Loyalty and rewards programs are common features in various industries. From retail to corporate, every sector has some version of rewards and loyalty program and shopping malls are no different.
Though not a common phenomenon, shopping mall loyalty programs have been around for a while and can be found in various countries from the United States to India. In this blog post, we will explore the concept of shopping mall loyalty and rewards programs and their strategic advantages.
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Shopping Malls Loyalty Programs – What, Why and How?
What – Shopping mall loyalty programs are designed to increase the mall’s overall footfall and retention rate. Essentially the program rewards people that regularly utilize the services provided by the mall, be it shopping or other amenities. These programs are created to ensure that customers spend the maximum amount of their time and money at the mall and it also guarantees their return visits.
Why– In this age of convenience, where the competition is tough and you are pitted against not just other shopping malls but also numerous eCommerce platforms, providing an incentive to the customer becomes extremely important. A rewards program motivates customers to not just visit the mall but also explore the wide array of services provided by it and earn rewards in return. The basic concept is to reward customers for their time. This is why it is extremely important for the management to focus on customer experience throughout its customer journey. A seamless customer experience improves customer satisfaction and positively influences the overall retention rate.
How – The premise of a shopping mall rewards program is similar to that of a retail loyalty or rewards program. The program is mostly based on the points system. However, it is also a common practice for mall management to reward every 100th customer or reward a random winner through a lucky draw. Considering the mall’s USP and marketing objectives, loyalty partners like Annex Cloud can design customized programs that offer a better ROI.
Unparalleled Advantages of a Shopping Mall Loyalty and Rewards Program
- Improved Customer Satisfaction – Rewards or incentives have a direct impact on customer satisfaction. Winning rewards and incentives stimulate the feeling of contentment and the customers yearn to win more rewards. It also helps in curbing the guilt factor that accompanies excessive spending, because, with a loyalty or rewards program, every dollar counts and can help the customer to win more points.
- Improved Retention – The most important advantage of a loyalty program is that it improves the retention rate. A loyalty program ensures repeat sales. It engages the customers in the earn and burn loyalty cycle and the customers keep returning to the mall to earn more points and rewards.
- Organic Promotions – When customers are satisfied with their experience and earn lucrative rewards, they are bound to refer the mall and the program to their network of friends and family. Through word-of-mouth marketing, coupled with a good referral program you can acquire new customers and also improve retention rate.
- Direct Impact on Revenue – Shopping mall loyalty programs have a direct and considerable impact on revenue. A loyalty program ensures that customers actively utilize the services provided by the mall in order to earn rewards. The more time and money customers spend in the mall, the more revenue you generate.
- Beneficial for All Involved Parties – A shopping mall loyalty program can benefit more than just the mall and its customers. Incentivizing and rewarding customers for their purchases can also help the retailers and brands in the mall. A coalition program that involves the mall and the retailers can be a lucrative deal and also help you to provide better rewards to your customers.
- Access to Zero and First-Party Data – In 2022, Data is the new currency. With customer data, you can design new and effective strategies that offer better ROI. Loyalty programs are a great way to ethically source zero and first-party data. Customers consensually share their information in order to receive personalized service, rewards and benefits and give you access to vital data in exchange.
Initiating a Shopping Mall Loyalty Program
- Analyze your Customer Base – Although it may seem futile to analyze the wide range of audiences of a shopping mall since the bracket range is extensive, it is an important practice. Analyzing your audience can give you better insights into your demographic as opposed to vague results that are derived from generic assessment. The location of your mall also influences the demographic, for example, if a mall is nestled in the corporate district, it will attract working professionals more than senior citizens and homemakers. Defining your target group will help you formulate effective strategies.
- Analyze Retailers’ Strategies – If you are opting for a coalition shopping mall rewards program. Then the next step is to analyze the strategies of your retailers. If your retailers have their standalone loyalty programs, you will need to consider it while designing your loyalty program as well.
- Opt for the Right Loyalty Strategy – With shopping mall loyalty programs, the earn and burn strategy works best. It engages customers in a long-term program and keeps them hooked in the earning and burning points cycle. However, based on your target group, retailers’ strategies and other factors, you could design programs that are better suited to your requirements, with the assistance of a good loyalty partner. Connect with Annex Cloud’s Loyalty Experience Manager for bespoke loyalty solutions.
- Make Winning Easy – A shopping mall program is different from a retail loyalty program; you need to offer as many options as possible for customers to win rewards. If earning rewards feels like a task, the customers are bound to lose interest and retract from the program. Also, make things interesting, using strategies like personalization and gamification can help you keep your customers engaged for a prolonged period of time.