In this week’s edition of TheCustomer QT: Deep in the data privacy weeds, Why is your customer crying, Smart partnerships are here, and the Pavlov-French fry dilemma.
So skimmable.
CX
How Many More Customers Need To Cry?
Quick-Take: Of the customers they surveyed, 27% of them said that they felt like their entire day had been ruined by bad service, and 1 in 10 had cried or nearly cried due to the bad service they received.
Editor’s Note: This is one of very few CX data points that touches on core human effects of good, and in this case, bad CX. What are your organization’s emotional-effect KPIs?
TECHNOLOGY
Digital Transformation Through the Customer Lens
Quick-Take: What is the definition of your success as defined by your customers? “So many programmes are done through the lens of the project or through a need to drive operational efficiency. But, what would that mean for your customers? Or for your customers customer – what would success look like?”
The Rise of the CDP
Quick-Take: In fact, according to the Customer Data Institute, the market increased 30% from $1 billion in 2019 to $1.3 billion last year. Estimates see this figure reaching $1.55 billion in 2021 as conditions are even more favorable for the adoption of CDPs.
HOSPITALITY
Most U.S. Summer Travelers Will Stay Loyal
Quick-Take: Six out of 10 summer hotel guests said that they would remain loyal to a hotel brand(s), trying to stay at these properties whenever possible. Spending intent did not, however, vary according to brand loyalty, with both loyal and non-loyal guests planning to spend an average of $450. The differences in loyalty were apparent in the different hotel segments, with loyalty more pronounced at the economy level. When looking at booking patterns, the highest share of booking direct through a hotel was also among budget/economy guests, while OTAs were more appealing for the upscale guest.
DATA & PRIVACY
An Empirical Study on WeChat Users
Quick-Take: The results imply that market players in China can use these driving factors to increase consumers’ valuation of their PI to maintain a stable user base, and a portion of users will choose paid but privacy-guaranteed services to protect their PI. Furthermore, our findings indicate that when there is a formal monetary PI market, a privacy class may emerge.
Editor’s Note: While this fact may seem a bit in the weeds at first, we think that any further fracturing of customers along privacy lines is worth paying attention to.
The Landscape Gets Rockier
Quick-Take: The CPA applies to any legal entity that conducts business in Colorado, produces or delivers products and/or services intentionally targeted to residents of Colorado; and meets at least one of the following thresholds: (1) controls or processes personal data of more than 100,000 consumers per year; or (2) has some financial connection to the sale of personal data and processes or controls personal data of more than 25,000 consumers per year.
Editor’s Note: Colorado joins California and Virginia with legislated guidelines for consumer data privacy. Look for a slew of additional state regulations – and the attendant complexities – to come soon.
STARTUPS
Travel-As-a-Service Model
Quick-Take: OneTwoTrip’s Forma product lets banks, telecoms, and other companies sell travel to their customers, allowing those customers to earn cashback in their loyalty programs and pay in installments. Banks can integrate it into their websites and apps to redeem loyalty points on travel. OneTwoTrip said it has signed up more than 40 banks and fintech players with significant customer bases in Russia and Europe.
Editor’s Note: Creative cross-sector distribution models like this one are already starting to re-shape how certain categories expand their reach. What opportunities lie beyond your immediate horizons?
LOYALTY
Pay To Play
Quick-Take: Of the shoppers surveyed, 76% say they would pay for a premium loyalty program. And 81% of traditional loyalty members would join a premium program at their favorite retailer if the benefits were valuable.
Post-Pandemic Changes in Consumer Behavior
Quick-Take: For example, an MIT neuromarketing study found that paying with a credit card activates the brain’s reward system and releases dopamine, which makes us want to spend more.
McDonald’s Rewards Program Debuts
Quick-Take: McDonald’s is officially introducing its MyMcDonald’s rewards program with lots of free fries as it tries to deepen its relationship with millions of customers.
Editor’s Note: This hits us right in the Pavlovian feels.
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Photo by Katerina Jerabkova on Unsplash.
