The Ford Motor Company Celebrates 120 Years of Loyal Customers! (Archive Episode) (#688)

Beth: It’s a points-based program, and we reward points today for activities, and always have, and it’s so fun to see how people use them.

Beth: Some people have used their points to buy a new vehicle.

Beth: Not a lot, it’s a lot of points about what has happened.

Beth: Can you imagine walking into a dealership and saying, this one’s on Ford because I’ve been a loyal member using their credit card or servicing through them, and I have enough points for a brand new free vehicle.

Paula: You know, I actually haven’t even thought it would be possible to get a free car.

Paula: That’s unbelievable.

Beth: We just stepped back and we, of course, by direction from our customers and our dealer partners, they said, you know, we have some changes to make.

Beth: It’s a little too complicated.

Beth: It’s a little too confusing to communicate and even understand fully.

Beth: And that sometimes things like that friction will inhibit participation.

Beth: We just simplified the program.

Beth: It was just announced to our members, could not be more excited.

Beth: And it’s so easy.

Beth: I think a kindergartner can explain it now.

Beth: And that’s good, right?

Beth: So it’s so simple.

Beth: It’s about $1.5 billion in points that we have awarded.

Beth: And I feel really great about that because that’s every one of those dollars is an appreciation dollar that goes back into somebody’s hearts and mind that they know that the company they’re buying their vehicles from appreciate their business and are coming back in and giving that to them.

Beth: And a lot of what we’re doing in the next couple of years is really doubling down the benefits and rewards.

Beth: What else can we do?

Beth: What else can we offer?

Beth: And curating special experiences.

Beth: How lucky are we that we get to spend our days thinking about how to reward people and recognize people like?

Paula: Yeah.

Beth: It’s so lucky.

Paula: Hello and welcome to Let’s Talk Loyalty and Loyalty TV, a show for loyalty marketing professionals.

Paula: I’m Paula Thomas, the founder and CEO of Let’s Talk Loyalty and Loyalty TV, where we feature insightful conversations with loyalty professionals from the world’s leading brands.

Paula: If you work in loyalty marketing, join us every week to hear the latest ideas and insights for loyalty marketing specialists around the world.

Paula: Hello and welcome to today’s episode of Let’s Talk Loyalty and Loyalty TV.

Paula: Today is the first time we’re featuring an automotive brand as our guest, either on Let’s Talk Loyalty or Loyalty TV.

Paula: And I’m delighted it’s such an iconic brand.

Paula: The Ford Motor Company has recently celebrated 120 years in business.

Paula: And they truly are a pioneer of modern transportation.

Paula: As you can imagine, their approach to loyalty is equally exciting.

Paula: So I was thrilled recently to meet Beth Leverton at the Comarch User Group Conference in Krakow.

Paula: Beth is the Director of Rewards Loyalty CX at the Ford Motor Group.

Paula: And she joins us on the show today to share both the benefits and challenges of driving loyalty for such a huge organization that sells cars in over 126 countries globally.

Paula: I hope you enjoy my conversation with Beth Leverton from the Ford Motor Company.

Paula: So, Beth Leverton, welcome to Let’s Talk Loyalty and Loyalty TV.

Beth: Paula Thomas, it’s such a pleasure to be here.

Beth: I feel like it was just a moment ago when we met this spring, and now fast forward to later in the year, and I’m here with the queen herself, Loyalty Royalty, and I couldn’t be more excited.

Paula: Thank you, Beth.

Paula: Right back at you.

Paula: I think Loyalty Royalty, for sure, we were very blessed to be brought together in Krakow.

Paula: You gave an extraordinary presentation about what’s going on from a loyalty perspective in Ford.

Paula: And I’d often thought, my goodness, you know, it’s the perhaps, you know, second biggest purchase of all of our lives, and yet I hear so little about loyalty in the car industry.

Paula: So I am thrilled to have you here, and we have a big story to talk about today, both, I suppose, in terms of your personal loyalty to Ford, which definitely has to be recognized, but overall, what you’ve created with this rewards program.

Paula: So as you know, Beth, we always start our show trying to get a sense of what our loyalty professionals really admire and appreciate from a personal perspective, but as a loyalty professional.

Paula: So let’s get straight into it, Beth.

Paula: What is your favorite loyalty program, please?

Beth: Absolutely.

Beth: Well, first of all, it was hard to choose because I realized I participate in a lot, and I know in a previous podcast, you can focus on, you’re very loyal to the ones you use the most.

Beth: But I participated in a number, but I travel a lot for work and for professional life as well.

Beth: And there’s no way I could skip saying Delta Airlines.

Beth: And the list is so long why I would choose Delta Airlines.

Beth: I know a number of people have, which explain why they’re so successful in this space.

Beth: But some of the things I think about, they’ve literally had me change my behavior.

Beth: I’ve changed my behavior to stay a part of their program.

Beth: And I’m just going to give a quick example.

Paula: Please.

Beth: I was looking for a tropical vacation.

Beth: I was pretty excited about it.

Beth: But then I noticed that Delta didn’t fly to that unique destination.

Beth: So I changed my destination so I could stick with my coveted, beloved Delta Airlines.

Beth: And I thought, oh, I stepped back and thought, oh my goodness, a program so strong, they changed my vacation destination.

Beth: And so many things, they own my wallet.

Beth: I love their program in an entirety.

Beth: And when I think about on a day-to-day basis, how much I use it and appreciate the rewards and the recognition and the perks that they offer.

Beth: And as a loyalist in this space, I so appreciate some of the cool things they’re doing.

Beth: Delta is a hub in Detroit, which is close to where I live.

Beth: And I was at the airport one day, and it was a delayed flight from weather.

Beth: And a lot of, you know, some people were getting a little frustrated and in rolls this sunshine and welcome wagon of snacks and a wheel and all sorts of activity.

Beth: And it was a Delta team.

Beth: They didn’t want folks to be unhappy while they’re waiting.

Beth: And they brought in this whole experience, like gaming with a wheel of gifts and handing out treats.

Beth: And I spoke to the gal that was running it.

Beth: And I said, this was really nice.

Beth: And she said, you know what, something we’re piloting.

Beth: And I’m glad you see that you like it.

Beth: And I thought, very cool.

Beth: And we pilot a lot of things at Ford too.

Beth: And to see them provide that really great experience like that, they always impress me.

Beth: They always impress me.

Beth: And so I love Delta.

Beth: But again, I have so many.

Beth: It was hard for me to choose the pragmatists.

Beth: And these sometimes would say Costco, because I use them every single week.

Beth: I fill up, you know, I appreciate the rewards for my filling up my gas tank, but also traveling so much.

Beth: National, national through enterprise holdings have just, they make life so frictionless for me when I travel.

Beth: And again, change my behavior.

Beth: I will pay a little extra even sometimes to make sure I have that national experience.

Beth: A little bit earlier in my career, learning about loyalty, I read the book Driving Loyalty.

Beth: I’m not sure if it’s a really great one.

Beth: And in that book, it talks about the enterprise story and how they purposefully have their three different brands and how they come to market for their guests.

Beth: And I feel it, I feel it, but they know that I’m a business traveler and they are giving me that frictionless, you know, get to the airport, really nice experience of grabbing that car and going and bringing it back with ease.

Beth: And so you really appreciate it.

Beth: I think the more you travel, and I know you have a lot of experience in those spaces, your business, business background as well as the loyalty space, but in traveling, but I really appreciate those from a consumer perspective and through the lens of someone who works in loyalty.

Paula: Oh, wonderful.

Paula: Thank you, Beth.

Paula: I mean, Delta is an airline we haven’t yet had on the show, I will confess.

Paula: So again, of course, extending an open invitation if anybody’s listening from Delta.

Paula: I know there’s a lot of change going on for them at the moment, and it’s a little too soon, of course, to see how that impacts somebody like you as a frequent traveler.

Paula: But at the end of the day, the fact that you changed a tropical holiday destination in order to stay and fly with one airline is off the charts, bonkers.

Paula: And I seem to recall you also did a dedicated, I think, it’s normally called a mileage run, but you did a diamond run to retain status, yeah?

Beth: Yes, I sure did.

Beth: Yeah, I called it a diamond run.

Beth: I will fully confess, I flew to Miami with myself on December 31st because I was at risk of not being a diamond and that was not an option.

Beth: And I was slightly embarrassed, Paula, until I ran into a number of other people also on diamond runs that day.

Beth: And I thought, this is a company that has loyal members who will do whatever we need to do to make sure that we enjoy those perks all year.

Beth: So busted, I’m busted.

Paula: Totally busted.

Paula: I think the only thing more extreme than actually doing that and again, spending your time and money to retain your status is when you sometimes hear about brands where people put a tattoo, maybe like a Harley Davidson or something.

Paula: So someday we must have a story from maybe a member of a program who’s done something like that.

Paula: So I hope you’ve know Delta Tattoos, but anyway, well done you on practicing what you preach and I suppose even sharing the story of what they did at the airport that day.

Paula: So it really is sometimes the small things that count.

Paula: So it’s a really, really good example.

Paula: So let’s get into your career, Beth.

Paula: As I mentioned, I think your actual loyalty to Ford, which is, of course, an iconic brand.

Paula: And again, the first automotive loyalty conversation that we’ve had.

Paula: Tell us about both your career and also your family history with Ford, because that’s something that is truly exceptional.

Beth: Absolutely, happy to.

Beth: And honored that we’re the first automotive company here.

Beth: You know, you said the tattoo of Delta.

Beth: If I would get one, it would have to be the Ford Oval, because not only have I spent my entire adult career here with 30 years with Ford Motor Company, blessed and honored to have had that opportunity.

Beth: But Ford Motor Company this year is celebrating 120 years.

Beth: And I’m so honored to say that my family I’ve married into, we have the Leverton family, we have been at Ford for all 120 years.

Beth: And so working for Elena Ford in the office day to day, I told her the Ford family has been supporting our family for all 120 years.

Beth: And I’m eternally thankful for that.

Beth: So yes, all 30 years.

Beth: But I do have to say my, I feel like my kind of passion for this space of being a servant leader to the customer, really understanding the benefit and value of amazing experience.

Beth: Started with when I was in college and worked for Disneyland.

Beth: And I think one would argue, could argue that they’re just amazing at providing those magical experiences throughout your day.

Beth: And they go to the utmost lengths to make sure customers have that really amazing experience.

Beth: And some of those early memories of seeing that and being trained by them in their very specific ways that they’re so successful at, I’ve taken throughout my years at Ford.

Beth: And while 30 years have been in a number of different roles throughout assembly, manufacturing, marketing, tech, and now really fortunate to be a part of this customer experience team at Ford.

Beth: You know, and it’s the customer experience team, while all 120 years at Ford, we’ve really dedicated to serving our customers, meeting their needs, providing fabulous products for them.

Beth: It was just about five years ago that the company recognized that that experience, that customer centricity, that customers want us to know them, show that we know them, show up to them in a personalized manner.

Beth: That is so important.

Beth: And so rather than being as much as a product focused company, we are a customer focused company.

Beth: And through that, Elena Ford, one of the many things she’s pioneered and trailblazed at the company was creating this customer experience organization where we provide loads of experiences to differentiate ourselves, to help set Ford apart in this space and really to continually look for ways.

Beth: In my space, of course, we get to look for ways all day to love on and reward and thank and show our appreciation to our millions of people who own Ford vehicles and been buying them for all these 120 years we’ve been in business.

Paula: Incredible, incredible.

Paula: And you make a good point, Beth, I think, I suppose, about getting the basics right, first and foremost.

Paula: And you told me when we were preparing, I guess, for today, about just some of the basics about, for example, like the servicing facilities that Ford offers that no other motor company does.

Paula: So, you know, we’ll come on, of course, to talk about your Structured Loyalty program, but just in terms of, you know, taking that customer feedback, which I hear you mention every time we have a conversation.

Paula: So I can feel it’s in your heart, your soul, your work, and it’s your ethos.

Paula: But tell us some of those practical things that Ford does in terms of helping people enjoy owning a Ford in a simpler way.

Beth: Absolutely.

Beth: I’m proud to, because again, I think sometimes we’re so focused on, loving on, and providing great experience for our customers.

Beth: We don’t always talk about them as much as we should.

Beth: So for example, within our customer experience area, in partnering with our 3200 dealers throughout the US, most of what I’m talking about is US centric, and I’m happy to talk about some of our global plans.

Beth: But our 3200 dealers in the US, we really focus together on delivering things like mobile service.

Beth: You can’t get to the dealership, no problem.

Beth: We’ll come to you.

Beth: We’ll drive a mobile van or a mobile transit escape and we’ll bring that right to your door and service your vehicle.

Beth: Saves people so much time and effort and free service that we offer.

Beth: In addition, pick up and delivery.

Beth: Pick up your vehicle, bring it in to the dealership.

Beth: Anything that we can do to just remove the day to day friction of life, help take some of the burden.

Beth: We want to be a part of the total vehicle ownership and making sure that anything we can do to make that an easier experience, a fabulous experience.

Beth: Our rewards program is just one of most many things that is a part of our customer experience, the whole ecosystem that we offer our members.

Paula: Yeah.

Paula: You know, it’s actually quite breathtaking to me that you are the only company doing that because it’s so obvious, you know?

Paula: How on earth are any of us supposed to get our car serviced if we’re leaving our car there?

Paula: Then we got to get taxis and it’s just a whole palava.

Paula: So thank you for doing those simple things.

Paula: I know, as you said, you’re US focused.

Paula: I’m not sure globally where all of that’s at, but clearly once it starts, then of course it’s going to roll out around the world.

Paula: So take us then through the history of the Structured Loyalty Program, Beth.

Paula: I think the important thing that you shared with me, of course, previously is, you know, first of all, that dealer relationship.

Paula: You’ve already mentioned 3,200 dealers across North America.

Paula: They’re obviously intrinsic to your success and essential that you can build those relationships.

Paula: And then there’s obviously the people who buy the cars themselves.

Paula: So how do you go about building loyalty?

Paula: Do you have one program for both audiences or two different programs?

Paula: How do you manage loyalty in a structured way?

Beth: Yeah, fabulous question.

Beth: And, you know, you highlighted some of the blessings and the challenges.

Beth: We are so fortunate to have our dealer partners that we can, they’re the face of our company.

Beth: In many instances, the local Ford dealership and the area that is serving our customers so well, that is the face of Ford Motor Company to them, not the folks here in Dearborn and in the tall office buildings, right?

Beth: And so we’re so thankful to have them, but then also preparing them and sharing as we roll out corporate changes.

Beth: It’s of course a lot, you know, a lot of times in these podcasts, we talk about the challenges, and it can be a challenge to get all of that information rolled out and shared throughout our entire ecosystem, including those 3,200 dealer partners, as well as communicating it through multiple channels of marketing.

Beth: But the program itself, you know, we’re always thinking about how can we benefit, of course, our customers, they’re what keep us in business for all these years, and they’re the heart of us.

Beth: But how are we also benefiting our dealers?

Beth: They have businesses to run, families to feed, you know, what’s going to benefit them?

Beth: And while our members are enhancing their ownership experience through our program, how are we doing that by pulling them back into the dealers who take care of them?

Beth: But then of course, how are we benefiting Ford?

Beth: Because, let’s be honest, it’s a business as well, and how can we benefit?

Beth: But really, we found that if we do right by them, it all works out, right?

Beth: If we are giving them the appreciation and the recognition and helping them feel what we’re offering to them, the financial stuff will work itself out as we run a business.

Beth: We really, too, I think you had alluded to it, we really stepped back this year, too.

Beth: As you mentioned, we opened our doors for this program just a few years ago.

Beth: But as all good programs do, we continually learn and pivot.

Paula: Yeah.

Beth: And what was built was great.

Beth: There were so many great things about it.

Beth: But we just stepped back and we, of course, by direction from our customers and our dealer partners, they said, we have some changes to make.

Beth: It’s a little too complicated.

Beth: It’s a little too confusing to communicate and even understand fully.

Beth: And that sometimes things like that friction will inhibit participation.

Beth: And we want the most amount of people we can possibly get to feel, to pull in these rewards that we’re giving them and to feel that appreciation we want them to enjoy.

Beth: And so we just simplified the program.

Beth: It was just announced to our members.

Beth: Could not be more excited.

Beth: And it’s so easy.

Beth: I think a kindergartner can explain it now.

Beth: And that’s good, right?

Beth: So it’s so simple.

Beth: We still are a currency-based program.

Beth: And so we have points that you earn through different activities that you do with Ford.

Beth: And then we also still have tiers.

Beth: And we love tiers because in this business, it’s so important to know our customers.

Beth: And tiers help us know, we very clearly understand it.

Beth: Things that are important to someone, perhaps early in their Ford journey, or even maybe out shopping for a Ford.

Beth: The persona and the things that are valuable are very different rather than someone who is maybe has their 15th F-150 and this one has 300,000 miles on it and they’re so proud and they only service through Ford.

Beth: They’re looking for different things from us.

Beth: And so we want to make sure that we’re offering those different things.

Beth: So we do have a tiered program.

Beth: It’s free for everyone to join as well.

Beth: Everyone can join our program.

Beth: It’s completely free.

Beth: You can sign up through our Ford Pastry Rewards app on your phone.

Beth: And we know that 80% of our members prefer to often use that experience or online through our web pages.

Beth: So it’s completely free to join.

Beth: And there’s many benefits that you get as a base member, which we call bronze.

Beth: And then once you complete two activities, and there’s a long list to choose from.

Beth: You can buy a vehicle.

Beth: You could buy windshield wipers.

Beth: You could get a warranty plan.

Beth: But just two activities, you bump up to silver.

Beth: And if you complete five activities…