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#492: Leaders in Customer Loyalty: Industry Voices | The New Incentive Landscape: Maritz's Collections Motivate Members

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Loyalty360 spoke with Mike Donini, Senior Buyer at Maritz, one of the largest full-service incentive and loyalty partners in North America. 

Maritz began in 1894 as a family-run wholesaler and manufacturer of fine jewelry and watches. During the Great Depression, Maritz pivoted its business to generate income, selling its merchandise to businesses as sales and service awards. The new direction kept it afloat and launched the beginning of what we know today as the incentive industry.  

Today, Maritz designs and delivers large-scale solutions in the areas of channel engagement, consumer loyalty and employee rewards, as well as meetings and events, and automotive solutions. Maritz works with Fortune 500 organizations in industries including finance, shipping and delivery, hospitality, and airlines to design and fulfill loyalty and incentive programs, from program design and operations to purchasing and fulfillment. 

SPEAKER_00:

Hi everyone, this is AJ Schneider from Loyalty360, welcoming you to another edition of Leaders in Customer Loyalty Industry Voices. In these episodes, we talk to the leading agencies, technology partners, and consultants in customer, channel, and brand loyalty about the technology, trends, and best practices that impact the ability of brands to drive unique experiences, enhance engagement, and most importantly, customer loyalty. Today we're speaking with Mike Donini, Senior Buyer at Merits, one of the largest full service incentives and loyalty partners in North America. Mike, thanks for coming on the podcast.

SPEAKER_01:

Thank you, AJ. Glad to be here.

SPEAKER_00:

Excellent. Well, for those who may not be familiar with how Meritz supports a brand's customer loyalty efforts, uh why don't you give us a little bit of an overview on what the company does and how, you know, it does it with the various industries that it works with.

SPEAKER_01:

Sure. So Meritz started in 1894. We're on our fifth generation. It's a privately owned company. Um, it's kind of an interesting story. We started as a watch company and during the Great Depression, had a hard time selling watches. So we went to businesses and convinced them to give watches away to their employees for uh good service, and the incentive industry was born. So ultimately, what we do today is we help improve our clients through rewarding their people. So whether they're employee channel partners or customers, uh we work across many industries, uh B2B and channel. Some of the industries we work with are hospitality, airlines, shipping and delivery, and financial services. Uh we say our purpose is unleashing human potential, and we do that by engaging people and elevating performance.

SPEAKER_00:

So, Mike, um, not only are you guys doing the the buying for your clients' incentive programs, but you're actually running the program from beginning to end and doing the fulfillment of of the incentives that people are selecting as as members of the program. You know, talk a little bit about that piece of of what you guys do.

SPEAKER_01:

Yeah, sure. So we have our standard rewards platform site that we create, and um our met our clients plug into that site, and we're constantly merchandising that site monthly. We're creating new assets for the site, we're looking at the metrics to make sure the site is um engaging people. Um, we we've found, for example, by moving more key items to the home page, we're getting better engagement. So we we create the site, our our clients plug into our site, and then we process the orders, fulfill the merchandise for our clients.

SPEAKER_00:

So, how did you get into the business? How long have you worked for Merits? And have you always been kind of you know in that customer loyalty arena?

SPEAKER_01:

Yeah, yeah. So I started my career at May Department Stores as a buyer and spent 20 years with them in various home store buying jobs and a couple years in Men's Sportswear. And about 17 years ago, I joined Merits in the buying team. Currently I'm over rewards, merchandise rewards, and gift card rewards. And my main function is really to identify trends, um, see what's happening in the market, vendor relationships, vendor negotiations, assortment planning, marketing, and all things around the items we put in the collection.

SPEAKER_00:

Gotcha. And so that's a good jumping in point to talk about the the the collection and and and assortments of of incentives for uh for your clients to offer. How do you start to um put that together? Um, you know, to create an assortment of awards. What does that look like? Is it, you know, obviously super customized to the client that you're working with? Talk us through that a little bit.

SPEAKER_01:

Yeah, yeah, definitely. So ultimately, we want to have rewards that a member would want in their program. Uh, that's the ultimate goal. Um, we may have all been in programs where we didn't have enough choice or too much choice. Um, and those are all not great experiences. So we believe in purposeful choice. And that's uh curating a collection of the best brands and the best items from the best brands, brands like Apple, Yeti, HP Samsung. Um, so we we always want to have the latest models from those best brands too. So if you go onto your rewards program, you want a MacBook and you don't have the current model, you're you're not going to be happy with your program. So making sure we're always current on the models, um, really important, obviously, in electronics. We want to make sure we have rewards that are attention-grabbing rewards. Um, so it's not always about redemption, it's about engagement. You know, we recently had a$125,000 Samsung mini LED TV in the collection, right? Didn't redeem, but it got some engagement. People wanted to kind of know what it was. So those are those are definitely important to have in addition to your table stake items. Giftable items are always great in rewards, especially as we're in the holiday season. So a lot of times we emulate what retail is doing. So we want to have gifts, we want to have holiday prep type items in the collection. Um, you know, video games are great giftable items. So it might be the PlayStation or Xbox. Um, and then also making sure we have rewards across multiple different price points. So, you know, right now the Apple AirPod 3s, AirPod Pro 3s are very popular, and not everyone may be able to achieve those with their reward balance. So we want to make sure we have a price point like a JBL headphone that is a great brand, uh, great product, but at a lower price point. So somebody can redeem for that.

SPEAKER_00:

Gotcha. And I imagine you know, when you talk about the the the sort of the I'll call it the pricing or the price point, I guess, associated with with those. Um, you know, that has to be a discussion, I imagine, with the the clients as well. Um, you know, to sit down with them and say, look, you know, you're maybe aiming a little too high here for the way that your points program is put together. You do you have some some say in that? Do you I don't, I guess when I say say some influence, I guess probably a better word, um, you know, on your clients to to kind of make those those adjustments?

SPEAKER_01:

Yeah, we do. Um, we we want to make sure our collection kind of addresses all of all of those issues. So it might be a gift card that a$5 gift card, somebody wants to redeem on their program, but they only have$5 in points, right? Well, we have an option for that. Or it might be, you know, we've we've we've redeemed for us on personal shoppers uh as much as a$100,000 vehicle, right? So so we we want to make sure we have everything for everyone in the collection, but definitely we want to tailor it for our clients. So we're always looking at what our clients' goals are and making sure that our collection matches what their goals are so that we're putting the right rewards in the collection.

SPEAKER_00:

Gotcha. And and in terms of the products and and and incentives themselves, um, is there a process, a feedback process or access to data that can help inform your decisions based on what the members you know like or don't like about incentives? Like how do you sort of collect that feedback? Because you're you're kind of one step removed from the member itself themselves. So how do you get information like that?

SPEAKER_01:

So yeah, every every day the member is voting on what they like by what they're redeeming for, right? Or what they're not redeeming for. So we're constantly analyzing that data to see, you know, are there categories that are doing very well? And then looking at those categories, looking at what's redeeming and seeing if there's opportunity to expand within those um items or categories, or what's not redeeming and contract in those categories. So that every day we're we're looking at that data constantly. That's that's uh a good insight. Also, you really have to be in touch with retail and what retail is doing because a lot of times our members um, you know, we emulate retail in a lot of ways. So what our members like at retail, they will typically like like in their rewards program. So retail is a great source of information. And then um, you know, social media. Social media is huge, right? It used to be, I've been doing this a while. It used to be the form and grill, the SCN TV stuff would spike, right? And uh, but now it's social media, it's things like TikTok and you know, the Stanley Mug, for example, has been around for over a hundred years, but about five years ago, you know, it had a social campaign and it blew up. So so those are all things that you know we're definitely looking at and and helping to decide the assortment.

SPEAKER_00:

So I you you mentioned uh some generational issues in there, right? So I has I I have to believe your job has changed quite a bit in in terms of how you appeal to you know different generations. You know, you talk about all the TikTok stuff. I mean, the numbers show overall, you know, those numbers skew much younger than you know, than the gold watch did that we mentioned earlier, I think, right? Right. Um so you know, talk a little bit about that and maybe what's changed in terms of the types of products and and incentives that people are interested in based on their on their age.

SPEAKER_01:

Yeah. So one of the big changes within rewards are influencer type rewards. So you have you have macro influencers, where the which are the celebrities that we all know, but micro influencers um are all over the place. Everyone's creating their own content. So we have to make sure we have rewards to support those micro influencers. Um, you know, things like tripods and and lighting and um, you know, AI that's built into all these devices to help people. You know, you could have your own personal cameraman now on a tripod, right? Through through AI. So just making sure that we're constantly looking at those trends, because that is a trend, obviously, um, being aware of the market and and making sure we have product to support that. Originally, influencer type items were actually brought in for business clients, right? To create content. And we found that all of our clients loved it. So we expanded that category for everybody.

SPEAKER_00:

Interesting. So, and not to not to continue my my joke, but but is the is the gold watch still a thing?

SPEAKER_01:

I mean, is that yeah, we still have gold watches. Watches actually do still redeem, they're collector's items for a lot of people. You know, they buy, you know, really nice brightling watches, for example, redeem a lot in our program. They they love it's for collectors and people who like you know watches.

SPEAKER_00:

So gotcha, gotcha. Um, you mentioned specifically electronics uh being a very popular um uh item uh category. What you know that's a a whole sort of you know thing of its own. You mentioned the that fancy TV you were talking about a little bit ago that didn't actually redeem, but but uh but created some engagement. Um, do you go specifically to some of the electronic shows? Where do you learn about uh because obviously you have to be pretty intimately familiar with them to be able to buy those um you know for your various memberships? Where do you learn about that?

SPEAKER_01:

Yeah, so we do attend all the major industry shows, and the CES Consumer Electronics Show is one of the largest. Matter of fact, it's coming up in January in Las Vegas, and we do attend that. Um, there's really been probably three big trends that we've seen over the last couple of years at CES. Um, one is robotics, one is wearable tech, and the other is AI integration into pretty much everything nowadays. Within wearables, for example, we're we may all be familiar with the Ray-Ban MetaGlasses, right? You can capture videos and photos, you can listen to your music, um, and and it really helps you connect with the world around you. Um, seeing more of those wearable type items. Uh, robotics. So Samsung has been showing for several years what they call the Bali, which is the round ball robot that follows you around the house. It's not yet launched in the consumer market. They said they were going to launch it this year, but it hasn't been released yet. But we're seeing more and more products like this. And this is an item that it's really cool. You know, it'll follow you around the house. It can be your personal assistant, it can tell you what's on your calendar for the day, your to-do list. It could be your your fitness coach and project onto any wall um videos. You can take calls through it. It could be a security device. So if you're away from home and a window breaks, it can go to that window and project what's going on to you. Uh, we just added um a product that is available in the market called the Petbot. Um, and that's basically a robotic dog, but it also can be a security device, right? Same way as the Samsung Bali. So robotics are definitely um becoming more and more available in the consumer arena. Um, and then lastly, AI. AI's everyone knows about AI, and AI has pretty much exploded into everything. So we've seen things like microwaves where you could put your food in it and it determines what the food is and cooks your food appropriately, right? There's the tripod I mentioned that that is like your personal cameraman. There's washers and dryers where it could it could see what type of clothes you're putting in, dispense the right amount of laundry detergent, the right temperature, and set the right drying time, all based on what it identifies. We we just added uh birdify bird feeders, and this can identify birds as they come onto the bird feeder and send it to your phone like it's breaking news. Uh incredible, yeah, it really is. You know, the the the meta smart glasses are they're coming with a with a head heads-up display in in the lens. So it's like wearing a computer now on your face. It's it's amazing. Um, and then even Kohler, like Kohler, we're you're probably familiar with them. They do toilet bowls, and so they even have a toilet cam. So it can determine basically your gut health, right? So, you know, that's one of those that I right. So it's one of those buzz items that gets people interested, laugh, and click on it. So it's one of those engagement items.

SPEAKER_00:

So you bring up a you bring up an interesting point uh uh about the the engagement versus the actual redemption. Do do companies work with you and build strategies specifically around that, kind of knowing that, yeah, the toilet bowls, you know, gonna attract a lot of interest, but not too many people are probably gonna redeem for that.

SPEAKER_01:

We we work with our clients on that. So we're bringing them the ideas. Um, and then they're kind of determining in a lot of cases what they would want to use in communication to their members.

SPEAKER_00:

Yeah.

SPEAKER_01:

Okay. But we do have a standard platform where we do feature different items on our homepage.

SPEAKER_00:

Gotcha. And and and I think I already know the answer to this based on all of that cool stuff that you just mentioned. But um, you know, when you're advising clients uh to say, hey, look, you you need to have a diverse array of potential incentives for for people to redeem for uh other than just a, you know, if you work for um, you know, I'm making this up, a set of convenience stores, other than just a discount at at the convenience store that you work at, you know, as part of your incentive, or you know, you you you get that extra mug because that's what your company makes, you know, is mugs. Um, you know, it seems obvious that that you would want uh your members to to have that choice, but is that a conversation that you have to have to kind of talk your clients out of like, hey, you you need to go beyond the mugs that you guys already make?

SPEAKER_01:

Yeah, absolutely. We know that choice increases engagement and it just makes your program more effective. We we know that, you know, one one thing we like to talk about is the halo effect of merchandise. So let's say you're going on vacation to Park City and you rent an e-bike, and you know, you that's a very enjoyable experience for you. You come home, you see there's e-bikes in your rewards programs, you kind of dream about getting one. So that engages you and you start earning rewards, and then you redeem for that e-bike. And now you've got that emotional connection with the rewards. So it connects you to the program and it connects you to a positive experience. And that's valuable, much more valuable than than some other things. But ultimately, sometimes our clients don't want to use in-kind rewards because let's say an airline right now, uh, you know, with with the cutback and flights, for example, they don't they they can sell every single seat that's available. So they don't want people using points for seats, they'd rather sell the seats. So having though those choices of something other than in-kind merchandise becomes very valuable for our clients.

SPEAKER_00:

No, it makes perfect sense. So let me switch gears a little bit to the actual um, you know, products and availability for a second. Um, I I have to ask, you know, based on everything going on, you you mentioned, you know, a real world example of what's going on now with with airlines. Uh, hopefully that will change soon. Um but uh the tariff situation as well. Um, you know, we hear all the time uh that you know having those tariffs in place can make some of the the goods that are made overseas and in other countries um uh more difficult to get, or certainly that the cost might go up. Has that had a material effect uh on your business and and and the programs that your clients are running?

SPEAKER_01:

Yeah, and again, this is a great example of where choice is important because we have seen about 50% of our items affected by tariffs. But what that means is 50% has not been affected too. But ultimately, we have not seen, we really haven't seen a shift in redemption based on tariffs. So people still are redeeming for what they want. Um, you know, inflation in some ways helps rewards programs. I know that doesn't sound like it would occur, but what happens in a lot of times when when inflation is in effect, the consumer, you know, is very careful with their dollar and they will go to their rewards program and use points to redeem for things like gifts or things they need as opposed to spending their own money. So in a lot of cases, inflation does help an incentive program. And then there's gift cards. You know, gift cards are a hundred dollar gift cards, always a hundred dollar gift card, no matter how much inflation or tariffs there are.

SPEAKER_00:

Right. Yeah, no, it makes makes good sense. Also a good segue. Um, this is a uh more of a fun question, I guess, but um obviously the holiday season is is upon us. And in that same regard, you know, whether people are using their uh their points maybe to redeem for a gift that they're gonna give to a family member or or whatever the case might be, um, what what is the the the going you know hot things for for this uh holiday season and and what are the strategies that you're recommending to clients to try and play off that and generate as much uh engagement and uh and interest in in their uh in their programs as possible.

SPEAKER_01:

Yeah, and uh definitely, yeah, as early as you can plant that seed, the better. We we've seen retail do this, right? So you you start seeing holiday advertising now in October. Uh, and that's also important within rewards programs that you're letting people know, hey, we're we're here, you know, you can come on and you can redeem your points for the holidays. So communicating early uh uh if possible is key. Also on your site itself, it's important to when when when the member goes into the site, it's really important that you're featuring those top items, you know, at the top of your page. Um, you're not making them dig to find it, you know. So again, just featuring the right items on your page. Uh we know that holiday promotions increase traffic. However, I would caution against that um if you're not gonna communicate it. So if you're not gonna communicate to your members that you have a promotion, you're probably just gonna shift um redemption within your rewards platform. But if you communicate it, you're gonna increase redemption. So it's crucial if you do run a promotion that you're communicating it so people are going into the site.

SPEAKER_00:

Gotcha. So you you partially got into this a a little bit already, and I and and I think the most basic um indicator that a a program is is working is the is the redemption uh uh rates and and so on, I'm sure. And and I and as you've mentioned, that gives you insight into what items are are um important to people, which ones maybe are not. But overall, when you work with your clients and and and maybe even internally at your own company, um what are the KPIs that you look at and and sort of keep track of um that indicate to you, hey, this is these are the the programs are working and and and maybe not. Uh, but also um, you know, maybe some that you think people should look at that that maybe they're not.

SPEAKER_01:

Yeah, so um the the KPIs that are important. I you know, obviously, other than the reports and everything we look at, the the thing that really sets a program apart is customer service. So making sure that our customer care team is taking care of the member. You know, if if a member has been saving up reward points for years and they go to redeem and that experience is not great, and you don't have someone there to help them, you know, that's really going to diminish that rewards program. So we have a great customer care team, you know, that, and we measure their their engagement with all of our members. Um, as a matter of fact, our personal shopper, our travel experience team, and our customer care team are all internal Merits employees. So they're here, they work here, they're helping all our members through every channel they may be in. So that's that's definitely important.

SPEAKER_00:

Mike, so all this fantastic information. Um, what is next for Merits and what can we look forward to in 2026?

SPEAKER_01:

Yeah, so one trend we've seen is our members like to shop local. They um we we added a gift card product that allows them to shop local for either restaurants, spas, or salons. And we found that this is done very well in our test, and we're expanding that against uh across all clients now. So that's something exciting. And we ultimately we live and breathe rewards, so it's what we do. Um, and so just stay tuned for further developments.

SPEAKER_00:

Very cool, very cool. Um, all right. So, Mike, we like to do something called quick fire questions. And um, you know, generally speaking, they're they're um they're more fun questions designed just to kind of kind of get in your head a little bit and and see what makes you tick. Um, and so uh the idea is I'm gonna I'm gonna fire a question at you and then in you know one or two words or a short phrase, uh, you know, give us the first answer that that comes to your mind. Does that sound good? Sure. All right, here we go. If you had a day off or a week off from work, what are you doing?

SPEAKER_01:

Um going to the beach if I can.

SPEAKER_00:

Good answer. Good answer. If you could live in any city or country, where would you live?

SPEAKER_01:

Any w any warm climate.

SPEAKER_00:

All right. I guess that goes with your with your beach answer. Right. Um if you could go back to school, what would you study?

SPEAKER_01:

Artificial intelligence.

SPEAKER_00:

Also very important, yes. And how about we'll we'll end on this one. Um, what motivates you when you're tackling challenges at Merits?

SPEAKER_01:

Oh wow. I would say there's a solution to every problem.

SPEAKER_00:

Great, great advice. That's awesome. Mike, thanks for taking the time to speak with us today on our Leaders in Customer Loyalty Industry Voices podcast. It was great getting your perspective on customer loyalty, and we look forward to learning more from you and the team at Meritz.

SPEAKER_01:

Awesome, thank you.

SPEAKER_00:

I want to thank everyone for tuning in to our Leaders in Customer Loyalty Podcast series. If you haven't already, please subscribe and follow Loyalty360 on YouTube and LinkedIn. The links are provided below. Please join us every Tuesday for another edition of our Industry Voices podcast. Thanks for coming.