Fidelity card and paying customer loyalty

We spoke for two of the most important supermarket chains in Italy but the same reasoning can apply to all the others as well as to all those who have a loyalty card and have, in our opinion, loyalty programs that are obsolete and have now reached having to be transformed.
We have given examples of how loyalty programs are generally paid out cash, with generally equal conditions for all.

Then we introduced the topic of loyalty cards or rather paid loyalty programs and in this regard we made the most striking example which is that of Amazon which with its Amazon Prime already has 150,000,000 customers out of a total of about 2 billion (the 7.5% at the moment) that adheres to its loyalty program

Among all the loyalty programs we must differentiate between those who give a real “gift to rain” and those who instead carry out absolutely targeted incentive mechanisms.

Gifts are gifts as we have already said and, after the deadline, they are considered due, they are considered already included in the sale price while, all the value-added services, are generally paid and to better understand the topic it is good to give an example : Amazon, with its Prime, that is its "paid" loyalty system, has reached 150 million customers who pay an annual fee (I pay it like many of you who are reading) to have additional services compared to customers ordinary.

Previously, these additional services were represented by the sole possibility of receiving the products in advance with respect to the ordinary deliveries made to the generality of customers, today many other things are worth; you pay a little more but you have cable TV, a music library with 2 million songs, etc.

We could however give other examples…. We look at Alitalia differentiates its customers on the basis of multiple types of loyalty cards that are "loaded" with the miles that are traveled and incentives aimed at the type of registration that has been made, Trenitalia which also has more types of cards with different services and prizes, as well as programs such as the use of waiting rooms reserved at special prices for holders of certain types of cards, etc.

In this case, a mechanism is being introduced, not complex but in any case more articulated, of customer loyalty based on their relationship with the issuer of the loyalty card.

Let's now look at this table which compares the areas of overlap between free loyalty programs and paid loyalty programs:

This is the first demonstration of those 150 million Amazon Prime customers, they are all those customers who have some Trenitalia cards etc. etc.

However, as we can all see, the 64% of users interviewed in an absolutely representative sample, are a decidedly very important number, which one would not even imagine, but it is so.

There is a huge area of high-value opportunity within the entire world of consumers.

This is the demonstration that there is an absolute need to implement real loyalty programs that have important interaction systems for our customers on the basis of what the numbers, statistics, big data related to their behaviors they suggest.

What do we still have to wait to decide to really take the big leap?

All chapters of: Loyalty 2.0

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