What Works and What Doesn’t Work in Merchants’ Customer Loyalty Programs

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A new research report from Mercator Advisory Group identifies success factors that increase customer engagement for merchants.

One of the 6 exhibits in this research report

Getting shoppers to keep coming back is critical for both brick-and-mortar stores and e-commerce in the retail world. Consumers can choose among a variety of competing brands, and engaging loyalty programs are often a differentiating factor encouraging continued patronage.

Most studies find that merchants spend at least five times more to gain a new customer than to keep an existing one. Further, higher customer retention typically leads to greater business profits. A new research report from Mercator Advisory Group, Gamification and Other Strategies for Merchants to Enhance Customer Loyalty, assesses different types of customer loyalty programs across various retail verticals and discusses key success factors for merchants to act upon.

“Getting shoppers to keep coming back is critical for both brick-and-mortar stores and e-commerce in the retail world. Consumers can choose among a variety of competing brands, and engaging loyalty programs are often a differentiating factor encouraging continued patronage,” commented Raymond Pucci, Director of Merchant Services at Mercator Advisory Group, author of this report.

Highlights of this research report include:

  • How loyalty program structure influences customer loyalty
  • Integrated features that increase loyalty programs’ success
  • Gamification methods that drive customer engagement
  • Vertical markets that have highest customer participation in loyalty programs
  • The role that mobile apps play in keeping consumers’ attention

This report is 19 pages long and has 6 exhibits.

Companies mentioned in this report: 7-Eleven, Alliance Data Systems, Amazon.com, AMC Theatres, American Airlines, Apple, Bahama Breeze, BJ’s Wholesale Club, Bloomingdale’s, JPMorgan Chase, Citgo, Citibank, Costco, Cumberland Farms, Darden, Delta Airlines, Discover, Domino’s Pizza, Dunkin’, Excentus, Exxon Mobil, Facebook, Fandango, FIS, GasBuddy, Google, Loblaw, LongHorn Steakhouse, Lowe’s, Lyft, Macy’s, Marriott, Mastercard, Nordstrom, McDonald’s, Olive Garden, Panera Bread, Punchh, Regal, Rite Aid, Sam’s Club, Samsung, Seasons 52, Shell, Shopify, Smile, Southwest Airlines, Stamp Me, Starbucks, Synchrony, Target, Twitter, Uber, United Airlines, Visa, Whole Foods, Yard House, ZipLine

Members of Mercator Advisory Group’s Merchant Services continuous advisory practice have access to this report as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.
For more information and media inquiries, please call Mercator Advisory Group's main line: 1-781-419-1700, send email to media(at)mercatoradvisorygroup.com.

For free industry news, opinions, research, company information and more visit us at http://www.PaymentsJournal.com.

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About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.

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Karen Yetter
@MercatorAdvisor
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