As the holiday season approaches, retailers are under intense pressure to deliver results, with only 27 days between Thanksgiving and Christmas. Rising debt and higher cost of living are contributing to forecasted slower retail sales this year, making it more crucial than ever for brands to stand out. While events like Black Friday and Cyber Monday are still expected to attract crowds and drive online traffic, competition for consumers’ carefully guarded share of wallet will be fiercer than ever.
To maximize holiday sales, joining established external loyalty programs can be a strategic move for retailers. Here are the top benefits of embracing this approach:
Unlocking Access to Engaged Audiences
External loyalty programs offer retailers immediate access to vast, established audiences through networks like banks, airlines and travel companies. Partnering with the right program allows retailers to engage with hundreds of millions of active consumers eager to earn and redeem rewards — many of them highly coveted prospective new customers.
These networks enable targeted marketing, allowing retailers to deliver personalized offers that boost conversion rates. For instance, collaborating with a major airline can help retailers reach frequent flyers with tailored discounts, driving sales.
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Additionally, retailers gain valuable insights into customer behavior, enabling effective marketing campaigns that attract new customers and re-engage lapsed ones. By tapping into these ecosystems, retailers can foster meaningful relationships and position themselves for growth during the holiday season and beyond.
Smart Savings with Cost-Effective Marketing
Joining external loyalty programs enables retailers to achieve marketing goals without breaking the bank. By leveraging shared infrastructure and marketing resources, retailers can avoid hefty investments in independent campaigns, implement quickly and modify program implementation on the fly.
These programs often operate on a pay-for-performance basis, meaning retailers only pay for actual transactions — maximizing their return on investment. This results-driven direct attribution approach not only optimizes marketing spend but also provides access to advanced targeting capabilities that drive customer acquisition and retention.
Leveraging Innovative Tools for Growth
Utilizing innovative tools within external loyalty networks is vital for driving growth. The convergence of Affiliate (Click-Linked Offers) and Card-Linked Offers (CLOs) is reshaping the loyalty landscape, creating a powerful ecosystem that delivers measurable results for retailers. Some of the best external loyalty programs today offer this, combining the strengths of both models to engage consumers across multiple channels. This integrated approach allows retailers to provide consumers with the flexibility to earn rewards across various platforms, enhancing customer satisfaction, increasing visibility and optimizing return on ad spend.
By blending Affiliate and CLO programs, retailers gain access to valuable, consented customer data that fosters personalized, relevant experiences. With the use of first-party cookies, they can deliver highly targeted offers and promotions, building stronger, trust-based relationships with consumers. This convergence offers an opportunity to track performance in real time, both online and in-store, helping retailers refine their marketing strategies and maximize incremental sales.
As the market shifts toward this unified, performance-based model, external loyalty programs that integrate both affiliate and CLO strategies offer retailers the ability to stay ahead of the curve, drive deeper engagement and foster sustainable growth through personalized loyalty solutions.
In this dynamic retail landscape, traditional methods of attracting customers are no longer enough to drive sales amidst shifting consumer behavior and economic challenges. By integrating with established external loyalty programs, retailers can enhance their visibility, engage with target audiences and leverage valuable insights to tailor their offerings. Those who embrace these partnerships will navigate the complexities of this holiday season while paving the way for sustained success in the future.
Ed Wogan leads the team responsible for scaling Valuedynamx’s network of content. His priorities also include expanding distribution and leveraging the value of the data the company aggregates. This supports many of the unique strategic partnerships which he is responsible for building, as well as the Valuedynamx Marketplace. With a proven track record of success, Wogan has delivered growth and revenue in digital, print, media and data solutions. He has a passion for driving innovation with key merchant partners and has worked closely with retailers including Kroger, CVS, Walmart, Walgreens, Ahold USA, Supervalu/UNFI, Albertsons, Target, 7 Eleven and Sobeys, to name just a few.
