The constant evolution of retail technology is creating a trove of opportunities for new players while making digital transformation imperative for incumbents. The competitive structure of the industry is undergoing a drastic change, enabling tech-enabled competitors to steal share. Experience-based models are getting an edge over ‘transactional’ loyalty, forcing retailers to drive consumer loyalty through emotional connections.
On average, each shopper is involved in more than six loyalty programs as per Deloitte’s Retail Outlook 2019. And, driving true loyalty is only becoming more difficult. With this in mind, retailers should optimize loyalty programs so that the elements of personalization and exclusivity come into play to get customers hooked.
Gone are the days when personalization in offline retail was considered to be impossible, due to the lack of a viable solution. However, emerging technologies including Artificial Intelligence are empowering physical retail businesses to segment customers based on their value only to provide a differentiated experience and foster loyalty.
Typically, loyalty programs are built around points and discounts, which can only be used with that particular retailer within a particular time frame. Apparently, this is leading to the poor performance of traditional loyalty programs. A study on the US coupon market reveals that customers redeemed only about 2 billion coupons out of 307 billion that were distributed in a year. Beyond the traditional loyalty benefits, modern-day customers are looking for a marketplace where they can use their loyalty points, leaving all those worries about expiration dates.
Nucleus Vision’s proprietary technology is an epitome of this personalization model for physical stores. The company embarked on leveraging a combination of AI, IoT, and Blockchain to reshape customer experience in brick-and-mortar stores. Understanding this aspiration of customers, Nucleus Vision has created a decentralized ecosystem, where retailers and customers are the stakeholders of a token-based loyalty ...
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