MediaLift

By: Ray Chelstowski / Hilton Barbour It comes as little surprise that fewer US shoppers – a whopping drop of 28.3% versus 2019 - visited retail stores this season for the annual Black Friday bonanza. While it’s likely COVID fears drove some of the decision to stay away, for struggling retailers, the double-whammy of supply chain issues and inventory stock outs meant that the consumer appeal of historically crowded, frenetic malls just wasn’t there. In addition, concerns about the US economy and the volatility of the job market were likely partially responsible for the increase in consumers paying cash or debit for their purchases versus the traditional behavior of buying on credit.  Even online sales on Black Friday contracted from $9bn in 2020 to $8.8bn this year. Though Adobe is forecasting e-commerce sales on Cyber Monday, the biggest online shopping day of the year, to be between $10.2bn and $11.3bn. What is also emerging as a trend is that consumers aren’t concentrating their ...

  By Ray Chelstowski / Hilton Barbour The past year has been a whirlwind for every business and their ability to adapt and adjust in the moment often dictated their ability to ride out the storm. Retail is a category that has possibly been changed forever. Like many sectors the biggest change was an unprecedented acceleration of (all things) digital. The pandemic served as an accelerant for some projects that had languished or hadn’t had the full-throated commitment of the organization. In many cases, fast-tracking solid three-year growth plans in under six months. From direct-to-consumer brands setting up pop-up shops to the rebirth of “store-within-a-store," the industry continues to dramatically transform. In 2022, look for these types of bold marketing tactics to continue—and get even better. Technology has enabled much of this 18-month evolution but to meet the challenges of 2022 smart marketers are beginning to realize that they don’t need more technology. They ne...

  By: Ray Chelstowski / Hilton Barbour The notion of enticing consumers to try your product and rewarding them for their continued patronage is not a new one. Savvy business leaders have been using various tactics and programs for decades to augment their acquisition efforts as well as build meaningful rewards that retain customers. The sad reality is that many of these programs have lost their luster and the level of innovation inside these programs hasn’t kept up with the heightened expectations of today’s consumers. A “sea of sameness” has led to dwindling consumer participation and, despite the enormous passion and effort that loyalty marketers put into these initiatives, few of these programs deliver the type of business impact they once did. Here’s a stark reminder, on average a North American customer is part of 14.8 loyalty programs but only active in 6.7 of them. And even that definition of “active” might not be enough to continue to support and fund these programs out...

  By: Ray Chelstowski Most customer loyalty programs aren’t about loyalty at all. They have more to do with a commercial transaction than with a consumer’s true affinity for a brand. True loyalty is emotional and leads to customers feeling like they’re part of something exclusive. The best membership strategies, which trade on social capital and personalization, are designed for them. People take pleasure in the intimacy of consuming together and interacting with a like-minded community. When the brands themselves are organizing that “club” — and offering access to new product drops and events, more hands-on service or even the smallest of perks — the experience gets even better. At Kognitiv we have seen that first-hand managing the Wheel Watcher’s Club for the daily syndicated game show, Wheel of Fortune . This brings dedicated viewers even deeper into the game experience with exclusive access and opportunities that change daily. Members feel more connected to the show and each...

  By: Ray Chelstowski Hilton Barbour For most people, loyalty programs are all about retailers, hotels, airlines, and restaurants. A sturdy B2C link between a Business and their Consumers. Recently the “loyalty” idea has taken on new life in the B2B world – and it seems clear that the B2B arena is ripe for a loyalty offering. In a recent PwC customer survey, almost 60% of B2B customers reported they had never had an experience with a brand that made them feel special. That single stat should have alarm bells ringing across every B2B marketing organization. Consider that, in B2B just as in B2C, it typically costs 5X to acquire a customer than to retain one, and on average the most loyal customers can account for up to 80% of a company’s revenues. For companies willing to reimagine the traditional transactional nature of their B2B relationships, a loyalty program represents an important growth opportunity. Though it does present a unique set of challenges. The “typical” B2B buyer ...

  By: Ray Chelstowski / Hilton Barbour If your letter to Santa didn’t get posted in October, you might just be getting a lump of coal this Holiday season. That’s because, across the globe, supply chain issues are reportedly so severe that inventory projections for the coming season are incredibly dire. For some inventive organizations and loyalty program marketers, this spells opportunity, not threat.   Best Buy is leaning into this and showing their famously loyal customers that remaining loyal – which includes a $200 annual fee for their premium program - genuinely pays. They’re giving members access to hard-to-find holiday items throughout the season, as well as special pricing. Expect to see more loyalty programs following this loyalty-first trend. A recent survey found that 55% of companies will focus on loyalty-specific marketing events during the holiday shopping season. It can be easy to only see your loyalty program as a well-understood “earn & burn” construct t...