Loyalty Marketing

The American Express card is now history at Costco Wholesale Club.    As of June 20, Costco is accepting only Visa-branded credit cards chain wide.   The retailer made headlines last year when it announced that, after 16 years, it was dropping American Express as its exclusive credit card provider and switching to Visa.   

When it comes to providing a satisfactory customer experience, online retailers have to deliver on their promises.   Sixty-six percent of e-commerce shoppers consider delivery a decisive factor when shopping online, according to a new study by enterprise delivery experience solution provider Convey. In addition, 70% of consumers report they are unlikely to return after a poor delivery experience.  

The Cartwheel couponing app from Target, which launched in 2013, is getting its biggest makeover yet.   Having been used by more than 25 million customers to create a total savings of more than $500 million, Cartwheel will now offer a more personalized experience, among other upgrades.  

Customers who belong to a retailer’s loyalty program spend more — significantly more — than those who do not.   That’s according to a new study by Accenture Interactive, which found that members of retailers’ loyalty programs generate between 12% and 18% more revenue for retailers than those who do not belong. The report was based on a survey of U.S. retailers across specialty, big-box, department, drug and convenience stores.   

E-commerce retailers could do better in converting shoppers at the point of sale, but are displaying encouraging signs.   According to the Checkout Conversion Index for the second quarter of 2016 from payment platform provider Pymtns.com, underperforming e-commerce retailers will lose $162.4 billion in potential revenue during 2016 due to failure to convert site visitors to sales. This is due to a variety of frictions that exist between online discovery and checkout.  

Despite all the hype surrounding mobile commerce, good old-fashioned desktops and laptops are still in style when it comes to making digital purchases.   According to the 2016 Digital Commerce Survey of more than 1,000 adult U.S. consumers from digital commerce strategy firm Sumo Heavy, 72% of respondents prefer using a laptop or desktop PC to shop online. Only 28% prefer using tablets or smartphones. Furthermore, 42% of respondents have never used a tablet to shop online, while 32% have never used a smartphone.  

Retailers often treat millennials like some sort of marketing Holy Grail, but there may be some simple ways to boost revenues from this emerging consumer generation.

According to a new study from online marketing platform provider Cue Commerce, “Consumer Moments of Truth,” the 80-plus-million shoppers who are part of the millennial generation can be categorized into the following five broad shopping personas.

Design is at the heart of Ethan Allen’s new “Design Center” retail format, which opened in Rockville, Maryland.   The store showcases the company’s new interactive design service and brings its robust website to life. The open floor plan has design stations and large touchscreens that invite customers to work directly on projects with the company’s design professionals in a space outfitted with the latest technology.