Retailers that offer personalised loyalty programmes are more likely to drive brand engagement and customer devotion, a study by loyalty marketing agency ICLP has found.
More than two-thirds (68%) of Australian consumers would shop more frequently or spend more with a brand if they received discounts on future purchases and 52% would spend more if they received free delivery on a day of their choosing.
More than a third (36%) of consumers expect offers that are personalised and relevant when walking into a store, while a quarter said they are likely to spend more in a store where they have been greeted by name.
The results indicate that personalised reward programs are better loyalty drivers than price alone.
“To win in this competitive retail landscape, brands need to focus on creating loyalty programmes that generate insight and enable retailers to entice customers back with relevant offers – encouraging them to spend and shop more frequently,” ICLP general manager Simon Morgan said.
“From money-can’t-buy experiences to personal greetings and a strong social media presence, customers want to ensure their hard-earned cash is spent with brands that are prepared to invest in a meaningful and personal relationship.
“Effective loyalty programmes need to recognise and cater to what customers value, such as being greeted by name when entering a store, personalised offers or VIP events, in order to drive brand engagement and devotion.”
ICLP has released an infographic that illustrate how Sternberg's Theory of Love apply to brand relationships. Click on the image for the full-sized version.
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