# Why loyalty still matters for retailers Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2018-03-28 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: How UK Retailers Can Compete Amidst Digital Disruption Meta Description: Learn how retailers can compete with big digital players and win back customers by personalising offers and implementing data-driven loyalty programs. Tags: featured Tag URLs: featured (https://financedigest.com/tag/featured) URL: https://financedigest.com/why-loyalty-still-matters-for-retailershtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/rob-meakin-1736842886780-compressed.jpg) _By **Rob Meakin**, Managing Director at_ [_Loyalty Pro_](http://www.loyaltypro.co.uk/) A few weeks ago, the British Retail Consortium released their [monthly figures](https://home.kpmg.com/uk/en/home/media/press-releases/2017/11/brc---kpmg-retail-sales-monitor-october-2017.html) showing that UK retailers suffered their worst October since 2008. This made for particularly grim reading; the slowest October since the year of the financial crash is sure to have retailers of many sizes feeling slightly anxious about the coming months. With inflating biting, wallets being squeezed and business and employee uncertainty rife following Britain’s decision to leave the EU, it’s no wonder the waters are slightly choppier than usual. ![Rob Meakin](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/rob-meakin-1736842886780-compressed.jpg) Rob Meakin With [consumers having less money to spend](https://www.financedigest.com/as-consumer-spending-increases-convenience-and-security-have-never-been-more-important.html "As consumer spending increases, convenience and security have never been more important"), it’s vital that businesses look to alternative methods to lure in customers who are otherwise hesitant opening their purses. Of course, [Black Friday and Christmas sales](https://www.financedigest.com/britain-on-track-for-record-black-friday-sales.html "Britain on track for record Black Friday sales") will hope to rebuff some of the October slowdown, but retailers – and particularly smaller ones – will be weary of warnings like these. So how are retailers able to compete with the [rising tide of big digital](https://www.financedigest.com/minding-the-gap-the-importance-of-inclusive-financial-strategies-as-digital-currencies-rise.html "Minding The Gap: The importance of inclusive financial strategies as digital currencies rise ") players? And how can they win [back the customer](https://www.financedigest.com/canadian-banks-fighting-brokers-back-for-customers.html "Canadian Banks Fighting Brokers Back For Customers") intent on purchasing from the likes of Amazon? **Fighting the digital pressure** As digital services – from Amazon to Booking.com and Apple and Android Pay – have grown in popularity, [consumers have also become a more demanding](https://www.financedigest.com/global-emi-shielding-market-significantly-hit-by-lack-of-consumer-demand-scenario-post-covid-19-crisis-likely-to-remain-gloom.html "Global EMI Shielding Market Significantly Hit By Lack Of Consumer Demand; Scenario Post Covid-19 Crisis Likely To Remain Gloom") nation. Growing used to accessing products, information and services with the tap of a card or touch of a finger, [consumer expectations](https://www.financedigest.com/keeping-up-with-heightened-consumer-expectations-in-financial-services.html "Keeping up with heightened consumer expectations in financial services") of businesses are higher than ever, with speed and simplicity a key driver. The public wants easy, fast and efficient service and they want that wherever they are and whatever they’re doing, with as little input or effort on their behalf required. For retailers, this [puts them under enormous pressure](https://www.financedigest.com/analysis-war-in-ukraine-puts-pressure-on-east-european-banks-to-prop-up-sinking-currencies.html "Analysis-War in Ukraine puts pressure on East European banks to prop up sinking currencies"). In short, the rise of the digital age has seen loyalty wane, particularly those smaller, local businesses who lack the investment, infrastructure and/or time to [develop retention strategies](https://www.financedigest.com/yves-mirabaud-says-we-are-on-track-with-our-development-strategy.html "Yves Mirabaud Says “We are on track with our development strategy”"). But when these strategies are implemented, they’re all too often hit and miss. Just by sending email blasts to large databases is akin to throwing spaghetti at the wall and hoping it sticks. Those days are behind us; customer loyalty programs are moving towards data-guided decision-making and a [single customer view](https://www.financedigest.com/insurance-marketing-is-more-targeted-with-the-single-customer-view.html "Insurance marketing is more targeted with the single customer view"). **Getting personal with your consumers** The [key to success](https://www.financedigest.com/is-automation-key-to-esg-success-in-the-banking-and-finance-sector.html "Is automation key to ESG success in the banking and finance sector?") lies in making offers personal. People want to be rewarded and recognised for their loyalty but actually those rewards have to be relevant as well. If you’re a vegetarian with “20% off all meats” offers flooding your email, phone and letter box, this isn’t going to incentivise you to shop at that outlet. Retailers should be creating the right offers at the right [time with the right value; consumers like to be communicated with more directly and interactively today, and be part of what we like to term the ‘membership economy’](https://www.financedigest.com/automotive-timing-chain-and-belt-market-to-be-valued-at-us-10-20-bn-by-2027-comprehensive-research-report-by-fmi.html "Automotive Timing Chain and Belt Market to be valued at US$ 10.20 Bn by 2027 – Comprehensive Research Report by FMI"). Consumers now _expect_ VIP membership as part of a loyalty scheme, part of a club which delivers constant rewards that feel tailored to them. One which isn’t open to all, rewards them for their custom and encourages them to stay loyal. But it should also offer them a _choice_ too, whether that’s points, discounts or experiences. The more diverse a retailer’s loyalty offering, the more likely a consumer will be to take up the offer and make a return purchase. **Points are a 2017 currency** There is a [sentiment among](https://www.financedigest.com/sentiment-among-german-exporters-falls-for-third-month-in-a-row-ifo.html "Sentiment among German exporters falls for third month in a row -Ifo") consumers that points are seemingly antiquated and an outdated means of loyalty; in any case, we’re living in an age of experiences and ‘moments’ aren’t we? But in fact, it’s probable this view is largely held when points came into disrepute years ago when you needed thousands to get a percentage off something you didn’t actually want (e.g. Barclays old rewards catalogue). Nowadays, points are a currency. Consumers are now able to collect points and exchange them for monetary vouchers, with the freedom to spend on any product they like. If the business is a trade one, they get exchanged for Amazon vouchers, who of course are more than likely to [sell the product](https://www.financedigest.com/itv-shares-jump-on-reports-it-could-sell-stake-in-production-arm.html "ITV shares jump on reports it could sell stake in production arm") the customer is after. If that doesn’t appeal, many [retailers are now signing up to the option](https://www.financedigest.com/analysis-u-s-retail-traders-pile-back-into-options-as-meme-stock-mania-flares.html "Analysis-U.S. retail traders pile back into options as meme-stock mania flares") of allowing a customer to donate to a charity of their choosing. This would have been unheard of when, for example, the Nectar card was introduced in 2002. Customers want flexibility, and nowadays this is exactly what they’re able to get. **Putting customers first** In uncertain times for many retailers, any avenue to gain customers and keep customers is welcome. Loyalty – for what it’s worth – is threatening to disrupt [big retailers](https://www.financedigest.com/uk-retail-sales-jump-unexpectedly-but-big-picture-bleak.html "UK retail sales jump unexpectedly, but big picture bleak") thanks to the expectations now placed on speed of delivery. For many smaller, independent and local retailers looking for a slice of the action, that loyalty can still be maintained through a robust and [considered programme that’s open](https://www.financedigest.com/volvo-car-considers-opening-third-plant-in-europe.html "Volvo Car considers opening third plant in Europe") to everyone, but personalised and tailored individually. As consumers today become increasingly demanding of what they buy, how they buy it and how their loyalty is rewarded, it’s important for retailers to acknowledge that the [importance of a customer-centric loyalty programme that rewards](https://www.financedigest.com/why-is-employee-reward-and-recognition-so-important.html "Why is employee reward and recognition so important?") the shopper first. It’s a massive [opportunity for smaller businesses](https://www.financedigest.com/autonomous-vehicles-market-emerging-growth-analysis-future-demand-and-business-opportunities-2026.html "Autonomous Vehicles Market Emerging Growth Analysis, Future Demand and Business Opportunities 2026") and one that should be embraced. After all, converting customers to loyal engagers means both parties reap the rewards: great offers and increased sales. Loyalty still matters. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---