As retail destinations across the globe become increasingly experimental with their digital marketing strategies, rewards programs present an opportunity for malls to leverage the advancements in tech capabilities. The emergence of loyalty technology such as mobile apps, geo-location software, QR scanning, and multi-tenant POS has made shopping easier than ever… so what are the three tips for designing a successful loyalty program?
At Coniq, we work with a variety of different-sized shopping malls, outlets, and business improvement districts to implement retail loyalty solutions. Utilizing our extensive industry experience, we have found three fundamental points in all successfully managed programs. If you are thinking of implementing a loyalty solution or already have one that you would like to optimize, these three tips for creating a successful loyalty program will help!
1) Don’t make your shoppers do all the work!
Generally, shoppers visit malls to relax and unwind. Therefore, distracting shoppers from what they came to do (i.e. browse and buy) will only create friction and disrupt their customer journey. It's a well-known fact that shoppers value time and convenience! Therefore, implementing a loyalty program that considers this in every phase of the customer journey is critical. Ask yourself- how seamless is the registration and redemption process? Consider things like:
- How many fields must they fill?
- How many steps are there?
- In what ways are customers redeeming rewards?
- Can rewards be redeemed at the point of sale?
It's important to remember your loyalty objectives. It is not just about collecting more data. It's about creating an enjoyable and motivating shopping experience that makes customers feel so good they can't stay away! Therefore, placing your shoppers at the heart of your loyalty program is essential for its success. If you can provide customers with a frictionless journey, from points collection to redemption, your program is more likely to be a success.
2) Engage your tenants
Many retailers don't attempt a mall-wide loyalty scheme because they simply don't believe they can engage their tenants. It's one of the first queries raised by our clients when they approach us. However, our brand and tenant engagement team works directly with mall management to motivate and engage tenants. On average, Coniq clients gain 60% to 80% of tenant engagement using our expert advice.
The key to collaboration is making your tenants feel they are gaining something valuable from the partnership. Therefore, designing a successful loyalty program means sharing crucial insights into customer behavior. This will benefit the mall and provide tenants with a unique value proposition they may not have access to anywhere else. This critical performance data will allow tenants to understand and anticipate their customers more effectively, whilst driving customers to the mall- what's not to like!
Just make sure that the process is equally as easy to navigate, the training process is thorough, and the tech doesn't interfere with their existing processes. One great added benefit is that on a larger scale, a successful loyalty program builds and strengthens the relationship between tenants and shopping malls as they collaborate to meet mutually beneficial objectives. Therefore, over time, your retail tenants become more loyal too!
3) Make rewards easy
Shoppers love a good bargain, but they don't like a hassle! So don't over-engineer your loyalty program. Instead, use a simple tiered approach or points-based loyalty system that shoppers can easily engage with. It's good to get creative, but don't overcomplicate things, as this can create friction and deter your shoppers. Instead, entice them to spend and unlock rewards by allowing them to preview higher tiers. By offering shoppers complete visibility, they can track their progress, motivate them to spend more, and keep them engaged throughout!
Shopping Mall Loyalty, in a Nutshell...
It is essential that a successful loyalty program puts both shoppers and tenants at the heart of its scheme and prioritizes simplicity for both!
