U.S. companies spend $2 billion on loyalty programs, but the investment isn’t yielding the type of increased engagement which drove implementation of the programs, according to a new report from Capgemini Consulting.
Fast-growing footwear retailer Rack Room Shoes has always had a good grasp on its customers and their wants and needs. However, the retailer never began building a formal loyalty plan until the first quarter of 2012, which actually created an advantage.
GE Capital and Kobie Marketing, a loyalty program service provider, will unveil a new product to help retailers establish and maintain loyalty programs that will create a unified profile for shoppers, according to a report by the New York Times.
PunchTab, an omni-channel loyalty and engagement platform, announced that Arby’s Restaurant Group, Cosi and Bareburger have adopted PunchTab’s technology, and are benefitting by offering rewards to customers across multiple channels.
As retailers continue their quest for deepening customer engagement, they’ll often turn to a loyalty program. Yet high membership numbers are deceiving because engagement levels are actually stagnant. This poses the question, are loyalty programs right for every brand?
Retail loyalty programs have seen some impressive growth since 2011, according to results of the latest Colloquy Loyalty Census. In 2013, department stores achieved 70% growth in loyalty program memberships since the 2011 Colloquy Census, far surpassing the 26.7% rate of growth in loyalty programs across all sectors tabulated in the 2013 census.