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The Loyalty Newswire – October 22, 2018

This week - further proof that the future belongs to AI, cannabis loyalty is on fire (note: I didn't say its smokin’), hotel loyalty that is genuinely pushing the envelope, and two cases where loyalty is the last asset standing. Here’s what we’re following:

HSBC Banks On AI To Boost Engagement With Its Loyalty Program

Questioning whether to invest in AI?  The proof is in this money quote: “In a pilot test, HSBC sent emails to 75,000 cardholders based on suggestions made by the Maritz algorithm. Seventy percent of those who received the email offers and redeemed their points did so in a category recommended by the algorithm.”

Loyalty cards ‘change our brain chemistry’ and make us less rational shoppers

A few weeks ago in this column, we stated that The Wise Marketer was making a commitment to provide more consumer psychology / behavioral psychology because we believe the topic has been severely under-represented in media.  Here, in a somewhat contrarian view, is how that is being played out in Australia.

W Hotels Launching In-House Record Label As Part Of Loyalty Program

In what might be best described as Columbia-Record-Club-meets-Millennial-Hotel-Marketing,  W Hotels is starting a record label to create an entirely new category of member rewards.  A++ for creativity.  It will be interesting to see where this program is in 2 years.

Opinion: The Cost of a Successful Loyalty Program

Don Durbin was CEO for a group that ran 40 convenience stores in the Carolinas.  He gives a beautiful, succinct account of how and why loyalty programs can be game changers.  You gotta love this quote: “Because we were proactive, we didn’t lose loyal customers as the new and very strong competition came into our area. In fact, we kept adding to them. Sales grew substantially in a period where others were flat or down. Our margins have grown by 1.5% and gross margin dollars are off the charts.”

Cannabis Loyalty Programs Drive Bigger Sales According To New Data From SpringBig

Further illustrating the point that customer loyalty marketing can add value to virtually any operation, Green Market Report spoke to several cannabis retailers about their various success rates and loyalty outcomes.

How The 80/20 Rule Applies to Premium Loyalty

Tom Caporaso, CEO of Clarus Commerce, enters the occasionally testy conversation about the value of premium loyalty programs and makes a solid case FOR them.  “When your best customers engage and spend at very high levels, and share your brand message, the value they represent is almost immeasurable.”

Gol looks to buyout loyalty program Smiles

This may be a small announcement in the context of the much bigger picture of Brazilian loyalty, but it’s worth paying attention to nonetheless.  Loyalty in Brazil operates on a scale and sophistication that rivals any other developed country.

TPG, Blackstone bid for Jet Airways' stake in loyalty program

In other loyalty program takeover news … There may be no more powerful case for loyalty than announcements such as this and the one above.  Though the core business may have sprouted leaks (or worse), the loyalty programs remain valuable, investable assets.

Say Goodbye to Amazon's Blockbuster Revenue Growth

It hardly seems fair to publish a list like this if we don’t at least give a passing mention to Amazon Prime.  And, just to be clear, 22% sustained growth is hardly something to sneeze at.

Mike Giambattista is Editor in Chief at The Wise Marketer and is a Certified Loyalty Marketing Professional (CLMP).