Retailers are beginning to ramp up their rewards programs to outpace inflation and improve customer loyalty to their brands. Going beyond traditional deals like “BOGO” (Buy One Get One), stores are getting creative and focusing more on experiential offerings to keep consumers coming back.
According to an article in Newsweek, over 90% of companies have some type of customer loyalty program, and the average U.S. household is enrolled in at least 18 different loyalty programs. Some of these programs are hugely important to a company’s bottom line. Starbucks Rewards members, for instance, are now responsible for 53% of the dollars spent at the coffee chain.
Another company adding a new benefit to their rewards program is Kohl’s. Through a pilot program enacted last year, the department store retailer will now offer an increased earn rate of 7.5% in rewards on every purchase. Rewards members also receive personalized deals and perks throughout the year, including a special birthday gift.
Experts agree that retailers should pay attention to two key elements—offering one-of-a-kind experiences and personalization.