Trends 2020: Loyalty means more than a transaction
By offering additional benefits and unexpected perks, retailers can improve customers’ experience and get them talking about the brand, taking the relationship from transactions to advocacy.
By Sarah Vizard
Loyalty programmes have barely changed since Tesco launched Clubcard back in 1995. The biggest and most successful schemes – think Clubcard, Sainsbury’s Nectar, Boots Advantage – have all basically rewarded consumers for spending money with a specific retailer.
Yet, with increased competition (particularly from online), economic difficulties for retailers and the costs of running schemes, many are now looking for new ways to engender loyalty. This is particularly the case among retailers that have reduced the value of their points or increased the spend required to earn each loyalty point, which has raised the ire of consumers.
We are beginning to see this shift towards engagement in the way the big three retailer schemes are now thinking about loyalty.
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