Anno 2018 everyone has experience with it: rewarding returning customers with extra - and especially - free products. Do you buy a creamy cappuccino six times at the coffee shop at the station? Then you will receive your next cup completely free of charge. Do you order weekly groceries at the large supermarket chain around the corner? Then you do not have to be surprised if your favorite bar of chocolate appears in your basket out of the blue and free of charge.
With the so-called Loyalty Programs, retailers are increasingly aware of how consumers are put together and they like to act upon that. The goal of this? Building a bond with the consumer so that they return even more often.
Most retailers use these programs initially to trigger and attract new customers. Yet it is also a powerful tool to create engagement with your existing customers: by responding to interests and needs, you ensure that they retrun and spend more.
Analytics is key
The indispensable ingredient in this technological development is data. Data connects all loose ends. The more data a retailer has at his disposal, the more rewards can be personal and relevant for his consumer.
An important development in which a retailer cannot lack behind. If you do, you are not relevant enough for your customer and you lose your right to exist. Precisely because the competition in this sector is sky-high - because, how easy is it nowadays to start your own online webshop? - much more is needed than just respond to a competitive prices. Surprising your customer is important and makes survival in the jungle of retail easier.
It is not surprising that 'Loyalty Retailing' is booming in the United States at the moment. It is therefore a matter of time before the Netherlands is completely conquered. Because in this fast-paced world we want nothing more than convenience and relevance. The largest Dutch retailers are already well on their way and are increasingly using data efficiently. Of course, this does not imply that SMEs have already lost their battle. After all, it is not too late to experiment with data and Loyalty Programs. My tip? Start applying analytics to the data you already have and get the best out of it!
Do you, as a retailer or etailer, have questions about the best use of your data? Feel free to contact us without any obligation!