I was recently told by a retailer that a brand’s homepage is the new storefront. This couldn’t be more true when 81% of store visitors go online before or during a visit to a store — yet 94% of all retail transactions happen in a brick-and-mortar location.
That said, today’s mobile-savvy consumer is informed and making fewer and more focused visits to brick-and-mortar businesses. Loyalty is probably the hardest thing to nurture and even more difficult to maintain. So, it’s no surprise that traditional brick-and-mortar retailers are struggling to maintain loyalty with eroding in-store traffic and fewer repeat shoppers and must capitalize on each and every opportunity. So, how do we take a page out of the ‘ol eCommerce handbook and apply it to loyalty in the physical world?
Let’s first take a moment to reflect on Loyalty 1.0 and take a high-level look at the current state of loyalty programs–and where there may be a few blind spots.
- Loyalty = Owning a Card. According to Sage Research, nearly 90% of customers are enrolled in some type of rewards-based program–and the average household is signed up for nearly 29. Yes, 29! Just because they have card, doesn’t mean they will hold onto it or use it (and not lose it!).
- Loyalty = Earning Points. In some programs, loyalty is measured in the number of points a customer racks up. What this doesn’t cover is the customer who isn’t part of the program but still spends time and money at your location. Or more importantly, what about the loyalty program member who visits the store and doesn’t buy? How do you know when a loyal customer is slipping away?
- Loyalty = Receiving Offers. Human nature gravitates to rewards and recognition, hence the importance of offers with any loyalty program. But, what happens to the unused offers? And more importantly, what about a customer that is only makes a purchase when there is an offer involved? Is that visitor still considered “loyal”?
All of this to say–a loyalty program can help cement the relationship between a brand and its customers. However, by themselves they are not the answer, as they have a significant blind spot: they ONLY track transactions. Any other activity or behavior is lost.
So now, without further ado…introducing Loyalty 2.0, a way to make loyalty programs smarter with new in-store metrics and segmentation capabilities. The new features from Euclid Analytics help retailers, quick service restaurants, banks, and other brick-and-mortar businesses:
- Get granular with loyalty by understanding the percentage of customers that are new, repeat and re-engaged within a given store or across an entire chain.
- Build campaigns with stickiness in mind. Based upon the new segmentation capabilities within Euclid EventIQ, you can now know which campaigns are actually driving repeat customers–and ROI.
- Deliver on your brand promise. Analyzing cross-visit behavior across your chain ensures you know which locations must have consistent experience–from promotions to pricing.
- Increase repeat visits from current customers. Monitor how frequently customers return to physical locations and which items and promotions keep them coming back.
Like any good relationship, we think of building customer loyalty as a journey. With the inherent blind spots in current loyalty programs (not to mention the blind spots for those who don’t have loyalty programs), location analytics provides a concrete foundation on which to make decision around future strategies. From there, brands use Wi-Fi and mobile to personalize the way they approach their loyal customers. After all, if there’s anything that eCommerce has taught the physical is that personalization is fundamental to success with today’s shopper.
If you’re looking for more on the new loyalty metrics for brick-and-mortar and how top brands have used them to improve the customer experience, download and read our our white paper.