As shoppers continue to flock online to find the latest deal, retailers are focusing efforts on building loyalty. According to Smart Money by the Wall Street Journal, retailers, supermarkets and other companies are increasingly adding new benefits to their loyalty programs. Half of the retailers said it would be a key strategy for 2012, compared with 41% last year.
Reward programs have been expanded to reach customers through multiple platforms, and reward them for engagement. Physical cards have been replaced with scannable smartphone codes or linking them to an actual credit or debit card. Customers who “check-in” places get exclusive deals and coupons.
Others are launching tiered membership programs, where customers earn points depending on how much they shop. Nordstrom revamped their rewards program to include $100 dollars in free alterations. Still, others offer deals through social media that can only be accessed by “liking” the page; customers can get even more perks by promoting it to their friends.
Still, others are partnering up; Best Buy and Citibank recently joined forces. Cardholders can use Citibank reward points at Best Buy stores. Shopkick is a free app that awards points and discounts for visiting and making purchases at retailers including Old Navy, Crate & Barrel, Macy’s and Exxon.
The trends mark a decided shift in how to build and retain customer loyalty. Retailers are taking a more multi-platform approach, engaging customers in many different ways and offering unique incentives to keep them coming into the store rather than purchase something online.
At Newman Crane, we have insurance plans to protect your Orlando Retail operation from a number of potential losses, including liability and property damage (fire, storm damage, vandalism or roof leaks, for example). Contact us today.