Making a loyalty scheme work for your business
Posted on in Business News
What do consumers want from loyalty schemes? Retailers are continually trying to find the answer as they seek repeat custom.
Results of a survey of 2,741 UK consumers, published this month, suggest that keeping customers more engaged throughout the loyalty life cycle could be key to loyalty schemes.
The survey revealed that 54% of shoppers feel it takes too long to earn rewards in loyalty schemes, with 27% of people having stopped using a loyalty programme as a result of these timings.
The research undertaken by Grass Roots Group also found that customers want - and expect - to be contacted by their loyalty scheme providers, and if they are approached in the right way at the right time, they will become true advocates of the brand. 57% of consumers are happy to be contacted by a loyalty provider once a month, although those aged between 18 to 24 year olds prefer more frequent contact from the retailer.
The study also revealed 33% of respondents expect to receive significant rewards from a loyalty programme within the first month of signing up, while 45% are prepared to wait between one and three months before they are rewarded.
Adam Goran, divisional director of customer engagement at Grass Roots Group, commented: "Customer loyalty schemes hold a lot of value to both brands and their customers.
"Brands have already done the hard work by earning customer loyalty, why then do so many risk losing their customers by not keeping them engaged throughout the entire loyalty lifecycle?"
Grass Roots Group also indicated that there is a distinct difference in terms of expectations between the older and younger generations when it comes to loyalty programmes. Some 12% of over-55s expect to receive a reward within a week of signing up, compared to 4% of 18 to 24-year-olds.
Many retailers simply think setting up a scheme and handing out loyalty cards will encourage repeat business, but by using the data you collect to engage with your customers and giving rewards they appreciate is the key.
Create your own loyalty scheme
However you decide to implement a loyalty and reward schemes within your business, ActSmart have the solution. The Experts cards offer an easy, low cost solution to engage with your audience bringing in new customers as well as encouraging repeat visits to your business.
Click on the link below to find out more:
Experts Cards - create bespoke gift, reward, loyalty, savings and promotional programmes - all on one card