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A focus on customer loyalty is essential for retail success

This article was based on the interview with Sarah Jarvis from Eagle Eye Solutions by Greg Kihlström, MarTech keynote speaker for The Agile Brand with Greg Kihlström podcast. Listen to the original episode here:

Loyalty is essential for success in today’s retail industry. In the interview with Sarah Jarvis from Eagle Eye Solutions, they discuss the importance of loyalty programs and customer engagement in driving sales and maintaining a competitive edge. They debunk the notion that loyalty is dead and highlight the growing trend of businesses implementing loyalty programs to connect directly with customers and gather valuable data.

Jarvis emphasizes the need for businesses to provide value to customers in exchange for their loyalty. This value can take various forms, such as the opportunity to win prizes or the convenience of a faster checkout process. The key is to understand what works for each individual business and its target customers, rather than simply following what the competition is doing.

Nike is cited as an example of a company that effectively uses its mobile app to engage customers and deliver better customer service. By allowing customers to scan items they want to try on, Nike eliminates the need for customers to search for assistance. These small improvements make a significant difference to customers and contribute to their overall satisfaction and loyalty.

The transcript also addresses the skepticism surrounding loyalty programs. The speakers point out that loyalty is not dead, as evidenced by the increasing number of businesses launching their own programs. They highlight the importance of having a direct connection to customers and the value of data in informing business decisions.

Factors such as the cost of living crisis and the impact of COVID-19 have further emphasized the importance of loyalty programs. These programs provide customers with a lifeline to save money and offer retailers a way to drive profitable growth through personalization and targeted advertising.

Jarvis argues that loyalty is more important now than ever before. They suggest that loyalty penetration in developed markets is likely higher than ever, with customers recognizing the value of personalization in saving money and improving their shopping experience. They assert that businesses cannot afford to ignore loyalty programs and instead should view personalization as the most economical way to drive desired customer behavior.

The podcast interview highlights the significance of loyalty in achieving success in the retail industry. Loyalty programs and personalized customer engagement are crucial for businesses to stay competitive and meet the evolving needs of customers. By leveraging mobile devices and data, businesses can bridge the gap between physical and digital retail and create meaningful connections with customers. Loyalty is not dead; it is alive and well, and businesses that embrace it are more likely to thrive in today’s competitive landscape.

House of the Customer by Greg Kihlström is now available.
House of the Customer by Greg Kihlström