Member Article

The loyalty lull disappoints shoppers

Loyalty schemes could be disappointing customers and costing retailers conversions, a new report from iVend Retail, a leading global retail solution brand, warns.

The report - ‘Omni-Illusion: why are customer connections disappearing when shoppers reach the store?’ - reveals that on average UK shoppers are part of 3 loyalty programmes. However, a third of customers (33%) don’t believe they get sufficiently targeted offers in the physical store environment, compared to the customised offers they receive online.

Among the top frustrations associated with store loyalty is lack of personalisation. Nearly half (48%) of UK shoppers have missed out on claiming points or paper vouchers because they failed to use them before the expiry date. What’s more, a further 15% said they often forget to use the loyalty cards they carry in their wallets, meaning they miss the opportunity to collect points when shopping in-store.

26% of UK shoppers would like personalised offers sent direct to their phone when they enter the store, while another quarter (25%) would prefer to get regular incentives direct to their mobiles or via mobile apps, allowing them to collect and redeem points holistically both in the store and online.

Richard Kolodynski, Senior Vice President of European Operations at iVend Retail, said: “Today’s consumers don’t differentiate between channels – they simply shop using the option that’s most convenient to them at the time, whether it’s online, in-store or via a smartphone device. And this is just the same when it comes to using loyalty schemes. Nurturing a lifelong relationship means getting to know someone, so retailers need to make a concerted effort to tailor their loyalty interactions in the way that’s most relevant to their most valuable customers.”

“By using a mobile-first strategy for loyalty, retailers can bridge the offline and online gap, delivering more personalised offers so each shopper feels valued at an individual level whilst using digital capabilities and customer data to better tailor such incentives,” he concluded.

For more information on how retailers can reinvigorate their loyalty schemes within an omnichannel strategy, download the report in full by visiting: http://www2.ivend.com/ivend-resource-hub

This was posted in Bdaily's Members' News section by Richard Kolodynski .