What: The Robin Report advocates for investments in existing loyalty programmes in times of recession.

Why it is important: While the suggested actions might seem obvious, they represent nevertheless a useful reminder of the basic steps that should be taken.

As the U.S. economy faces potential recession, retail CFOs are focusing on cost-cutting measures. However, this article suggests that investing in loyalty programs and member marketing could be a strategic move. During a recession, consumer behavior changes, with a tendency towards budget channels, deep discounts, and less loyalty. Therefore, traditional marketing models may not be as effective.

Loyalty programs can offer significant benefits. According to Accenture, 90% of retailers have some form of loyalty or subscription program, which often includes rewards, exclusive benefits, and personalized offers. These programs not only encourage customers to shop more and spend more, but they also provide a valuable source of consumer data.

During a recession, retailers without a loyalty program may find it expensive to implement one. However, for those with existing programs, several strategies can help maximize their effectiveness:

1. Reallocate resources into loyalty and ensure cross-functional alignment.
2. Revisit program rewards and benefits, focusing on saving money and lowering risk for customers.
3. Streamline the program to remove friction and increase sign-ups.
4. Increase the visibility and frequency of loyalty messaging across all channels.
5. Train store staff to provide excellent service and promote the loyalty program.
6. Set up experimental tests to understand what works and what doesn't.

By focusing on loyalty programs during a recession, retailers can preserve their most valuable asset - their customers. This proactive approach can help businesses emerge stronger on the other side of an economic downturn.

6 recession-proof ways to uplift loyalty