Relationships between retailers and brands are no different than people. Retailers attract loyal customers based on the quality of their products, a positive customer experience, and competitive prices. Loyal customers respond by buying more, buying more often, and telling their friends. Like any new romance, such a relationship is exciting and fresh for both parties, but without being properly nurtured can soon become stale. Familiarity breeds, if not contempt, indifference and it often isn’t long before retailers begin to take those customer relationships for granted, while promiscuous customers soon turn their gazes longingly to competing retailers whose offers seem somehow fresh and vital. Throw in consumers’ added sensitivity to price and promotion brought on by ecommerce, mobile price comparisons, and “daily deals” marketing, and it’s easy to see why retail relationships seem like they end just as they’re getting started.
The good news for retailers is that, while changes in technology, consumer behaviour, and market forces will continue to offer challenges to their business models, the fundamental drivers of customer loyalty remain unchanged. This means that loyalty programs will continue to fuel profitable customer relationships. To rekindle the value of your retail loyalty program, we offer these five rules as fuel for the fire