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Loyalty NewsWire

Loyalty Newswire – June 10, 2019

Photo by Debby Hudson

In today’s Loyalty Newswire: Loyalty technology gets some well-deserved spotlight, customer data gets some unwanted spotlight, a couple of brand loyalty programs get nods for creativity and execution, and a few words of good advice.  Here is what we’re following …

LOYALTY TECHNOLOGY

Retail is reaping the rewards of predictive analysis

Quotable: “bricks-and-mortar retailers can use the data from their existing surveillance cameras to improve store design, merchandising and inventory management. Camera data feeds into an algorithm which can, for example, analyze how customers move around the space to help retailers optimize the layout of their store, ensuring the best chance of making sales.”

Our Current Technology Success Metrics are Broken

Quotable: “Companies have pursued metrics to the point in which they seek to “design for addiction, always devising new ways to keep people coming back for more.” In the process, the actual business value of KPIs gets lost. “More page views per visit to an e-commerce website do not necessarily mean more sales. Likewise, the number of opens per week for a mobile banking app tells us little about customer loyalty and satisfaction – when it comes to their financial life, aren’t people looking for peace of mind instead?””

Also Read: Loyalty Tech: Migrate to Microservices or Get Left Behind

Weighing Device Interoperability Standards

Quotable: “Does my smoke detector in my house need to be able to communicate with a Boeing 777? Companies talk about data “flooding” into their cloud, creating a repository akin to the show “Hoarder,” McCarson said. If the data lacks context and is not cleansed and filtered well — essentially, data without metadata — it is hard to extract significant value. In the IoT realm, organizations can only derive rational interoperability if smart objects are paying attention to the metadata. Bridging the cyber and the physical, metadata acts as the blueprint for the smart object world.”

CUSTOMER ANALYTICS

Loyalty Management Market Worth $10.9 Billion by 2024

Quotable: “Among managed platform segment, the customer analytics segment to dominate the market during the forecast period. Analyzing customer behavior through their spending/shopping behavior has become a high requisite by retailers/business owners to understand customer needs and pitch them offers accordingly. Hence, customer analytics is expected to record the highest growth rate during the forecast period.”

More on Customer Analytics: How Data Analytics is transforming Loyalty Rewards Programs

CX

The Customer Experience Course Correction

Quotable: “One of the common mistakes retail leaders made was treating digital, and ergo customer experience, not as a fundamental challenge to the business operating dynamics across the whole organization, and between organizations, but rather a technology trend that affected the day-to-day operating dynamics of specific channels.”

CONSUMER DATA

Maine bans ISPs from Selling Customer Data Without Consent

Quotable: “Maine’s new law could be the strongest internet-privacy measure implemented by a state when it takes effect July 1, 2020. Similar legislation in other states puts the onus on the individual to opt out, rather than companies opting out all of their customers by default.”

LOYALTY STRATEGY

Brand Loyalty, Seasonal Trends Unveiled in Shopify’s Retail Report

Quotable: “Shopify classified North American shoppers into four groups: trend trackers, engaged explorers, savvy searchers and pragmatic planners. Planners, described as those who need an item and don’t particularly like to shop, lead this list at 31 percent, followed by trackers (impulsive, in-store shoppers) and searchers (digitally knowledgeable buyers who need lots of information), 28 percent each. Just 13 percent fell into the explorer group, defined as people who like to buy new things to make themselves feel good.”

How Dunkin’ and Starbucks apps Set the Stage for Retail’s Future

Quotable: “In three to five years, more than two-thirds of Starbucks’ business will be through order ahead, which will force them to reconfigure the store, increase same-store capacity by at least 40% and move to an autonomous check-out/check-in model,” Crone said. “A Starbucks store will look different, perhaps more like an Apple Store today.”

SoulCycle Has Found a Brilliant Way to Monetize Loyalty

Quotable: “I think Soul Early is such bullshit,” says Ben Dreyfuss, the editorial director for growth and strategy at Mother Jones magazine and a vocal SoulCycle fanatic. “Already this week a bunch of first-row center seats were booked early in my classes. I just took a Karyn class at NoHo where I had to be front-row left side.”

AIRLINES

JetBlue Makes Promotions as Chief Commercial Officer Plans Departure

Quotable: “Don Uselmann, JetBlue director of airport operations at New York’s John F. Kennedy International Airport, has been promoted to VP of loyalty and personalization. In addition, JetBlue plans to hire a senior leader for marketing and loyalty.”

HOSPITALITY

Hyatt’s Two Roads Hospitality Acquisition Drives Larger Loyalty Play

Quotable: “But the hotel group said this week it is biding its time completing the integration of its new $480 million portfolio, citing concerns of unnerving pre-existing guests, Hyatt CEO Mark Hoplamazian said last week during Goldman Sachs Lodging, Gaming, Restaurant and Leisure Conference in New York City.”

PRETTY GOOD ADVICE

Disruption Starts with Unhappy Customers, Not Technology

Quotable: “When large companies decide to focus on changing customer needs and wants, they end up responding more effectively to digital disruption.”

Lessons in Building Loyalty from Retailers

Quotable: “One key takeaway: A good acquisition tactic shouldn’t be mistaken for a good loyalty strategy.”

The Loyalty Newswire is compiled and edited by the staff at The Wise Marketer.

Loyalty Newswire – June 10, 2019
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