Digital loyalty programs are poised to jump from the pioneers to the masses of local restaurants, cafes, bars, salons and more that rely on repeat business. Companies like LevelUp, LocalBonus, Five Stars, Swipely, RewardMe, Square and others are rapidly expanding to new cities. Peter Krasilovsky, vice president at BIA/Kelsey, told Bloomberg over $155 million in VC money has been invested in digital loyalty-card companies.
What are the benefits of e-loyalty programs for local businesses and why is this sector likely to surpass daily deals? The three accelerants are cost, performance and insights.
The Hanifin Loyalty Blog suggests we’ve reached a tipping point with loyalty rewards. Because there are so many loyalty programs that take too long to accumulate points, shoppers are devaluing them.
While this may be true with some retailers, such as those on the shopper’s margin, it is not true for all. Here are some reasons why:
1. There is a big difference between frequently and infrequently used retailers. For the average shopper, the utility of points owned at a bookstore pales compared to points earned at a grocery or big box retailer. The same is true for points earned on, say, American Express. Continue reading
The 15th annual Brand Keys Customer Loyalty Engagement Index (CLEI). asserts that loyalty is alive and well. It’s a significant survey of 46,000 consumers between 18 and 65. But if we only paid attention to CLEI in assessing brand loyalty, we’d miss the bigger picture.
It’s true that consumers have greater choice than ever in the channels they frequent, services they subscribe to, and, despite SKU-reduction initiatives, in the products they buy. Robert Passikoff, President of Brand Keys, notes winning brands share common factors of (1) innovation and (2) experience: Continue reading