Do Loyalty Programmes really have a Positive Impact on the Indian Retailers?
Competition in the Indian Retail Sector is at its peak and to differentiate themselves from the competition, retailers and marketers have taken up loyalty programmes as a way of attracting customers. Loyalty programmes or privilege club programmes are essentially marketing efforts that help encourage customers to frequent a company’s outlet. The estimate says that there are about 200 million loyalty programme members in India, and most retailers base their programmes based on points.
However, despite spending so much time and effort into these loyalty programmes, it’s said that only 27 percent of the retail leaders are confident that their loyalty programmes have a positive effect on the consumers. It is noted that even though the loyalty programmes are critical to the business, only 5 percent of the retailers think that their customers are loyal. The main reason for this is that only a handful of retailers are fully embedding loyalty across core operations and customer touch points. The main problem that the India retailers faced was the fact that only 19 percent of them can leverage their data and systems to understand individual customer needs, 35 percent of them capture real-time insights and only 30 percent of them can use technology to personalize the offer and experience for a customer.
It is evident that retailers need to focus on the right software to full take advantage of the data that is readily available to them and this is where Ginesys can help make the retailer’s life easier with their ERP solution that is organized and designed in such a manner that it increases the rate of success for the loyalty programmes that have been implemented or will be implemented by the retailers in the future.