secure, or otherwise abused their trust,” explains Green. “However, the research also found that 83% of respondents were more inclined to keep buying from a firm, rather than a competitor, if it deals with their personal details responsibly and employs the information to provide a good service.”
Research has found that customers who belong to a loyalty system will not necessarily remain loyal to a brand, so retailers need to work hard to ensure that customers who sign up to loyalty schemes are being
offered the right incentives to make sure the system encourages repeat custom. Every year, The Logic Group commissions Ipsos MORI to conduct research into the state and nature of consumer loyalty in Britain, and latest research found that a range of factors motivate a loyal customer.
“Being a loyalty scheme member doesn’t necessarily engender loyalty. Value for money, trust, lifestyle choices and visit frequencies will all play their part,” explains Jon Worley, Principal Consultant, Customer Loyalty Management at The Logic Group. “The research suggests that loyalty schemes in themselves must work harder to understand consumers’ motivations for repeat spending and communicate with their members accordingly with relevant messaging.”
Getting it right means getting to know your customers, making sure that you know exactly what they want from a loyalty scheme, and ensuring that this is delivered in a manner that suits the customer’s lifestyle. Worley believes that the current crop of loyalty systems have adapted well to changing consumer habits by “finding new and exciting ways to deliver them whether that be using mobile applications, targeted coupons or short term loyalty promotions.”
Utilising the data provided by customers can help a retailer to plan for the future. “At the most basic level, retailers use the customer data to understand the demographics of their customer base – the basics of age, gender, household composition and address,” explains Laurence Stock, Director at Aimia, who are a global leader in loyalty management. “The combination of sales and loyalty data can be used to optimise product ranges,
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“Getting it right means getting to know your customers, making sure that you know exactly what they want from a loyalty scheme, and make sure that this is delivered in a manner that suits the customer’s lifestyle.” ‐ Jon Worley, Principal Consultant, Customer Loyalty Management at The Logic Group.
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