Loyal customers may be hard to come by in today’s Christmas retail landscape – but they could be more important than ever in determining the success of seasonal offers programmes.
While received wisdom says today’s consumers may be bombarded with offers and promotions, new figures released by American Express highlight the importance of being able to target offers at a loyal and engaged customer base.
Businesses which signed up to the Cardmember-only Amex Offers programme between June and September this year have seen Cardmembers spend an average of £11 for every £1 spent by the company on price reductions made available through the scheme.
The figures were revealed as American Express announced a new suite of offers for Cardmembers in the busy Christmas shopping season, from firms including leading high street brands and online retailers, as well as travel and dining. The limited duration offers, which leverage American Express’ ability to target Amex Offers promotions at individual Cardmembers based on their spend data, have seen a rapid growth in popularity, and give businesses the ability to target customers with great incentives.
A four month snapshot of the Amex Offers programme between June and September this year showed that the number of Amex Offer-redemptions increased by almost 80% per across this period. Since the launch of Amex Offers, some participating businesses have seen customer enrolments and the number redeeming Amex Offers increase by more than 200% on average.
The simplicity of the system has appealed to businesses keen to drive business results, with minimal administration and no[i]merchant cost to participate, apart from funding the offer.
Nicole Rhodes, from Amex Offers participating online retailer My1styears.com, said: “Offers are an important way of rewarding customers, but it’s always a challenge to bring deals to customers’ attention. Amex Offers gives us a large platform to reach out to likeminded consumers, while requiring a fraction of the administrative time and cost. A month into our first offer, it’s already generating very positive results.”
One leading department store participating in the programme has seen a steady growth in the popularity of its Amex Offers, with an offer in June yielding 30% increase in spend generated by Cardmembers when redeeming the offer compared with an identical offer in March this year.
Daniel Edelman, VP, marketing at American Express, said: “We’re delighted to have helped attract shoppers to businesses through our Amex Offers platform with minimal effort required from the businesses taking part. We’ve helped them engage new and existing customers through offers tailored to their objectives, while removing many of the pain points associated with operating their own promotional initiatives, and our new wave of offers is intended to help participating firms drive spend in the busy pre-Christmas period.”