This is what keeps customers from joining retail loyalty programs 

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This is what keeps customers from joining retail loyalty programs 

By Marianne Wilson - 12/04/2019

Not all customers are keen on loyalty programs.

Thirty-eight percent of customers generally avoid participating in retail loyalty programs, according to a report by CFI Group and Radial.  Of that group, 53% say they don’t sign up because they do not like giving out their personal information or are concerned that their identity could get stolen. Another 39% do not join simply because they don't believe loyalty programs are worth it.

Retailers have an obvious incentive to add more customers to their loyalty programs. Retail loyalty members are 12% more satisfied, 10% more loyal, and 13% more willing to recommend a retailer than other customers, the report found. The study also suggests tangible ways retailers can attract more customers to their loyalty programs.

To reach customers who are wary about giving out personal information, retailers can better operationalize and promote their fraud protection services so consumers can be assured that their personal information will be protected, advised the report.

The study points to three specific actions retailers can take to make their loyalty programs more compelling.

  1. Offer a faster delivery option. 
    Sixty-three percent of all retailer customers say offering faster delivery influences them to sign up for a retail loyalty program. 
  2. Offer personalized customer service. 
    Forty-one percent of retail loyalty members say that being recognized by the customer care agent makes it much more likely that they will make more purchases in the future. 
  3. Offering fast and flexible returns and exchanges. 
    Fifty-five percent of retail loyalty members are more likely to purchase from that retailer again when given multiple return options