The success of any business is majorly defined by its customers. More of which is characterized by winning the loyalty of the customers. On one hand where acquiring the new customers are important, retaining the existing the ones also holds the same degree of significance.
This is where customer loyalty solutions come into play.
The theoretical logic behind the application of loyalty programs is to motivate customers to stay dedicated to the retail businesses. However, for most business enterprises, it does not necessarily turn out that way. They struggle in the creation of unique and relevant programs to promote their brand and in building brand affinity, particularly due to the lack of insights on the customers’ buying patterns. Despite having multiple loyalty programs in place, they fail to convert one-time buyers into repeat purchasers. According to a SAS Insights study, the effectiveness of loyalty programs is only marginal – 6.5 out of 10. It might be right to infer that an increase in the number of loyalty programs is in some way creating unintended consequences for the retail businesses.
The retailers aiming to create a unified consumer experience need to focus on leveraging the overall experience of customers across all channels before utilizing/ implementing loyalty solutions in consumer retention activities. However, for most retail businesses, consumer data resides in segregated and isolated sales, marketing and support silos, making it difficult to generate a holistic view of the customer, thereby failing to present a unified experience. The application of big data analytics solutions
