Retailer Loyalty Schemes

Retailer Loyalty Schemes

Summary

"Retailer Loyalty Schemes", report provides an overview of different types of loyalty programs, their need in retail industry, benefits and examples of loyalty programs.

Scope

- Loyalty programs are marketing strategies that, when effective, drive customer loyalty and encourage frequent purchases through providing enticing incentives and reasons to purchase.
- These programs are designed to reduce shopping around and make a retailer top-of-mind - motivating return visits and limiting customer acquisition opportunities for competitors.
- As part of these programs, customers are generally rewarded with special offers, discounts, points, rebates, exclusive services or free gifts.

Reasons to buy

- The effectiveness of loyalty programs is vital as sales growth opportunities, especially in mature retail markets, become more challenging
- Retailers must ensure their loyalty schemes are built into their apps
- Carrefour’s “MyCLUB” aims to leverage the fast-growing retail market in Middle East
- Boots Advantage card gets the basics right
- Madewell’s Insider loyalty program aims at gaining and retaining customer loyalty
- Best Buy’s loyalty program lacks a competitive edge versus Amazon
- The North Face loyalty scheme is designed to appeal to its customers’ passions
- Sephora is building on its “Beauty Insider” loyalty program to drive business
- Starbucks doubled its loyalty program members during 2017-2018.