The Loyalty NewswireSeptember 17, 2024

This week’s Customer Loyalty and Digital Marketing News

From the Editor

There is new technology being announced to serve customer loyalty needs. Even though some people observe that loyalty tech is a “buyer’s market,” new entrants continue to surface. We also see a continuous stream of new partnerships announced as compatible brand alliances are a clear winner when seeking to enhance value propositions for customers.

But the most concerning news has to be the developing story around the latest threat to travel loyalty – the airlines in particular. Last week we reported that the US Department of Justice was opening an investigation into the frequent flyer programs of the major US airlines. Now we read more news about the “fed up” nature of travelers punctuated by the reality that the younger generations may not have any predisposed leaning towards airline loyalty. Is the “Golden Goose” of travel loyalty on the chopping block?

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The Global News Roundup

New Arrivia 2024 Travel Loyalty Report shows Retailers partnering with Travel Providers.

In Arrivia’s 2024 Travel Loyalty Outlook Report, 95 percent of companies surveyed say they offer their loyalty members travel rewards – up from 65 percent in the 2022 report.

For example, T-Mobile customers can save up to 40 percent on hotels when booking through the wireless provider’s travel site; Uber One members can connect their Marriott Bonvoy membership to earn bonus points when spending with both brands; and by linking their Starbucks Rewards and Delta SkyMiles accounts, Starbucks Rewards members earn miles every time they add a minimum of $25 to their rewards account. Memberships + Loyalty + Partners = Growth!

Bread Financial shares insights into Customer Behavior and Payment Cards.

In its Q2 2024 Earnings Call, Credit Card issuer and processor Bread Financial shared highlights of the consumer trends it is witnessing and its plans to balance credit risk management with engaging value propositions.

In the call, executives said that Bread is “committed to fueling innovation, leveraging data and AI, and scaling our platform to enhance satisfaction for our customers, partners and associates … our heightened focus on operational excellence to drive improved customer experience, enterprise-wide efficiency, reduce risk and value creation is embedded in our decision-making.” Read the earnings call transcript here.

Earn, Eat, Repeat: Sonny’s BBQ Introduces Mobile App + App-Based Rewards Program.

Sonny’s BBQ, the mission-driven BBQ restaurant known for quality BBQ and spreading kindness in the communities they serve, has recently launched their mobile app and a new, app-exclusive rewards program as a part of their larger brand commitment to meeting the changing needs of their guests.

Sonny’s partnered with Thanx to create the new app. Since its initial release in June, the mobile app has seen over 57,000 downloads and over 160,000 digital orders. The press release notes 83% app cart conversion rate, as well as a 29% conversion rate from email subscribers.

U.S. Bank rolls out access to Paze digital wallet.

Minneapolis-based U.S. Bank said Tuesday that its debit and credit card holders now have access to the Paze digital wallet developed by bank-owned Early Warning Services. U.S. Bank is the first bank to publicize a rollout of Paze, according to EWS spokesperson Richard Pesce.

Additional banks partnering with EWS on Paze include Wells Fargo, Bank of America and Capital One, among others. Press release here.

Are the Airlines Killing the Golden Goose a/k/a the Travel Loyalty Customer?

About 1 in 10 consumers reported poor experiences with an airline or hotel this year, according to a recent survey by the XM Institute, a customer service consultancy. Roughly half of those surveyed say they decreased or entirely eliminated their spending with the offending company as a result.

Ari Lightman, a professor of digital media and marketing at Carnegie Mellon University, said inadequate customer support, degradation in service quality and a negative perception of travel companies are making travelers question their loyalties, saying “That’s especially true for the younger generation, which doesn’t have any perceived loyalty to a specific travel brand.”

Checkmate adds Loyalty Management features to is Order Solutions Platform.

Checkmate, a restaurant-ordering solutions provider, has added a loyalty and marketing platform to its direct-ordering platform. The solution integrates loyalty, ordering and marketing into one system, allowing brands to deliver personalized customer experiences, boost repeat business and drive revenue through data-driven marketing strategies, said Brett Spiegel, VP of direct ordering for Checkmate.

“Our Loyalty & Marketing solution is a game-changer for restaurant brands,” he said in a company press release. “As an add-on to our Direct Ordering platform, it combines loyalty, marketing and voice AI into one powerful tool.

Mastercard to buy Recorded Future for $2.65B.

Mastercard announced a deal to acquire global threat intelligence company Recorded Future from Insight Partners for $2.65B. The transaction, which is anticipated to close by the first quarter of 2025, is subject to regulatory review and other customary closing conditions.

Headquartered in Boston with offices and employees around the world, Recorded Future works with over 1,900 businesses and government organizations across more than 75 countries to provide visibility into potential threats. This ability, coupled with Recorded Future’s use of AI and other advanced technologies, will add to Mastercard’s (MA) identity, fraud prevention, real-time decisioning and cybersecurity services, bringing expanded threat intelligence capabilities to its network of merchants and financial institutions.

Benepik (India) Launches Tech-enabled Consumer Loyalty Program

Benepik, a leader in Rewards, Loyalty, and Corporate Gifting, introduced a Consumer Loyalty Program. This move comes into play as the consumer brands are flocking towards first- party data and real-time insights, aiming to retain consumers and acquire new ones through personalized campaigns and repeat business.

With over 8 years of industry expertise and a presence in regions such as India, UAE, Qatar, Saudi Arabia, and Indonesia, Benepik serves more than 700 enterprise clients and more than 2M+ users.

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