58% of affluent consumers expect retailers to use data insights to build a more valuable, customer-centric relationship
Global loyalty marketing agency, ICLP (A Collinson Group Company) reveals thatthe desire for innovative loyalty programmes is high on the agenda for consumers when considering their preferred retailers. This is particularly true of Millennials, with 46% saying they would be encouraged to spend with a brand that has a loyalty programme. This compares with 39% of those in Generation X, and 40% of Baby Boomers, demonstrating that while there is plenty of appetite for loyalty programmes, brands must do more in order to continue to engage audiences. The study, commissioned by ICLP’s parent company Collinson Group, examined affluent consumers’ attitudes towards brand loyalty.
Anurag Saxena, General Manager at ICLP: “Retail continues to evolve at a rapid rate, with brands both online and offline battling for loyalty in an increasingly crowded space. Gone are the days when a loyalty card alone would encourage consumers to choose a particular retailer above all others – the stakes are much higher now. Effective loyalty programmes need to recognise and cater to what customers value, such as being greeted by name when entering a store, personalised offers or VIP events, in order to drive brand engagement and devotion.”
The survey found that while consumer interest in loyalty programmes is high, as 42% of shoppers stated they would be encouraged to shop more with a brand if it had a loyalty programme, retailers need to look beyond traditional points-based programmes to find ways to inspire higher or more frequent spend from shoppers.
· 58% of affluent consumers expect offers that are personalised and relevant to them when they walk into a store, showing that many expect retailers to use data insights to create a more valuable, customer-centric relationship
· 53% of all shoppers would be encouraged to shop more frequently or spend more with a brand if they received discounts on future purchases
· 42% of Indian shoppers said that they would be more loyal to brands that offer a stylist to advise them on purchases, and 39% claim suggestions based on past purchases drive their loyalty
· 42% of consumers are likely to spend more in a retail store where they are greeted by name and made to feel like a valued customer
· Companies that are able to send receipts via email get more repeat visits from consumers, as this is something 39% of those questioned stated would lead them to shop more frequently with a retailer
· Increasingly, consumers will choose retailers that offer money-can’t-buy experiences (16%) or invitations to special VIP events (21%) over those that offer generic, points-based rewards. This shows the need for loyalty programmes that offer unique and exclusive experiences
Anurag Saxena adds: “Nowadays, personal, unique rewards are more important as loyalty drivers than price alone. To win in this competitive retail landscape, brands need to focus on creating loyalty programmes that generate insight and enable retailers to entice customers back with relevant offers – encouraging them to spend and shop more frequently. From money-can’t-buy experiences to personal greetings and a strong social media presence, customers want to ensure their hard-earned cash is spent with brands that are prepared to invest in a meaningful and personal relationship.”