How Loyalty Cards will help sustain the FMCG market in Europe
Published on : Nov-2022
In today’s world, the tastes and preferences of consumers are heterogeneous and dynamic. Loyalty cards provide an exceptionally substantial opportunity for businesses in Europe to keep shoppers returning again and again to their stores, establish real inclination towards a retailer and possess the largest market share in which they are operating while optimizing the yield on their marketing expenditures. Fatpos Global attempts to provide the client with a clear insight of the market and obtain details like innovations that attract customers, actions that induce their coming back, and prestigious consumer details from the shopper loyalty information.
Purpose of Loyalty Cards
Loyalty programs have emerged as one of the most constructive techniques for increasing sales and stimulating customer loyalty. Out of all surveyed, a significant proportion (85%) told they’re more at ease adopting a brand that offers a loyalty program and 66% of customers admit that the potential to earn rewards alter their spending patterns. It is not an easy task to acquire new customers, thus to maintain the revenues and profits of the firm, it needs to offer certain loyalty programs and rewards to keep the customers attracted. Despite being so productive, customer loyalty programs are an old concept.
Impact of Covid-19 on Shopper’s Loyalty
In the initial times, immediately after the outbreak of the crisis shoppers responded by buying only the essentials, not a specific product or brand in their most-liked store. Also, shoppers were appealed to reduce or avoid touching surfaces and a huge number of steps were added which had complicated the entire situation, such as plastic walls, etc. Ultimately, a scenario that isn't the atmosphere that pushes an extra card to search. But that may be entirely different with respect to loyalty programs that are integrated into an app – particularly when combined with mobile payment. The next challenge will be financial, as the crisis progresses and products return to shop shelves; many people have lost their jobs or cut their incomes. Shoppers will have to operate on limited funds and we agree that reward programs will have a significant part to play at this time. Stores will depend on them to draw and retain their shopper base, and in effect, shoppers will want to leverage their rewards and points to make their money go even further. Understanding how customers react has always been important if you want to succeed. Today more than ever, it is incredibly important to consider what shoppers want if you'd like to engage with your customers and get them the right deals and be seen to help them in these difficult times.
Fatpos Global predicts the FMCG market is anticipated to register the highest CAGR during the forecast period and customer loyalty will rise. Looking at the current business scenario and the prospects out of such circumstances, the following points should be kept in mind:
Remove the complexities in the use of loyalty offers and: Lengthy enrollment times, rules and conditions that are not always sufficiently clarified (and sometimes changed), technological problems with redeeming awards are all likely to dissuade consumers from making the most of these services and decrease the return on investment by the business.
Specify their purpose: Usually, consumers forget that they have enrolled in a program, lose track of the points they have earned and assume, sometimes based on boredom or confusion, that the incentives on offer are monotonous.
Increase in knowledge and understanding: More than one in three customers who don't subscribe to any loyalty schemes say that is because they don't know any. Among these, many are unlikely to ever enter because they are careful about their privacy or just don't believe in them, but others may not even be aware of the system of an organization.
Freshen them up: Real loyalty is characterized by empathy and emotional engagement, so giving for a good cause, providing an exclusive experience or an unusual deal could be an effective new incentive.
Loyalty services ought to be reliable, but we know customers are fond of information. A successful loyalty program will bring in new and specific benefits that at a fair cost excite customers.
We collect and merge retailer shopper card data with our remaining data to include rich and granular data sets to help the client develop & customized shopper marketing strategies, improve the experience of shoppers, and drive sales growth. The insights given will allow retailers and their key supplier partners to better understand the data produced by retail loyalty programs.