Why focusing on rewards and loyalty should be your top marketing priority

Customer lifetime value is key for survival in today’s retail climate.
Retailers can impact their future values by offering customers exclusive deals and rewards that drive both acquisition and loyalty.
Honey rewards consumers at each stage of their shopping journey — from product discovery to checkout.

Today, building a brand and expecting customers to engage because of great product selection isn’t enough. Finding and retaining customers in today’s increasingly competitive e-commerce landscape requires merchants to be highly targeted and relevant at all stages of a shopper’s lifecycle. That sounds great, but how can retailers do that? By delivering personalized offers that match the needs of their customers.

“Winning companies have a customer-centric approach,” said Jason Test, vice president, digital and in-store commerce at PayPal, which uses its Honey platform to help enterprises convert and retain customers by presenting them with highly relevant offers. “A loyalty program is successful not when it has resulted in customer acquisition, but when it results in retention. In addition to providing a superior shopping experience, the hope with loyalty programs is to turn a one-time shopper into a habitual buyer.”

Consider this: New customer acquisition costs have increased almost 50% in the past 5 years. Since not all marketing teams have a free-flowing budget to prioritize all stages of the consumer lifecycle, Honey is helping organizations reach customers with relevance at more stages of their shopping journeys.

One example of this in action is Princess Polly, an online shopping boutique in Australia and the US. Princess Polly partnered with Honey and a prominent YouTube influencer to help increase sales volume and drive revenue. Within the 10-day campaign, the company saw a 41% boost in revenue in Australia and 36% the U.S.

“Our target audience, Gen Z, is discount savvy,” said Kim Zorn, global performance director at Princess Polly. …read more

Source:: Businessinsider

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