New research from American Express reveals shoppers are becoming increasingly discerning when it comes to winning their loyalty – with retailers responding by prioritising new tailored ways to attract and retain customers.
The survey of both UK consumers and retail decision makers reinforced that generic offers and incentives are not enough to win over new customers, and don’t positively impact long term loyalty. Over seven in 10 shoppers (73%) said when they receive offers like this via email, they tend to go unused. Almost three quarters (74%) said they now expect offers to be personalised to them, for example, linked to products they’ve previously bought, and based on their previous interactions with the brand, or delivered at the right time, e.g. a birthday or following a recent purchase.
With consumers now seeking out tailored offers and services at every touchpoint, for retailers this means putting personalisation at the heart of their customer engagement strategy. The vast majority (93%) of UK retailers surveyed acknowledge that appetite for offers has grown within their customer base over the last 12 months. They’re taking concerted action, with personalisation being crucial; 94% of retailers said their top priority for the year ahead is ‘making customers feel like we really know them’. About a third (31%) are looking to launch a new offers or loyalty programme over the next year.
The consumer research revealed a particular appetite for card-linked offers – digital offers from retailers which are directly linked to a particular payment method like a credit card, with three quarters (74%) saying if a retailer gave them an offer like this, they’d choose them over an alternative retail brand that doesn’t, and two thirds (67%) said they’d be likely to spend more.
Dan Edelman, general manager, UK Merchant Services at American Express, said: “Consumers have increasingly high expectations when it comes to being rewarded for their spending. Our research shows retailers recognise the need to respond to this demand as they focus on attracting and retaining customers. Card-linked offers such as Amex Offers can be a compelling solution for merchants – providing a strategic and efficient addition to marketing programmes, whether incentivising first-time purchase, driving up transaction values, or helping to build long term loyalty.”
