It’s hard to say which business was the first to use reward programmes consistently, although coffee shops, department stores, and travel agencies were undoubtedly among the pioneers. However, as time passed and the technology underlying incentive systems developed, more possibilities and capabilities became accessible. In order to (re)establish a solid relationship with the post-pandemic client, this guide is devoted to investigating how department stores might employ developing incentive schemes to their fullest potential. It also explores next-generation department store loyalty programmes.

What Do Loyalty Programs at Department Stores Entail?

Department store loyalty programmes are sophisticated incentive frameworks designed to raise the department shop’s perceived worth. Department store loyalty programmes are different from mall or retail-focused rewards programmes as a result.

These programmes’ emphasis on top-notch care is one of their distinguishing features. Department store incentive systems largely target big spenders due to their higher lifetime value, in contrast to many retail loyalty programmes that target a general audience.

The Biggest Challenges to Department Stores’ Customer Retention

Department stores encounter a variety of issues that are unique to their sector, and each of these factors affects the kinds of client retention techniques that will work best for them.

The vast range of price points and customer spending levels has forced department stores to develop a more complicated reward concept that can both encourage low-spending customers to visit more frequently while also rewarding high-spending customers with special privileges and high-value incentives.
Department shops frequently lack consumer data and understanding of consumer behaviour. Department shops must develop a way to identify and sign up customers both online and offline through the loyalty programme, as well as bridge the gap between online and offline channels, in order to effectively collect customer information across all channels.

Top Features of Loyalty Programs for Department Stores

Here is a list of next-gen loyalty elements that will set your new (or updated) department store loyalty programme apart from the competition in light of the aforementioned qualities and difficulties:

Electronic Loyalty Cards

The standard plastic card must be replaced with a fully digital one as the first step toward a new or upgraded department store loyalty programme. Why? Members are less likely to forget to bring their card because of this. When a customer can access an e-card on their phone, they are more likely to identify themselves in-store and use coupons.

The simplest way to do this is to provide each client a special barcode or QR code that they can access from their membership page. However, for some people, it might not be worthwhile to open the membership page while waiting to pay.

Making passes out of loyalty cards is an alternative strategy that is both more elegant and useful. Every smartphone comes with Wallet capability as standard, allowing users to keep all of their event passes, vouchers, and membership cards in one convenient location. Make a loyalty card available as a Wallet pass or, alternatively, incorporate the card into your specific loyalty app.

Partnership Loyalty Hub

Antavo, as opposed to Nectar or Plenty, has created a new alliance loyalty programme strategy that is more concentrated on retail sites, such as airports and department stores. Department stores are the programme owners in this instance, providing a uniform framework for tenant brands. The department store retains complete managerial authority and has the ability to assess everything, but tenants are free to design their own offerings and marketing campaigns.

The Coalition Loyalty Hub, a hardware solution created by Antavo, is the brains behind this coalition approach focused on retail. It is made up of a device running an Android-based application with one screen facing the consumer and the other facing the employee behind the counter. The Coalition Loyalty Hub was developed to link participating brands to the loyalty provider, enable consumer enrollment and identification utilising integrated NFC capabilities, and simplify the process of spending and earning points for both customers and staff.

Partner Benefits

When appropriate customer identification technology is in place, department store loyalty programmes have the additional benefit of aiding in the identification of domestic and foreign customers. This enables department stores to build relationships with other businesses, including travel agencies, to develop joint offers for travellers. This is significant because, while department shops should emphasise their own services in their loyalty programme, they should also expand and form alliances to make their reward catalogue even more enticing.

On the other hand, reward programmes may increase domestic buyers’ frequency of purchases. Offer rewards focused on facilitating enjoyable and memorable store visits in order to achieve this. Many department store loyalty programmes do this by providing high-tier members with free or preferred parking spaces, but experiential rewards like appointments at the beauty salon or with a stylist in the suit department can make the perks even more alluring.

With a New Department Store Loyalty Program, Highlight Your Best Goods and Services.

A strong, well-thought-out loyalty programme concept combined with pure-play loyalty technology that can make your thoughts a reality will increase your chances of capturing your audience’s attention and creating a lasting connection with them.

Our specialists are more than delighted to chat with you personally if you want to continue the conversation about the possibilities of department store loyalty programmes and the characteristics that set them apart. So be sure to contact us by scheduling a demo or submitting an RFP.