Multi Tender Retail Loyalty Programs
Membership and loyalty programs have been a part of the retail landscape for years. However, as multichannel engagement has evolved to omnichannel, multi tender loyalties programs have become important in identifying best customers, regardless of their tender preferences, and to creating a value proposition that encourages repeat purchases and higher spending. Retailers recognize if they limit their loyalty program to just store credit cardholders, they’re also limiting the customer’s engagement with the brand. A multi tender loyalty program captures more customer data that can be strategically used to drive sales and profits.
Benefits of Multi Tender Loyalty Programs
Higher penetration: loyalty program has broader reach and engages more customers. For example, retailers with a loyalty program linked to their proprietary credit card are engaging only 20-40% of customers. With a multi tender loyalty program, companies engage significantly more customers. In some industries, the loyalty program engages as much 70-80% of customers. In addition, according to a Bankrate study, millennials are less likely to get a credit card, so companies relying on credit loyalty programs are not engaging this important customer segment.
The Valassis “2016 Coupon Intelligence Report found that millennials actively download paperless discounts to their store ID/loyalty cards wherever they are – 75% before they enter and 73% in the store. This compares to 62% of all consumers who download savings before they enter the store and 55% while in the store; and 41% of millennials have increasingly gone to the Internet to find coupons compared to 29% of all consumers.
More data collection: multi tender loyalty programs capture more customer data. With a multi tender loyalty program, marketers know more about what customers are purchasing, how often customers are purchasing and can determine “true loyalty.” In addition, members of loyalty programs are more likely to keep their contact information current to ensure they receive benefits and rewards. For example, with the launch of Bloomingdale’s Loyallists rewards initiative in 2012, the company was able to capture a lot more information about the customer. “We’re capturing 100% of the information. We are able to understand a great deal more about what our customers are doing in our store, which makes our marketing efforts much more relevant,” said Frank Berman, Bloomingdale’s executive vice president of marketing. It’s also important to note that members of loyalty programs are also twice as likely to open emails than general public.
Retailers Doing it Right
Last month Nordstrom announced that it was expanding its loyalty program, making it even easier for customers to earn $20 Nordstrom Notes. Customers can join Nordstrom Rewards and earn benefits regardless of how they choose to pay for their purchases in Nordstrom or Nordstrom Rack stores or online at Nordstrom.com, Nordstromrack.com and HauteLook.
As customers’ definition of service continues to evolve, we are focused on being responsive and delivering services and experiences that are important to them,” said Erik Nordstrom, co-president, Nordstrom, Inc. “Our customers have asked us to make Nordstrom Rewards more flexible. They’ve told us they want to be able to earn points whether they use their Nordstrom card when they shop with us or pay in another way, and today we hope we’ve delivered on their request.”
Nordstrom Rewards now offers customers two great ways to earn $20 Nordstrom Notes:
A New Way to Earn: Nordstrom Rewards Members
- More flexible payment options: Earn one point per dollar when paying without a Nordstrom card. This is a multi-tender program where customers are rewarded whether they pay with cash, check, or any credit card.
- Easy to enroll: Enrolling is simple and fast at Nordstrom.com/rewards or at any Nordstrom or Nordstrom Rack store. Enter your name, mobile phone number and email address to start earning points.
- Simple to participate: No card to carry or account number to remember. Your mobile number is your key to Nordstrom Rewards, earning points and redeeming $20 Nordstrom Notes.
Same Great Benefits: Nordstrom Rewards Cardholders
- More $20 Nordstrom Notes: Earn two points per dollar when using your Nordstrom Visa® credit card, Nordstrom retail card or Nordstrom debit card.
- More benefits: Early Access to Anniversary Sale, private holiday shopping parties, alterations, personal bonus point days and more.
- Easy to apply: Apply online at Nordstrom.com/rewards or at any Nordstrom or Nordstrom Rack store.
A multi tender program enables businesses to engage and collect data on customers across multiple channels and not limited to the use of a store credit card.
For example in 2008, JCPenney announced the launch of “JCP Rewards,” a program that allows customers to easily earn reward points and receive special members-only benefits just by shopping with JCPenney – in-store, online at jcp.com or via catalog – each month.
“JCP Rewards” enables customers to automatically receive points from purchases on any one of three personal credit or debit cards they register online for the program, all of which can cumulate to receive monthly rewards. An important aspect of this program was that it was not limited to just consumers using the JCPenney credit card. “JCP Rewards” members earn one point for every dollar they spend on JCPenney regular-priced and sale-priced merchandise, and points double for customers that shopped at JCPenney the previous month.
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