90% of best-in-class retailers have loyalty schemes
Best-in-class companies are 90% more likely than the industry average to operate loyalty card programmes, according to a research report by Aberdeen Group, sponsored by loyalty marketing firm Access Development.
The report, entitled 'Cutting edge customer loyalty: Retail best practices for acquiring, retaining and engaging customers', noted that companies that have a loyalty solution in place, compared to those without a loyalty solution, are performing at significantly higher levels across a number of important metrics, including a 53% higher compound growth rate.
According to Aberdeen Group senior analyst and chief author of the report, Sahir Anand, there are several critical factors necessary in the design of an effective loyalty programmes.The top four factors are:
- Capturing purchase data at the point of service;
- Delivering relevant offers based on purchase history;
- Using automated systems to avoid human errors;
- Keeping implementation and redemption simple.
According to Casey Kleinman, president for Access Development, the company has traditionally employed these best practices and others to help drive increased business for its merchant partners through a symbiotic loyalty platform.
As a result, the company's clients have reported results similar to those observed by the best-in-class companies identified by the Aberdeen report.
Among the brands participating in the company's loyalty merchant network are Best Western, AMC Theatres, 1-800-Flowers, SeaWorld, and some 250,000 other restaurants and retailers across the US.
Kleinman concluded: "This kind of loyalty programme helps to alleviate the financial burden on consumers while helping businesses sustain and grow revenue in this challenging time."