Punching a Hole in Loyalty Card Programs

Canadian retail leader says product and service, not points and discounts,
are what builds true brand loyalty

TORONTO, Feb. 15, 2017 /CNW/ - If he could do it again, David Segal would never have offered a loyalty program for DAVIDsTEA, the brand he co-founded and built into a Canadian retail giant before his departure from the company in 2016. Segal, who will speak on the subject at the upcoming annual Dx3 Canada conference, argues that the emotional bond of loyalty has been diluted to mean discounts in exchange for data.

"The rebate loyalty program is a race to the bottom," said Segal. "These so-called loyalty programs devalue your brand, train your customer to expect discounts, erode your margin, and ultimately fail to create loyalty."

Instead, Segal argues, companies who want to drive true loyalty need to solve one of three key customer problems: consumers' lack of trust in corporations, consumers' lack of time to research products and services and consumers' lack of engagement with a sea of undifferentiated brands. Rather than focusing on points and rebates, Segal will explore ways that companies can respond to each of these challenges to build true loyalty and engagement during his session at Dx3.

For Segal, the passion is personal. During his time at DAVIDsTEA, the biggest driver of consumer loyalty – and the move that Segal credits with putting the company on top of a Leger Marketing customer experience survey – was a staff empowerment policy, which allowed in-store staff to do what was needed to correct a situation without requiring any approvals.

"Personalized customer service, incredible products and ease of use – these are the true keys to loyalty," explained Segal.

Dx3 is Canada's largest digital marketing, advertising and retail conference. This year's event will also host a slate of leading industry experts, including:

  • Betsey Chung, CMO, BMO Financial Group
  • Ewan McNeill, Director of Customer Experience, LCBO
  • Frank Cutitta, Director of the Center for Content Analytics, HIMSS Media Lab
  • Lana Novikova, Founder & CEO, Heartbeat Ai
  • Lara Skripitsky, Head of Digital, McDonald's
  • Lars Petersen, Vice President, Business Optimization, Sitecore
  • Matt Bertulli, CEO, Demac Media
  • Megan McKee, Vice President, Consumer Card & New Business Development, American Express
  • Rick Neuman, CIO, Walmart
  • Rob Cameron, Chief Product & Marketing Officer, Moneris
  • Tony Long, Global VP of eCommerce Innovation, Kimberly-Clark

Dx3 Canada will be hosted from March 8-9, 2017 at the Metro Toronto Convention Centre.  More information and tickets can be found online at Dx3Canada.com.

About Dx3 Canada
Dx3 is Canada's largest conference and trade show focused on digital marketing, digital advertising and digital retailing. It brings agencies, brands, publishers and retailers together for two days of networking and education.

Dx3 2017 is March 8-9, 2017 at the Metro Toronto Convention Centre, featuring more than 40 educational sessions, 100 exhibitors and 4,100 attendees from Canada's leading brands and agencies.

SOURCE Dx3 Canada

For further information: Media Contact, Madeleine Stoesser, Herscu & Goldsilver, madeleine@herscugoldsilver.com

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