Skip to main content Skip to footer
Cognizant in the News

Chain Store Age: Cognizant’s Assistant Vice President for Digital Transformation Planning and Strategy (Retail) Makes a Case for Retailers to Embrace Loyalty Programs

“Talk about a gap: 62% of shoppers say loyalty program membership is beneficial, but only 26% consider retailers’ programs worth joining,” writes Shannon Warner. “The 2014 Cognizant Shopper Experience Study reveals that too many retailers are squandering a customer base that’s eager to accumulate the programs’ points, rewards and discounts. Consumers want to engage, and every retailer, even those without formal loyalty programs, should have a plan to drive customer acquisition and retention.” Excerpts:

“Retail has long held mixed feelings about loyalty efforts. Many organizations consider them costly endeavors with too few tangible results. Shoppers, however, overwhelmingly support the programs.

Among retail verticals, loyalty programs’ influence is much lower. Only the grocery sector demonstrates skill in influencing consumer engagement, and it tops out at 42%. That means well over half of customers in grocery stores and supermarkets, retail’s most visited destinations, give no consideration to loyalty programs when making their shopping choices. The numbers drop off even more dramatically for other verticals such as pharmacies (31%), department stores (20%) and apparel stores (14%).

Successfully closing the gap requires retailers to elevate their loyalty programs to meet consumers’ expectations. Here are five steps your organization can take:

1. Provide the value and convenience shoppers want.

2. Be transparent.

3. Ensure your program includes elements popularized by other industries.

4. Recognize that loyalty’s foundational elements are critical metrics for success.

5. Remember that gaps are opportunities.

As an industry, we have a consumer base that is ready and willing to engage with us. Let’s make it worth their while.”

Click here to read more.

Connect with Cognizant

Careers

Be part of our journey to make a difference.

Contact

Let’s start a conversation.

Investors

View prior earnings releases and more.