In today’s edition of TheCustomer Quick-Take: Paying closer attention to loyalty (twice), how to not get hung up on ChatGPT, and there’s still (a lot) of room for creativity in your messaging.
– Mike Giambattista, Editor in Chief
FEATURE: The Tipping Point for Travel Loyalty in 2023
Are companies devoting enough attention and resources to making their travel loyalty booking processes convenient and intuitive, offering personalized options and recommendations to members, delivering the sustainability-related options they crave, and providing the payment choices they need? Read more
Why Even Bother with Customer Loyalty?
Multiple studies have demonstrated how vital customer loyalty is to the overall health of a business. Industry data shows 65% of a company’s sales come from returning customers. Harvard Business School found that “increasing customer retention rates by 5% increases profits by 25% to 95%.” And, finally, 70% of companies agree that customer retention is cheaper than acquisition.
Myth: ChatGPT will Replace Google
Just this past week, Gmail creator Paul Buchheit predictedthat A.I. bots like ChatGPT “will destroy search engines within two years.” That seems pretty terrifying if you’re a Google shareholder. But no one at the search engine giant should panic yet. The difference between ChatGPT and Google is that Google lists websites containing answers to searches and ChatGPT gives direct answers based on its own research and then can further “chat” with the user to refine that answer. However, the answer could be flawed, incomplete or otherwise inaccurate so we’re not killing off Google just yet. One thing’s certain – ChatGPT has the potential to turn the online advertising market upside down.
Creativity Still Wins
Most marketing activity is ignored, most brands invisible to consumers and most advertising unnoticed. I read somewhere that in the 16 hours most people are awake each day they will only notice nine minutes of advertising, of which social is about three minutes. Yet within this period they will be exposed to just under one and a half hours of advertising. Put that way, what on earth are most brand and marketing communications teams doing? Obsessing with creating fairly anodyne long- and short-form content, organic social posts, and utterly forgettable advertising that few will pay attention to. There is a great opportunity for cut-through and standout for the brave and the bold. But developing great creative takes time, is expensive and needs real commitment.
