Are The Works right to move away from loyalty to save costs?

On the 1st March, UK books and crafts retailer, The Works announced they are scrapping their Loyalty program to reduce costs.

The Works CEO, Gavin Peck said "With high inflation and a cost of living crisis affecting many of our customers, we have done our best to avoid putting up price and we would like to keep it that way".

Like many businesses, The Works has had a very tough few years and need to urgently cut costs to continue to thrive. But are they right to cut their loyalty program?

"Are The Works right to move away from loyalty to save costs?"

The retailer's loyalty program, Together Rewards, awards customers five points for every £1 spent. Once customers accumulate points equivalent to 50p, a physical voucher is dispatched for them to utilise either in-store or online.

We believe that the current loyalty program may be confusing for customers aiming to accumulate points. Instead of discontinuing the loyalty program altogether, The Works should consider devising a strategy to enhance customer retention through a redesigned loyalty program. Based on our previous insights, our community heavily favours personalization and instant rewards boosts as effective methods for increasing customer acquisition.

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