It's the ultimate question that marketers would love to have the answer to, how can retailers deliver winning strategies for their own loyalty programs? Loyalty drives sales, today, tomorrow and in the future, but how does a retailer keep loyalty fresh? Currently, U.S. households participate in over 20 loyalty programs, but less than 10% are actively using their accounts. Retailers need to produce winning strategies to have a successful loyalty program. Based on the existing loyal customer base, 37% of retailers believe that customer retention will be the #1 contributor to growth in the next 3 years. This customer retention correlates to same-store sales. 73% of smartphone users would like to connect their loyalty programs directly to their mobile devices. Recognition and rewards need to be differentiated. There is no one size fits all with rewards. In fact, lack of differentiation hinders program adoption. 69% of loyalty program members want to receive personalized discounts. Tracking technology allows retailers to gather shopper purchase history, spend, and browsing behaviors, allowing for retailers to offer personalized discounts. Lastly, well-planned implementation for loyalty programs is critical; the first 6 months of the launch being the most critical time for a loyalty program. Almost 30% of retailers rank store loyalty as a top 5 technology-related challenge in their industry.
Read the infographic “How Sweet It Is: The Satisfaction of a Successful Loyalty Program” here!