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Incentivized Shopping: A Comprehensive Analysis of Mall Loyalty Programs

  • Posted on May 14, 2024 by Robert
  • Reading time about 5 minutes
mall loyalty programs

Customer loyalty is a growing space and has established its importance in almost every sector. The reason is quite apparent. No business wants to burn money on aggressive marketing to acquire new customers only to lose them to a better offer from a competitor. Customer attrition is real, and brands get the brunt of it if they don’t invest in a well-planned loyalty program.

Shopping malls that haven’t paid much consideration to customer loyalty till now are turning their heads toward mall loyalty programs because of the results they produce. To increase footfall and ensure repeat business, they are embracing coalition loyalty programs and much more.

This blog will discuss the hidden opportunities in customer retention for malls, and how coalition programs fit into the picture.

Mall Loyalty Programs: An Overview

Customer retention is crucial to shopping malls because of fierce competition. Mall loyalty programs are a robust incentive system where customers earn points beyond their purchases. They get incentivized to use different services in the mall, be it using a food court or visiting a salon. These multi-brand programs allow customers to accumulate points based on different experiences with different brands. They can redeem these points across a wide spectrum of services.

Customer Retention: An Opportunity for Malls

Traditional retail programs were limited to rewarding points for making a purchase. Mall loyalty programs go beyond this cliched approach. They succeed in appealing to an array of customers and engaging them through experiences. Malls seek high footfall, and that can only be achieved by turning shopping experiences into entertainment. Let’s find out the top norms of shopping that can work wonders for malls’ traffic.

Turn Experiences into Entertainment

By placing virtual try-on mirrors in the apparel stores, you can attract customers to the mall. By making the try-room experience digital, you can add an entertainment element to the shopping experience.

Promote Engagement Outside the Stores

It’s not just the brand stores or outlets that bring customers to a mall. It’s the overall ambiance, experience, and entertainment that engage them. Outside the brand stores, malls must pay attention to aesthetics. Decoration, adding kids’ areas, kiosks, and festival themes to the entire customer base.

Pick the Right Pain Points

Many malls offer parking fee exemptions to customers who buy for a certain amount from selected merchants. Mall parking is always tacky for customers. Waiving off such small yet painful expenses can help you win customers.

Build a Coalition Program

Retail loyalty programs aren’t a new thing for retaining customers. When it comes to building loyalty for malls, coalition loyalty programs do the job perfectly. This way, you can include every store in your loyalty strategy, and customers would also enjoy more freedom to earn points with different brands.

What are Coalition Loyalty Programs and How They are Ideal for Malls?

Coalition loyalty programs are typically initiated by mall management and then extended to various tenant brands. The program owner takes on the responsibility of managing and overseeing the entire system. A key feature of these programs is that they generate excitement and loyalty towards the program itself, rather than just individual brands.

For malls, this setup is particularly beneficial. Tenants reap the rewards of the loyalty program’s popularity, which drives increased foot traffic to the mall. Shoppers, drawn by the attractive loyalty benefits, tend to spend more time and money within the mall. The presence of all participating brands in one location ensures that customers have access to a wide range of offers, enhancing their overall shopping experience.

In essence, a coalition loyalty program not only boosts customer engagement through entertainment but also creates a win-win situation for all stakeholders involved. Shoppers enjoy a rich, rewarding experience, while brands benefit from heightened visibility and increased customer spending.

Why are Coalition Programs a Perfect Fit for Malls?

Coalition loyalty programs can be a game-changer for malls and businesses because they offer a variety of perks that make shopping more enjoyable and personalized for customers. At the same time, they support tenant businesses and mall management.

Benefits for Program Owners

1. Coalition programs bring more foot traffic to the mall and facilitate repeat purchases. It’s good for the mall business, as it adds to their authenticity and brings more business to them.

2. Coalition loyalty programs allow real-time data analytics, empowering multi-brand retailers with customer data to offer a personalized shopping experience.

Benefits for Tenants

1. Tenants can utilize the mall’s loyalty technology to create smoother customer journeys. It will help them identify and reward loyal customers.

2. Co-branded social media contests, in-store treasure hunts, multi-brand referral systems, and user testimonials are some of the useful ways to win customer loyalty.

Benefits for Customers

1. Customers visit a mall not just for shopping but for a memorable shopping experience. If they start to earn rewards, irrespective of which store they shop from, they will return for more such rewards.

2. In their minds, they will have more opportunities to earn reward points on any purchase they make from the mall. This will increase the average order value and help them accumulate points faster.

Coalition loyalty programs are a win-win situation for all three parties. They make shopping more exciting for customers, more rewarding for tenants, and more profitable for the malls.

Technology is the Key to Success.

Building a robust coalition loyalty program is not instant work. You must research the market to understand how technology is shaping the loyalty space. Partnering with an efficient loyalty management platform is paramount to ensuring your success. Novus Loyalty has earned a reputation for building robust coalition programs for different industry players. If you are a shopping center business looking for an advanced loyalty management solution to retain your customers and increase foot traffic, Novus can help you. Get started building your coalition loyalty program.

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