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June 21, 2017

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Why rewards matter in retail

June 21, 2017


Customer reward programs have cascaded down over the years, from airlines and petrol stations, into most supermarkets and now down to local coffee shops, hairdressers and much more. Almost all retailers could benefit from a reward scheme, to help improve customer loyalty and increase footfall, website visits or boost repeat purchases.


With the increasing competition among retailers, any business lacking a reward program is losing out. However, not all reward programs are equal or even that valuable, and customers are quick to spot a scheme that is of little value or used merely as cheap marketing. So, differentiation and consideration are required to offer some extra value to ensure yours stands out among rival options.


Make your scheme stand out


Any plan for a reward scheme needs to consider the cost versus the return to the business, with retailers looking to engage in long-term relationships, influencing shopping behaviour and to better communicate with customers. It should offer a variety of rewards to broaden its appeal, from money off vouchers to cash back and free items on major spends, to unique customer benefits. A scheme can also help identify big spenders, spending patterns and encourage further data analysis that will be of value to any business.

Startup retailers can drive early interest in their store with a reward scheme or gift cards, while more established retailers can use their extensive customer knowledge to tailor the scheme to meet specific business needs. A social media aspect to any reward program can also help spread the word, creating free marketing and advertising.


Reward schemes must stand out against rivals big and small


Local or regional businesses are fighting back against major retailers, and the use of loyalty schemes can help. Local businesses are better placed to offer immediate day-to-day offers, while the use of on-pack promotions can mimic the offers seen in big stores, creating the perception of punching above your weight. Whatever your plans or need for a loyalty scheme, get in touch and see how we can help make the most of your data to create a scheme that boosts your business and provides value to customers.

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