In a recent blog post, omNovos takes a new and innovative data-driven approach to defining supermarket “loyalty program,” which, they say, might make it better for all parties and stakeholders.
Based on the premise that the emerging digital aspects of customer engagement have had an impact on what the term “loyalty program” actually means, omNovos suggests it’s time to reconsider the concept of rewarding people for repeatedly purchasing goods, despite the fact that this approach has generally worked well for many years.
Their position is that traditional points-per-spend programs have become less valued and looked upon more as coming from a “what have you done for me lately” perspective.
So, what’s a better approach you might be wondering…
Well, the article addresses the question, “Do my customers want a great loyalty program?” with the answer, “No!”
Instead, the article suggests, “they yearn to be recognized as individuals—and a part of a mutual, long-lasting, meaningful and highly personalized relationship. This is loyalty at its core, far removed from a program.”
So how does this new definition of loyalty work?
OmNovos says supermarkets must do away with the concept of dollars and points, and replace it with strategic “actions” based on customer data knowledge.
“This is where relationships begin,” the article said. “Where brand begins to emerge, and so-called rewards are highly personalized… this is a prime environment to convince customers that they are wanted, appreciated, and loved.”
An example given assumes customers can be encouraged through advertising channels to download the store’s mobile app.
Once they have done so, the engagement process begins, omNovos suggests.
“On day one, they [customers] are prompted to list likes, dislikes and dietary restrictions—all while a grocery list builder prompts them to divulge what they typically shop for… then they are immediately offered specials just for them. It could be a discount. Better yet, it could be a fantastic recipe for them to try based on their data inputs. Going forward, they receive personalized weekly check-ins letting them know about sales on the things they like, plus additional food recommendations—again, I dare say the possibilities for personalized content are endless.”
The article also points out that at no time are points-per-spend mentioned to the customer. Yet the customer was made to feel special and prompted to buy more all because they felt like they were personally appreciated.
Sounds a lot like the primary point of this blog!