Retail Surgery: How can I increase customer loyalty?

First and foremost, brands need to focus on developing an overarching loyalty strategy before developing a detailed scheme.

The strategy needs to address the broad considerations of what a brand stands for, and why consumers should choose that brand. It should ask what the key touch points are that cause customers to choose a brand and how the retailer can improve their experience at these points.

Clare Fuller, managing director at co-creation company Promise, which brings brands and customers together to create business ideas, says: “True loyalty is based on relationships, reciprocity and long-term thinking. Too often retailers operate a plethora of deals and promotions that confuse customers. They succeed in encouraging transactional and fleeting contact, not loyalty.”

Once a retailer has a loyalty strategy, a detailed scheme can be developed. Fuller says effective programmes are often driven by several key considerations.

First is personalisation. Consumers know you hold data about them and in return expect offers that mean something to them. The second is introducing a multichannel element. Fuller says: “Loyalty schemes are a great opportunity to provide links across channels and to encourage customers to try new things.”

Third, ease of use is important. Consumers might respond well to loyalty schemes available on smartphones, for instance. It’s also important to focus on customer experience. Fuller says: “Memorable experiences can be harder to acquire than loyalty points and are therefore more valued.”

It’s also wise to differentiate your scheme. Plenty of loyalty schemes offer points, or early bird offers – providing something different will make yours more difficult to copy.