Dunkin' Rewards: America Runs on Loyalty Programs With Correct Information

Dunkin' recently overhauled their Dunkin' Rewards loyalty program. Some regular customers are not pleased. Coffee rewards that used to be available after spending $40 on coffee now require at least $50 in spend. The program has also become more complex, with a different points earning formula, monthly boosters and a greater emphasis on food. With greater complexity comes greater risk of error.

I would describe myself as an occasional coffee achiever. I might stop for coffee early in the morning when walking the dog, but not that often. I currently have 257 points according to my app -- not enough for one free coffee.

Screenshot showing I have 257 points

So, imagine my surprise when I received this email. 

Points amount email
34,438 points = almost 69 free coffees!

The points value in the email is not only incorrect, it is outrageously wrong. Why would anyone hold on to 34,000 points?

In a prior role, I worked on a loyalty program mailing that included a mention of a customer's point balance. Here are some of the quality control steps I took:

1. Verified output data against source data
2. Verified lettershop proofs against both source data and output data
3. Requested manual review of customers with points balance more than two standard deviations above the mean against source data. 

Perhaps Dunkin' skipped step 3 above. What they could have done is ask themselves something along the lines of, "Who in the email communication appears to have enough points for more than 10 of the top points item? Should that really be the case?"

Lesson: 

When sending personalized information, verify the accuracy of all variable data including outliers.

Merrell: Well-timed offer lacks expiration clarity

A recent conversation at home went like this:

Me: "Hey, honey, did you say you needed new hiking shoes?"

Wife: "Eventually. Mine are starting to wear. Why?"

Me: "We got an offer in the mail from Merrell for 25% off footwear."

Wife: "Well, I do like Merrell, but I don't plan to use hiking shoes in the next few weeks. Maybe I should get replacements now with the discount. When does the coupon expire?"

Me: "It doesn't say."

Wife: "Really?"

Me: "I'll look closer." (Puts on reading glasses.) "It says it expires '30 days from postmark.'"

Wife: "When is that?"

Me: "I don't know. It's not postmarked."

Wife: "Well, whatever, I don't need new hiking shoes right away and I'm pretty busy right now."

This conversation outlines why the postcard merits a Fail for Creative. 

On September 13, 2019, I purchased a pair of Merrell Moab 2 hiking shoes. They are perfect for that outdoor hike around the lake, through a park or in the snow. The postcard arrived October 2, 2020, just a little over a year after I started wearing my previous purchase. So, the timing and messaging around my "Merrell anniversary" are spot on. Kudos to Merrell for Timing.

The postcard included a personalized coupon code for 25% savings; however, there is no mention in the headline regarding when the coupon code expires. I found some information in the disclosure.*

Postcard disclosure text

As I wrote in prior blog posts such as this one and this one, a Call to Action should include a clearly communicated offer expiration date. This is important: The right response window encourages immediacy of customer action; one that's faulty or unclearly defined, however, only encourages inertia.

With the Merrell postcard, the coupon code's expiration date is not only buried in the disclosure, it also references expiring "30 days from postmark"; however, there is no postmark. Postcards mailed Standard Rate are not postmarked by the USPS. So, how do customers know when the coupon code expires? They don't.

There are several ways to care for expiration date communication without jeopardizing the integrity of the message, diluting Merrell's branding or adding production costs. Here is one: Include an offer expiration date in the address section of the postcard. 

Mock-up. I added the expiration date in the address panel

In the above mock-up, the coupon code expiration date is clearly communicated. The date is specific and reasonably prominent. The messaging complements the headline and supports immediate action. It can be inkjet- or laser-personalized using the same variable data method as the producing the coupon code and customer name and address. Depending on the postcard's production method, it could appear in spot color without incremental print expenses.

If Merrell adapts this approach, the only incremental edit would be to rephrase the disclosure to reference the expiration date in the address panel.

Lessons:

1. Your call to action should include a clearly communicated, definitive offer expiration date.
2. Postcards mailed Standard Rate are not postmarked.

* Many people mistakenly refer to small print associated with marketing communications as a disclaimer, when in fact it is a disclosure. According to dictionary.com, a ‘disclaimer’ is “the act of disclaiming; the renouncing, repudiating, or denying of a claim; disavowal” while a ‘disclosure’ is “the act or an instance of disclosing; exposure; revelation.” ‘Disclose’ is defined as “to make known; reveal or uncover” From a Marketing standpoint, a disclaimer is an admission that the headline is false – otherwise why renounce it? However, a disclosure provides secondary but relevant facts of an offer. So the only reason an offer or marketing communication would require a disclaimer is if it was misleading from the onset.