An effective way for retailers to improve customer retention is to implement loyalty programs at their stores.
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:
What makes loyalty program good?
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:
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.