The retail sector is an incredibly competitive marketplace that has changed considerably over the last few years. Maintaining customer loyalty has always been challenging, but the rise of online, click and collect and myriad other shopping options and channels has made it easier than ever for customers to shop around for the best buy.
Customers want to be recognised and rewarded as thanks for their business. According to Brand Loyalty, 34% of customers say they would not be loyal to the brand if it weren’t for the brand’s loyalty programme. It’s no surprise that the average number of loyalty programmes in which consumers are enrolled climbed from 10.9 in 2014 to 13.3 in 2015. What is perhaps more surprising is that in the same time the number of schemes in which consumers actively took part in decreased from 7.8 to 6.7.
This is because it is often no longer enough to simply keep your customers’ ‘satisfied’ as they can easily take their business to someone they feel offers something ‘extra’. Growing consumer awareness of the way in which retailers use customer data reinforces this phenomenon. Shoppers understand their data has value and want to get something in exchange for it.
Rewards for loyalty can take many different formats – from money-off to exclusive access, special offers or additional content – but they are most effective when people get something that makes them feel special. Rewarding everyone in the same way doesn’t make sense: people aren’t all the same. What one person values won’t be the same as somebody else. This means a universal approach is almost certainly the wrong one. Not only can it make people feel undervalued but even worse, rewards that are irrelevant can push customers away.
This is because the key to effective loyalty schemes is understanding your customers. Learning what they’re interested in and how they like to shop. By knowing your customer, it is possible to reward individuals with tailored offers and recommendations. The more personalised the experience, the happier the customer and the more loyal they are likely to become. 28% say they feel “very satisfied” with a personalised experience, a rise from 21% last year.
Customer loyalty schemes are ultimately an effective way to improve customer retention, increase spend levels and boost bottom-line profits. At Ecrebo, we understand this, which is why our platform enables retailers to deliver scalable and tailored offers or recommendations to customers in a convenient and non-intrusive way. The result? Improved customer experience, spend and loyalty.
Contact us today to find out how our platform can help drive additional sales for your business.