The desire for more personalized loyalty programs is high on the agenda for consumers when considering their preferred retailers, global loyalty marketing agency ICLP showed in a study released Sunday. This is particularly true of millennials, who want a personal approach to loyalty programs, with 50% claiming they would be encouraged to spend with a brand that provides a stylist as part of such a program. The study, commissioned by ICLP's parent company Collinson Group, examined affluent consumers' attitudes towards brand loyalty. Sanjit Gill, General Manager at ICLP, said: "Retail continues to evolve at a rapid rate, with brands both online and offline battling for loyalty in an increasingly crowded space. Gone are the days when a loyalty card alone would encourage consumers to choose a particular retailer above all others – the stakes are much higher now. Effective loyalty programs need to recognize and cater to what customers value, such as being greeted by name when entering a store, personalized offers or VIP events, in order to drive brand engagement and devotion." The survey found that retailers can benefit from a personal approach to their loyalty programs to inspire higher or more frequent spend from shoppers. Millennials are much more likely than Generation X and Baby Boomers to be driven to loyalty through a personal approach, as 50% will be loyal to brands that offer a stylist to advise them on purchases, and 22% claim suggestions based on past purchases drive their loyalty. Some 19% of all shoppers would be encouraged to shop more frequently or spend more with a brand if they received discounts on future purchases. Seventeen percent of affluent consumers expect offers that are personalized and relevant to them when they walk into a store, showing that many expect retailers to use data insights to create a more valuable, customer-centric relationship. Eighteen percent of consumers are likely to spend more in a store where they are greeted by name and made to feel like a valued customer. Companies that are able to send receipts via email get more repeat visits from consumers, as this is something 19% of those questioned stated would lead them to shop more frequently with a retailer. Increasingly, consumers will choose retailers that offer personalized money-can't-buy experiences (10%) over those that offer generic, points-based rewards. This shows the need for loyalty programs that offer unique and exclusive experiences. Gill added: "Nowadays, personal, unique rewards are more important as loyalty drivers than price alone. To win in this competitive retail landscape, brands need to focus on creating loyalty programs that generate insight and enable retailers to entice customers back with relevant offers – encouraging them to spend and shop more frequently. From money-can't-buy experiences to personal greetings and a strong social media presence, customers want to ensure their hard-earned cash is spent with brands that are prepared to invest in a meaningful and personal relationship."
