Loyalty programs have been a boon for all sorts of businesses. But they need to be optimized in order to maximize value. In this week’s blog post, we’ll walk through some ways to improve the loyalty program at your retail shop, grocery store, restaurant or hospitality business.
You may be asking why all the fuss over loyalty programs? Well, it turns out that they are one of the best ways to retain customers and we already know that it costs less to keep an existing customer than to find a new one. Beyond that, research from the accounting and consulting firm Accenture found that members of loyalty programs generate 12 to 18 percent greater revenue growth per year than non-members.
What sorts of triggers are most important to loyalty club members? The IT firm Comarch conducted a survey recently and found that financial triggers were most important to loyalty members. Here’s how the results came out:
- 86 percent of survey respondents said offers and promotions were quite important.
- 81 percent of survey respondents said the quality and quantity of items in a rewards shop were quite important.
- 81 percent of survey respondents said the opportunity to collect points was quite important.
- 61 percent of survey respondents said sales previews and pre-sales were quite important.
- 50 percent of survey respondents said being part of the brand’s product development was quite important.
- 47 percent of survey respondents said taking part in competitions and lotteries quite important.
- 33 percent of survey respondents said engagement, digital achievements and goals were quite important.
Now that we have a grasp on what consumers find important in a loyalty program, how do we communicate most effectively with members? Comarch asked about communications preferences. Here’s how those results came out:
- 34 percent prefer to receive coupons via email/web and then use them digitally
- 30 percent prefer to receive coupons via snail mail/postal
- 19 percent prefer to receive coupons via email/web and then print them at home
- 15 percent prefer to receive coupons via a smartphone app
- 2 percent prefer to receive coupons via newspapers and magazines
Lastly, the Comarch survey found that loyalty members remain concerned with privacy and that the older the customer, the higher they prized privacy. Most important was the ability to know what the company planned to do with the customer’s personal information. With privacy concerns on the rise, it only makes sense to follow guidelines for GDPR if you haven’t already.
Interested in learning how a point of sale system can help you boost sales through a loyalty program? Contact us today for a demonstration.