Close
 

Death before discounting: Aimia’s Simon Rowles on loyalty programmes

  • News
  • September 11, 2015
  • Sarah Dunn
Death before discounting: Aimia’s Simon Rowles on loyalty programmes

Rowles is the vice president Asia Pacific of Aimia, a global marketing and loyalty analytics company. Aimia works with a number of Kiwi retailers, including The Warehouse Group. In his talk, Rowles said the comic shop’s owner is running his loyalty programme wrong because as well as being allowed to hit him, customers can use it to get free comics.

Giving away rewards with a monetary value is a mistake, says Rowles. He says loyalty programmes should be about deepening the customer’s relationship with the brand, and offering financial rewards “debases” that relationship. He likened giving financial rewards to paying a colleague for a favour.

“The move we’re seeing is away from rewards and towards a personalised relationship.”

The popular coffee card system was singled out as “not smart” as, Rowles says, a customer who has purchased five coffees is likely to buy a sixth as well. He suggested replacing the free coffee with free rewards based on the customer’s preferences, such as making sure their favourite barista made their coffee each time.

Rowles also took aim at retailers who spam their customers online. He likened the experience to hearing a shouty ad on television. More than 70 percent of customers will unfollow a spammy retailer online, Rowles says; more than 60 percent will delete a spammy app; and a significant proportion will cease to do business with a retailer who demands too much of their attention.

Rowles shared a timeline showing the progression of loyalty programmes, reminding the crowd that each innovation built upon the last rather than replacing it:

  • 1890s: Stamps and books.
  • 1980s: Electronic points.
  • 2003: POS and payment cards.
  • 2013: Omnichannel engagement.
  • 2015 and beyond: Hyper-personalised, value-driven engagement.

He says customers now expect brand engagement to be hyper-personalised and values-driven, saying that these services are now in reach of every retailer.

Rowles says analysing the data gleaned from loyalty programmes allows retailers to become more efficient by concentrating on the small number of high-value customers who deliver the majority of sales. They can also cease to expend effort on the low-value customers who don’t contribute much.

“Basically, you can fire 53 percent of your customers and lose 10 percent of your turnover, you just have to know who they are.”

On this basis, Rowles concluded that the Chicago comic shop is doing loyalty wrong in the following ways: rewards with a monetary value are being given out; no data is being harvested from the loyalty programme, and the shop is using a third-party loyalty programme rather than owning this group of followers.

As for the punch in the stomach: “It’s probably not something anybody really wants.”

​ ​

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 

Direct sales: How multi-level marketing works

  • News
  • April 18, 2019
  • Sarah Dunn
Direct sales: How multi-level marketing works

The $200 million-plus direct sales economy contains many lessons retailers can use. As part of a wider look at this thriving corner of retail, we created a quick explainer showing how this business model typically works.

Read more
 
 

Direct sales: Meet the upliners

  • News
  • April 18, 2019
  • Sarah Dunn
Direct sales: Meet the upliners

We profiled different participants in the direct sales industry to find out what retailers can learn from them. Meet Isagenix distributors Adam Nesbitt and Bianca Bathurst.

Read more
 
 

Direct sales: Meet the business builder

  • News
  • April 18, 2019
  • Sarah Dunn
Direct sales: Meet the business builder

As part of a wider story looking at what retailers can learn from the direct sales industry, we profiled Isagenix distributor Ben Frost.

Read more
 

Social scoreboard

Zavy and The Register have worked together to create a scoreboard that compares how the top 25 traditional media advertising spenders in New Zealand have performed on social media over the past 30 days, updated in real time.

 
topics
Concept to closet
Business coverage of New Zealand Fashion Week.
Town centres
A positive retail environment over the past 12 ...
Amazon Arrival
Keeping up with all things Amazon as it ...
The Retail Yearbook 2017
As we battle our way through the busiest ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
The future is bright
We spoke with four retailers in their twenties ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
How to open a store
Sarah Dunn considers what it would take to ...
All things to all people
Kiwi retailers share their omnichannel strategies.
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
Sisterhood
Women in retail help one another. We spoke ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 
News

Leveling up: Exploring multi-level marketing in New Zealand

Is the $200 million-plus direct sales economy retail by another name or something different? Regardless, what can we learn from it?

 
 

A spectrum of retailers

  • Opinion
  • April 18, 2019
  • David Farrell
A spectrum of retailers

In recognition of April being Autism Awareness Month, retail commentator Dave Farrell considers the role of those on the spectrum in retail.

Read more
 

How on-trend is your retail business?

  • Sponsored Content
  • April 18, 2019
  • Sponsored content
How on-trend is your retail business?

New insights from Visa highlight five evolving trends emerging from savvy retailers around the world. We’ve taken these global trends and looked at how they are playing out with merchants in New Zealand, and we’d now like to hear what you think of them.

Read more
 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email anita.hayhoe@icg.co.nz or call 022 639 3004

View Media Kit

}