Similar to autos, there aren’t many differences between one loyalty programme and another from the outside. Loyalty programmes help you keep consumers while cars get you from point A to point B, right? The truth is that the experience is different because of the little things. While some people want a quick sports automobile, others require a dependable family vehicle to transport their children to school. In a similar spirit, brand-focused incentive programmes and retail loyalty programmes have quite different objectives.
Moreover, the epidemic has significantly altered store culture and customer behaviour. Retailers now need to establish a firm footing in the new customer reality. Implementing a rewards programme specifically designed for the retail business model is one way they’ve done that. Unquestionably, a solid loyalty programme may help retailers grow stronger than ever by acting as a major differentiation. According to Gartner’s analysis, 71% of retail companies use membership programmes, which suggests that brands are aware of this.
A Retail Loyalty Program: What Is It?
A reward programme created specifically to address the industry-specific issues that most merchants confront is a retail loyalty programme. Customers have access to a big catalogue of products from numerous companies, which suggests that this market could see high buy frequency. Retailers need to understand that in the post-Covid era, having an online presence is now necessary in addition to brick-and-mortar locations in order to remain competitive. especially given that Forrester predicts that by 2023, online retail sales will account for 27% of all retail sales. Retail loyalty programmes are unique in that they require simultaneous management of their technology, strategy, and corresponding hardware in order to obtain a comprehensive picture of their customers.
How Differ From Brand Loyalty Programs Are Retail Reward Programs?
Retailers confront more intense competition and increasing buying frequency. This is so because shoppers in retail settings typically have bigger basket values. Transaction-focused loyalty schemes are also common in retail. These programmes’ benefits, such free delivery or longer return policies, typically facilitate the purchasing process.
While brands want to engage customers and promote word-of-mouth. By nature, they set themselves apart, but they still need to promote themselves. As a result, they frequently concentrate more on fostering advocacy. Brand loyalty initiatives foster sustained engagement. To create buzz and good word-of-mouth, brands want their consumers to interact with them on social media and consume their material.
The Best Opportunities for Retailers to Retain and Gain Customers
Retailers must do a great job with their rewards programme as the competition is becoming tougher. People want to be connected and have a meaningful relationship with their preferred store instead of merely getting fantastic bargains when they make purchases because emotional loyalty is increasing.
Loyalty programmes can be a fantastic incentive to entice clients into the online realm and reawaken lapsed brand devotees as businesses continue to migrate their business to the online world. Members will be more likely to try the new additions if you send them an email presenting the webshop’s new features, inviting them on a treasure hunt, or awarding points for online purchases.
Major Contributing Factor in Promoting Loyalty: Personalization
Giving clients a more individualised experience while they purchase in-store greatly increases the emotional connection with them. A top-line growth opportunity of more than $70 billion per year would be created, according to BCG, by shifting 25% of mass promotion spending to targeted offers. One option to offer a unique experience is to make recommendations based on loyalty programme members’ prior purchases and catered to their preferences. It comes as no surprise that personalisation was selected by 29.3% of respondents as their top investment for the upcoming years in Antavo’s Global Customer Loyalty Report 2022.
Provide an online shopping experience with social retail
Retailers should capitalise on the increasing trend of social retail. Using social media to interact with customers and do business through both physical and digital channels is known as this approach. Social retail makes an effort to imitate through technology the social interactions present in real malls and stores. eCommerce solutions enable social selling, allowing local shops to reach more customers at a time when people are ever more dependent on their gadgets. Customer loyalty programmes have the power to persuade customers to develop a habit of utilising social retail by offering rewards and benefits.
Retail’s New Era: Redefining the Physical Space
The retail sector is undergoing change on a constant basis. Every shift, though, presents a chance for those who dare to take the lead and respond promptly. Today, a sizable portion of consumers have experienced the ease of online or app-based shopping and have had their purchases delivered directly to their door.
The retail industry needs to be reimagined if it wants to remain relevant. Brick-and-mortar stores should adopt the concept of configurable stores; rather than having a static shopping space, the stores should be dynamically reconfigured and updated to meet the needs of a constantly shifting clientele.
Maintaining Control (room)
In the age of touchless retail, physical and digital showrooms can add to a memorable in-store experience, regardless of whether a client wants to visit their favourite outlet or prefers to stay at home. The first involves converting the property into a location where customers may test the goods.
Customers can interact with or test out products at physical stores that serve as showrooms. In this instance, value is created through engagement: clients have a good time, go home, and place an online order for the goods. If customers need to schedule an appointment to see the showroom, for instance, retailers might grant members of their loyalty programmes benefits like a quick pass. Alternately, companies might offer clients discounts based on their tier.
A Whole New Layer of Customer Loyalty Can Be Found
A retailer’s standing in the market will always be bolstered by a well-designed loyalty programme. Customer retention in retail is one of Antavo’s specialties. So, if you require assistance, we would be more than pleased to provide it. Please feel free to schedule a demo or invite us to your RFP so we can demonstrate how our reward platform might benefit your company.
Don’t forget to download Antavo’s Global Customer Loyalty Report 2022, a comprehensive report that provides you with guidance as you traverse the world of next-generation loyalty programmes by showcasing a number of statistics as well as upcoming market trends.