The Week in Retail: Do Loyalty Programs Really Work?

For most retailers 80% of their sales come from the top 20% of their customers and its important that those customers are treated with rewards. 62% of retailers are planning to allocate more funds toward their loyalty programs this year, according to a new report from Boston Retail Partners. (Luxury Daily)

47% of retailers do not currently offer a loyalty program to their consumers, missing out on potential sales. The Boston Retail Partners’ “Loyalty – Rewarding the Customer Experience” 2015 report includes key findings such as:

  • Loyalty programs are a top priority for 46% of retailers
  • 883% more retailers plan to have the ability to identify customers when they walk in the store via their smartphones in five years
  • 181% more retailers plan to use gamification within loyalty programs in five years
  • 56% of retailers plan to participate in mobile loyalty applications in five years

The report can be downloaded for free here. (Boston Retail Partners)

There’s a right way and a wrong way to implement loyalty programs. Signing up for a loyalty program should be easy, customers should be rewarded for what they buy, not just how many times they visit and rewards should be given to the customer based on their preferred method of receiving (i.e. text message, email). Lot of rules and limited rewards that expire can drive away users from engaging with a loyalty program. Staff should also be engaged and understand the value of loyalty in order for a loyalty program will never reach its full potential. (Retail Customer Experience)

73% of retailers still do not offer mobile access to their loyalty programs, according to a new report from Boston Retail Partners. Some of the challenges retailers face that are making it difficult to integrate mobile with loyalty include building the infrastructure and developing the skills required to manage multiple mobile interactions. Another challenge is properly balancing customer experience with privacy concerns. (Mobile Commerce Daily)

Feature Photo Source: Retail Hero