What McDonald’s Loyalty Data Reveals About Personalization
Loyalty programs may offer discounts and free food, but the data collected behind the scenes can reveal much more about customers than their favorite order, as Wired reports. A recent examination of personal information collected through McDonald’s digital loyalty program found that years of transactions, app activity, offers and promotional interactions could be combined to create a detailed picture of a customer’s habits. McDonald’s also used customer data to generate predictions about future behavior, such as how frequently someone might return and how much they could spend. The company says information such as past purchases helps it provide more relevant deals, offers and messages, but the example highlights a broader privacy question surrounding digital rewards programs: Consumers may understand that their purchases are being tracked, yet not fully realize how that information can be aggregated and analyzed to anticipate what they might do next, as Wired notes.
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Tim Cook’s Apple Legacy: Turning Technology Into a Personal Connection
As Tim Cook prepares to move from Apple CEO to executive chairman, Jim Cramer is highlighting a defining feature of Cook’s tenure: Apple has built a relationship with consumers that extends beyond the typical hardware purchase, as AOL reports. Under Cook, Apple expanded its global installed base to more than 2.5 billion active devices while strengthening a lucrative ecosystem of hardware and recurring services. That combination of customer loyalty, financial performance and brand attachment has helped Apple command valuations more commonly associated with software companies, while its stock has risen dramatically since Cook became CEO in 2011. With hardware engineering chief John Ternus set to take over, the challenge will be preserving the deep customer connection that has made Apple’s devices and services an integral part of consumers’ daily lives—and a powerful engine for the company’s growth, according to AOL.
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Brand Loyalty Still Wins with Younger, Value-Conscious Shoppers
Consumers may be watching their budgets more carefully, but a recognizable brand name can still carry significant weight—especially among younger shoppers, as Retail Brew reports. Recent YouGov Profiles data shows that just 24% of U.S. consumers consider the brand important when buying clothing, yet those who do tend to be particularly valuable customers: 30% of brand-conscious shoppers spent more than $200 on apparel during the previous three months, twice the share of price-focused consumers who spent that amount. They’re also more likely to put quality ahead of price, with Nike, Adidas, Levi’s and Old Navy among the brands earning the strongest consideration from this group. Gen Z and millennials represent 60% of brand-conscious shoppers, suggesting that younger consumers’ reputation for seeking value doesn’t necessarily translate into choosing the cheapest option. Instead, factors such as quality, identity, and connection to a brand can help justify spending more, according to Retail Brew.
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