Loyalty 101: How Savvy Shoppers Get the Most Out of Loyalty Programs

For years I have collected miles with a few different airlines, but have managed to fly only twice using my miles. Here, in one sentence, you have the problem with airline loyalty programs, but also my loyalty strategy.

Airlines want you to fly with only them and collect miles. But they really don’t want you to use the miles to fly – or so it would seem from the way the programs are structured. It is a “game” and you need to understand how to play in order to win. In fact, modern loyalty programs are morphing based on gamification techniques. More on this later.

Flawed loyalty strategy

Having been treated to a Loyalty101 class by an American colleague, I’ve discovered I’m doing it wrong. First, you need to fly with just one carrier, no matter how inconvenient it may be in terms of routing, to make sure that you are at the highest level in the loyalty program. These high levels are the only place you get real benefits. My loyalty mentor has over 1 million miles on United and gets access to lounges, automatic upgrades, and priority access to seats. And on every upgraded flight, she collects miles at a higher rate – like compound interest. So she will happily take United flights which include a change rather than take a direct flight with an alternative carrier. [Read more...]

In Terms of Mobile Apps – Newness is Relative

It used to be that companies drove traffic solely with a new product launch. While that’s still largely the case for how marketing cycles work, we are in an era of consumer event triggers where each product cycle is increasingly dictated per person. Why? Because new things launch every day and we are constantly inundated by all forms of outbound marketing messaging. There are very few things we need (not want) when they’re new. Sure, new things can be better, but when we have a problem and need a solution, we don’t care when the solution was created; we care that it’s available at our fingertips.

“There’s an App for That”

Nothing speaks to the on-demand nature of solution-seeking like mobile apps. I recently was trying to clean up my music library and after five minutes of de-duping, I thought I’d test out the whole “There’s an app for that” adage and go searching for a solution. Hallelujah! An app that instantaneously answered my prayers — one thousand duplicates gone in a flash! I paid $10 for it (pretty steep by typical app purchases), but well worth it. That app could have been published two years ago for all I care, but it was there when I needed it. It was new and life-changing, and that trigger led me to other apps that I didn’t know I needed or wanted. I became drawn into an ecosystem of products I would not have looked at otherwise. [Read more...]

It Only Takes Seconds to Lose a Customer Without Real-Time Information

Getting the right information on demand is an eternal problem of today’s knowledge workers, and will only grow. Lack of knowledge causes a delay in decision-making, and ultimately leads to bad decisions. This is the essence of the Two-Second Advantage, where a little knowledge in the correct context at the correct time is much more useful than all of the pertinent knowledge if it is too late to act upon.

Nowhere is this more true than retail where an immediate and succinct answer to a customer’s question is essential. Not reacting to a customer leads inevitably to dissatisfaction. Answering a customer question incorrectly can also lead to a potential revenue hit when the customer returns a product due to lack of information.

Cleanup in Aisle Two

Here is an example of the environment that exists in many retail stores: a store manager walks up to the shelf in his store and needs more information about the product in front of him. In the old world, he would write a number on the back of hand with his pen and go back to the dirty, smelly office in the back, log on to some application (or likely several), type in that number and get the information that would allow him to make a decision. [Read more...]

Why You Should Be in Control When it Comes to Shopping

When it comes to shopping, today’s consumers are in control, with more choices and more options than ever before. It is no longer enough to offer a good selection of merchandise at an attractive price because customers want “experiences” to go with the products they buy.

The cutthroat competition among retailers to give “everyday low prices” has become an everyday norm. The inventory management revolves around the whole concept of keeping the customers satisfied and in turn, “happy.” The happy customer is the loyal fan and will keep coming back.

Word of “Like”

Technology is impacting our everyday lives from the time we get up to the time we sleep. These technological social tools are not just available to us, as they are available to the retailers as well, from social media to online promotions to business analytics.

Word of mouth is what used to go around a few years back when it came to discuss some brand or a retail store. It used to be a close knit group of friends and family only then. With technology touching every part of our lives now, we trust “likes” and shares on social media sites. Instead of talking one on one with friends about a new product at a particular store, we read the reviews of hundreds of strangers giving their valuable feedback. Companies must now keep up with the technology as 140 characters sent out in a few seconds could ruin their reputation. [Read more...]

Stop Relying on Luck for a Good Shopping Experience

Recently, my daughter was in the market for a dress and her experience with the retail store was so positive, she became a fan. Her particular experience was due to a one-in-a-million, perfect store clerk with a photographic memory. Yet now, technology is capable of consistently reproducing that same lucky experience which causes us as consumers to gush to friends and drive business to stores.

One of my daughter’s goals was to find a unique dress worn by no one else in her sorority chapter. After a day of shopping, she was empty-handed. She did have a favorite in mind, but she didn’t want to commit to the dress without context.

When she got home, she was disappointed she hadn’t bought her favorite dress. Rather than turn around and drive for 45 minutes, she decided to call the store and see if they could hold it. She wasn’t optimistic she could describe the dress well enough, but thought a phone call could save her some aggravation. She was pleasantly surprised the clerk remembered her and remembered the dress. [Read more...]

The 12th Man is Important Not Only in Sports Stadiums, but also in Business

Can you remember when you bought something so good you had a dopamine-fueled ecstatic moment and had to immediately tell friends, family, and co-workers? Then they took your advice, bought the same product, and you all began to gush about just how good it was?

Inevitably, someone objected to the love fest and pointed out it wasn’t actually that good to which you all countered and debated each point they made. Did you realize you had become an unofficial spokesperson and advocate of that brand at that precise moment?

The Collective Power of Groups

This happens all the time and yet, for brands and customers alike, it’s an invisible and often untapped force to be reckoned with. A single customer’s voice can sometimes be lost amid the noise. It’s like throwing a stone in a large body of water. When the voices are joined as a collective, like a crowd in the stands at a sporting event, it suddenly becomes a rippling tidal wave of support that can almost drown out competition and negative feedback.

Loyal Customers Are Like Loyal Sports Fans

Have you seen, or participated in, the now-famous stadium wave that began at the 1986 World Cup in Mexico? That’s exactly the effect a loyal customer has for your product and brand when they cheer and support your business as it gathers momentum. [Read more...]

How Innovation in Retail Will Change Our Lives

It was during this last holiday season when I first noticed it. While watching TV, an advertisement came on touting Walmart would now price match with competitors. Then, I read in a press release that Best Buy would now price match online competitors as well, presumably to avoid “show rooming,” the phenomena of customers coming in to try out products, then purchasing those same products online. In the context of the retail space, these are some of the biggest gorillas telling the rest of the world they acknowledge things have changed and are ready to change with it. Pretty revolutionary stuff.

The Changing Times

Price matching is just one step for the renovation of the modern retailer. The other major step will have to be customer experience.

Online retailers can offer a price. What they can’t offer are the sights, sounds, smells (hopefully pleasant ones) and sensations of an in-store experience. That being said, this hasn’t stopped them from trying.

Zappos, a successful online store, has incentivized their sales reps to spend MORE time on the phone with customers. The theory is that this extra time spent on the phone will help the company — and the customer — know just a little bit more about each other. So far, it’s working for Zappos.  Sales are off the charts. [Read more...]

The Real Way to Increase Conversion Rates

In 2012, on the two biggest shopping days of the year, Black Friday and Cyber Monday, sales grew by 26% and 20% from the previous year. Don’t believe the apocalyptic news hype, retail is not dying, not even close. Retail is evolving to giving the customer exactly what they want, when they want, and how they want it. If customers don’t want to go to your store, they shouldn’t have to. If they want to shop on their phone or tablet, you need to fully support that.

This is exactly what sellers are struggling to do – make all customer touch points equally accessible, with a completely shared experience, so customers can be engaged at the moment of their purchasing decision.

Time is a Luxury, Methods are Not

Sellers have always tried to maximize customer spending through upselling and cross-selling. Methods which were successful in the past need to be replaced with newer techniques for today’s more aware, less patient customers.

Shopping on the internet is the best example. The probability of customers checking out the offers they receive via email is lower than when they see those offers in real time on the screen when they are shopping online. [Read more...]

56 Billion Reasons Why You Need the Two-Second Advantage

zara-first-post2The story goes that a motor bike roars up to a red traffic light in La Coruna in Northern Spain. It stops alongside a black town car. From inside, the passenger glances out and sees the young biker leaning over the handlebars. His jean jacket has appliqued patches… a throwback to the 1970s. The old man grabs his phone and calls an aide in the office. Without taking his eyes off the jacket, he describes the jacket’s stitching, its shape and color. He finished the call with a single instruction – ¡Hacedlo!“ – Make it.

40 years ago, Amancio Ortega founded Zara on two key principles: give the customers what they want and give it to them faster than anyone else. As the story illustrates even today, those two key principles are at the heart of Zara, the world’s biggest fashion retailer.

Zara stores refresh their stock twice a week and receive orders in 48 hours or less. That has required some key organizational and supply chain decisions. “We never go to fashion shows,” says Loreta Garcia, a 23-year Zara veteran who heads up Zara Woman’s trends department. “We track bloggers and listen to customers, but we change our opinions all the time,” she says. “What seems great today, in two weeks is the worst idea ever.” [Read more...]

Log On With IT Compliance and Truly Manage Big Data

Log ManagementWe know business is data-driven, but are we missing the forest for the trees? Sitting inside our own systems is data that describes our daily operations and offers an opportunity to take intelligent, data-driven actions. When it comes to operational data, like log files, many businesses struggle to know how to take use this information wisely.

Billions of daily logs, log files, from a wide variety of sources are now part and parcel of big data. If you can manipulate data in real time, you can expand your understanding beyond log management into customer-centric areas. If you can determine a large single-purchase is fraud or not in the moment, you mitigate risk while maintaining customer loyalty. Log data is both deep and wide.

Take RadioShack Corporation, an American franchise of electronics retail stores with a vast retail network that includes 4,700 company-operated stores across the United States and Mexico, 1,500 wireless phone centers, and 1,100 dealer and other outlets. In the fast-paced world of wireless devices and consumer electronics, RadioShack has a mobility strategy rooted in customer advocacy and choice. [Read more...]