In today’s competitive marketplace, businesses are always looking for ways to differentiate themselves from their competitors. One way to do this is through the use of loyalty programs. They are designed to encourage customer loyalty by offering rewards and benefits to customers who frequented a particular business. Moreover, there are many types of loyalty programs, but they all have one common goal: to keep customers coming back.
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Data for today’s episode is provided by Mercator Advisory Group’s Report: How Payments Can Drive Better Loyalty and Rewards Programs
Top Loyalty Program Participation by Vertical Market
- 59% of consumers participate in Supermarkets/grocery stores
- 52% of consumers participate in Pharmacies/drug stores
- 59% of consumers participate in Warehouse/club stores
- 59% of consumers participate in Online-only retailers
- 59% of consumers participate in Airline/Travel
Mercator Advisory Group’s report, How Payments Can Drive Better Loyalty and Rewards Programs, provides insight into the new technology driving increased personalization and better customer experiences with loyalty programs, and the important role that payment data can play.
Traditional loyalty programs were a source of data for merchants, better enabling them to identify the repeat customers and track the shopping patterns by rewarding their repeat purchases. The digital environment now gives us an abundance of data that is captured in many ways and in many places. Therefore, these programs become a use of data that provides a better understanding of customer behavior and the more targeted rewards.
Strategic operating decisions that merchants make in key payments areas including orchestration, tokenization, and service provider selection will affect the ability of the marketing team to mine the loyalty data from payments and has the potential to either enhance or detract from the effectiveness of the loyalty program.