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Talking With: ShopperTrak Revenue Chief Kevin Kearns on loyalty program trends
Developing and implementing a customer loyalty program is at the top of most retailers' to-do list as a strategy for boosting customer experience. But loyalty approaches are not all created equally.
April 19, 2016 by Judy Mottl — Editor, RetailCustomerExperience.com & DigitalSignageToday.com
Developing and implementing a customer loyalty program is at the top of most retailers' to-do list as a strategy for boosting customer experience. But loyalty approaches are not all created equally and customization and personalization can be the difference between a crash and burn scenario and a rewarding experience for both retailers and consumers.
Retail Customer Experience tapped Kevin Kearns, chief revenue officer at ShopperTrak, to get insight on what's happening in customer experience, loyalty programs, best approaches in capturing consumer attention as well as reaching specific customer groups, such as millennials, and implementing mobile apps.
Retail Customer Experience: What do you see as the top customer loyalty trend taking root this year?
Kevin Kearns: I think retailers are realizing the importance of diversifying their techniques to drive loyalty. In this increasingly competitive environment, cost-cutting and discounts are not the path to brand longevity. Retailers are making it a focus to investigate technologies that help them better understand and connect with consumers in order to drive loyalty.
RCE: Today's retail consumers are mobile which means extending loyalty from brick and mortar interaction/connection via the device in hand. What is a quick and easy way to get that in place and maybe what is the top no-no of what not to do?
Kearns: Developing customer loyalty isn't something that's accomplished quickly or easily. Rather, a retailer should fully define the goal of a program and, based on their understanding of core shoppers, architect their approach. A big misstep is to make reduced prices the core method to generate loyalty. While shopper visits may spike during a promotional period, too many sales will not only devalue a brand, but they also attract the type of shopper who is strictly loyal to price, not brand.
RCE: Building loyalty programs isn't something that 'ends,' and extends way beyond reward cards but do most retailers realize the importance of a strong and evolving loyalty program?
Kearns: There are several retailers that are clearly excelling at their loyalty programs, especially those that have a strong grasp of their value proposition and its relevance to core consumers. For example, Neiman Marcus' InCircle program focuses on experience and service, as opposed to discounting, because that is what speaks to their shoppers — it goes far beyond a card swipe at the point of purchase. That is a vital part of any loyalty strategy today. Due to recent evolution in the industry, retailers realize the importance of attracting shoppers; however, many are still working on piecing together their approach to generate and sustain loyalty.
RCE: What should be the prime focus of a loyalty program or is that dependent on the retail industry?
Kearns: The ultimate goal of any loyalty program should be to retain customers. As noted in a report by Cognizant, acquiring a new customer can cost up to five times as much as retaining an existing one. Thus, retention demands a retailers’ attention. The core objectives of such a program — engagement, in-store visits, brand advocacy — differ based upon the vertical, as well as the brand and audience, but the desired goal is the same.
RCE: Is there any common misconception retailers have about loyalty?
Kearns: Think of loyalty like dating: first impressions are everything. Retailers should work to cultivate loyalty from day one. This means getting the basics right — ensuring a positive in-store experience through adequate staffing levels, knowledgeable store associates, and product availability is paramount.
About Judy Mottl
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