Are Loyalty Schemes Broken? Be Interactive Pty Investigates

    BRISBANE, AUSTRALIA, August 27, 2016 /24-7PressRelease/ -- Loyalty programs are structured marketing strategies designed to encourage customers to continue to shop at or use the services of businesses associated with each program. The retailer will determine the features and rewards schemes on each loyalty card. With all businesses looking to improve ROI, Be Interactive Pty has studied research by consultancy firm Rare on successful loyalty schemes.

About Be Interactive Pty: http://www.beinteractivepty.com/aboutus/

Businesses are in a constant battle with competition to retain customer loyalty. With trust and likeability being the two determining factors when a customer considers repeat business, Be Interactive Pty urges business owners to revaluate the effectiveness of their loyalty schemes. There is a belief that loyalty schemes are encouraging bad consumer behaviours. With a reported GBP5.2 billion sitting in unused loyalty card value, it was found that only Starbucks and Amazon Prime deliver above expected results from their loyalty schemes.

Ben Pask, founder of Rare was quoted, "Explicit drivers, in terms of loyalty schemes, are not driving value for [brands] in the right way - they are not incentivising the right behaviour or enticing people to come back." He refers to brands' understanding about what attracts customers to their business and marketing towards that individual in the most effective way.

Rare's study of 1000 consumers found that many of the high street's loyalty schemes are under-performing across four key metrics including ease of use, purchase experience, delivery on promise and personalisation. Be Interactive Pty urges businesses to assess if their loyalty schemes are delivering in line with brand promises. Starbucks are a great example as they are able to extract consumer data and communicate directly with the consumer in-between purchases.

Be Interactive Pty is an ambitious direct sales and marketing firm based in Brisbane. The firm works on behalf of brands, organising and running engaging face-to-face campaigns designed to boost sales and improve customer relationships. To maintain growth and continue to deliver exceptional results to clients, the firm are always developing new ways to personalise their consumer service. The firm specialises in face-to-face on-site promotions as this allows the service to be directly tailored on-site to suit each individual consumers. Be Interactive Pty often reports live market research for their clients throughout all stages of promotion.

SOURCE: https://www.marketingweek.com/2016/07/13/are-loyalty-schemes-broken/

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