Our tips to increase customers’ engagement in a loyalty programme (Part 1)

12 November 2015

In today’s world of intense communication, for example via a constant flow of push notifications, customers become more and more careful before getting engaged in a loyalty programme. Before gaining their trust, any loyalty programme provider needs to prove the value and differentiation they bring compared to other players. 

Here is the first part of our tips to succeed in engaging customers in a loyalty programme:

1. Personalised communication and offers

Research conducted by SAS and Retail Analyst Conlumino (http://www.retail-systems.com/rs/whitepapers/100913conlumino_sas_report.pdf) tells us that:

  • More than one third of the consumers enrolled in a loyalty scheme admitted that receiving marketing material from a retailer make them more likely to purchase from them.
  • Half of these consumers would be likely to purchase at a retailer if it provides truly personalized offers.

Designing truly personalised offers and communication means the following for a loyalty provider:

  • Learn who your customers are: the best way to engage with them is to show that you know who they are.
  • Learn what your customers want: by maximizing the use of data you have and analysing it, you will collect insights out of each interaction you had with your customers, leading to know what they want.
  • Learn to hear the voice of the customer in order to increase the chances of designing offers and communication that will be perceived positively to your customers.

Loyalty providers will deliver a great value proposition when they focus on the customers’ point of view.

2. Communicating at the right time

A report from Yankee group (http://web.yankeegroup.com/rs/yankeegroup/images/YG_2014Predictions.pdf)mentions that more than half of the consumers use shopping mobile apps.

Everybody carry their smart phones with them all day long. Customers seem to be more receptive and motivated when getting promotions when they are actually shopping in stores, rather than when they’re at home relaxing in their sofa.

Loyalty providers can maximise the impact of their communication, offers and promotional messages by using location-based communication:

  • Learn how to integrate beacons technology in your loyalty strategy
  • Move from “Web-to-store” to “Street-to-store” by pushing relevant notifications to nearby customers on their mobile in real-time when they approach beacons in retail stores (or even in banking agencies).
  • Send messages that can be targeted and carry offers, inform about promotions, events or news.

Loyalty providers will communicate with customers at the right time by implementing Location-based proximity enabled by technology such as beacons.

The second part of these tips is out, click here