The Omnichannel Weekly – Edition 4
30 Jan 2018 The Omnichannel Weekly – Edition 4
Welcome to the fourth edition of the Omnichannel Weekly.
The 7 biggest trends driving customer loyalty
- 64% of brands reported an increase in their loyalty program memberships last year.
- Omnichannel and multichannel programs are replacing traditional programs. Beauty giant Tarte recently launched the “tarte <3 rewards” which rewards customers not just for spending but also for sharing on social media, friend referrals and reading mails.
- Consumers expect personalization – 79% of customers say that highly personalised loyalty programs make them feel very satisfied. Loyalty programs which recognize their customers and make them feel special have 2.7 times more satisfied members.
- Members of the DSW rewards program were sent a mail which contained how many points they needed to earn a $10 certificate, other deals they were eligible for and a detailed snapshot of their customers’ interactions with the brand over the last two years, how much they have said, how many points they have earned and how long they have been a loyalty member. The campaign saw a 64% lift in mail opens, a 13% lift in click through rates and 58.82% of the customers who opened the mail read it for 15+ seconds.
- Brand partnerships have increases as this extends the reach for both brands and helps them to reach out to potential customers.
- Consumers expect brands to be socially responsible. 81% of millenials expect companies to go beyond becoming drivers of profit and serve as agents of change in their communities. 66% of consumers are willing to pay extra for products from brands committed to delivering positive social and environmental impacts.
- Premium royalty programs are becoming more appealing. 62% of respondents of a customer study would consider joining a fee-based rewards program offered by their favourite retailers. This number goes to 75% for 18-24-year-olds and 77% for 25-34-year-olds. 47% said that rewards in fee based programs are better than rewards in free programs.
- Emotional loyalty is key. A research by Gallup shows that customers with a strong personal connect to a brand will visit their stores 32% more often and spend 46% more money than those without emotional bonds. A Forrester survey showed that emotion is one of the strongest unique drivers of loyalty and most loyalty marketers are still fine-tuning their programs to establish and solidify relationships with customers as well as to build up a strong emotional connection with their most frequent shoppers.
- AI and chatbots are improving customer engagement. By 2020, 85% of customers will manage their relationships with enterprises without interacting with a human.
5 Retail Tech Trends to Watch in 2018
- Personalizations will prove key to digital transformation in retail. 84% of shoppers prefer using email and text messaging over other forms of communication to engage with store associates. Customers may want to stay in touch with store associates after they leave to check in on products and find out about deals.
- AI applications will gain more clout. AI based chatbots can answer frequently asked questions that can be answered at a higher expense by store associates or call center agents. Retailers will put into place IT systems to capture and analyze the data their AI applications generate. AI cannot replace human decision making though.
- Voice assistants will start to crop up in physical stores. Brick and mortar stores will incorporate such assistants in dressing rooms or retail displays on store floors. A voice interaction may allow a customer to get more information about a product and/or its availability.
- The internet of things will streamline checkout options such as one-click checkout. Such solutions can also incorporate IP-connected digital video cameras, facial recognition technology and computer vision. Retailers still plan to spend the next 24 months investing in IoT solutions for inventory management. RFID tags are still going to be used for inventory management and loss prevention for the time being though.
- Security will remain a top retail concern. This includes vulnerability management, encryption, email security, identity access management and multifactor authentication.
Have a good week ahead!
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