Card Marketing: (jan 2001)/COVER STORY--Customer... -
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Published on: 4/8/2001
Last Visited: 1/14/2003
"Branding is a pretty high priority" of Shell Credits, says Greg Wehr, manager of loyalty marketing for Equiva.The company also wanted to ensure the program was easy to use, offered a relevant reward structure and valuable rewards with reasonable attainability, and that it ters of his or her AAA renewal through the program.
"We put together two things people needed," he says."We looked at airlines, we looked at grocery programs, we looked at membership programs.We looked across the gamut.We wanted to align ourselves with a brand we can trust and that is really relevant to our category."Focus groups and individual interviews with consumers led Equiva to AAA.
The brand equity in AAA is tremendous, Wehr says.Since 1902, the auto club has signified security, safety, and trust - "the things we want Shell to stand for," he says.
The partnership also enables Shell to make hundreds of thousands of brand impressions immediately, rather than delaying brand impact for months while members sign up for the program.
Shell Credits already has members through the free, automatic enrollment of the 385,000-member AAA Cincinnati database.
If successful, the rewards program will roll out nationwide to 24,000 Shell stations in April or May, says Wehr.The company already has inked a deal with the national AAA based in Heathrow, Fla., which has than 60 chapters and 42 million members across the country.One in five drivers in the United States is a AAA member.
Rather than introducing a new card product, Equiva relies on its established Shell cobranded (in classic and platinum from Chase Manhattan Bank, New York), other branded and private-label credit, prepaid, and debit cards as well as cash transactions, inviting all AAA Cincinnati members to swipe their magnetic-striped membership cards to register the reward.Two and a half percent of each sale is credited toward AAA annual fees, which average about $60.Special offerings may be available periodically to AAA members who also their Shell cards to make purchases.
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At press time, Wehr was unwilling to comment on early data that point to the progress of Shell Credits but said Equiva's brand tracker would be used to measure AAA member customer satisfaction related to the Shell brand."We expect to see some noticeable benefits within a four- to six-month period," he says.
Equiva and AAA engage in cross promotions to get the word out, including advertising in AAA Cincinnati's magazine, direct mail campaigns, and point-of-sale advertising at participating Shell stations.Shell planned to launch heavy radio advertising in January to support the program.
Shell will begin another loyalty card program at the end of March or beginning of April in two cities yet to be determined.The details of the program are still in development, but Wehr promises the second trial will be even juicier than Shell Credits.
And the loyalty programs are just part of the brand marketing mix."A loyalty program in and of itself will not be the sole reason for achieving your branding goals," he says."It is a way of providing a suite of products customers are looking for."