Loyalty & Upside: Your next-gen growth strategy

Getting more out of your loyalty program

Anywhere from 20% to 40% of your customers are signed up for your loyalty program. There’s a big opportunity to get those customers to visit more often, and bring non-participating customers into the fold. Click the toggles to see what layering on Upside can do for your business:

Loyalty & Upside

Loyalty programs only speak to your current customers

Your programming has already won over your most loyal customers, but what about the customers who chose not to sign up? Or the customers you don’t know yet? You could turn to your marketing budget, but acquisition costs have risen 200%+ in the last eight years. So unless your customers’ lifetime value has increased by the same amount, your business is in the red.

Loyalty & Upside

Loyalty programs use customer segmentation to influence customers

Retailers often segment their customer base to provide contextually relevant messages and targeted promotions for each group. Often, these segment-specific incentives drive top-line revenue growth. But if your average loyalty customer is shopping with you 2-4 times per month, that means there are more visits you could be winning.

Loyalty & Upside

Loyalty programs are great at boosting top-line spend from engaged customers

Loyalty programs are key for nurturing existing customer relationships and incentivizing repeat visits. But it’s still unclear whether that increase in revenue is profitable. It’s increasingly difficult to assign credit to the specific touchpoint that led to a net-new purchase, and top-line lifts in loyalty purchases can be incorrectly attributed to macroeconomic trends or organic sales increases. Not to mention, most loyalty members churn within a year. If retailers are spending more on the loyalty program than they are making with increased customer spend, it’s bad for business.

Reaching more customers

What’s the most profitable way to reach the customers that aren’t in your loyalty program?

Loyalty & Upside

Loyalty programs only speak to your current customers

Your programming has already won over your most loyal customers, but what about the customers who chose not to sign up? Or the customers you don’t know yet? You could turn to your market budget, but acquisition costs have risen 200%+ in the last eight years. So unless your customers’ lifetime value has increased by the same amount, that leaves your business in the red.

Influencing their behavior

What will motivate new and non-loyalty customers to change their behavior?

Loyalty & Upside

Loyalty programs use customer segmentation to influence customers

Retailers often segment their customer base to provide contextually relevant messages and targeted promotions for each group. Often, these segment-specific incentives drive top-line revenue growth. But if your average loyalty customer is shopping with you 2-4 times per month, that means there are more visits you could be winning.

Winning repeat business

What’s the right incentive mix to stay profitable while incentivizing more visits?

Loyalty & Upside

Loyalty programs are great at boosting top-line spend from engaged customers

Loyalty programs are key for nurturing existing customer relationships and incentivizing repeat visits. But it’s still unclear whether that increase in revenue is profitable. It’s increasingly difficult to assign credit to the specific touchpoint that led to a net-new purchase, and top-line lifts in loyalty purchases can be incorrectly attributed to macroeconomic trends or organic sales increases. Not to mention, most loyalty members churn within a year. If retailers are spending more on the loyalty program than they are making with increased customer spend, it’s bad for business.