Loyalty Systems THE LOYALTY CYCLE – TODAY check in JOIN
purchase item
SHARE OF SPEND TENURE ADVOCACY
Below is an example of the ‘Loyalty Cycle’ as used by Aimia to reflect the use of loyalty systems.
redeem points
Product review Social share Use of an offer
collect points
DATA
earn points
Price compare Web login Tweet mention
“The combination of sales and loyalty data can be used to optimise product ranges, pricing, new‐product development, even the locations for new store openings.” ‐ Laurence Stock, Director at Aimia
pricing, new‐product development, even the locations for new store openings.” Customer data is a very valuable tool, but it does have limitations; “It’s important to remember that Loyalty card data is, in actual fact, ‘past purchase data’. Stood alone, it can tell you what a customer bought and allows you to make some predictions in terms of future buying,” Sue Needs, Customer Champion for Empathica in the UK explains. “Its key limitation, however, is that it cannot tell you why the customer made their purchase decision, and if this
motivation is likely to influence their future buying behaviour.”
Understanding why customers make purchases is valuable knowledge, which is why Empathica couple loyalty data with customer experience data from feedback programmes. This goes some way to helping retailers understand why customers made decisions and whether they are likely to return. “Using this methodology to find areas where a retailer should focus and can improve the customer experience is a proven way of increasing brand loyalty, frequency of visit and in turn, a customer’s average spend” mentions Need. However, this analysis of soft data can have its drawbacks. “Focussing too closely on customer comments can drive retailers to work on the most frequently mentioned issues, rather than those which will have the biggest impact on customer experience and loyalty.” Getting to know customer spending habits can be a really beneficial step, and loyalty systems are a great way to encourage customers to keep coming back to spend money in store.
Customers are
rewarded with
incentives and the retailer is
rewarded with vital data. Executed correctly, it’s win‐win!
16 Loyalty for ZipCar 1
Contacts Transactis
T: +44 (0)800 073 0762
www.transactis.co.uk
The Logic Group T: +44 (0)1252 776700
www.the-logic-group.com
Aimia T: +44 (0)20 7152 4700
www.aimia.com
Empathica T: +44 (0)121 632 2240
www.empathica.com
www.a1retailmagazine.com
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