At present, some of the reputed brands of the US are employing several loyalty programs viz. members only access, fitting rooms to challenge online commerce players. Previously, many American companies viz. Macy’s, Kohls Corp and Nordstrom have employed various loyalty schemes by spending a lot of money.
According to reports, the loyalty programs employed by some of the biggest brands in America have grown at a considerable rate. Analysts have stated that during 2018, the loyalty program cost somewhere around $50 billion. Analysts have also revealed that at present most of the companies prefer to invest 2% of their earning into Loyalty Programs.
Many of the branded companies also include coupons, loyalty points and rewards to get a lot of prospective customers. Contrary to this, the programs set by an e-retail giant like Amazon are remarkable viz. free shipping, storage on a cloud platform and video streaming.
Analysts have stated that most of the brick and mortar retailers do not try to retain their customers due to which they have to spend a great deal of money. During a press interview, Tom Gehani stated that Amazon Prime knows what type of strategy it has to apply to get a greater number of customers. During a press conference back in February 2019, Jeffery Gennette said that the loyalty program has outperformed the expectations of the company.
At present, Nike has started to employ a loyalty program by providing members-only flooring to lure more customers. Moreover, members who have acquired the no-fee program are awarded free of cost delivery. During an exclusive interview, Tom Gehani said that due to so many loyalty programs expectations of customers are getting higher day by day. He also said that Amazon has employed every other strategy to lure its customers due to which it is getting more profit and it would be very challenging for companies to follow it.