Reduction, free delivery, or even private sale: the advantages of a loyalty program are numerous. Almost all department stores have them today. But who do they really benefit?
In his wallet are at least 17 loyalty cards. Roseline collects them. Clothing, beauty products or food; physical cards or digital cards, discounts or vouchers… The offers are numerous. But what is the benefit for brands?
A major sports retailer claims three million subscribers. For fourteen years, it has offered a loyalty program which it has just renewed. “We have increased the number of points offered tenfold. What’s behind it too is the possibility of transforming these points into different rewards“, explains Olivier Flament, head of “customer relations management” at Decathlon.
It gives advantages, it makes you want to buy even more
But the experience does not stop there, the company is increasingly personalizing its offer: “The idea is to offer an experience to customers and to have the possibility, based on their latest purchases, to suggest sports sessions that they can do with a product.“.
Faced with these incessant demands for loyalty, what do consumers think? “It gives advantages, it makes you want to buy even more”testifies a customer. And that’s the whole point of loyalty: making you spend more and more, but always to the company’s advantage.
“Acquiring new consumers requires advertising and promotion. You have to convince the consumer to change brands, which is not necessarily easy. Whereas when you have a consumer who is relatively happy with your store, you will try to get them to buy more products from you“, says Isabelle Schulling, professor of marketing at UCLouvain.
The idea is to offer an experience to customers
If for some, the proliferation of loyalty cards is a real ordeal, Freedelity understands this well. This company helps merchants better target their customers… Thanks to their identity cards.
“Once the consumer has put their identity card in the reader, they will be asked two or three questions for the first registration. Then, I am identified at the checkout level, my purchase can be made and I will receive all my rewards“, indicates Sébastien Buysse, director of the Freedelity platform.
Result: no more need for a loyalty card for each store. The client can easily encode and the data is shared.
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