Loyalty NewswireJuly 29, 2024

Here’s a Roundup of this week’s Loyalty and Digital Marketing News

Editor’s Note

Customer loyalty permeates every aspect of the economy. Or is it that the macro influences of the world economy are what we need to track to become better at our trade?

This week, we hear from regulators clearing UK Grocers of subjective practices with loyalty, while putting so much pressure on Meta that it seems the surveillance capitalism model is about to break. Gen Z surprises all of us by ditching influencers and saying “less is more”. Boots takes the concept of “Loyalty to Good” to another level while announcing linkage between Boots Advantage and Healthcare.

The news this week shows that we can never stay at rest or rely on historical practice alone. To stay on top of your game, leverage our Search icon on the top menu bar to take you to the Search All Articles page and create a free Wiser Marketer account so that you can save the results of your searches in your own private sandbox.

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Quick Global News Roundup

Here’s a Roundup of this week’s Customer Loyalty and Digital Marketing News

McDonalds talks about contributions of Customer Loyalty to Results Q2 2024 Earnings Call

McDonald’s Corp. sales declined for the first time since 2020 in the second quarter, falling short of analyst expectations for modest growth. In the Q2 Earnings call on July 29, customer loyalty was cited as bolstering results. Chris Kempczinski, Chairman and Chief Executive Officer, shared “Loyalty membership has now reached 166 million members, pacing ahead of expectations as we work towards our ambition of 250 million members and identified users now represent 25% of system-wide sales…we know that engaged loyalty customers spend more and visit more often. And as a result, we’re driving digital market share gains and continuing to build on our understanding of customer preference, personalization and behaviors.”

Joe Erlinger, President, McDonald’s USA, added “Over the past three years, we’ve significantly moved the needle in several areas, like loyalty, which has grown to over 20% of our US system-wide sales and over 37 million 90-day active users.”

Boots Advantage Card data will be used to develop new disease treatments

[This is what we call “Loyalty for Good”] Health and beauty giant Boots will use data gathered through its Advantage Card loyalty scheme to enable companies to seek new treatments for illnesses. Boots is close to striking agreements with research bodies and healthcare companies that offer treatments to people to test the effectiveness of drugs outside a laboratory, The Sunday Times reported.

Around 50% of all transactions at Boots are made through the Advantage programme, which has almost 17 million active members. The data gathered provides the retailer with data that could be used to identify and recruit people to take part in clinical trials.

CMA finds UK Supermarkets in the clear on loyalty program deception

UK supermarkets have been found not to have misled consumers over loyalty prices by the Competition Markets Authority (CMA). The regulatory body said it had scrutinized “tens of thousands” of supermarket prices but had discovered little evidence to support the claim loyalty promotions were unfair to shoppers. The CMA probe was first launched in January, prompted by an increase in supermarkets introducing cheaper prices only for loyalty card members.

The CMA has also commissioned a consumer survey to understand the impact of loyalty pricing on how consumers shop, which will explore issues such as shoppers’ concerns about supermarkets’ use of personal data, set to be published in November. The report will also seek to understand the impact of loyalty scheme pricing on how people shop. CMA will publish findings in November 2024 which will also set out the CMA’s views on how retailers can stay on the right side of consumer law when offering loyalty price promotions, including in proximity to ‘was’/‘now’ promotions.

Flaunt launches SaaS Loyalty offer for Shopify Merchants

Flaunt has launched the first-ever service-as-software loyalty offering for Shopify merchants, making the formal announcement over the weekend at Revision Skincare’s annual Elite Retreat event in Dallas.

With the launch, Flaunt introduces a truly unique solution to help Shopify merchants combat rising customer acquisition costs with creative retention strategies and profitably-designed loyalty programs.

HDFC (India) implements fair use clause on points earning and redemption

HDFC Bank, India’s largest credit card issuer, will implement new limitations on earning points via their credit cards effective September 1, 2024. The limits will be placed on earning points for utility and telecom/cable spending.

A fair use clause is also being implemented for redemptions of Apple products and Tanishq Jewellery vouchers, effective October 1, 2024.

Virgin Voyages Announces 8 Legs Run Club

Virgin Voyages has announced its new 8 Legs Run Club (8LRC), a program designed for Sailors of all ability levels. Virgin says 8LRC isn’t just a great way to meet other like-minded Sailors, but is a natural extension of its wellness philosophy, and focus on rejuvenating onboard experiences.

The release says that whether it’s free group fitness classes, state-of-the-art gym, revitalizing spa and salon treatments, or healthy eats in our 20+ dining venues, Virgin prioritize health and wellbeing onboard our cruise ships.

Pizza Nova launches rewarding new loyalty program

Pizza Nova announced the launch of its new loyalty program, Ciao Rewards, designed to thank Pizza Nova’s customers for their continued support and to welcome new pizza enthusiasts into the family.

With the introduction of its new app and a sleek, user-friendly website, Pizza Nova makes earning and redeeming rewards “easier and tastier than ever.” Domenic Primucci, president of Pizza Nova said “We’re excited to launch this loyalty rewards program to give back to our loyal customers who have supported us over the years. The program is an exciting and new way for us to say thank you.”

Hyatt partners with Under Canvas in luxury outdoor loyalty play

Hyatt Hotels Corp. announced a partnership with upscale outdoor hospitality provider Under Canvas. The partnership will give World of Hyatt loyalty program members access to experiences and stays at Under Canvas’ 13 outdoor resorts, located in such destinations as Montana’s Yellowstone National Park, Tennessee’s Great Smoky Mountains, and Yosemite National Park in California.

The Under Canvas partnership follows a similar one between Hilton and “glamping” company AutoCamp as Hyatt expands its luxury offerings and caters to traveler interest in outdoor-centric accommodations.

Is the surveillance capitalism model finally shaking?

Meta (Facebook, Instagram, and WhatsApp) has been hit by a wave of privacy complaints, data body regulators’ orders, and huge fines in the last few months. The latest is a $220 million fine in Nigeria for breaching local laws on data sharing. Meta’s privacy problems aren’t new, but the uptick in regulatory challenges could signal a coming transformation of the data protection landscape.

Is there enough momentum to really shake the surveillance capitalism model to its core? Read about Meta’s latest privacy missteps and what this regulatory awakening tells us. There is clear linkage to the future of customer data management. The opportunity still exists for people in Loyalty Marketing to lead, not follow, on this topic.

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