsbury’s as a brand because they receive loyalty points in return for their purchases. Nectar’s loyalty program is more effective than a stand alone program run by Sainsbury. The weekly spending at Sainsbury’s was 40% greater among shoppers collecting from the supermarket and two other sponsors. Shoppers value the ability earn points at multiple retailers, and become loyal to those retailers in the process. Shoppers who participate in these...
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...Nectar Case Marketing 530 - Team 3 1. Is there any evidence that the program pays out for Sainsbury? Elaborate. * Nectar collected information on customers that helped Sainsbury’s to determine what stock to carry in which stores and to do more targeted marketing to customers. * Sainsbury’s had been losing market share, but after using Nectar’s rewards coalition their customers were spending more money than when they were using Sainsbury’s stand-alone points program. In fact, weekly spending was 40% greater at Sainsbury’s among people collecting points from the store and two other sponsors in the program. In addition, with each new added sponsor the amount spent at Sainsbury’s increased. For customers that earned points from 5 sponsors, their spending at the grocery store increased by 100%. * The benefit of using Nectar was to get customers to spend more per transaction and more frequently at the store, acquire customers that were customers of other Nectar partners, retain current customers, and up-sell customers higher margin products through incentives from the program. * The rewards program increased the competition for selling gas between Sainsbury’s and BP, but at the same time helped both companies take market share from retailers that did not offer Nectar points. * Conversely, though the majority of point were earned at Sansbury’s, there was a steady decrease in its importance throughout the year. Originally four out of five users redeemed...
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...possibly worry about, swirl around in my head like lightening bugs trying to find their way out of a mason jar. I need to let these thoughts and emotions out of my mind. A deep breath fills my lungs with crispy cold air. I begin to take off. One foot after the other until I find my pace. Suddenly the parking lot fades into the distance as if it were only a mirage. Trees that are as high as sky scrapers tower over me allowing the sunlight to disperse thought the branches. The leaves on the trees are entering their final stages of life, turning them to the most magnificent shades of red, orange, and yellow. This time of year, I always think, is what makes New England such a beautiful place to live. Along side of me, out of my peripheral vision, I see a black squirrel gathering some acorns to haul back to his nest for the winter. My feet continue to trample the ground below me cushioning my feet from the tracks below. The dirt underneath me is moist and a deeper brown than usual which resulted from the rain we received last night. Perfect running conditions, I think to myself. My mind and my body are now at a tug of war. According the old wooden posts that jut out of the ground like newly bloomed flowers, I have run one full mile and three-quarters of my second mile. The body that I am encased in is exhausted, however, my mind is...
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...ght night. Stars in the background and love at the seams. Air rolling in the windows at 55 miles per hour, and hunger just a dream that’s passed. The hot sticky road of the day is a memory lodged; the future, experiences to be made. And all melt into a combination, in the bright night, with the stars. “Would you,” She turns to you and adjusts her dress. “Love me more- if we’d met two years ago?” But you don’t answer. You look through the windshield, the wind beating in your ears, the lines of dust on the windshield over your eyes. And you thank G-d you were born in this time. Years later, lives later, you’re living in a house in the country. And every now and then you can almost hear her go by, driving 55. You look at the sky, clouds scattered but moving in a harmonious formation, towards where you’ll never know. You say west, but that’s your heart putting out its best guess. You think back to that brown dress, that smile that had happiness embedded from the start, light another cigarette and wait for the avalanche of stars. And if you're wondering what 250 words looks like... By This is Bath | Posted: July 08, 2010 Comments (0) If you are wondering how long 250 words actually is, well, look no further. This piece is exactly 250 words. Ok, it doesn't look that long and yet we are asking you to write a story of this length which will engage and entertain our readers. Your story can follow any genre. Perhaps you think life at the Bath Chronicle is classic comedy material...
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...Bright night. Stars in the background and love at the seams. Air rolling in the windows at 55 miles per hour, and hunger just a dream that’s passed. The hot sticky road of the day is a memory lodged; the future, experiences to be made. And all melt into a combination, in the bright night, with the stars. “Would you,” She turns to you and adjusts her dress. “Love me more- if we’d met two years ago?” But you don’t answer. You look through the windshield, the wind beating in your ears, the lines of dust on the windshield over your eyes. And you thank G-d you were born in this time. Years later, lives later, you’re living in a house in the country. And every now and then you can almost hear her go by, driving 55. You look at the sky, clouds scattered but moving in a harmonious formation, towards where you’ll never know. You say west, but that’s your heart putting out its best guess. You think back to that brown dress, that smile that had happiness embedded from the start, light another cigarette and wait for the avalanche of stars. Years later, lives later, you’re living in a house in the country. And every now and then you can almost hear her go by, driving 55. You look at the sky, clouds scattered but moving in a harmonious formation, towards where you’ll never know. You say west, but that’s your heart putting out its best guess. You think back to that brown dress, that smile that had happiness embedded from the start, light another cigarette and wait for the avalanche...
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...Jazmine Menees ENGL 110 1/21/2014 My first 5k Shoes hitting the pavement, crowd cheering. Those were the sounds I remember the most while running my last mile. The sounds of other runners panting, and faint music playing from another iPod. In that moment, I knew that I had made a life changing decision. It was a new year, and like most I had a few new years resolutions for 2013. At that time, I'm not sure the word “run” was even in my dictionary. Honestly, the thought of running for longer than 5 minutes made me slightly nervous. Since it was a new year though, I figured I'd give it a shot and sign up for one of the biggest races in Peoria. The steamboat days race. This race will be held in June, just five months from now. Don't get me wrong getting on the computer that day and telling myself I could run that far wasn't easy. I knew it would take everything I had to start every single day by getting up and going for a run. It was winter, snow on the ground, and freezing. Who would want to get up early every morning in the cold for that? I did. I needed to change my clothes, put on my shoes, and just go. While my first days on the treadmill were hard, I had to keep telling myself that I was doing this for the right reasons. I made sure I got up every single day to run at least one mile, and that's when running started to change my life. I started to see changes in my weight, and my clothes fitting loosely on my body. I started to have more energy throughout the...
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...If someone travels a distance d in time t, then the person’s average speed is Use this fact to solve the problem. 1. A driver travels at 50 mph for the first hour and then travels at 70 mph for the second hour. What is the average speed of the car? 2. A bicyclist rides 1 mile uphill at 5 mph and then rides 1 mile downhill at 10 mph. Find the average speed of the bicyclist. Does your answer agree with what you expected? 3. At a 3-mile cross-country race an athlete runs 2 miles at 8 mph and 1 mile at 10 mph. What is the athlete’s average speed? 4. A pilot flies an airplane between two cities and travels half the distance at 200 mph and the other half at 100 mph. Find the average speed of the airplane. A Puzzle About Coins Suppose that seven coins look exactly alike but that one coin weighs less than any of the other six coins. If you have only a balance with two pans, devise a plan to find the lighter coin. What is the minimum number of weighings necessary? Explain your answer. Yards to Inches There are 36 inches in 1 yard. Write a formula that converts Y yards to I inches. 34. Checking Account The initial balance in a checking account is $468. Find the final balance resulting from the following sequence of withdrawals and deposits: 2$14, $200, 2$73, 2$21, and $58. 35. Acid Solution How much of a 4% acid solution should be added to 150 milliliters of a 10% acid solution to dilute it to a 6% acid solution? 36. Bank Loans An individual has two low-interest ...
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... And since there is two variables in that equation I chose to solve for the height and got that height=(800+x)(tan33°). But, I still had to get rid of the height, so I found another equation that was true for the height and so I found that tan35°=height/x, which when you solve for height comes to be height=x•tan35°. Then, I set those two height equations equal to each other so that, (800+x)tan33°=x•tan35°. Then I used the equations: tanø=(height of mountain/length of adjacent side) to find the bottom length of each degree(if needed), and sinø=(height of mountain/length of hypotenuse) to find the hypotenuse of each degree(the length of the cable car). To convert the feet to miles, since the speed is in miles/hour, I took the hypotenuse and divided it by 5280 feet(the number of feet in a mile) to get the mile. Then I multiplied that total by the reciprocal of the mph(to find the mph for each degrees, subtract .125 for each degree, or .25 for 2 degrees). Then, I multiplied that total by 60 to get the time from hours to minutes.≤ Then, I compared all the different degrees and how long they take, to see which is the fastest. See Appendix A for greater detail of my work. After doing all calculations, I conclude that although they are all very close, that...
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...costs of an intermediate size vehicle in the year 2000 averaged $.469/mile. This number is broken down into 8 different costs per mile: 1. Repairs- 0.9 cents 2. Depreciation- 16.4 cents 3. Fuel Tax – 1.9 cents 4. Fuel Cost- 4.2 cents 5. Financing- 7.0 cents 6. Maintenance- 2.3 cents 7. State Fees- 1.4 cents 8. Insurance- 12.7 cents (Our Nations Highways). After finding this data my next objective was to determine how many miles an average customer drives in an hour. To be specific, my main demographic was the college-educated individual since they were the most receptive to the car sharing idea. With this detail in mind, it was important to find data regarding the amount of miles an hour a college student may drive. I created this number by using the amount of miles a college student drives on a daily basis and multiplied it by the average cost per mile, which was 46.9 cents. To represent the amount of miles by a college student, I discovered data that shows that the average college student drives 20.3 miles a day (Our Nations Highways). I multiplied this number by 46.9 then divided it by 100 to get the exact dollar amount. This number came to approximately $9.54. However, to be more precise, the cost per hour for a Zipcar would be even more depending on the size of the car. For example, for a large party of customers, a mini-van may be needed. According to the FHWA, it costs 50.7 cents per mile (Our Nations Highways). When this is multiplied by $20.3 and divided...
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