By: Brent Harms, Founder and CEO
As we near the end of 2011, I wanted to share some thoughts and observations of the past year in the loyalty and new digital marketing age.
Social and Mobile Have Arrived
Many of the leading consumer businesses are quickly adopting a presence in the social media space. Just check out the website of your favorite retailer or national restaurant and you are likely to see this new presence front and center, especially Facebook and Twitter. At this point, there is very little data to suggest whether this is driving business or not, but my guess is that in 2012 we will begin to get a feel for the effectiveness of the tools. Just this morning on the way to work, I heard a story on the radio that a recent research study suggested Facebook does not change or influence teenager buying patterns as they really follow the lead of their friends, and in most cases, these buying patterns are already common. Outside of consumer marketing, we know that social media is transforming the world politically, literally the catalyst of revolutions in several countries during 2011.
Mobile is also quickly developing as an effective marketing tool. We are seeing a dramatic increase in text as an option for consumer communication, especially in the last half of 2011. The recently released IKEA Family member program where sign up is at a kiosk utilizes texting as one of the communication options. Soon we will see numbers of consumer acceptance. Location based mobile is also emerging as a strong tool in this space. Foursquare has proven to be an effective tool, and many new options are surfacing. There are a variety of other options emerging through your smartphone such as loyalty wallets and mobile payment. With smartphones being the vast majority of all new phone sales, we see endless new opportunities for targeted marketing to consumers through these tools. The carriers will likely be a major player in this space as they control the airways, and privacy will need to be aggressively addressed to prevent excessive regulations.
Retail Trends and the Holiday Season
Online sales continue to explode with the current holiday season running at about 15% higher than last year. At the same time, malls and stores are packed and the "newly defined" Black Friday shopping time is a clear sign that consumers still enjoy the entertainment and social value of shopping at traditional stores. Loyalty programs need to provide value to the consumer in both buying models.
That brings up one of my hot buttons during this busy season. As a member of numerous loyalty programs for my favorite stores, I am amazed at how, in most cases, the concept of getting preferred service and/or value is lost during this busy season. The stores are overwhelmed and most retailers are doing little if anything to provide a better shopping experience such as preferred customer lines for their most loyal customers. No extra value provided either, such as early access to those great "Black Friday" deals. One exception I like is Best Buy’s "private sale" for their loyal customers that occurs on a Sunday night when the store is not open to the public. They offer some special deals and a better environment for shopping for their program members. Retailers need to figure out a way to cater to their loyal customer base during this busy season to ensure that they don’t lose these critical customers during this heavy buying time.
In conclusion, I want to wish each and every one of you a very, very Happy Holiday Season! Spend quality time with friends and family; and just maybe, put the phone, IPAD, and computer away for a few days and focus on those valuable "old fashion" person to person relationships with those you love and cherish. HAPPY HOLIDAY!!