The overall retail industry today is all about stiff competition – among retailers, offline and online players as also retail brands selling through social media platforms, etc. With such a huge market and consumers spoilt for choices, brands don’t want to just retain and reward customers, but also keep their brand relevant and foremost in customers’ minds. Since consumer-centric business models are a norm today, loyalty programmes have become a strategic investment that no retail brand is ready to overlook.
However, with digital disruption and new generational influences making customer loyalty tough to hold onto these days, retailers are adapting to newer trends in order to win and retain customers. Loyalty programmes are aimed at generating more revenues and it also helps gather consumer data and offer the best personalised experience to the consumers.
Also, in order to increase ROI from loyalty programmes and also overall customer retention, companies have taken to expanding loyalty rewards to incorporate social and behavioural actions, which include referral rewards and points for user generated content while providing the consumers with a much more personalised experience. With the loyalty management market expected to be worth US $ 10.9 by 2023, it is crucial that the right strategies are in place in order to stand out in an increasingly saturated space.
Retailers today are also looking at blockchain to retain consumers and further also offer exquisite experience to their customer base. Today, AI too has found its way to loyalty and marketing programmes by retail firms across different segments. In fact, customers too have become familiar and comfortable using these technologies. According to a research, customers are increasingly willing to rely on algorithms and smart devices for enhanced and personalised retail experiences.
Also Read: How technology encounters e-commerce challenges
We, at Apparel Resources, interacted with the retail industry leaders to find out how significant customer loyalty programmes for them are to what works best for them.
Also Read: Fashion retail industry strategises to move from survival to revival post COVID-19
Bharat Tex Special Report 2026 
