Why should retailers care about loyalty programs? Just like personalization, loyalty programs have also been reshaped by online shopping experiences, and a successful loyalty program can help deliver repeat shoppers, which is increasingly easier than gaining attention from new buyers to visit, browse, compare, decide and buy.
Most retailers recognize that loyalty programs play an important role in helping to keep customers satisfied, but amid so much noise around what goes into a strategic loyalty programs, we wanted to share some of the best advice we’ve ever heard:
- Reward All Of Your Shoppers. It’s important to target loyalty programs to those that aren’t yet your most loyal customers. Giving them a taste of the benefits of your loyalty program could potentially convert your occasional customers into regular ones. Of course, it’s just as important to continue to provide the most valuable rewards to the most loyal part of your customer base.
- A Digital Strategy Is the Surest Way To Engage. Our recent North American survey revealed that 40% of consumers have missed out on loyalty points because they didn’t use them before the expiration date and 36% often forget to use paper coupons they receive in the store. It’s clear from our survey that many of these benefits aren’t being used, which is a lost opportunity for retailers. Because many shoppers are missing out on these types of benefits, retailers should utilize a comprehensive digital strategy to boost their customer loyalty. A robust digital pass application can help retailers provide their loyal customers more timely rewards. This type of application allows retailers to deploy digital passes on iOS™ and Android™ devices, via their digital wallet applications.
- Put Your Customers Ahead Of Profits Once A Quarter. Customers should feel as though they are benefitting from their loyalty membership with a retailer, otherwise, there is no need to continue their loyalty with you. To prevent customers from bringing their loyalty elsewhere, it’s important for retailers to offer exclusive and valuable sales and opportunities to their loyalty members, which will help show customers that they are getting a value out of their loyalty.
- A Consistent Strategy Matters Most. Customers appreciate a retailer that is consistent. If they see a fantastic coffee table on sale for 20% off one time, they will come to expect that pricing when they go back to actually buy a coffee table. Retailers shouldn’t short customers by providing inconsistent sales, rather they should continuously show their customers that they provide items at fair and dependable prices.
- Promoting Your Great Rewards On Social Media Should Be A Priority. Social media is everywhere nowadays, and it’s important for retailers to use it to their advantage by incorporating it into loyalty strategies. Don’t be afraid to promote those great sales and rewards going on to followers and interested customers. It’s a great way to spread the word fast to anyone that may be interested in your product. You never know – you could just entice someone to get out of their house and into your store, or at least click on your URL.
- Target The Right Offers to The Right Customers. No one likes to be bombarded with messages that don’t apply to them. It’s critical to send your customer’s loyalty rewards and points that mean something to them, and more importantly, that may entice them to buy something. Keep in mind that the more your customers continuously receive messages that don’t matter to them, the more likely they are to discontinue their following of your retailer’s news and products.
The purpose of loyalty programs is to improve customer retention by ensuring they are a repeat customer and improving their overall experience with the retailer. Loyalty programs are great way for both retailers and customers to positively benefit, and it’s important to manage and successfully reach customer expectations with a loyalty strategy so they can spread the word to their friends, family and online network.