Home Blog Blog Marketing Ideas Are Customer Loyalty Schemes Still Worth It?

Are Customer Loyalty Schemes Still Worth It?


cardsHow often have you found yourself paying for an item only to be asked if you’re part of that particular rewards program? These days consumer loyalty is more important than ever and customer loyalty schemes can be found everywhere you look.

Whilst the retail market may seem saturated with rewards programs, the take up by consumers has been dwindling in recent years. Businesses seem to have forgotten about offering incentives that their customers want or actually need, with research showing that of the 75% of Australian who join a retailer loyalty program*:

  • Only 66% use it each time they make a purchase
  • 25% have defected completely from their rewards scheme
  • 55% would still be more likely to recommend a retailer with rewards program over one that doesn’t offer one †

So Are Customer Loyalty Schemes Still Worth it?

The answer is YES – but only if you truly understand your customer and respond to their needs. To make a relevant proposition you need to: 

  1. Understand exactly what your customer is asking for, and
  2. Determine how you can best deliver an incentive to effectively meet the needs of your customers.

Whatever your loyalty program – discounts, vouchers, points accrual – your rewards should be completely led by what your customer is telling you they want.

The Role of Technology

These days modern technology opens up a world of new possibilities when it comes to loyalty schemes. Personal details can be stored and point accrual recorded whenever a membership card is swiped at point of purchase. What’s more, your customer can manage their rewards card online, logging into your website to edit their personal details, view transactions and review what rewards can be redeemed from your points program. They get to completely own their shopping experience.  

Getting It Right

To stand any chance of success, rewards programs must be developed based on relevance to your particular customer. So remember – whilst software-based technologies may deliver many advantages, if your customer responds to the more traditional ‘stamp card’ then clearly a stamp card is the right incentive scheme for your business. 

Finally, remember that customer needs can change so make sure you regularly revisit what you offer and how you’re offering it. If you take the time to truly understand your consumer then you’ll definitely be on track to getting it right.


* Source: https://www.theloyaltypoint.com.au/downloadable/download/linkSample/link_id/11/

† Source: http://www.smh.com.au/small-business/trends/loyalty-schemes-the-new-approach-20140327-35m1d.html

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS
  • Pinterest

Leave A Comment

Your email address will not be published. Required fields are marked *