Study reports on the state of retail loyalty
In general, most retailers have now adopted centralised cross-channel loyalty platforms and are reporting significant benefits, according to the Next Generation Customer Loyalty report from the Retail and Banking arm of research firm Aberdeen Group.
According to the report, benefits that retailers are already reporting include up to 20% increases in customer retention rates (compared to a market-wide average of 8%), and up to 15% increases in customer reactivation rates (compared to 4%).
"A centralised loyalty platform encompasses consumer insights, offer creation, offer redemption, and performance reporting," explained Chris Cunnane, senior research associate for Aberdeen Group. "This tool allows the retailer to aggregate all loyalty information across all channels of operation, with a single view of the customer and their purchase and interaction behaviour. That information can then be used to create tailored loyalty programme offers, depending on the type of customer the retailer is targeting: lapsed, high spending threshold, or high discount percent."
Retailers and consumers alike are embracing digital channels, including mobile and social, to interact, research, and transact in new ways.
Aberdeen's data indicates that 17% of retailers currently utilize mobile marketing as part of their loyalty programme, with an additional 62% of retailers indicating plans to implement this technology in the next 12 months.
Some 44% of retailers currently use social media as a component of their loyalty programme, with an additional 49% planning to use the technology by year's end. These new channels are paving the way for the new building blocks of customer loyalty.
A free copy of the report has been made available via Aberdeen's web site - click here (free registration required).