Retailers must transform their loyalty programs from a pay-for-data scheme into something that captures the customer data they need, while still providing the kind of value to a customer that generates real loyalty,
That’s the main conclusion from a new reseach report from RSR Research – Getting Loyalty Programs Back To Loyalty. The report highlights up and coming technologies needed to take best advantage of loyalty programs and the customer data they generate, across the retail enterprise. Most importantly, it provides recommendations for how to transform a loyalty program to take best advantage of this critical corporate asset.
"Having a loyalty program is not enough to drive retail success," says Nikki Baird, managing director and author of the report. "Retailers need to execute their loyalty programs well - by focusing on the customer insights a loyalty program can generate, rather than just on the sales lift they expect to achieve.
“The retailers who are getting the most success out of their loyalty programs today have centered their programs squarely around the objective of capturing and using customer data to create a sense of customer intimacy and retail differentiation. Increased average transaction value is a consequence of customer data analysis, not a result of random price breaks."