According to a leading analyst firm, which surveyed around 5,000 U.S. adults, 68% said they were members of a retail brand’s loyalty program. Another recent study from Bond and Visa, which sampled 25,000 North American consumers participating in over 450 different loyalty programs, found that only 30% of consumers said they feel loyal to the brand and only 20% feel the brands are loyal to them. 

Many technology suppliers offer a breadth of different loyalty, payments, and customer experience capabilities that enable retailers to run comprehensive programs. But are retailers more focused on what they could be doing, instead of what they should be doing? 

To learn more about how retailers can increase customer loyalty and drive meaningful business outcomes at scale, PaymentsJournal sat down with Aaron McLean, Chief Marketing Officer at Stuzo, and Brian Riley, Director of Mercator Advisory Group’s Credit Advisory Service. 

PaymentsJournalHow to Use ‘Could vs. Should’ to Drive Business Outcomes PaymentsJournal How to Use ‘Could vs. Should’ to Drive Business Outcomes PaymentsJournaljQuery(document).ready(function ($){var settings_ap15346091 = { design_skin: "skin-wave" ,autoplay: "off",disable_volume:"default" ,loop:"off" ,cue: "on" ,embedded: "off" ,preload_method:"metadata" ,design_animateplaypause:"off" ,skinwave_dynamicwaves:"off" ,skinwave_enableSpectrum:"off" ,skinwave_enableReflect:"on",settings_backup_type:"full",playfrom:"default",soundcloud_apikey:"" ,skinwave_comments_enable:"off",settings_php_handler:window.ajaxurl,skinwave_wave_mode:"canvas",pcm_data_try_to_generate: "on","pcm_notice": "off","notice_no_media": "on",design_color_bg: "111111",design_color_highlight: "ef6b13",skinwave_wave_mode_canvas_waves_number: "3",skinwave_wave_mode_canvas_waves_padding: "1",skinwave_wave_mode_canvas_reflection_size: "0.25",skinwave_comments_playerid:"15346091",php_retriever:"https://www.paymentsjournal.com/wp-content/plugins/dzs-zoomsounds/soundcloudretriever.php" }; try{ dzsap_init(".ap_idx_358060_19",settings_ap15346091); }catch(err){ console.warn("cannot init player", err); } });

The word of the year is ‘personalization’ 

Retailers must put the wants and needs of the customer first. In 2021, this requires personalization. “What that means is getting the right message to the right loyalty program member through the right channel at the right time,” said McLean. “Now, that is not an easy thing to do, but it can be accomplished.”  

The first crucial step is for retailers to streamline enrollment: get as many consumers enrolled in the program as possible. The more consumers enroll in retailer loyalty programs, the more opportunities retailers have for winning loyal customers. The best way to increase enrollment is by removing barriers to entry. Stuzo, a company that helps “Everyday Spend Retailers Know and ActivateTM more customers,” enables consumers to enroll from any channel with as little as just their phone number. 

The next challenge is maximizing engagement. This is where personalization comes into play—by offering choice and flexibility in how members interact with the retail brand and participate in the program. Retailers should build a 360-degree comprehensive member profile by using all available wallet data, behavioral data, transactional data, and personal identifiable information (PII) data.  

The final challenge is to use that data purposefully and programmatically in real time.