In an effort to gain market share, Lyft and Starbucks have formed an interesting partnership involving gift cards and loyalty promotions. The promotion combines digital rewards with traditional gifting and gift cards. Here’s how it’s working...
While getting a customer in your store for the first time is important, in order for your success in retail, the focus needs to be placed on repeat business. It is 6-7 times more expensive to acquire a new customer than it is to keep one. Customer loyalty programs work well, but most businesses may be getting it wrong. Here are 3 steps for measuring customer loyalty and rewards ideas. Track Customer Purchasing Habits In order to measure the effectiveness of a loyalty program we need to record the number of new customer vs. the number of repeat customers. This is the very basic first step, tracking who is coming in and what they have purchased. The easiest way to obtain this information is through a connected POS system. A connected POS system automatically sets up customer profiles and tracks their purchases every time they return. This helps provide retailers with an insightful analysis of their customer base. Having linked loyalty cards/spending cards also helps in tracking customer purchases. Calculate Important Metrics Simple metrics can help a retailer know whether or not their loyalty program is impacting their customers. Some important metrics to consider:
Customer loyalty and retention go hand in hand. When you are loyal to your customers they will be loyal right back. Industry research shows that retailers are better suited to invest in retaining their customer base than spending to generate new customers. Existing customers drive a higher share of revenue, have higher conversion rates, and continue to stay loyal to your brand during tough economic times.
This year Maritz Motivation is having their own "12 days of Christmas," revealing the 12 most redeemed items from their loyalty catalog and trends in electronics buying. 42% of the recent survey respondents indicated that they will redeem loyalty points to fund holiday shopping. What these consumers are buying could indicate large buying trends for the holidays. The first 3 items have been revealed, but one of the overarching themes to seasonal electronics buying could play directly into the health and wellness programs geared toward the early part of next year. Here are 3 seasonal trends:
As technology keeps expanding and growing, so do our payment systems. We're starting to see forward-thinking payment trends involving everything from mobile to loyalty rewards. Here are some of the latest movements in payment technology: Mobile Capability With so many now owning smartphones, online shopping has seen a huge jump in mobile business. Because of this jump, companies are now placing a higher focus on mobile capability payments. Plus, now the focus goes beyond smartphones as payment systems are also being developed and tested for tablet optimization as well. Focus on Omniconsumers While mobile functionality is a very important factor for those in the payment industries, it's not only about mobile right now. Younger users are known for paying on a variety of different platforms, meaning the highest functioning payment systems will have to cater to a variety of different channels. A Blur Between Physical and Online Shopping Consumers are not sold on only in-person or only online shopping. Many prefer to utilize both. That means that a majority of complaints that come from these double shoppers is centered around consistency between the products offered and product pricing. Smart companies are working to create consistency between off and online, especially when it comes to utilizing coupons and coupon codes. Loyalty Rewards Loyalty rewards are becoming tremendously popular with consumers. Now, 73 percent of consumers carry loyalty rewards cards for their favorite businesses. And they don't keep it down to just one. One out of 10 customers carry six or more loyalty cards on any given day. This only goes to show the tremendous growth that the loyalty and reward businesses are seeing and will continue to see in years, and even months, to come. For more information, read "The Ten Hottest Trends in Payments."
The GiftCard Partners name and logo, and other trademarks are trademarks of GiftCard Partners Inc. and may not be used without permission. The names of other companies, products and services are the property of their respective owners.