What's a retail loyalty programme and why you need one

Retail loyalty programmes are reward programmes that, as their name suggests, reward loyal customers for their business.

These programmes come with various perks and are usually up to the discretion of the retailers. Discounts and membership points are some of the most common perks retailers tend to offer with their programmes.

Loyalty programmes are an excellent way for retailers to retain loyal customers while keeping them happy with the brand. A 2017 Loyalty Report revealed that 66% of buyers modify their spending to maximise loyalty benefits and get the most out of the programme.

Brands like Starbucks, Sephora, and Ikea, have all grown their customer base through loyalty programmes.

Starbucks Rewards, for example, gives members access to in-store refills on coffee and tea. Customers also get unique giveaways and discounts on birthdays and other special occasions.

Sephora, the beauty brand owned by LVMH, holds private sales and beauty workshops for members depending on their tiers in the loyalty programme.

The 2021-2022 Loyalty Report revealed that smartphone applications are an area to invest in when trying to scale up a loyalty programme. After all, as more people opt for cashless payments worldwide, it’s likely that they’ll rely on their smartphones more.

If you want to increase your customer base and loyalty, here are some things to consider when shaping up your loyalty programme:

#1 - Create secure apps and products

Before creating one, it’s essential to ensure all tech products and services that customers will be interacting with are up to par to provide the best experience.

Customers are always concerned about apps that could threaten their privacy. Customers are also likely to complain about terrible service or complicated user interfaces on digital products.

In 2019, it was reported that reward programmes are an absolute goldmine for hackers.

In an interview with NBC News BETTER, a former cybercriminal turned digital security consultant revealed that loyalty rewards are easy to access. Because victims rarely check their accounts, criminals steal these rewards without worrying about the consequences.

#2 - Create a programme with a purpose

Beauty brands like Innisfree, Kiehl’s, and Aesop create loyalty programmes that revolve around sustainability, enhancing the customer’s experience.

For Innisfree, customers earn points for every empty product they return. These points can then be used to offset future purchases in-store.

By creating a loyalty programme around sustainability, Innisfree helps its customers feel good about their purchases, which could lead to customers sharing their experiences with the people around them or through social media.

#3 - Consider multi-channel customer service

Businesses should consider adopting multi-channel customer service platforms through social media, chatbots, or email to ensure the best experience.

For companies that can afford it, having a live help desk could help handle the amount of customer support required. Smaller businesses can turn to automated chatbots that quickly distill answers to frequently asked questions.

#4 - Focus on your customers

As business owners, it’s always tempting to compare your business to others and copy what they’re doing. It might even be tempting to copy their loyalty programmes.

However, it’s more important to seek feedback from your customers to see what they want and look for ways to improve your service there.

Combining these tips together with a killer marketing strategy could help you build an amazing retail loyalty program for your business.

Lastly, keeping up-to-date on the latest trends in marketing for loyalty could also be a great way to stay relevant.