Find More Loyalty Customer
REWARD Programmes
The characteristics of a loyalty scheme tend to tend to be:
1.
Use of plastic card
2.
Accumulation and redemption of points
3.
Redemption can be in cash, discount, or items
There is a growing trend to switch away from a separate piece of
plastic to using mobile phones. This makes a lot of sense as mobile phone
numbers do not change frequently and the use of a person’s mobile makes
complete sense. In more advanced schemes SMS can be used to drive targeted
messages and promotions.
However where the majority of the typical retailer reward
programmes go wrong starts with the employees. When I visit a retailer with a
reward scheme I am asked if I have “XZY” card. I reply I don’t and the purchase
is put through the till – without any further effort to sell me on the
programme.
I also often do not see a dedicated member sign up area.
So what should happen?
1.
The person at the till has to be thoroughly trained in the
benefits of the programme and be taught how to sell it enthusiastically.
2.
When I answer that I do not have a card – they should switch
into selling mode.
3.
I accept that in a supermarket this may cause a delay to the
shoppers queue but then I could and should be referred to a sign-up point
nearby.
4.
There should be signage for the programme and application forms
available.
5.
The sign-up process should be simple and convenient.
6.
The benefits should be strong enough to make me want to sign up
because I want to start collecting the rewards.
If you believe in the rewards programme you have implemented –
it should be an essential part of your promotion and advertising.
One of the most documented and analyzed retailer reward
programmes is Tesco Clubcard. The programme is always mentioned in the Tesco
annual report as is the importance to Tesco of its customers. In essence they
have made it a “core” part of their customer offering to great effect.
Another major promotion that Tesco ran was computers for schools
– this was also a highly successful piece of Corporate Social Responsibility
(CSR). During the period of Computers for Schools and the launch of the
Clubcard, Tesco went from number three supermarket retailer in the UK, to
number one and is now a global player in it sector.
So we know well though through reward programmes work, but only
if there is complete connection between the company, the customer facing
employees and the customers.
If you have a good programme be prepared to shout about it –
don’t keep it a well-hidden secret.
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