Is a $5 Billion fine enough to make Facebook change its ways? Apparently millennials are ruining retail, lots and lots of loyalty program news, Yes - Google Assistant is listening to everything that goes on in your house, and a tip of the hat to this week’s “Loyalty for Good” champion. Here is what we’re following in loyalty news …
“… cashbacks make the most of consumer psychology. "Many of us started using Paytm only because it incentivised us with cashbacks initially for almost every transaction. Now we are used to using it even without cashbacks. This is behavioural economics at play."
“Simply put, customers buy when they feel like a brand understands how to make their lives better by speaking directly to their needs, which is all about relevancy and connection.”
“The study identified four mindsets or approaches to shopping: the bargain hunter, who views shopping as a game they intend to win; the explorer, who sees shopping as precious time out; the ninja, who treats shopping as a race; and the brand devotees, who buy trusted brands rather than being swayed by price.”
“… the report revealed that consumers expect to interact with loyalty programs in the same way they would interact with the brand. Because of that, it’s important for retailers to require teams across their entire organization to work together toward the desired loyalty outcome. While the loyalty tactic or program itself may sit with one team, driving real and lasting loyalty must be everyone’s job to truly connect with consumers.”
LOYALTY PROGRAM NEWS
“Duchess's previous loyalty program was a traditional points system that awarded customers points based on purchases, which could then be redeemed for fuel discounts. Due to the margin on fuel often being much lower than on in-store products, the program had an expensive structure, and in May 2018 Duchess worked with Paytronix to relaunch its loyalty program with a focus more on capturing customers' behavior to increase incremental visit lift and check spend, according to the companies.”
“Noor Bank Infinity Treats app offers unlimited buy one, get one free deals on dining, entertainment at over 1,000 locations across the UAE.”
“While Aritzia currently offers rewards for its loyal customers, including special events and gifts, a new loyalty program will be used as a digital selling tool for the company.”
“The department store retailer announced the launch on Monday, describing the program in a statement as “the future of retail loyalty”. The new David Jones Rewards program operates more like a traditional loyalty program, where members receive benefits for signing up to the program and shopping at the department store.”
“Practice,” the company’s loyalty program, is in testing in 3 North American cities, with the company trying different benefits and price points. Offerings include physical goods, event access and digital content, with the cost somewhere above $100 for a year.”
“The revamped programme would increase the number of beneficiaries from the current 4,000 to 600,000 and give them unique services, including exclusive voice and data plans as well as value proposition services from its partners.”
“Velocity is Australia's second-largest airline loyalty program, with an estimated 9.5 million members compared to the near 13-million members of Qantas Frequent Flyer. The program raked in $63.8 million in pre-tax earnings in the six months to December 31, off a revenue of $208.9 million, and is on track to double its earnings to $120 million when Virgin declares its 2019 financial year results towards the end of August – although the airline overall is expected to report a loss.”
“The airline signed a new contract with American Express earlier this year to issue co-branded rewards credit cards — the contract was worth an estimated $7 billion annually by 2023. Loyalty revenues grew just under 20% to $1.2 billion this quarter.”
“… the main reason for retail’s spiral is that “certain companies have failed to make a connection with this demographic’s outlook and preferences, but it means good news for local brands that account for a significant and staggering percentage of store openings.”
“Freckle’s Killi application allows consumers to take back control of their identity data by selecting the personal information they would like to share with brands in exchange for money.”
"A large fine is necessary and appropriate, but it's not the only remedy" that's needed, says Emory Roane, policy counsel for the Privacy Rights Clearinghouse, a California-based advocacy group. "There’s no real indication that a fine is enough to make Facebook change their practices."
“The company acknowledged that humans can access those recordings after some of its Dutch language audio snippets were leaked. Google product manager David Monsees acknowledged the leak in a blog post.”
“J.P. Morgan analyst Doug Anmuth said Prime Day could result in more than $5 billion in sales for Amazon, a massive 56% increase from of the $3.2 billion he believes the company booked last year. It's important to note that Amazon doesn't break out the results of Prime Day, and estimates vary widely about the total sales resulting from the event. In the wake of last year's Prime Day Sale, Internet Retailer conducted an analysis and concluded that the event generated sales of between $4.01 billion and $4.38 billion globally -- a difference of more than $1 billion from Anmuth's estimate.”
LOYALTY FOR GOOD
“For people battling addiction, social isolation can be a big problem. But one charity is rewarding users with fun activities every time they use recovery services.”
The Loyalty Newswire is compiled and edited each Monday morning by the staff at The Wise Marketer.