Tech to Help Loyalty

I had a number of discussions this last year, sometimes pushing a boulder up hill, trying to help business side digital interests understand what technology could and could not do for them.

The real key to these discussions is value.

If something can move the needle on revenue it will get attention, and some dollars behind it to enable action.

Here is a snippet from a piece that might interest you:

Research published in the Nielsen Global Consumer Loyalty Survey has found that 33% of European consumers (36% in the US) say they love to try new brands, while a further 56% – although more loyal – also admit that they can ‘be moved to experiment.’

This trend for brand-hopping among consumers is a relatively modern phenomenon. 40% say they are more likely to try something new than they were five years ago. Brand loyalists are a shrinking minority and companies are having to double down on enticing exploratory consumers and – crucially – retaining them.

Here is the full article:

https://www.clickz.com/martech-stack-customer-loyalty/252627/

Happy Reading,

J.W. Gant

Mobile Payments Update

I've been following mobile payments since I worked in the field a few years ago.  It is interesting in a few ways but mostly because I view it as a leading indicator of overall digital transformation.

Paper money will never die but we are increasingly likely to have our phones with us while having no paper money.

The reason retailers want it is for the digital relationship it enables with their customers.  After all, money isn't broken so what is the real driver of adoption?  Buy 10 coffees at Starbucks and get the 11th for free, that's what is driving adoption.

Here is an update on the state of mobile payment adoption:

https://www.clickz.com/mobile-payments-2019-beyond/222602/

Happy Reading,

J.W. Gant

Starbucks Mobile Payments at 30%

Holy moly!

I was surprised by this one, but then, not.

They do this all so well.  Fully integrated top to bottom and left to right their digital relationships with their customers are second to none.  Full stop.

Here is a snippet from the story:

http://bankinnovation.net/2017/07/nearly-one-third-of-all-starbucks-payments-are-mobile/

Here is the full story:

What makes the Starbucks mobile wallet such a popular option when it comes to paying for that morning coffee?

Mobile payment at the coffee company’s U.S. stores increased to 30% of all stores, according to the earnings Starbucks reported yesterday, meaning just under a third of customers are now paying via mobile.

Meanwhile, Starbucks Mobile Order & Pay transactions increased as well to 9% of all transactions in U.S stores.

Happy Reading,

J.W. Gant

Why Are Some Restaurant Chains Struggling?

It isn't technology.

Some of the smartest folks I've met in retail are involved with loyalty programs for one or more chains.  Using technology at the table to enhance the relationship between the retailer and the customer.

These chains are struggling because their menus are too loaded in fat, salt, and calories according to one analysis.  Worth the read.  Here is one revelatory quote:

While fast food has received plenty of flack from nutrition-savvy critics, the biggest culprits when it comes to calories, salt, and fat are often sit-down, casual dining joints.

A Big Mac contains 540 calories. Buffalo Wild Wings' Cheese Curd Bacon Burger contains 1,620 — before you add fries or sides.

Read that again.  The burger alone is 1,620 calories.  You only need about 2,000 calories in a day.  What in the world are they doing over there?

Here is the full article:

http://www.businessinsider.com/health-concerns-show-why-casual-dining-is-failing-2017-7

Happy Reading,

J.W. Gant

CPG Strategy in the Digital Age - Plus Amazon?

I wrote about Digital Strategy for retailers a while back and in that white paper I pointed out the opportunity for the manufacturer brands, CPGs and others, to create direct to customer models.

Amazon wants to help out with that.

I'm guessing their play is to be more like a payment rail model of retail taking a very small sliver of every transaction.  The play eliminates the need for big retailers like WalMart.

Interesting, and they are serious about it.

Hear more from Bloomberg by watching the brief video:

https://www.bloomberg.com/news/videos/2017-03-30/why-amazon-wants-brands-to-bypass-wal-mart-video

Basically Amazon is extending an invitation to CPG companies to listen and begin to work towards a new model that eliminates traditional retailers.

That should have quite a few folks shaking in their boots.

Happy Viewing,

J.W. Gant

Loyalty and Marketing

Great little post with 15 "facts" about loyalty.

Cool stuff.

http://www.cmo.com/features/articles/2017/3/3/loyalty-mind-blowing-stats-tlp.html#gs.iXMhRkc

Here is one of them:

8. Nearly 80% of companies spend less than 30% of their time and budget on customer retention-focused messaging and content.

Happy Reading,

J.W. Gant

Mobile POS Integration at Gap

Following the "intrapreneurship" post we have a little story of Gap, Inc. trying this approach.

http://www.mobilecommercedaily.com/gap-sees-growth-from-mobile-point-of-sale-integration

Here is a snippet from the piece:

With the introduction of a mobile point-of-sale system in 20 percent of its stores, Gap believes that this expansion will bring higher mobile engagement and sales.

In its Q4 earnings report, Gap reported an increase in mobile integration among its stores and recommitted itself to investing fully in its mobile offerings.

Happy Reading,

J.W. Gant

Data on Amazon Prime

Boy the folks over at Amazon sure do like to hold their cards close to their chest at times don't they?  Take this data for what it is worth.  I'm sure this was released to make Amazon look as good as possible with their Prime system.  However, any view is better than none at all.

Take a look:

http://risnews.edgl.com/retail-news/Amazon-Breaks-Its-Silence-On-Prime-Numbers108919

Happy Reading,

J.W. Gant

Walmart as Customer Experience Experts?

This little article really caught my eye.

If all you do is compete on price that leaves you open for competitors to narrow or eliminate the gap.  All of these retailers are selling most of the same products right?  Corn Flakes.  Shorts and shirts.  Etc.

How can a retailer differentiate in today's world?  Digital.

Read on:

http://www.mediapost.com/publications/article/279914/walmart-vaults-into-customer-experience-derby.html?edition=94545

Here is a snippet from the piece:

Walmart says Walmart Pay, which it began rolling out in back in December, is now available in all 4,600 of its stores. And experts say the mobile app puts the retailer one step closer to level footing with Amazon.

“What wins the Amazon shopper over is the customer experience,” says Gene Alvarez, managing VP at Gartner. “Walmart has always competed on price. But if the prices are equal, which consumers can now quickly figure out, it becomes about customer experience. Who is it easier to do business with?”

Happy Reading,

J.W. Gant

Mobile Loyalty Providers Growing

Third party loyalty programs using mobile as their primary platform are seeing significant growth.

Not unexpected.  I'd especially view Tier 2 and 3 retailers as targets for such efforts.

Read more here:

http://www.mobilecommercedaily.com/mobile-paves-the-way-for-multi-retailer-loyalty-adoption-in-us

Here is a snippet from the piece:

Coalition loyalty programs are gaining speed in the United States with multi-retailer programs such as Plenti, Spring and ShopYourWay substantially growing now that mobile technology has broken down geographical barriers.

Mobile is allowing U.S. loyalty programs that span a wide range of brands and retailers, rather than being specific to a certain store, to thrive after the strategy saw years of wide spread adoption in other countries. While consumers are just starting to get on board, an innovative mobile strategy can spur exponential growth for coalition programs.

Happy Reading,

J.W. Gant

Chili's CMO: Be Our Digital Guest

Great little article over on CMO.com that focuses on an interview with SVP and CMO for Chili's Restaurants, part of Darden, Inc.

Read on:

http://www.cmo.com/articles/2016/2/19/cmo-interview-chilis-cmo-krista-gibson.html

Here is a snippet from the piece:

America is currently undergoing a “food movement,” where consumers are much more conscious of what they eat and where it comes from. This naturally impacts the casual dining space and is an absolute consideration for Chili’s Grill & Bar, not only from a menu perspective, but also in how it markets to consumers.

Indeed, Chili’s SVP and CMO Krista Gibson said monitoring and meeting consumer expectations at a time when the definition of health and wellness is changing is one of her top priorities. In this exclusive interview with CMO.com, Gibson also spoke about her goals and plans for Chili’s digital guest experience, the company’s new loyalty program (with numbers to prove its success), and where the company is in its digital transformation journey.

Loyalty programs in pay at table restaurants.  A dream for some folks, a nightmare for others.

Happy Reading,

J.W. Gant

Blaze Pizza and Mobile Payments

I'm a fan of Blaze Pizza, even though I've never set foot in one of their establishments.  The "fast-casual" style for pizza is a compelling business case.  Some friends in Tallahassee, FL have had a chance to try it and give it a thumbs up.

They are moving in to mobile in a big way.  Following the now standard approach blazed by Starbucks they are combining mobile payments with their retail app.

Read on:

http://www.mobilecommercedaily.com/blaze-fires-up-new-app-mixes-payments-and-loyalty

Here is a snippet from the piece:

Build-your-own pizza chain Blaze Fast-Fire’d Pizza is following big-name restaurants with a new mobile application that pairs loyalty with payments, reflecting the growing ubiquity of mobile food strategies.

The pizza chain is hoping to become a big player in mobile commerce and drive sales through its new app that allows customers to order, earn rewards and pay directly within its platform. With other big food retailers such as Starbucks, Dunkin’ Donuts and White Castle adopting mobile ordering, Blaze is hoping to stay update with trending technologies.

Happy Reading,

J.W. Gant

Coupons App With Beacons in Malls

Do you love or hate coupons (there really is no in-between)??

Well now they are much simpler, though you may have to opt-in to notifications as you walk around a mall.  Read on:

http://www.mobilecommercedaily.com/the-coupons-app-brings-beacon-triggered-offers-to-mall-shoppers

Here is a snippet from the piece:

Offer-driven mobile application The Coupons App revealed today that it is leveraging beacon technology to enhance the user experience by delivering location-based alerts inside malls from retailers, brands and restaurants.

The Coupons App, which provides more than 10 million users with deals and coupons from more than 100,000 retailers, has partnered with Mobiquity Networks to deliver offers in more than 475 malls equipped with beacons managed by the marketing firm. As a result, users will receive alerts when they are nearby stores and restaurants where promotions can be redeemed.

Happy Reading,

J.W. Gant

Starbucks Rewards and Chase Pay

The biggest news is the change to the rewards program.

The move is one away from transaction based and towards dollar based rewards.  So that $2 coffee won't carry the same weight as someone else's $5 beverage.  It will be interesting to see where this leads them to.

Read on:

http://www.mobilecommercedaily.com/starbucks-overhauls-mobile-rewards-program-integrates-with-chase-pay

Here is a snippet from the piece:

Starbucks has made big changes to its mobile rewards program, adding Chase Pay to checkout and shifting how customers earn points in a bid to maintain its leadership role as competition grows.

The coffeehouse chain announced that starting in April, loyalty customers can earn stars and free redemptions based on how much they spend rather than the number of visits. Starbucks is also extending its partnerships by adding Chase Pay to the list of payment options.

Happy Reading,

J.W. Gant

BRotD - Entry 0241 Restaurant Loyalty as Extension

Best Reading of the Day

I've spent a bit of time talking with the digital team at Brinker's, heading the Chili's work on tablets, et. al. Quality group of folks doing really interesting work around customer engagement.

This interview with VP Wade Allen caught my eye and is a great read. I've found Wade to be a smart competitor with interesting new ideas in this space and his views should be made a note of.

http://adexchanger.com/advertiser/chilis-loyalty-new-audience-extension/

Here is a snippet from the piece:

What do loyalty programs and paid media have in common?

Not a lot, at face value. Loyalty marketing has long been relegated to card-based, point-of-sale programs and customer retention. It was always the stuff of database marketers and direct mail – not user acquisition.

But that’s starting to change. Coalition loyalty programs or “co-ops,” such as American Express’ Plenti program, aim to bridge the gap between traditional and digital, as well as upper and lower funnel marketing.

Happy Reading,

J.W. Gant

The Vision Required to Embrace Mobile & Digital

Great little read by a research analyst.  Let me quote the title of this article first thing:

Rejecting Retail Apps Lacks Vision
Here is the entire story:

https://www.abiresearch.com/blogs/rejecting-retail-apps-lacks-vision/

Here is a longer snippet of the piece:

...there is now a gaping hole in the retail app market, which will be filled by third parties if retailers do not react. Once again, Macy’s is taking the lead here. It uses Shopkick, in-store Wi-Fi and its own beacon-enabled app, as well as partnering with companies like Mobiquity to give it coverage across malls. This means that a customer can engage with it on a smartphone any way they like.

Happy Reading,

J.W. Gant

BRotD - Entry 0240 Mobile Loyalty as Currency

Best Reading of the Day

Great little article over on Mobile Commerce Daily regarding the future of mobile payments.  Is it all about loyalty?  Maybe.

http://www.mobilecommercedaily.com/why-loyalty-points-may-become-mobile-wallets-primary-currency

Here is a snippet from the piece:

The staying power of consumers’ wariness regarding security and digital wallets has prompted a slew of brands to enable customers to make mobile purchases using loyalty points, a trend likely to catch fire in 2016.

As the perception of mobile security continues to be a hotly-contested topic by consumers and experts alike, brands are seeking out ways to fuel digital wallet adoption and in-application purchases. One way of surmounting consumer dissent about mobile wallets is to ensure that loyalty plays a starring role in completing transactions.

Happy Reading,

J.W. Gant

Walgreens Goes Loyal to Apple Pay

Walgreens is the first retailer to pull together mobile payments and their store loyalty within Apple Pay.

This is big news as mobile payments by itself is unlikely to move the needle.  Something more is needed and loyalty is a great "something".

This is exactly what retailers are doing through their own CurrentC branded mobile wallet.

Read more on Walgreens here:

http://www.mobilecommercedaily.com/walgreens-creates-efficient-in-store-experience-with-apple-pay-rewards-integration

Here is a snippet from the piece:

Walgreens is streamlining the in-store checkout process as the first retailer to intertwine Apple Pay with its loyalty program, enabling customers to scan only once to pay and receive rewards.

Data has shown that interest in mobile payments is low, but mobile wallet services which provide rewards programs is much more desired amongst consumers. Walgreens is looking to drive sales with the Apple Pay-loyalty integration following a series of successful mobile wallet incorporations for other retailers.

Happy Reading,

J.W. Gant

Fun Mobile Loyalty Programs

The folks over at Mobile Marketer have an excellent piece on the loyalty of Millennials. Not surprisingly it has been found that a fun mobile loyalty program will attract this tech-savvy generation.

Shocker.  However, it is always good to formalize our understanding of the things we come to take for granted. Big retailers, such as Target, are taking notice.

http://www.mobilemarketer.com/cms/news/research/21526.html

Here is a snippet from the piece:

With recent research showing that fun experiences are key to loyalty for millennials, savvy marketers such as Sephora, Pepsi and Target are leveraging mobile to bring elements of gaming, social media and relevant content for more enjoyable programs.

The millennial demographic needs to be reached with a variety of different tactics compared to other consumers, as their values vastly differ from others, according to a new survey from Colloquy. Marketers need to focus on creating meaningful experiences rather than economic gains when it comes to reaching millennials through loyalty and mobile, as these consumers hold this type of marketing in much higher regard.

Happy Reading,

J.W. Gant

Big Food Not Seeing Success in the Digital Era

I've written extensively about the prospects for both retailers and manufacturer brands in the Age of the Participant. It appears the largest manufacturer brands aren't seeing realization to their potential, yet.  Or perhaps the big retailers have successfully countered?

Read on:

http://www.retailleader.com/top-story-trends-top_cpg_brands_languish_in_sales-4691.html

Here is a snippet from the piece:

The top 100 CPG brands aren’t performing well on retail shelves, according to the latest report from Catalina Marketing.

In the 12 months ending June 30, 62 of the top 100 national brands of food and other consumable goods declined in sales dollar volume, by an average of 4.4 percent. Collectively, the 100 saw a drop in sales of 0.8 percent.

For the 38 brands that went up in sales, the average gain was 5.5 percent. However, 90 of the top 100 brands lost market share within their category overall.

Happy Reading,

J.W. Gant