Hallmark uses its loyalty program, the Hallmark Gold Crown Card, to shape its marketing campaigns. The loyalty program, with over 14 million cardholders, rewards frequent shoppers with a points-based system that lets customers earn discounts on their purchases. Shoppers use their cards at 4,200 Hallmark Gold Crown stores.

Cardholder purchase histories are collected in a Teradata Warehouse and mined using SAS and MicroStrategy solutions. With these tools, Hallmark segments its cardholder base and targets its one-to-one marketing accordingly.

Cardholder segmenting is based on product preferences and shopping patterns. Direct mail is used for most one-to-one marketing communications. Each direct mail piece is designed with one of three specific goals:

• Draw the customer into the store
• Position the brand
• Thank the cardholder for being a valued customer

The piece that the customer receives is based on purchase history.

Customer responsiveness is also employed. This information lets Hallmark know how certain customers react to specific offers, and what kind of offer is necessary to get the customer's attention.

One of Hallmark's most successful mailings is the "calendar flip." As the customer flips the page of the promotional calendar and assesses greeting card needs for the coming month, she receives relevant offers for upcoming holidays. Hallmark research indicates that customers assess their card needs at the beginning of each month.

Finally, as with any loyalty program, the retailer must honor customer trust. Hallmark warns that customers have a sense of privacy and certain expectations about the handling of their customer data. Treat the customer's data as something worthy of protection.