NEXT GENERATION LOYALTY PROGRAMS
Historically, retail loyalty programs have focused on transactional rewards at point-of-sale — a shopper purchases something and receives points, discounts or free merchandise. While saving money is attractive, these initiatives lack a human-centric approach. Offers are static and impersonal, with little differentiation from one retailer’s offering to the next. Consequently, consumers may frequently shift brand allegiance in search of the most attractive offering.
LIVE UP TO THEIR NAME
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Source: The Forrester Wave: Loyalty Service Providers, Q3 2021
Source: McKinsey, “Next in Loyalty: Eight Levers to Turn Customers into Fans” (Oct. 12, 2021)
2/3
of established loyalty programs fail to deliver value; some even erode value.
86%
of U.S. online adults belong to at least one loyalty program.
Today’s consumers expect more. Technology-driven, modern marketing tools are addressing their needs. Using advanced analytics, increased data consolidation and data insights, they provide retailers with a deeper understanding of how customers interact with their brand and behave in other areas of their lives. This allows retailers to create relevant, personalized offers and communications.
Since initiatives are not purely transactional, shoppers’ brand relationships grow deeper. Retailers can even layer on customized incentives involving other retail or non-retail partners that speak to customers’ interests and values. This data-informed, customer-first approach yields shoppers who are truly loyal and engaged today and will continue to be so tomorrow.
2/3
of established loyalty programs fail to deliver value; some even erode value.
Source: McKinsey, “Next in Loyalty: Eight Levers to Turn Customers into Fans” (Oct. 12, 2021)
86%
of U.S. online adults belong to at least one loyalty program.
Source: The Forrester Wave: Loyalty Service Providers, Q3 2021
Today’s consumers expect more. Technology-driven, modern marketing tools are addressing their needs. Using advanced analytics, increased data consolidation and data insights, they provide retailers with a deeper understanding of how customers interact with their brand and behave in other areas of their lives. This allows retailers to create relevant, personalized offers and communications.
Since initiatives are not purely transactional, shoppers’ brand relationships grow deeper. Retailers can even layer on customized incentives involving other retail or non-retail partners that speak to customers’ interests and values. This data-informed, customer-first approach yields shoppers who are truly loyal and engaged today and will continue to be so tomorrow.
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