Driving customer loyalty with proven strategies
February 13, 2013

Loyalty and gift-card programs have become essential components of retail strategies, as the modern consumer continues to look for the best deals and strongest brands. New technology, especially mobile devices, has further bolstered loyalty application growth over the past several years, enabling merchants to create progressive strategies to bolster revenues.

Repeat customers have been shown to be much more profitable than new ones, as some studies indicate that it costs seven times as much to acquire a new patron than it does to keep current customers. Retailers should consider launching mobile payments capabilities and integrating loyalty programs to provide consumers with the most engaging and convenient experiences.

Simple steps toward loyalty
Business 2 Community recently reported that loyalty card apps that use smartphones and tablets as a platform drive customer loyalty while providing retailers with crucial data regarding trends that can help improve strategies.

The source suggested several components and characteristics that are shared among the most successful loyalty programs. According to the news provider, loyalty programs need to be meaningful to the user. Programs should move beyond simple purchases-yield-rewards structures. Instead, merchants should use the information cultivated from payment processing and loyalty platforms to discover what their customers want, and tailer programs accordingly.

This strategy, Business 2 Community noted, will make the programs more intelligent, as loyalty initiatives will not be copy-and-paste processes, but rather highly personalized experiences for participants. The news provider explained that loyalty programs should, by best practice, be engaging, which can also be accomplished through the use of mobile and online platforms.

Finally, the source asserted that such initiatives should maximize convenience for customers through ease of use, and that structures be implemented to measure the efficacy of the programs. Retailers that take a comprehensive approach to these initiatives will see the highest returns on investment.

Driving loyalty beyond the norm
Other reports indicate that customers are most likely to participate in loyalty programs that are structured to provide continued engagement and increased rewards as time goes on. Merchants can use tiered loyalty programs, offering the best benefits to long-standing customers.

By using integrated payment systems, retailers create a streamlined customer experience that leads to the highest levels of loyalty. 

Nexus: G-WEBCD4