We’ve all heard of Groupon and Living Social – and many of us have purchased something from one or the other. In fact, according to a recent ForeSee study of more than 22,000 customers of ecommerce sites, about two-thirds (65%) of the consumers had participated in at least one daily deal program, and nearly half (46%) subscribed to more than one. Groupon was the most popular service, used by more than half (51%) of respondents.
Many retailers have lost money on daily deals because of both the deep discount and the fact that they must pay the aggregators a portion of what they receive. With that said, participating in these programs can be risky and unprofitable if the customers choose not to return.
What does this information mean to your business? Well, it’s clearly a great way to quickly attract new customers and, in many cases, to bring back former ones; however, once you get those customers, you need to provide much more than just deals to keep them coming back.
We recommend that you read “A Three Step Approach for Retail Loyalty Program Success” by Michael Koploy to gain insight on how customer loyalty and rewards programs can help establish the right platform to retain and analyze key customer data, while cultivating an ongoing relationship with buyers.
In this article, Michael covers how to create a program that drives loyalty, how to develop program membership and last, how to collect and analyze good customer spend data.
Experiential Rewards are unforgettable, exclusive experiences that customers will remember and talk about for years to come. Learn how these powerful engagement tools can have a strong bottom line impact to your loyalty program. Learn More.