Customer loyalty tied to discounts on future purchases
Discounts on future purchases are important to over half (68 per cent) of Australians, with 52 per cent saying they would spend more if they could get free delivery on a day of their choosing, according to a survey from global loyalty marketing firm ICLP.
The study examined consumers’ attitudes towards brand loyalty heading into the Christmas period, following on from earlier research that showed 97 per cent of Australians would ‘cheat’ on their favourite retailer, regardless of their depth of affinity for the brand.
The findings also pointed to loyalty and rewards programmes as being the most effective ways of getting Australians to spend more, with 73 per cent saying they would spend more if a retailer had a loyalty program, or if they were rewarded better.
“Retail continues to evolve at a rapid rate, with brands both online and offline battling for loyalty in an increasingly crowded space during the holiday season,” said Simon Morgan, general manager at ICLP. “Gone are the days when a loyalty card alone would encourage consumers to choose a particular retailer above all others – the stakes are much higher now.”
“Effective loyalty programmes need to recognise and cater to what customers value, such as being greeted by name when entering a store, personalised offers or VIP events, in order to drive brand engagement and devotion,” Morgan added.
According to Morgan, to win in today’s competitive retail landscape, brands need to focus on creating loyalty programmes that generate insight and enable retailers to entice customers back with relevant offers – encouraging them to spend and shop more frequently.
“From money-can’t-buy experiences to personal greetings and a strong social media presence, customers want to ensure their hard-earned cash is spent with brands that are prepared to invest in a meaningful and personal relationship,” he said.