CRM Magazine – When it comes to customer loyalty, companies often expect a lot from their most valued customers: Enrolling in loyalty programs takes effort, and then once they are enrolled, members are expected to remember PINs, passwords, account numbers, and other information or to carry around special cards or keychain tags.
Despite the hoops that customers must jump through to participate, these loyalty programs appear to be paying off for retailers, as recent research from Boston Retail Partners (BRP) found that 62 percent of retailers increased their budgets to enhance their loyalty programs in 2015. Much of the added funding went toward evolving loyalty programs to satisfy tech-savvy consumers with mobile offerings and unified commerce experiences.
Modern loyalty programs need to go past traditional earn-points-and-receive-rewards structures, according to Brian Brunk, principal at BRP. He recommends adding exclusive perks, relevant incentives, and personalized rewards as a way to further reward loyal customers.
“It’s all about engagement,” Brunk says. “Successful loyalty programs focus on immersive customer engagement and meaningful rewards that are sticky.
“Personalized offers based on personal preferences and past purchases are more meaningful as rewards and encourage participation in the loyalty program,” he adds.
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