Retail marketing includes efforts to draw in new shoppers and hold on to existing patrons. Loyalty programs can be a component of this strategy and retail customer intelligence can enable merchants to tailor these initiatives to their consumers' preferences.

According to a McKinsey & Company study, as reported by Forbes, retailers could do more to make their programs worth the investment. The study found that heavy investors in loyalty programs grew at the same rate or more slowly than other companies since 2002. With the right strategy, however, merchants can turn their loyalty programs into assets that engage customers and drive sales.

McKinsey & Company recommended incorporating loyalty programs into the shopping experience, instead of running them almost as afterthoughts at the cash register. Similarly, Business 2 Community advised retailers to make sure their loyalty programs cut across all store operations, creating a seamless omnichannel experience. Merchants can tie in their online branding by taking social engagement into consideration, the source added.

Creative approaches to loyalty integration, such as adding a mobile payment component, can also foster loyal customers without putting too much emphasis on the program, McKinsey & Company said. Overall, retail reports and data analytics can help merchants design stronger loyalty programs that offer the right incentives for their consumer base.

This entry was posted by Retail Pro on Monday, February 10th, 2014 at 3:26 am .