How To Make Shoppers Trust Your Brand

Posted in Retail
By Taylor Longfield on January 26, 2016

blog post jan 26Asking for an e-mail at checkout, or trying to convince shoppers to buy-in to your loyalty program by saying they can save 25%, might be doing more harm than good. Why? Consumers want to know what’s in it for them and what benefits they’re going to receive.

Loyalty programs that are not delivering to their users are in danger, 44% [of shoppers] feel that it would be easy to move to a competitor. Providing the right rewards and being open about the membership contract is the foundation of a good loyalty system. Companies who choose not to disclose how personal data is being used are at a higher risk of losing customers and revenue. Using the collected data in the most effective ways will keep consumers happy, and should be priority number one.  If brands and retailers choose to give details about the purpose of the loyalty program, its benefits and provide personalization, it will be a win-win situation.

Who’s Doing Value Exchange Right?

Recreational Equipment Inc. (REI) saw a 10% increase in revenue in 2014 by implementing a unique loyalty model. REI is a cooperative, meaning it is owned by its members, and, therefore, has a strong community base. Their model? Members pay $20 dollars and along with discounts on products, trips, and classes they also receive a 10% dividend. The trust  REI receives from its members pushed company sales ahead of two of their major competitors, The North Face and Columbia Sportswear.

The MagicBand from Disney allows users to access theme parks, enter hotel rooms, purchase food/merchandise and provides special offers tailored to each individual. While the MagicBand gathers a lot of data the tradeoff for reserving spots at attractions, and what feels like VIP access (available literally an arm’s length away) is proving to be worth it to users.

While Uber doesn’t have a loyalty program per say, the company did team up with city officials in Boston in hopes of creating a smarter city. Early last year Uber signed a contract with the City of Boston to quarterly provide anonymous trip data. This new information will help to improve the city’s transit services and alleviate traffic congestion. What does Uber receive in return? With this partnership the hope is to gain a higher political standing and greater ability to make a case about the legality of the service- progress has been made in London. Uber’s goal is to make transportation easier for its users, with data sharing Uber will not only impact the platform’s users but the transportation of traditional commuters as well.

The Secrets to Success

  1. Providing transparency in the membership contract allows consumers to know what they’re signing up for.
  2. Creating a loyalty program that is easy to understand will benefit both the consumer and the brand.
  3. Allowing customers to volunteer information that they want to share may be the key concept that improves both customer happiness and company revenue.


Personal data can be used and collected in many different ways and formats. Customers are happy when they’re kept in the know and retailers can reap the benefits. Whether it’s to make more personalized marketing campaigns, to enhance a product/service or simply to bring in more revenue, it all starts with the effectiveness of a loyalty program.