90% of the best retailers have loyalty schemes
Best-in-class companies are 90% more likely than the industry average to operate loyalty card programmes, according to a research report sponsored by loyalty marketing firm Access Development.
The report, called ‘Cutting edge customer loyalty: Retail best practices for acquiring, retaining and engaging customers’, was undertaken by the Aberdeen Group, which noted that companies that have a loyalty solution in place, compared to those without a loyalty solution, are performing at significantly higher levels across a number of important metrics, including a 53% higher compound growth rate.
Aberdeen Group senior analyst and chief author of the report, Sahir Anand, says there are several critical factors necessary in the design of an effective loyalty programmes.
The top four factors are:
– Capturing purchase data at the point of service
– Delivering relevant offers based on purchase history
– Using automated systems to avoid human errors
– Keeping implementation and redemption simple