Loyalty marketing is not new. In fact, it's been around in various forms since the late 18th century. And yet, it's more relevant than ever.

Loyalty marketing is a marketing strategy, which focuses on growing and retaining existing customers by building trust and loyalty with perks, incentives and rewards.

In this blog post, we have a closer look at why it is essential for shopping centers;

Why malls should focus on loyalty marketing

Modern consumers have the entire world available on their phone. This means physical retail has lost the security of constant footfall from local consumers.

The rise of e-commerce means physical retail is no longer the most convenient option. Now, physical retail needs to offer something more, in order to stand out in an over-saturated market.

In shopping center marketing, new customers are typically seen as more interesting. But over the years, the number of new customers has been dwindling.

This is where loyalty marketing comes into the picture.

Loyalty marketing offers an opportunity to stand out. This can help you keep and engage customers - And, engaging customers in your mall is what it's all about;

Loyalty marketing isn't a one way street. In fact, Meta's 2021 report describes the loyalty equation needed for success like so:

Consumers want to feel like they are as valued by the brand, as they value the brand. (Report by Meta, 2021)

By showing customers they are as valued by your mall as you are by them, you are essentially enhancing the perceived value of your mall.

While e-commerce is convenient, loyalty marketing makes the value customers get by staying loyal to their local mall visible. And, it can even attract the interest of new customers, too.

Loyalty as part of the shopping experience

Did you know that on average, it can cost up to 5x more to get a new customer than to keep an existing one? (Invesp, 2019)

That means loyalty marketing isn't just a good way to grow footfall, it's a smart financial move, too.

When customers visit physical retail, they're looking for an experience E-commerce doesn't offer. This is the exact reason why loyalty marketing must be an integrated part of the shopping experience.

By making loyalty a part of the shopping experience, such as rewards and engagement while customers shop, you're expanding the value proposition that makes physical retail attractive.

And, when loyalty is part of the shopping experience, rather than adjacent, you get access to valuable insights and data about customer behavior during, before and after their visit. These insights and data can then be used to optimize marketing efforts.

Unleashing the full potential

Loyalty marketing has, in many ways, been the sleeping dragon of physical retail.

By unleashing its' full potential, malls have the possibility to stand out in a market that is increasingly being overtaken by e-commerce.

And, by establishing a mutually valued relationship through loyalty marketing, it can be come the drive behind becoming customers' number one choice.

Start reaching your shopping malls' loyalty potential. Book a demo today.