In a recent study, JD Power put the spotlight on two key factors in the overall satisfaction level of customers in the investment industry.  Despite the narrow industry focus, the reports findings provide insights that are valuable across industries.

1. Macroeconomic environment is driving satisfaction rates down.  As consumers struggle to recover from the financial downturn, their key service providers are taking the brunt of the blame for factors that may not be in their control.  However the study shows that companies which proactively try to create a superior customer experience may be more resilient against such thinking by customers.

2. Social media is empowering customers in the investment industry — much as it has in other industries.  The implication for investment companies is that they must step up to the next level in engaging and empowering customers, rather than leaving them to do so themselves on social media.  By shifting to the correct side of the equation, investment firms (and companies across industries) will mitigate and even benefit from the impact of the new era of consumer empowerment.

Clothing retailer Express is showing a laser focus in its efforts to drive the impact of its loyalty program.  Its latest push is centred around the implementation of mobile bar code capabilities.  The new effort has two specific targeted impact areas:

1. Streamlining the operational part of the loyalty program to give timely and targeted loyalty related offers to members

2. Eliminating fall-off from “sign-up later” type loyalty systems

The company has keyed in on the ubiquity of phones — which are always with the customer and represent the most consistently available medium for reaching and engaging them.  By extending the technology to include bar code capabilities, Express has extended the impact to include long standing loyalty programs challenges like those mentioned above.

Alliance Data Systems Corporation, a loyalty and marketing solutions provider, signed a multi-year agreement with Blue Nile to create and manage a private label credit card program. Benefits for customers of Blue Nile will include flexible financing options and no annual card fee, as well as online account management. Blue Nile shoppers can select from financing options that include six and 12 months same as cash. Alternately, they may choose to make payments over 24 or 48 months. Alliance Data also expects to develop additional cardholder incentives and marketing efforts through advanced website analytic capabilities, direct mail and email.

David Binder, the chief financial officer of Blue Nile, explained that they chose Alliance Data Systems for its tools and digital marketing capabilities that will turn engagement ring shoppers into ''Blue Nile customers for life.''

Alliance Data Systems' president of retail services, Melisa Miller, said, Alliance Data is uniquely positioned to support Blue Nile's legacy of creating an engaging, rewarding customer experience that contributes to repeat purchases and increased shopper loyalty. We are confident our retail heritage, deep understanding of consumer shopping behavior and robust suite of credit marketing tools will help fuel Blue Nile's customer loyalty strategy.'

Groupon announced the nationwide launch of Groupon Rewards ( http://www.groupon.com/Rewards ), an easy-to-use loyalty program for merchants that enables them to offer customers special Rewards for repeat business. After a successful pilot program in Philadelphia, Groupon Rewards is now open to U.S. merchants, regardless of whether or not the business has previously run a Groupon deal.

Groupon Rewards stimulates repeat business and customer loyalty for merchants, without the hassles of check-ins, extra apps, key fobs or punch cards. Consumers automatically earn Rewards just by using any major credit card saved in their Groupon profile when they eat, shop and explore their favorite local spots. Once a customer spends an amount pre-determined by the merchant, a Reward is unlocked to use during a future visit. Rewards works seamlessly with merchants' existing point-of-sale systems, allowing business owners to avoid expensive upfront investments and focus on operations as usual while Groupon does the work.

Verizon Wireless has again demonstrated that loyalty is still best achieved by a stronger customer experience.  Despite the struggles of mobile companies to satisfy customers, Verizon has managed to significantly out perform its competitors with respect to churn rates on a monthly basis.

The company points to its leading network — with a wide 4G footprint — thereby offering customers a performance level not available elsewhere.  Ultimately, the competitive advantage afforded by a superior service is very difficult for competitors to overcome even with lower pricing and generous loyalty programs.  

Verizon has further extended the advantage but training customers (for free) in the use of the features of its most advanced phones and network.

Mocapay, a mobile consumer engagement platform, announced a partnership with Yumilicious, a Texas-based chain of frozen yogurt lounges, to mobile enable its loyalty program at all locations in South Carolina and Texas.

Our customer is accustomed to personalizing their frozen yogurt during each visit," said Christian Le, CEO, Yumilicious. "The Mocapay platform provides us an additional layer of customization by enabling our customers to participate in tailored promotions and loyalty offers directly from their mobile phone. We hope that through this consumer data and rollout to all franchises, we can better serve our customer.

Using Mocapay's mobile platform, Yumilicious will be able to target their customers with exclusive specials, loyalty redemption and perk reminders before, during and after transactions, both in and out of its locations. Customers will be able to participate in the company's loyalty program, signing up directly using their mobile phone or transition their existing physical loyalty card and begin earning reward points.