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Loyalty Newswire – March 25, 2019

Photo by Joshua Newton

Lots and lots and LOTS of loyalty programs to talk about  – and some of them are showcasing some very innovative approaches. Instagram is making loyalty new (again) and there is no shortage of opinions on the best approach to customer loyalty. Here is what we’re following in loyalty news:

LOYALTY PROGRAM LAUNCHES & RE-LAUNCHES

Paris Baguette debuts mobile app with loyalty program

Quotable: “40% of consumers said that they wanted to hear from a restaurant at least once a month, with 80% interested in receiving discounts and special offers and another 34% looking for personalized messages.”

Giant Eagle expands its loyalty program

Quotable: “More than 90 percent of all transactions at Giant Eagle supermarkets are done with an Advantage Card. And the grocer’s customers redeemed more than $230 million in fuelperks rewards in 2018, Mr. Donovan said.”

Millennium Hotels Relaunches a Simplified Loyalty Program

Quotable: “The real sweet spot in Millennium’s new loyalty program seems to be for those who are able to bite off 10-night blocks. A traveler who spends $500/night on a hotel room, for example, will earn 5000 points with each night booked. If staying 10 nights, however, that traveler would effectively earn 10,000 points with each night booked after the bonus. After only three nights, another average room could be redeemed.”

Bike-Sharing Rewarded in New Lufthansa Mobility App

Quotable: “With Rydes, we are launching a whole new type of loyalty program that does not reward loyalty to a type of transport and thus reacts to the changing mobility behavior of parts of the young, digital-savvy generation,’’

Famous Footwear Launches New Loyalty Program

Quotable: “The first new benefit – free shipping for online orders, every day for all members, with no minimum – was pre-released in mid-February.”

BRANDS

Avis Dominates Its Category For Customer Loyalty For 20th Consecutive Year

Quotable: ““Trust – an engagement factor in every product and service category – has become the indispensable connective tissue between brands and customer loyalty,” said Robert Passikoff, president of Brand Keys. “We congratulate Avis for consistently developing actual, believable brand character and values that resonate with consumers and showcase verified trust.”

Loblaw Is Redefining Retail Operations With AI

Quotable: “Loblaw introduced its PC Optimum rewards program a year ago and already has more than 18 million members.”

CHANNELS

I Gave Up and Let Instagram Shop for Me

Quotable: “Amazon might show me endless options when I search its massive inventory for boots, but Instagram knows I’m single and relatively young and live in Brooklyn and have disposable income and want something cool. Instagram also knows what cool is, according to Hund, because its army of influential power users have spent years teaching both their followers and the app itself.

Why Instagram Checkout may be the forerunner of the one-stop retail experience

Quotable: “Eventually — and probably sooner than marketers are ready for — we will have the ability to take this to the next level through adaptive merchandising, which will allow brands to visually show, through ads, how their products will fit into a particular consumer’s lifestyle. With the rise of artificial intelligence, the technology will soon exist for a smartphone to track its user’s eye movements, dwell time and pupil dilation — all things that indicate interest”

CONSUMER SENTIMENT

Brand Loyalty Declining

Quotable: “73% of the consumers surveyed said they were willing to switch in at least one of the shopping categories considered (ie, luxury goods, shoes, electronics). Shoppers were the most likely to consider a switch in the grocery (80%) and apparel (72%) categories. Over half of the respondents were willing to try a new brand in each category, except for luxury goods in which only 46% of consumers saying they would consider other brands.”

LOYALTY STRATEGY

To Maintain Customer Loyalty, You Have to Listen

Quotable: “Experiences Stick More Than Transactions. More than half of consumers (53 percent) said their “recent, enjoyable” shopping experience was in a brick-and-mortar location. Product quality was ranked the top retail interaction that elevates a mere purchase to an “experience,” with personalized treatment in store from human staff following at 30 percent.”

Points-Based Loyalty Is What Diners Want

Quotable: “The upsides of a strong loyalty program are numerous. Pizza Hut saw a 7 percent same-store sales lift from the first quarter of 2017 to the first quarter of 2018, as it implemented Hut Rewards. TGI Friday’s UK saw a 66 percent increase specifically in loyalty member revenue and a 51 percent increase in new unique guest visits within the first four weeks of launching a new loyalty program in July 2018.”

Challenger Brands Are Winning at Instilling Loyalty

Quotable: “Traditional loyalty programs rely almost exclusively on a transactional relationship with consumers. It is no wonder that 78 percent of Americans abandon loyalty programs they signed up for. Loyalty programs become a cumbersome exercise of analyzing points, scoreboards, tiers and rewards. It’s not working.” Editor’s Note:  There seems to exist a significant knowledge gap in the ad agency world as it relates to the intricacies of customer loyalty.  If I’m right, there is also a significant opportunity to bring loyalty expertise into that space.

WE’RE NOT SURE HOW TO CATEGORIZE THIS ONE …

The 2019 Drunk Shopping Census

  • 79% of alcohol consumers have made at least one drunk purchase
  • $444: Average annual spend per drunk shopper
  • Clothing and shoes are the most common drunk purchase
  • Amazon is the drunk shopping platform of choice

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

Loyalty Newswire – March 25, 2019
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