Leaders in Customer Loyalty, Powered by Loyalty360
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Leaders in Customer Loyalty, Powered by Loyalty360
Leaders in Customer Loyalty: Industry Voices Modernizing Loyalty with Insight, Flexibility, and Emotional Connection: A Conversation with Beth McCoy, President of CORA Loyalty
Brands currently face a variety of challenges including rising customer expectations, generational differences, and increasing desire for seamless omnichannel experiences. CORA Loyalty is answering that call with a comprehensive portfolio that integrates next-gen tech, deep personalization, and strategic services. At the helm is Beth McCoy, President of CORA Loyalty, who joined Loyalty360's Industry Voices series to share her vision and strategies for evolving loyalty in 2025 and beyond.
"CORA Loyalty is a newly created portfolio made up of three separate companies or entities that some people may be familiar with from the loyalty marketplace," McCoy explains. These include RewardOps, an API-based rewards marketplace; Carlson Marketing Solutions, an enterprise-grade points bank and engagement platform; and Points at Work, a channel incentives tool tailored to employees and manufacturers.
Together, they form an end-to-end loyalty ecosystem, bolstered by a services layer offering data science, digital marketing, and curated marketplace solutions.
Good afternoon and good morning. This is Ethan Perry from Loyalty360, welcoming you to another edition of our Leaders in Customer Loyalty Industry Voices series. In these episodes, we talk to the leading agencies, technology partners and consultants in the world of customer channel and brand loyalty about all of the technology trends and best practices that are impacting the ability of brands to create unique experiences, enhance engagement and, most importantly, drive customer loyalty. Today we have the pleasure of speaking with Beth McCoy, president of Cora Loyalty. Welcome, beth. I'm glad you joined us, beth.
Speaker 2:McCoy Great to be here. Thank you, Ethan.
Speaker 1:Well, to start off, you know, can you introduce yourself to our audience? Tell us a little bit more about yourself and your role with Cora and your background in loyalty.
Speaker 2:Yeah, thank you. So I recently took on the role of president of Cora Loyalty. Cora Loyalty is a newly created portfolio made up of three separate companies or entities that some people may be familiar with from the loyalty marketplace. So RewardOps is a modern API-based rewards marketplace and fulfillment engine for enterprise brands, fintechs and loyalty program operators. Carlson Marketing is the second entity part of the core loyalty portfolio, and Carlson Marketing Solutions is an enterprise grade points bank loyalty and engagement platform serving financial institutions, travel providers and large retailers. And the third company rounding it out, third product is points at work, and this is more in the incentive space and channel program, so tailored for employees and manufacturers. So that's the technology side of it, Ethan. We also have a services layer wrapped around all of this with a really robust data sciences offering digital marketing solution and also marketplace curation services as well, and also marketplace curation services as well. So when you put all of these elements together, you have a comprehensive end-to-end loyalty solution that covers pretty much every aspect of the market.
Speaker 1:Amazing, wow, that's a lot of offering.
Speaker 2:It's newly minted, this core loyalty, so it is so hot off the press. In terms of my background, I began my career in the airline industry and that's where I first connected with professionals managing the airline's loyalty program. One of them later joined a loyalty firm and hired me away into the wild and wonderful world of consumer loyalty. Years later, I've built expertise in developing comprehensive loyalty solutions and I've helped launch and grow two loyalty startups and worked with several large North American brands, mainly in the financial and travel industries.
Speaker 1:Awesome. Well, as part of your newly minted group and all the amazing stuff you guys recently did, you know released some research on consumer card preferences and credit card usage related to loyalty and rewards. Can you share a little more about the key findings and what sparked the need for you guys to do this research?
Speaker 2:Yeah.
Speaker 2:So we decided to do this research just to better understand the evolving landscape of consumer preferences for loyalty and rewards cards, and especially in an increasingly digital first environment.
Speaker 2:So some of the key findings included were that loyalty and rewards really do lead to influencing which card Americans use. We should note that this is based in the US and I'm based in Toronto, but this was a US-based poll, so for 55% of Americans, loyalty and rewards credit card benefits are a key factor in determining which card is used to pay for their daily purchases, and this is a factor that comes into play ahead of convenience and credit limit. Secondly, nearly three quarters of Americans cite rewards related factors, such as the ability to earn redemption options, sign up bonuses, as considerations when opening a new credit card, and this compares to factors like interest rates and security and fraud protection, existing relationship with the user that type of thing. And then, lastly, earning points or miles on purchases is one of the most appealing credit card benefits to 45% of Americans. So those are some of the things that we took away from the Harris poll that we conducted Awesome.
Speaker 1:Yeah, one of the other things that we noticed in your research, when we're looking at it, is when making a payment with a credit card. I believe 55% of respondents choose to pay with a card that has a loyalty or rewards program attached to it. So, for brands who might not have their own credit card program like, how do they ensure that they're giving their customers the best possible loyalty or rewards experience?
Speaker 2:Yeah, I think even a lot. Most brands probably have some type of loyalty program, especially the credit card loyalty program in place, but it might be somewhat rudimentary or not particularly feature rich. So there are opportunities to expand that and make it more appealing to members. So, above all, the loyalty program has to be really simple and straightforward. Really simple and straightforward. So customers need to find it easy to earn or redeem points without confusion and understand what's going to take them to the next status or perk. So that ease of understanding and usability will really drive both loyalty and engagement. Secondly, it's important to avoid the kind of one size fits all approach based on, like broad and simplistic segmentation. We're all individuals and unique, so we need to account for those different characteristics and behaviors and there are solutions out there to offer loyalty programs that can really deliver real and personal value to members, increase satisfaction and really make members customers feel known and seen, which overall will improve that retention, transaction frequency and overall spending with the card. And then, lastly, this one seems kind of it seems like it should be well known or considered, but make sure that programs members are aware that the program exists.
Speaker 2:It's always surprising to me when I hear people talk about that they didn't even know they were part of a loyalty program. I was chatting with someone recently who's been doing some work with us and he was a member of a credit union for a long time. Some of his financial products there and it wasn't until he started talking with with those of us at reward ops and Carlson that he he thought to look and he'd been part of a loyalty program with that credit union for a really long time and didn't even know it. So kind of seems like a given. But creating that awareness, that consistent awareness of the program, is really critical as well.
Speaker 1:Amazing. Yeah, so we know everyone loves benefits. Your research backs up the fact that folks love earning points or miles on their purchases. But how should brands be structuring the card benefits to make sure that they're properly appealing to the customers?
Speaker 2:Yeah, I think there's a few different considerations in approaching this and making sure that you've got those card benefits that fit with your customer base. So, first off, making sure that the rewards categories match how your customer base is actually spending. So, for example, depending on the audience, it might make sense to offer rates on travel, for example, or higher earn rates on travel. It also really makes sense to ensure that you're offering earn on everyday expenditures such as grocery and gas, and also targeting some of those categories as well to offer accelerated earn where your members are spending.
Speaker 2:Flexible redemption options are sort of the other end of the scale. They're really key in allowing members to redeem for merchandise gift cards. Travel we often see statement credits or even smaller things just such as being able to redeem your points for a coffee. So that kind of speaks to a wide range and tailors to members. Added perks are something else that can be included as card benefits, and these can vary again based on the consumer base. So things like exclusive concert or event tickets for your travel, cards offering airport lounge access, charitable donations or eco-friendly perks can also offer a different point, a point of differentiation as well.
Speaker 1:Yeah, that's awesome, and so one of the things that we hear about in terms of like making sure people are getting the benefits they want is some of the challenges that brands have around the differences in loyalty expectations across generations. Now that Gen Z is firmly in the workforce and getting credit cards and earning points, how do brands tailor their loyalty strategies to meet the needs of all these different demographic groups that are now in? You know, have buying power?
Speaker 2:Yeah, so that was definitely a key part of the Harris poll that we conducted, and from that we learned that 64% of baby boomers are the most likely to be influenced by loyalty and rewards programs, followed by Gen X, millennials, and then ultimately, gen Z, which you just talked about. 40% of Gen Z are influenced by loyalty and rewards programs. So, in terms of looking at trends among the generations, baby boomers prefer more traditional programs with discounts and tangible benefits and sort of that in-person contact, but they're starting to become more accepting of digital methodology. And then, as you progress through the different demographics, the inclination is more towards those that are digital first and experience oriented, with Gen Z valuing more instant gratification.
Speaker 2:We talked about that free coffee, earlier gamification and more of those purpose-driven brands, but I think it's key to mention there are some commonalities across all the generations, though, and digital engagement is definitely key for all. But, as we mentioned, in-person contact still plays a role for some of the older customers. Personalization there's that word a role for some of the older customers. Personalization, there's that word is critical. So meeting the member where they're at, so you know, unique experience for the younger generations. And then, lastly, just that choice and flexibility across a wide range of rewards and experiences.
Speaker 1:Yeah so I mean you just mentioned personalization and I know in your 2025 trends predictions, you know you really you predicted businesses are going to refocus on delivering those tailored relationship driven experiences. You know using personalization to build trust and ensure customers feel valued. Do you have some recommendations for brands who are looking for ways to improve their personalization efforts?
Speaker 2:Yeah, I think the area to start is just around the data and the analytics. So loyalty program redemption analytics are a critical driver of program success and customer engagement, but they're also a crucial indicator of health of the program and overall member commitment. So leveraging that data to create targeted experience can really boost results. And studies show that personalization can increase program engagement by up to 40%. So some I mean there's a myriad of ways to tackle personalization, but some of the key opportunities include browse and search, history-based recommendations. So this allows tailored product selections to be delivered to members to keep them engaged.
Speaker 2:Points balance, appropriate offers so dynamic offers that match a member's points balance, either programmatically or through member driven choice. Nothing more disheartening than sending an offer to a member that isn't available to them. Wishlist reminders are another opportunity. So you can kind of give a little nudge to members for items that they've either shown interest in in the past or that they may actually have saved in their wishlist. Abandoned cart recovery. So this allows members to complete purchases by connecting their points or personalized rewards that was left in their cart and then just creating offers and campaigns that align with members' favorite categories or purchase history. We talked about that earlier and making sure that you know where and what your members are spending on, and then you can create offers and campaigns around that, and then you can create offers and campaigns around that, so that all tapping into all of these different opportunities can definitely make brands have their loyalty programs more relevant, engaging and effective.
Speaker 1:For sure. So can you talk a little bit about what barriers brands might be facing and achieving that kind of real time personalization and how they can overcome those obstacles?
Speaker 2:I think sort of the biggest barriers for this come down to sort of a couple of different issues, and that's related to data and technology. So we work with some clients or talk to clients that have a wish to offer this in these programs, but their data is siloed, it's sitting in all different systems, so it's hard to kind of stitch that together and actually so that you can get that kind of complete picture of the member base. So this it may require an investment to bridge that gap or build a unified data system. And then secondly, legacy technology can be a limiting factor as well. So an older technology stack really can't handle, doesn't have the horsepower to handle that real-time processing or a dynamic customer journey. So moving to more modern cloud-based solutions or integrating APIs can allow that for those real-time upgrades and address those obstacles.
Speaker 1:Awesome. Well, on the other side of personalization is the emotional connection, and one thing that we continue to hear about from different brands and different consultants and agencies is that personalization efforts need to feel authentic and not invasive to customers. Do you have any advice for how brands can ensure that they're doing personalization in a way that feels good and not overwhelming or creepy?
Speaker 2:I was going to say creepy. So I think transparency is really key on this front, so ensuring that customers know what data is being collected and why. And it's also really really, really important as well that customers can control their preferences and permissions so they can opt in or opt out, making sure that personalized offers and content are really valuable to the customer. So, again, that ties back. It sounds really repetitive, but talking back, tying back to that data, that data element as well, where, where are we able to offer members something that really resonates with them and is it just kind of for the masses? And then, lastly, I think frequency of messaging is really important as well. Balance is key. So over messaging can feel really pushy and irritating and causing people to opt out, whereas under messaging can really feel disconnected. So it's kind of getting that balance in figuring out how frequently the member interacts with the program, which kind of are different engagement signals, so that you can figure out that proper balance for messaging.
Speaker 1:Great. Well, another one of the things that we saw in your trend predictions for 2025 is the strong demand for seamless, simple, convenient shopping and fulfillment experiences. What ways are you seeing brands start to simplify their customer experience strategies in 2025?
Speaker 2:Yeah. So I mean, everybody knows the world has changed vastly over the past number of years and customer interactions stretch across a multitude of channels. So you've got the tactile part of a physical store right down to the digital realms of website and social media, of a physical store right down to the digital realms of website and social media. So creating seamless omni-channel experiences where there's a fluid and consistent interconnected experience for the customer and to gauge through, is really, really key. So some of the ways that that can be approached is deep integration across channels. So integrating the physical and digital channels so this is actually to really do this well, it goes beyond linking customer touchpoints and it's a more holistic approach where all aspects of the business are connected. So things from customer service to inventory management and CRM all stitched together and shared real time. One example of this is Nordstrom. They've made great strides in this area. So customers can check product availability online, reserve items, try them on in store, have online purchases delivered to their homes, and this is all done without redundant steps.
Speaker 2:Going back to the data analytics, that again plays a real role in understanding customer behaviors, preferences, pain points across channels. So, analyzing the data collected from those touch points, you can identify the trends, predict behaviors and customize experiences, which will allow the brand to craft really highly personalized interactions that enhance that customer journey and drive that further engagement. And then another one, of course, is optimizing for mobile. So this is a necessity now, it's really not just an option. So the mobile app should have intuitive navigation, really speedy loading times and features such as location services, mobile payment options, loading times and features such as location services, mobile payment options. All of that stitched into the phone. And I think we're all familiar with one of the leaders in this area and that's Starbucks. We all get, have our I'm sure have our Starbucks app. They're fantastic at this, so you know the ability that they offer to order and pay ahead, find stores, earn points, you get all those push notifications. So Starbucks is definitely a leader in this area.
Speaker 1:Awesome. Well, you gave some great examples there, but for some brands that may be a little younger in their journey of creating that, what are some easy wins brands can find to improve their customer experience strategy?
Speaker 2:I think that the top one for this Ethan is just actively seeking and prioritizing customer feedback. It's the best way to understand the friction points in the areas for improvement in the overall customer experience. This can be collected through surveys or social media. I mean, all brands sort of have that kind of basically set up or even direct feedback with a customer service agent. So I think that's probably the easiest, quickest. When there's a wealth of data there, customers are willing to share it and they're the experts, they're the ones that are using the program. So I think that's probably one of the easiest wins that brands can do.
Speaker 1:Couldn't agree more. Yeah, we saw that kind of common theme during the Loyalty360 awards. At our recent Loyalty Expo, Many many of the winners shared that same philosophy of being laser focused on the voice of the customer and that customer feedback. So I couldn't agree more.
Speaker 2:I'm going to have to make sure I get to this Loyalty 360 Expo next year. Unfortunately, I couldn't make it this year.
Speaker 1:Absolutely. You've got to come with your team next year yeah. So, in our state of customer loyalty report, we saw that 72% of brands told us they feel there's a sense of or a sea of sameness regarding customer loyalty programs. Can you maybe share?
Speaker 2:an example of a couple of brands that are successfully differentiating themselves through a unique strategy or a campaign or a reward offering. Yeah, we recently did some work with some consultants and this one really stuck out for me and I think it's really unique and that's why I wanted to share it here. So they talked about ritual rewards. So you don't really hear that often in the space, but the example that was used was at St Regis hotels. The guests are invited to participate in a nightly champagne sabering ceremony and I'm like what's champagne sabering? But it's where a bottle of champagne is opened by slicing the top of the bottle, the cork, off, with a saber. So those of you who watched Emily in Paris would have seen this season two as well. It was, it was an activity on there. Paris would have seen this season two as well. It was an activity on there.
Speaker 2:But just a really fun, memorable ritual that for St Regis that blends sort of the history and exclusivity and kind of social storytelling. So I always think that was neat, just because it's really outlandish kind of and far out there Creates a sense of belonging. So they feel like they're part guests, feel like they're part of a tradition. It's that emotional connection and it really differentiates the experience. You get away from sort of the traditional levers of a loyalty program, where it's discounts and points, and it's just something that they're really immersed in and builds that status.
Speaker 2:So I think that one that was always really stuck with me and it's always it always gives me pause to when I think about it too. It's like really what could brands do if they think outside the box? That may not be something in person that all brands could do, but just kind of really thinking outside the box on that, I think is unique. And then the last part. I mean we haven't really talked a lot about gamification, but that's certainly coming up a lot. I know that was some feedback that our team brought back from Loyalty360 are the gamification elements. So that's been done fairly well by some of the larger players in the loyalty or in the space. But I think there's some opportunities as well for gamification, some further opportunities in the loyalty space.
Speaker 1:Definitely. We continue to hear that that's something that people are exploring and looking at, trying to figure out new and exciting ways to get people to engage through gamification. So well, looking forward for the second half of this year, what do you see as the next big thing in customer loyalty and what is Cora loyalty focused on?
Speaker 2:as we continue through the rest of this year.
Speaker 2:What do you see as the next big thing in customer loyalty and what is Cora loyalty focused on as we continue through the rest of this year?
Speaker 2:So, ethan, paying with points functionality remains a key priority for us, and that's not to say I mean there are solutions in the marketplace right now, but we just see that there's probably an opportunity to enhance that, do it a little bit better, offering members more choice and flexibility, and we know there's sort of strong demand for this feature. So we are investigating, we're looking into different ways that we can do that. So I think that there will be a lot of innovation continued to be poured into pay with points. But I think, rather than a wholesale shift over into sort of direct merchant integrations or completely going all in on pay with points, I think it's going to be more. We see it more as more of a hybrid approach, so that pay with points is complementary to retaining sort of the inprogram redemption options such as the gift cards, aspirational merchandise. So we see kind of a we see sort of a hybrid approach with that. But Pay With Points is definitely a focus for us going forward.
Speaker 1:Awesome. Well, that brings us to the end of our regular questions and we're time for our world famous quickfire questions. Okay, so we try and keep these to like a one word or short phrase answer, but it's a fun way for the audience to get to know you a little bit more. So, okay, you're ready. We're going to jump right in.
Speaker 2:Yep Ready.
Speaker 1:How would you describe your work life?
Speaker 2:Every day is a new challenge.
Speaker 1:If you have a day or a week off from work, what are you doing If?
Speaker 2:you have a day or a week off from work, what are you doing?
Speaker 1:You'll find me curled up with a good book, a spy story. If you could live in any city or country, where would you live?
Speaker 2:Germany.
Speaker 1:If you could go back to school, what would you study? Psychology.
Speaker 2:What facet of your job would you like to know more about? I love everything that I know. I love all elements of it and always want to learn more about every element. There isn't one that sticks out.
Speaker 1:What facet?
Speaker 2:of your job.
Speaker 1:Would you like to know less about?
Speaker 2:I think that goes the same. All elements are important. So I think nothing that I would like to learn less about, know less about.
Speaker 1:What motivates you when tackling challenges at Cora?
Speaker 2:The freedom to come up with creative out-of-the-box solutions.
Speaker 1:Awesome.
Speaker 2:What do you draw inspiration from? What really lights your?
Speaker 1:fire.
Speaker 2:Reading, Reading A lot of historical fiction that I just, I love that diving into that.
Speaker 1:What is your favorite sport or hobby.
Speaker 2:Hockey is my favorite sport and hobby. I'm a plant aficionado. I love plants.
Speaker 1:And what do you typically think about at the end of the day?
Speaker 2:Work, ethan, think about work.
Speaker 1:Well, Beth, thank you so much for taking the time to speak with us today on Leaders in Customer Loyalty. We loved having you as part of the Industry Voices series. It was great getting your perspective on customer loyalty and we really look forward to learning more from you and the team at Cora throughout the rest of the year, and hopefully we'll see you with the team at the next Loyalty Expo.
Speaker 2:Great Thanks for the time. Ethan Really appreciate it.
Speaker 1:Thank you, and thank you everyone for tuning in to Leaders in Customer Loyalty. If you haven't already, please make sure you subscribe to the podcast wherever you're listening. Follow Loyalty360 on YouTube and LinkedIn for all the latest updates and join us every Tuesday for another edition of Industry Voices.