Loyalty without a loyalty card
Posted: Thu Dec 05, 2024 7:06 am
Loyalty cards have had their heyday… But for several years now, many brands have been making a comeback. In 2018, Decathlon announced the end of its loyalty points program. In a communication to all its members, the brand declared that it was abandoning its card system, which was causing frustration among its members, citing a tweet from one of its customers: “I have been a customer for years with the loyalty card and it only gives €6 in vouchers! There is reason to be disappointed.” New consumers want to receive offers, personalized messages and be active in their relationship with brands. Transactional loyalty programs are no longer sufficient for consumers looking for emotions, experiences and relationships.
Loyalty without a loyalty card
A la carte? 8 tips!
In our #Workout 1 webinar hosted with our partner Stratello , we offered bahrain whatsapp number data 5 million you the chance to explore in 40 minutes the different strategies for setting up a loyalty program… without a card! A look back at the 8 tips discussed:
1: Define your notion of customer loyalty
First ask yourself this question: who are your loyal customers?
- Are they those who order often (frequency indicator) or those who spend the most (amount indicator)?
- These can also be your oldest customers or those with the highest customer value , as is often the case in the banking sector for example.
- Conversely, in the food distribution sector, marketers prefer to define loyal customers as those who make a significant share of their spending in their brand.
- In the world of Multimedia and Press, we will favor customer recommendation indicators to define loyal customers (number of sponsorships, posts, likes, etc.)
Loyalty indicators can therefore be transactional, more global (customer profitability) or behavioral (likes, recommendations). Once this notion of loyalty has been defined, it is important to share it internally so that it is identical to all business units (sales, marketing, customer relations, etc.). This will allow you to ensure the consistency of your loyalty strategy, which will be well oriented towards the same goal.
1: Define your notion of customer loyalty
2: Set loyalty goals
The idea is to objectify your loyalty strategy with concrete figures. Ask yourself the right questions: how much would 1,000 more loyal customers bring you? An additional loyalty rate point? How many loyal customers do you currently have and how many do you expect by the end of the defined period? For what turnover, margin, ROI? From these answers, you can then deduce the share of the budget that you will allocate to your loyalty actions.
Keep in mind: retaining a customer is 5 to 10 times cheaper than acquiring a new one. Hence the importance of allocating a substantial budget to the loyalty strategy (which you can compare to your budget allocated to acquisition).
2: Set loyalty goals
3: Establish key indicators
These key indicators are used to verify the achievement of the objectives defined previously. These are portfolio monitoring indicators that allow you to follow the progress:
- RFM segments, customer value
- churn, retention and loyalty rates
- ROI of loyal customers vs. ROI of non-loyal customers, average cost of loyalty
- ROI of activity/responsiveness of loyal vs. non-loyal customers by analyzing in particular opening rates, deliverability, commercial pressure, click rate, etc.
- customer satisfaction: satisfaction rate, Net Promotor Score, Customer Effort Score, etc.
3: Establish key indicators
4: Identify your customers’ expectations
In order to propose relevant actions, it is advisable to assess your customers' expectations. Here are 5 major global consumer expectations (to be specified according to your customers, your field of activity, etc.):
A personalized experienceA personalized experience Background
A personalized experience
by offering recommendations/offers tailored to their expectations, by recognizing your customers across all your brand channels.
A seamless customer experienceA seamless customer experience Background
A seamless customer experience
The multiplication of channels implies being able to follow the customer and their journey in an omnichannel way, without loss of information. The challenge is therefore to have a 360 view of the behaviors and actions of your customers.
A simplified customer experienceA simplified customer experience Background
A simplified customer experience
by offering facilitating services (one-click ordering, fast and efficient processing of requests, easily available after-sales service, etc.)
A reward for purchases madeA reward for purchases made Background
A reward for purchases made
with exclusive offers, promotional benefits based on purchasing behavior
A proximity to the brandA proximity to the Background brand
A proximity to the brand
a transparent, ethical relationship with a committed brand that offers content of interest and is able to motivate its community of consumers.
Loyalty without a loyalty card
A la carte? 8 tips!
In our #Workout 1 webinar hosted with our partner Stratello , we offered bahrain whatsapp number data 5 million you the chance to explore in 40 minutes the different strategies for setting up a loyalty program… without a card! A look back at the 8 tips discussed:
1: Define your notion of customer loyalty
First ask yourself this question: who are your loyal customers?
- Are they those who order often (frequency indicator) or those who spend the most (amount indicator)?
- These can also be your oldest customers or those with the highest customer value , as is often the case in the banking sector for example.
- Conversely, in the food distribution sector, marketers prefer to define loyal customers as those who make a significant share of their spending in their brand.
- In the world of Multimedia and Press, we will favor customer recommendation indicators to define loyal customers (number of sponsorships, posts, likes, etc.)
Loyalty indicators can therefore be transactional, more global (customer profitability) or behavioral (likes, recommendations). Once this notion of loyalty has been defined, it is important to share it internally so that it is identical to all business units (sales, marketing, customer relations, etc.). This will allow you to ensure the consistency of your loyalty strategy, which will be well oriented towards the same goal.
1: Define your notion of customer loyalty
2: Set loyalty goals
The idea is to objectify your loyalty strategy with concrete figures. Ask yourself the right questions: how much would 1,000 more loyal customers bring you? An additional loyalty rate point? How many loyal customers do you currently have and how many do you expect by the end of the defined period? For what turnover, margin, ROI? From these answers, you can then deduce the share of the budget that you will allocate to your loyalty actions.
Keep in mind: retaining a customer is 5 to 10 times cheaper than acquiring a new one. Hence the importance of allocating a substantial budget to the loyalty strategy (which you can compare to your budget allocated to acquisition).
2: Set loyalty goals
3: Establish key indicators
These key indicators are used to verify the achievement of the objectives defined previously. These are portfolio monitoring indicators that allow you to follow the progress:
- RFM segments, customer value
- churn, retention and loyalty rates
- ROI of loyal customers vs. ROI of non-loyal customers, average cost of loyalty
- ROI of activity/responsiveness of loyal vs. non-loyal customers by analyzing in particular opening rates, deliverability, commercial pressure, click rate, etc.
- customer satisfaction: satisfaction rate, Net Promotor Score, Customer Effort Score, etc.
3: Establish key indicators
4: Identify your customers’ expectations
In order to propose relevant actions, it is advisable to assess your customers' expectations. Here are 5 major global consumer expectations (to be specified according to your customers, your field of activity, etc.):
A personalized experienceA personalized experience Background
A personalized experience
by offering recommendations/offers tailored to their expectations, by recognizing your customers across all your brand channels.
A seamless customer experienceA seamless customer experience Background
A seamless customer experience
The multiplication of channels implies being able to follow the customer and their journey in an omnichannel way, without loss of information. The challenge is therefore to have a 360 view of the behaviors and actions of your customers.
A simplified customer experienceA simplified customer experience Background
A simplified customer experience
by offering facilitating services (one-click ordering, fast and efficient processing of requests, easily available after-sales service, etc.)
A reward for purchases madeA reward for purchases made Background
A reward for purchases made
with exclusive offers, promotional benefits based on purchasing behavior
A proximity to the brandA proximity to the Background brand
A proximity to the brand
a transparent, ethical relationship with a committed brand that offers content of interest and is able to motivate its community of consumers.