Loyalty Truth

Great brands are those that we recognize without the support of a cheery ad or celebrity endorsement. Kellogg’s products have been the staple of so many breakfast tables over the years that the brand has to qualify for this superlative. The brand rankings on this page bear out the statement, though I thought scores might have been even higher. Maybe it is the individual Kellogg’s products that garner more brand recognition. I’ll bet almost every consumer in the US would recognize one of the flagship cereal brands among Corn Flakes, Rice Krispies, Raisin Bran, or Special K.

No matter how “great” the consumer products brand, the food distribution model practiced over the years has made connecting the consumers who buy products with the products themselves a difficult challenge. Though the quest for consumer data has been significant, the prize for solving the consumer data puzzle is even greater. Tending to rely on traditional merchandising methods, few consumer packaged goods companies have turned to loyalty programs as an answer. That is, until now.

Kellogg’s announced just this week that it is launching Kellogg’s Family Rewards and will be using code-on-pack as a backbone to support a consumer loyalty program designed to create engagement and excitement around its brand and key products. Using code-on-pack methods has been the most reliable way to engage consumers and create profiles to learn more about who buys specific products. MyCokeRewards is probably the best example of a successful code-on-pack program that has embraced new digital technology and social networks to redefine CPG loyalty. Kellogg’s shares in this innovative approach with Coca Cola by sprucing up the consumer’s ability to enter codes through mobile phone apps, SMS and on the web.

Here’s how it works. Consumers can Enter codes found inside specially marked Kellogg’s Family Rewards™packages to collect points. A vibrant rewards catalog gathers together coupons, discounts, gift cards, books, music, magazines, electronics, toys, games, housewares, kitchen accessories, and apparel to give members a plethora of choice when redeeming points collected. Travel experiences and other cool stuff can be won through sweepstakes and contests run from time to time within the program.

To enhance the core  value proposition, Kellogg’s is creating a community within the program, offering recipes, healthy eating tips, and other family related ideas to make life just a bit better. For me, the ability to enter codes on the spot in-store through a mobile device or via SMS makes the program practical to participate in and increases the chances that people will engage and stay interested.

It is “early days” for Kellogg’s Family Rewards and as we learn more and are able to deliver you more intel about the value proposition and communications plan within this program, we’ll share an update. For now, we’re glad to see CPG brands taking a big step towards loyalty by creating a customer strategy that will yield results over time.