Loyalty programmes are a key element of consumer engagement. This is because mass marketing programmes (like traditional advertising) are no longer effective in an era in which consumers have unfettered access to information, and are constantly bombarded with increasingly personalized offers for products and services.
Loyalty programmes have to create engagement through offering valuable information about consumers, which is vital for market segmentation. This strategy also helps companies with a consumer’s journey, creating important relationship markers.
Combined with geomarketing technologies, loyalty programmes can also offer your consumers relevant offers, according to a customer’s location, enlarging the shopping basket and increasing wallet size.