Customers are now driving trends by demanding more for less and better value.
Loyalty programs should be seen as a key cog in delivering on customer expectations as they are one of the most efficient and effective ways to deliver end users a value-added service whilst also increasing a retailer’s income.
By using a loyalty program in conjunction with an integrated digital marketing campaign, stores are able to reach customers with more engaging messaging and a greater likelihood of increasing the purchasing propensity of a customer.
Research shows that retailers with rewards programs will develop a more loyal customer base who shop more frequently and spend more in each shop.
60% of customers prefer stores with loyalty schemes
(Deloitte, June 2017)
At the same time these businesses are gathering a mass of insightful customer data, allowing retailers to drilldown on emerging trends and shopping habits of their target market.
Retailers can utilise this data to develop sales and inventory forecasts and to better shape multiple marketing strategies such as customised campaigns to target high value customer segments, incentivise disconnected customers to return or convert low value customers into increased spenders.
48% of consumers will spend more instore if they know they’re going to be rewarded
(Nielsen, Feb 2017)