Loyalty Programs

Seventy-five percent of U.S. companies with loyalty programs generate a return on that investment. With so much success on the line, it’s surprising how many retailers still outsource loyalty programs, either directly or indirectly, to third-party vendors through cash-back partnerships. Third-party loyalty partners are attractive to small and midsized retailers as they don’t require in-house technology or labor…

In episode 33 of Total Retail Talks, I interview Richard Mancinelli, loyalty program manager for Advance Auto Parts. Mancinelli talks about the automotive replacement parts and accessories retailer's third annual mobile tour and the value it provides in driving brand awareness and customer loyalty.

The Amazon Prime membership program is incredibly important to the company, and this week, Amazon.com made a bold move by making it available to customers on a monthly pay-as-you-go plan. Previously it was available only as an annual plan (with a 30-day free trial available to new members).

Amazon will offer a monthly version of its Prime membership program in a move that challenges rival Netflix and gives customers new subscription options. Starting Sunday, the Seattle-based retail giant will sell a monthly Prime membership for its video streaming service at $8.99 per month — one dollar less than Netflix’s standard offering — along with a $10.99 per month option…

Did you know 90 percent of shoppers use their smartphones to make purchasing decisions while in-store? According to SessionM, the top activities consumers perform on their smartphones are comparing prices, researching product information and reading online reviews. Additionally, Forbes surveyed more than 1,600 millennials and found 47 percent had recently downloaded a mobile shopping app.…

Wal-Mart is rolling out new cash-back rewards for its credit and prepaid cards. The retailer's cards — the Wal-Mart MasterCard, Wal-Mart credit card and prepaid MoneyCards — will now offer 3 percent back on purchases made on Walmart.com, 2 percent back on fuel purchases at Wal-Mart or Murphy USA gas stations, and 1 percent back on…

Two powerful forces are shaping today's retail sector. Separately, each can pose huge challenges if not harnessed correctly. However, combined they can create vast opportunities for deeper, modernized customer loyalty. The first phenomenon is data. Retailers have access to tons of detailed data about today's customers — information from websites, email lists, social media, online…

Loyalty programs have come a long way in recent decades. In their early years, they were little more than simple, dubious rewarding schemes. At worst, customers sacrificed their hard-earned dollars for a cheap glass or other trinket they neither needed nor wanted. At best, a company account paid for the trinket and the superfluous gift…

Starbucks has one of the most successful loyalty programs in the world of retail and restaurants, with over 11 million active members. But the coffee chain is overhauling its “Starbucks Rewards” program in part to fix a problem that's bedeviled it for years: slow service at the cash register. Under the current program, Starbucks awards members one…

Even without a Prime membership, Amazon always offered free (and slow) shipping for orders over a certain minimum. For the longest time, that minimum was $25, but in 2013, the company raised it to $35. In its latest move to push its $99 per year Prime membership with free two-day shipping, the company has now quietly…