Wednesday, December 30, 2015

4 things shoppers like about loyalty programs

Author: YI mobility

Before your business implements a loyalty program, you have to understand what features are most attractive to consumers. You don't want to waste time and resources on a program that doesn't resonate with the shoppers you need returning to your store. Here are four loyalty benefits proven to entice modern audiences:
1. Customers prefer stores with loyalty programs
The first thing you need to know is that modern consumers do, in fact, favor stores that offer some form of loyalty incentives. Entrepreneur Magazine shared a variety of examples of businesses that saw a measurable increase in sales after providing their shoppers or diners with reasons to keeping frequenting their establishments.
A number of different types of programs have proven effective. Response Media shared Mintel market research reports that found loyalty rewards encouraged shoppers to buy additional items, spend more on a single trip and make frequent visits. Programs that offered deals or discounts for more than one type of activity demonstrated the most results.
2. Shoppers want to save money, not earn stickers
Stores have to recognize which incentives will influence people's decision to sign up for a loyalty program. TechnologyAdvice, a business information resource, conducted a survey of consumers that found cash is king. More than half of respondents said saving money was the primary reason they subscribed to loyalty programs.
Receiving rewards came in second with 37.5 percent of shoppers saying they joined programs with hopes of getting free merchandise or other prizes. Social rewards, such as social media badges, proved to be unpopular with respondents as some customers said such incentives would actually discourage them from joining loyalty programs.
3. Digital is on the rise
The TechnologyAdvice survey found one-third of shoppers prefer loyalty programs offered through a digital option, about one-third want a physical card and the remaining consumers don't have a preference either way. Digital grows in popularity as technology becomes more convenient, 59 percent of shoppers said they would be more likely to subscribe to a loyalty program if it had an app they could use on their mobile devices.
Stores need to keep up with the times and appeal to their shoppers as they adopt mobile tools. Businesses that offer digital loyalty programs can appeal to consumers that like physical reward systems like punch cards by offering an electronic version that offers the same performance as the traditional option.
4. Don't make them start at the beginning
Once a store understands why shoppers like loyalty programs, the business can offer sign up in the most convincing terms possible. Kissmetrics collected a variety of industry studies that found consumers don't like to start brand new activities to receive rewards; they are more likely to participate in programs if they feel they've already begun.
This means companies should start loyalty program pitches by listing what the consumer has earned thus far and how they need to sign up to receive benefits. Tracking shopper performance allows sales teams to approach possible loyalty program members with data that makes signup simple and rewarding.


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