How retail CMOs can adjust to the new definition of customer loyalty

| January 17, 2020 | By

The entire concept of customer loyalty had changed... ...your marketing team needs to think beyond points and stamps. Why are we saying this now?

It’s true that we in the UK love a customer loyalty scheme. Three quarters (77%) say they have joined at least one, seven in 10 believe they are a good way to be rewarded, and nearly half say they’ll spend more with a brand if they are a member of a loyalty scheme (source: YouGov).

However, consider the fundamental goal of a loyalty strategy: to incentivise shoppers to spend more, more often.Loyalty schemes may be popular with the public, but the current state of UK high streets continues to face declining footfall, struggling sales and shop closures - even though 82% of transactions continue to take place in physical stores (source: ONS).This strongly suggests that traditional loyalty strategies – physical cards, points, stamps etc – have become outdated and irrelevant to the 2020 consumer. The concept of customer loyalty as a whole is being transformed.

In this How To Guide, we’ll breakdown what experiences customers now say drive their loyalty and run through five steps that CMOs should take to drive customer retention in 2020.

What now drives customer loyalty?


More than half (54%) of today’s consumers consider customer experience to be the main reason they remain loyal to a retailer (source: DMA), while 89% say they would switch to a competitor following a poor experience (source: Oracle). 

When PwC asked consumers what attributes were most important to their in-store experience, they found 10 simple, familiar, and rather unsurprising demands:

What now drives customer loyalty?

The seven steps that will help CMOs drive customer loyalty in 2020


1. Go mobile

If you want to be fast, convenient and personalised all at the same time, mobile is a no brainer. 

Starbucks was quick to realise this, becoming one of the first brands to deliver an app experience that combined fast mobile payment with automated loyalty and rewards at the point-of-sale.

Tech experts TechCrunch says that one of the major reasons why the Starbucks App has been so successful is because “payments are tied to loyalty”. 

It’s now used more than Apple Pay, Google Pay and Samsung Pay in the US.

2. Analyse pain points and remove them

Nobody likes long queues, being unable to find what they want, waiting ages for the bill, or going through laborious red tape to earn points and rewards. 

Again mobile becomes the answer.

As well as fast payment and automated loyalty, Yoyo enables physical retailers to easily incorporate features like order ahead, pay at table, bill splitting, stock checking and reward stores into a single in-store app experience – all of this giving your staff more time to positively engage with your customers when they walk through the door.

3. Harness meaningful customer data

When it comes to personalisation, customer data is the only way physical retailers have a chance to compete with online. 

But unlike ecommerce, obtaining the right data has proved a logistical nightmare for stores on the high street. 

With nine out of 10 consumers saying they prefer brands that provide genuinely relevant offers, rewards and recommendations, obtaining the right customer data becomes central to a CMO’s marketing strategy.Through Yoyo’s unique API technology, we extract crucial data that reveals the identity of your customer, as well as where, when and what they buy, from the point-of-sale when they use a Yoyo-powered app to pay. 

4. Be quid pro quo with your customer data

Above all, a CMO’s goal is to sell more, more often. The more you know about your customers’ shopping habits, the better you can shape your marcomms strategy. 

However, more than half of consumers (51%) say they need to see a clear benefit exchange for their data (source: DMA). 

Because Yoyo can identity your customers, as well as where, when and what they buy, your customer loyalty strategy gets a personalisation shot in the arm through the ability to reward customers based on their shopping behaviours and preferences.

5. Build meaningful relationships

You now know what your customers like to buy and when. What next? Talk to them in a way you know will suit them best. 

On average, we check our phone screens for texts, emails, social updates, push notifications etc, every 12 minutes of the waking day, so grabbing a customer’s attention at just the right moment is crucial.

Yoyo enables CMOs to segment and target their customers based on the behaviours that actually matter - the way they choose to spend their money.

If you’ve identified a segment of customers who tend to visit your store in the morning on the way to work, you can create an automated campaign that delivers a timely reward or offer. 

This places your brand front-of-mind at just the right moment, while making a customer feel like their being treated as an individual, not just another shopper.

6. Focus on feeling and be spontaneous

“The shopping experience must now entail far more than simply ‘buying stuff’; whether it’s browsing online or in store, retailers must surprise and delight shoppers.” Some challenging worlds featured in Retail Week.

“Surprise and Delight” – it’s a big challenge for CMOs, who are always trying to find new ways to engage with their customers. It’s a challenge Yoyo has been working on for some time and we’re pretty pleased so far.

Through its Yoyo-powered loyalty app, Caffè Nero wanted to surprise their customers over the festive period with prize-filled Christmas crackers every time they bought a hot drink. We launched this campaign for them in 2017 and it’s become a yearly thing since then. 

During the campaign, sales went up 50 per cent! One customer tweeted: “Whoever at Caffè Nero HQ came up with the Christmas cracker initiative on the app has won 2017”. 

Reiterating the power of the right customer data, Yoyo enables CMO to easily create automated Surprise and Delight campaigns that reward customers after they’ve made a certain number of purchases, spent over a certain amount or visited a sister store.

7. Deliver a consistent shopping experience

More than a third of consumers are actually put off by brands that deliver an inconsistent experience across online, mobile and in-store, according to Salesforce. 

If your customers have the option to split a bill, use multiple payment methods, collect loyalty points and redeem a voucher when in-store, a successful omnichannel strategy will deliver the exact same options to customers on their desktops or tablets, as well as a mobile-friendly experience to those using their phone on the move.

Yoyo enables our retail partners to deliver seamless payment and automated rewards to your customers, whether they shop in-store or online. 

What’s more, the more a Yoyo-powered app is used, the more data you capture and the greater your understanding of what generates loyalty from your customers.


If you got this far, why not download our latest report on what the future looks like for high street retail…

Customer Experience the new battleground for high street retailers

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