According to the fifth edition of Salesforce’s Connected Shoppers Report, retailers still struggle to capitalize on all the customer data flowing into their loyalty programs.
The top five barriers to loyalty program ROI (return on investment) were:
- Lack of customer insights for targeting
- Inability to rapidly react to market opportunities/competition
- Inability to predict promotional revenue
- Disparate systems to manage the promotion lifecycle (conceptualize, configure, distribute, measure)
- Lack of clarity into which promotion types resonate with loyalty members
The study, based on a survey of 2,400 shoppers and 1,125 retail decision-makers, also found that a loyalty program’s heavy emphasis on discounting impacts profitability.
