Loyalty programs have always been a way for brands to persuade consumers to avoid the competition and keep customer experiences positive. But the in the face of rapidly evolving technologies and recent attitude shifts in customer expectations, many brands are either falling behind or simply not taking advantage of the enormous opportunities ahead.
Along with technology, customer expectations and habits are also rapidly changing. And it is becoming clear that effective customer engagement now requires a more personalized and instantaneous approach.
A recent retail consumer sentiment survey conducted by Merkle, a prominent technology driven and data centric customer relationship management firm, discovered that mobile device screens are now valuable “real estate” that brands need to seize.
During the 2014 holiday survey, more than two thirds (67%) of adults under 50 stated that they would prefer to rely solely on their smartphone to purchase items. Almost half (46%) said they would also enjoy customized, real-time offers sent to their phone while shopping.
Merkle also found that more than 80% of consumers felt that a loyalty program was not a factor in determining where they shopped. This result was based on consumer engagement with the more traditional, location specific, and generic price-based loyalty programs that brands have habitually implemented.
For a loyalty program to be successful going forward, brands need to begin delivering the type of program that matches the consumer’s habits and needs. As customer expectations evolve, loyalty programs must evolve as well. And mobile devices hold the key to personalizing the digital
interactions consumers desire.
“We have reached the point where delivering personalization does not just refer to content, but will also need to reflect time and location,” Paul Schottmiller, senior vice president, strategy, retail and consumer goods at Merkle, said in a release. “Consumers’ expectations are high and retailers have never had more options for using technology to deliver differentiated customer experiences.”
The survey also found that brands that have already implement personalized, onmichannel, and real-time mobile loyalty strategies have seen a tenfold increase in revenues generated among program members as opposed to non-members.
Loyalty programs still present a massive opportunity for brands to remain competitive. And provided they are implemented correctly, loyalty programs may be even more valuable than ever.