Retain online customers with dynamic loyalty programs
December 17, 2013

Gift card programs and loyalty programs are more important for small and midsized retailers than ever before. The growth of both the e-commerce industry and the marketing strategy of enticing online shoppers with heavily discounted deals has made it much harder for stores to set themselves apart from competitors.

According to the Los Angeles Times, this year's Cyber Monday demonstrated the fact that bargain hunting and online shopping now represent central elements of the overall retail industry. While this is largely good news for companies that are able to accept credit card payments through digital channels, many smaller brands may have a harder time retaining customers for longer periods of time.

Digital marketing expert Allysia Lowe wrote in Business 2 Community about the importance of keeping shoppers engaged with unique incentives that encourage greater brand loyalty.

"Amidst all of this spending, the concept of brand loyalty can become somewhat muddled," Lowe wrote. "What incentive does a consumer have to stay loyal to brand X when they can get a similar product for a significantly discounted price?"

Offering consumers the chance to earn rewards for making purchases both online and in brick-and-mortar stores may provide a much-needed boost to long-term retention rates.

Nexus: G-WEBCD1