Making Coke Rewarding
When you think of Coca-Cola’s marketing strategy, you likely think of mass marketing at it “mass-est.” In fact, Coca-Cola often thinks instead in terms of large niche markets driven by lifestyle or life stage, according to Michael La Kier, director of My Coke Rewards for Coca-Cola North America, whom I saw present at IQPC’s Customer Feedback Summit.
The question La Kier posed to attendees was, how do you understand these niches and then connect to consumers? He also noted why attendees would want to make that connection: Companies can spend less when talking to the same consumers again.
La Kier didn’t say how much Coca-Cola North America spends on talking to its My Coke Rewards customers, or whether it’s less than would be spent to connect with less-engaged consumers. But he did give some insight into the tremendous benefits Coke has garnered from the program, and offer eight steps brands and companies can use to successfully connect with customers.
Coca-Cola is often cited as the number one brand worldwide. Interestingly, according to La Kier, “Coke” is the second most understood term worldwide after “OK.” The company gets more than 2 billion brand views per day via such “channels” or “media” as ads, movies, employees, company trucks, in-store signage, and signage at partner operations like McDonald’s and sponsored organizations like the NBA.
One place the company focuses in on its niche-market consumers is online via mycokerewards.com. The side offers personalized home pages based on consumers’ preferences (e.g., preferred brands, activities, etc.). In the course of 24 hours the website gets more than 285,000 visits, during which the average length of stay on the site is 9.5 minutes, and about 13,000 new members join. The program currently has more than 9 million members who have logged in more than 100 million times and have redeemed about 5 million rewards in total.
“We’ve seen positive changes in purchase behavior by our active members,” La Kier said. “We’ve also seen positive changes in brand advocacy that have created valuable and measurable results.” According to La Kier, one third of My Coke Rewards members have told others about the program—about three or four other people, on average—and another more than 40 percent plan to do so.
So how can other brands see this type of engagement? La Kier offered eight musts for successful brands:
1. Leverage existing strengths and partnerships. My Coke Rewards, for example, capitalizes on Coke’s relationship with Blockbuster by offering rentals there as one of the rewards. This drives traffic to Blockbuster, thus potential incremental sales for both companies as a result.
2. Understand customers. Recognized and respond to how customers are changing marketing as we know it.
3. Listen up. Allow for active listening and for personalization.
4. Be unique. Deliver a compelling value proposition.
5. Follow as well as you lead. Let customers identify the tools and experiences they want.
6. Keep technology in perspective. Use technology as a means to a strategic end.
7. Use data wisely. Have a data management strategy that includes actually using the information you ask customers for.
8. Act as a hub. Prove a connective fabric and community for customers.
Thanks James. I enjoyed your (liked) post and am intrigued by the idea of EDM, which you mentioned in a few of your linked blog entries.
Nice article - blogged a response with some additional links about MyCokeRewards here.
JT
James Taylor
Author of Smart (Enough) Systems
Thanks BJ!
great overview of that presentation. I was there as well and the gold nuggets are in the bullets ;)