Data and Analytics Customer Segmentation Targeting Key ...
how sweet it is : The Satisfaction of a Successful Loyalty Program
Loyalty drives sales — today, tomorrow and into the future. But many retailers are not keeping their loyalty programs fresh with the sweetest rewards.
U.S. households participate in close to 22 loyalty programs. But…less than 10% of loyalty members ? are actively using their accounts and redeeming offers.
To sweeten the loyalty pot, retailers need to concoct a strategy that will deliver a successful loyalty program. That strategy should include:
1
Data and Analytics
– to define the existing loyal customer base
37% 37% of retailers believe
“retaining customers” will be the #1 contributor to revenue growth in the next 3 years.
2
Customer Retention Directly Correlates To Same Store Sales
Customer Segmentation
– based on purchase patterns and demographics
73% Use The Recency/Frequency/ Monetary Formula To Create Relevant Customer Segments
73% of smartphone/ tablet users want to interact with loyalty programs using their mobile devices.
“Retailers need to develop differentiated rewards. Recognition also tends to be a one size fits all, which hinders program adoption.”
%
-Jonathan Copulsky, Principal, Deloitte
3
Targeting
– defining loyalty program goals for each customer segment
69% Protect, Grow, Acquire & Re-Activate Loyal Shoppers
%
69% of loyalty program members want to receive
personalized discounts on their favorite items.
“Cookies, geo-fencing, and other tracking technologies allow retailers to gather data including shopper purchase history, spend, and browsing behavior.” -Esprit Smith, Marketing Consultant, Lenati customer loyalty consultancy
4
Key Performance Indicators (KPIs) – to determine the success of loyalty initiatives
40% Track Sales & Transaction
Penetration, Loyalty Program Activate Rate And Redemption Percentage
5
40% of loyalty program members agree that their
loyalty program’s “values” are “the same as mine.”
A Successful Loyalty Strategy – designed to attract the right customers
29% Well-planned loyalty implementation is key: The first 4 to 6 months of a loyalty program launch are critical!
Sources: COLLOQUY, 2013 Loyalty Census report KPMG, 2013 Retail Industry Outlook Survey Maritz, Loyalty Marketing Report, 2014
29% of retailers rank
“Waning store/brand loyalty” as a top 5 technologyrelated challenge.
Loyalty drives sales — today, tomorrow and into the future. But many retailers are not keeping their loyalty programs fresh with the sweetest rewards.
U.S. households participate in close to 22 loyalty programs. But…less than 10% of loyalty members ? are actively using their accounts and redeeming offers.
To sweeten the loyalty pot, retailers need to concoct a strategy that will deliver a successful loyalty program. That strategy should include:
1
Data and Analytics
– to define the existing loyal customer base
37% 37% of retailers believe
“retaining customers” will be the #1 contributor to revenue growth in the next 3 years.
2
Customer Retention Directly Correlates To Same Store Sales
Customer Segmentation
– based on purchase patterns and demographics
73% Use The Recency/Frequency/ Monetary Formula To Create Relevant Customer Segments
73% of smartphone/ tablet users want to interact with loyalty programs using their mobile devices.
“Retailers need to develop differentiated rewards. Recognition also tends to be a one size fits all, which hinders program adoption.”
%
-Jonathan Copulsky, Principal, Deloitte
3
Targeting
– defining loyalty program goals for each customer segment
69% Protect, Grow, Acquire & Re-Activate Loyal Shoppers
%
69% of loyalty program members want to receive
personalized discounts on their favorite items.
“Cookies, geo-fencing, and other tracking technologies allow retailers to gather data including shopper purchase history, spend, and browsing behavior.” -Esprit Smith, Marketing Consultant, Lenati customer loyalty consultancy
4
Key Performance Indicators (KPIs) – to determine the success of loyalty initiatives
40% Track Sales & Transaction
Penetration, Loyalty Program Activate Rate And Redemption Percentage
5
40% of loyalty program members agree that their
loyalty program’s “values” are “the same as mine.”
A Successful Loyalty Strategy – designed to attract the right customers
29% Well-planned loyalty implementation is key: The first 4 to 6 months of a loyalty program launch are critical!
Sources: COLLOQUY, 2013 Loyalty Census report KPMG, 2013 Retail Industry Outlook Survey Maritz, Loyalty Marketing Report, 2014
29% of retailers rank
“Waning store/brand loyalty” as a top 5 technologyrelated challenge.
