If there is a theme to this week's loyalty digest it might best be encapsulated in the word "findings". While there is some hard news, much of what looks interesting to us comes in the form of critical thinking, research and forward outlooks. Here's what we're following:
Consumer Data Protection Act: Forcing Accountability
“It seems that Oregon Sen. Ron Wyden, like millions of Americans, had become frustrated that no one was being held accountable for large data breaches—but, unlike most Americans, he had the power to do something. So he introduced the Consumer Data Protection Act (CDPA).” We’ll pay more attention to this initiative as it develops. We expect to see more of this kind of legislation introduced over time.
Where The Transaction Is: Innovative Retail
“The Internet of Things (IoT) clearly has a retail element attached to it, though it may not immediately seem obvious. A 2018 Forbes Insights/Intel survey shows that there’s plenty of room to grow.” Forbes’ survey of retail tech developments is a quick read and a good survey of the state of that union right now.
Hotel amenities and loyalty rank high with travelers
While the headline is interesting, if not somewhat obvious, it doesn’t tell the entire story. The data sources cited also indicate a significant gap between what travel buyers want versus what actual travelers want.
The average retailer-branded credit card has a ridiculously high APR
Money quote: “the average APR on a retail store credit card is 25.65%, almost 5% more than a traditional credit card (20.82%), according to a report from CreditCards.com that examined agreements for 81 cards from 58 retailers.” This may not come as surprise to those in our industry who track such things but you can bet this is very unwelcome news for those consumers who are being pitched with these card offers.
The Psychology of Shopping: Three new consumer trends shaping retail
“‘Self-care shoppers’, ‘virtuous circlers’ and ‘social capitalists’ are three new emerging shopping trends on retail, according to new research looking into the thought processes that convert browsers into buyers.” While the study was UK-based, it’s likely that there is a high coincidence of behaviors for consumers in Europe, Canada and the United States
New Study Uncovers Key Psychological and Emotional Links Between Cannabis and Happiness
In this weeks’ most compelling headline we discover that yes, cannabis makes people “happy”. Buried deep within the piece is this amazing factoid: “Heavy users (4-7 times per week) derive more happiness than light users (1-3 times per week). Take a moment to digest the marketing implications of that fact and you might find yourself a little happier as well.
STUDY: Brand Loyalty Isn’t Dead, it’s Just Complicated
“A recent study from customer experience (CX) intelligence leader InMoment reveals how today’s retail customers define brand loyalty. 60 percent: Share the love. 23 percent: Play the field. 17 percent: Monogamist.” There are any number of ways to slice the consumer loyalty pie. The key though, is creating actionable insight.
Stop Aiming for Perfection: Why Consumers Want You to Tell Real Brand Stories
“We know that overly positive messaging fails to connect with people once it’s reached a critical saturation point. Researchers have even determined the ideal ratio of positive to negative feelings that makes for the healthiest relationships.” One of the best bits of communication advice for loyalty marketers: “Use superlative language in moderation”. Ahem.
The psychological differences between those who love and those who loathe Black Friday
According to recent research, you might be pre-wired to enjoy the thrill of the Black Friday hunt, if that’s who you are. Or you might be pre-wired to run hard in the opposite direction, preferring instead, to escape the crowds and shop online. This interesting piece from Michael Breazeale, Associate Professor of Marketing, Mississippi State University delineates the differences and, maybe more importantly for those of us in the second category, provides some survival tips if you just can’t escape the ordeal.
Tesla has the highest consumer loyalty of all car brands
“Last year, Consumer Reports found that Tesla has the highest rate of customer satisfaction of all car brands. Now, according to more recent research conducted by Experian, it turns out these high levels of satisfaction are translating into exceptionally high rates of customer loyalty as well.” And this in the absence of any formal loyalty “program”.
Data could be what Ford sells next as it looks for new revenue
“In recent days, Ford CEO Jim Hackett gave a glimpse into what sounds like a potentially massive data mining plan. His remarks were made during a Freakonomics Radio interview.” This, on the heels of Ford’s acquisition of electric scooter company, Spin. The purchase allegedly had more to do with user data than the actual hardware of the company.
Starbucks Management Talks Customer Service, Digital Marketing, and More
Their recent earnings call provided a peek at management’s thinking and vision. There are several fascinating and instructive nuggets here but none more eye-opening than this one: “the coffee giant's growth in active reward members grew at an accelerated pace, rising 15% year over year to 15.3 members (members increased 14% in Q3). This during a quarter when Starbucks usually sees a deceleration in this metric's growth rate because of seasonality.”
The Loyalty Newswire is compiled at the beginning of each week by the editorial team at The Wise Marketer.