Loyalty programs are what drive return sales and customer satisfaction. Khols is a perfect example of this. I would put money on the assumption that almost every mom of this generation has a Khols card and uses it frequently. I’m not even a mom yet and I have one and love it!
The reason for this is that people love to feel like they are getting a great deal. The more you can convince someone they are saving money, the more likely they are to keep buying. This is a pure genius marketing move. Sure the company might miss out on a few dollars because of the sale, but the customers are spending so much more than they are saving.
Loyalty programs are based on the use of Big Data. Each customer has a loyalty number whether it is their phone number or the number on their loyalty card. This number allows the company to track the customers activity. From here Big Data Analytics crunch all this data and create understandable stats on each customer’s habits and what they tend to buy. This information is gold to companies and allows them to uniquely market to specific people.
Thanks to loyalty programs and Big Data, companies are improving their return sales rate while also saving the customer a little bit of dough.
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