This week’s loyalty newswire is a study in consumer data management best practices (as well as not-so-good practices). In fact, if there were ever a time to consider how you are handling customer data, let this be it. Plus, more evidence that your customer is attention-challenged and maybe not as loyal as brands would like. Here is what we’re following in loyalty news:
CUSTOMER DATA
If Data is the New Currency, How Should You Spend It?
"Too often, brands think that their underlying asset is their physical product, not knowledge of their customers. But today businesses are competing with next-generation companies that don’t have product legacies. Instead, they are built on a foundation of customer data, which enables them to discover, fulfill and create new consumer desires."
Most Consumers Still Don’t Know How Brands are Using Their Data
“… almost half of respondents said they are more comfortable giving personal information to brands with a physical store presence — that’s how much they distrust the Internet. It’s now up to digital brands to re-earn that trust — even if they aren’t responsible for creating the concern in the first place.”
Third-Party Data and Third-Party Cookies are Not the Same
“Forrester recently heralded zero-party data as a major opportunity, especially in lieu of continued regulation over the collection and use of audience data. Most importantly, zero-party data can be incorporated and combined with marketers’ first-party data for an even richer view of the customer.”
DATA PRIVACY
Google to Pay Multimillion-Dollar Fine for 'targeting children’
“The internet giant reached a settlement with the FTC for violating a federal law meant to protect kids under 13 and their online data, according to a Washington Post source.”
Premera will Pay Millions for Data Breach
“It would be one thing if Premera had quickly notified individuals or tried to improve its security measures when it was alerted to the issues,” Clarkson said. “Instead, Premera continued to downplay the harm and tried to convince consumers their information was still safe.”
Equifax Reportedly Near Deal to Pay About $700 Million over Data Breach
“The hack, the largest in US history, exposed sensitive information, including names, Social Security numbers, drivers' license numbers and addresses.”
CONSUMER PSYCHOLOGY
Loyalty Programs are a Great Way to Reward Your Top Customers
“In the consumer marketplace, disappointment speaks louder than [satisfaction],” she said. “Often, brands and retailers have to ask customers who are satisfied to share their contentment while those who are not satisfied share it on their own.”
How Retailers Can Fill the Data Gap on Their Shelves
“The average person’s attention span when standing at a shelf is now just eight seconds, but with 70% of purchase decisions being made at the shelf, these eight seconds are the most important for CPGs and retailers to understand.”
DATA REGULATION
Employees and the Loyalty Program Change Nobody is Talking About
“The practical effect of this amendment is that employers of California residents will now be required to provide notice about data collection practices related to employees much like they do for customers or website visitors. This will require employers with California locations to develop privacy policies for employees which look much like the policies one finds on websites.”
Gov’t to Reintroduce Consumer Data Right Bill [AUS]
“The next stage – due in February 2020 – will give consumers greater access to information that banks hold on them; and the power to require those banks to provide safe and secure access to that information to trusted third parties. “Within the regime, consumers will have control over what data will be shared, with whom and for what purposes.”
LOYALTY STRATEGY
Brand Loyalty is Important, But it's not Everything
“One in three voters in last week’s poll have a favorite brand and put their trust in it when buying a new phone. However, two in three people are not as attached and prioritize the quality of the product over loyalty to the brand.”
Coping with Channel Fragmentation in the Customer Experience Age
“It’s no longer just a case of finding the best channel for your brand – but the one that’s best for the customer, at the moment they want to connect.”
Most Consumers Only Consider 2 to 4 Brands When Making a Purchase
“When it comes to shopping, consumers are fairly open-minded—after all, just 4% say they only consider one brand when making purchases, according to new research from BuzzFeed and media agency network Wavemaker. But a whopping 72% say they only consider two to four, which is why brand loyalty should always be a top consideration for brands.”
REWARD STRATEGY
AmEx Rewards Costs Climb to Record
“AmEx has been focused on rolling out new cards with many of its larger co-brand partners, and renewed its deal with its largest one, Delta Air Lines, in April. That helped push spending on cardholder rewards to a record $2.65 billion in the second quarter …”
CX
Retailers Don’t Know What A Customer Journey Really Is
“Part of the challenge with customer journeys is that triggers are not well-understood. I hear discussion of customer journey triggers that start with “She sees an email that has a sweater she likes” – I have even discussed customer journeys that start that way, myself. But that’s way too late. Waiting until a customer actually opens an email to see what you’ve got is not that far in concept from starting a customer journey with “she walks into a store”. Really? How did she get there? Why did she decide to walk into your store in the first place? How did she end up with your email? Why did she opt in in the first place?”
AI
Disruptive Trends from London Fintech Week 2019
“… one in ten of the banks and other companies now reporting blockchain budgets in excess of $10,000,000. Additionally, it found that the typical top-tier bank now has about 18 full-time employees working on the technology. These figures are substantial and are expected to rise as blockchain technology gains more traction.”
C-STORE
PDI Opens Regional Center of Excellence in Bangkok
“The APAC convenience retail industry expanded by 10 percent in 2018, with the number of convenience stores reaching a total of 73,000, according to a report by Nielsen, a global data analytics company. Thailand’s convenience retail sector represents a 58.3 percent share of its overall trade in 2018 with 29 percent of consumers saying they visit a convenience store between two to three times a week.”
TRAVEL
Can AI Help OTAs Earn Customer Loyalty?
“Phocuswright data shows that the share of mobile travelers—those over 55 who will book on a mobile device—is increasing. While it’s true that Millennials are most active on mobile (23%) the numbers show that the spread among mobile travelers across age groups is becoming fairly even. It is also fairly evenly distributed by gender. Though the likelihood of mobile bookings decreases somewhat as annual wages increase 51% of mobile travel shoppers earn between $50,000 and $124,000 a year. Additionally, 84% of mobile shoppers have at least some college or a higher degree.”
The Loyalty Newswire is compiled and edited each week by the staff at The Wise Marketer.
