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IS LOYALTY DEAD?

As a retailer, getting your customers to be loyal to your brand is the holy grail. However, in an increasingly mobile centric world that has fundamentally changed the way consumers shop, does the traditional points scheme still tick the boxes or is loyalty dead? At a breakfast briefing hosted by Datalogic, this is exactly the topic that was discussed by retailers and loyalty experts.

According to research conducted by Deloitte, 54% of consumers claim to like points-based loyalty schemes and the average consumer is enrolled in nearly 15 different loyalty schemes. This number alone would suggest that loyalty is alive and well, however the same research reported that most consumers consider being rewarded for their loyalty to be ‘the norm’ or even an expectation but not a differentiator. Only 32% strongly agreed that a loyalty programme makes their brand experience better and liking the brand’s loyalty scheme didn’t make the top 5 when participants were asked what factors encouraged their loyalty to a particular brand.

These findings were echoed by the panel of experts, who shared not only their professional but also their personal views of loyalty. The discussion indicated that there is a great desire and a need to move away from traditional scheme structures which offer rebates to customers, after they have purchased goods or services. It was also suggested that typically, there is too much focus on the mechanics of the individual scheme and in some cases, this has led to the creation of programmes that are far too complicated.

Technology, including Datalogic’s own point of sale barcode scanners and mobile computers are a vital enabler to not only capturing customer data but also providing enhanced levels of service and diverse experiences that will encourage customers to come back time and time again.