Retailers have many programs, channels and strategies to get more shoppers through their doors. However, in the shuffle of opportunities some may have forgotten one key: that people who return time and again, even if they only spend a few dollars each time, can be just as important as those who drop $100 on every visit.
Everyday earners have always been important to retailers and brands, but some businesses may be missing opportunities to engage these shoppers in their urgency in getting to shoppers who only visit occasionally but who spend more on each visit than everyday earners.
“Although the amounts per transaction may be small, consumers really do value opportunities to earn rewards for their everyday purchases – regardless of quantity. Echoing some of our leading tips for loyalty program engagement, this consumer segment is so rewards-hungry that more than half (54%) buy more when they’re rewarded for purchases, and 56% never miss a chance to earn points and miles. In fact, 73% of these consumers will choose a retailer that offers points over one that doesn’t,” said Tim Moulton, Vice President, Points Business Solutions & Business Development.
In fact, according to a recent Points loyalty survey high-frequency shoppers are likely the most loyal shoppers for a brand because they are earning and redeeming loyalty perks on a regular basis.
The consumer and retail industries in the Middle East and Africa are evolving rapidly. Regulatory liberalization, changes in the competitive environment, and evolving consumer lifestyles and channel structures are creating opportunities as well as challenges for consumer companies, distributors and retailers. Four GCC countries are present in the list of top 20 countries based on Global Retail Development Index (GRDI), which signifies the preference of international retailers.
Affluent population, higher per capita income, grand malls, growing expatriate population, swelling tourist numbers, and favourable environment for franchise act as growth drivers for luxury retail.However, counterfeiting, rising rental costs, unavailability of workforce, and increasing competition are a few challenges faced by the sector.
When it comes to retail, Middle East as a whole, benefits from young population, with more than 65% being under the age of 35. This offers tremendous potential for the luxury market, not only in the sheer numbers, but also in the opportunity for retailers to overcome the fickleness of consumers, and build brand loyalty early.
The 2013 GDP per capita in the GCC ranged from $29,813 for Oman to $98,813 for Qatar, well ahead of emerging countries, such as China ($9,844), and compare favourably with developed countries, such as the US ($53,101) and the UK ($37,306).
“For brands and retailers, high-frequency earning is an opportunity for finding new customers, especially the 74% of Americans who belong to at least one loyalty program, and who are eager to earn rewards from everyday shopping experiences to meet the goals they have set. Everyday earning opportunities are becoming increasingly important to shoppers, and therefore, to retailers,” said Moulton.
More from Moulton and Points tomorrow, including his top three tips to increase loyalty program engagement.