How Retail Benefit from a Card-Linked Strategy
Successful retail businesses are highly interested in their customers, and the best managers are in tune with their customers’ needs and preferences. Retailers should deeply understand that consumer sentiment is constantly changing and can shift towards another aspect at any given time. The latest trends, ups and downs in the economy, and even heightened sense of competition can ultimately disrupt a business’ forecasted revenue.
Bigger businesses with more experience in the industry have already realised that their ultimate weapon to avoid disruption is to continuously offer the two things that every consumer seeks out : value and convenience. Large businesses use plenty of strategies to help their revenues, as seen in their planned marketing strategies. They offer loyalty programs, vouchers, free deliveries, and even in-store benefits. These small efforts combine and in return, businesses increase their lifetime value while driving customer loyalty and reducing customer acquisition costs.
The Essence of Loyalty Programs
Loyalty programs have been utilized by the entire economy because they are effective tools that help businesses generate consistent consumer spending. However, the specific forms of programs constantly change as time passes by.
A few years back, loyalty programs were limited to rewarding and promoting additional purchases. However, today’s consumers are rewarded for various actions, and there is a current trend where businesses with the most diverse loyalty programs generate the most success.
For example, Starbucks is a well-known business that utilises plenty of loyalty reward programs. They focus on the digital aspect of the market, by providing reward applications through consumers’ mobile phones.
They engage with their customers in multiple ways such as convenience, monetary rewards, and even additional content.
The Problem with Traditional Loyalty Programs
In the business world, it actually costs up to 5 times more to get a single new consumer than it does to retain one.
Retailers can easily see the value of loyalty programs in their businesses. On average, loyalty program members are 12% to 18% more likely to generate revenue than non-members, and they are also more prone to be regular customers. Retailers can easily determine their consumers’ statistics on buying habits just by taking a look at their loyalty program members and non-loyalty program members. They can even discover an underlying pattern between their business’ loyalty programs and better lifetime value with repeated business.
However, traditional loyalty programs pose certain challenges, such as maintaining the enticement and measurement of a business’ consumers on a micro level. To be more specific, it actually measures exactly how their loyalty program incentives actually influence their consumers’ specific purchase behavior.
Did the customer really choose their business because of their rewards or because it was near? Or did the customer choose the item because it is part of the reward program or did they really need the item in the first place?
Why Card-Linked Strategy Works
A business’ loyalty program’s overall value is quite easy to perceive from the retailer’s perspective, but the consumers’ perception could be quite tricky.
There are different types of customers, and saving money can sometimes seem arbitrary. Their discounts are listed at the lowest part of their receipt, and customers don’t see the demonstration of the loyalty program’s value.
Based on recent studies, almost half of retail customers actually don’t feel that they are valued by retailers — because they can’t see their savings. Discounts and sales supposedly let them save money, but that does not necessarily mean that they feel the reward.
But with Card-Linked Strategy, consumers automatically feel the convenience and value that comes with the reward program. The value of the loyalty offer is felt on both ends of the transaction!
Card-Linked Strategy is an essential aspect that actually helps consumers feel the reward program offered by a business. By participating in a Card-Linked Strategy, customers experience the value of having their cash back in their possession, which helps track a program’s results on a micro level.
On the side of the retailer, there is a deeper level of a detailed analysis with the use of linking offers directly to a consumer purchase behavior, mostly because attribution is instilled into their product.
Another benefit that a Card-Linked Strategy gives retailers is that it could be the perfect way to encourage prospective customers in taking part in their business’ loyalty rewards program. A CLO could be used as an incentive for new consumer store visits, which allows a business to convert a non-customer to a loyal consumer.
On the side of the consumer, discounts are directly deposited back into their linked account. Unlike traditional discounts where consumers just pay less, a Card-Linked Strategy gives the consumers an actual sense of saving because they could see their money go back to their account. Retailers should also know that loyalty points-based programs are not doing as great as they did, but cashbacks programs are on the rise.
The Bottom Line
The bottom line is that retention is the sole driver for customer evangelism and lessened acquisition cost. As the growth of both ends increase, brands should also focus on adapting to the ever-changing environment of the industry. They have to constantly be updated in the latest trends and technology to continue fighting for their customers’ loyalty.
Using a Card-Linked Strategy is probably one of the best ways to thrive in today’s market. By leaning on the technology that credit and debit cards offer, businesses can adapt without having to change their consumers’ buying habits.
Tapit is an excellent platform that offers Card-Linked Strategy programs that are extremely beneficial fo rbusinesses. At Tapit, our business partners enjoy their convenience and continuous growth in revenue.
We help numerous businesses to address value and convenience — two of the most quintessential aspects of retaining customers. By offering Card-Linked Strategy programs, we help them garner the best form of customer loyalty for a long-term profit.
At Tapit, we provide loyal customers with the use of Card-Linked Strategy. Businesses get more sales from their loyal customers as they buy more, refer more, and expand their purchasing habits into new categories — leading to an increased overall lifetime value metrics.