When it comes to loyalty, there is a certain urgency around the subject.
Loyalty is harder than ever for retailers, so it’s more important than ever to protect your best customers.
With the help of technology, your customers can easily shop the best prices. Whether it’s Amazon, one of the DTC brands that keeps popping up, or your direct competitors, everyone is fighting for your customers.
Brands should constantly evolve and consistently offer differentiated value, more choice, and a superior experience to generate repeat purchases.
Most large programs, whether in retail, financial services, or travel, offer the same broad lineup of redemption options.
That’s why you need to give your customers a better experience that they can’t get anywhere else. And that’s why it’s critical to start thinking about a premium loyalty solution.
Here are three reasons to consider a premium loyalty program sooner than later.
1. Your Best Customers Want a Premium Loyalty Tier
According to the 2019 Premium Loyalty Study, more than half of all survey respondents (58%) currently belong to a premium program while just under two-thirds (65%) of those who belong to a paid loyalty program plan to join additional programs in the next 12 months.
And 31% of consumers say they have yet to join a premium loyalty program because the retailers they shop with don’t offer them.
It’s no surprise considering the instant culture we live in.
Loyalty is no different. While traditional loyalty programs reward slowly, premium loyalty programs provide value from the start.
It is apparent that consumers want to be members of premium loyalty programs. That’s why they are gaining in popularity. So, roll out the red carpet for your VIP customers!
2. You’ll Have the First-Mover Advantage
While more and more of these programs continue to be rolled out by big retailers, there are still categories in which no brand is offering them.
Being first enables you to establish strong program recognition and loyalty before competitors enter the arena.
Nearly nine in 10 (86%) consumers who are satisfied with the special benefits offered by a retailer’s premium loyalty program will likely choose that retailer over a competitor that is offering a lower price.
That’s not to say it’s impossible for you to take advantage of premium loyalty in categories in which they currently exist.
But retailers who are the first to offer premium loyalty programs in their respective categories will have a first-mover advantage.
3. Retailers Want to Protect Their Best Customers
Your best customers are directly responsible for most of your sales.
If the 80/20 rule (80% of your sales comes from 20% of your customers) is an accurate gauge, you can see why retailers want to protect their best and most loyal customers.
You need to give consumers a reason to engage with your brand. And a premium loyalty is a great reason!
Brand differentiation can’t happen at the product and price levels alone.
Because they have limitless options today, consumers can easily find a better product and/or lower price. But a premium loyalty program can become part of a person’s daily life.
Traditional loyalty is transient; premium loyalty is a true commitment.
Building true loyalty requires brands to offer unique experiences that aren’t available anywhere and add significant value to their lives.
To know what experiential benefits will work for your customers, you must first know and understand what your customers want.
That’s where the opportunity to differentiate comes enters the picture.
Retailers not only want to protect their best customers but cater to them by offering the best their benefits and experiences their respective brands have to offer.
The Time Is Now for Premium Loyalty
For retailers considering a premium loyalty program in 2020, the time is now to begin the due diligence process.
There’s a lot to consider with premium loyalty.
From build to optimization to billing, you need a team that knows how to manage fee-based membership programs. Luckily, we have almost two decades of experience in helping retailers launch and manage successful programs.
Learn more about premium loyalty here.
The customer enjoys the best of the brand, all the time, because data collected on shopping habits and personal interests can all be used to personalize the experience of each member, and the membership fees can offset better benefits.
Treating your best customers better will reap huge results from a loyalty perspective.
Isn’t it time for your customers to experience premium loyalty?