Retailers Ramping Up Loyalty Programs

Most retailers are considering launching premium loyalty programs for 2021, says a study by Clarus Commerce. The premium loyalty program provider says the pandemic shifted more than just the retail landscape, it changed everything about consumer loyalty. Now, with retailers fighting for shopper attention and spending, they will need to offer a truly unique loyalty program to provide more value this year. That’s why 95 per cent of retailers with traditional loyalty programs have discussed launching a premium loyalty program in 2021. Additionally, 90 per cent say enhancing or expanding their loyalty program is a priority for 2021. From the retailer perspective, premium loyalty programs are more profitable. The study says 82 per cent of retailers with a premium loyalty program rate the profitability of their program at an eight or above (out of 10). But even more significant, more than half (56 per cent) of premium loyalty retailers consider loyalty members to be at least four times as valuable as regular customers. As well, retailers that offer benefits sooner experience faster return on investment (ROI) with more than half of respondents (56 per cent) who offer benefits within the first week seeing ROI within the first six months.