Toronto-based BehaviorWorx Inc. Launches New Customer Experience Feedback Program for Retail Gift Card Programs this Holiday and Beyond

Toronto, Ontario, Dec. 19 – BehaviorWorx Inc. is a self-described Customer Experience Measurement (CEM) company. The core of the business involves measurements gathered through online surveys, customer panels, interactive games, sweepstakes and instant-win prizing, which results in continuous interactive relationships that clients use for market intelligence and interactive marketing. Like everyone else, they have heard about the recent controversies surrounding time limits on gift cards that are creating distrust for the buyers of these cards. Their new CEM Gift Card Feedback Program provides interactive feedback from gift givers and recipients to help retailers increase the value and differentiation of their branded retail gift card.

“Why are gift card sales growing so fast and how can retailers get the most value to customers while avoiding the pitfalls?” asks Martin Hoffmitz, Vice President, Client Partnering, BehaviorWorx. “Gift cards are growing fast because they address a customer need – one stop, easy gift buying that takes the ‘letdown’ factor out of gift giving. Customers love the convenience but hate surprises.”

In addition to gift cards, what do retailers need to do to succeed in 2008?


RISKS – OPPORTUNITY AND REWARDS

2008 represents unprecedented risks and opportunities for forward thinking CEOs during the upcoming year. CEOs tell us that they are very concerned about changing markets, customers and economic conditions for the upcoming year.

Risks

The risks are about to wash ashore in the upcoming year. The incredible year on year sales growth cannot be taken for granted and CEOs that try to navigate from past market conditions will find that the tides have turned.

2008 has two upcoming trends that need serious depth of knowledge and attention to action in the marketplace for retailers of all stripes: keeping up with changing customers, and changing economic conditions.

Retail CEOs noted that the consumer is more and more fickle, with fast changing tastes, perceived needs and fashion trends accelerating the movements of the Butterfly Customer.

Loyalty cannot be taken for granted. With loyalty programs fast becoming a part of the retail background, retailers need new thinking and new tools in order to prosper in 2008.

Customers and browsers are telling us that loyalty is fading fast, think “PREFERANCING”

If you don’t, your customers and marketplace competitors will.

Consumers are looking for value, relevance, excitement and adventure.

They keep an eye on all your competitors and make day to day purchase selections based on their hierarchy of needs, wants and desires, measured continuously against you and your competitors’ ability to meet or exceed those needs.

Where do you rank, on that scale, and do you have a real time read on the pulse of customers, browsers, and competitor customers?

If you do have a shadow of an idea of your ranking, do you have any idea how you can change it and take fast relevant actions?

If not, you are at serious risk of retail irrelevance in short order.

Retail irrelevance will accelerate quickly into 2008 as consumers are being economically squeezed by increasing debt and lower buying power. Economists estimate that real inflation is running at 7-8 percent, and food/necessities cost increases are accelerating. (Have you noticed the heavy discounting before Christmas? You have been warned.)


Opportunities

Opportunities are going to be coming fast and furious, but retailers will need great radar to read the changing economic winds for 2008.

Consumers will still want value, relevance, excitement and adventure. They will want it all, but they will have to highlight value and relevance far more than in the past.

Attracting new customers, increasing frequency of visit (by increasing excitement), and building the sale and basket at each encounter will become far more important.

Everything you do will need to be measured through the eyes of existing customers, browsers/low users and competitors’ customers.

Retailers that neglect the customer, as well as the potential customer and market, will pay with reduced market share.


Rewards

2008 will be challenging. Retailers that begin to understand the customer and the potential marketplace now will reap immense rewards as they gain on competitors with the changes in the economic situation.

Successful retailers will be thinking about market share. It won’t come from increased spending, with the economy and consumers straining under the housing, and credit retrenchment. It will have to come from competitors’ market share. Nimble retailers will be out and ready to poach market share from competitors.

The real question is: Will it be you from them, or them from you?

With gift card giving and receiving in a full tilt upswing, it might be a good time to examine what is driving this retail phenomenon.


Seven things retailers love about gift cards:

• Higher sales
• Sales continue after Christmas and New Years
• A significant percentage of gift cards are never redeemed (pure profit)
• A significant percentage of gift card redeemers purchase higher than the value of the gift (profit and volume)
• A significant percentage of gift card redeemers do not use the full value of the card (pure profit)
• Opportunities to gain new customers
• Fantasies of increased loyalty


Three things customers love to hate about gift cards:

• Gift cards force you to buy where and what you may not want to buy
• Gift cards are easy to misplace (Where the heck did I put that thing?)
• “I want to buy the $82.70 item with my $100.00 gift card. What do I do with the rest?” (they feel used and manipulated).

Retailers thrive by balancing the deeds of the market place with the requirement to enhance profits. Short-term numbers fight with medium and long-term goals. Think about the gift card opportunity. Not only are you touching a large number of customers, but you have an incredible opportunity to reach out to the social network of your customers.


Are you leveraging the network opportunity?:

50,000 gift cards mean:
• 50,000 customers
• 50,000 receivers

Our continuous interactions with these groups suggest a fantastic range of profitable opportunities.

Givers and receivers want flexibility in giving gift cards and redeeming them. Instead of loyalty, think of givers and receivers in an interactive relationship with you, as a retail concept. You provide a solution to their needs, wants and desires.


Differentiate and prosper, or commoditize and head for the bottom of the barrel:


• Can you give future benefits to the purchasers of gift cards in exchange for their loyalty to you?
• Can you use the receipt of the gift card to begin a beautiful new relationship with the person who received the gift?
• Can you educate them about the full range of value you provide?
• Can you use the new relationship to find out about them and your competitors?
• How can you facilitate flexibility in your card program so that gift cards do not become a source of frustration?
• In 2008, gift cards will continue to flood into the market. How will you differentiate your gift card programs to capture the imagination and loyalty of the market?
• As the gift card market commoditizes, will you differentiate meaningfully or will you become another member of an increasing herd?


Consider this final note on the power of differentiation:

When was the last time you walked by an Apple store? Do it soon. It is not just the product; it is the entire Customer Experience that builds interest, value and trust. I suggest that Apple stores add huge value to the pre-purchase and purchase experience. Apple prospers through attention to all of these details.

When you are in the Apple store, keep asking powerful questions:
• Why here?
• Why now?
• What are they buying?
• What is fun, exciting, and compelling?

Watch where people go, what they look at, and what impacts them.

Now ask yourself: What two things could I do to create that kind of pull and reactions to my brand?

On a final note, gift cards are like an invitation to the ball. There is both giving and getting. What better time to rise above the crowd, to stand out and make the market take notice?

Do you remember how you felt when you received the best gift ever?
Did it matter?
How did you feel?

What if you could hitch your sales to a star like that?

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Toronto-based BehaviorWorx Inc. Launches New Customer Experience Feedback Program for Retail Gift Card Programs this Holiday and Beyond

Toronto, ON (PRWEB) December 21, 2007 -- BehaviorWorx Inc. is a self-described Customer Experience Measurement (CEM) company. The core of the business involves measurements gathered through online surveys, customer panels, interactive games, sweepstakes and instant-win prizing, which results in continuous interactive relationships that clients use for market intelligence and interactive marketing. Like everyone else, they have heard about the recent controversies surrounding time limits on gift cards that are creating distrust for the buyers of these cards. Their new CEM Gift Card Feedback Program provides interactive feedback from gift givers and recipients to help retailers increase the value and differentiation of their branded retail gift card.

"Why are gift card sales growing so fast and how can retailers get the most value to customers while avoiding the pitfalls?" asks Martin Hoffmitz, Vice President, Client Partnering, BehaviorWorx. "Gift cards are growing fast because they address a customer need -- one stop, easy gift buying that takes the 'letdown' factor out of gift giving. Customers love the convenience but hate surprises."

It is all about trust. One cannot expect the "fine print" on the card purchase agreement or other material to do a complete job educating consumers. With BehaviorWorx's new CEM Gift Card Feedback Program, the Company will provide an interactive feedback loop to help retailers stay on top of their gift card program, and enable them to educate and motivate their customers.

In order to increase sales from existing card customers and the marketplace, retailers need to understand and own a relationship with their customers, browsers and potential customers. The power of BehaviorWorx's CEM Gift Card Feedback Program lies in:
1. The power of a robust feedback system:
a) Understanding customers
b) Understanding what attracts customers
c) Understanding their competitive position and perception
d) Understanding conversion
e) Understanding the competition's customers' needs
2. Engaging the entire marketplace
3. Real-time engagement with customers

"We know there is a lot of work to do in this sector," added Martin. "We look forward to adding a bit of holiday cheer through better customer interaction throughout the entire year. Our intent for the CEM Gift Card Feedback Program is to help retailers sell more by leveraging the relationship with givers and getters."

About BehaviorWorx Inc. (BWXI)
BWXI has the ability to get a near real-time read on public perception of a brand at any of its touchpoints (e.g., gift cards, store appearances, sales staff, product offerings, current ad campaigns, potential new products or services) and can be easily implemented across many locations. BWXI can also reach out to non-customers through viral email campaigns and direct mail. The BWXI Customer Experience Measurement (CEM) Gift Card Feedback Program for retail gift cards is the Company's core offering.

Company Contact: Martin Hoffmitz, Vice President, Client Partnering, BehaviorWorx Inc., #202 - 222 Islington Avenue, Toronto, ON M8V 3W7, 416.251.0111 x250,
martin.hoffmitz@bwxi.com, www.bwxi.com

Media Contact: Howard Oliver, What If What Next, 416-638-8582, holiver@whatifwhatnext.com