A Guide to Loyalty Program for Shopping Malls

Guides | 6 Min Read

Shopping mall loyalty programs are an inventive system where customers can earn points for shopping and using services inside the mall. Customer loyalty increases profits, improves sales and allows sustainable growth which has led to the existence of loyalty programs across various industries. 

Objective of a mall loyalty program is to :

  • Increase customer footfall in the mall i.e. number of people visiting the mall 
  • Create an unbelievable shopping experience for visitors 
  • Engage customers to create loyalty & retention
  • Understand shopping trends and behaviour for adopting customer-centricity

In order to create and implement a successful mall loyalty program, the stakeholders have to get 3 areas of the loyalty model right i.e. Tenant, Shoppers and Centre management. 

Tenants – Tenants are the brands placed within the physical premises of the malls. And they are primarily responsible for the success of the program. Thus, it becomes crucial for the Mall Management to invite, collaborate and create a holistic program in the interest of the tenants.

Shoppers – Shoppers will only make use of the mall loyalty program if they are easily able to understand it. In order to easily communicate the loyalty program to customers, malls will have to carefully map out customer journeys and touchpoints to optimize it.

 

Centre Managers –  Centre managers are the super admins of the program. They will have master control over data that is collected and processed. This team will include program managers, marketing, sales & operations teams working cohesively to build campaigns for the shoppers. 

 

 

loyalty program for malls

What problem do they solve?

CUSTOMER LOYALTY cannot be bought, it has to be earned. Loyalty has long term benefits and needs to be kept up through the entire customer lifecycle. Here are some ways in which malls can create concrete loyalty when implementing these programs. 

Keep it SimpleThe key is to keep it less engineered and simple for customers to understand in their shopping journey. The mall loyalty program should comprise minimum steps to register and multiple points to use so there is higher engagement. Earn and burn strategy works best in this case as shoppers earn points in real-time and stay hooked onto the loyalty program for a longer period of time. It is also important to keep the earn and burn dynamics simple so that they can be easily communicated at the POS (Point-Of-Sale) through the tenants.

Engage your TenantsEngaging tenants effectively will determine the success of the program as they will be the first point of contact with your customers. This makes it important to have the right kind of promotions for all brands and adequate training for staff. If attractive offers bring value to the brands, store employees including the managers will love to promote the loyalty program and encourage shoppers to be a part of it.

Select the Right PartnerGetting the right loyalty program partner who will provide the best technology for the deployment will make the process faster and leave the competition in the market behind. Getting an experienced loyalty program partner will aid malls to implement an appropriate structure keeping in mind the interest of retailers and adopting a seamless process for acquisition, retention and engagement.

Get the Technology Right!– Nailing the technology adoption will make it easy for mall employees and staff to use at POS and for customers to redeem points conveniently. Furthermore, it will make knowledge transfer to staff easy thus leading to excellent customer support. At the same time technology embedded should collect adequate customer data that can be further leveraged by malls for analysis and providing value.

Branding and PromotionHow will your customers know about the loyalty program?  

Create a 360 marketing strategy to showcase the unique value that it brings for your shoppers. Build an urge to opt-in and create a FOMO (fear of missing out) for the non-members. A key focus of the strategy should be to activate campaigns on-ground (at the mall) as that is where your target audience will largely engage.

Leverage DataData gathered from your customers using the program will allow malls to create distinguished customer segmentation, cater to customer shopping behavior and deliver extreme personalization. As mentioned earlier personalization is crucial and thus data collected gives a broader view to analyze customer behavior i.e. how often do they shop, which brands do they prefer, how much do they spend and suitably optimise the journey. On the other hand, tenants will be able to gather insights on how loyal customers are towards their brand allowing them to position their offers better.

 

loyalty card for malls
Harrods Loyalty Program

Why are Loyalty Programs beneficial? 

Mall loyalty programs create a win-win situation for all parties involved in the ecosystem.

Loyalty programs help shoppers save money and additionally receive rewards and prizes that can be redeemed seamlessly at multiple stores.
A loyalty program also keeps customers up to date with all the exciting promotions and offers and helps mall management reach their customers even when they are not at the mall. Loyalty programs not only bring value in terms of saving money but also helps customers have excellent customer service leading to high customer satisfaction.

“From a recent survey, it is seen that 84% of the customers choose retailers with loyalty program”

FutureCustomer.Tech offers a data-driven loyalty program for malls which is currently implemented in leading shopping malls in India like Phoenix Mills group and Select CityWalk, Delhi. FCT has various platforms for customer engagement such as a Web-app, Mobile App, WhatsApp Chatbot and Kiosks. Over the last year, FCT has acquired and engaged over 250K+ users which has resulted in a 60% MOM increase in daily active users, driving $1.3 Million in sales through coupons and rewards.