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Saturday, April 19, 2025
RetailWhy retailers must reward loyalty to stay profitable

Why retailers must reward loyalty to stay profitable

Survey of 1500 shoppers reveals why ‘loyalty’ is going to be the differentiator for retailers amid the cost of living crisis.

  • 4 in 5 are part of at least one customer reward scheme
  • 38% actively seek them out and 46% will join up when asked
  • 70% are willing to sign up just to receive discounts
  • BUT, 19% have never been asked to join whilst shopping in a store

As retailers struggle to stay profitable, whilst protecting customers from price hikes, the survey carried out by consumer intelligence experts at Manchester-based Purple found it doesn’t have to be a trade-off between the two.

Two thirds of the respondents said their loyalty to a retailer increases when they’re rewarded for visiting, however, the survey shows that retailers are missing out on an important opportunity to reward loyalty in-store, at a time when it matters the most.

Smart in-store WiFi can be easily utilised by retailers to encourage sign-ups to loyalty schemes and 66% of respondents have joined a free WiFi network when shopping. But the survey found just 16% join every time they shop, and here lies the opportunity.

What’s more, 41% of those surveyed believe that receiving text messages and emails while in store – with information and offers for specific products – helps to improve the customer experience.

Almost half claim promotions or a personalised experience influenced their most recent purchase and 83% are happy to share personal data in exchange for tailored offers.

Gavin Wheeldon, Chief Executive of Purple, commented: “The current economic climate is increasing the pressure on businesses and retailers should be looking to harness the full capabilities of their existing technology to compete with the competition.

“Whilst there isn’t ‘one size fits all’ solution, in-store WiFi technology can help retailers to facilitate real-time dialogue with the customer.”

Purple’s smart WiFi technology can collect real-time data using a captive portal for shoppers to log into the WiFi, using their email address or social media profile.

Furthermore, retailers can trigger communication with their customers directly through the Purple Platform, using a built-in marketing automation tool – or an existing CRM system.

Wheeldon continues: “When a retailer knows their customer is actively shopping in their store, they can access valuable data in an instant to leverage the personalisation consumers desire and enhance the overall shopping experience.”

News Desk
News Deskhttps://www.businessmanchester.co.uk/
The Business Manchester News Desk team is a collective of experienced journalists and editors dedicated to delivering comprehensive business news and insights from the Manchester area and beyond. With a strong background in finance, technology, property, and innovation, our team ensures that our readers stay well-informed about the latest trends and developments in the business world. Through in-depth reports and insightful analysis, the Business Manchester News Desk team is committed to providing high-quality journalism to its audience.
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