Latest news with #CXDive
Yahoo
2 days ago
- Business
- Yahoo
Consumers see star and numeral ratings in very different ways
This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter. Dive Brief: When it comes to product ratings, consumers consistently overestimate stars and underestimate Arabic numerals, according to research published in the Journal of Marketing Research from earlier this year. Researchers found that consumers usually round up when they see an incomplete star attributed, overestimating the star rating. Conversely, consumers tend to focus on the first digit when they see ratings expressed as Arabic numerals, resulting in lower perceived ratings. 'These findings demonstrate that prevalent rating formats are misleading, highlighting the need for new industry standards,' the researchers said. Dive Insight: Many online retailers use stars or numerals to display product ratings, while others use a combination of both. Ratings and reviews can have a heavy influence on purchase decisions. Small product rating increases — as little as 0.2 stars — can boost sales anywhere from 30%-200%, McKinsey & Company research from 2021 found. However, there are no universal industry standards for displaying online product reviews. Still, the U.S. Federal Trade Commission has the power to regulate business conduct under Section 5 of the FTC Act, which prohibits "unfair methods of competition" and "unfair or deceptive acts or practices." The agency has guidelines businesses can follow to avoid running afoul of the law. For the most recent study, researchers conducted 12 experiments to determine whether consumers accurately interpreted product ratings displayed as fractional star ratings (i.e., partially filled-in stars) or numerals (i.e., 3.5) and found neither method was effective. Researchers, however, did find that numerals may be more familiar and easier for consumers to interpret. 'Using star ratings instead of Arabic numeral ratings may boost consumer perceptions of product quality, potentially leading to higher sales conversion rates, decreased cart abandonment, and increased product expectations,' the study said. That said, when organizations display stars and numerals, consumers primarily focus on the numbers. Based on the study's results, the researchers recommend that e-commerce retailers and platforms use visually complete stars rather than partially filled-in stars to display product ratings because they are less likely to be misinterpreted by consumers.
Yahoo
2 days ago
- Business
- Yahoo
Value remains a top draw of loyalty programs
This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter. Dive Brief: Consumers are seeking more substantial value from loyalty programs, with 85% saying they want better discounts, according to a Kobie survey of 5,000 global participants released Wednesday. The ability to track earnings is also important, particularly for paid loyalty programs. Two-thirds say they immediately appreciate the value of fee-based loyalty programs when they see how much they've saved in a year. More than 4 in 5 respondents said they would be interested in surprise earning opportunities. Dive Insight: While value is a core aspect of loyalty programs, companies may want to keep simplicity top of mind while finding ways to stand out from the crowd. There is a difference between value and effective value, Jerid Grandinetti, VP of marketing and culinary at Baskin-Robbins, told CX Dive in January. Customers who can't earn desired rewards won't find those rewards valuable regardless of how much they can save. With that in mind, the company redesigned its Baskin-Robbins Rewards program to not just make customers feel like they're getting a deal but also make the rewards flexible and easy to earn. 'I think what we've learned is that our offers need to be simple, they need to be consistent, they need to be compelling, and they need to match guest behavior,' Grandinetti said. Not only do customers want different rewards, but their approach to redeeming them varies as well. Kobie's research found that about half of consumers are "savers," defined as those who earn points with a specific loyalty reward in mind, while one-third are "collectors" who earn points without a specific goal. Just one in five are considered "spenders" who redeem points as soon as they are eligible for a reward. While monetary rewards are popular, loyalty programs can also benefit from offering a variety of rewards that go above and beyond transactional value. Prizes and experiences can help a program stand out, particularly among a brand's most loyal customers. Butcher Box takes this approach with its Sizzle Society loyalty program. The three-tiered program offers the equivalent of 2% back with each purchase for all members, but customers who reach the higher tiers can access experiential benefits like priority customer support and access to virtual Q&As with the company founder. 'The table stakes, if you will excuse the pun there, are offering points back,' Chief Commercial Officer Reba Hatcher told CX Dive last month. 'That is just a loyalty program. Nothing about that makes ButcherBox stand out, and nothing about that makes our program special. You can go to another company and get your 2% back.'
Yahoo
4 days ago
- Business
- Yahoo
Albertsons sees digital success, but the channel has yet to turn a profit
This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter. Albertsons is investing in its digital customer experience and loyalty program as it approaches the breakeven point for its e-commerce business, executives said on a Q1 2025 earnings call Tuesday. To enhance its digital shopping, the company introduced a shop assist feature, which lets customers and store associates communicate during the order fulfillment process, according to CEO Susan Morris, who took on the role in May. The Albertsons for U loyalty program grew membership 14% year over year to 47 million members in the first quarter, according to Morris. She attributed the growth to last year's initiative to make the program easier to understand. While the grocer's sales and loyalty growth have been stable, Albertsons is still charting an uncertain future following the breakup of its merger with Kroger, and cost-cutting measures led to layoffs this year. The grocer's loyalty program will play an important role in the grocer's future, Morris told The Wall Street Journal in an interview last month. Albertsons will take better advantage of loyalty member data to determine which items can withstand higher prices and which need a price drop to bring in more customers. Albertsons for U could support this goal with rapid growth. Membership has steadily increased in recent quarters, up from 41.4 million in Q1 2024. Albertsons executives highlighted e-commerce as one of the company's biggest growth, customer acquisition and customer retention opportunities, though the channel has yet to achieve profitability. 'Our focus on delivering exceptional customer service experience is fueling new customer acquisition and strengthening existing customer retention,' Morris said. 'To do this, we're continuing to enhance our digital shopping experience, including the introduction of AI and interactive features that deliver both ease and convenience.' One way the grocer aims to improve flexibility is by letting customers add items to an online order right until picking starts. The change was made because 'shoppers often think of one more item they need just after an order is placed,' Morris said. E-commerce sales were up 25% year over year in the first quarter, but penetration remains below grocery industry peers, according to Morris. Digital sales accounted for 9% of Albertsons' total grocery revenue in the quarter. Albertsons is bringing its mobile app into the store as well, according to Morris. Digital customers use it three times per week on average for capabilities including personalized meal planning and in-store product location tools. 'What began as a tool for enabling e-commerce and delivering great deals is now a Swiss Army knife of tools that makes customers' lives easier regardless of whether they're shopping in our stores or online,' Morris said. Albertsons' identical sales rose 2.8% year over year in the first quarter of 2025, according to an earnings report. Net revenue increased 2.5% year-over-year to $24.9 billion during the period.
Yahoo
11-07-2025
- Business
- Yahoo
ASOS launches loyalty program as part of turnaround effort
This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter. Fashion brand ASOS has launched a loyalty program for customers in the United Kingdom, the company announced last week. The fashion retailer began testing the program in March ahead of the full rollout. The program is divided into four tiers. The first tier, which is free, offers early access to product drops, a 20% birthday discount and access to ASOS' digital stylist, an AI tool that can curate looks for customers with a conversational interface. Members can reach higher tiers based on their annual spend and gain benefits including members-only sales, priority back-in-stock alerts and early access to curated product collections based on certain styles or trends. was designed to attract new shoppers while offering benefits that reward the company's most loyal customers. The company aimed to create a frictionless sign-up process and immediate access to perks to help the retailer stand out. Higher-tier rewards are focused on the experiential side, with top-tier members gaining access to in-person events. 'Our customers want to engage with ASOS in a way that goes beyond just shopping,' Macy Hong, head of loyalty at ASOS, said in a prepared statement. ' creates opportunities for them to connect with the brand, discover new fashion and gain access to exclusive experiences.' Exclusivity may be essential to the program's potential for success. A June 2024 Snappy survey found that access to exclusive merchandise was one of the top features of loyalty programs. Customers also expressed interest in special treatment, including discounts only available to members. The loyalty program is part of a broader emphasis on CX that ASOS CEO José Antonio Ramos Calamonte discussed on a Q2 2025 earnings call in April. Experience is one of the three pillars of the fashion retailer's turnaround strategy, and will play a key role, he said. The company is putting an emphasis on personalization as well, according to Ramos Calamonte. In addition to its AI stylist, the company is working on improving its search and recommendations engine. Still, ASOS has work ahead. Revenue was down 13% year over year in the first half of 2025, according to its most recent earnings report. The drop follows a 16% year-over-year revenue decline in fiscal 2024, according to an annual report. Recommended Reading How retailers can foster loyalty for Black Friday and beyond Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-07-2025
- Business
- Yahoo
Leaders think they're doing a good job on CX. Customers don't agree.
This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter. Even though 80% of business leaders think they're meeting customer expectations, just 24% of consumers agree, according to an Amdocs Studios survey of nearly 1,000 business leaders and more than 2,000 consumers released last month. Nine in 10 business leaders say that the trench between expectations and reality is important to bridge now. Nearly half say the gap is widening. Business leaders say lack of training and unclear CX metrics are the top reasons for the CX perception difference, according to the survey. Businesses are missing the mark when it comes to meeting customer expectations in part because they aren't investing enough in it. Despite 92% of business leaders stating that CX is a main or increased focus, only 28% believe CX is 'extremely important' to invest in. Another 43% say their current investments aren't producing returns. Companies have trouble bringing together CX efforts and the bottom line — which causes executives to underestimate the power of experience. The first step to understanding how CX improves profitability is aligning metrics with broader business goals, according to Thomas Randall, advisory director at Info-Tech Research Group. 'Metrics like net promoter score, CSAT or CES only matter if they correlate with revenue, retention or cost efficiency,' Randall said in an email. 'Link these to KPIs, such as repeat purchase rate, churn rate, upsell rates and so on.' While tracking customer sentiment is important, it works better when sentiment is aligned with behavior across entire customer journeys, including onboarding, support and renewal, according to Randall. 'Look beyond single touchpoints, and map out key journeys to measure drop-offs, friction and success rates,' Randall said. 'Behavioral indicators, such as compliance frequency or product adoption, are more reliable markers of experience quality.' Companies can also identify the CX investments that will have the biggest impact, according to Jeannette Michels, head of marketing (experience design & digital engineering) at Amdocs. The size of the investment won't necessarily reflect the return. 'Focus on outcomes, not effort,' Michels said in an email. 'It's not about how much you're doing — it's whether it's making a difference. Simplify, streamline and measure impact, not activity.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
