The value of a well-designed loyalty initiative shines particularly brightly in the quick-service restaurant industry, where customers are not as likely to ensure that their loyalty points are properly recorded.
New data published by Adyen reveals that businesses are missing the mark in meeting consumer expectations and maintaining customer loyalty in a price-sensitive and highly competitive environment.
According to the findings, Singaporeans are more likely to frequent businesses that reward them for their loyalty, but there is a caveat: loyalty programs need to be used smoothly. However, many companies in Singapore do not prioritize loyalty initiatives as they rarely see them as contributing to revenue.
More could be done on this front, especially in this peak season. A great loyalty program rewards both the customer and the business, and a strong payments partner will help your business deepen customer engagement. While customers enjoy benefits on top of their purchases, companies also unlock insights into their customers’ behavior and preferences. In fact, third-party research has found that the best performing loyalty programs can increase revenue from customers by 15% to 25% annually.
The value of a well-designed loyalty initiative shines particularly brightly in the quick-service restaurant industry, where customers are not as likely to ensure that their loyalty points are properly recorded.
- In the US, Dunkin’ Donuts simplified the process by recognizing the individual customer based on the credit card they used for previous purchases – an experience made possible by tokenization technology.
- Thanks to the connection between the payment card and the loyalty program, customers are rewarded with points without saving any additional effort on their part.
In an era characterized by low prices, a business’s loyalty initiative can be a competitive advantage. By understanding customers’ consumption patterns, companies can achieve richer engagement with them – and it can all start by partnering with the right payment provider.
Key findings for consumers and businesses in the retail, travel and hospitality and food and beverage sectors are (Source: Adyen’s Singapore Retail Report 2022. Sponsored by KPMG, this report surveyed 1,000 consumers and 500 businesses across various sectors in Singapore, including retail, hospitality and F&B):
