This week in loyalty news: consumer data & privacy (continue to) make big headlines – and the theft is no small potatoes, the Amazon effect seems to be buoying the UK economy, there are still many Canadians who do NOT consume cannabis, and Marriott’s CEO needs to approve your loyalty membership personally. Here is what we’re following …
Meet the DTC Beauty Brand founded on the Psychology of Consumer Behavior
Psychologists have found, for example, that 60% of purchasing behaviour is driven by loneliness, cites Beauty Pie’s global head of marketing, Sophie Jenkins. “If you feel lonely and you want to be made to feel secure and safe you buy something, whether that’s buying something because somebody else has bought it, because you think you’re missing out, to make you feel better, or to be part of a community,” she explains.
CONSUMER DATA & PRIVACY
7-Eleven Japan recently fell victim to a data breach that compromised approximately 900 customer accounts. The fraudsters were able to use weak security questions to have password change requests sent to their emails — many customers did not change their birthdates from the app’s default setting, granting hackers access to their accounts. The hackers made more than ¥55 million ($500,000 USD) worth of fraudulent purchases before 7-Eleven suspended the app’s mobile payment functionality.
A 2018 Ping Identity study found that more than three-quarters of consumers stop engaging with brands that have been breached, and 49% won't join or use online services that have been breached.
While the database housed nearly six million records in total, the majority of which contained test but not actual customer data, it’s the 700,000 stolen credentials that included some personally identifiable information (PII). Records with fields containing passwords, reservation details, and payment information only contained fake test data, the company said.
Online spending bolstered UK retail sales last month, while department stores notched up their first increase this year, as consumers shrugged off Brexit fears. The quantity of goods bought rose 0.2% in July, buoyed by the annual Amazon Prime Day, according to the Office for National Statistics. The figures wrong-footed City economists who had expected a 0.2% decline.
Current cannabis consumers make up 17% of the Canadian adult population, according to Statistics Canada.
A new Australian start-up has launched to help Australian companies navigate the CX technology explosion. Beyonde, a company by customer strategy specialists Ellipsis, has been formed to help deliver "what’s next" in customer experience. The idea behind this new Ellipsis company is to match the best global solutions to each clients’ unique need and opportunity.
Many, often incorrectly, see loyalty programs as an aspirational reward for best customers. Simply giving them a little more — when they’re already doing a lot with you — doesn’t seem to be all that rewarding. For mid-low customers, this is the right move, but not for high-end ones. Let’s not even think about discounts for the high-end folks. If they’re with you for the right reasons (true loyalty as opposed to inertia/switching costs), then that’s the wrong reward.
Here’s a rundown of the most recent changes to popular (Canadian) loyalty programs, provided to HuffPost Canada by Ratehub. Editor’s Note: Check out the pretty great infographic.
According to U.S. News and World Report, Boomers control 70% of the country’s disposable income, spending $3.2 trillion a year. Another study conducted by Visa predicts that consumers age 60 and older will continue to drive spending for the next five to 10 years.
The News Prestige Network publication’s new Vogue VIP program is exclusive to subscribers and coincides with Vogue’s 60th birthday this year in Australia. A key program element is the opportunity to join Vogue as a VIP guest at national events, gaining access to pre-sales tickets, parties and shopping nights. Members also have the ability to network with the Vogue community, editors, business mentors and fashion industry notables.
Members must be approved personally by Marriott's CEO.
The Loyalty Newswire is compiled and edited by the staff at The Wise Marketer.