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Loyalty programs have generally tried to enhance the in-store customer experience. By and large, this is still the case, and the traditional plastic loyalty program card often continues to represent this strategy. It is true that as our society progressively goes digital, many mobile devices are being introduced into the mix. But these digitized customer engagement efforts are still usually tethered to the in-store experience in some fashion.
However, consumers are increasingly doing many of their shopping activities exclusively through a host of online channels, which is opening new avenues of opportunity for loyalty programs. According to a new poll by Cognizant, a global leader in business and technology services, there is a high demand for more loyalty program rewards and personalized offers among UK Internet users.
This presents a prime opportunity to better engage most consumers.
According to the poll, despite the desire for UK Internet users to earn online rewards most do not belong to many online loyalty programs. Only 49% of people claimed to be a member of one or two programs, and only 32% were members of three to five programs.
Of these members, there are a few things brands can do to engage these segments more effectively. The vast majority (almost 80%) of members said their leading desire was to receive online loyalty program points that are directly tied to the amount they spend. Coming in second, automatic discounts were the next most popular online loyalty program reward for about 40% of people.
Furthermore, highly personalized rewards should not be overlooked either. While not as popular as earing points or rewards per pound spent, the Cognizant poll found that almost a third (30%) of all online consumers wanted personalized offers.
Past surveys have also found fast delivery from online orders to be a significant driver of customer engagement as well. In fact, fast delivery is often considered to be just as important as discounts.
The key, therefore, is for brands to offer an online loyalty program that bridges the gap between these rewards.
An online loyalty program that offers a strong value proposition, while combining discounts and personalized offers with fast delivery would provide a powerful competitive advantage for any brand.
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