Following data from the Australian Bureau of Statistics (ABS) that CPI rose 1.2 per cent in the last quarter, there is anticipation of a conservative spending approach this holiday season.
This is where digital loyalty programs could help, says Anurag Vasisth, Co-Chair and Group CEO of Loyalty Now.
“Consumer loyalty is both fickle and coveted. However, digital loyalty programs give businesses access to a platform that delivers tailored value, including rewards and recognitions, tapping into a fundamental consumer desire for value-added experiences. This empowers businesses to lean on customer spending behaviours and leverage those insights to craft personalised offers that resonate with their recipients.”
Digital platforms let businesses learn from customer interactions across multiple touchpoints, creating a comprehensive view of their journey. With these insights, businesses can deliver customised communications and offers that are relevant to the individual, delivering a level of personalisation that bolsters the customer experience and elevates the brand’s position in a competitive market.
“This means that, leading up to and throughout the holiday season, businesses can use changing spending behaviours to create targeted promotions that align with emerging purchasing patterns, thereby enhancing the perceived value of every transaction. And the immediacy of digital rewards for consumers can stimulate a positive feedback loop, encouraging repeat patronage through instant gratifications and incentives,” explained Vasisth.
7-Eleven Australia is one retailer that is taking next steps in evolving its digital solutions to provide customers with convenient shopping and loyalty options, partnering with Grabango to develop the My 7-Eleven App Pay and Go 2.0 which is expected to launch in 10 stores by the end of 2024.
The Grabango technology uses AI to enable customers the choice to skip the register, without the need to even scan purchases using their device.
Stephen Eyears, General Manager – Technology and Strategy at 7-Eleven Australia, said the current My 7-Eleven App Pay and Go feature lets consumers scan their items, or fill their vehicle at the pump, and complete their transaction on their phone without the need to queue at the register.
“The enhancement the team is working with Grabango to make it even more convenient for our customers who choose to pay with the Pay and Go feature as they won’t need to scan merchandise items individually,” said Eyears.
Vasisth said that using digital loyalty and rewards programs leading up to and during the silly season isn’t just a defensive tactic.
“In fact, it’s a proactive strategy for retaining customers and optimising margins. By leveraging consumer spending insights with the precision that the right payment-linked digital loyalty platforms afford, along with providing ultimate PCI DSS Level 1 certified security posture for peace of mind, businesses can transform the looming challenge of a potential dip in festive spending into an opportunity to strengthen customer relationships and optimise revenue streams.
“Embracing a digital loyalty and rewards program as a strategic asset can bolster a business’s resilience against changing economic tides, particularly leading up to and during the festive season. By prioritising personalisation and operational efficiency, companies can deliver meaningful experiences that resonate with customers while simultaneously shoring up their profit margins. Proactive, digitally empowered engagement strategies will likely flourish in the face of spending conservatism, fostering a loyal customer base ready to support the business through the Christmas period and beyond.”