With persistent inflation and the ongoing cost of living crisis impacting retailers – especially grocery retailers – worldwide, can loyalty programs really make a difference in terms of customer retention, engagement and spending?
Rising inflation, a continuing cost-of-living crisis and evolving consumer expectations and behaviors are presenting retailers with both significant challenges and new opportunities, according to a new loyalty survey report from Eagle Eye, a global digital marketing technology company that helps retail and hospitality companies build more personalized relationships with their customers.
Eagle Eye’s report, based on a survey of over 1,300 consumers and nearly 200 loyalty program managers in North America, Asia, Australia and the UK, examines what consumers look for in a loyalty program, what brands are currently investing in and what retailers should be focused on to engage shoppers.
Among the report’s overarching findings are three areas of opportunity for retailers to engage customers, using their loyalty programs to improve the experience and keep shoppers coming back: advanced personalization, Marketing in the Moment and gamification.
“This is an uncertain environment for retailers, but consumers are also primed to appreciate the value of loyalty,” said Tim Mason, CEO of Eagle Eye. “Grocery retailers are uniquely positioned to use their loyalty programs to deliver the savings their customers demand and the experiences they’ve come to expect.”
Key findings highlight the value of grocery loyalty programs
The report, Grocery’s Great Loyalty Opportunity, reveals that 58% of consumers are eating and drinking out less as a direct response to inflationary pressures, highlighting the opportunity for grocery retailers to engage with their customers more effectively to reap the benefits of increased grocery spending.
Other report findings reveal that:
- 84% of consumers believe personalized recommendations will help them save at the shelf
- 71% of consumers would either consider buying a product or find the information helpful if they received a promotion or offer while shopping in a store
- 66% of consumers would participate in games, contests or challenges through a company’s loyalty program
- 64% of consumers are buying more items on sale
- 69% of consumers state “value” as being the top benefit they want from a loyalty program
- 54% of loyalty program managers said they plan to make it easier to earn and redeem points through the loyalty program in the next 3-6 months
These data points and others in the report illustrate why retailers should prioritize creating a grocery loyalty program that gives consumers what they want: value and personalized experiences.
Retailers that can successfully use personalization to make their customers’ lives easier, execute one-to-one communications at precisely the right moment for the right individual and incorporate gamified interactions that improve the overarching experience will be those that will win their customers’ loyalty, even in these most challenging of times.
Download Eagle Eye’s global loyalty survey report, Grocery’s Great Loyalty Opportunity, here.
For more information about the company’s survey report or to schedule an interview with Eagle Eye CEO Tim Mason, please contact Vanessa Horwell at [email protected].
About Eagle Eye
Eagle Eye is a leading SaaS technology company transforming marketing by creating digital connections that enable personalised performance marketing in real time through coupons, loyalty, apps, subscriptions and gift services. Eagle Eye AIR enables the secure issuance and redemption of digital offers and rewards at scale across multiple channels, enabling a single customer view. We create a network between merchants, brands and audiences to enable customer acquisition, interaction and retention at a lower cost while driving marketing innovation. The Company’s current customer base comprises leading names in UK Grocery, Retail, Leisure and Food & Beverage sectors, including Asda, Tesco, Waitrose and John Lewis & Partners, Virgin Red, JD Sports, Pret A Manger, Mitchells & Butlers, Pizza Express; in North America, Loblaws, Shoppers Drug Mart, Southeastern Grocers and Staples US Retail, and in Australia & New Zealand, Woolworths Group and The Warehouse Group. Visit www.eagleeye.com for more information.