Customer reward: Retail strategy

The trend of implementing rewarding systems adopted by Retail industry was first born in 90´s in food industry and expanded after in others industries. One of the most popular customer rewarding methods is the points collection, but, unfortunately can be also used by other competitors and for this very reason will not generate a great advantage in the costumer eyes. Another method is the customer data collection. In these case, the Retail Marketing office can design for each customer a precise profile and more over can even create a reward strategy made by measure.Usually, even the best customer doesn´t spend more than 70% of his budget in his favourite store. For these reason the growth margins are large and easy to manage, due to the frequent influence to whom the customer is exposed in his regular store.

This way of thinking entails Retailers to focus on some costumers rather than others, trying to bring more benefits to loyal customers and focus less on occasional costumers. This method is the opposite of collection point method who treats all customers equally as regards special promotions.
For these reason is important to create initiatives which will generate real advantages, continuous innovation in order to keep customers coming back.
In order to identify the weaknesses and strengths that will help achieve a higher loyalty level, it is very important to focus on customers shopping experience and listen to the feedback.

As far as concerns rewarding, according to a study conducted by Affinion and Oxford Brookes Universitywomen are most likely to be Brand loyal, especially those under 35; while the lowest level of brand loyalty was notice on customers over 65.
With 3 points over the average, Italy was third on the international brand loyalty classification; United States and Brazil were rated #1 while DenmarkNorwaySweden and Finland were among the lowest-ranking.

As has already been shown, the costumers between the ages of 25 and 34 years are most likely to be loyal compared to those who use only one channel to communicate with the company.
However, the key element in choosing a brand /company is a good business reputation: from here arise the need to build a strong customer relationship by rewarding them.


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