THE BEAUTY OF LOYALTY PROGRAMS

If you were to take a guess, how many loyalty programs do you think you’re currently signed up to? On average, Australian shoppers are signed up to at least 4 proving that they are in fact pretty popular. So much so that when asked what experiences would make them feel more loyal to a brand, over 70% of customers say “a loyalty program”.

Given these stats, it makes sense for brands to invest in developing and introducing loyalty programs but the determining factor in how successful these programs are comes down to what’s in it for the customer? We all know what’s in it for the brand – loyalty as well as the ability to collect invaluable data on customers’ personal details and shopping behaviours. But is it a fair-exchange?

Out of the average 4 programs that customers are signed up to, probably only 1 or 2 are perceived to be worthwhile to the customer. This is an important consideration to factor in because loyalty = trust and if customers don’t feel like they don’t get much in return for their “loyalty”, then they can just as easily disengage with a brand and look elsewhere for their shopping needs.

So what do customers want from loyalty programs? Other than discounts, Australian shoppers want early access to sales and new products as well as gifts and swag. Mecca’s Beauty Loop is a loyalty program that we’re huge fans of here at School of Retail – it epitomises what loyalty programs should be – its meaningful, truly rewarding and makes you feel genuinely valued for your loyalty as a customer, making you not want to shop anywhere else. As soon as that “Your Beauty Loop Box is here” email hits our inbox, we add heading in-store to pick it up (and inevitably purchase a bunch of other products) to our list of things to do that week!

The beauty of Mecca’s Beauty Loop program is that it’s very obvious that the focus is on creating a great experience for their customers and not just about collecting data and promoting sales. An approach that we think is a very clever one and like most of the best relationships in life – a win-win for everyone.