Loyalty Systems
As retailers look for better ways to encourage repeat custom, we take a look at the various systems in place that offer a reward for loyalty.
Anything that can be done to encourage spending is very valuable for retailers. Because customers are tightening their belts, they are also becoming more willing to research the best offers and are less likely to stay true to brands because of any sense of loyalty. However, introduce incentives into the mix and it can be a different story. We are all familiar with the range of reward cards that supermarket chains have been offering for some time now, where points certainly do mean prizes. The same tactic has since been introduced in a number of sectors including hospitality, entertainment and across the board in retail. The growing appeal of mobile retailing and mobile commerce is set to make the recognition and reward of loyal customers even easier, and numbers of retailers are looking at ways to integrate the use of mobile marketing into their
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process of rewarding frequent shoppers. Loyalty systems provide the retailer with a wealth of information on their customers; data gathered from reviewing frequent purchases can help retailers to determine what products would be best suited to promotions, or can even help determine what products should be placed near to each other in store to encourage multiple purchases. Information on
Michael Green, Director of Insight at
“Get it wrong and you risk losing customers, but get it right and it’s an excellent tool for building customer loyalty.” ‐ Michael Green, Director of Insight.
typical spends can also help retailers determine the right promotions to push to their customers. However, use of this data has to be controlled to ensure that customers retain their faith in the company.
Transactis believes that keeping on the right side of things can be a real balancing act; “Get it wrong and you risk losing customers, but get it right and it’s an excellent tool for building customer loyalty”. Customers are becoming more aware of the fact that companies are tracking their behaviour, and the key is to establish trust between the customer and retailer.
“The latest research from Transactis, a
survey of 1,000 British consumers, found that 95% would cease to do business with a company if it handled their private details irresponsibly, got them wrong, passed them to third parties, failed to keep them
www.a1retailmagazine.com
Rewarding
Loyalty
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