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BizReport : Loyalty Marketing : August 10, 2015

Loyalty programs a top priority for 46% of retailers

Retailers are prioritizing loyalty programs and are increasing 2015 budgets accordingly, reports Boston Retail Partners in a new special report.

by Helen Leggatt

Boston Retail Partners' report, 'Loyalty Programs - Rewarding the Customer Experience', reveals that 62% of retailers increased their 2015 budgets to improve loyalty programs. Among 46% of the retailers studied, loyalty programs were a top priority.

"One of the best ways to know the customer, reach the customer and deliver the right shopping experience is through a loyalty program," said Ken Morris, principal, Boston Retail Partners. "Offering customers exclusive perks, relevant incentives and personalized rewards encourages them to identify themselves while shopping and allows the retailer to further tailor the experience."

However, while almost half (47%) increased their mobile marketing budgets this year, nearly three-quarters (73%) still do not offer mobile access to their loyalty programs. Things are moving forward, with 56% intending to offer more mobile loyalty capabilities in the coming two years. Such capabilities include point tracking, reward redemption, alerting customers when they are near a reward threshold and offering special promotions.

The Boston Retail Partners report also recommends that retailers go "beyond the traditional "earn points and receive rewards" structure to play a key role in enabling the unified commerce experience and reinforcing customer relationships". Suggested enhanced services and rewards include gamification to engage customers and encourage social interaction, real-time customer identification in-store to enable guided selling, customized rewards based on customer preferences and mobile tracking and redemption of rewards.

Image via Shutterstock

Tags: loyalty program, marketing, mobile

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