Optimizing Consumer Loyalty by Prioritizing Engagement Over Sales

Motivating consumers to intentionally and repeatedly purchase from your store or brand has forever been the holy grail of objectives. Also known as “loyalty,” retailers attempt to simplify this desire into a formula they can leverage to ensure shoppers never deviate from their brand. Though loyalty is a nuanced concept, the invention of loyalty programs became the primary method of securing trackable repeat business. Consumers learned to game the system, though, subscribing to competitors’ programs and opting in and out as they saw fit. Amazon Prime’s persistently successful model, peak competition among DTC brands, a global pandemic, and inflation have created the perfect storm for retailers to reconsider how to maximize loyalty.


An evolved loyalty strategy's sole goal isn't to drive repeat purchases. Instead, modern approaches to loyalty should prioritize remaining at the top of consumers' consideration sets by pursuing repeat engagement. A sales-centric perspective on loyalty often leads to a long-term discounting strategy. Discount-based positioning forces retailers to constantly slash margins while establishing shopper expectations that low prices will always be available. Further, when other retailers can secure more significant discounts, those shoppers that purchase at low prices several times will unlearn their reliance on the initial brand. In contrast, ensuring that consumers genuinely enjoy shopping your brand means visits are motivated by brand affinity versus price sensitivity.


Offering unique services can increase brand affection and steer shopping away from price-oriented behavior. Some consumers prefer fewer interactions with sales associates, while others want all the help and communication they can get. By tracking this information with a Customer Data Platform (CDP), retailers can build unique experiences for those who want closer relationships with the brand. For example, after shoppers visit a brick-and-mortar Interior Define store for a consultation, sales associates send links with customized furniture purchase recommendations based on their preferences and desired dimensions. Though these exchanges are human-to-human, discovery feeds that are hyper-personalized and based on many preference variables also resonate with target customers.


Ultimately, a top-notch user experience that is both efficient and inspiring will bring consumers back. For example, quality customer experiences that incentivize repeat engagement can consist of periodically providing unique codes to data-designated consumer groups. These codes could unlock secret menus, content, colorways, or limited product ranges (with early access or exclusive availability to that group). These smaller customer groups could also function as pilots to test new offerings, demonstrating to them how valued they are while informing R&D.


Retailer platforms must be so enjoyable for consumers that even without purchase intent, they want to return. Rent the Runway’s visual and easy-to-use interface makes repeat visits fun and productive. Even if a user isn’t ready to swap out items, browsing top pieces gives them trend information. When users are ready to swap, a robust archive of fit reviews by previous renters provides valuable information for decision support. Additionally, size and style suggestions by the platform are shockingly accurate. It’s a hard-to-quit experience.


Consumers will engage with brands they know are listening. That listening is best reflected with an offering that consumers play a role in dreaming up. Brands across categories have a history of co-creating with loyal customers in novel ways, such as selling products inspired by inside jokes developed with their fans on social media, launching flavors imagined by contest winners, and building collections designed and named after crafty DIY post-purchase projects.


Digital channels are a perfect way to source ideas from loyal customers. Celebrating consumers’ participation and commitment to repeat engagement is grounds for a lasting relationship. There’s also the potential for less waste generation and more accurate alignment between supply and demand from an offering built with consumers versus built for them.


Similarly, collecting real-time feedback on products and services can ensure better customer experiences. For example, Starbucks could ask coffee drinkers in the app how well the milk, ice, and sugar quantities matched the amounts requested. In doing so, they would demonstrate how much they care about delivering on expectations and collect essential information on baristas’ practices and consumers’ individual preferences. Over time, machine learning could leverage the data to assist the baristas in getting it best for the individual.


With consumers’ newfound openness to brand switching, it’s time for retailers to upgrade their loyalty programs and prepare for the future of retaining repeat customers. There are new, innovative ways to leverage an abundance of available data. Consumers expect rewards for consistently and willingly offering up that data. To leverage the advancements in data analytics, brands must allow consumers to feel in control of the relationship. Shoppers’ attention is divided and competitive, but the tools exist to build lasting connections where consumers know they’re valued.

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