On the heels of National “Get-to-Know-Your-Customer” Week, we nominate this week as “International-Customer-Loyalty-Data-Nuggets” Week (or possibly something shorter). Lots of actionable data points – especially along the lines of loyalty strategy, several big brand loyalty program updates, Google gets closer to wallet ubiquity, and the worst password in history. Here is what we’re following in loyalty news.
DATA & PRIVACY
Having to Share Personal Data Turns Consumers Away from Loyalty
Quotable: “the Harris Poll survey raises the possibility that a preference for privacy could outweigh the desire for personalization following a number of data privacy scandals over the past year, including Facebook's Cambridge Analytica mishap.”
Health Care industry Worst at Protecting Consumer Data
Quotable: “By far, the biggest tactic bad guys use is someone steals your credentials. E-mail represents a starting point of 90% of attacks."
CX
BOPIS Leaders Create Speedy Experiences to Keep Customers Coming Back
Quotable: “Customers using BOPIS also want store staff to be help them as soon as they arrive in-store — that is if no automated pickup is available. The research shows the lowest-scoring retailers had collection desks staffed only 57 percent of the time.”
REWARD STRATEGY
3 Ways to Build the Rewards Program Customers Want
Quotable: “According to a recent report by Bain & Company, customer loyalty has a major impact on a company’s bottom line. The report states that in the financial services industry, for example, firms that retain just 5 percent of their customers increase their profits by 25 percent or more.
LOYALTY STRATEGY
How to Calculate and Improve Your Customer Retention Rate
Quotable: “Written out as a formula, the calculation looks like this: ((E-N)÷S) x 100 = CRR. Of course, we’d all love to see a CRR of 100%, but remember that this may not be realistic. To set a target CRR, research what CRR scores are common in your industry.
5 Personalization Myths to Ignore in 2019
Quotable: “It is actually reported that 67 percent of consumers prefer brands to automatically adjust content based on their current context; with 83 percent of consumers willing to share their personal information in exchange for a more relevant experience. When brands fail to be relevant, a striking 42 percent of shoppers will get annoyed and an alarming 66 percent would stop from making a purchase.”
Shoppers Crave Connection and Conversation with Brands and Retailers
Quotable: “The value of reviews extends beyond online sales: 63% of Bazaarvoice clients rely on ratings and reviews to boost SEO performance, 53% to improve in-store sales, and 52% to foster brand loyalty.”
The Loyalty Barometer Report
Quotable: “Loyalty must be viewed as an ongoing initiative,” she said. “It requires nurturing, optimization, and evolution over time because consumer expectations, as well as brand objectives, are continually evolving and changing. Within that framework, we look to find moments of value and create an emotional connection at each step along the journey.”
Customer Loyalty Becomes Saturated After a Certain Age
Quotable: “Consumers aged 18 to 24-years-old are both the least likely age group to sign up for loyalty programs and also the most engaged members once they join.” “Our analysis shows that when 18- to 24-year-olds do become loyalty members, they are the most likely of all age groups to engage with a brand emotionally. That type of engagement may serve as the truest expression of loyalty and may be the path that brands seek to pursue.” “
The Evolution of Customer Loyalty
Quotable: “According to a new study conducted by Swift Prepaid Solutions, a payment solutions provider, rewards and surprises are a big draw for Millennials and Gen Z customers. 83% said value-added rewards and surprises inspire greater loyalty and 82% said when earned rewards come paired with a special offer it can encourage them to spend the reward.”
Mastercard: Building the ‘What’ of Credit Card Rewards
Quotable: “A reward that a customer struggles to figure out, or has to work hard to actually redeem, isn’t actually that rewarding – and therefore isn’t all that sticky, either.”
GROCERY
How Grocery Retailers Can Reinvent Their Loyalty Programs
Quotable: “What’s admirable about Publix is that it believes that loyalty is about customer service, not just discounts. Sure, people want to save as much money as possible, but that’s becoming table stakes in such a competitive industry.”
LOYALTY PROGRAM UPDATES
Big Changes to Starbucks’ Rewards Program
Quotable: “We’re resetting your Star balance with this change,” Starbucks said in an email to green members on Monday, according to a report by Business Insider. “Because tomorrow, every new Star you earn will add up to Rewards, big and small -- that means more of your favorites free.”
Dunkin' Pilots Multi-Tender Options for Loyalty Program
Quotable: “While more restaurant chains are expanding and revamping their rewards program, Dunkin's multi-tender appears to be necessary to stay competitive. Chipotle recently launched its rewards program and allows customers to earn rewards not just from its mobile app, but also by scanning a code if paying with cash or card. Chipotle's launch, which included a Venmo partnership to randomly disburse amounts of $1 to $500 to customer accounts for a limited time, has been so successful that it enjoyed a 5x surge in loyalty app downloads.”
LOYALTY TECHNOLOGY
Google Pay can Import Airline Miles, Reward Points
Quotable: “Thanks to a small update, Google Pay should now be able to link to Gmail and pull in things like airline miles, retail reward points, and hotel benefits that show up in your inbox from time to time.”
Mastercard Buys POS Financing Provider Vyze
Quotable: “Via Vyze, merchants can connect with multiple lenders, which means those merchants’ customers can access credit options inside stores and online. “These financing options provide shoppers with additional payment flexibility at the exact moment of purchase.”
C-STORE
What Does ‘Convenience’ Really Mean
Quotable: “For most U.S. consumers, stopping by a convenience store has become a habit, with nearly two-thirds of all shoppers (63 percent) visiting at least weekly. This is particularly true for the younger generations, as 66 percent of millennials and 65 percent of Generation X visit c-stores weekly, compared to 56 percent of baby boomers.”
CONSUMER PSYCHOLOGY
The IKEA Effect: how We Value the Fruits of Our Labour Over Instant Gratification
Quotable: “The IKEA effect – “that labour alone can be sufficient to induce greater liking for the fruits of one’s labour” – was named in a 2011 paper in the Journal of Consumer Psychology.”
“The endowment effect, in which simply owning a product increases its perceived value. Though this effect has long been recognised, it was formally named by economist Richard Thaler in a 1980 paper.” “The psychological idea of effort justification. This goes back to studies in the 1950s. The idea is that an individual who makes a sacrifice to achieve a goal rationalises the effort by attributing greater value to the achievement.”
SAY IT ISN’T SO
The UK’s Latest List of Most Hacked Passwords is as Bad as You’d Think
Quotable: “It’s no shock to any seasoned security pro. For years, the six-digit password has been donned the worst password of all, given its wide usage. Trailing behind the worst password is — surprise, surprise — “123456789”
The Loyalty Newswire is compiled and edited by the staff at The Wise Marketer.
