[eMarketer] Loyalty programmes and shoppers' changing behaviours

While setting up the framework for offering loyalty programme remains a challenge for retailers, it has proven effective for retailers to earn new clients while cultivating relationships both short and long term.

A survey by Clarus Commerce that polled 300 US marketing and loyalty professionals as quoted by eMarketer revealed that even as those polled valued the loyalty programme, they struggled with set up with a bulk of the respondents attributing competing priorities as one of the biggest barriers to launching a loyalty program.

Setting of loyalty programmes has become crucial with the outbreak of COVID-19 that has altered consumers’ shopping behavior. In March 2020, Valassis carried a study that revealed how brand loyalty had changed since the outbreak of the pandemic. About 21 per cent of US internet users were purchasing a mix of their usual brands and new ones.

Jeremy Goldman, eMarketer principal analyst, Insider Intelligence: “Last year, brands quickly discovered that loyalty was shifting as a result of the pandemic, because customers were shopping differently and had different needs. This suggests that loyalty programs are more important than ever, but they need to be omnichannel, especially as more people are switching to ecommerce from traditional retail.”

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