retail loyalty programmes
TRANSCRIPT
-
8/2/2019 Retail Loyalty Programmes
1/15
Click to edit Master subtitle style
4/11/12
Retail Loyalty Programmes
-
8/2/2019 Retail Loyalty Programmes
2/15
4/11/12
Contents
What is a loyalty programme?
Loyalty Success Factors
Introduction to Retail Loyalty Programmes
Loyalty Programme Structure Secrets
Loyalty Programme Promotions - Driving Sales
Summary
-
8/2/2019 Retail Loyalty Programmes
3/15
4/11/12
What is a loyalty programme?
The systematic collection of customer data in return for rewards or
benefits, often used to give customer additional privileges or servicesto best/loyal customers
Opportunities Understand customers Give discounts to best customers only Adjust real price for certain customers Use data to negotiate with partners
-
8/2/2019 Retail Loyalty Programmes
4/15
4/11/12
Loyalty Programme Options
Points Discount Rebate
Earn points and redeemfor rewardsGood-Offers control-Customer understands-
Lower costBad- Points cost are knowledge- Accrued liability
Immediate discount forpresenting cardGood-Easy and instant- No liability
Bad- Discount has to be large(+10%)- No control
Reward spend overtimeGood-Easy to manageBad
- Little control- Easy to copy e.g. stampcard- Little emotional connection
EssoSmiles
Jusco
Starbucks
Krisflyer
Privilege
Earn points and redeem for rewards plus tiers of privilegeGood-Privileges lead to loyalty-Offers control-Customer understands
Bad- Low spend customer disillusion- Competitors can match
CathayMarcoPolo
-
8/2/2019 Retail Loyalty Programmes
5/15
4/11/12
How does it work?
Nets & Credit
Bank
Data
122132
Transaction
Database
Custom
ers
Analysisservices
MarketingPlanning &Promo
tion tactics
Dataentry
122132
nameemail
mobile
Application
Form
agefamily
NRIC
122132
nameemail
mobile
agefamily
NRIC
Customer card
-
8/2/2019 Retail Loyalty Programmes
6/15
4/11/12
Considering aprogramme?Steps to launch
Planning
1. Feasibility audit
2. Customer research3. Financial planning
4. Develop programme model
Implementation1. Implementation develop systems/communications
2. Launch
Management (operations)
-
8/2/2019 Retail Loyalty Programmes
7/15
Click to edit Master subtitle style
4/11/12
Loyalty Success Factors
-
8/2/2019 Retail Loyalty Programmes
8/154/11/12
Critical Success Factors for CustomerLoyalty
TargetAudience
BrandPositioning
Customer
LoyaltyDrivers
Degree ofParticipation
Choice ofrewards
Generosity
Deliveryof
rewards
Liabilityrisk
InvestmentCost
GettingCustomers to
join
CompetitorStrength
SalesFocus
-
8/2/2019 Retail Loyalty Programmes
9/154/11/12
How is itsuccessful?
TargetAudienceRegular
shoppers
Brand
Positioning- for everyone
-Birthday treats-Members only
CustomerLoyalty
DriversUse
membershipTo make offers
Degree ofParticipation
High
Choice of
rewardsChoose fromwhole store
GenerosityVery generous
rebate up to20%
Delivery ofRewards
rebatevouchers
(casheffectively)
Liability
RiskHigh but also
Highredemption
InvestmentCost
High
GettingCustomers to
JoinEasy free
membership
Competitor
Strengthn/a
SalesFocus
Very High
-
8/2/2019 Retail Loyalty Programmes
10/15
Click to edit Master subtitle style
4/11/12
Loyalty Program
Structure Secrets
-
8/2/2019 Retail Loyalty Programmes
11/15
4/11/12
Loyalty Programme StructureSecrets
2
5
46
1
37
8
Data Collection
Sales PromotionIntegration
Loyalty ProgrammeMechanics
Brand Extension
Clubs withinprogramme
FMCGPartnerships
ValueProposition
InvestmentRatio
-
8/2/2019 Retail Loyalty Programmes
12/15
Click to edit Master subtitle style
4/11/12
Loyalty ProgrammePromotions - DrivingSales
-
8/2/2019 Retail Loyalty Programmes
13/15
4/11/12
Promotions
1. Statements
2. Personal shopping lists
3. Geo-targeting
4. Events
5. Layered promotions
6. Regular communications
-
8/2/2019 Retail Loyalty Programmes
14/15
4/11/12
Summary
Programmes offer opportunity to get to knowcustomer thats cost of knowledge that must berecovered
Opportunity comes from using the data to drivemore spend - personal shopping lists
Customers enjoy being part of programmes ifthey get privileges of whatever value thereforework hard to give them value
-
8/2/2019 Retail Loyalty Programmes
15/15
4/11/12