Retailers with loyalty programs are 88% more profitable than those without, according to UrbanBuz, a Dubai-based customer loyalty and retention platform.
According to a release from UrbanBuz, the summer is an opportunity for retailers to re-charge their loyalty programs and stay ahead of the curve, implementing special new reward features to boost footfall.
“This summer will provide ample opportunity for shops, salons, spas and cafés to keep customers engaged by structuring offers around schemes such as Dubai Summer Surprises, Ramadan in Dubai, and the World Cup,” Salam Saadeh, Chief Operating Officer of UrbanBuz, said. “We’re encouraging our partners to keep their programs fresh and relevant. Our platform provides them with features that allow them to easily spice things up, and to increase traffic during slow days or periods. The summer is usually the perfect time for retailers to be proactive and build their in-house marketing infrastructure around a powerful and agile loyalty program.”
According to UrbanBuz, there are several proven techniques retailers with loyalty programs can use to stay ahead of the curve.
Here is one of those techniques:
· Focus on dynamic rewarding to ensure that customers who have shown loyalty can benefit accordingly. Tiered rewarding is a feature that helps retailers to treat their customers according to their level of loyalty. It is increasingly recognized that 80% of business volume comes from 20% of customers. Tiered rewarding responds to that trend by offering the best perks and rewards to the most important customers. As outdoor temperatures rise, the summer period is ideally suited to retailers who are providing services and entertainment indoors. This means summer is also a good time to re-attract lapsed customers.
“In a highly competitive landscape it’s important for our partners to check on customers they may have lost touch with, and incentivize them to come back,” Saadeh said. “Targeted promotional emails and offers of bonus points and credit are a good idea. The element of surprise is also powerful: Re-engaging lost customers with surprise points on their birthday, or offering surprise gifts on random dates are a fun and appealing way to drive repeat sales. Loyalty programs work best in partnership with strong social media activity, so elevating brand awareness across online channels should be on the in-house agenda too.”
UrbanBuz officials believe it’s more importance to focus on retaining existing customers, rather than channeling a large portion of funds toward trying to attract new ones.
“It can cost 5-10 times more to acquire a new customer, and on average, a returning customer spends 67% more in store,” the release said. “A successful loyalty program that fully leverages the powerful exposure provided by social media and other online channels should, if run efficiently, provide an ever-growing rate of customer retention.”