Loyalty programs encourage customers to return where they frequently make purchases. Some of the incentives could include advanced access to new products, additional discounts, and free shipping perks. Customers register their personal information with the retailer and are provided a membership account. Some programs are free, while others with more quality bonuses have an annual fee.
Customer Relationship Management
Retailers use these programs as a form of CRM, Customer Relationship Management systems. These systems help maintain a record of their sales process and market goods or services efficiently. The signup process of loyalty programs allows for insight on each customer. They provide information that helps the retailer make specific and strategic marketing plans for optimal results. According to a study presented by LoyaltyOne, loyalty program members contribute to 43% of companies’ annual sales. In addition to the increased sales, 95% of companies within their study reported that members spend more annually, with 60% reporting that members spend two to three times more.
Walmart’s Take on Loyalty Programs
Walmart recently released their newest loyalty program, Walmart+. According to the Walmart press release, “Along with the power of its online presence, Walmart+ has the reach of more than 4,700 stores, including 2,700 stores that offer delivery as fast as the same day.” Walmart+ members will receive unlimited free delivery from stores and fuel discounts. In-store shoppers will have access to a “Scan & Go” feature that allows them to scan items from their phones and pay for them using Walmart Pay, allowing them to avoid the checkout line. It will cost $98 a year or $12.95 a month and includes a 15-day free trial period.
Walmart has now put themselves at a higher advantage point than most retailers and created competition with other loyalty programs such as Amazon Prime. By releasing this new membership program, Walmart anticipates continuing its increasingly fast growth in e-commerce, where it’s already become the second-biggest online seller in the US. Amazon being the number one. The fuel discount will bring in more customers just for the simple fact that gas is expensive, and it will never go on sale.
Loyalty programs are more critical now than they ever have been. Due to the increasing demand for the perks of shopping online and in-store, retailers must keep up. Amazon and Walmart being just two of many, there is significant headway coming for customers and retailers with a simple loyalty program.
Curiosity Marketing Group has the knowledge and expertise to keep you above and beyond your competitors. As more and more brands roll out loyalty plans, will you be able to keep up? Have you thought of starting your own Loyalty program with an integrated CRM. Curiosity has helped launch combinations of Loyalty programs as well as CRM integrations for better client service and happy customers. Let us help you give them a run for their money!