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August 2005

RELATIONSHIPS | RESOURCES | RESULTS

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Now Available for Corporate SalesFor more information contact your promotional products distributor or Idea Workshop at 888-831-0401 e-mail: [email protected]

www.ideaworkshop.com

LACoste 2/21/05 2:21 PM Page 1

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4 Brilliant Results | August 2005 www.brilliantpublishing.com

THE FUN FACTOR 28A look at the success of behavior-based

safety techniques incorporating incentivesand appreciation to create a safe,

‘fun’ workplace.By Buck Peavey

THE BATTLE OVER “SHARE OF WALLET” 36

An in depth review of the techniques beingused to recruit new users and promote

credit cards in an increasingly saturated marketplace.

By Andrew Becker

SATISFYING THE LOYALTY APPETITE 50

Illustrations and information about the 6 basic types of loyalty programs.

Contents

8 28 36

columnsPUBLISHER’S LETTER 6

BRILLIANT IDEAS FROM THE SOURCE 72

ADVERTISING INDEX 74Get FREE information from this

month’s advertisers

CALENDAR 76

THE LAST WORD 78Brilliant Results talks with LeslieTubbs, Director of the Pizza Hut

Book It!® National ReadingIncentive Program, one of

the finest models of a corporate/education partnership.

For 20 years Pizza Hut through itsBook It!® Program has beenrewarding young readers with

pizza, praise and recognition formeeting their reading goals. It’s a

program about kids, books and the joy of reading.

OFF THE CUFF 82Inspiring quotations and

credit card trivia.

HOT PRODUCTS…THINGS WE LOVE 54

Brilliant Results previews a treasuretrove of exciting products.

WHAT WORKS 63Successful Case Studies and

research for your next powerful promotion presented by the

Promotional Products AssociationInternational (PPAI).

COVER STORY 8GET SWEPT AWAY WITH SWEEPSTAKES

Our exclusive interview with Mike Reilly, President of Sweepstakes Online, and Caroline Saint, Vice President of Sales and Business Development, explores the use of sweepstakes in

building loyalty and marketing excitement with an in-depth look at a successful campaign developed for Colonial Supplemental Insurance in collaboration with Doreen Sullivan, President of Post No Bills.

TMbrilliant resultsVol. 2, No. 8

features departments

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BR0105_Section03.qxl 12/17/04 3:20 PM Page 15


Publisher’s LetterBrilliant Publishing LLC

9034 Joyce LaneHummelstown, PA 17036

Ph: 717.608.5869Fax: 717.566.5431

PUBLISHER / ADVERTISINGMaureen Williams

[email protected]

EDITORIALEditor in Chief

MaryAnne Morrill

Senior EditorsMichelle Donofry, Pierce Roberts

Style EditorCharity Plata

Asst. EditorMildred Landis

Contributing WritersAndrew Becker, Buck Peavey, Marlena Telvick,

PPAI - What Works Section

PRODUCTION / DESIGNArt Director

Percy Zamora

Photo Credits:PostNoBills, Inc. an affiliate of CorpLogoWare

for Cover shots and Colonial “Swept Away” CaseStudy with images.

Brilliant Results is published monthly by Brilliant PublishingLLC, 9034 Joyce Lane Hummelstown PA 17036 (717) 608-5869; Fax# (717) 566-5431. Postage paid at MechanicsburgPA and additional offices. POSTMASTER please send addresschanges to Brilliant Results, 9034 Joyce Lane, HummelstownPA 17036. Volume 2. Number 8. Brilliant Results subscriptionrates: one-year $120; Canadian $160 USD; one-year foreign$225 USD. All subscriptions are non-refundable. Copyright ©2005 Brilliant Publishing LLC. All rights reserved. The publish-er reserves the right to accept or reject any advertising or edi-torial material. Advertisers, and/or their agents, assume theresponsibility for any claims against the publisher based onthe advertisement. Editorial contributors assume responsibil-ity for their published works and assume responsibility for anyclaims against the publisher based on published work. No partof this publication can be reproduced in any form or by elec-tronic or mechanical means, including information storageand retrieval systems, without written permission from thepublisher. All items submitted to Brilliant Results become thesole property of Brilliant Publishing LLC. Editorial contentdoes not reflect the views of the publisher. The imprints,logos, trademarks or trade names (Collectively the “Marks”)displayed on the products featured in Brilliant Results are forillustrative purposes only and are not available for sale. Themarks do not represent the implied or actual endorsement bythe owners of the Marks of the product on which they appear.All of the Marks are the property of the respective owners andis not the property of either the advertisers using the Marks or Brilliant Results.

WE HAVE SOME VERY EXCITING NEWS to sharewith you this month! I am pleased to announcethat Brilliant Results has formed a strategicalliance with PPAI (Promotional ProductsAssociation International), the nation’s largestNon-Profit Trade Association for the $18+ Billionpromotional merchandise industry.

After months of negotiations, we are absolute-ly thrilled about what this will mean to you, ourreaders. This new relationship was structured to bring you even moreaward-winning ideas, industry statistics and most importantly uniqueaccess to the national network of the industry’s most educated and tal-ented distributors. These professionals are dedicated to enhancing thewhose job it is to support the success of your marketing initiativesthrough the creative use of promotional merchandise..

You can see the beginning of what this new alliance will bring whenyou check out this month’s revised “What Works” section on pages 63 to70. This month and every month from hereon PPAI will be using thesepages to bring you award winning case studies, insightful industryresearch, tips & testimonials on the effective use of promotional products.

As for this month’s issue… be prepared to be swept away! Our editorswent one-on-one with Mike Reilly, President of Sweepstakes Online, Inc.and his VP of Sales and Business Development, Caroline Saint, to get theinside story on the use of sweepstakes to generate marketing excitement.This interview, as well as the extensive measurable case study of the GetSwept Away marketing campaign provided by Doreen Sullivan, Presidentof Post No Bills, an affiliate of CorpLogoWare addiliate, will surely get youswept away with excitement for Sweepstakes programs and the impactthey can have on any marketing effort.

Add in our look at loyalty programs, an informative article on the challengescredit card companies are facing in the battle for wallet share and com-ments from the Director of the Pizza Hut BookIt!® program about one ofthe most successful corporate education incentive efforts and you haveanother information packed issue of Brilliant Results …and of coursedon’t forget to let those Things We Love keep your creative juices flowing.This coupled with …

So be prepared to be swept away with excitement and ideas for yournext brilliant campaign!

Anticipate Results,

Maureen Williams, Publisher

TM


brilliant resultsbrilliant results

262467 Brill492

BR0805_Section01 7/22/05 12:42 AM

BR0605_Section03 5/24/05 3:01 AM

HOW DO YOU GET them to leave with the one

who brought them? How do you keep them once

they’ve? Now matter how old the refrain, it is a

question that successful businesses never stop

asking: Loyalty – How do you acquire it from

customers and keep it in a world of new and

improved distractions? This month Brilliant

Results decided to explore the concept of

building loyalty in a disloyal world. While busi-

ness publications often look at the obvious

loyalty builders, the customer is always right

and customer service scenarios, we decided

to explore a new twist on an old loyalty gen-

erating idea – the sweepstakes. Specifically,

the sweepstakes with a 21st century twist.


Getwith Swept Away

Sweepstakes

BR0805_Section01 7/22/05 12:43 AM

Brilliant Results | August 2005 9www.brilliantpublishing.com

Mike Reilly, President of Sweepstakes Online, Inc. Caroline Saint, VP of Sales and Business Development

BR0805_Section01 7/22/05 12:45 AM

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Established in 1994, Sweepstakes Online, Inc. is a leader insweepstakes and incentive programs both for businesses and con-sumers. Sweepstakes Online offers clients full-service solutions andstate-of-the-art technology for planning, developing and managingsweepstakes and incentive programs. Consumers can participate insweepstakes with services and products offered through its onlineweb site. With the addition of SweepstakesBuilder, SweepstakesOnline offers business services geared toward meeting online marketing and media objectives specializing in Sweepstakes and Incentives.

This focus on cutting edge technology led tolaunch last year of TEXTin2WIN™ - a new wayfor companies to run their sweepstakes, contestsand incentive programs by using a wireless text-messaging. Already proven in European markets,Text Messaging sweepstakes can now be built inthe US and run on all major wireless carriers.

“Text messaging is becoming increasingly popularin the U.S. — it’s only natural for companies to startmarketing with sweepstakes, contests and otherincentive vehicles where participation is as simple asentering a short code using a wireless device,” statesMike Reilly, president of Sweepstakes Online, Inc.According to the Yankee Group, wireless subscribers will grow to 200 million and 70 percent ofAmericans will own cell phones. In addition,money collected from wireless data users isseen growing annually at about 275 percent.

With TEXTin2WIN, no entry forms arerequired and the entry is a single word orphrase sent via text messaging to a designat-ed short code where their cell phone numberidentifies the participant. “For companies,this means instant call-to-action, much quick-er than with Internet sweepstakes, becauseit takes less than 30 seconds to send a textmessage and people carry their phones withthem everywhere,” observes Caroline Saint,VP of Sales and Business Development forSweepstakes Online. TEXTin2WIN is a full-service program, providing campaignplanning, development and management.Companies receive expert consultation onsweepstakes services and the reliability of asophisticated SMS platform, all from one qualified source.

To find out more about this innovative company BrilliantResults recently had the pleasure of speaking with Mike Reilly,President of Sweepstakes Online, Inc. Mike also had CarolineSaint, VP of Sales and Business Development for SweepstakesOnline join in with her thoughts in several areas.

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BR: Give our readers a little background information onMike Reilly?

MR: I’ve lived along the west coast my whole life fromCalifornia to Alaska. After graduating from Oregon StateUniversity with a computer science degree in the engineer-ing department in 1990, I worked at Microsoft for 10 years inproduct quality assurance. In 2000, I made the move to runSweepstakes Online full time and develop it into what it hasbecome today – providing incentive services and solutionsfor both consumers and businesses.

BR: Can you tell us how Sweepstakes Online came about?

MR: Sweepstakes Online evolved from my hobby of enter-ing sweepstakes. My love of entering sweepstakes beganvery young as a child helping my mother enter localsweepstakes, filling out entry forms and stuffing the entryform boxes. She has won everything from automobiles andvacations to cash and loads of other prizes. I continuedentering sweepstakes as an adult prior to the advent of theInternet by subscribing to sweepstakes newsletters, whichpublished sweepstakes you could enter free. The only issuewas that as a subscriber, I had to wait weeks to receive thesweepstakes newsletter. So in 1994, I started SweepstakesOnline and created the first service of its kind that allowedsweepstakes fans the ability to download sweepstakeslistings using a modem. I sent the software for free and aperson could subscribe, connect to the service and down-load listings anytime of the day – so instead of waitingweeks to receive sweepstakes listings, they couldreceive them immediately. From that point on,Sweepstakes Online (www.sweepstakesonline.com)launched a web site in 1995 and added many otherconsumer services. About 1997, as the Internetstarted to become a marketing platform, businessesbegan contacting us to market their sweep-stakes campaigns and our B2B services started.In 1998, Caroline Saint joined theSweepstakes Online team and withher marketing and promotional prod-ucts expertise helped createSweepstakesBuilder (www.sweep-stakesbuilder.com) as our B2B division afull service solutions provider for devel-opment, administration and manage-ment of sweepstakes and incentivepromotions. SweepstakesBuilder offersturnkey and custom solutions for anysized business for both online andoffline campaigns.

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CHALLENGE: Colonial Supplemental Insurance needed an innovative and creative strategy to accomplish two goals:

1. Motivate their 6,000-member sales organization to meet thesales qualifications for the company’s annual incentive tripsto Aruba in 2006

2. Draw salespeople to the incentive trip promotional site onthe company’s sales Intranet to find out more about Arubaand how to qualify for the trips. And while they were on theIntranet site, salespeople would be able to access many help-ful sales tools and educational materials to help them growtheir business and increase sales.

Sabrina Hogan is manager of Colonial’s Incentives and Awardsdepartment at the company’s headquarters in Columbia, S.C.Hogan approached Post No Bills, a leading promotional company,to help create a fun and useful promotion that would not onlyget salespeople excited about Aruba, but would get them usingthe company’s Intranet for the sales organization.

SOLUTION: Doreen Sullivan, president of Post No Bills, worked with MikeReilly of Sweepstakes Online to develop an interactive ArubaSweepstakes promotion. Colonial salespeople received in themail a scratch-off game card that promoted Aruba and gavethem the opportunity to win one of 51 prizes if they had thewinning numbers. They developed a tiered prize system thatincluded: one grand prize, a double island hammock swing; and50 second-place prizes, a

lightweight island hammock. The Aruba Sweepstakes gamecard included instructions onhow to log on to the company’s salesIntranet and enter their prize numbers from the card into theonline sweepstakes system. Salespeople who won were notifiedwhich prize they won. Those who didn’t win received a motiva-tional message encouraging them to stay on course to qualifyfor the trips. The sweepstakes web site and all sweepstakes pro-motional pieces were customized to match Colonial’s “Get SweptAway” theme for the incentive trips. Post No Bills concepted,designed and developed all elements of the “Get Swept Away”campaign. Sweepstakes Online developed the sweepstakes website, the back-end game and winner notifications.

RESULT: Colonial had a 48 percent response rate from the sales organiza-tion. When Colonial conducted Intranet promotions in the past,response rates were usually around 20 percent. Colonial cantrack how many salespeople log on to the Intranet, who they

are, correlations in activity and sales. This tracking willallow the company to measure total effects on sales

once future sweepstakes promotions are complete.In addition, the Aruba Sweepstakes has gener-

ated a lot of excitement among the salesorganization. The Incentives and Awards

department continues to receive daily callsasking for more sweepstakes promo-tions and for information on confer-ence qualifications. Both Post NoBills and Sweepstakes Online areproud affiliates of CorpLogoWare LLC.

In spring of this year, Mike Reilly ofSweepstakes Online and Doreen Sullivan of Post No Bills helped develop a successful campaign for Colonial Supplemental Insurance.

Industry: Insurance

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BR: This issue is all about loyalty and creative market-ing. Can you give our readers some examples of howSweepstakes Online can help an organization build loyalty?

MR and CS: Sweepstakes help companies build consumerloyalty in a number of ways:

1. Call to action:Sweepstakes are great at getting a consumer’s attention

and capturing their interest by adding a motivational ele-ment to a given campaign. While a standard advertisingmessage will have a call to action, a sweepstakes gives theconsumer a reason to act by offering them something inreturn for their time. Adding a sweepstakes to a product orwebsite campaign can increase response rates by as muchas 150% - whether marketed to new customers or existingcustomers. As an example:

From a customer’s perspective, what would be moreappealing if you were reviewing multiple advertisementssearching for a car rental?

A).“Check out our great car rentals rates!” OR B).“Check out our great car rental rates and you could win a

trip to the Caribbean!”

2. Entry FormSweepstakes are an excellent tool for collecting a market-

ing list where consumers have given their permission to becontacted further regarding the company’s products or servic-es. In addition, the sweepstakes entry formcan be used to ask specific question to helpmarketers further understand their cus-tomers’ needs. Once this list is built, compa-nies can build loyalty by:• Offering regular chances to win prizes

based on a desired response• Similar to loyalty point-programs, additional

sweepstakes entries can be awarded forcertain actions

• Promoting specific offers based on con-sumer feedback

• Sweepstakes can also be used in con-junction with existing loyalty programseither as an incentive to acquire newmembers, prize incentives for existingmembers or both.We make a point of understanding our

client’s marketing objectives and ensurethat their sweepstakes is built with thisin mind. More importantly – we ensurethat they have a marketing program inplace for once the sweepstakes is built.

Sweepstakes are great at getting a consumer’s attention and capturing their interest by adding a motivational element to a given campaign.

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BR: Can you giveour readers some examples of

how Sweepstakes Online can help readers bemore creative in their marketing programs?

MR: This depends on what the objective ofa client’s sweepstakes campaign is. We providedifferent solutions for different clients.

If the objective is to drive traffic to an onlinecampaign, make the prizes exciting. Huge prizesor many smaller prizes work best. Combiningboth by using the huge prize such as a vacationto Europe with smaller prizes such as hotelstays works very well in a campaign. Spread outsmaller prizes over a period of time – for exam-ple, give away monthly prizes and the largeprize as the grand prize at the end.

Companies should also consider adding aviral component to their campaign to increaseexposure. On average from what we have seen,an entrant will refer 2-3 persons to a sweep-stakes campaign, and as an incentive theyreceive additional entries.

If the objective is to ultimately drive moresales, include a coupon, discount or freebie aspart of the campaign or after entry. Even thoughsweepstakes campaigns require no purchase forentry, you can give entries for purchases as longas there is a free method of entry.

CS: Tailoring the prizes to fit a given theme or

to tie in with the product/service is also impor-tant. For example, one of our clients sweepstakestheme was “A view from the top” referring to anew program they were offering their distributorsallowing them to have full control of their cus-tomer retention management programs. Theprize pool included a trip in an Air Balloon andthe first 1000 entries each received a brandedwooden glider.

Sweepstakes Online specializes in customsolutions and one of our favorite parts isbrainstorming with clients on how to beststructure their program.

BR: Who are the principal clients ofSweepstakes Online?

MR: The North Face, Shula’s Restaurants,Microsoft, Smith and Noble, Omaha Steaks toname a few.

BR: When it comes to understanding yourclient’s target audience what processes doyou use?

CS: Often we will reference past campaignsthat may have targeted a similar audience to seewhat we can learn. It is also a matter of askingthe right questions, as our clients know theiraudience best. From there we work with clientsto establish the best ways to reach this audience.

BR0805_Section01 7/22/05 12:51 AM

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BR: How do your marketingtactics for Sweepstakes Onlinediffer from standard promo-tional marketing procedures?

CS: From a legal standpoint–weneed to make sure that all sweep-stakes advertising materials containthe right information and elements tosatisfy individual state laws. We offercomplete legal services to our clients so that theycan satisfy these requirements while keeping theircreative message intact.

BR: Who provides/purchases the merchandisefor sweepstakes winners and how is that mer-chandise sourced?

CS: Sweepstakes Online is a full-service solution provider so we can provide clients withcreative ideas based on experience and on theclient’s objectives. We also have access to excellentresources in branded merchandise and travelpackages and can locate and secure any type of prize. In addition, Sweepstakes Online canprovide fulfillment services for distributing prizesto winners.

BR: What merchandise is the most popularwith winners? Why do you think that is?

CS: We’ve seen popularity with state-of-the artelectronics such as iPods, PDAs, TVs, satelliteradio devices with all demographics. Vacationprizes are also very popular, especially with exoticand unique destinations and packages that are all-inclusive.

In a lot of cases, consumers are happy to winanything of value. But what attracts them to certainprizes over others is based on their specific inter-ests. A mother of 3 is likely to be more attracted toa Spa Getaway sweepstakes than a constructionworker would. This is why prizes are such animportant element of a sweepstakes in reachingthe target audience.

BR: What hasbeen the most suc-

cessful promotionalcampaign that Sweepstakes Online

has been a part of? How did it work?MR: The most successful and popular promo-

tional campaigns we’ve engineered are what wecall our Partner Sweepstakes. Our PartnerSweepstakes allow multiple clients to participatein one sweepstakes campaign in a group effort inan online campaign. The advantages for our clientsare threefold:

1. Clients share the expense of building the sweepstakes and prizes;

2. Clients all market the campaign from their website which drives more traffic to the campaign;

3. Clients all get an opportunity for entrants to opt-in to receive information and clients canmarket a discount or incentive on the thank-youpage to the consumer after the entrant hasentered the campaign.

So for example, if there are 6 clients participat-ing in the campaign, the cost of the sweepstakesand prizes is 1/6 what it would normally be. Inaddition, all clients are contributing prizes to thecampaign; providing a bigger and more uniqueprize pool, as prizes are usually specific to theclients. Probably the biggest advantage to clientsis the marketing power of the campaign. All clientsmarket the campaign off their home page and intheir opt-in newsletter. In addition, SweepstakesOnline markets the campaign off its website,www.sweepstakesonline.com. The combined marketing effort of all clients drives a significantamount of traffic to the campaign, which allows

BR0805_Section01 7/22/05 6:25 PM


clients to pick up new members via opt-in to their servicesand products. A recent campaign included Omaha Steaks,cooking.com, art.com, and hats.com to name a few.

BR: Do you use any direct marketing strategies to reach your audience? If so, which ones have been the mostsuccessful?

CS: Yes some of our campaigns will have a direct mar-keting component. This works great as a tool for gettingcustomers to visit a web site or retail location. For exam-ple: A car company who wants to increase sales may sendout a direct mail piece to a marketing list of prospects whoalready have approved credit. The piece could include agame piece such as a key that the recipient takes to a localdealership to see if they have won. Or a company wantingto drive it’s existing customers to their web site can mailout a game piece like a decoder card encouraging them togo to the web site and see if they are an instant winner.

BR: How do you use promotional merchandise toincrease interest in Sweepstakes Online?

CS: In addition to using promotional merchandise asgame pieces and/or prizes, a great way to increase interestin a given sweepstakes or contest is by offering a reward tothe first 1000 entries (or other quantity). For example, in agolf themed sweepstakes, the company could offer a freeset of imprinted golf balls for the first 1000 entrants. Thiscreates a strong sense of urgency to get consumers to enterthe sweepstakes as soon as possible plus it offers a guaran-teed reward over and above the sweepstakes prizes.

BR: Do you use promotional merchandise to rewardemployees or thank clients?

CS: We use promotion products on our consumer side asan incentive for purchasing our services such as a brandedfortune ball or deck of playing cards. We also include mer-chandise in our notification documents to winners andthank-you notes to clients.

CASE STUDY

In a Christmas Partner Sweepstakes, one of the partners who participatedexperienced the following results:

• Cost: $1,500.00• Sales: $29,585.46• ROI: $28,085.46 – 19 times return on investment!

In addition, they collected 28,000 new names, which they are continuing toemail successfully to. So, there is an additional lifetime value of theseadditional names collected

In addition to using promotionalmerchandise asgame pieces and/orprizes, a great way toincrease interest in agiven sweepstakes orcontest is by offeringa reward to the first1000 entries

BR0805_Section01 7/22/05 12:51 AM


BR: What do you see as the future of Sweepstakes Online?MR: Sweepstakes Online continues to expand both its con-

sumer and B2B solutions using the latest technologies availableas well as from client and consumer feedback.

For example, last year, we launched services to build text mes-saging platform campaigns (www.textin2win.com). Participantssubmit entries by sending a text message to a specified shortcodeusing their wireless phone. Entries are received and recorded in adatabase for drawings, reply-backs and future communications.Winners can receive immediate gratification in instant win games.

Text messaging reply back can be utilized by clients. TextMessaging reply-backs are instant messages sent back to each par-ticipant via mobile text messaging, after entering your company’ssweepstakes or contest. Reply back messages can be a standardmessage or can include a sponsors message or coupon driving con-sumers to a web site or retail location. This is the next big thing incommunicating with customers and Sweepstakes Online is alwayslooking ahead to new ways sweepstakes can be incorporated withthe latest technologies.

BR: What are some key strengths of SweepstakesBuilderservices that differentiates you from your competitors?

MR: SweepstakesBuilder is differentiated from the competi-tion by several of its key components: • Full service solutions to accommodate any size campaign

• Flexible options tailoring each campaign to the client’s specificobjectives

• On-going consultation and planning from knowledgeable andexperienced incentive program specialists

• Sophisticated online development and technical services• Complete legal services and administration• Wide range of turnkey packages and custom services• Very competitive pricing

BR: What can sweepstakes do for our readers?MR:

• Increase response rates by as much as 150% over traditionaladvertising.

Recommend prizepools with a largequantity of imprintedmerchandise for theirclients to create strongparticipation and maximize branding.

BR0805_Section01 7/22/05 12:52 AM

• Provide incentive(s) for driving offline and online traf-fic, increasing sales, collecting marketing data andbuilding opt-in marketing lists.

• Create strong brand recognition using imprinted mer-chandise as prizes and consolation giveaways.

• Offer creative flexibility because Sweepstakes can betailored to meet specific objectives.

BR: What type of marketing objective do companies usually have when running a sweepstakescampaign?

MR: We find that the most common marketingobjectives are:

• Increasing store and web site traffic• Increasing or building email, mobile and direct

mail permission-based marketing lists• Provide coupons and other sales incentives• Collect relevant data on customers and potential

customers• Create opportunities for co-branded sponsorships

and partnerships• Develop their corporate image using unique pro-

motions that give something back to customersand potential customer

• Can be tied in with existing loyalty programs

BR: What are some ways to use promotional prod-ucts with sweepstakes and loyalty?

CS: We would suggest the following:• Recommend prize pools with a large quantity of

imprinted merchandise for their clients to createstrong participation and maximize branding. This alsogives consumers more prizes and chances to win.

• Incorporate other incentives such as premiums,coupons and rewards points as part of sweep-stakes participation

• Recommend a variety of imprinted merchandise togive away as prizes and rewards for additionalbranding

• Use promotional merchandise as game pieces aspart of the sweepstakes entry such as scratchcards, decoder cards, reward cards, keys etc…

BR: Mike, on a personal note, what was the bestsweepstakes you ever entered and won?

MR: Wow! That’s a tough one I don’t know whetherit would be the trip to the Super Bowl or the trip toKauai! Both were fantastic prizes! •

For more information about Sweepstakes Onlinelocated in Gig Harbor, Washington visit their websites:

BR0805_Section01 7/22/05 6:04 PM

28 Brilliant Results | August 2005 www.brilliantpublishing.com28 Brilliant Results | August 2005 www.brilliantpublishing.com

IT BEGAN AS A STRUGGLING startupcompany in an industry of fierce compe-tition. It is now one of the most enviedcompanies in the country.

It overcame giant competitors by beingthe most profitable in its industry. It expe-riences the lowest employee turnover ratein its industry, yet it compensates its peo-ple the least.

It is ranked #1 in customer service. It wasrated one of the top places in America towork by Fortune Magazine.

Employees of this company love theirjobs and love coming to work. They areranked #1 in airline safety and #1 in on-time arrivals. The accolades go on.

This company thinks differently. Whathas Southwest Airlines figured out that therest of us haven’t? This company does notfocus simply on “business techniques,” itfocuses on loving its employees, recogniz-ing them, and having fun playing games

and celebrating success along the way.They have found that techniques andrecognition must work together. Not only istheir amazing success going down in histo-ry, they have become the most envied com-pany in the country. They have indeed fig-ured out the basics to business that someof us have overlooked in our busy lives.

In our quick-fix, instant-gratificationsociety, we have fallen in love with

BY BUCK PEAVEY

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Brilliant Results | August 2005 29www.brilliantpublishing.com Brilliant Results | August 2005 29www.brilliantpublishing.com

“This company does not focus simply on “businesstechniques,” it focuses on loving its employees, recognizing them, and having fun playing gamesand celebrating success along the way.”

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Southwest figured it out.Now, it’s your turn. It’s time

to tie this proven thoughtprocess into creating the ulti-

mate behavior-based safetyenvironment.

I believe in the concept behindbehavior-based safety. It is crucial

to building a truly proactive safety environ-ment. But in order to get it to work, you must shift

your focus to loving your people and using techniquesto start creating a fun environment at work by recogniz-ing and rewarding your people whenever they accom-plish their goals.

Incentive programs can help you do this. Incentiveprograms have been called gimmicks, payoffs, and evenbribery. The critics can call them what they want, butincentive programs have proven their ability to create afun culture in which people want to come to work. Moreimportantly, they are a tool that shows employees thattheir employer cares. Combining these incentives withthe techniques of behavior-based safety is the answerthat has been proven to make a positive impact.

The Basic IngredientsThe basic behavior-based/incentive ingredients are

these. Make sure they are in place first.

1. Choose merchandise. First things first: get the carrot right. Goodyear Tire

ran an extensive study on merchandise vs. cash incen-tives. Merchandise won out twofold. When you ask yourpeople what they want, the answer will be cash. Whenyou ask the experts what really works, it is merchandise.

techniques. Whether it’s gettingin shape, quitting smoking, creating

better-quality products, or motivating employees towork safer, we want techniques that are simple, fast,and effective. Yet business systems that are technique-driven continually fail to inspire and motivate people.Techniques have little meaning for those who have notbeen inspired to use them.

That is why so many TQM, empowerment, reengi-neering, and yes, even behavior-based safety efforts fail.These techniques lack important and essential ingredi-ents like spirit, excitement, fun, love, and recognition.Without these ingredients, techniques are simply asophisticated and complex form of manipulation inwhich we exploit our employees. The tragedy and ironyin all this is that we’ve got it backward. This is one ofthe reasons more and more people are not happy atwork. Employees will give it their all if they feel loved,appreciated, and recognized. It is that simple. When yougive, people will give in return. This is not science; youwill not find it in a book (unless you are looking in theBible). It is the big picture of human nature.

When people feel they are recognized for their ideas andhard work, they then can make the sacrifice to help others.

They then also express a willingness to genuinelyand enthusiastically embrace new technologies likebehavior-based safety, TQM, empowerment, and others.

“Employees will give it their all ifthey feel loved, appreciated, and recognized. It is that simple. Whenyou give, people will give in return.”

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2. A flexible awarding vehicle. Traditional programs are structured to give a person

who goes a year without an accident an award such as aclock radio. In order to attach incentives to rewarding thebehavior that prevents the accidents, you must have aflexible delivery vehicle that can be awarded the minutethe prevention behavior or observation takes place, yet

still building up to the end result mer-chandise award. Game

cards that contain points toward merchandise haveproven to be an exciting vehicle. They can be hand-ed out on a weekly or daily basis, instantly recog-nizing employees as they achieve safety behavioracts or observations. If the game cards aredesigned right, they should have a trading compo-nent where employees are encouraged to tradecards with each other. This further boosts programawareness. Having a flexible awarding vehicleallows for constant frequent reinforcement, which isa key component to a program’s success.

3. An encompassing campaign. A campaign that communicates and drives the

program, tying it all together, is called for.Southwest Airlines is famous for creating fun cam-paigns for everything it does. People love games(adults, too, not just kids!). The campaign theme

should bring everything together: the awardingvehicle (game card, certificate, etc.), merchan-

dise catalog, program posters, newsletters,communication pieces, behavioral obser-vation reports, etc. People rememberthings in life that are constantly in frontof them, things that are fun and a ben-efit to them.

4. Simple administration. Face it, complexity does not work.

If your entire program is not easy foreveryone to understand, you are head-ed in the wrong direction. If the pro-gram is tough for you to administer, itcould fail as well. Keep it simple and

achievable.

5. Well-thought-out behav-ior-based program criteria. You first must identify the

behaviors that will affect the majorityof incidents. Your program then must

be aimed at gatheringinformation/obser-vations and receiving feedback from

employees. Employees must then be award-ed for these observations as well as feedback

and, of course, following the accident preven-tion criteria. Again, keep it simple.

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Does Combining Work? Real ExamplesIncentive programs, in general, work. Thousands of

companies over the decades have reaped the benefitsof them. They have proven to help reduce accidents,boost company morale, decrease turnover, savemoney, and most importantly, save lives. But do theseprograms hide the reporting of injuries?

They don’t if the program is structured correctly.The program needs to be based on your employees’behavior - not just the end result. Time after time,

when safety/behavior incentive programs contain thefive essential ingredients stated here, the end resulthas been positive.

International Paper Company combined the rightingredients recently in a flexible game card incentiveawards program with its “Safe Behavior Process” behav-ior-based program. The company’s process used a generalobservation form to recognize and track safe and unsafebehaviors observed by peer employees. Before adding theaward component, Allen Sherrick, International Paper’sBehavioral Management Team leader, stated, “We foundit was hard to get employees to actively participate in theobservation process. We needed something to use as amotivational tool to show our appreciation for taking con-trol of this employee driven process.”

By combining the two approaches, the behavior-based observations rose fivefold and employees “havetaken ownership of all activities,” Sherrick said. Theplant then went on to have its lowest number of inci-dents and closed out the year with the best safetyrecord in plant history.

After running a game card-based program withwell—thought—out criteria, a Coca-Cola bottling com-pany spokesperson said, “Annualized, our incidentswere trending toward 70. After implementation of our(game card) incentive program, our results trended toan annualized number of 43 incidents. Lost work dayswere trending 216 days and were reduced to 82!”

Slack Chemical Company also used the essential ele-ments. Their lost workday incidents were cut by 67% inthe first 12-month period. Slack incorporated a proactivesafety behavior feedback component to its game cardprogram. The employees’ accident prevention feedbackmore than quadrupled during the same year. Slack’sHR/Safety manager said, “I have evaluated many safetyincentive programs and participated in several. I ampleased to tell you that (this one) is the most successfulof those that I have been involved in. I would recom-mend this approach to anyone.”

Boise Cascade, like Southwest Airlines, believes increating a fun working environment for safety. Thecompany implemented a fun awards campaign thatworked in tandem with its own behavioral-based safe-ty program. The focus was on awarding tradable gamecards (containing points toward merchandise) for safebehaviors. Employee involvement and interactionbetween workers and supervisors also were awarded.The program director said, “This provided opportuni-ties at regular intervals for supervisors to make specificone-on-one contact with each of their workers.” Again,the program proved to be a great return on invest-ment. In one year, Boise Cascade showed a 27.5%decrease in recordable injuries.

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Midwest Thermal Insulation is yet another example.This company’s safety director said, “This program hasgotten everyone to communicate more openly aboutsafety and concerns that they have about safety-relateditems on a daily basis, out in the field. Our recordableinjuries are down more than 65% compared to last yearat this time. What an accomplishment! I truly believethese programs work.”

Following Their ExamplesSouthwest Airlines’ secret can

apply to the safety arena, too.Combining behavior-based tech-niques with your safety incentiveprogram has proven to work. Butfirst, make sure you have all thebenchmarks for success in place.• In order to truly motivate behavior,

offer a carrot that people want, notone they need. Use merchandise,not cash.

• Use a flexible awarding vehiclesuch as a game card, allowing fre-quency. You must recognize andreward frequently.

• Keep your program simple.Complexity can water it down ifyou are not careful.

• Build an encompassing campaignthat constantly communicates anddrives the entire PR. Last and mostimportant, build a safety culturethat is serious business. Make itfun to be safe.

Southwest Airlines should beapplauded for achieving true team-work participation and fun in everyarea of the company. BoiseCascade, Coca-Cola, InternationalPaper, Slack, Midwest ThermalInsulation, and thousands of othershave made a huge impact in theirsafety programs with the samebasic approach.

Each one of us may not be in aposition to affect every area of ourcompany, but we can start with our approach to safety. Remember,don’t love techniques and use people. Love and reward your people and use techniques. Attachspirit, excitement, fun, love, andrecognition to everything that you do.

Now, go make your company the envy of your industry! •

Buck Peavey is President/CEO of Peavey PerformanceSystems, a full-service incentive company based inKansas City. For more information on this incentivecompany visit them at www.peaveyperformance.com orwww.safetyjackpot.com.

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IT SEEMS TO SHOW UP in the mailbox nearly everyday: a credit card offer promising zero percent interestrates, free airline travel rewards or scratch-and-winpromotions like Capital One’s latest — an offer to wina private tropical island.

Credit card marketers were on track in 2004 tobreak the industry record for credit card mail solicitations.According to Andrew Davidson, vice president ofcompetitive tracking for Synovate, a Chicago-basedresearch company, U.S. households will likely receivemore than 5 billion credit card offers this year. Butdespite this flood — an average of six credit cardoffers sent to American households each month —the response rate is only about one-third of 1 percent,says Davidson. The rest land in the garbage. “That’sright on the borderline of losing money,” says authorand marketing expert Seth Godin. Typically, a successful direct marketing campaign gets about a 1 percent response.

The Battle Over“Share of Wallet”A look at the marketing and advertising ofcredit cards in an increasingly saturatedmarket and the techniques being used torecruit new customers.

BY ANDREW BECKER

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To counter the dismal response rate problem, mar-keters keep ratcheting up aggressive and expensivemarketing, advertising and promotion campaigns.CardWeb CEO Robert McKinley, who has tracked thecredit card industry for 18 years, expects that 2004 willmark the first time the major credit card networks (Visa,MasterCard, Discover and American Express) will top the$1 billion currently spent on advertising. Add to this the$4 billion spent on direct mail marketing costs and theresult is at least $5 billion of marketing for this year alone,says McKinley.

Zeroing In on the New CustomerSo who’s sending all of these offers? Ninety percent of

the direct mail marketing comes from the top 10 credit cardissuers. And a lot of these issuers are monolines, like MBNA,which don’t have physical branch offices. Lacking this, saysDavidson, direct mail is their “major channel.”

In those direct mail campaigns, the companies spend onaverage about $80 to market and process each new cus-tomer, according to R.K. Hammer, a privately-held bank cardadvisory firm. More than half of these offers involve a rewardor a rebate incentive. And, in recent years, banks are copyingwhat monolines like MBNA did so successfully in the 1990s:They offer products with built-in “stickiness” — affinity cards— to entice consumers. While banks compete on price withzero percent and teaser offers, they know that to keep thosecustomers, they have to rely on more.

“It’s the competitive nature of the mailbox,” Davidson says.“We’re seeing more and more of these. And they’re more and morecreative in reward and rebate schemes.” He ascribes the currentmarketing increase to a modest improvement in the U.S. economyand the fear of a potential jump in the prime rate, which has spurredissuers to hype the opportunity to take advantage of current lowrates before it’s too late.

Getting to Know YouBut the marketers aren’t just stuffing everyone’s mailboxes with the

same offer. As they increasingly hone in on an individual’s gender andspending habits, different people in the same household get different,“customized” solicitations. It’s all due to the information technology rev-olution and the data that now can be mined from networked computerdatabases. (And it’s certainly a long way from when Bank of America,

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p71 8/19/04 2:13 PM Page 1


back in 1958, first issued its credit card — later tobecome the VISA card — by simply mailing out unsolicit-ed cards to roughly 60,000 residents of Fresno, Calif.)

Before the arrival of networked computer databases,credit cards marketing was based out of individual bankbranches. When risk-based pricing came into play — thepractice of charging different interest rates to differentpeople based on their credit risk — the monolines seizedthe opportunity to offer lower annual percentage rates(APRs) through direct marketing, thus offering theircards to a far larger population.

What propelled this wider marketing was the use of“attributes” to identify and target consumers.Identifying particular attributes of a potential customerhad started in the late ‘70s and early ‘80s — the daysbefore national credit bureaus — with direct mailingsfrom banks to their existent customer base. Back then, inorder to target potential customers outside of their base,banks and credit card companies turned to publicrecords like marriage licenses, new home mortgages anddata from gas card usage to identify people who mightbe predisposed to obtain credit.

With the boom of information technology during the1990s, the marketers were able to start drawing on dataculled from the national credit bureaus –Experian,Equifax and TransUnion. Marketers created mini-profilesof existing and potential consumers based on people’sspending habits, credit history, address and tendency topay bills on time (or not). This information was crucial increating ever more sophisticated marketing techniques.

The Early PioneersThe credit issuer Providian was one of the first com-

panies involved in experimental marketing based onattributes. The company developed mathematical mod-els that helped Providian “find” the right customers. Byblending marketing response and credit history in itstesting, Providian used gender and geography to selectthe precise advertisements and mail offers.

To see whether testing worked, Providian marketedto non-traditional populations who do not use creditcards or banking services (known in the industry as the“unbanked” population). Testing allowed Providian tolook at two different individuals with the same credithistory — and who maintained the same revolving bal-ance — to see which person would most likely maintainhis revolving balance. By analyzing when and how cus-tomers paid over a select time period, Providian couldtrack how consumers who once paid their entire balancewould start to pay less and less each month, then the

Bank of America, back in1958, first issued its credit

card — later to becomethe VISA card — by

simply mailing out unsolicited cards to

roughly 60,000 residentsof Fresno, California

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minimum payment, and then fallbehind. That’s how they determinedwho’d be more likely to default.

Capital One was another pioneer inmarketing cards to consumers throughthe intensive use of raw data and com-plex computer-based modeling, accord-ing to Chris Meyer, CEO of MonitorNetworks in Cambridge, Mass. and theco-author of It’s Alive, which features acase study of Capital One based onextensive interviews with the company.By identifying lower-risk individuals inhigh-risk groups, Capital One was ableto market to reliable consumers othercompanies wouldn’t touch, says Meyer.In just six years, Capital One became thesixth-largest credit card issuer in thecountry. “When others were attackingthe market with blunt instruments,Capital One used a scalpel,” says Meyer.

Capital One was able to predict con-sumer response through models of tar-geted markets; then it would test thesepredictions with tens of thousands ofproduct offers. In 2001, the companytried more than 60,000 separate teststo identify what the market wanted bywatching which offers customers wereresponding to. This told the companywhich of the offers to roll out morewidely. It also provided insight intowhat would not work, allowingupdates for the next cycle.

Credit issuers also monitor whethera consumer’s purchases go down overa certain time period — a processknown as “diminishment,” that couldlead to defection to another credit cardcompany. If the signs are there, mar-keters might then send the customernew offers. They know the consumersmust be using different cards becausethey aren’t using theirs.

The “Golden” Road to the WalletOver the last 40 years, the advertis-

ing of credit cards has evolved alongwith the marketing and the ads havemirrored credit cards’ growing avail-ability. Back in the 1960s, AmericanExpress ads targeted the travelingbusiness class with lines such as“Away-on-business-miss-your-wife-blues?” and “Another lonely businesstrip?” The message was, an American

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Express card cured the loneliness that “comes with theterritory.” About the same time, in another magazinead dating from 1965, American Express answered thequestion “Are credit cards for show-offs and statusseekers? Not this one.” But just three years laterAmerican Express began advertising its gold card withad copy that read, “at a time when everyone seems tobe giving away credit cards…”

According to CardWeb CEO Robert McKinley, 20years ago, a gold VISA or MasterCard did mean pres-tige. With an annual fee of two to two-and-a-half timesa standard card’s fee, they offered a minimum creditline of $5,000 and various perks. And they were notavailable to just anyone. “Gold was perceived as ‘afflu-ence’ at that time, given the marketing of theAmerican Express gold card,” says McKinley. “Therewas very little color choice in the market.”

But then, starting with the deregulation of thebanking industry in 1978, the advertising focus turnedaway from prestige to “merchant acceptance,” saysMcKinley. And in the 1990s, as competition intensified,it shifted to pricing and perks.

During the past five years the marketers’ focus hasbeen on fraud protection and responsible card use. Inrecent years, for example, Citibank has aggressivelymarketed itself as a kinder, gentler credit card issuer.Its latest ad campaign, dubbed “Live Richly,” featureslittle bits of wisdom on television, billboards, bus shel-ters and phone kiosks. “You are not silver, gold, or plat-inum,” Citibank tells potential customers. “You areyou.” Mercedes Cardona, financial editor for the week-ly trade magazine Advertising Age, says warm fuzzycampaigns like Citibank’s are a response to consumers’frustration with bank giants like Citibank’s parent com-pany Citigroup, and the perception that such corpora-tions care little about cardholders.

Most recently, with the economic downturn overthe past few years, banks have come to realize thatevery customer counts, Cardona says. And this hasspurred the personal touch, particularly with creditcards. American Express designed its Blue Card for ayounger, hip market. Clear or translucent cards areaimed at Generation X. Some cards issued in black —be it the innovative American Express Centurion orthe VISA Infinite or Signature — are what RobertMcKinley of CardWeb calls the “snob” cards. Cardslike MBNA’s Quantum can carry credit lines up to$250,000, with some going as high as $1 million —

“so, even if the private seller of a rare collectibledoesn’t accept credit cards, the Quantum Customercan simply write an access check,” as one pressrelease states. These cards come with panoply ofbenefits, like concierge services, access to private jetsand seven-figure travel insurance.

Today, consumers can even customize their owncredit cards. “Have it your own way,” is how Cardonadescribes the options, comparing the process to “get-ting a fast-food burger.” At Bank One’s Web site, forinstance, customers can choose from an affinity creditcard menu, offering everything from The AmericanKennel Club and the Massachusetts TeachersAssociation to Yahoo and Disney. If none of the affini-ty cards grabs the customer’s attention or pursestrings, there are more than three dozen “unique carddesigns” to choose from, including cute kittens, allsmiles and serenity.

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First National Bank of Omaha is among those thathave taken personalized card design to another level.Cardholders can choose their card’s background froma personal photo, be it of a child, pet or nearly any-thing that comes to mind, and they can design thecard online. Part of the personalization is allowingcustomers choice, Cardona said. But a lot of it has todo with getting customers online and lowering thecost of banking.

The New Growth SectorsDuring the 1990s, with much of the market saturat-

ed or nearing saturation, credit card companies beganto look at two demographic groups on either end ofthe financial scale they previously had avoided: “sub-prime” consumers who weren’t perceived as credit-worthy, such as students, young people, and otherswith poor or no credit history; and affluent customerswho didn’t need credit (and who now are being tar-geted with the aforementioned customized cards).These two groups have become the biggest growthareas for the companies, says CardWeb’s McKinley.According to CardWeb, there are some 25 millionAmerican households who do not have a bankingrelationship. Credit card issuers went after this mar-ket vigorously in the 1990s, charging high interestrates and fees, and extending credit to millions ofpeople. However, it was a bust for issuers and it stillhaunts the industry, says McKinley.

Credit card issuers also began pursuing college stu-dents, a previously unattractive market because stu-dents don’t have a credit history and many don’t havea steady income. But by the mid-1990s, Congress washolding committee hearings on the impact that “kiddiecredit cards” had on young people. And following a lotof bad press on the growing number of students indebt, some universities have started regulating or ban-ning credit card marketers from making campus visitswith offers of free t-shirts in exchange for setting up anew account. But the companies have returned to the

sub-prime market lately, targeting them with increas-ingly popular prepaid cards. The recently introduced“Hello Kitty” card and another card featuring the mugof pop music star Usher are evidence that pre-teensand other sub prime consumers are no longer off limits.

The Perk WarsSince the mid-1980s, when Discover introduced the

first cash-back product, credit card marketers havebeen racking their collective brains for perks to enticeconsumers. AT&T launched its no-annual-fee-for-lifeUniversal Card in 1990, which eventually drove annualfees out of the market, according to McKinley.Although industry experts thought the perk warswould be over by now, they rage on, he says.

The hot things now are prepaid cards and aroundthe corner, the “super” smart cards, which can carryinformation far beyond just listing your account bal-ance. Such cards can track and manage rewardspoints; store a cardholder’s medical information; pro-vide access to subways, buses and even buildings; orbe used as either a credit, debit or prepaid card, so youcan pay now or later.

Part of the reason these haven’t as yet caught on inthe United States is privacy concerns. But if Americansare worried about who knows what about them,they’re a little behind. Credit card companies knowwhere you live, who you are and what you want. Andas competition intensifies, they’re willing and able tospend the money to find out more.

As America increasingly evolves towards a cashlesssociety, paradoxically the old line “Don’t leave homewithout it” is now not just a choice, it’s arguably anecessity; one can’t rent a car for the weekend or a foreign film down the block without a credit card. Thecredit card also has become less of a discretionary pur-chasing tool and more of a financial management tool.Cards are frequently used as bridge loans betweenpaychecks in the form of costly cash advances, andthey have, rightly or wrongly, supplanted savings

“As America increasingly evolves towards a cashless society, paradoxicallythe old line “Don’t leave home without it” is now not just a choice, it’sarguably a necessity; one can’t rent a car for the weekend or a foreign filmdown the block without a credit card.”

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accounts as the source of rainy day funds. Offeringubiquitous convenience, paying with plastic over cashalso gives consumers the rewards they’ve becomeaccustomed to — from airline miles to discounts onmerchandise to cash back and rebate offers. i

But what consumers may not know is how thismigration to credit cards influences the way they spendmoney. “Since the 1970s, there has been growing evi-dence supporting the frequently heard conjecture thatcredit cards encourage spending,” wrote DuncanSimester, a professor specializing in marketing atM.I.T.’s Sloan School of Management, in a study he con-ducted. Simester says research in the 1970s and 1980sshowed that people who own more credit cards makelarger purchases per department store visit, tip betterat restaurants, and are more likely to underestimate orforget the amount spent on recent purchases. But untilrecently, it wasn’t known just how much the method ofpayment influenced consumers’ willingness to pay. In2000, Simester embarked on an in-depth study of whathe calls the “credit card premium” to see whether con-sumers really are willing to spend more for a productwhen using a credit card. The study found that “will-ingness to pay” can be increased up to 100 percentwhen customers use a credit card rather than cash. ii

Consumers may not even be aware that they dothis, but even when they are, says Simester, they can’tstop themselves from doing it. “For these types of

effects, we find that even when we tell people aboutit, they still exhibit the phenomenon. What mechanismis driving it is unclear. We’re still scratching our headstrying to work out why people are doing what theyare doing. The findings are intriguing.” That apparentdisconnect also relates to the way consumers describetheir own spending habits. An April 2004 financial lit-eracy study for Bankrate.com by RoperASW, a globalmarket research firm, found that 75 percent of creditcard users report that they do not make any majorpurchases on credit when they know they won’t beable to pay it off immediately. That study — clearlycontradicted by industry statistics and other polls —underscores a level of “debt denial” in this country,says Greg McBride, senior financial analyst atBankrate.com. “We see a big gap between attitudesand action,” McBride says, as well as a reluctance toadmit to having debt and how much. “People weremore apt to disclose their age, weight and yearlyincome than disclose the amount of credit card debtthey had,” he says. iii •

Andrew Becker is a freelance writer based inBerkeley, Calif. He has written for the San FranciscoChronicle, the Dallas Morning News, the Boston Globeand PBS/Frontline. Article Reprinted with Permission.Original Article was a part of “Secret History of theCredit Card” at www.pbs.org/frontline/shows/credit/

i,ii,iii These sections written/information provided by Marlena Telvick

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THEY ARE PLASTIC, they are smart, they are thermal, they are mag-netic – they are loyalty cards and if you do not have at least one, youare in the minority. According to Jupiter Research, more than 75% ofconsumers have at least one loyalty card and fully one-third have twoor more. Add all the points up for this and giveaways for that and it isobvious that the business’ appetite for loyalty has gone from novel tocraze to de rigueur. With U.S. businesses spending, according toGartner Inc., $1.2 billion on loyalty programs in 2003, and though notforecast to keep increasing at the whirlwind pace of the 1980s – 1990s,these programs are no longer about green stamps and toasters.

While most loyalty programs pay off on the bottom line, accord-ing to a recent study by members of the Stanford and ColumbiaUniversity Graduate Schools of Business, the reason why is oftennot what a business might expect. In a recent study, they testedloyalty programs via the use of “frequent diner” programs thatwould reward student participants for their patronage at variousuniversity dining locations. One group was required to eat 12 sand-wiches to earn two movie tickets, while the other group wasrequired to eat 12 sandwiches and 12 orders of sushi to earn theirtickets. So, the second group had to do much more to receive thesame reward. Participants were also asked how much they likedsushi relative to the typical student. The result? Students wholiked sushi were much more likely to join the “frequent diner” pro-gram that required them to purchase both 12 sandwiches and 12

Satisfying the Loyalty AppetiteSatisfying the Loyalty Appetite

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orders of sushi. According to the researchers, this result illus-trated a common mistake that consumers make – if they see anoffer that seems to fit them better than other consumers, forexample, a program that requires sushi-lovers to eat sushi, that fitcompletely colors their assessment of how attractive the offer is.Thus, by creating what appears like personal fit, marketers canattract consumers to frequency programs and many other promo-tional offers. (Source: 2004 American City Business Journals Inc.)Therein lies the difficulty with this approach; because customersoften don’t know what they want and second guessing them canbe expensive, adding an element of art to the science of loyaltyprograms. However, a Gallup survey found that if you get the program right and emotionally connect there is a payback, i.e.shoppers who were emotionally connected to their supermarketspent 46 percent more than shoppers who were satisfied, butlacked an emotional bond with the store.

While the aspiration of most businesses is to create thatemotional bond and as a result inspire long-term customerloyalty, the restaurant business’s appetite for loyalty is oftenthe most obvious. If you haven’t received a game piece, cupwith token attached, scratch card, or free something from arestaurant, you probably don’t reside in the United States.In a business where loyalty is its lifeblood, restaurateurshave learned that good food isn’t always what keeps

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them coming back for more. After the firstblush of excitement that a new restaurant gen-erates, getting the clientele back in the door isoften the difference between here today andgone tomorrow.

For that reason, the generally accepted 6 basictypes of loyalty programs are readily illustrated byvarious restaurateurs’ approach to the loyaltydilemma.

1. Appreciation – Giving customers more of acompany’s product.

• DOMINO’S PIZZA® Millennium Gold Card -buy a large pizza and receive a second pizza ofequal or lesser value for free on take-out orders.

2. Rewards – Giving customers rewards unre-lated to the company’s product.

• RUTH’S CHRIS® STEAK HOUSE AND ASSO-CIATED RESTAURANTS FOS Diners Rewards -Earn 1 point per dollar spent – 1/2 day spa treat-ment, $200 Restaurant Gift Credit and $200Nordstrom Gift Card.

3. Partnership – Marketing to another compa-ny’s database and allowing loyal customers tochoose their rewards from either company.

• PHILLIPS SEAFOOD RESTAURANTS® – Earn1 point for every dollar spent, after 400 points -Invitations to Special Events, Free Passes to theNational Aquarium in Baltimore, Free Passes toBaltimore’s Port Discovery, Free Passes toBaltimore’s Science Center.

4. Rebate – Giving customers money backwhen they buy more.

• WARREN’S LOBSTER HOUSE® – FrequentDiner Program after spending $100 EarnComplimentary Gift Certificate for $10.

5. Affinity – Building a lifetime value relation-ship with a customer based on mutual interestsand not on the use of rewards.

• PIZZA HUT BOOKIT! ® – Pizza for Reading• CHUCK E. CHEESE® – Tokens for Grades

6. Coalition – Teaming up with different com-panies to share customer data to jointly target aspecific customer demographic.

• MCDONALD’S® – Partnership with Disney®for movie promotion gifts in Happy Meals® andother restaurant goods.

When you review these basic loyalty programtypes, the creative use of promotional merchandiseis in many cases critical to their successful execu-tion. Unfortunately, many companies approach thepromotional merchandise portion of their loyaltyprograms without the assistance of a promotionalproducts professional. Perhaps because they do notrealize that many of these professionals haveearned either the Master Advertising Specialistdesignation from the Promotional ProductsAssociation International, which requires theequivalent of 170 classroom hours from a struc-tured curriculum, five years of experience in thepromotional products industry and a passing scoreon the MAS certification exam, or the CertifiedAdvertising Specialist designation with its require-ment of 70 classroom hours of a structured curricu-lum, three years of experience in the promotionalproducts industry and a passing score on the CAScertification exam. The knowledge that these pro-fessionals bring to the table can often make a criti-cal difference in not only loyalty program ROI, butalso the return on investment in a variety of mar-keting endeavors. Because it is often the judiciousand creative use of a promotional product thatmakes a program memorable, make sure you haveall the professionals at the table the next time loy-alty programs are on the menu. •

BR0805_Section01 7/22/05 7:49 PM

Things We Love


1

Packaged To Go……smart marketers know that sometimes it’s all in the packaging. So when you arelooking for exciting packaging to spell success

for your next campaign check these out and yourclients will check-in.Jubilee Promotions

It Glows…… this high quality mouse glows blue to

backlight your promotional message! Perfectfor laptop computers, it is fully featured withtwo buttons and a scroll wheel to navigate

web pages and documents effortlessly. Prime Resources

3

Let There Be Music……and ahs with this futuristic audio machine

sure to get attention wherever itplays.

Smarte Goods LLC

2

BR0805_Section02 7/22/05 1:08 AM


Things We Love

Add A Little Pizzazz…… to your next presentation with this 3-in-1 Wireless Presenter

designed for the executive. Receiver and transmitter attach for easytransport. It also has a laser pointer and LED Flashlight.

JMTek

Who Said Aprons Were Boring……these promotional aprons spell fun

wherever they are worn. Available in both apolycotton twill and a nonwoven disposable

material there is an apron for every occasion.Aprons Etc.

6

5

4

Promote Your Company & Motivate Your Staff……who can resist a rubber duck, especiallywhen they come in different shapes and sizes,just like people and can even Glow-in-the-Dark!Assurance Industries Co., Inc.

BR0805_Section02 7/22/05 1:08 AM


Things We LoveWhen It’s Sunny…… your logo will be out for everyone to seeon one of these quality visors and yourclient’s eyes will be protected.The Humphrey Line

Overnight Is More Fun……if you have your own fleece sleeping bag

to curl up in. It’s ideal for sleepovers or nestlingdown in front of the TV or for camping trips as a

summer-weight sleeping blanket.Kanata Blanket

7

9

Don’t Forget Your Pills……on vacation or anytime this clever

pill box will remind you morningand night. Best of all if you’reonly away for a day or two

you can take two and leavethe rest at home.

Geniosity

8

BR0805_Section02 7/22/05 1:09 AM

BR0105_Section03.qxl 12/17/04 3:29 PM Page 31


Things We Love

They’ll Enjoy the Sun……when they relax in one of these colorfulbeach chairs with cooler built right in – best ofall your logo will be on display for all to see.Bullet Line

Stay Cool By The Pool……in this Liz Claiborne cap sleeve performancepique polo – make it perfect by embroideringthe company logo on it – your employees andclients will thank you by making sure it is seenin all the best places!Hartwell

Play Games Wherever YouMay Wander…

…this high quality gaming set wasjust meant to hit the road and keepyou entertained whether your game

is chess or backgammon. The perfectgift for your best clients.

Retro 51

10

11

12

BR0805_Section02 7/22/05 1:09 AM


Things We Love

Get Organized……with this Metropolitan Desk Organizer.Individual velvet-lined trays provide storage

and double as coasters. Integrated photoframe keeps loved ones close at hand.

Leeds

Dress Up……your cell phone or PDA with one of these finewood veneers. A little touch of nature might justwarm up one of these utilitarian items and whatbetter way to keep your logo in sight at all times.

Tech Style

13

14

15

Whether It Is Your Best Friend……or just a friend, be prepared for unexpected emergencies at home or when you travel withthese first aid kits. Perfect for health events andprizes that show you care.First Aid Only

BR0805_Section02 7/22/05 1:09 AM


Things We Love

When It’s Time To Light……the barbeque or light someone’s fire they

will remember the message on a box ofthese 2”- 3” wooden matches.

Admatch-Regal

It Is Summertime……and while the living may be easy, keeping track ofUV sun exposure is seldom more important then at thistime of year. These UV reminders make excellentgiveaways at health fairs and any time a companywants to show it cares about safety.Thermographics

16

16

17

18

Lunch on the Run……no problem keeping it fresh and cool with this qualitybag complete with removable inner liner.Bags Depot

BR0805_Section02 7/22/05 1:09 AM


Things We Love

Business Card Holders……don’t have to be boring. This is one

cardholder that is sure to find a place ofhonor on any desk and there is plenty ofroom for names, logos or specialmessages.Doss Outback, USA

19

21

Be Safe Not Sorry…… this Wristwallet™ is soft andcomfortable to wear and the largereflective pocket on the outside displaysyour logo or message. The pocket is largeenough to hold a credit card, ID, key, etc.,and the hook/loop fastening system makesit fully adjustable so one-size-fits-all.Whether you are a runner or a walker, askateboarder or a roller blader, theWristwallet™ helps other see you fromseen from dusk to dawn. Reflectix

Mascot or Teddy Bear……with your message or logo

these plush characters make everyonewant to hug them. Perfect for fund-

raisers, employee incentives,special event giveaways or non-profit gifts for donations there’s

just something special aboutpromos with plush.

Gibco, Inc.

20

BR0805_Section02 7/22/05 1:10 AM

Beginning with this issue, Brilliant Results

expands and strengthens its resources by part-

nering with Promotional Products Association

International, the trade organization representing

promotional consultants and suppliers in the

$17.3 billion promotional products industry.

Every month, PPAI will present six award-

winning, innovative promotions to help you

build positive images, promote company good-

will, instill appreciation, increase sales or bring

in new clients by incorporating the power of

promotional products into your media mix.

Research shows that “power” is attributed to

the fact that promotional products work in

tandem with other media to reinforce your

messages by providing tangible reminders.

Plus, they are the only form of advertising

for which someone will actually say “thank

you.” Try that with a TV commercial!

Presented By:

CASE STUDIES IN SUCCESS

BR0805-WHATWORKS 7/21/05 2:05 AM

INDUSTRY: Communications—Automotive News

CHALLENGE: When most people think anniversary, theythink wedding—cake and champagne and fam-ily members trying to dance. Whether thememories are happy or funny—or a mix ofboth—an anniversary is something to cele-brate. Automotive News, a weekly newspaperfor the automotive industry, wanted to captureall the warm feelings of an anniversary as itneared its 75th Diamond Anniversary Issue.How would the newspaper raise awareness of thisspecial issue and romance its advertisers?

SOLUTION: Published for 75 years, Automotive News hadformed a close bond with its advertisers. Sure,some of them bailed throughout the years, but theones that stuck around were truly special. So thenewspaper built a direct mail campaign to courtadvertisers for the Diamond Anniversary Issue.

After an introductory mailer was sent, advertisersreceived a follow-up package with the words, “Aproposal.” Their interest piqued, they opened theirdeliveries to find inside beautifully wrapped pack-ages and bows. “A ring box?” they wondered. Asthey opened their curious little presents, advertisersdiscovered, instead of rings, round radiator hoseclamps and dramatic, laser-engraved plates bearingthe message, “Will you advertise with me?”

While the editor of Automotive News wasn’t there to getdown on one knee, advertisers were still pleased by thisthoughtful gesture. The romancing didn’t stop there.One week later, the newspaper sent a four-color postcard

with the names of each of its regional representatives.Automotive News was determined to win the hearts—and money—of some of its much-loved advertisers.

RESULT: The romantic efforts of Automotive News didn’t gounnoticed. “Never before have I received so muchfeedback from an advertising campaign,” saysKathleen Pecar, promotion manager forAutomotive News.

Peter Moceri of Madison Heights, Michigan-baseddistributor Creative Specialties Company, Inc. (UPIC:CSCI) was the imaginative mind at work on thiscampaign. “Peter developed the entire creative con-cept,” Pecar says. “He’s very valuable to us.”

The Diamond Anniversary Issue ultimately carried61 advertisements for a total revenue of $850,000.The issue knocked the socks off a typical issuewhich is, on average, only 54 total pages. Thefinal sales paid for the promotion more than 50times its original cost.


FACT: A “fat” mailer containing a promotionalproduct, along with literature, can increaseresponse rates by 75 percent.


INDUSTRY: Telecommunications—BellSouth

Find a promotions consultant at www.buildapromotion.com

CHALLENGE: BellSouth in the Southeast U.S. rewards its top-performing advertising salespeople for The RealYellow Pages with the annual President’s Club (aBellSouth-sponsored event for those who meettheir advertising goals). “Even after announcingthe President’s Club trip would be in San Franciscothis year, we knew incentives would be needed tocreate more awareness and excitement about theclub,” says BellSouth’s Graphics Project ManagerLynn Maxwell. “We wanted to motivate approxi-mately 3,500 advertising salespeople to reach theprogram’s goals and earn the California trip.”

SOLUTION:Together Maxwell and distributor Kathie Beckettof Marketing Solutions Group Inc. in Kennesaw,Georgia, discussed several San Francisco-relatedpromotional products ideas for the campaign.Beckett says they were able to conduct the entirecampaign for approximately $13,000—less than$4 per recipient.

They decided to kick off the campaign with GoldenGate Bridge facts and figures on teaser postcardswith tape measures attached to remind employees tocheck on their progress while qualifying for the trip.

Information about the program along with a SanFrancisco word search puzzle appeared in anemployee newsletter. Those employees who complet-ed the puzzle were entered into drawings for miniwooden cable car replicas packaged with Ghiradellichocolates. To continue motivating employees andpromoting the Bay Area theme, Maxwell hung SanFrancisco posters around the workplace, and thepresident sent all employees fortune cookies withhis special message tucked inside.

RESULT:Maxwell says the promotional products were wellreceived and created the excitement about the clubjust as she had hoped. The winners of the word searchpuzzle drawings sent her such responses as, ‘My wife ispregnant, and she needed this chocolate,’ and ‘I washaving a terrible day, but I really perked up when Ireceived the cable car and chocolate package.’”

It was reported that this President’s Club was oneof the most successful in club history,

with the largest group ever quali-fying to attend.


FACT: In a recent PPAI study, 75 percentof promotional products recipients saidthey use the product at least once a week.


INDUSTRY: Transportation—Metropolitan Atlanta Rapid Transit Authority (MARTA)

CHALLENGE:Giving to the community is a positive thing, butsometimes we need a little push to convince folksto fork over some cash. Since people aren’t alwayswilling to whip out their checkbooks in the nameof charity, Metropolitan Atlanta Rapid TransitAuthority (MARTA) needed a way to entice itsemployees to donate to worthy causes.

SOLUTION:To create enthusiasm and support for its annualcharity drive, MARTA encouraged employees todive right in to donating with the theme,“Cruising For Charity On The USS Marta.” Thecruise and vacation-themed promotional itemsinvited workers to “board the ship” and increasetheir contribution levels from the previous year.

In exchange for pledge cards, employees receivedFrisbees®, sports bottles, beach tumblers, travelwallets and a colorful variety of other fun items at32 various rallies held during a two-month period.Different levels of contribution were represented bysix different “decks” of products. “We think havingphysical items created an interest and a desire toincrease contribution levels,” says WarrenMcMichael, chairman of MARTA’s Charity Club.

When all the pledge cards had been turned in, afinale lunch was held in the corporate lobby—a.k.a.the “ship’s ballroom”—to express appreciation to allwho participated. Local restaurants and entertainersjazzed it up by serving tropical food and playingisland music. And to top off a successful charitydrive, MARTA also held a drawing for a cruise vaca-tion including roundtrip airfare to the port of call.

RESULT:“This campaign was even more successful thananticipated,” McMichael says. “In fact, we increasedour giving $24,000 over the projected goal.”

McMichael appreciates the creativity ofWilma Pennamon of Atlanta, Georgia-baseddistributor Summit Marketing, who helpedcraft the program.

A perfectly choreographed tropicalcruise-themed promotionallowed MARTA to sail pastits goal for a total of$674,000 in charitabledonations.


FACT: As a general rule, promotionalproducts of greater value generate moresales leads than products of lower value.


INDUSTRY: Petroleum—Veritas DGC, Inc.


CHALLENGE:Veritas, a service provider in the petroleumindustry, planned to exhibit in two upcominggeological conventions—American Association ofPetroleum Geologists (AAPG) and EuropeanAssociation of Geoscientists and Engineers(EAGE)—and wanted to present promotional prod-ucts to the 15,000 attendees to drive them to itsinteractive website when they returned home.

Carl Davis in Veritas corporate and internationalmarketing says, “We found that our contacts atconventions are too short to discuss the fullrange of products we offer, and the best way toreach these clients is to get them to our exten-sive website. We knew if we could get them tothe site, they would find interest in our products.Our goal was to increase web hits by 10 percentper month with current hits at 12,000 per month.Another objective was to increase site activity interms of pages viewed by 15 percent with the cur-rent average at 72,000.”

SOLUTION:As distributor April Anderson of Adventures InAdvertising/Promotions, Etc. in Fort Worth, Texas,worked with Davis on promotional products ideasfor distribution at the conventions, she suggestedthe company select mouse pads with a 3-D displayof the earth’s subsurface to show the Veritas tech-nology and catch the client’s eye.

Anderson says five different mouse pads weredesigned and produced using lenticular technolo-gy, which included three different components:• 3-D stereo image enabled them to capture representa-tive examples of the new seismic processing technique.• 3-D data taken from a marine environmentactually showed the movement and flow ofriverbeds in the ocean floor.

• The copy on the pads used a uniqueflip process, which morphed between “GetConnected…” and “www.veritasdgc.com.”

She adds, “We were able to produce these mouse padsfor $53,200, which is less than $4 per recipient.”

RESULT:During the month following the conventions,Veritas had 14,500 website hits, a 21-percentincrease, and 89,200 page views, a 24-percentincrease—thus exceeding the program’s goals. “An unplanned result was an improvement in ourrecruitment efforts,” says Davis. “The mouse padswere very popular with student attendees, and wehave received inquiries from those looking to joinan exciting company with a future.”


FACT: Using promotional products to create brand awareness is the third largesttype of program at 9.7 percent behindtradeshows (12.14 percent) and businessgifts (17.84 percent).


INDUSTRY: Restaurant—KFC National Management Company

CHALLENGE:Normally, there wouldn’t be any correlationbetween fast cars and fried chicken, but atKentucky Fried Chicken, speed’s the name of thegame. KFC had to beat the two-minute timeframein which to complete front counter and drive-thrusales. How could the Colonel motivateemployees to have the need for speed?

SOLUTION:Well, get ready to start yourengines. An operations meet-ing kicked off the year asthe “Year of Speed” forKFC. Employees receivedracing jackets embroi-dered with a “ColonelSpeed Flag” logo on the shoulder and alarger “Speed Team” logo on the back, emphasizingthe importance of teamwork.

Throughout the “Year of Speed,” quarterly incentiveswere awarded to the top performing region coaches,culminating in the year-end giveaway of AmericanExpress gift certificates, premium car upgrades and agrand prize of a two-year Corvette lease.

“The promotional items and incentives programwere essential in providing day-to-day focus andmotivation,” says Dave Witak, director of projectmanagement for KFC.

Front counter and drive-thru performanceimprovements were tracked on a custom designed,vinyl-laminated chart, which was displayed ineach restaurant as a daily reminder of progress.And, of course, a bonus result of the program wasthe teamwork and camaraderie that lingered longafter the prizes had been awarded.

RESULTS:KFC employees sped their way to the top andimproved the percentage of sales completed with-in two minutes. After the completion of the pro-gram, 74 percent of sales were closed in two min-utes or less, whereas the year before, only 58 per-cent met the two-minute deadline.

Witak attributes much of the program’s success toLouisville, Kentucky-based distributor MPCLouisville Promotions who contributed “creativity,product knowledge and outstanding service.”

FACT: In the food delivery market, customerswho receive promotional products average upto 18 percent more orders than those receiv-ing coupons and up to 13 percent more thanthose who receive nothing.



INDUSTRY: Healthcare—Cleveland Clinic Health System, Eastern Region


CHALLENGE:The Cleveland Clinic Health System through its TCCheck (Teen Cancer Check) wanted to increaseawareness of the incidence of breast and testicu-lar cancer in children, teens and young adultsand empower them to take an active role in theirown healthcare through monthly self-examina-tions and appropriate intervention. Bev WatersShankman, community service director for thehealth system, says, “We wanted to reach approx-imately 2,000 10th grade students in the schoolsystems served by our hospitals with high-impacttake-home messages as reminders to practicemonthly self-exams.”

SOLUTION:Distributor Eric E. Ekstrand, MAS, of The Mort C.McClennan Co. in Chagrin Falls, Ohio, worked withShankman to create an edgy awareness programthat, while somewhat irreverent, was perfectlysuited to the “giggle factor,” which, for a teenaudience, is simply inescapable.

In the classroom setting, students received folderswith pertinent information, bookmarks and pen-cils for completing the post-class evaluation. Thestudents played a “Jeopardy”-style board gamethat awarded correcttopic-related

answers with flashing high-bounce balls—“high-bounce testicles.” Ekstrand says, “Some schoolspreferred that we provide light-up pens—‘flashingtesticle pens’ instead of the bounce balls. Whenthe students turned in the completed evaluations,they received lanyard key chains and antennaeballs—‘antennae testicles.’”

RESULTS:Shankman reports that in its initial year the TCCheck had 701 evaluations returned with 90percent of them indicating the program hadbeen helpful and 84 percent stating there hadbeen new and useful information presented. Afour-month follow-up revealed that 60 percentof the students were practicing the monthlyself-exams.

Ekstrand comments, “Clearly, the highest impactof this program continues to be achieved throughthe ‘high bounce testicles,’ ‘flashing testicles’ and‘antennae testicles.’ The students not only enjoy

the promotional items as rewards, but theprovocative product nomenclature repeat-edly renews the message.”


FACT: While it’s true you can buy a pro-motional product anywhere, an experiencedpromotions consultant can help you solveproblems, plan a program and get results.


Referrals are the most powerful form of word-of-mouth (WOM) advertising. But for C-level managerswho demand proof of ROI, viral marketing is difficultto measure. There is one way, however, to not onlyincrease the likelihood of clients recommending yourbusiness but to also quantify the effectiveness ofmarketing messages: promotional products.

In a PPAI study* designed to determine the impactpromotional products have on recipients’ opinionsregarding brand image and its long-term effects, thetest group who received promotional products wassignificantly more likely—12 percent more, in fact—to recommend the business to others than the groupthat received nothing.

So if you need more concrete data for WOM referralsyou’ll get out of your marketing and advertisingplans, talk to your promotions consultant. Together,you can make an impact by choosing the best deco-rated merchandiseto effectively com-municate with yourtarget audience andmeasuring theresults.

Now that’s thepower of promo-tional products.

PROMOTIONAL PRODUCTS ASSOCIATION INTERNATIONAL3125 Skyway Circle NorthIrving, TX 75038888-I-AM-PPAI (426-7724)www.ppa.org

PROMOTIONAL PROOF

Product No Product

Likelihood To Recommend The Business

On a scale of 1 to 7, with 1 representing anegative response and 7 representing a positive response.

*Promotional Products’ ImpactOn Brand/Company Image Study© 2005 Promotional ProductsAssociation International


BR0805_Section03 7/22/05 2:32 AM


brilliant ideas | From the Source

A Supplier's Marketing Tips & Ideas for Brilliant Results

LIVE HAWAIIAN ORCHIDSSay Aloha: Companies planning sales & incentive contests to Hawaii can give out leis & orchids to participants to kick off the program.

Ladies’ Day & Mother’s Day: Restaurants & retailers hand out live orchidsto the ladies during a special event.

Grand Openings: Low-cost & popularity make live orchids the perfect gift for grand openings, customer appreciation days & anniversary celebrationsby retailers, restaurants, etc.

Weddings: Edible orchids can be used at weddings to decorate the weddingcake, given to the flower girl & to guests on their appetizer plate setting.

ALL-IN-ONE FLOWERING GROCANSTrade Shows: Manufacturers have 4 color pictures oftheir newest items on the GroCans, a schedule of upcom-ing trade shows & booth numbers on the backs to serveas a constant reminder. Slogan: “Watch Us Grow!”

Convention & Visitor Centers: place pictures of popu-lar landmarks on the front, with a Top Ten list of reasonsto visit/convention in this city on the back. Slogan; “Comeand be a Part of our Growth!”

Anniversary/Milestone: Companies celebrating an anniversaryor milestone can place photographs of the company from differenteras on the front & a timeline of important achievements & dateson the back. Slogan: “Thanks for Helping Us Grow!”

Real Estate: Picture of the Realtor with a “SOLD” sign and the slogan,“Making Relationships Bloom”.

Earth Day: Companies donate GroCans, with outline pictures that can be colored in, so school children can have Earth Day discussions. On the backare tips about the company’s recycling efforts. Slogan, “Let’s MakeEveryday Earth Day!”

Churches give the GroCans to members during fund raising efforts,with a calendar of their special events & prayer times on the back.Slogan, “Growing to Meet the Demands of our Members!”

BR0805_Section02 7/22/05 1:10 AM


This Month’s Ideas Courtesy of

FRAGRANT POTPOURRI & POTPOURRI SACHETS

Weddings: Give baskets of potpourri to weddingguests with the message Thank You ForSharing Our Special Day.

Bed & Breakfasts & Hotels: Offer bags ofpotpourri to guests with the message WakeUp Fresh in Our Garden Suites!

Banks: Give bags of potpourri to yourclients with the slogan, Save with Us - It Makes Great “Scents”!

LIVE ALOE VERA PLANT IDEA STARTERSHealth Clinics: Ideal for trade shows, health fairs and clinics, the healing powers of Aloe Vera Plants is a natural-tie-in.

Direct Mail: Live Aloe Vera Plants have a shelf life of about a month, making an ideal direct mail stuffer that will get opened.

Trade Shows: Give these low cost Aloe Vera Plants to customers andprospects at trade shows and fairs. Slogan, “Let Us Heal Your Software Woes”

Travel Incentives: Aloe Vera Plants help to heal the pain and discomfort of sunburn - making these ideal for a travel incentive to any tropical or beach resort.

WILDFLOWER SHAKER CANS: Hospitals can show their nurses or volunteers that they are “wild” aboutthem, by using a group photograph of these people for the front of theirshaker cans, with Stress and Relaxation Tips on the back side. Slogan,“We’re Wild About Our Nurses!”

Universities give the shaker cans to incoming freshmen with a picture of the university on one side, and a map of their buildings and importantphone numbers and dates on the back. Slogan, “Go Wild Over State U!”.

Schools can use the shaker cans for fundraising efforts by putting a team photo on the front, with the team emblem and schedule on the back,with the slogan, “We’re Wild about the Panthers, Eagles, etc.”

BR0805_Section02 7/22/05 1:11 AM


Free Product Information. August 2005 Issue.For free product information from these suppliers, complete and mail this page to: BrilliantResults Magazine 9034 Joyce Lane Hummelstown, PA 17036.Or fax to (717) 566-5431.

Name Title

Company Industry

Address

City State Zip

Phone Fax E-mail

Supplier Page No.3M ® 3

Ashworth® Corporate 23

BAS 15

Ball Pro 41

Blake & Hollister 25

Bravo Awards 41

Brilliant Results Magazine ™ 75

Bullet Line® Back Cover

Calconix / Time Zone® 27, Inside Back Cover

Evans 33

Gabriel Metal Casting 19

Groline 45, 47, 49, 53

Key-Bak® 35, 57

Lacoste ® / Idea Workshop Inside Front Cover

Liz Claiborne® / Hartwell Industries 7

Neet Feet® 31

Perry Ellis International 10-11

PPAI 43, 71

Sierra Pacific Apparel 61

Skagen® 5

Tele-Comp Solutions™ 17

Warwick Publishing 21

THINGS WE LOVE SectionSupplier Page No. Product No.Smarte Goods LLC 54 1

Jubilee Promotions 54 2

Prime Resources 54 3

Assurance Industries Co. Inc 55 4

Aprons Etc. 55 5

JMTek 55 6

The Humphrey Line 56 7

Geniosity 56 8

Kanata Blanket 56 9

Bullet Line 58 10

Retro 51 58 11

Hartwell 58 12

First Aid Only 59 13

Leed's 59 14

Tech Style 59 15

Bags Depot 60 16

Admatch-Regal 60 17

Thermographics 60 18

Reflectix 62 19

Gibco, Inc. 62 20

Doss Outback, USA 62 21

TM


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From L to R:

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BR0805_Section02 7/22/05 2:55 PM


September 08 – 15 PRINT 05McCormick Place Complex, Chicago, ILInformation at: www.PRINT05.com or Call 703.264.7200

September 09 – 11 ASR Trade Expo – San Diego SeptemberSan Diego Convention Center, San Diego, CAInformation at: www.asrbiz.com or Call 949.376.8144

September 15 – 17 Imprinted Sportswear Show AtlantaCobb Galleria Centre, Atlanta, GAInformation at: www.issshows.com/iss/1235/index.jsp or Call 770.955.8000

September 18 – 22 COMMON Conference & Expo Fall 2005Orlando World Center Marriott, Orlando, FLInformation at: www.common.org/conferences/2005/fall/ or Call800.777.6734

September 19 – 24 5th Annual itSMF USA Conference & Expo 2005McCormick Place Complex, Chicago, ILInformation at: www.jupiterevents.com/itsmf/fall05/index.html or Call203.662.2857

September 25 – 27 ASD/AMD Houston Variety Merchandise ShowGeorge R. Brown Convention Center, Houston, TXInformation at: www.merchandisegroup.com or Call 800.421.4511

September 27 – 29 The Motivation ShowMcCormick Place South, Chicago, ILInformation at: www.motivationshow.com or Call 800.752.6312

September 29 – 30 AMA’s Corporate Branding 2005Caesars Palace, Las Vegas, NVInformation at: www.amanet.org/events/cb2005/index.htm Call800.262.9699

Septe

mber

2005CalendarSe

pte

mber

BR0805_Section02 7/22/05 1:11 AM


October 05 – 07 Professionals in Human Resources Assoc., Annual ConferenceLong Beach Convention & Entertainment Center, Long Beach, CAInformation at: www.pihra.org or Call 800.734.5410

October 12 – 14 Western Independent Banker’s Marketing & Business Development ConferenceParadise Point Resort & Spa, San Diego, CAInformation at: www.wib.org/marketing.htm or Call 415.352.2323

October 16 – 19 The Direct Marketing Assoc. 88th Annual Conference & ExhibitionThe Georgia World Congress Center, Atlanta, GAInformation at: www.the-dma.org/conferences/dmaannual/ or Call800.293.7279

October 17 – 19 PROMO ExpoNavy Pier, Chicago, ILInformation at: www.promoexpo.com/ or Call 800.927.5007

October 19 – 20 Outsource World New YorkJacob K. Javits Convention Center, New York, NYInformation at: www.outsourceworld.org/newyork/default.htm or Call617.450.4930

October 19 – 22 Staffing World 2005Orlando World Center Marriott Resort & Convention Center, Orlando, FLInformation at:www.staffingtoday.net/memberserv/convention05/index.shtml or Call 703.253.2020

October 20 – 21 Sales Leadership 2005Caesars Palace, Las Vegas, NVInformation at: www.amanet.org/events/SalesLeadership/ or Call 800.262.9699

October 24 – 25 Collaborative Communications SummitHyatt at Fisherman’s Wharf, San Francisco, CAInformation at: www.ccsexpo.com or Call 917-655-0818

October 27 – 28 8th Forum on Customer Relationship Mgmt CRM for the Pharmaceutical IndustryLocation To Be Determined, NY, NYInformation at: www.cbinet.com/show_conference.cfm?confcode=HB561 orCall 800.817.8601

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IT WOULD BE DIFFICULTto find an erudite individualwho would disagree withthe premise: Education isthe future and reading is thefoundation of any good educa-tion. Therefore, when BrilliantResults found a successful read-ing program sponsored by a well-known corporation that combined pro-motional merchandise incentives andreading, we knew we had the right LastWord for this issue on loyalty and incentives.

In classrooms across the country, teachers are con-stantly looking for innovative and creative ways to turn childrenon to reading. With the advent of the No Child Left Behind legisla-tion the country’s focus on education and consequently on readinghas increased. As a result, Brilliant Results was pleased to discov-er a major American corporation that has been in the readinggame since 1985. It’s about kids. It’s about books. It’s about thejoy of reading.

In 1985, Pizza Hut® created a reading motivation programcalled the BOOK IT!® National Reading Incentive Program forchildren in grades K-6. More than 22 million studentsparticipate in the program every year, and Pizza Hutrewards these young readers for their accomplishmentswith free pizza, praise and recognition. This unique pro-gram, awards a complimentary Personal Pan Pizza® andspecial recognition to elementary school children whoachieve set reading goals. Former U.S. Secretary ofEducation Richard W. Riley cited BOOK IT!® as themodel for a corporate/education partnership. Over900,000 classrooms in 52,000 schools participated in the2004-05 Pizza Hut BOOK IT!® Program. By setting aBOOK IT!® goal for at-home reading time the BOOK IT!®program can significantly help make every child become abetter reader. After all, the fact remains that the only way to getbetter at reading is to do it.

The Last Word

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In 1998, Pizza Hut developed an additional programcalled BOOK IT! Beginners®. This program encouragesteachers to read aloud to young children in preschool andpre-kindergarten. Teachers read to the children in their classat least 60 minutes a week during March and April. At theend of each four-week reading period, teachers present eachof the children in their class with a certificate, which theycan take to a participating Pizza Hut restaurant for theirvery own free, one-topping Personal Pan Pizza. The restau-rant manager congratulates the child for participating in BOOK IT!Beginners® and, on each visit, rewards the child with a stickerthat says, “I’m a BOOK IT! Beginner.” This not only helps instilla love of books and reading at an early age, extensive researchhas proven that reading aloud to a child is the single most impor-tant factor in raising a reader. More than one-and-a-half millionyoungsters participate annually.

This month Brilliant Results had the pleasure of interviewingLeslie Tubbs, Director, of the Pizza Hut BOOK IT!® NationalReading Incentive Program.

BR: How did you become involved with the Pizza Hut BOOKIT!® program?

LT: I have been with Yum! Brands, Pizza Hut’s parentcompany for 13 years. Three years ago - the previous direc-tor of the BOOK IT!® Program retired and I was luckyenough to get the job! The program began 20 years agowhen Pizza Hut’s president at the time, Art Gunther,wanted to encourage his son to read more, and improve hisreading skills. Mr. Gunther thought that providing an incentive ofpizza (his son’s favorite food) would be a great motivator. Theextra motivation worked for his son and from there the BOOK IT!®

program was born.

BR: In your opinion what is the most importantservice/contribution that the Pizza Hut BOOK IT!®

program offers to its participants?LT: Encouraging children to read more, read for

fun, and as a result develop a lifelong love of reading.

BR: How does/did the Pizza Hut BOOK IT!® programdevelop a connection with K-6 schools and educationalorganizations?

LT: We created an Advisory Council of educators anda Teacher Panel in the very beginning to guide develop-ment and execution of the program. We continually work

The Last Word

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with these groups to make certain that theprogram is relevant, simple and flexibleenough to make BOOK IT!® easy for teachersto implement. Most of our communication isthrough direct mail to the schools, but we areincreasingly using email and the Internet. Inaddition, we exhibit at national conferenceseach year.

BR: Can you tell our readers how the PizzaHut BOOK IT!® program’s role in National YoungReader’s Day developed?

LT: The Center for the Book in the Libraryof Congress is a member of our AdvisoryCouncil. Together, we established NationalYoung Readers Day in an effort to create anongoing way to celebrate reading and bringmore attention to the importance of reading atan early age.

BR: How do you use promotional merchan-dise and/or direct marketing strategies toincrease interest in the Pizza Hut BOOK IT!®

program?LT: We primarily use direct mail to schools in

our database. In addition, we exhibit at threenational educator conferences annually andgive away promotional merchandise (some-thing different every year) at our booth to keepBOOK IT!® top of mind.

BR: How does the Pizza Hut BOOK IT!® pro-gram decide which promotional merchandise tooffer in its online store/catalog?

LT: The merchandise is offered for teach-ers that want to provide extra incentives fortheir students. We do our best to keep theitems affordable for the teachers, but fun forthe kids.

The Last Word continued

The BOOK IT!® Basics

• The BOOK IT!® Program months areOctober through March each year.

• Begin by setting monthly reading goals foreach child in your class.

• As soon as the monthly reading goal hasbeen met, present the child with a pizzaaward certificate.

• The child takes the certificate to a Pizza Hut®restaurant, where he or she is congratulated bythe manager or service team and given afree, one-topping Personal PanPizza. On the first visit, the child also receivesa BOOK IT!® card with clip and a stick-er for the card.

• There is no purchase necessary and the pizzacan be taken to go.

• On each subsequent visit, the child is againcongratulated and given another Personal PanPizza and a sticker to recognize readingachievement.

• If the child meets the reading goals all sixmonths of the program, he or she is rewardedat the restaurant with a BOOK IT!® All-Star Reader medallion.

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BR: How does the Pizza Hut BOOK IT!® programsource its promotional merchandise via a bid process orvia a regular supplier/distributor or agency? Why?

LT: We have a long-term agreement with our currentsupplier. We have bid the business out several times, buthave not found a supplier that can provide the same serv-ice, quality and creativity at a better price.

BR: What is your personal favorite promotional mer-chandise item and why?

LT: I love the t-shirts because they change with the pro-gram theme each year and I have started a collection.

BR: What do you see happening in the future for thePizza Hut BOOK IT!® program?

LT: We will continue to grow the program and lookfor new ways to motivate young readers. •

If you would like to know more about PizzaHut’s BOOK IT!® programs, please visit the BOOKIT!® program Web Site at www.bookitprogram.com or call 1.800.4.BOOKIT(1.800.426.6548).

The Last Word continued

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1. Approximately how many Americans pay only theminimum payment required each month?a. 15 millionb. 35 million c. 50 million

2. The industry jargon for someone who pays his/herbill in full every month is?a. Deadbeat b. Revolverc. Gamer

3. How much notice must a credit card company giveits customers when changing the terms of the card-holder contract?a. 60 daysb. 30 daysc. 15 days

4. Which of the following is likely to trigger the univer-sal default clause in a cardholder’s contract (mean-ing the card issuer can raise the APR automatically)?a. Going over the credit limit on another cardb. Applying for and receiving a loanc. Failing to make a payment to another creditord. All of the above

5. How many credit cards does the average Americanhousehold use?a. 8b. 10c. 3

6. What is the average credit card balance owed?a. $1,000b. $5,000c. $8,000

7. What is the average credit card interest rate?a. 12.6%b. 18.9% c. 14.3%

8. Approximately how many billion dollars doAmericans pay each year in credit card interest?a. 64 billion b. 45 billionc. 23 billion

9. On average what percentage of the minimum monthlypayment actually goes toward paying principal?a. 5%c. 10% d. 30%

10. What percentage of undergraduate students has atleast one credit card?a. 68%b. 83% c. 92%

Bonus: According to the standard terms of most credit cards how long does it take to pay off an $8,000balance making just the minimum monthly payment?

Credit Card TriviaOff The Cuff

Quote~

“The one unchangeable certainty is that nothing is cer-tain or unchangeable.”

~ John F. Kennedy (1917-1963), 35th U.S.president - youngest person ever elected to theU.S. presidency.

“A goal is a dream with a deadline.” ~Napoleon Hill (1883-1970), American author. Answers: 1. b – 2. a – 3. c – 4. d – 5. a – 6. c – 7. b – 8. a – 9. b – 10.b – Bonus: 25 years

Sources for some trivia answers: Bowdoin College – Nellie Mae: Undergraduate Studentsand Credit Cards – “Journal of Financial Planning” – “Federal Reserve Bulletin” –PBS/Frontline “The Secret History of Credit Cards.”


Many Americans try to realize their goals through the use of credit cards. This month’strivia lets you see how much you know for certain about your fellow citizens.

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BR August 2005 Issuu

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