“Our research shows that 92 per cent of consumers would become loyal to a brand if it offered them something,” says Shopify managing director, APAC and Japan, Shaun Broughton.

“Consistently low prices or promotions were a top draw for 59 per cent of consumers.”

But while low prices and promotions are significant, they are not the sole drivers of loyalty.

Broughton says that “the offer of high-quality goods would keep over half (51 per cent) of consumers loyal,” and 45 per cent of consumers cite loyalty points or rewards as an effective way to foster loyalty.

Shopify’s unified commerce capabilities play a crucial role in helping retailers create seamless shopping experiences.

One example of this is the ability to track loyalty points and rewards across multiple channels through app integrations available in the Shopify App store.

“Retailers can track customers’ loyalty program points and offer benefits no matter where they shop,” Broughton says.

Enhance programs with advanced features

Successful loyalty programs are built on the ability to track and reward customer purchases consistently across all channels, says Broughton.

“Shopify’s seamless integration with digital channels and bricks-and-mortar stores allows retailers to synchronise loyalty program information across their owned online channels and physical channels,” Broughton says.

This ensures that customers have a consistent experience, whether they are shopping in-store, online, or through social media.

“Shopify’s unified commerce platform captures first-party customer data across sales channels,” Broughton says. “Retailers can drive more meaningful, personalised experiences from the very beginning of the customer journey.”

For instance, if new parents buy products for a newborn baby from a brand in-store, the information from that visit can be used when they visit the same brand’s online store six months later to offer specials or promotions on products for older babies.

The real-time tracking and visualisation of key business information are facilitated by Shopify’s unified analytics.

“Shopify’s unified analytics enable retailers to track and visualise important data, such as sales, average order value or conversion rate, all in real-time,” Broughton says.

This capability allows retailers to make informed decisions and tailor their offerings to meet customer needs effectively.

The way forward

As retailers navigate the challenges of 2024, several trends in loyalty strategies are becoming apparent.

High-quality goods, loyalty points, rewards, and seamless user experiences are at the forefront.

“Increasing customer service levels is among the top measures being taken by retailers to deal with 2024’s challenges,” Broughton says.

From the perspective of Aaron Gard, group general manager, digital and loyalty, at Brand Collective, customers’ expectations around service quality have increased dramatically, and omnichannel engagement is often the best way for retailers to meet those expectations.

“When it comes to customer service, customers intuitively feel that every brand should act in an omnichannel way, and they should receive the same high quality of service for online purchases as they would receive in a traditional retail store,” Gard says.

This focus on service is complemented by significant investments in technology, with 61 per cent of retailers planning to increase their technology investment in social commerce over the coming year.

Implement effective schemes

Marc Aronsten, senior vice president at global branded commerce leader Tryzens, says retailers can use high-quality goods to engage customers meaningfully.

When it comes to leveraging high-quality goods, Aronsten stresses the importance of value for money, especially in times of economic pressure.

“It’s really about value for money. So, for retailers serving most of us, it’s critical to understand why your customers value these goods,” says Aronsten.

“By grasping this context, retailers can communicate the intrinsic value of their products more effectively, making it clear why their offerings stand out despite economic pressures.”

Connecting with customers on a deeper level, understanding their journey, and making them see their purchases as meaningful investments in their lifestyle are key strategies.

“This deeper connection with the customer journey allows brands to not only attract but also retain customers who see their purchases as meaningful investments in their lifestyle,” Aronsten says.

Implementing effective loyalty programs

Aronsten says that loyalty programs should go beyond transactions and urges retailers to deeply understand their customers and what they value.

“When we talk about loyalty programs, it’s essential to think beyond transactions,” he says.

“Using behavioural science to influence and reward behaviours that align with both customer and retailer value is crucial.

“Deeply understand your customers, and what they value and then use a good dose of behavioural science to understand how you can influence and reward behaviour that is aligned to value for both customer and retailer.”

“By aligning the rewards with the real-life use cases of your products, you can ensure that each reward feels personally significant to the customer,” Aronsten says. “Think about adding special experiences, like exclusive events or personalised services that make customers feel valued. This way, the loyalty program becomes more meaningful and keeps customers engaged.”

Additionally, maintaining an ongoing feedback loop allows the program to adapt to changing customer needs.

Impact of a seamless user experience

Aronsten says that humans naturally gravitate towards familiar and routine experiences due to the status quo bias.

“Humans are creatures of habit. Some of us fight that harder than others but as a rule, we naturally gravitate towards what’s familiar and routine,” he says. “A smooth and easy user experience is key to keeping customers in that comfort zone with your brand.”

Please visit Shopify to download The Australian Retail Report 2024.