Gartner Research

Retail Leaders Must Support Customer Engagement Now by Moving Beyond Transactional Loyalty

Published: 21 February 2014

ID: G00259959

Analyst(s): Kelsie Marian

Summary

Retailers use loyalty programs to elicit repeat purchase behavior, but digitally savvy customers expect more than the traditional transactional exchange to remain engaged with a brand long term. Retail leaders should use customer data and creative engagement techniques to compete for their loyalty.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • The commoditization of transactional loyalty programs will continue to decrease customer engagement, resulting in a lack of usable customer loyalty data for retail leaders
  • Declining engagement with rebate and point-based programs will challenge retail leaders to test alternative loyalty reward methods
  • A critical shift in applying predictive and prescriptive analytical techniques to customer data will increase retail leaders' abilities to anticipate changes in customer engagement levels

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