Retail Trends

How can technology help retailers build customer loyalty?

2 min read

Customers no longer enter from a single channel, so today retailers need to listen to all their channels to really know their customers and connect with them to know how and when to contact them.

It is clear that the basis of loyalty is trust, something that is not easy to achieve and, in turn, is easy to lose. To build trust that doesn’t evaporate, we need to connect with consumers and convey that we understand them and are there for them, creating a closeness that doesn’t depend on a discount alone.

A study by Mediapost and the Spanish Marketing Association shows that only 8% of Spanish consumers declare themselves loyal to a brand, which begs the question: How can retailers build consumer loyalty?

There are as many strategies as there are brands and products, but they all have a common denominator: consistency. Be coherent with the message and continue to be committed to your own identity in all channels of communication and interactions with your customers.

Loyalty programs

Implementing a good loyalty program will help you get closer to your best customers and to understand them better, offering valuable data to reinforce and adapt your loyalty strategy. If you do not yet have an effective loyalty program, here are the main pillars on which to base your strategy:

  • Know your customers. This is essential. It requires access to a detailed customer information, and continuous data analysis to adjust your program conditions and benefits along the time.
  • Tiered programs. Adapt your program to different customer groups with tiers or categories adapted to their shopper profiles and that motivate them to move to the next level.
  • Offer a clear benefit to your customers, something that is easy to understand and has real value for them. To do this you can rely on technology to understand their real needs and find that benefit.
  • Go beyond economic benefits. Today customers expect much more than simple economic benefits. Consider to offer them emotional and social benefits.

Social networks as a loyalty tool

Social media marketing is no longer an option, it is a necessity and once again, your brand is the key.

It is important that your consumers can identify with your product or service, but it is also important that they feel part of it.
Connect by encouraging the creation of content by your customers, sharing their stories and experiences, making them part of your launches… create a community. The feeling of belonging is a great loyalty tool and the strongest of them all.

Better in-store experiences

Loyalty doesn’t stop at the online and social media part. Even if the buying process starts in a digital channel, consumers will be looking for an in-store experience that is connected to the one they have online and the one they perceive through your social networks.

To increase store visits and drive customer loyalty, retailers will need to focus on delivering personalized customer service and the kind of rich, immersive shopping experiences their customers expect. This may be facilitated by the adoption of solutions such as a mobile POS, equipped with clienteling capabilities to offer an enhanced service to customers everywhere in the store, to a combination of different technologies such as digital signage, smart mirrors, virtual fitting rooms and augmented reality.