Under the effect of tensions on purchasing power, loyalty is no longer just about rewarding : it is integrated into the heart of consumer decisions and acts on purchasing behavior. To offer the right offers at the right time and simplify customers’ lives, retail is shifting towards logic on an individual scale. Three international brands supported by loyalty solutions specialist Eagle Eye show this transformation.
Too often, purchasing power is confined to a level of income. This is a mistake : it is now above all a permanent arbitrage of expenses. Consumers compare, adjust, renounce, substitute – to absorb incompressible loads as a priority, where their room for maneuver is narrowest. They are not only looking for the cheapest but also the fair price, the right decision at the moment. The same customer can thus change brands, brand and basket composition from one week to the next. Retail players can no longer rely on traditional points accumulation mechanisms, reductions or benefits convertible later. They must offer each customer tailored offers, at the right time. Loyalty changes in nature : it is more personalized, because adjusted to each profile ; it is more immediate, with visible benefits from the moment of purchase ; she is more useful, by concretely helping consumers optimize their budget. Internationally, several brands have already undertaken this transformation.
Tesco gives new meaning to loyalty
Even the most iconic models have to reinvent themselves to stay relevant. Leader in mass distribution in the United Kingdom, Tesco has noticed a slowdown in its loyalty program : a points-based operation that has become routine and based on deferred gratification, today less in line with customer expectations. For the brand, the stakes were high. Clubcard has millions of members and has been a central pillar of its customer relations for years. The distributor has chosen to enrich its program by introducing “Clubcard Challenges”, personalized challenges aligned with purchasing habits, with immediate rewards. Launched on a large scale, the system has already reached nearly 10 million customers. 76% engaged in the challenges, and 62% achieved at least one reward. Individualization gives new meaning to loyalty, transforming a passive approach into an active experience, therefore more engaging.
Giant Eagle : the right time
Personalization is not enough : you still need to activate it at the right time. American supermarket chain with more than 200 stores and multi-billion dollar sales, Giant Eagle had an admittedly successful loyalty program, but limited in its flexibility and its potential for evolution. The brand has redesigned its system to make it more flexible and more scalable, by relying on a platform capable of activating “tailor-made” proposals in real time. This shift resulted in the deployment of 25 million individualized offers, testing 23 types of campaigns, and finally the acquisition of 53,000 homes.
Z Energy : a utility engine
Loyalty only creates value if it is integrated into everyday uses. New Zealand transport energy market leader, Z Energy depended on a third-party loyalty program restricting its ability to access customer data, to pilot the experience, and to promote its activities beyond fuel. The brand has chosen to regain control of its loyalty by launching “Z Rewards”, a proprietary system accessible via a single application allowing all purchases to be rewarded and the customer journey to be centralized. In a few months, the solution increased the utilization rate of the cash register program to 26% (against 12,5% previously) and gathered more than 360,000 members on the application, including 31% new users.
Loyalty on an individual level
Loyalty is therefore no longer just a reward program or a promotional lever : it becomes a system of interaction and engagement, which guides purchasing behavior over time – frequency, basket, level of involvement. In other words, a global strategy for getting the customer moving. “We are witnessing the end of uniform mechanics. The same offers for everyone give way to differentiated approaches, on an individual level. Loyalty becomes a dynamic system, which allows you to organize, to maintain and guide an ongoing relationship with each client”, summarizes Damien Authier, Country Manager France d’Eagle Eye.
