Customer loyalty program bonus cards example. Professional cosmetics MAC

A competent loyalty program is not only a tool for retaining customers and ensuring repeat sales, it is a strategically important development that will significantly increase the profitability of an enterprise without capital investments.

 

Before we begin to describe the opportunities that the introduction of loyalty systems opens up for enterprises, it is worth mentioning that in terms of their purpose they are the same, but in terms of the degree of implementation there are a whole host of options. In this article we will consider two main types of events: those aimed at external consumers and internal programs for employees.

In most of its actual implementations, the loyalty system is perceived by managers as a system of actions to retain customers. But in the practice of even small successful companies there are internal programs, the purpose of which is to increase the commitment of employees and convert them into:

  1. a more efficient and productive workforce;
  2. company clients.

Loyalty programs for consumers

The purpose of such developments is to retain client interest, create additional communication, and ensure secondary sales. The opportunity that marketers and company executives primarily see in such systems is an invaluable database of consumer data that allows them to anticipate needs and expectations. Constant analysis of its own discount club and receiving feedback from its target audience allows the company to know about the qualities, capabilities, and habits of customers, which, in turn, makes it possible to quickly and efficiently manage the sale of the product.

Consumers, as a rule, are asked to fill out a certain questionnaire/card/form to receive certain benefits. This identifier is the key for participation in the PL on the consumer’s side. This mandatory condition gives the specialist a colorful and clear portrait of the target audience.

Opportunity for DP No. 1 to obtain information about clients

Obtaining the widest possible range of information about your actual and potential clients for the purpose of its further use for marketing purposes.

Let's give an example. When opening a clothing store, at the preparatory stage it is worth planning the production of plastic cards and creating software for working with the client base. From the very first days of the store’s operation, you can issue cards in exchange for a completed detailed questionnaire (10-15 questions are acceptable), receiving information about customers that is invaluable from a marketing point of view - age, occupation, purchasing motives, favorite styles, colors, models, clothing style etc.

Over time, by analyzing sales and dividing customers into target segments, you can identify the most loyal and promising group and build work based on their needs. Let's say, the maximum volume of purchases is made by young girls who prefer casual and their usual shopping time is the afternoon.

With such information, the store owner can navigate purchasing O a larger share of clothing in the specified style, bring out young and dynamic sellers during this time, roll out additional shelves with ultra-modern or auction goods in a small size grid (focusing on the target segment).

PL opportunity No. 2 - direct communication with the client

Direct communication with the client, based on his preferences and the characteristics of the company’s business.

Eg, customers may not have time to track his movements around the city, but targeted targeted SMS notifications will ensure additional sales through purchases of those customers who were previously informed. Moreover, sales analysis can make this notification more individualized, offering the client what he likes: “Maria, your beloved Philadelphia with salmon will be waiting for you today near Treneva Park.”

Other possibilities

There are, however, “blind” loyalty promotions based on providing all or some consumers with certain bonuses in a wide variety of forms (a glass of beer with a dish), the use of which conditionally reduces the cost of the product being purchased again. The purpose of this step is to make a specific product or personal name attractive to the client in order to increase the check or repeat sales. But such systems do not have any additional capabilities, which is very short-sighted.

Briefly, I would like to list the opportunities that a full client base provides, and which ultimately leads to increased profits:

  • notification about the activities of the enterprise, events;
  • segmented offers;
  • price variation (providing different discounts/prices);
  • protection against dumping from competitors
  • understanding the values ​​of the target audience for further development planning;

Loyalty programs for staff

If the above examples of LPs are focused on increasing the efficiency of two-way communication between a company and its client, then loyalty programs for staff have a completely different focus - increasing work efficiency due to the internal loyalty of employees to the employer, product, and activity.

As you know, if the work is done with soul, its price is higher and the quality is better. In order for employees to love their work and, importantly, to become clients and consumers of their own company’s products, the staff is provided with a certain system of benefits that motivates them to increase productivity. This could be selling clothes to sellers at cost, increasing the rate based on length of service, creating a family-type team, and many others.

The system can be tangible, intangible or complex, implying constant professional and personal growth of both the employee and his remuneration system in particular, as well as the staff and, ultimately, the company as a whole.

Capabilities of internal programs

  • increasing the competitiveness of the enterprise;
  • reduction of staff turnover;
  • commitment to your product and converting employees into customers;
  • creating teamwork;
  • reduction of personnel costs

It is worth noting here that such a loyalty program can only be considered after the period of business formation and confidence in the final product.

In today's competitive environment, it is becoming increasingly difficult to acquire and retain clients. Sometimes a business spends tens of times more when attracting a new client than when selling a service or product to an existing one. But, after all, existing clients (loyal) spend 50-70% more than those new ones who were recently attracted. What to do to ensure that clients return to you? If you are ideologically like the majority of marketers, then you have probably already managed to implement a loyalty system.

But does it work that well? Thanks to a survey conducted in 2011 by Colloquy, a third of the miles and bonus points that were issued to customers as a result of the loyalty system were not claimed. It turns out that companies lost money and time to attract customers who never received that added value despite their “loyalty.”

How can you influence this segment of a third of customers and add real value to the loyalty program so that customers return to you? I won't torment you. Here are some ideas you can use to improve your current or develop a new loyalty program that will help your business.

Use a simple point system

This is the most common methodology for loyalty programs. Frequent customers earn points, which are then converted into all kinds of gifts. This could be a service upgrade, a small gift, a discount, a baseball cap, or something else that your client is focused on and collects his points for. It’s quite strange why many companies fail in this component and cannot properly explain to their client exactly how and how many points he gains and what he can then spend them on. I believe that for some loyalty programs you can introduce separate calculators (which, by the way, many companies not named in the article are already doing) to calculate your benefits. Descriptions like: “You will receive 3 points for every hundred rubles spent, and after spending 2000 rubles you will receive a 30% discount next month!” I don’t even want to read, much less think about how best to spend it in order to extract this benefit... if you please. This is not a loyalty system, much less it is not a reward, it is a headache. If you are planning to use points in your loyalty system, think about how your request will be perceived - it should be simple and intuitive, like the program itself!

As an option for a simple system, tie points to rubles (hryvnia, dollars, euros...) after calculating in advance the benefits for the client and the return on investment for the company. Then tie the gifts to a certain amount and your client will always know that for the conventionally spent 1000 rubles, he will receive a (certain) service (or product) for free. Or, let’s say, for every “thousand” he will receive a gift worth one hundred rubles. And one more thing - don’t be shy to speak with the consumer in his own language, leave the marketing jargon in your office, and it’s even better if you get rid of it and start speaking and thinking like your consumer.

Although this type of loyalty system is the most common, it may not be applicable to every type of business - it is rather more suitable for companies that want frequent, small purchases from customers. For example, you can hardly sell cars like that.

Enter a grading system

Finding a balance between achievable and desired rewards is a major issue for many companies when developing loyalty programs. One way to overcome this problem is a level system. Offer small rewards to start with as a base for those who have just become part of the program and motivate them to take repeated action (purchase) by increasing the reward as the customer moves up the ladder of your loyalty program. This will also help solve problems with members forgetting about their points and never using them due to the wait time between purchase and reward.

For example, take Virgin Airlines. Virgin's loyalty system accepts members of its program into the Red tier, then moves them up to Silver and eventually Gold as they progress. Thus, at the red level, clients have access to a discount on car rentals and hotel bookings, and they also earn miles. At the Silver level, they earn 50% more points on flights and related expenses. Gold members earn double miles, priority boarding, and access to exclusive amenities like a massage or a pre-flight glass of beer. The key of the program is that all these “delights” are necessarily presented to the client at the moment of initial contact in order to make him think about coming back again. When the client realizes that “gold” status is achievable along with all its benefits, he usually returns.

The difference between the points and the level system is quite obvious. In the first case, they derive short-term benefits, while in the second, more strategic and long-term benefits. As a rule, a loyalty system with a level system is used in highly profitable businesses with expensive services such as airlines, hotels or insurance companies.

Set the entrance fee for the VIP service

What's wrong with that? Loyalty programs are designed, at their core, to break the barrier between the client and the company. In many cases, a one-time payment (an annual subscription) that allows customers to overcome a common barrier is quite a big advantage for both the company and the customer. Having identified the factors that can make a client leave you, you can develop a loyalty program based on a one-time payment for the “capricious” of this world and allow them to overcome the barrier that prevents them from taking advantage of all the delights of the program.

In 2011, the percentage of people abandoning their cart during e-shopping exceeded a record 70% and this figure is still rising. This is largely due to the shock buyers feel when they see the price after shipping and taxes are added. Amazon has found its way to solve this problem, and it is through its loyalty program called Prime. For $79 annually, in addition to all the other benefits of this program, participants have the opportunity to receive any item from millions within two days. And it doesn’t matter how much you paid for this product!

This program is truly innovative. Analysts estimate that Amazon annually loses about $11 per Prime user, but earns quite a lot on the high frequency of transactions that would not have taken place without this program and its remarkable capabilities.

This system is good for businesses that require frequent and repeat purchases. In just a minute, with a one-time payment, your clients gain access to the entire richness of the program. It can also be well suited in the B2B sector for companies that deal, for example, with delivery.

Create a non-monetary program around the client's values

If you think you know your client well, consider whether you really know his value system and sense of benefit. After all, depending on the industry, your client may find more value in non-monetary or discounted rewards. Every company can offer coupons and discount codes, but not every company can offer something different, not subject to the ruble and at the same time uniting with the audience.

Such programs may concern the environment, animal welfare, clean streets - in short, everything that can be called corporate social responsibility. Therefore, before launching your loyalty program, make sure to research your client and create a portrait of the consumer with whom you can then work.

Join a coalition

Strategic partnerships for a loyalty program, also known as a “coalition” program, can be quite effective in customer retention and company growth. In this case, as above (point 4), you need to know the psychology of your client. Knowing the portrait of the consumer, you can understand what exactly he consumes in addition to your products, what services he uses, and make a truly attractive offer.

American Express has an extensive partner base around the world. Their recent Twitter campaign rewarded members who tweeted about them. Companies such as Whole Foods, Staples, and Zappos participated in the program. According to Visibli, Amex cardholders have received over $2,000,000 in rewards.

What kind of coalitions can you create personally? If you are producing food for dogs, it would be a good idea to think about cooperation with a veterinary clinic or an animal (dog) grooming center. The target audience obviously loves and owns a dog, or maybe more than one. Moreover, it is likely that they know other dog owners. In this case, you can create an excellent loyalty package that goes beyond the usual scope of promotions and discounts offered by your company, and also expands your network due to the fact that you also gain access to your partner’s clients.

Make a game out of it

Who doesn't love to play, right? By turning your loyalty program into a game, you will encourage customers to return after their first purchase and, depending on the type of game, strengthen your brand image.

Entertain the audience, but if you make gifts available during the game, do not forget that the chances of winning should be at least 25%, and even more so you should not set “unrealistic” barriers! A well-thought-out and implemented program can bring success to almost any type of business. This approach will make the buying process more interesting and attractive.

Abandon the program completely...

Just think how many marketers offer loyalty programs? How many of them have already been launched? We're not talking about efficiency, no, we're talking about how clouded the buyer's mind is. Build loyalty by offering exceptional benefits to first-time customers or first-time customers. Take their hearts hostage, and then continue to offer these benefits with every purchase.

The concept sounds simple enough, but one of the most innovative companies on the planet is taking full advantage of the program. This is Apple. Even Apple's most loyal customers don't get special discounts or discounts... because they don't. nobody! Has the number of fans decreased due to this? Judge for yourself. We can only say that in the case of Apple, customer loyalty awakens quite naturally.

This minimalistic approach works best for companies whose products or services are unique or different from others. It's not about price, quality or convenience - it's about redefining the category. You can call it whatever you like - creating a new market, the “Blue Ocean” strategy when an old product is introduced to a new market, or a new product is introduced to a new market, when the company acts as a pioneer in the industry and receives recognition from society, because the product is really needed, a loyalty program may not be necessary.

How to measure the effectiveness of implementing a loyalty system?

Yes, as you already understood (and most likely you already knew) after introducing a loyalty system, there is a need to measure the results of its work. Otherwise, how can you evaluate effectiveness? There are several methods for measuring the effectiveness of a loyalty program and they have nothing to do with what “a friend said” or “a neighbor was happy.” There are many ways to measure, and in fact, each program is unique and the measurement should be “adapted” to its definition. But here are a few of the most common ones:

Customer Retention Rate (CRR): This metric is a measure of how long customers stay with you. If a loyalty program is successful, this number should increase over time and as the number of program members increases. To measure, you can perform A/B testing on those who are not program participants and those who are, thus finding out the overall effectiveness of the initiative. According to Fred Reschelda, author of The Loyalty Effect, a 5% increase in customer retention can result in a 25-100% increase in profits for a company.

Negative Churn: Churn is the rate at which customers leave your company; Negative churn is therefore a measurement of customers who do the opposite - upgrade or purchase an additional service. They help offset the natural churn that occurs in most companies. Depending on the nature of your business and loyalty program, especially if you choose a complex multi-level loyalty program, this is an important metric to track.

Net Promoter Score: NPS is customer satisfaction and is scored on a scale of 1-10. The scale is in its own way the degree to which a person will recommend your company to others.

NPS is calculated by subtracting the percentage of detractors (customers who would not recommend your product) from the percentage of promoters (customers who would recommend you). The fewer ill-wishers, the better. Improving NPS is one way to establish criteria for measuring customer loyalty and, over time, calculating the effectiveness of your loyalty program. A good NPS level is considered to be over 70% – and a loyalty program can help you achieve this!

Customer Effort Score (CES): CES measures how much effort it took to resolve a problem with a company. Some firms prefer this metric over NPS because it measures actual customer experience rather than emotional satisfaction. A Harvard Business Review study found that 48% of customers who had a negative experience with a company told 10 or more people about it. Thus, customer service influences both the acquisition of new customers and the retention of customers.

You will learn:

  • The essence of a loyalty program using the example of a dialogue with a buyer.
  • Popular types of customer loyalty programs.
  • Development and implementation of a loyalty program in stages.
  • What to pay attention to when creating the conditions for a loyalty program.
  • 6 ways to evaluate the effectiveness of a company's loyalty program.
  • Examples of unusual loyalty programs from around the world.

Marketers know well that it is much more profitable to retain an existing client than to attract a new one. The difference in costs for these actions can be up to 10 times! In addition, statistics confirm that a regular customer spends 67% more than a new customer. Therefore, all efforts should be aimed specifically at retaining customers and stimulating repeat sales. To this end, the overwhelming number of companies are introducing loyalty programs into their activities, but few people know what is really important to consumers.

Expert opinion

The essence of a loyalty program using the example of a dialogue with a buyer

Egor Chemyakin,

Both managers and marketing department employees are constantly thinking about how exactly to prevent their client from becoming a buyer of another company. The most common solution that comes to their mind is the use of discounts. Moreover, according to many, their regularity and significant size is the only way to retain a client. At the same time, the losses that accompany an incompletely thought-out discount policy are often not taken into account. As a result, such a system can hardly be considered effective and, most importantly, beneficial for the company.

As an example, let’s look at a model of interaction between a seller and a buyer, when the client expects to receive a discount and makes it clear that otherwise he will turn to another supplier of goods or services.

Bad option:

What discount will I receive?
- There are no discounts on this product.
- In that case, I will place an order from your competitors!
- Okay, I can arrange a 5% discount for you personally, but that’s between us.

A good option:

Can I count on a discount?
- Of course, if the purchase amount exceeds 10 thousand rubles, your discount will be 5%.
- Great, these conditions suit me.

The best option:

Will there be a discount?
- Yes, sure. Moreover, your personal discount will grow along with the number of your purchases. If you purchase goods worth 10 thousand rubles, you will receive a 5% discount, and if the purchase amount exceeds 20 thousand rubles, the discount will be 10%.
- That is, if the price of this coat is 22 thousand rubles, I will pay 19,800?
- Yes, that's right.

These dialogues fully reflect the essence of the customer loyalty program, which is widely used by small businesses throughout Russia. If you want to be radically different from your competitors, it's time to think about how to do it.

The loyalty program includes a whole range of activities, each of which is aimed at retaining existing customers and creating long-term mutually beneficial relationships between customers and the company.

The goal that the seller seeks to achieve using loyalty programs is repeat sales. Such programs are invariably included in the marketing strategy of organizations and are aimed at increasing profits, increasing sales volumes, retaining old and attracting new consumers. The effectiveness of a set of measures is measured using indicators such as:

  • acquiring new customers;
  • growth in revenue from repeat sales;
  • increase in the frequency of purchases (increase in the number of receipts);
  • expanding the list of goods purchased by one consumer (diversification of purchases);
  • reducing customer churn;
  • shift of buyers' interests towards more expensive goods.

So if you haven’t yet thought about implementing a customer loyalty program, now is the time to start using this powerful tool to take your business to a new stage of development.

  • Restaurant loyalty program: practical recommendations from an practitioner

8 Popular Types of Customer Loyalty Programs

Discount loyalty program

Of course, the most common way to retain and attract customers, not only in Russia, but throughout the world, is to provide discounts. They can be either one-time or cumulative. The client receives a discount card, the presentation of which with each subsequent purchase entitles him to a certain discount - either a fixed amount or increasing over time.

The essence of a cumulative discount is that by crossing a certain threshold set by the company, the consumer has the opportunity to save even more, that is, the size of his discount grows along with his loyalty. Some companies even “punish” customers who visit the store irregularly by lowering the discount percentage and returning it only for the next purchase.

The advantages of such a system:

  1. Everyone loves discounts, especially Russians in the context of a protracted economic crisis and declining purchasing power.
  2. This type of loyalty program is simple in terms of organization and control of its implementation.

Disadvantages of the system:

  1. Every buyer has discount cards from two or three competing companies in his wallet, and the size of the discount he can count on is usually the same. Therefore, it is a stretch to think that this tool actually works.
  2. The client is interested in regular purchases only until his discount reaches the maximum value.
  3. Any discount means a decrease in the company’s net profit.

This can be easily verified with a simple example. Imagine that the price of one of your products is 9,000 rubles. The markup you made is 30%. By selling it under the loyalty program with a 5% discount, you lose 450 rubles. At first glance, compared to the sale amount, this is a small part of it. But it's not that simple.

Each product or service has a cost that you cannot change. The discount you give the buyer is deducted from the profit you would have made. Let's say in this example it is 2,700 rubles. After deducting the discount, you will be left with only 2,250 rubles.

Thus, by conceding 5% of the retail price to the buyer, you yourself lose 17.5%. As you can see, not so little. It's good if you can afford a markup of 100-200%. What if we increase the discount?

Remember this point, we will return to it a little later. In the meantime, let’s look at what loyalty programs exist for customers, in addition to the discount one.

Bonus loyalty program

There are no discounts in this type of customer retention; they are replaced by bonuses. The fundamental difference is that, having left a certain amount designated by the company at the store’s cash register, the consumer receives a certain number of bonuses, which can either be used as partial payment for the next purchase (for example, up to 20% of the cost), or be exchanged for goods worth the number of bonuses. Different companies use bonuses in the form of points, stickers, rubles or internal currency that circulates within the same retail chain.

The advantages of such a system:

  1. A bonus loyalty program is effective where it is possible to make regular purchases.
  2. A client can become the owner of a decent number of bonuses if he purchases constantly and for impressive amounts.
  3. As a mandatory condition, the company can put forward a requirement for a certain period of validity of bonuses, after which they expire, which will push consumers to an unplanned purchase.
  4. Having received bonuses, not all customers will use them, therefore, the company does not lose anything, and the product is ultimately sold at full price.

Disadvantages of such a system:

  1. When it comes to a very expensive, and therefore rare or one-time purchase, there is no point in introducing a bonus loyalty program. The client is unlikely to return to you again, despite the benefits offered to him.
  2. If the rules for accumulating and using bonuses are too complex, consumers simply will not understand them, and as a result, the loyalty program will not fulfill its intended function.
  3. Bonuses are a more complex option than discounts. To control the correctness of their accrual and use, as well as compliance with expiration dates, a special program will be required.

There are two ways to quickly increase the profit of any company - raise prices for goods or services or replace the discount loyalty system with a bonus one.

Let's return to our example about a 5% discount for a product worth 9,000 rubles. Let's see how it works for bonuses. The client made a purchase for which he was awarded bonus points in the amount of 5% of the cost of the product. He can spend them when he makes the next one.

  • 1st purchase – 9000 rubles.
  • 2nd purchase – 9000 rubles.

Bonus from the first purchase (located on his card) - 5%, or 450 rubles.

Thus, 2700 (your net profit on the first sale) + 2700 (second sale) - 450 (written off bonuses on the first purchase) = 4950 (your net profit minus the discount).

Thus, with a bonus loyalty program, the discount on profit was 8.5% versus 17.5% in the first case.

Of course, you could argue that the customer gets another 5% on their next purchase, which again adds up to 17.5%. However, practice shows that not everyone will return for the next product, and some will come when the validity period of the accrued bonuses has already expired. And only after completing the next transaction, the buyer will receive bonuses for the next purchase.

It is quite possible that you will have a question: will you lose all your customers by replacing discounts with bonuses? You shouldn't be afraid of this. Probably, some share will refuse your services, but in return you will receive an increase in profits.

So you have nothing to fear. The small number of customers who leave you because of a change in loyalty program would never become your loyal customers. There are always people who are constantly looking for the best deals and therefore do not fall into the group of core consumers for any company.

However, let’s make a reservation that, of course, the choice of a loyalty program must be approached taking into account many different factors. There is no one universal recipe that is suitable for absolutely all types of business.

And one more piece of advice. You shouldn’t ask clients what suits them better – bonuses or discounts. The answer is already clear - a discount. The benefit that can be obtained here and now is always better than that which will be in the distant future. Therefore, choose a loyalty program based on the interests of your company.

Multi-tier loyalty programs

This customer retention system is simple in essence, but quite difficult to implement. It is based on a direct relationship between how much a client spends on paying for goods and services in your company, and the privileges that he receives as a result. These include additional services such as delivery or a longer warranty. By demonstrating loyalty to your company, the consumer provides himself with higher status. This system works effectively in the banking and insurance industries, and is also a favorite airline loyalty program.

Pros of the system:

  1. The driver of this loyalty program is ambition, the desire to occupy a more advantageous position compared to ordinary customers, so a person is willing to spend more and more.
  2. In demand in areas where there are VIP and Double-VIP segment clients.

Disadvantages of such a system:

  1. It only makes sense to implement this program for high-value goods and services.
  2. Bonuses must be very significant.
  3. Since the system requires an individual approach, difficulties may arise during its implementation. Naturally, this cannot be done without a computer program specially written for these purposes.

Paid loyalty program

In this case, the client simply buys the right to receive any bonuses and privileges. Usually this looks like a fixed subscription fee, for which access to additional features, limited resources, and special conditions of service is provided.

The advantages of such a system:

  1. Easy to organize.
  2. Ideal for regularly purchased goods and services.
  3. Customers willingly pay for access to such a loyalty program, but do not always actively use it (that is, the company receives money, but does not give anything in return).
  4. You can calculate the cost of bonuses in order to best serve your interests.

Disadvantages of the system:

  1. If customers perceive the benefit of a paid subscription to be less than the price they have to pay, the model is doomed to fail.

It should be recognized that this is the most effective loyalty program for individuals, since it allows customers to receive tangible benefits compared to customers who do not participate in it. But to bring it to life, you must reach a certain level of development in your segment. As an example, let’s take large retail chains – “Okay” and “Lenta”. The cards they offer their customers to purchase are inexpensive, but the difference in the price of some products for cardholders and those who do not have them can be very significant.

Loyalty programs with non-material rewards

Once you understand what your customers truly value, building a long-term motivation model is easy.

Almost any company can implement a loyalty program based on discounts or prizes, but the one that can offer its consumers privileges that cannot be measured in money will move to the next level of relations with customers.

The coup was invented by marketers from the Patagonia brand, which offers outdoor clothing. Outdoor gear often needs repairs. This is exactly the service that was offered to customers instead of points and discounts. The concept is called “The Stories We Wear” and connects extreme sports enthusiasts with clothing from this brand on an emotional level.

Affiliate loyalty program

As in the previous case, we are talking about the need to find out the needs of your customers that are not included in those satisfied by your company, but are no less important to them. Your task is to find partners for whom your consumers are also clients.

Loyalty programs based on strategic partnerships can provide the conditions for rapid business development and customer base growth. They serve as an indicator to customers that you understand their needs well and are doing everything you can to help them.

An example of advanced affiliate marketing is American Express. The company cooperates with Macy's, AT&T, Rite Aid, Enterprise Rent-A-Car and Hulu. By participating in the loyalty program, customers receive points that can later be used to pay for the services of a partner company. By renting a car from Enterprise and earning a certain number of bonuses, the buyer can use it to pay for AT&T communications services.

Loyalty programs with gamification elements

Using gaming mechanisms in a loyalty program allows you to interest customers and achieve significant results.

The first thing that comes to mind in this case is holding various competitions. This technique certainly has its place, but the programs must be very carefully designed so that customers take them with the proper level of seriousness and enjoy participating in a show that brings variety to the daily shopping routine.

To achieve this, it is important to offer consumers benefits that are actually in demand and at the same time realistically achievable. The conditions of competitions must be worked out to the smallest detail - this will minimize the interest of prize hunters. The launch of a new gaming program must be preceded by detailed information to all departments, so as not to create a situation where customers know more about the ongoing promotion than store employees.

An example of a company that successfully uses the element of a game as a loyalty program is GrubHub. Since 2011, the food delivery brand has been giving customers the opportunity to win a dessert or drink during their order, with one in four customers having a real chance to do so.

Natural loyalty programs

Since loyalty programs are so widespread today, coming up with a new way to retain customers is not an easy task. However, the lack of a system for attracting and retaining customers can also be considered an innovative approach.

It can be afforded by those companies whose product or service is unique. Moreover, the point is not in the high price category or undeniable quality, but rather in the direction of the industry as a whole. In this case, there is no need to reward customers with loyalty programs, because they receive a product that has no equal.

Let's take Apple. Having millions of loyal fans of its products, it does not consider it necessary to give prizes or discounts to anyone. The main priority of this brand is a unique product that best meets customer expectations. This is the kind of loyalty program that is considered natural.

Examples of loyalty programs

"Family Team" (Rosneft)

Anyone who purchases a bonus card can become a participant in the loyalty program for gas stations that are part of the Rosneft concern. Its cost may vary slightly in different regions, but the maximum is 250 rubles.

Bonuses are credited as follows:

  • for the purchase of petroleum products - 1 bonus for every 10 rubles;
  • for the purchase of related products and services - 3 bonuses for every 10 rubles.

Having accumulated a certain number of bonuses, you can exchange them for products with the company’s symbols (T-shirts, baseball caps, bags and similar products). You can also purchase fuel with bonuses.

The biggest prize of this loyalty program is Formula 20 – 20 liters of any fuel. It can be obtained by those clients whose bonus account has accumulated 3999 points. This can be achieved:

  1. When buying fuel: you need to spend 39,990 rubles. As a result, the loyalty program card will return 1.7% of the total value of their purchases to the member.
  2. When purchasing related products and services in the company’s mini-markets: you need to spend 13,330 rubles to receive a bonus 20 liters of fuel. In this case, the refund will be 5.1% of the purchase price.

Thus, by participating in the Rosneft gas station loyalty program, customers have the opportunity to return from 1.7 to 5.1% of the purchase amount in the form of bonuses.

Other examples of loyalty programs see the article in “General Director” magazine.

Development of a loyalty program in stages

Stage 1. Analysis and division into segments of the customer base (for wholesale companies) or target audience (for retail). This stage involves making adjustments to the standard loyalty ladder depending on the specifics of your company’s business processes. It is necessary to check the client database for relevance. Among those consumers with whom there is no interaction for more than two purchase cycles, it is worth distinguishing those who are lost (who switched to competitors) and those who closed.

Stage 2. Distribution of customers by loyalty levels, finding out their needs and expectations from interaction with your company at each level. Identifying consumer concerns at each step of the loyalty ladder.

Stage 3. Monitoring the actions of competitors. What are the offers that customers receive from other companies at each stage of interaction? Identifying the strengths of your organization and competitors. The purpose of this stage is to find out how stable your position in the market is, due to what advantages competitors will be able to lure away your customers, and, conversely, what will allow you to get other people’s customers.

Stage 4. Development of a plan for interaction with each customer segment. At this stage, loyalty programs are created for a specific group of consumers, taking into account the forms of incentives that work in your market and are typical for your type of product or service. To return lost customers identified during the database audit, a separate action plan is being developed. Special forms of incentives are introduced for the most attractive clients.

What to pay attention to when creating the terms of a loyalty program

To launch a loyalty program that will be truly successful, company management must have a good understanding of what customers really need, and what conditions will make them remain loyal to your brand, and not seek benefits from competitors.

What does that require?

Put yourself in your client's shoes. Let's say you run a company that does wholesale trade. What is more important for your client - to accumulate bonuses in order to eventually receive some special conditions of service in return, or is it more important for him to buy at a discount in order to be able to sell at retail with a greater profit? Put yourself in the shoes of your customers and the answer will come naturally.

Analyze your competitors and act completely differently. For example, competitors apply progressive discounts. This means that, in contrast to them, you should choose a bonus program, and prepare very good prizes that will attract customers.

Take your competitors’ loyalty program as a basis, but make your own improvements to it. However, you should first make sure of its effectiveness by analyzing the state of affairs of your opponents. It is quite possible that it does not bring the desired result, so copying it is pointless.

  • 3 examples of unusual loyalty programs for regular customers

Tip #1: Offer something truly useful.

A loyalty program will only work if you offer customers something they actually need. A useless gift will simply be thrown away and your goal of motivating customers will not be achieved.

As an example, let’s take the “Malina” bonus program. Its participants were encouraged to accumulate points by making purchases at various retail outlets. Subsequently, bonuses could be exchanged for some cheap trinket. Of course, this loyalty program could not be called effective, and it was on the verge of extinction. But after some time, the organizing company managed to understand the needs of customers, and customers had the opportunity to exchange accumulated points for useful goods and services.

Tip #2: Subtly remind people about your loyalty program.

To achieve success in achieving your goal, keep your customers informed by informing them about marketing promotions. Today there are many convenient ways to do this - from email to instant messengers such as Telegram, Viber and WhatsApp.

True, marketers disagree on what frequency of sending information messages is considered optimal. Some people think that twice a month is the limit, while others are sure that it is acceptable to send three messages daily.

Following two conditions will help you determine the most acceptable touch frequency:

  1. Subscribers' point of view: how often would they like to receive information?
  2. The frequency with which customers use the product you offer.

If we are talking about beauty salon services or everyday goods, mailings can be quite frequent. When offering non-standard goods or B2B services, you should not be too persistent.

Tip #3: Keep the terms simple and clear.

The key to the success of a loyalty program is its accessibility for all customers to understand. Formulate its terms using no more than 50 words, and ask the driver or security guard working in your company to read them. If he does not understand the essence of the program or interprets it in his own way, your work is no good. This does not mean that complex calculations should not be used in the calculation, but the mechanism of action must be completely transparent and understandable.

Pay close attention to the language you use when describing your loyalty program rules. Some marketers, unwittingly, mislead customers by declaring: “Collect 10 beer caps - get the 11th for free!” A thoughtful consumer will rightly decide that he doesn’t need another cap and will not take part in the loyalty program.

Other attempts to deceive customers, such as using microscopic, unreadable font to indicate important conditions for receiving a prize, will only lead to the fact that you will lose customers forever by pushing them into the arms of competitors. Believe me, the buyer will forever remember how you did not meet his expectations, which means you missed your only chance. To avoid such problems, make sure that the rules of the loyalty program are extremely simple and do not require additional explanation.

Tip #4: Never deceive clients.

Remember that all the promises you make to your consumers must be kept. If you doubt that you can do this, don’t promise. Thus, the air carrier Aeroflot once launched a loyalty program, under which it issued co-branded cards together with many banks. It was very easy for customers to accumulate points; all they had to do was use their cards and buy plane tickets. That is, in order to gain access to premium flights, you did not have to show any special loyalty.

As a result, so many points were distributed to people that entitled them to free flights that the company had to urgently revise the terms of the program, namely, reduce the number of seats for its participants and increase the amount of points. Aeroflot began to suffer losses because it became difficult for new customers to purchase tickets, but sales growth is the main goal of any loyalty program. As a result, those passengers who were entitled to a free flight, but could not take it, felt that they had been deceived, and this negatively affected the company's reputation.

Tip #5. Don't offend regular customers.

A company's attempts to attract new consumers often result in offering them special gifts for participating in the loyalty program. At the same time, those buyers who have long been loyal to the brand find themselves out of work.

Imagine that a company whose services you regularly use announces very attractive conditions for newcomers, without in any way encouraging its loyal customers. It is clear that the company is interested in expanding its customer base, but this is not a reason to offend those who bring it regular profit. A better option is the “Refer a Friend” program, which is successfully used by many sellers. At the same time, the number of customers increases, and a bonus is received by a regular customer who has already proven his loyalty to the brand.

  • The director turned a boring work pass into a loyalty program

6 ways to evaluate the effectiveness of a company's loyalty program

Launch of a pilot program

When starting to implement a loyalty program, no company can be completely confident in its effectiveness. It is quite possible that reality will be very far from plans. A pilot project - testing the system on a small business segment - will help to assess how correctly the main provisions of the program are defined and what its approximate results will be.

This approach is very convenient for retailers with an extensive network located in several regions of the country. A pilot launch of a loyalty program for stores is carried out in a single subject of the Russian Federation; in the process, identified deficiencies are corrected, and only after a successful check the system begins to work throughout the network. Although the fact that different regions may have their own nuances cannot be overlooked.

Analysis of program results before and after launch

To have an accurate idea of ​​how effective a loyalty program is, it is necessary to regularly monitor its key indicators, as well as compare them at the start of the program and at the end of its completion. The most important parameters include the size of the average check, the frequency of purchases and the level of outflow. All of them should be observed in dynamics and in parallel comparison with similar indicators of buyers who do not participate in the program.

Cohort analysis

Cohort analysis is used to measure the impact of a loyalty program on different groups of its participants, taking into account duration over time and a specific stage of the life cycle.

In this case, a cohort means a group of clients who are united by a common characteristic and period of action. The value of the analysis result directly depends on the degree of homogeneity of group members. So, if you include young people from 20 to 30 years old in the cohort, the results of the study will be too general. It is better to unite young people with the same age range, but with higher education and living in Volgograd.

Cohort analysis allows you to track the dynamics of consumption, namely its growth that occurs after customers begin participating in the loyalty program. Ideally, customers' spending should increase every month, but in reality the result may not be so straightforward and stable. This type of analysis is aimed at identifying patterns of consumer behavior depending on the duration of participation in the program. The results of the study allow us to find points that require adjustments and improvements for different types of clients and stages of the life cycle.

Cohort analysis involves programs that have been in effect for more than one year and have not undergone major changes. For companies that have recently launched new loyalty programs, this type of research will be useless.

Look-alike analysis

An equally effective strategy is to compare program participants with non-participants within the same socio-demographic segment. This type of research is called look-alike analysis.

Many marketers believe that those who sign up for a program are already loyal customers and that by joining the program they are not changing their consumption patterns. Look-alike analysis allows you to verify the truth of this statement and quantify the value of the system. Another positive aspect is the ability to attract new customers to participate in the loyalty program, relying on those mechanisms that have already proven their effectiveness.

Control groups

An effective method for measuring the results achieved during the implementation of individual stages of the loyalty program is working with control groups.

The control group refers to a group of clients selected at random who will not be the object of marketing influence. The main requirement for the composition of its members is representativeness. All consumer segments should be represented in the group in the proportion in which they are included in the customer base.

The control group tests individual marketing techniques and loyalty program mechanisms. It is almost impossible for the program as a whole to create such a group: its members should not have access to information about the current program, and this is absolutely impossible, because its promotion is carried out publicly.

NPS – customer loyalty index

The most reliable way to measure customer loyalty is through direct survey. Net Promoter Score (NPS) allows you to estimate with the greatest possible accuracy the likelihood of a given consumer repeating a sale and recommending them to their friends. The NPS method is based on one question, the answer to which can predict the possibility of both a repeat purchase and a recommendation. The question is formulated extremely simply: “On a scale from 0 to 10, what is the likelihood that you would recommend us to a friend or relative?”

Customer responses are classified as follows:

  • 0 - 6 = “Critics.”
  • 7 - 8 = "Neutrals".
  • 9 - 10 = “Promoters”.

The NPS index is calculated by subtracting the percentage of respondents classified as “Critics” from the percentage of respondents classified as “Promoters”: % Promoters - % Critics = NPS.

It makes it possible to evaluate the results of the loyalty program for customers from different angles:

  1. The loyalty of program participants and those who do not participate in it is compared.
  2. The dynamics of changes in the index among program participants over a certain period of time are monitored.
  3. NPS indicators are compared among different segments of loyalty program participants.

The main advantage of the NPS index is its simplicity. However, he is not able to answer the question about the reasons for customer loyalty or lack thereof. A complete picture of the effectiveness of a loyalty program can be obtained if NPS is used in conjunction with other analysis methods.

Surely you know that attracting a new client costs 5-10 times more than retaining an existing one. And that’s not all: the average check for regular customers, according to statistics, is 67% higher than for new ones.

In modern commerce, retention and repeat sales are the main driver of growth. Most companies integrate loyalty programs to achieve these goals, but many of them don't think about what really matters to customers.

According to the Colloquy Customer Loyalty Census study, 13 out of 30 loyalty programs stop working within a year of launch. Companies waste time and money, and customers don't see the value in the "collect points and redeem them for a cap" offer.

To prevent your program from becoming a member of the “Looser-13” list, you should first familiarize yourself with the existing customer retention models on the market

Savings loyalty program

This is the most common model with very simple mechanics - regular customers accumulate points for subsequent exchange for material benefits (discount, free product, special offer, etc.)

Despite the apparent simplicity of this method, many companies manage to complicate the program so much that they themselves begin to get confused in it.

“14 points can be exchanged for 1 dollar, and twenty dollars accumulated is a 50% discount on your next purchase in April” - this is not a loyalty program, but a headache.

When implementing a savings system, remember that it should be simple and understandable. This model can be integrated into almost any B2C business, but it is best used where there is a high frequency of purchases.

Boloco's. Boloco Card loyalty program.

The American restaurant chain Boloco is known not only for its burritos, but also for its effective loyalty program. According to its rules, participants receive 1 free product for every $50 spent. It can be an extra-large burrito or a small smoothie. Boloco speaks to its customers in a language they understand, measuring points in dollars and dollars in products.

Multi-tier loyalty program

Finding a balance between the value of the prize and its achievability is the company’s main task when designing a loyalty program. Achieving this goal can be facilitated by the introduction of a multi-tiered model of customer retention and rewards.

By rewarding small prizes as the customer moves up the loyalty ladder to larger rewards, you keep their attention and interest in participating in the program.

The main advantage of a multi-tier model over a funded model is that the client derives both short-term and long-term benefits from it. The savings system is not so interesting to clients, because... The interval between purchase and goal achievement is usually too long, so often clients simply forget about the program.

This system is widely used in highly committed businesses such as airlines, hospitality and insurance companies.

Virgin Atlantic. Loyalty program "Flying Club".

Virgin Atlantics offers its passengers a tiered loyalty program that is quite common among airlines, which involves accumulating miles. Passengers are segmented by clubs: “Red”, “Silver”, “Golden”. Members of the “Red” club can exchange accumulated miles for car rental, parking and hotel payments. “Silver” members receive 50% more points on flights and have priority access at check-in. Gold members get double miles and access to VIP lounges.

Paid loyalty program

The purpose of a loyalty program is to strengthen the relationship between the business and the customer. Think about whether it would be better for you, instead of offering a small benefit for free, to give your customers more value, but at a certain cost?

Apple. Loyalty program “Not in this life, buddy”

Even the most loyal buyers of Apple products do not receive discounts and prizes. The brand focuses primarily on a product and service that fully meets the requirements of their target audience. Therefore, Apple's loyalty program can be called natural.

Finally

Many companies become hostage to their loyalty programs, even when it stops bringing results - they are afraid to cancel it. Marketers need to look at the intricate rewards and incentive systems to understand what provides real value to customers.

After reviewing these examples, you can begin the process of developing a program that will achieve your business goals and be of interest to your customers.

Loyalty programs are a business driver!

Loyalty programs have taken the world by storm. Companies are launching customer incentive programs en masse. And this makes economic sense. According to Rosetta Consulting research, loyal members make purchases 90% more often and spend 2-3 times more than non-members. There's a reason Amazon invests billions of dollars in loyalty programs. In a world where the customer rules the roost, a high level of customer focus is an essential element of a sales strategy. Regular customers are the main source of income for the company. In the early 2000s, researchers obtained a phenomenal result - an increase in customer loyalty by 5% leads to an increase in company profits by 25-95%!

Launching a loyalty program is an investment in the long-term development of the company. Its impact on brand satisfaction is even greater than price and perceived value. Thanks to recommendations from loyal customers, companies attract new customers and reduce marketing costs for acquisition.

Damn loyalty programs!

A study by Boston Consulting Group notes that loyalty programs often don't pay for themselves. The company calculated that in order to compensate for the costs of incentives and operational management of the program in the amount of 3% of revenues, sales would need to increase by 10%.

All over the world, traditional methods of stimulating customers through discounts and bonuses are becoming less and less effective. There are a number of explanations for this.

The number of loyalty programs is growing exponentially every year. The buyers' wallet no longer holds all the cards; some of them have moved to mobile applications, but this does not change the essence. In the United States, on average, there are 29 loyalty programs per customer, of which he actively uses no more than 12. In Russia, the indicators are not much better. According to RBC Research, 58% of loyalty cards remain virtually unclaimed.

Decreased activity of participants. As a consequence of the increase in the number of programs, the average engagement of participants is constantly falling. Clients are fed up with the same type of classic discount or bonus programs. To attract the attention of buyers, you need to increase the attractiveness of the reward. But this cannot be done without reducing the profitability of the program.

McKinsey conducted a study among 55 of the world's largest retailers on the effectiveness of loyalty programs. The results of the study are sobering - revenue growth in companies that invested in loyalty programs was similar or even slightly worse compared to companies that did not make such investments.

Are loyalty programs an effective investment or a waste of company resources?

Both positions are sides of the same coin. The loyalty program is one of the tools for building relationships with customers. Those companies that use it skillfully achieve impressive results. “On average for a hospital,” loyalty programs do not always live up to expectations. The problems lie not in the tool, but in how it is used. The decline in customer interest is associated not only and not so much with external factors. The main reasons lie in the low quality of implementation and subsequent management.

Key mistakes when implementing a loyalty program

Waste economy

Most of the problems associated with the incentive model arise at the design stage. Sometimes companies think that developing a loyalty program is easy and simple. I added it there and wrote it off there. Business then! The main thing is to buy the right software. Alas, this is far from the case. Behind the apparent simplicity lies a carefully thought-out mechanism. A well-designed program is mathematical models, consumer psychology and trade marketing rolled into one.

Giving out discounts without understanding how a company will recoup such investments is an attraction of generosity that is bad for its financial performance. The launch of the program does not automatically lead to an increase in sales from the first months, but it certainly reduces the profitability of the business in the short term due to the budget for rewards and operation of the program.

The most active participants are loyal customers who already regularly consume the company's products and are unlikely to spend more. Their share of wallet (the share of purchases from the total demand in the category) is close to 100%. Customers who rarely make purchases receive few bonuses, which means that the loyalty program has a rather weak effect on them. What happens? Margins for regular customers increase slightly or even fall due to spending on bonuses, and those customers who could potentially increase consumption do not receive the necessary incentives.

A well-designed program is a combination of mathematical models, consumer psychology and trade marketing.

You can improve the economics of the program and at the same time increase its attractiveness for various categories of consumers using a system of levels and targeted campaigns to “grow” regular customers.

Cut seven times, measured once

The design stage lays the foundation, but the main work begins after the program is launched. Analysis, testing, optimization, evaluation - these are regular tasks that need to be performed day after day. Which customer segments are most sensitive to bonuses, what is the correlation between the size of the reward and the customer’s consumer activity. This information is the basis for optimizing the incentive model.

A team of specialists is needed to manage the program. Many companies cannot afford to have a separate staff for this, or do not see the need for it. This leads to the fact that the results of the program are not measured, and there is no comprehensive approach to assessing indicators. And as the saying goes: “You can’t manage what you can’t measure.” Decisions are made on a whim through trial and error. As a result, the loyalty program, instead of retaining customers, on the contrary, becomes a cause of consumer outflow.

One size fits all

Behind the abstract participants there are people - unique and contradictory. They have different needs, decision-making patterns and consumption habits. The main driving force of the loyalty program is customer centricity, which is formed based on a deep understanding of the behavior of various consumer segments.

Imagine if you offer your clients not bonuses, but shoes as a gift. Moreover, only elegant shoes of size 38 or sports sneakers of size 45 are available. Now estimate what proportion of clients the gift will be in size.

Same with loyalty programs. By offering a single incentive model for participants, the company a priori loses a significant part of the target audience. It is either extremely difficult for clients to accumulate bonuses, or the rewards are not attractive. Capgemini Consulting found that 44% of conversations on social media revolve around irrelevant incentive models and unattractive rewards.

How to Create the Next Generation Loyalty Program

Stop spending, start investing

As mentioned above, a common problem with loyalty programs is the lack of a clear strategy for working with different customer segments. The program becomes profitable when the company understands who, how and for what they receive bonuses. Imagine that for each client a profitability rate is set, on the basis of which an individual package of offers is formed. Segmental goals should be reflected in the program management operating model.

The right customer incentive model begins with assessing the customer's potential for the company.

The right customer incentive model begins with assessing how promising the customer is for the company. CLV is a guiding star that indicates what level of rewards is acceptable for a particular participant. CLV is not just an indicator, but an ideology of working with clients, which is based on a total analysis of all interactions between the consumer and the company. To understand the value of a client, it is not enough to measure financial indicators; consumption patterns, preferences and life interests are important. According to research by Nielsen and McKinsey, the use of a value approach leads to increased consumption among the most profitable and loyal consumers and a reduction in inappropriate spending on stimulating unprofitable and disloyal customers.

Personalize your participation in the program

Geolocation and transactional data, responses to promotions, activity on social networks, analysis of requests to the support service - these are grains of information that together create the digital genome of the buyer. Data is the new fuel for loyalty programs. The current level of technology development makes it possible to implement individual trajectories of client participation in the program based on the analysis of many factors - from purchase history to analytics from CCTV cameras.

Data from various information sources form the digital genome of the consumer.

Bond found that 2/3 of programs do not analyze the relevance of rewards for participants. Nothing kills interest in a program more than uninteresting prizes. Personalization of the reward system influences the activity and satisfaction of participants without increasing the cost of incentives. For example, some customers do not use bonuses, their consumer behavior does not change after joining the program. This may be due to the unattractiveness of the rewards, or the method of motivation does not meet the needs. In this case, other mechanics are tested - special conditions of service or instruments of non-material motivation - participation in a socially significant initiative or charity event.

Combine different types of customer motivation

Unfortunately, the vast majority of loyalty programs affect rational customer loyalty, built only on stimulating purchases and completely ignoring the emotional component. The result is dull and repetitive programs that do not arouse any enthusiasm among consumers. They encourage brand tolerance instead of truly building long-term loyalty. Emotional involvement of participants is not a one-time creative, but a strategy thought out with engineering precision to retain customer attention and stimulate the required consumption model. Gamification, sweepstakes, initiatives not directly related to purchases, educational projects, surprises and instant prizes, competitions, etc. The ingredients are known, all that remains is to cook and serve correctly.

Emotional involvement of participants is not a one-time creative, but a strategy thought out with engineering precision to retain customer attention and stimulate the required consumption model.

The sole purpose of most programs is to stimulate transactions, and other aspects of the consumer's interaction with the company are overlooked. Encouraging any activity around the company, including reviews, participation in promotions, publishing posts, creates an additional emotional connection between the brand and the buyer. It is important to understand that this kind of activity cannot be stimulated by material bonuses; this corrupts customers and attracts prize hunters.

Foster an omnichannel model of interaction with the company

Foster an omnichannel model of interaction with the company Point of sale, website, mobile application, social networks, chatbots - this is not a complete list of ways to communicate with customers. The combination of different interaction channels increases audience reach, since the customer experience is not limited by the buyer’s geographic location or time of day. The omnichannel consumption model is advancing by leaps and bounds around the world following the spread of mobile devices.

A loyalty program is an excellent tool for creating new habits and consumption patterns. Let's give an example. Traditionally, offline retail has one channel of interaction with the buyer - the point of sale. If a person installs an application in which you can create a shopping list in a store, then their customer experience will expand beyond the point of sale. Why not stimulate this consumption model with the help of a loyalty program - make a list, buy, receive increased bonuses.

Obviously, the loyalty program should be available through the channel that is currently available to the client. Some people prefer a nice card in their wallet, while others find it more convenient to use a mobile app or just give their phone number. Having a presence across multiple channels allows you to collect customer information and use it to optimize future interaction scenarios.

Actively manage your customer experience

Surprisingly, but true - traditional loyalty programs do not work with customer complaints and problems. Moreover, loyalty programs are on the balance sheet of marketers, and complaints and suggestions are received by the service and/or sales departments. According to statistics, 71% of clients part with a company due to poor service. The question is, why does a client need bonuses if the level of service is categorically not satisfactory? Every company has problems. But leaders know how to accept requests from clients in a timely manner and smooth out complaints. A description of approaches to dealing with negative customer experiences can be found in.

The new generation loyalty program is aimed at creating a positive customer experience and smoothing out difficult situations (complaints, operational failures, bad customer mood). Another direction in the evolution of loyalty programs is increasing the value of a product or service. The program should create tangible benefits and solve the buyer's problem. A great example is Amazon's program. Program members do not pay for delivery each time they place an order.

Conclusion

The loyalty program is a company asset and an additional competitive advantage. At the same time, it is no longer enough to distribute bonuses to clients. Classic discount and bonus mechanics are being replaced by complex new generation programs that solve a wider range of problems than just incentives for repeat purchases.

Managing Director NGM Mikhail Fokin