FORBES – Retailers are investing more money in loyalty program strategies, but are they buying hammers when they need nails?
A survey of 500 U.S. retailers reveals that 46 percent identify structured loyalty programs as a priority in 2015, making it their second-highest concern after customer engagement (with 74 percent), according to a recent report by Boston Retail Partners. Not surprising, then, that 62 percent of those retailers said they are increasing their budgets to enhance loyalty initiatives in 2015.
“Loyalty programs are one of retailers’ best tools to ‘know the customer, reach the customer, and deliver this experience,’ ” the report states.
True, but in order for that tool to be operated properly, it has to be crafted and installed with meticulous planning and collaboration, companywide. A hammer may drive a nail, but retailers first need to establish they have the right nails for the job. This means, at the early planning stages, that everyone on the management team agrees with the blueprint – or risks getting stuck with a money pit.