Loyalty360 Reads: January 24th, 2019

Those Who Use Ad-Blockers Can’t Stand Video Ads
 
Ad-blockers are popular with consumers. So popular that, if you use an ad-blocker, you’ve likely noticed that many websites that depend on ad revenue have taken steps to combat them. Visual Objects has posted new survey data that shows that ad-blocking consumers find video ads the most frustrating. The survey data also provides insight into the issue of “ad-fatigue,” which annoys consumers and represents a challenge for brands. Those running customer loyalty efforts need to find workarounds, since personalized ads could be blocked as well.
 
China to Surpass U.S. in Total Retail Sales
 
For the first time in history, China is set to surpass the United States as the world’s largest retail market. eMarketer projects that Chinese total retail sales are set to grow 7.5 percent, for a total of $5.6 trillion.
 
“The new Chinese generation are digital natives, at the same time, always looking for unique experiences,” says Mark Lunt, Group Managing Director of IT at consultancy and services company JOS. As e-retail revenues continue to grow, he says, “traditional brick and mortar retailers extend consumers’ choice through providing integrated, consistent customer experience across their digital and physical touch points.”
 
This news is extremely relevant to brands running international loyalty programs, as they will likely begin to see more revenue coming in from China. This means that they should see measurable benefits from improving loyalty with Chinese customers. Strategies to create this loyalty should be considered.
 
Will Paid Loyalty Take Off in 2019?
 
Lululemon, CVS, and Loblaws are testing programs in which customers pay for the privilege of loyalty perks. This is a significant departure from how loyalty programs have functioned historically. These programs seek to appeal to consumers’ desire for exclusivity, and the emotional need to feel unique, recognized. These are not the first ever fee-based loyalty memberships (think Sam’s Club), but they are the first to bring such a model into the digital realm. Premium loyalty programs, on the whole, seem to be proliferating.
 

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