Can personalisation help improve brand loyalty?


Can personalisation increase customer loyalty - web

In my purse, I currently have loyalty cards for about 4-5 different stores or restaurants.  Loyalty programmes for big name brands such as Nandos to smaller, local businesses such as the beautician who rewards regular visits with a free treatment.

Now, these loyalty cards take up special real-estate in consumers’ pockets, purses and wallets and it is important that brands remember that they are fighting for this precious space.  Personally, I do not want to keep 10’s of cards with me always, so I only select the ones that offer the most value.  Those are the cards which win those special spaces in my purse.

But it is not always that easy to decide which cards stay and which ones go, so how do brands ensure that their loyalty programmes are one of the ones that consumers want to keep.

With over 49 retail groups in the UK offering some form of loyalty programme, it is no wonder that consumers still find it difficult to know who to be loyal too!

How can brands make their loyalty programmes stand out?

A recent article from Marketing Week looked at how Tesco’s have scrapped the big digital overhaul they were going to give their clubcard (as outlined in plans shared 3 years ago) and instead opted to make a switch to a contactless card.  But the question is, does this really offer consumers more value?

Brands can stand to collect a lot of data about their customers through their loyalty programmes, but the key to making these schemes work is to look at it from the consumers perspective and not from what you will get from them, and ultimately you need to be offering them more than what they can get from a standard in-store promotion.  What good is a loyalty scheme if every passing consumer can get the same deal.

Give consumers a personalised experience

A good loyalty scheme is an ideal opportunity to provide consumers with a completely unique experience, brands need to get past the traditional ‘stamp card’ and instead offer something exciting, new and personal.

Boots is a fitting example of a loyalty programme that does this well, with tailored offers on products that they know consumers are likely to purchase such as new parents being given discount offers on nappies and baby wipes, and points for every purchase made.  I recently purchased a new Fitbit and I made this purchase through Boots because the additional points I received made this a great offer.

But with modern technology, personalisation can now go one step further.  GAME Digital Plc has done exactly that with their Scan IT! App.  With the help of augmented reality visitors to the GAME stores can scan over 2,000 products with their mobile phone and in addition to viewing product trailers that appear virtually on top of the packaging, those scanning whilst logged into the GAME Reward Scheme will also see their points balance, which they can apply to the cost of the product they are viewing and see their personalised price based on the points they have previously accumulated.  They can then proceed by placing the order directly from the App, or make the purchase in store.

ScanIT - Personalised loyalty programme

Why have a loyalty scheme?

There are many reasons why brands should have a loyalty scheme in place, the first is obvious and is in the name.  You reward consumers who spend with you and they will give you their loyalty and will come back time and time again. But here are a couple more you may not have considered:

  • Consumers spend is 46% higher with those who offer a loyalty scheme
  • 60% of US households will make a purchasing decision based on a brand/retailer offering a loyalty scheme
  • It costs 5-25 more to acquire new customers than it does to retain existing customers
  • Members of loyalty programmes are more likely to spread good word of mouth

A good loyalty scheme has the potential to deliver amazing results for brands and retailers wanting to connect with their customers, but if you really want to win that purse real-estate you have to go above and beyond the stamp-card approach.

Want to learn more about how GAME used augmented reality to enhance their loyalty programme, watch the GAME case study.

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