Leveraging Loyalty Programs
salers are increasingly turning to card-based programs as a means to reward, and retain, their most loyal -- and most profitable -- customers.
Do you currently offer a card-based electronic shopper-loyalty program?
Total Retailers Wholesalers
Yes 51.0% 47.9% 60.9%
No 49.0% 52.1% 39.1%
Growth prospects for frequent-shopper programs look strong, with more than half of respondents planning to either launch or expand a customer-loyalty program.
Do you plan to launch or significantly revamp your shopper-loyalty program in 1999?
Total Retailers Wholesalers
Launch a Program 15.1% 12.7% 22.2%
Revamp/Expand
Program 38.4% 36.4% 44.5%
No Plans 46.5% 50.9% 33.3%
Most respondents agree that their frequent-shopper programs are a worthwhile investment, with retailers expressing higher satisfaction levels than wholesalers.
How would you rate your frequent-shopper program in terms of meeting your expectations?
Total Retailers Wholesalers
Highly Successful 55.1% 60% 42.9%
Moderately Successful 42.9% 37.1% 57.1%
Not Successful 2.0% 2.9% N/A
While the largest percentage of respondents will continue to use frequent-shopper programs to retain top customers, companies are also planning to put a strong emphasis on winning new customers and boosting total gross margins.
What will be the primary goals of your frequent-shopper loyalty program in 1999? (Multiple responses allowed.)
Total Retailers Wholesalers
Retain Best Customers 70.9% 70.0% 73.3%
Win New Customers 56.4% 52.5% 66.7%
Boost Total Gross Margins 41.8% 42.5% 40.0%
Other 1.8% 2.5% N/A
Were the primary goals of your frequent-shopper loyalty program in 1998? (Multiple responses allowed.)
Total Retailers Wholesalers
Retain Best Customers 89.4% 94.1% 76.9%
Boost Total Gross Margins 25.5% 17.7% 46.2%
Win New Customers 25.5% 23.5% 30.8%
Other 2.1% 2.9% N/A
As companies continue to explore the shopping patterns of their loyal customers, the areas that companies pay the closest attention to are frequency of visits, response to targeted promotions and market-basket size. Half of all respondents also examine market-basket margins.
If tracking point-of-sale data as part of your customer-loyalty program, what types of shopper-specific information do you consider most important? (Multiple responses allowed.)
