The customers you're missing
As popular as loyalty programs are, you may be missing out on customers without even knowing it.
Nearly all retail chains – both physical and online – have their own loyalty program. Designed to increase brand loyalty by giving customers exclusive deals, discounts, and sometimes, free stuff, it’s also a way to snag detailed customer data on purchasing behavior and changing trends.
The Top 3 Winners
Last month, Target announced an expansion of Target Circle, its loyalty program (currently in beta). Top perks: 1% cash back on subsequent visits, a vote on local community charities to receive company donations, and personalized offers.
Starbucks has been the clear winner in the loyalty program game. The famous coffee chain clearly put a lot of thought into a great UX by keeping things in-app without the need for physical cards, payments, or excessive marketing emails.
Plus, it gives customers stuff they actually want – free drinks!
Amazon Prime is THE most famous loyalty membership program. It tapped into one of every online shopper’s greatest desires: FREE shipping. People want stuff, they want it now, and they want to pay as little as possible for it.
Loyalty programs aren’t perfect, though, and it’s crucial for retail companies to understand the downside they may be totally unaware of.
These are the top 4 that come to mind:
Customers forget about it in the day-to-day of life
Cumbersome: too many steps to take to join or track benefits
Too difficult to redeem with complicated Terms and Conditions
Too many programs feel overwhelming: shoppers don’t want 50 different loyalty cards from 50 different stores
And the most challenging of all: the non-loyalty customers.
Average Joe Shopper randomly walks into a hardware store 1 time and makes 1 purchase. How will you get him to come back a 2nd time? He isn’t a member of the loyalty program, so what can you do to get his repeat business?
And don’t forget about the greenback.
When Anthony pays with cash, how can you engage him if you can’t identify him?
These are the customers you’re missing. National chains like Target and Walmart have a wealth of data on their loyalty members, but little on the millions of shoppers who aren’t members and don’t care to be.
That’s where technology like ReceetMe’s platform comes in. Digital receipts allow retailers to connect with their customers and authentically engage them, regardless of payment method. It’s about an enhanced and totally optimized retail experience. Smart companies understand the power of returns and exchanges and use it as an opportunity to re-engage the consumer.
Knowing what you don’t know…is good to know.