Is the concept of Loyalty Club dying in today’s business market

In the last centuries, businesses knew each and every one of their customers’ names as well as their unique preferences. They used this information to keep a strong and going business-customer relationship, providing rewards to customers on an occasional basis. 

Nowadays, as businesses are expanding quickly, not just locally but globally as well, it is no longer possible to remember and know every customer that has entered their various locations without any tool.

Now e-commerce is armed with advanced promotional tools and the technology to offer personalized product recommendations and customer experiences. They place less prominence on having a designated loyalty club to collect data, by associating each visitor with an account, they have the ability to target all repeat buyers.

Modern businesses have a proper data collection tool in place that collects information and forms analytics on every customer that passes through their websites and stores so the whole idea of having a specific “club” is becoming less and less relevant today. 

The information that is gathered when a customer logs onto the website or application is used to build a view of the customer and inform the offers and communications that keep them engaged. Because of this, what’s happening is that data collected is removing the need for a loyalty club. This is because loyalty clubs only attract the top 20% of customers, who would probably buy from the business anyway, with or without the club in place. Businesses fail to engage some of the more infrequent purchasers who do not belong to the top 20% 

The truth is, every brick-and-mortar business is sitting on a goldmine of data from their customers. However, only the market leaders are using it to power offers and communications that are tailored to the very people receiving them. This includes online giants such as Amazon or

It becomes crucial for businesses today to create loyalty programs that help their business get to know all their customers, unlike an exclusive loyalty club. 

Wefee1 provides retailers and restaurants with the data-driven customer engagement tools they need inside their POS to know their customers, personalize their experience, and grow visits and spend.

Request a demo with us to learn the benefits of building a seamless loyalty program!

Ankita Srivastava

Ankita Srivastava

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