Finish off this week with the news (and news you may have missed) that's going to impact your customers in the coming weeks and months.
In this week's customer engagement recap:
- Target sees profit fall months after credit card hack, struggles to win back customers
- T-Mobile, Sprint Tussle for Customers Escalates
- The Versatility of Loyalty Programs & the Changing 80-20 Rule
- Family Dollar discount store rejects Dollar General takeover bid
- The Dangers of Overthinking Loyalty Programs
- 400 People Continue Starbucks Pay-It-Forward Chain For 11 Hours
Target sees profit fall months after credit card hack, struggles to win back customers (NY Daily News)
A few months back we covered how the Target security breach had little effect on the brand? Well, that's changed. According to their latest earnings report, store traffic is down for the second straight quarter and net profits fell 62%. Expenses related to the breach: $110 million. Yeah, go ahead and invest in those security measures, businesses of America.
T-Mobile, Sprint Tussle for Customers Escalates (Bloomberg)
Now that their brief acquisition-centric romance has ended, these two are back at each others throats. The TL;DR is Sprint killed off their "Framily" plans and is now offering an unlimited data and calling package for $60/month (undercutting T-Mobile's similar plan) and T-Mobile is offering a year of unlimited data to customers who refer new customers from other carriers.
The Versatility of Loyalty Programs & the Changing 80-20 Rule (Access Loyalty Blog)
The Pareto Principle is still a good concept, but today's market means advocates are just as important as a brand's top spenders. The good news is loyalty programs are a good tool to identify and reward both of those groups.
Family Dollar discount store rejects Dollar General takeover bid (Financial Times)
Family Dollar (the fourth fastest-growing retailer in the nation) is fighting a proposed takeover by Dollar General (the segment leader). Sound insignificant? Combined, the two would boast nearly 20,000 locations and around $30 billion in revenue.
The Dangers of Overthinking Loyalty Programs (Access Loyalty Blog)
Much like our observations of loyalty programs that thrive on breakage, it's an industry where many of the participants seem to be willingly ignoring the desires of members. Example: 55% of people desire "ease of redemption" in a loyalty more than any other trait, yet only a third will actually ever redeem even once. There's a clear need for simplification.
400 People Continue Starbucks Pay-It-Forward Chain For 11 Hours (Consumerist)
In a week with some difficult and disturbing news to digest, we felt this piece of heartwarming news was worth highlighting.