In the latest edition of the Quick-Takes: CMOs reporting up to their CXOs, empirical proof of the value of CX, Colorado is going to police your data policies, digital transformation braiding, and your (likely) top 3 priorities.
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Cheers to you!
CMO And CXO Must Partner
Quick-Take: After CVS and Walgreens, here, too, the CMO reports to a chief customer officer, marginalizing their marketing role. Other CMOs are launching CX functions or embedding the CX discipline as part of their marketing organizations.
CX Data Markers
Quick-Take: Improving CX by one point can lead to more than $1 billion in additional revenue. (Forrester) Why it matters: Few other business areas can lead to such huge growth with such small changes. Investing in CX leads to powerful business growth that can transform companies and drive revenue.
Utilising Payment Technology to Respond to Emerging Consumer Behaviour
Quick-Take: The other thing that has happened, particularly for the Gen-Z consumer, is the rise of the subscription lifestyle. Consider music — they pay under ten dollars a month to listen to any song they want, but don’t purchase individual records. For content and TV, they have subscription plans. For books, a subscription plan. Clothing, they can rent it. That whole subscription idea of paying X per month acts as a nice dovetail into installment payments for a product. It fits right into that fundamental change in behaviour.
The Dark Side of Returns and Refunds
Quick-Take: To balance the needs of customers with the need to prevent return fraud, it’s important for merchants to understand the scope of the problem they face now. Twenty percent of e-commerce refunds are fraud, at a cost to merchants of $24 billion per year. On the other hand, more than 80% of consumers are checking retailers’ return policies before they buy, according to Shopify, so return policies that are too strict will cause losses, too.
No Need to Swap Data for Drinks
Quick-Take: “I think it’s too easy to upload an app and straight away put your name, email address, payment details in, without actually understanding fully where that information may be shared and why it’s being used,” said Suzanne Gordon, director of data protection at the ICO. “Ultimately this is your data, it’s your personal information and you need to be confident when you’re handing it over and the reasons why.”
Data Privacy Horizon
Quick-Take: Colorado will be the third state to pass a comprehensive data privacy law on par with California and Virginia that provides expanded rights to consumers, pending Governor approval. The broad Colorado Privacy Act does not allow for a private right of action, directs the Attorney General to make rules to help with compliance efforts, and creates a universal opt-out mechanism for consumers. There are also bills currently pending in six other states, offering varying levels of consumer protection.
Let Your Best Customers Define Brand Loyalty
Quick-Take: Forty-seven percent of diners now use at least one loyalty program, according to a January 2021 report from Patronix and PYMNTS, and that number is likely on the rise, with good reason. The report also revealed that members of loyalty programs spent more than twice as much on takeout as did those who were not members of loyalty programs.
Brand Loyalty in an Age of Uncertainty
Quick-Take: The very nature of loyalty is that it is earned over time. Make a promise and then keep it. Coke failed the test when it promised to be “the real thing,” and that “Coke is it,” and then flinched by introducing New Coke. In search of short-term financial gain, some companies erode their long-term credibility — their true brand equity.
The Evolution Of Digital Transformation
Quick-Take: In a recent IDC InfoBrief, the firm found that 54% of business owners admit the No. 1 challenge when it comes to meeting digital transformation goals is braiding all of these new solutions and projects into their everyday business.
Digital Customer Engagement will Continue to Define Marketing
Quick-Take: As the world has transformed, so has marketing. About 86% of chief marketing officers say their marketing must transform to be competitive. This explains why digital engagement strategy (28%), workplace strategy (34%), and organisational challenges (32%) rank as the top three things marketers say they’ve “completely changed” since the pandemic.