The worth of any given loyalty programme is up to the retailer running it, says Truth Customer Academy. Customers are savvy, and they’ll sign up if the programme offers a good deal but will switch off unless the long-term value proposition is sufficiently attractive.
Chief executive Amanda Cromhout says: “Another reason behind changing customer demands has to do with the reality that there is a great difference between loyalty programmes and customer loyalty. Customers are no longer just excited by receiving points, they want to feel that your brand promises are offered in a way that shows customers that you truly value them across every aspect of your brand, not just your loyalty programme.”
True customer loyalty is achieved through long-term customer focus on all aspects of a retailer’s offering, which is achieved through effective engagement.
The point of offering a loyalty programme isn’t to incentivise customers with points or discounts, but to encourage them to share their data and information by offering attractive and relevant rewards, frequently. That data can then be combined with in-house data from inventory, POS and other aspects of the business to create an accurate picture of customer behaviour patterns and preferences.
Once this data is created and analysed, it can form the basis of much more than marketing. Insights from a loyalty programme which measures what, when, how and how often shoppers buy, bank and travel, and records their preferences can form the core of a customer-centric business strategy.
Truth Customer Academy stresses that this approach is completely opaque to competitors. Even if a competitor subscribes to the programme, they can’t see how the data is being used once it’s supplied.
New Zealand consumers are enthusiastic adopters of loyalty programmes, with Horizon Research showing the average Kiwi shopper belongs to 4.2 programmes. This is a 17 percent increase from January 2017, and a 35 percent increase since August 2016.
With the right loyalty programme, you can make your programme the sole focus of your customers and reap the rewards.
Truth is offering a six-week online course to help retailers refine their loyalty programmes. It covers:
1. The evolution of loyalty
2. Strategic rationale for loyalty
3. Global loyalty trends and best practice
4. Framework to design a loyalty programme
5. Understand the importance of acquiring customer data and how to use it to drive strategic insights
6. Key commercial inputs for your loyalty business case
7. How to write a customer-led engagement plan
The format of the course is all online and remote whereby learners log in and access course materials on a weekly basis. Modules consist of online content including theory, practical examples, videos, podcasts, case studies, templates and other downloads.
Further loyalty insights will be available on October 30, when the Truth Customer Academy and BrandMapp Loyalty Whitepaper 2018/19 will be launched. Those who would like to obtain a copy, or book a spot on the six-week online course before enrolments close on Wednesday October 17, should email Debra.
The next Truth Customer Academy course is on the 7th February 2019.