26 Dec 2014, 13:51 — 6 min read
Traditionally, the neighborhood store used to be the only place for your day-to-day requirements. After many years of doing business with you, the store-keeper would invariably end up being a close acquaintance, one who knew your requirements, provided discounts and personalized them for you. In turn, you were his customer for life. This was the conventional state of consumer loyalty we were accustomed to while growing-up. However, a lot has changed since then.
With evolving retail formats such as hypermarkets, supermarkets, and specialty stores; in-store and online options galore, the erstwhile concept of one-to-one engagement has blurred. Moreover, shoppers of this day and age are well informed, with real-time access to instant updates and offers. Hence, they seek 'value' as the primary attribute of every purchase decision made.
A loyalty program should ideally comprehend the shopping attributes of consumers based on inferences, derived from well-defined purchase patterns, noticed over a period of time. Often, those on a multi-brand loyalty program that has partners spread across shopping categories are able to do this better. They are able to observe consumer spends throughout an assortment of segments such as groceries, electronics, consumer durable goods, apparel, home décor, fuel, telecom and travel, and draw the most scientific and logical conclusion as to what will be most fitting for customers. To underscore the role of loyalty program is to highlight its inherent ability to 'give something in return' by means of either instant or gradual gratification. In a nutshell, the idea is to ensure that the consumers earn a compelling value for their everyday shopping. Quite literally, make every consumer transaction a rewarding experience.
For that your loyalty program has to rise to the standards expected by the customers. And that’s only possible when it has the five critical elements:
Current times call for a new standard for loyalty programs that looks out to empower its customers to cash in points in other segments of entertainment and dining beyond the customary shopping basket. For that matter, loyalty points have graduated to the extent that they are recognized as a credible source of donation for charitable causes as well. Clearly, the way customers are using loyalty programs is breaking all stereotypes. You too need to look at stretching the limits of what your loyalty program can do.
Article Source: STOrai Magazine
How Does Tech Impact Offline Retail?
7 Dec 2022, 13:18
20 Jul 2022, 11:38
10 Jun 2017, 07:45
Most read this week
Please login or register to join the discussion