They were two small-town boys: Mark Lacek from Mercer, Wisconsin (“Loon Capital of the World,” population 1,700); Peter Brennan from Fargo. They came to the big Twin Cities in their 20s to work for Republic Airlines. Brennan started behind the ticket counter, Lacek in revenue management. Both worked their way into marketing, where they met. Then, after Republic was bought by Northwest Airlines, they collaborated with other marketing staffers and transformed a fledgling frequent-flyer program into WorldPerks, a paragon of loyalty marketing.
What is a loyalty program? Basically, of course, it’s a method for attracting and keeping customers. Get them to ride your airline or visit your store, and then reward them with a treat of some kind—a free flight, an in-store coupon. Thanks to digital technology, loyalty programs also can help a company track customer demographics and preferences in order to tailor products and offers to them.
Loyalty has been the hallmark of the Lacek–Brennan success story throughout their careers. Now both 53, Lacek and Brennan have worked together for almost 30 years. “We wouldn’t be where we are today without each other,” Lacek says.
Together, they’ve founded five loyalty marketing firms, including their current one, Denali Marketing. They’re about to launch their sixth, whose product, they say, could fuel the next great leap forward in loyalty marketing.
Loyal To Each Other, Too
On a snowy morning in January, Lacek and Brennan sit in one of Denali’s meeting rooms on the 20th floor of the 100 South Fifth Street Tower in downtown Minneapolis. It’s a Class A office building, but the company has given it something of the feel of a Warehouse District creative shop. The walls are painted in shades of tangerine; sunlight floods in through huge windows.
Lacek’s jeans are full of holes; Brennan wears a black turtleneck tucked neatly into black pants. Brennan sits straight. Lacek sits back, legs stretched out, running his fingers through his Rod Stewart–style spiky blond hair. “Do you know I just lost my fifth iPhone yesterday?” Lacek says. “That’s the fifth in two years!” They both laugh.
“I think we complement each other real well,” Brennan says. “Mark is super-optimistic and really a creative guy, and I’m probably a little bit more pragmatic—and maybe a hair more organized.”
