How can our loyalty cards be used to win back previously faithful customers?

As the recession has hit, getting customers to be brand loyal is trickier than ever because they are now willing to spend time cherry picking and shopping around for the best deals across several different stores.

The problem many retailers face with the implementation of their loyalty card schemes is that they reward every card holder exactly the same – regardless of whether they shop there once a month or twice a week. “Shopping needs to be a more rewarding experience,” says The Continuity Company general manager David Ringer. “By rewarding everyone exactly the same, you’re also rewarding the cherry pickers equally.” He advises retailers to look at how to better incentivise those shoppers who spend the most. This doesn’t have to be a cash reward necessarily, but can also comprise rewards in kind such as licensed merchandise.

“It’s important to look at how to target your marketing spend and budgets, rather than rewarding everyone the same,” says Ringer.

He adds that in the present climate, although value is important, price discounting can only go so far. In the long term, Ringer says discounting will not help to build brand loyalty because there is little differentiation and the retailer has created a precedent. Used well, loyalty programmes that offer added benefits such as rewards not only help retailers to lock in high-value customers and convert the cherry pickers to loyal shoppers, it also helps protect the brand.