Customer Loyalty Programs In Retail

Loyalty programs for retail are the need of the hour. With the fast-paced growth in technology, customer buying behavior has been changing. The COVID-19 pandemic has not only accelerated some of these trends but also led to various other challenges that retailers are battling today. The easiest way to tackle these challenges is by implementing a retail rewards program. But first, ‘What are loyalty programs for retail?’ In short, these are loyalty programs optimized to help companies overcome the challenges in the retail industry. To understand the relevance of loyalty programs, let us examine some of the major challenges faced by retailers.

Challenges

Customer Loyalty Program in Retail

Sample Loyalty Program in Retail

Benefits

Challenges

Retailers face multiple challenges which have increased multifold post the COVID-19 pandemic:

Change In Customer Expectations and Buying Behavior

Customer preferences will always change, and retailers must be able to keep up with the trends.

Omnichannel Experience

The pandemic has accelerated the shift towards multi-channel shopping, and brands must provide a seamless experience for the customers.

Data Centric Approach For Marketing And Sales

Retailers need solutions that can handle huge amounts of data being generated to ensure it benefits rather than overwhelms the sales and marketing efforts.

Lack Of Personalization

Personalization is the key to customer satisfaction. All customers need to be sent promotions based on their interests, past purchases, buying behavior etc.

Testimonials And Referral

Recent customer reviews and referrals influence new customer purchases. Hence getting such user generated content becomes critical.

Lack Of Uniqueness

Due to global standardization, all offers, and services seem indistinguishable from one another. In such cases, lack of unique experiences becomes a challenge.

Zinrelo, with its data-science based approach, is solely focused on generating customized insights for retailers. These insights equip Zinrelo to create the best retail loyalty programs. Each program is customized for the individual retailer which helps them overcome their challenges, achieve their objectives, and drive meaningful revenues and ROI.

Customer Loyalty Programs In Retail

Customer loyalty programs in retail designed by Zinrelo helps solve the above challenges. The retail rewards programs create a 360-degree engagement with customers and reward them for performing various activities.

Below are some facets of Zinrelo’s loyalty programs for retail companies.

Better Segmentation

Machine learning algorithms help create different customer segments based on unique attributes, preferences, and previous behavioural patterns

Create customized promotions based on customers’ interests, past purchases and buying behavior.
Offer incentives with personalized services and individual preferences.

Unique Experiences

Providing unique experiences to outshine competitors and elicit customer loyalty.

Set experiential rewards & offers, and build gamification via badges & contests to create aspirational value among customers

Loyalty Tiers

Move higher spending customers to a higher tier of service.

It is important to pamper loyal customers
Create incremental monetary & non-monetary tier-based benefits (including exclusivity and VIP experiences)
Early access to promotions or new product launches are just a couple of examples that can be offered

Advocacy

Get your customers to help with your marketing. Nearly 9 out of 10 people read reviews before making a purchase.

Write a review
Record a video testimonial
Enable and incentivize sharing on various social media

Referral

A prospect from an active customer referral is 7X more likely to convert

Refer the brand to new prospects

“The probability of selling to an existing customer is 3x to 35x higher than selling to a new one. 65% of a company’s business comes from existing customers”

(Markinblog)

Sample Loyalty Program For Retail

To illustrate what a loyalty program for retail could look like, we have taken the example of Fab Apparels, a merchandise retailer. Below are examples of a typical client loyalty dashboard for a retail company. The best retail loyalty programs all have these features in common.

This will be created by Zinrelo automatically on the brands’ website, inside the “My Account” section with a single-sign-on.

Loyalty Points Earning Activities

Clients can earn points for purchases, engagement, marketing and referrals. Zinrelo allows the creation of unlimited custom activities as well.

Loyalty Rewards

Clients can exchange their points for a wide variety of rewards, including discounts, free shipping, free products or services, gift cards, charity donations and lots more.

Loyalty Rewards

Clients can exchange their points for a wide variety of rewards, including discounts, free shipping, free products or services, gift cards, charity donations and lots more.

Loyalty History

Clients can review their points and rewards history on a single screen within the dashboard.

Loyalty Tiers

Clients can review their tier level; they are automatically moved to higher tiers based on their spends, giving them a privileged level of service. This makes the clients feel special and increases the emotional investment.