Management / Customer loyalty programmes on the rise as retailers invest in customer retention
Customer loyalty programmes on the rise as retailers invest in customer retention
18 August 2015 |
46 per cent of retailers are reportedly investing in loyalty programmes in a bid to keep consumers engaged, a new report finds.
A further 62 per cent of retailers are adjusting their budgets to accommodate loyalty schemes.
The report, published by consultants Boston Retail Partners, recommended that retailers strive to move “beyond the traditional” points and rewards systems offered by retailers to offering a more personalized customer experience.
Ken Morris, principal of Boston Retail Partners suggested that “offering exclusive perks, relevant incentives and personalized rewards” would allow retailers “to further tailor the experience”.
Some potential approaches recommended by the report included using gamification and social interaction to engage customers.
In-store customer identification was also suggested to provide customised rewards and guided selling based on consumer preferences and habits.
The findings revealed a significant disconnect with mobile marketing and loyalty programmes.
Whilst 47 per cent of those polled had boosted their mobile marketing within the last year, 73 per cent had not made loyalty schemes accessible via mobile devices.
However, US customer loyalty specialists Colluquy have found that consumer engagement with such programmes is low compared to the numbers that sign up, with customers only active in half of the loyalty programmes which they are signed up to.
Photo © thebarrowboy (CC BY 2.0). Cropped.