Sunday, October 25, 2009

Dannon Launches Dannonomics

I have been working with a friend of mine on a CRM project including a loyalty reward program for a cosmetic brand. The main focus is that the company doesn't own its distribution channels, and hence, it is quite difficult to set up a reward program. How do you keep a track of your customers' purchases?

Indeed, I don't know many brands that set up a loyalty reward program without owning their own channel. Meanwhile I have found out that Dannon has launched for its 90th anniversary a loyalty reward program called Dannonomics. Hence I have decided to pay a close look at it, to see how they have succeeded in knowing their customers' consumption.

The trick might seem simple, in terms of company's process, but a little bit acward on the customer point of view: The customer cuts the barcodes of its products and then send it by mail, in order to receive their coupons.

It might work for a food company like Dannon, which is already used to generate contests with this process, but for other companies out of the grocery shopping industry, I don't see this choice that obvious.

Dannonomics actually is not what we can call a "customer relationship management" program, because it is a one shot strategy, and doesn't consider the relationship on a long term. Though it will provide pretty good data about the success of the campaign.
I have had the chance to speak with the French CRM director of Danone to talk about their customer relationship management strategy, and did not seem that obvious they were very active on the topic, and creative. It was simply based on sending newsletters and magazines to people that registered online.

Now, I'd like to know if some of you knows about some brands that don't own their retail channels that have set up powerful loyalty reward programs. I'd like to share with you examples.