The importance of crafting engaging loyalty programs
February 01, 2013

Brand loyalty is an essential component of every successful business, as several studies show that repeat customers are far bigger drivers of revenue than new clients. Merchants should consider creating loyalty and gift card programs that are unique and engaging, as this will drive stronger profits going into the first months of 2013.

Business 2 Community recently reported that many merchants take a half-hearted approach to loyalty programs, directly impacting engagement among consumers. New technology has created more savvy shoppers than ever before, and consumers are often quick to detect when a program from a merchant is irrelevant or cursory.

The source explained that the strongest brands will be those that empower patrons, giving them the feeling that they have a direct impact on the retailer's values and programs. As a result, loyalty programs that are purely superficial will drive customers away, leading to poorer reputations and subsequent lower revenues.

According to the news provider, loyalty programs are best used when the retailer works to build an emotional connection between consumers and the brand. The most successful businesses garner such a strong relationship with clients that word-of-mouth advertising can often decrease the need for expensive marketing strategies.

Business 2 Community asserted that loyalty programs cannot be limited to marketing strategy, but should instead be a component of overall values and mission statements. Further, these initiatives should be as intuitive and interactive as possible to yield the strongest returns on investment.

Merchants can adopt integrated payment systems to create the most convenient process for mobile device users in target markets. As more consumers prefer to use their smartphones and tablets for a broad range of shopping activities, including price comparisons and point of sale transactions. Streamlined systems will enable the most convenient process of payment processing, loyalty program participation and more.

Nexus: G-WEBCD2