With Black Friday just over a week away, less than one fifth (17 per cent) of UK retailers will enter shoppers into a loyalty programme to keep them coming back after the sales are over. That’s according to new research from Emarsys which surveyed over 100 UK retailers.
With the sales only lasting for a set period and the same low prices being offered to every customer, additional research of 7,000 consumers shows that retailers in the UK could be missing a trick by not focusing on price more regularly to keep shoppers faithful. With over half (58 per cent) of consumers admitting they would switch products if a cheaper option became available and a further 45 per cent staying loyal to brands purely for discounts and rewards, it’s clear that deals are a strong driver of loyalty. But Black Friday isn’t just about those new customers.
As Payal Hindocha, director customer engagement solutions GTM at Emarsys explains: “While loyalty programmes are a great way to keep new shoppers returning after the Black Friday sales are over, it’s worth remembering your long-time customers as well. The shopper who came in for a deal and was signed up to the loyalty programme may never shop with your brand again, but the customer who has been with you for years and has high lifetime value might not even be part of this programme.
“With such a lack of connected customer insights, it’s difficult to make a loyalty programme a success. Instead, working out how to personalise these deals, from controlling who sees what reductions to deciding exactly how much of a discount each person receives, is a key strategy.
“Targeting a customer with the right incentive, at the right time, and on the right channel drives first-time to repeat purchases, and ultimately, creates more loyal customers. Having sight of this means your most dedicated customers feel valued and you do not risk eroding the potential lifetime value of the people who shop with you. “
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