The Loyalty NewswireSeptember 10, 2024

This week’s Customer Loyalty and Digital Marketing News

From the Editor

Sometimes you must know “when to say when”. Every week when we think the news cycle may be slow, we find our cup running over with customer loyalty related news from around the world. This week, the headliner has to be the US Department of Justice opening an investigation into the frequent flyer programs of the major US airlines. Why? The continual adjustment of redemption values and devaluation (perceived and real) of the FFP currency has drawn the attention of regulators. Maybe the airlines should have known “when to say when”.

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The Global News Roundup

DEVELOPING STORY: Frequent Flyer Point Devaluation Draws Attention from US DOJ

We know of the many loyalty program devaluations occurring over recent years. For the airlines, Consumers often complain that the number of points needed to earn a free flight are on the rise and the number of seats that can be purchased with points are limited.

As a result, the Biden administration is examining the four largest U.S. airline frequent-flyer programs and how they devalue points that consumers have earned and frequently change the number of points or miles needed to book flights. Transportation Secretary Pete Buttigieg wrote to the CEOs of American, Delta, Southwest and United on Thursday, asking each for a report on policies, fees and other features of their loyalty program.

Contrasting Shopping Behaviors of Gen Z and Baby Boomers

According to retail data science company 84.51°, there are stark differences in responses between baby boomers (the generation with the most wealth) and Generation Z (the generation poised to be the most wealthy soon). For example: Gen Z prioritizes low prices and overall value when choosing where to shop for groceries. Gen Z’s focus on affordability and overall value highlights their cost sensitivity, as well as an interest in balancing price and quality.

Baby boomers have consistently prioritized overall value for their money as the top factor in where to shop for groceries, followed by low prices. Baby boomers also have a slightly greater appreciation for great promotions/sales and store loyalty/rewards programs than Gen Z.

But will Gen Z have the Purchasing Power that Everyone Predicts?

Intelligent.com, a platform dedicated to helping young professionals navigate the future of work, has published a recent survey report exploring hiring managers’ attitudes toward hiring recent college graduates.

Based on the survey, 17 percent of hiring managers are hesitant to hire recent college graduates. The most commonly reported challenges included a lack of motivation or initiative (50 percent), unprofessional behavior (46 percent), and poor communication skills (39 percent).

Let’s Talk Loyalty Wiser Loyalty Series – How Artificial Should your Communications Be?

Executive faculty members from the Loyalty Academy™, Bill Hanifin and Aaron Dauphinee are back again for the Wiser Loyalty podcast series for Let’s Talk Loyalty.

This month the duo is looking into topics from the Loyalty Member Communications (course 110). In this week’s episode Bill and Aaron discuss the topic of Artificial Intelligence’s (AI) rising integration into loyalty program member communications with three uses cases: search, segmentation, and service and support.

GROCERY: The Path to Purchase now goes through Mobile Marketing

The grocery industry and consumers’ path to purchase have changed dramatically in the past decade. The majority of U.S. households now spread their weekly shopping trips out between membership clubs, specialty grocers, traditional grocers and big box retailers.

With the advent of digital media and multi-channel marketing programs, the biggest game-changer is now mobile. Retailers such as Meijer Supercenters and Kroger that have significantly incorporated mobile into customer communications and loyalty programs have experienced excellent customer participation and program ROI. Read here.

Niemann Foods’ County Market Plays Loyalty Rewards Gam

Niemann Foods includes more than 100 grocery, pet food and hardware stores as well as pharmacies and gas stations throughout the Midwestern states of Illinois, Indiana, Iowa, Wisconsin and Missouri. County Market, part of Niemann Foods Inc., has been enhancing the value of its MAX Value personalized rewards program.

Over the last year, the Quincy, Ill.-based County Market has offered loyalty shoppers a combination of merchandise rewards for meeting set spending thresholds and a digital mobile game tied to in-store seasonal displays. Both initiatives are supported by tcc, a provider of loyalty platforms and campaigns for supermarkets and other retailers. Same store sales grew by 14.6%, while basket size rose 6.1%. Meanwhile, MAX Value Card penetration increased 8.9%, enabling County Market to identify more of its customers and bolster its personalization initiatives.

Kroger adds Chase Pay Mobile Payments

Kroger Co. said it would begin accepting mobile payments through Chase Pay, the digital wallet offered by JPMorgan Chase & Co., in select retail markets and e-commerce programs next year.

The agreement with Chase marks the Cincinnati-based retailer’s first foray into mobile payments. Walmart unveiled its own in-app mobile payment offering in 2015, and recently said its use could soon surpass that of Apple Pay.

Schnucks’ new loyalty app funnels restaurant, gas points to grocery

Schnuck Markets is expanding its loyalty program beyond the grocery aisles to restaurants, fueling stations and other retailers through a new co-branded app with Upside, the rewards tech company announced Wednesday.

Members of the grocer’s loyalty program, Schnucks Rewards, will be prompted to download the Upside app, which will give them access to Upside offers within the Schnucks Rewards app.

QSR: Mobivity Announces Partnership with Checkers, Rally’s

Mobivity Holdings Corp., a global provider of personalized reward performance solutions for brands, announced that Checkers and Rally’s have renewed their partnership after Mobivity’s marketing/reward program, Connected Rewards, proved to be highly effective at increasing both recent and lapsed Checkers customers’ brand engagement using mobile gaming offers.

Mobivity’s Connected Rewards program enabled the following results for Checkers:

35.3x Higher Offer Redemption Rate
54% Redemptions from Lapsed Customers
2.5x Increase in Redemptions Post-Gaming Offer

Bounteous x Accolite Alliance Set to Elevate Retail Mobile Apps, Deepen Customer Loyalty

Bounteous x Accolite, a global digital transformation consultancy, announced its partnership with poq, a global native mobile app platform. “This partnership will help our retail clients launch mobile apps faster and with advanced, ready-to-use features that enhance the shopping experience,” said Jen Spofford, EVP and Managing Director at Bounteous x Accolite.

BNPL Products Gain Traction as Affirm Sees Profitability in 2025

Affirm finished its fiscal 2024 year with positive adjusted operating income for the second year in row. Gross merchandise volume rose 31% in the fourth quarter over the year before. Active Affirm consumers hit 18.7 million by the end of fiscal 2024 and merchants using the company’s services surpassed 300,000.

While Affirm has a developing product called the Affirm Money Card, it doesn’t fund lending from deposits. Instead, it relies on issuing asset-backed securities. Most of those deals carry fixed interest rates.

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