Come all ye faithful: Retailers missing a trick on loyalty

online-xmasWith Black Friday just over a week away, it seems UK retailers are only looking as far as the end of their noses when it comes to getting new customers to return, with less than a fifth (17%) planning to enter shoppers into a loyalty programme once the sales are over.

That is according to new research from Emarsys, quizzing over 100 UK retailers and more than 7,000 consumers, which reveals retailers in the UK could be missing a trick by not focusing on price more regularly to keep shoppers faithful.

With nearly three-fifths (58%) of consumers admitting they would switch products if a cheaper option became available and a further 45% staying loyal to brands purely for discounts and rewards, it is clear that deals are a strong driver of loyalty.

But Emarsys insists Black Friday is not just about those new customers. Director of customer engagement solutions Payal Hindocha said: “While loyalty programmes are a great way to keep new shoppers returning after the Black Friday sales are over, it’s worth remembering your long-time customers as well.

“The shopper who came in for a deal and was signed up to the loyalty programme may never shop with your brand again, but the customer who has been with you for years and has high lifetime value might not even be part of this programme.

“With such a lack of connected customer insights, it’s difficult to make a loyalty programme a success. Instead, working out how to personalise these deals, from controlling who sees what reductions to deciding exactly how much of a discount each person receives, is a key strategy.

“Targeting a customer with the right incentive, at the right time, and on the right channel drives first-time to repeat purchases, and ultimately, creates more loyal customers. Having sight of this means your most dedicated customers feel valued and you do not risk eroding the potential lifetime value of the people who shop with you.”

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