89 Degrees: Follow the 3 Cs Essential to Consumer and Retail Loyalty Today

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89 Degrees compiles and interprets a current snapshot of US consumer and loyalty trends, and how to respond to them with the three Cs for a winning loyalty program.

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Failing to act on the evidence of consumer demands for relevant, compelling loyalty programs that offer real rewards will produce yet another useless loyalty program, and a weakness that competitors will exploit.”

Laura Saati
89 Degrees

89 Degrees, a customer engagement agency that leverages data and analytically driven strategy for maximum ROI, provides a current snapshot of US consumer and loyalty trends and how to respond to them for a winning loyalty program.

“It should come as no surprise to retailers that the Web has put consumers more firmly in the drivers’ seat than ever before,” said Laura Saati, vice president/strategic marketing services at 89 Degrees. “The evolution of loyalty programs in the US reflects that trend clearly, and to ignore that evolution is to risk not just loyalty program membership, but the quality of entire customer relationships. We divided our look at loyalty into three key categories: Convergence -- the merging of technology, devices and messages into a whole; Content – messages become more fluid as they are shaped by both consumer and retailer; and Contradiction – technology and the Web isn’t isolating the customer experience, it’s making it more personal. Here’s a look at statistics that make this a compelling view.”

1.    Convergence

  •     By 2016, half of the dollars spent in US Retail will be influenced by the Web.

Forrester Research

  •     43 Americans converted to smartphones in the minute it took you to read this.

Reach Local

  •     Over 50% of ecommerce store visits occur when consumers are logged into Facebook.

Prestige Marketing

  •     By the end of 2013, there will be more mobile devices on Earth than people.

Cisco, 2013

2.    Content

  •     46% of all adult internet users post original photos of videos online that they themselves have created. - Pew Internet Research
  •     41% of all adult internet users take photos or videos that they have found online and repost them on sites for sharing. - Pew Internet Research
  •     Conversion rates are 105% higher for consumers who interact with ratings and reviews.     -- Prestige Marketing
  •     64% of customers have a strong relationship with a single brand because they share the same values. – Helpscout

3.    Contradiction
“The digital age is actually making relationships more personal, and companies should work to deeply understand individual customer segments: what motivates them, what’s important to them, and what they really want from the relationship with their providers…” - Accenture 2011 Global Consumer Research Study

As the 3 Cs have emerged as key factors, what does this mean for U.S. loyalty programs?
Statistics also show that, for the member, discounts and savings remain a top motivator, but they want them delivered relevantly and personally. But there is a gap between member expectation and the delivery of program value, with almost a third of members seeing little to no added value from their loyalty program membership.

Meanwhile, retailers are working against message fatigue, irrelevance, poor experience -- even geography, as some consumers in certain parts of the country are much more likely to not belong to any type of consumer loyalty program.

Overall, financial services lead US Loyalty program membership by a big margin, followed by airlines, but the next in line, specialty retail, grew 109% between 2006-2010. The entire retail industry has grown by almost 25%. That’s a lot of momentum. Given adoption rates, there is very real opportunity for loyalty impact and differentiation.

“So where do US retailers turn?” continued Saati. “They need to deliver a customer experience that synchronizes with their brand promise. They need to create an emotional imprint built on member needs and wants. And in terms of bricks and mortar operations, they need to drive organic growth of store visitation and spend. Failing to act on the evidence of consumer demands for relevant, compelling loyalty programs that offer real rewards will produce yet another useless loyalty program, and a weakness that competitors will exploit.”

About 89 Degrees
89 Degrees is an agency that specializes in customer engagement strategy and execution. Our results-oriented services combine database expertise, marketing analytics, technology integration, and creative as a means to connect consumers and brands for maximum engagement and ROI. 89 Degrees enables multi-channel success across a number of key verticals for clients including IKEA, Hyundai, World Vision, Genzyme/Sanofi and Uno Chicago Grill.

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StandPoint Public Relations
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