Sunday, December 27, 2009

Loyalty Reward Program Case Studies: Shopping For Clothing

This week end I went shopping to the mall, in different clothing retails. As I was visiting those different stores, I couldn't help noticing that nearly all of them delivered a loyalty reward program. This might be because I am naturally attracted by the topic, and has an expertise in this area.

What is also very interesting to notice is that they are all pretty different from each other. Therefore, I wanted to give you a little review of what I have noticed, and what I think about them.

Etam owns a program, but in order to join it, you must have purchased at least 60€ in the store. This is very interesting as a loyalty reward program, and more generally customer relationship management strategies, are based on rewarding the best customers. Hence, by proposing the card to actual good customers, this loyalty reward program actually shows exclusivity. Now the bad point is that there is no way you can think about this loyalty program as a customer. Nothing displays the program, and I had to ask the lady to get information.

Devred: One of my favorite one. Probably because I worked for the company not so long ago. I believe it was one of the first company to propose one. I like the way they send me promotions via emails. I believe they are not intrusive, since I don't receive a lot of emails. Also, their promotions are most of the time very interesting (-40% for example on the whole store). I also like the way their evidences: they show out the advantages clearly. Devred proposes a nice card, which is also an interesting choice. The card hence affirms the ownership to a club, and sends the card holder apart.

Sinequanone: What is interesting is that for this one you don't need a card. You register online, and they find you thanks to your name in store. This is cool because it cuts most of the costs related to loyalty reward program: Getting the data into the system. Also, creating cards is very costly, and not necessarily required. Indeed; studies have shown 6 years ago that customers where carrying a maximum of 5 loyalty cards in their wallet. By not getting a loyalty reward card, you hence don't force your customer to get it on him, and then, it is easier for him.

Go Sport: Now it is also interesting because it is the only card that you need to pay. It reinforces the entry into a relationship. The customer needs to make a step toward the company to establish the relationship. This fee is reimbursed fast, as they propose you a flyer with coupons that provides you more money than they 8€ you pay to get in. Still, this is interesting. Something else that is interesting, on a long term relationship point of view, is that they propose an insurance on clothing, which means that you secure the integrity of the clothes you buy, at least for a whole year.

I think this has been very interesting, because in this industry, you can see that loyalty programs can be very different.