March 31, 2015

Reinventing loyalty programs for the digital age


While retailers continue to invest heavily in loyalty, many are failing to successfully engage digital customers, with only 24 percent of loyalty programs allowing redemption through mobile, according to a new report from Capgemini.

The report, Fixing the Cracks: Reinventing Loyalty Programs for the Digital Age, found that critical tactics for driving value among digitally enabled consumers are being ignored, resulting in only 44 percent of loyal program memberships being active and a large percentage of the $2 billion invested in loyalty ending up wasted. Beauty retailer Sephora is pinpointed as an example of a marketer that is successfully engaging its customers via a mobile-driven loyalty strategy.

“It’s surprising how few retailers had integrated the loyalty experience into their mobility strategy and vice-versa,” said Mark Taylor, global lead for customer experience transformation at Capgemini Consulting. “We found that only 24 percent of loyalty programs actually allow redemption through mobile.

“The mobile device should be the hub of a customer’s relationship with a retailer,” he said. “The expectation on the part of consumers is that the loyalty program be a fully integrated part of their experience with the brand.

Get the full story at Mobile Commerce Daily and download the report at Capgemini Consulting