The fact is that 94 percent of consumers belong to at least one loyalty program, just under half are actually active users and just a quarter see companies effectively analyzing their needs and sending them relevant offers (GI Insight, Loyalty Frequency: Who’s Tuning In?). It’s clear that retailers aren’t winning here. But then, if consumers aren’t receiving relevant offers, let’s face it, nobody is.
So maybe it’s understandable that the percentage of active loyalty consumers isn’t as high as it could be. And what if you could change that as a retailer? The rewards are enormous. But the approach has to be three-fold:
- Listening (first party data capture and analysis)
- Understanding (insight)
- Rewarding customers in a meaningful way (hyper-personalization)
But very often retailers need a bottom-up business case to show that they could in fact, achieve a lot more by offering customers relevant rewards. The question is not only about listening and monitoring the data but reviewing it on a continuous basis. The impact of the right business process and customer experience around loyalty is what I’m really referring to here: A loyalty relationship that benefits the consumer and retailer alike.
Now we’re talking.
Let’s be fair, if I knew as a customer that I was getting exactly what I needed from a retailer relationship, I would sign up in a heartbeat. And I’d use the loyalty program actively. Wouldn’t you?
But very often consumers know that’s not happening, and so retailers have the following scenarios to deal with:
- Active versus inactive users
- Consumers who prefer to shop anonymously
From a consumer perspective, both of the above situations are easy to understand.
Related: The best retail loyalty programs turn customer activity data into powerful personalization