In 2017, younger shoppers are gaining greater share of wallet and looking to word-of-mouth (WOM) marketing. Consulting firm LoyaltyOne found those aged 18–24 want “authentic” information sharing, relying more on alternative, third party “un-biased sources” such as social media, bloggers, friends or family.
“Superficial promises will be identified and cast aside,” said Melissa Fruend, partner, LoyaltyOne Consulting. “Speak with them via email, social, text, one-on-one and learn from their point of view how you can improve their lives/experience.”
Social media is crucial for data collection, behavior mapping and measurement indicators.
“Loyalty is a two way street and customers can tell when it is being done ‘to’ them rather than ‘with’ them,” Fruend said.
Knowing the difference is important.
Customers are quick to delete mobile apps. Retailers should be confident in their customer strategy and grow the app from data and insights to avoid deletion.
It’s also wise to develop CRM communication plans to incorporate customers’ preferences within loyalty. “It’s surprising how many brands often look for the elusive ‘magic bullet’ to loyalty when they aren’t executing the basics correctly,” said Fruend.
EVOLVING PROGRAMS
Forward Corp. and Chevron are two chains that have considered consumer demand for more choices when recently rolling out loyalty programs.
Forward Corp., which operates 30 stores in Michigan, switched its loyalty program to the Paytronix platform in November 2016. The company replaced a 10-year old program that relied on RFID tags, a detached printer at the point-of-sale (POS), and couldn’t roll-back prices at the pump. Paytronix API now integrates with Forwards’ VeriFone POS.
The updated Forward Rewards allows members to earn 10 points for every gallon of gas and 20 points for every dollar spent in store, plus a sign-up bonus discount of five-cents per gallon every time they purchase gas for 30 days. The program integrates with Forward’s four sweepstakes per month.
Forward now has more ways to “slice and dice data,” in order to better target specific customers, and allows customers more choices for rewards.
“One of the first qualifications was that it integrated seamlessly with our pumps. Our wish list included greater communication through an email program,” noted Emily Mallory, chief marketing officer and fifth-generation owner.
A bonus point function lets it highlight a product and offer 200 extra points when customers buy it. “I do a lot of different promotions, so we need the flexibility to change rapidly and Paytronix fulfills that need,” Mallory said.
Customers can sign up via in-store kiosk, web or mobile app, and use a card or phone number at checkout.
In January, Chevron launched ExtraMile Extras Rewards to more than 700 ExtraMile locations in California, Oregon and Washington. Customers enroll by entering a phone number at checkout and making a qualifying purchase. Qualifying purchases earn one Shield. Five Shields earns a free ‘Extra,’ like a coffee or snack.
Some stores previously offered coffee frequent buyer cards, but “our research indicated customers want choice,” said Doris Lee, head of loyalty for Chevron— choice in how to earn, redeem and access (mobile app and web, versus paper card). Now members can choose from a catalogue of six items.
“We will be monitoring feedback and refreshing the catalogue as necessary,” she added.