In TheCustomer News, episode 13, Rafer and guests cover the latest headlines and follow with a robust roundtable discussion on Realigning Retail Loyalty.
Special Guests:
-
- Lauren Pearson, Sr. Manager, CRM & Loyalty at rue21
- Amy Barnett, Sr. Director – CRM, Loyalty, & Insights at Famous Footwear
Headlines
-
-
- NIKE JUST DOING IT IN D2C – DIRECT TO CONSUMER SALES SKYROCKETING
-
NO SURPRISE, BRANDS ARE GETTING MORE AGGRESSIVE ON DIRECT TO CONSUMER E-SALES WHICH HAS INCREASED THE NEED FOR A COMPLETE OMNICHANNEL EXPERIENCE. ONE LEADER, NIKE WHO’S D2C SALES ACCOUNTED FOR ONE THIRD OF ITS REVENUE.
Interesting conversations lately with retailers – some of whom feel like DTC is something of a flash in the pan – a symptom of Covid / lockdown purchase phemomena. But D2C sales accounted for a whopping 33.1% of Nike’s revenue, up from 13.5% in 2010 — nearly a third of its annual revenue. So if that’s a flash in the pan, it’s a very good one. Bottom line – DTC requires deft navigation with your traditional distribution channels and a whole host of technologies to support it – but Direct-to-Consumer is here to stay.
-
-
- TAKE STOCK IN THIS – USERS OWNING STOCK DROVE MORE SALES
-
TAKE STOCK IN THIS STAT. RESEARCH SHOWS AFTER CONSUMERS WERE GRANTED STOCK IN A COMPANY THEY INCREASED THEIR WEEKLY SPENDING BY 30 TO 40 PERCENT ON THAT COMPANY. LOYALTY WAS THE DRIVING FACTOR IN MAINTAINING THE CONUSMER’S RELATIONSHIP.
There are different psychological responses to different kinds of rewards. Some are meant to stimulate immediate actions & reactions while some are designed to build loyalty. In this case, the study found that giving stock – equity – in the brand, led to a HUGE increase in spending AND brand loyalty.
Look, ask anyone who runs a loyalty program and they’ll tell you that success is a function of incrementality – micro improvements over time. But a 30-40 bump goes way beyond incrementality. So rewarding with equity actually builds brand equity.
-
-
- START BEFORE THE HORSE – START-UPS USING MARTECH BUT DON’T NECESSARILY USE IT.
-
THE START-UP WORLD MAY NOT BE AS TECH SAVVY AS THEY NEED TO BE. ACCORDING TO A SURVEY, 68 PERCENT OF THEM USE MARKETING TECHNOLOGY BUT ONLY 59% OF THEM SAY THEY FOLLOWED A COHESIVE PLAN. MIKE, THESE COMPANIES ARE PUTTING THE CART BEFORE THE HORSE?
Maybe, maybe not. Running a startup is a mad dash that goes right through chaos into calamity and, somehow, potentially into success. That is to say, the best startup CEOs and CTOs are masters at juggling bowling pins, bowling balls and the occasional chain saw just to keep things moving. It does seem to suggest though that there’s room for strategic technologists to come alongside and catalyze things.
Great session – empathy, customer at center of everything, loyalty rocks the enterprise!