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Lisa Hronek Archive for August, 2010
Use of personal information v. targeted deals
I have been editing the Loyalty Marketing Oxygen report this week (due to publish in September), and it got me thinking about privacy issues and how much has changed in the last year or two.
The Wall Street Journal recently ran a series of articles about how web activity is monitored and used, but the main point was that most consumers don’t know the extent to which companies are gathering information about them – usually to target their marketing efforts more specifically.
In the Loyalty Marketing report, 58% of consumers state that “more relevant or individualized deals” would be one of the top three features that would entice them to participate in a loyalty or rewards program. However, Mintel’s data also shows that consumers are at best conflicted about companies using their personal information. Here are some of the responses that lead me to think that:
• 68% say they “worry that new websites may use my personal information without my knowledge”
• When consumers are asked, “If a company used my personal information to sell me products I would switch to a different competitor that did not use personal information” – a significant number (62%) agree, and another 24% say they don’t know (for a total of 86%)
• 88% say that they “think that my personal information is something that belongs to me, like any other possession”
• 87% see the concept of privacy as meaning “control of my own information”
• 92% see privacy as a “fundamental human right”
There is no doubt that both businesses and consumers can benefit from loyalty programs and advertising that are more specific to what a consumer can actually use. There is nothing more annoying than a constant barrage of ads that have nothing to do with our needs or desires at our current lifestage or situation.
However, consumers feel VERY strongly about their right to privacy, and companies will need to tread very carefully so as to not do major damage to their brands if these behavioral targeting strategies are fully revealed. As the recent situation with Facebook shows us, in the age of Social Media the backlash can be quite sudden and severe.
Recycling in the Friendly Skies
Have you ever considered what happens to all the plastic cups and soda cans you give the flight attendant during your flight? If you guessed a garbage dump, you would be correct.
The question is why? You would think it’d be easy for airlines to collect cans, plastic cups and paper products for easy recycling but it seems airlines aren’t putting forth enough effort in being “green.”
A nonprofit environmental group called Green America recently released a report called “The Sorry State of Recycling in the Airline Industry,” which provides statistics on recycling efforts made by airlines. One startling statistic from the reports states that of the 1.3 pounds of trash left behind by a passenger, only 20% is recycled. However, nearly a pound of the trash left behind is recyclable, meaning airlines are not doing enough to forge a cleaner existence.
While airlines seem to be lagging in setting up sufficient recycling programs, Green America asks passengers to ensure their recyclable waste isn’t being tossed in the trash. Green America “suggests concerned passengers can take action by asking flight attendants whether any items are recycled; removing their own cans, plastic bottles and newspapers from the plane and recycling them at the airport; and writing to the airlines to urge them to do more.”
What is your take on this? How assertive/aggressive should airlines be in recycling waste product from their passengers? What are some of the inhibitors to setting up an inclusive policy?
Limited Edition Chevy Volt about to hit market
As we come close to the introduction of the Chevy Volt, individuals who have been putting off the purchase of a new car in order to get one of the first electric cars available to the public may have to wait even longer.
GM recently announced that it plans on producing 10,000 Chevy Volts in 2011, with plans to increase production to 30,000 in 2012.
According to the blog GM-Volt.com, there are 53,000 potential buyers who have shown interest in purchasing a Chevy Volt, meaning that demand for the new car far outstrips supply at the moment.
It appears that GM’s approach is one of caution, which I think is a calculated move as the company enters uncharted territory. The company needs to ensure that dealerships have been educated and are prepared for a new set of questions and potential issues related with a new car, even if they will have few to sell at first.
However, do you think that GM could be too cautious? What happens if one of its competitors announces a similar product, causing individuals to wait instead for that release? Nissan already plans on producing more Nissan Leafs during the first year of production than GM. Could GM’s caution be the company’s Achilles heel?
UPS mails luggage—not for late planners though
Imagine arriving at the airport with nothing but your purse or a small carry-on bag with you. No need to worry about whether your luggage is over the weight limit, or having to drag an overstuffed carry-on through the airport as you wait for your flight.
Then, when you land, think about not needing to pull a bag out of the overhead bins or waiting around the baggage claim for your bag to come flying onto the conveyer belt.
This could be possible through a new alternative offered by UPS. Capitalizing on frustration related to the baggage fees charged by most of the major airlines, UPS is now selling luggage boxes (in various sizes) that allow travelers to mail their travel belongings ahead of time to their destination, without all the hassles of dragging their luggage around.
Considering airlines have made $769 million in baggage fees during the first three months of 2010, it’s no wonder UPS is trying to jump into the action.
For those who plan ahead, this is a perfect alternative to dealing with extra fees charged by airlines. And as an added bonus, UPS would provide tracking numbers and email alerts as to the status of the shipped luggage.
Would you consider the alternative to shipping your luggage to a destination instead of paying for checked baggage?