Next Wednesday, Carrefour will officially present its new loyalty program called “Le Club” ! The opportunity for me to share some beliefs on the subject. Convictions that I have been developing for around ten years via the FIDÉLOSCOPE study (the new edition of which will be presented with Comarch on January 24). To date, there are in reality very few “real” loyalty programs in commerce and, in any case, none or almost none in food retail.
Why am I so assertive? Because the customer's reward is not awarded based on their level of spending/engagement with the brand but on their choice of the “right” items. Those that trigger a reward, generally cash-back on the customer account. This is in no way a loyalty program (I can spend a lot in a store without being rewarded if I don't choose the “right” products).
A real loyalty program is based on the balance between three levers that I liken to a triangle. Two are in one transactional register (purchase accumulation and reserved promotions), one in one relational register (services / belonging to a community). It is in the balance between these three levers that a real loyalty strategy is created.
• The cumulative purchase rewards the customer in proportion to their commitment to the brand;
• Reserved promotions are the mark of special consideration;
• specific services are the mark of extraordinary consideration, proof of the brand's recognition of its customer, who is part of a community.
In the majority of cases, the programs are not balanced between these 3 levers. Often only in the register of promotion for food brands, in the cumulative purchase for textile brands for example and in all cases too rarely provided on the relational axis.
And to be even more explicit (if it can provide food for thought), here is a more detailed description of the 3 levers:
1/ Accumulated purchase
The cumulative purchase function of a loyalty program means that all purchases are counted to then give rise to a reward. Clearly, a partial prize pool (on certain items) does not constitute a cumulative purchase, but a promotional incentive.
2/ Promotion
Promotional incentives are considered to be those which aim to direct customer-carrier purchases towards a specific category or product, or which only offer an advantage over a short period of time. In our eyes, this is in fact a logic that favors opportunism more than loyalty. In this context, a less loyal customer can still optimize the reward level. So if this lever is useful, it cannot be enough to constitute a loyalty program.
3/ Recognition / Community
These are free benefits (not conditional on an additional purchase in the brand) which are granted to customers who are members of the loyalty program. And which therefore gives the wearer the feeling of belonging to a community of privileged customers.
And to be notified of the release of the FIDÉLOSCOPE 2025 study, a quick word here >>
