Letting your customers know that you appreciate them is good business practice and almost reason enough to implement a loyalty program. The added bonus of gaining key personal details on your buyers for use in future strategic marketing plans, if implemented properly, make it a sure fire winner.
“Customer loyalty is arguably the greatest asset in the business; loyal customers provide repeat business, and equally importantly, new customer referrals,” reports the Australian Centre for Retail Studies at Monash University in their whitepaper, ‘Towards customer loyalty: Strategic differentiators for success.”
Myer operates one of Australia’s most successful and well run loyalty programs with last year’s financial results revealing 70 % of their total sales were made by customer loyalty program members. Myer uses the valuable data provided by over 5 million MYER one card members, to monitor and evaluate key aspects of their operations performance in areas including stores, products, brands and marketing.
“We continue to focus on customer engagement and retention by acknowledging and rewarding our most valuable members as well as targeting customers with relevant offers. We have a pipeline of further enhancements for our MYER one loyalty program as it is a key competitive advantage providing incredible insights through sophisticated data analysis”, says Myer CEO, Bernie Brookes.
Loyalty programs have obviously been profitable for many retailers but unless they are well planned and executed appropriately they won’t succeed.
“The loyalty program has to be more than just discounting, it has to have some form of value-add like a VIP program. We have also found customers were not dissuaded from dealing with a retailer if there wasn’t a loyalty program; it was more of a motivator if there was one. Where loyalty programs tend to be most successful is where they are linked to other offers, so the customer gets broader value,” Founder & CEO of the Retail Doctor Group, Brian Walker advises in SmartCompany.
The priceless benefit of having strategic and timely personal interactions with customers which loyalty programs provide is one of the most effective tools a retail business can utilise to build strong customer relationships, inform better operational decisions and enjoy continued success.
Visit www.retailexpress.com.au or call 1300 732 618
Aaron Blackman is the CEO of Retail Express. Follow Aaron on Google+
Date of Post: 2014-04-24