The current ones loyalty programs and what doesn't work

So we want to clarify what are the things wrong with the current loyalty systems?
We do some practical examples so we can understand better, but we apologize in advance for the examples we will use, both for not advertising, and because we do not want to do negative publicity.
All the brands, although they have different loyalty programs in general terms, are the same from some points of view and so we have chosen two extremely important ones such as COOP and ESSELUNGA.

Assuming that, when we talk about COOP, we must know that there are many local Cooperatives, which operate in one or more regions of Italy, all associated with a single purchasing center, as opposed to ESSELUNGA which is a stand-alone brand , although operating in multiple Italian regions.

In this case we have taken as an example COOP ALLEANZA 3.0 which from 1 February to 31 December 2019 (even if now passed), in all its supermarkets and hypermarkets in Veneto, Lombardy, Friuli, Marche and Abruzzo, offered its consumers, simply by shopping, the points that accumulated every time a certain consumer made purchases: with each purchase of the consumer "X", in one of the COOP stores, or ONLINE through EasyCoop, or in other member cooperatives, he acquired a point for each euro spent.

Furthermore, with partners, additional points could be accumulated to more easily reach the desired reward.

There was also the possibility of transferring points from one member card to another and, with each payment with a member card, one could get an extra point for every 2 accumulated for that single expense.

On the other hand, in the same period, we could go to the ESSELUNGA, register for the loyalty program to get 2 points for every euro spent over the threshold of 5 euro, with immediate release of the FIDATY point, personal, free, etc etc ... At this point let's say ... what are the real advantages that should lead me to choose one rather than the other competitor to go shopping?

Please note that we must ask ourselves this question based on the loyalty program alone.

Because we have already emphasized that the loyalty program is the central topic which should, in turn, give centrality to the individual (in this case the customer), and should ensure that, by stimulating him with this program, he will prefer the first or second sign.

And what is the answer?

The best gift? So whoever chooses a catalog of more “compelling” awards gets the best customer favor? Or will others buy anyway and, in addition, will they accrue gifts?

But from the programs we have seen of these two signs (and we repeat that generally it is so essentially for all), we do not grasp any real mechanism of interaction that triggers loyalty to this or that sign, or any mechanism that in any case leads the individual to the center of attention leading him in turn to prefer the former over the latter.

Very often we know that, in general, promotions are the ones that really move consumers (at least a substantial part), while loyalty programs, which are now “taken for granted”, are that little bit more that comes later.

So money paid out to this, rather than that customer, regardless of what they buy, how much they buy, how often, etc.

From here we quickly move on to another question.

What are the reasons (other than the parking, the convenience, the proximity, the average prices, the number of promotions that it makes available to its customers), or what is the real reason that should lead me to prefer the sign " A ”rather than the“ B ”sign?

If we look at the loyalty program, in our opinion, this is absolutely not the element that moves customers from "A" to "B", if not in an infinitesimal number.

At this point, we ask you a question instead ...

But do you prefer to participate in free or paid loyalty programs?

You will say… well! What a stupid question! Don't you want to tell me that to do the shopping I now have to buy a loyalty card?

The answer itself is very easy: the bulk of us are customers of Amazon and has subscribed to "Amazon Prime".

Amazon Prime is Amazon's loyalty system, which offers a whole series of special services at a low cost; so I am a subscriber to Amazon Prime, given that, at its inception, there was no Amazon Video, Amazon Music but only the express delivery service compared to the ordinary one.

However, my "paid loyalty" meant that I could have (and still can) a whole series of products in an extremely short time and without additional delivery costs compared to non-Prime members.

Today, Amazon Prime offers a whole series of other services, but in any case, it remains a loyalty system and this is a system of greater loyalty and interaction with its users because today they / we can see a significant number of films for free and cable series, we can listen to music etc.

However, we are not yet on "one to one" loyalty, we are not yet enhancing the centrality of the individual, we are not yet targeting every single customer, but we have taken a small step forward.

All chapters of: Loyalty 2.0

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