With 86% of shopping centres planning to implement a CRM/loyalty programme by 2018, it is crucial that they understand the new rules of loyalty. A top priority in Northern Europe is to gain shopper data, which can be achieved through the unique insights provided by loyalty schemes, but shopping centre tenants are at risk of missing out on key benefits if shopping centres don’t carefully consider the loyalty scheme implementation.
Almost all shopping centres questioned (92%) agreed that loyalty adds value for both retailers and shoppers. As a result of implementing a loyalty scheme, 80% of centres believe that they have established strong relationships with their tenants due to the mutual advantages it presents.
There are many advantages for shopping centres choosing to implement loyalty schemes. Our research showed that the top benefits were listed as being an increase in sales, an enhanced shopper experience, and access to shopper data – both for the individual brand and as a centre-wide data spread – and an increase in brand awareness.
A robust loyalty programme is a great way to benchmark shopping centre performance as centres can track aspects, such as consumer footfall and customer spend per tenant. By reviewing the trends in these data sets, centres can provide insight into best practices for brands, such as when to expect an increase in footfall traffic as a result of good weather, for example.
Shopping centres can also provide information on where their most valuable customers travel from by analysing the area code of signups. With this kind of insight, brands can then look to adapt marketing efforts in certain postcodes to further capture the attention of loyal customers, or, alternatively, to try to attract new shoppers within the area that they identify have a high potential customer lifetime value.
Shopping centre loyalty implementation isn’t always straightforward. Our research showed that the biggest challenge shopping centres claim to face is getting their tenants involved. When questioned why this was, retailers claimed their biggest concern was around the implementation of the programme. But the recent advancements in POS now means that installing a loyalty scheme doesn’t interfere with existing processes, so these fears are often unfounded.
Despite the potential reluctance of some shopping centre tenants, 71% of shopping centre retailers claim that they are interested in potentially joining a loyalty programme. Retailers want loyalty schemes to provide them with a better understand their customers, increase sales and to gain more control over marketing at store level. Loyalty schemes are an effective way to leverage marketing as shopping centres can share available data with tenants for optimisation and benchmarking purposes.
With shopping centre loyalty schemes causing customers to spend on average 20% more, and with 4 in 5 customers openly claiming to enjoy receiving emails about the programme, it makes sense for centres to consider putting a loyalty scheme in place. Used correctly, to everyone’s mutual advantage, shopping centre loyalty schemes can bolster success for both the centre and the brands within it, making it a win-win decision that drives long term customer advocacy.
Fancy delving a bit deeper to find out how the new rules of loyalty will really affect you? Listen to myself and the esteemed Sean Curtis discuss the industry perspective on shopping centre CRM and loyalty. Find out exactly how your industry is thinking and what you need to know over the coming months.
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