Post-pandemic travellers have shifted their shopping behaviours and preferences, prompting duty-free retailers to rethink their consumer engagement strategies to foster recovery and growth. In response, South Korean duty-free operators have introduced new loyalty programmes tailored to specific consumer microsegments, offering more personalised benefits. To thrive, brands are moving away from a one-size-fits-all model in the design and management of their loyalty schemes.
Sustainable practices, which range from minimising a brand's environmental footprint to advancing sustainability goals, have helped create and cultivate authentic brands that resonate with consumer values and strengthen brand image.
Segmenting your consumers helps you better understand and reach the right shoppers. We have defined seven types of consumers with distinct personalities. Targeting these types can help you increase conversions or better understand and connect with existing customers.
The increase in the cost of living, growth in e-commerce purchases, and interest in experiences are key drivers that loyalty programmes should consider when profiling the North American consumer. Currently, North Americans have a higher participation in loyalty programmes within industries they interact frequently as a higher engagement allows them to maximise the value of their spending.
Traditionally, loyalty programmes have relied heavily on transactional rewards to incentivise repeat purchases. With increased saturation in the loyalty space and lack of added services and perceived value, consumers tend to ignore (or not check regularly) their points status. This represents a major stumbling block for Generation Z for whom transactional points are no longer a significant draw; instead, they are highly conscious about important causes that support purpose-driven initiatives, and seek to explore how loyalty programmes embrace such initiatives.
This video examines how leading operators, reliant on point-based programs, can innovate to differentiate and add value, fostering stronger brand loyalty.