How Loyalty Programs Drive Return Shoppers

Back to School, Back to the Store Loyalty Programs Drive Return Shoppers Back-to-school season is serious business, with an estimated $72.9 billion retail dollars up for grabs. When it comes to back-to-school shopping, many retailers are failing to use loyalty programs in order to take full advantage of the lucrative back-to-school shopping opportunity. WHAT BACK TO SCHOOL SEASON MEANS FOR RETAILERS Big Spenders How Does Back-to-School Average back-to-school spending for families with children in grades K-12 on apparel, shoes, supplies, and electronics: Shopping Rank Against Other Holiday Seasons? After the winter holiday season, which accounts for more than S601 billion in sales, back-to-school shopping is the second-largest shopping season. $669.28 HOLIDAYS DOLLAR AMOUNTS, IN BILLIONS +5% from last year BACK-TO-SCHOOL/COLLEGE $74.9B MOTHER'S DAY $19.9B VALENTINE'S DAY $17.3B THE SHOPPING $15.9B EASTER SEASON IS ON! FATHER'S DAY $12.7B Back-to-school shopping begins in July and ends around Labor Day. HALLOWEEN $6.9B ST. PATRICK'S DAY $4.8B Source: NRF consumer surveys conducted by Prosper Insights & Analytics *Denotes 2013 survey results Customers 85% of back-to-school shoppers return to the same stores yearly. Value Loyalty Back-to-school loyalty programs drive repeat annual business. 91% would shop elsewhere, however, if a store offered a promotion or reward. 1B+ U.S. retail loyalty program members, according to a Bond Brand Loyalty study Price Matters 66% will sign up for retailer loyalty programs during back-to-school shopping if offered a discount at O oheckout. 53% of customers say cost mainly determines where to shop for school supplies. 72% of customers have loyalty program memberships at 1 to 5 of their favorite retailers. GIVING CUSTOMERS WHAT THEY WANT Although they recognize these loyalty program opportunities, most retailers fail to capitalize on them. Did your business run a loyalty program in 2013 (last year)? 30% Only about 1/3 of retailers plan to run back-to-school loyalty programs this year. NO 70% Are you planning on or running a targeted back-to-school campaign this year? f SOCIAL, PLEASE. 49% YES 34% of customers prefer social media as a means to reap rewards when shopping NO 66% for back-to-school items. Retailers planning to execute loyalty campaigns targeting back-to-school shoppers will use the following methods: 21% 14% 13% 9% 9% 6% SOCIAL PAPER PLASTIC LOYALTY MOBILE APPS OTHER PAPER MEDIA COUPONS PUNCH CARDS CARDS DEVELOPING AN EFFECTIVE LOYALTY PROGRAM As a retailer, you want your new loyalty program to achieve higher sales and stronger customer relationships, but they are more interested in the rewards than the relationship. New to loyalty programs? Here are the top shopper advantages. Targeted deals (member exclusives): Souped-up membership cards: Customers typically only regularly carry 1 or 2 membership cards. Enable them to use credit cards Point-earning Immediate rewards: partnerships: This allows customers to Target your regular shoppers with access Partnership programs between retailers and online shopping portals are becoming increasingly popular, as they allow customers to earn points reap rewards as soon as they sign up. to exclusive sales with customized incentives based on information like their personal shopping habits. or phone numbers as alternatives. from one retailer and redeem them at another. LONG TERM BENEFITS Beyond increasing sales during the back-to-school shopping season, retailers that implement an effective loyalty program can see significant gains for their business in the months and years ahead. 20% 10% Loyalty programs can increase a brand's market share by 20% and improve customer acquisition by up to 10% Email messages sent to loyalty program members result in 40% higher open rates, 20% higher click through rates, and 10% higher sales revenue per message, compared with emails sent to customers who aren't loyalty members. Retailers looking to capitalize on the back-to-school season's big buys have a secret: incentivize academic and holiday shopping needs with membership loyalty programs. Make customers feel rewarded for their purchasing decisions now, and they're likely to remember and return to you in the future. САУАП Sources: Merchant Warehouse, National Retail Federation, Hanover Research