Promising Digital Loyalty Schemes Boost Customer Engagement
83% of UK consumers are engaged with at least one retail loyalty schemes and there are only 17% of consumers claim not to be registered with any of the retail loyalty schemes.
In a survey 46% of customers said loyalty schemes had desired effect of making them a more loyal customer which raised to 50% in the age group between 18 to 34 years. Only 13% of respondents within the same age group disagreed with the schemes making them more loyal to a retailer.
There has been a clear evidence that more could be done for customers on behalf of retailers to encourage full engagement with the schemes. 74% of respondents admitted of collecting points on a regular basis and only 47% go on to claim the rewards that are owed to them.
Due to lack of knowledge around how to claim and a dislike of the perks that are offered by the retailers is one among the number of reasons behind customers not utilizing rewards? 33% of respondents simply can’t be bothered to retrieve the rewards they earn.
From the surveyed consumers, a move towards digital loyalty schemes signaled the potential for increased engagement. This was specific among the age group of 18 to 34 years. 41% stated that the ability of viewing loyalty rewards and points on an app can improve their loyalty scheme experience. 28% consumers called for pushing notifications from loyalty scheme providers and 32% listed digital vouchers as a potential way and could be made more engaging.
In the case of SMEs the cost associated with developing a personalised loyalty program is understandably daunting. In recent years some cost effective highly customizable loyalty platforms that can be afford by the smaller brands are the tools needed to boost customer retention levels.