02 22 2017

How to Profit from Retail Marketing Loyalty Programs

Retail marketing loyalty programs can leave the consumer confused.

retail marketing

retail marketing

One of the main goals of establishing a retail marketing loyalty program is to develop a better relationship between you and your customers and turn them into loyal customers to your brand.

Statistics show that many consumers don’t utilize the rewards programs.  62% of consumers join loyalty programs but only 27% feel they received a reward that made them feel valued.

Here are four ways to maximize the benefits from retail marketing loyalty programs.

  • Make it easy for consumers to redeem rewards: Studies show that only one third of reward points are used each year. Consumers find the hassle of redeeming rewards isn’t worth it. It’s important to listen to customer feedback and make your rewards valuable to the consumer and easier to redeem.
  • Collect customer information for future marketing: Studies show that 85% of consumers who use loyalty programs haven’t heard from the companies since signing up. You’ve got to utilize the opportunity to market to your loyalty program members. When the customer signs up, ask them to opt-in to receive additional marketing incentives as a VIP customer. Use SMS messaging and email marketing to send valuable coupons to them as a member of your loyalty program.
  • Make sure they understand how to use the rewards: 81% of consumers surveyed don’t understand how to use or redeem their rewards. In order to keep them coming back, they first need to understand the benefits of coming back. Take the necessary time to educate the consumers. Include the benefits of your loyalty program with your regular marketing. If they receive more points purchasing specific items, make sure those items are displayed with signs indicating so.
  • Offer something useful: Only 36% of consumers enrolled in loyalty programs said they have received something that will keep them coming back. Offer points for items that bring value to the consumer. Consumers prefer to save money, offering discounts are more useful in hard economic times than offering a free CD player. Listen to customer feedback to help create a program that benefits the customer so they will find value in bringing their business to you.

Loyalty programs can be a great addition to your retail marketing plan if they are maximized for optimal benefits for both you and the consumer. The most important fact is that customers want loyalty programs offering something useful to them.

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