An effective way for retailers to improve customer retention is to implement loyalty programs at their stores. 

effectiveness-loyalty
Satisfied loyalty programme members will make an impact on sales. In a typical three-month period, loyalty program members spend on average $42.33 more with traditional retailers (those with physical stores) than shoppers not in a loyalty program, and program members rate their experiences higher than non members across most industries. (Forrester research) We asked customers: “If the product is more or less the same in two different stores, would you prefer to go to the store with the loyalty card system ?” We got the following results:

loyalty-systemWhat makes loyalty program good?
loyalty-members
We asked potential users about whether incremental loyalty points would incentivize them to go to a store.
E.g. you go to a store to make a purchase and you receive 2% loyalty points on your bill. Next time you go there it will be 3% and that grows to 4% etc. Would this be a reason for you to come back more often?


We have also done research on what the customer misses the most in the offline store versus an online store which concluded that the offline stores need a better online presence in the format of an omnichannel with a related universal loyalty card.


About the authors:

Jelmer

Jelmer Ten Wolde

[caption id="attachment_22331" align="aligncenter" width="400"]George George Jreig

 

George Jreig and Jelmer Ten Wolde both completed a Masters in Innovation and Entrepreneurship at Antwerp Management School. They are currently working together on developing a universal cash back loyalty program and have done extensive research in the field of loyalty. They have a partnership with open loyalty and are working together on developing products.

 

Sources:

Bond. (2016). The 2016 Bond Loyalty Report.

Collinson Latitude . (2016). Loyalty Commerce in a Digital Age.

Crowd Twist. (2016). Battle for the Sexes: The 2016 CrowdTwist Gender Loyalty Report.

Forrester. (2017). How Consumers Really Feel About Loyalty Programs.

Guinn, J. 5 Tips for Successful Restaurant Loyalty Programs That Target Millennials.

ICLP. (2016). Infographic and Report:Understanding The Future of Loyalty in Retail.

Nielsen. (2016). Get With The Program Card-carrying Consumer Perspectives On Retail Loyalty Program Participation and Perks.

Points. (2016). The State of Mobile Wallet Loyalty and Engagement in 2016.

Urban Airship. The State of Mobile Wallet Marketing Report The Opportunity For Brands.

Vantiv. (2016). ShopTalk | Who’s cashing in on rewards programs? (Infographic).

 

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