From Wikipedia: the loyalty card it is a fundamental tool for the realization of relational marketing projects. They represent the symbol of recognition and identification for consumers who participate in a loyalty program.
Because a loyalty program can take shape, behind each fidelity card there is a robust software that aims to collect data relating to purchases made by customers, keep them and extrapolate them when needed.
Are you still convinced that the best loyalty card APP alone is enough?
Much more simply, a shopkeeper issues loyalty cards to make their customers loyal through a program that, in most cases, provides a gift at the end of the promotional period based on a previously validated catalog of rewards.
Normally these promotional periods last one year but sometimes some distributors allow the collection over 2 years or the transfer of points to partners etc.
All mechanisms to try to “wake up from torpor” a tool that is now obsolete and that the only real added value today is that of tracking and storing customer purchases, something that is almost never used by many.
Periodically Nielsen, one of the largest operators in the world in the collection of consumer data, develops a scenario that it calls the “Global Survey”, within which it describes the behavior of consumers from many points of view.
Taking the one related to loyalty cards, we see how the 74% of consumers adheres to loyalty programs (loyalty programs) while the EU and the rest of the world average is 66%.
Within this 74%, however, we find a nice 44% that participates in a number of loyalty programs from 2 to 5, and in the 17% of cases even more than 6 loyalty programs at the same time.
Another important fact is that consumers' 62% declares that all things being equal they prefer to buy where there is an activated loyalty program.
You can read here all the article appeared on Repubblica.
Without wishing to analyze many other data which, in some cases could even become too many, let's focus on the 2 macro elements (in turn made up of 2 elements each) that must make us reflect:
The conclusion is that, while 74 out of 100 consumers use loyalty cards, 61 of them participate in multiple programs at the same time.
The loyalty of the infidelity is served.
Yes, because we have been striving for years to make people understand that a card and an “X” of free points against a “Y” of expense cannot be enough to build customer loyalty… because practically everyone does this.
Wait! I have just counted the fidelity cards in my electronic wallet (the wonderful STOCARD) and you want to know how many programs I am active in?
34… Yes, you got it right: 34; thirty four.
We keep asking the same question: is this loyalty model still needed or is it better to surpass it to get to something more interesting?
In our post oncurrent loyalty programs and what's not working, we have made some examples significant enough to make it clear that the problem is not the loyalty card but the program associated with it.
In the post we describe 2 parallel activities on two very large supermarket chains and in particular:
In this case we have taken for example:
From 1 February to 31 December 2019 (even if they have now passed), in all its supermarkets and hypermarkets in the Veneto, Lombardy, Friuli, Marche and Abruzzo, it offered its consumers, simply by shopping, the points that they they 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 accrued a point for every 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.
Register for the loyalty program to get 2 points for every euro spent over the 5 euro threshold, with immediate release of the FIDATY point, personal, free, etc ... At this point we say ... what are the real advantages that should lead me to choose one rather than the other competitor to go shopping?
The first that carries out a classic collection both on its network and on that of its partner while the second that, always every "X" of expenditure delivers gifts, coupons, chances of winning etc.
Also in these two cases we speak of passive programs; what does it mean?
This is not the way to make a customer loyal but the opposite.
Let's go back for a moment to the numbers we talked about before and to the contradictions that suggest the way to go.
74 out of 100 consumers use the fidelity card but 61 of these participate in multiple programs.
I even reach 34 (albeit in more sectors)
It means that each of those 61 out of 100 chooses where it suits them most to make purchases (or at least where they perceive it as convenient), and then uses the loyalty card at the time of payment.
It being understood that the data of the purchases are precious for everyone (even if partial), until now nobody has thought of an innovative solution.
But before we get there, let's focus on customer engagement.
Why should I only shop from a certain chain if I then find better offers, on the same products even if at different times, even from others?
Above all, why should I prefer this or that restaurant if it does not involve me, it does not make me feel important, it does not need to know what I think, it does not make me participate in the changes, it does not offer me CUSTOMIZED OFFERS ONLY FOR ME.
This is why our team has been working hard since 2015, and now we have arrived at the launch of our products!
Each business mainly has 3 aims to ask with its customers:
Sales will always be a consequence!
Allow your customers to buy easily, to be able to easily decide up to the last second, as if they were physically in your store.
Exchange info with them even during the purchase, advising them, making them change product, in short, making them feel "pampered" and that they do not feel the difference compared to coming to the store.
Allow them to give you the appreciation or not of the services you give, so that they can make you improve what they deem unsuitable (preparations, products, deliveries, hygiene ...)
Always inform them promptly and daily of your news, of the offers you can make available to them, of the deals you can make them do.
Let them know at any moment that their purchase is in preparation, ready or shipped.
Allow them to come and pick up their ordered products from your store or one of your stores.
Offer them an extremely efficient after-sales service that solves all the problems that may arise or the assistance they need.
Enhance your news with video, audio and images to give them value and explain to the maximum all the benefits they can derive from this or other product.
Ask them in-depth information on various topics in order to improve the proposals you are going to make to each of them.
CUSTOMIZE the discount proposals, making each customer feel at the center of your attention.
This is the perfect loyalty program.
But you don't have to do it feeling a burden, but with the joy of giving them value and affirming your entrepreneurial skills by demonstrating that, in your market niche, you are a true authority!
Now that you should have understood how to judge the best loyalty card app, discover all the functions that eCommerceVolution® offers you