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A recent KPMG survey revealed customers would do almost anything to earn more rewards, yet many retailers may be missing the mark on customer loyalty programs. Retailers can redesign their customer loyalty programs to cater to what customers value the most —which isn’t always cost savings.
An action plan toward this end includes establishing these four priorities: start with customer experience, use the data effectively, keep rewards fresh, and design a business model first. The starting point of a quality loyalty program begins with an accurate measurement of customer experience. Then, reliable data can be integrated not only within the loyalty program itself, but also throughout all business operations. By testing and personalizing different approaches to customer experiences, businesses can design loyalty programs that are fresh, flexible, and profitable.
For instance, businesses can consider offering surprise deals, special privileges, or time-saving opportunities to keep rewards programs flexible. Companies can also look to partnership opportunities like co-branded credit cards or supply-side cost reductions to counter operating costs associated with loyalty programs. Read more here.