“Ninety percent of leisure and hospitality companies (and more than 60% of all companies) offer some type of loyalty program — and yet, it’s not at all clear that these programs actually work.” - Harvard Business Review.
According to Harvard Business Review, by only targeting the highest-spending shoppers for loyalty programs, marketers may be losing out on a group which has a higher conversion value. Researching and focusing on those shoppers most likely to be vulnerable to competition, and offering them loyalty programs and promotions, is likely to increase ROI.
Location data is an important measure for identifying potential new customers and utilizing loyalty programs as a way to gain better ROI. However, there are other metrics which will assist in the process without making it difficult. Targeting promotions towards those customers who will bring the highest ROI and continued loyalty, as opposed to the ones who are already high spenders, should be the main focus of companies offering loyalty programs.
Read the full article here.