The trend: Retailers and brands are doubling down on rewards programs at a time when rising prices are causing customer loyalty to weaken.
Why now? As prices rise, customer loyalty is weakening. Thirty-eight percent of the 39 consumer brand categories—including dining and retail—analyzed by Brand Keys are experiencing "declining” loyalty.
KISS (Keep it simple, stupid): There’s no more important element to a rewards program than enabling a seamless user experience that incentivizes members to participate.
The big takeaway: Rewards programs should be a straightforward trade in which members share firsthand data in exchange for a clear, desired benefit, such as a discount or free item. The more consumers need to invest time and/or energy to understand a program’s details and nuances (such as how to use a NFT), the fewer the people who are going to use the program.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.