Supercharged Loyalty Schemes
Brands and retailers, ranging from America’s Nike to China’s Tmall shopping platform, are supercharging their loyalty schemes to build stronger consumer connections.
With so many shopping options, it’s a challenge to encourage emotional loyalty. Brand loyalists who make repeat purchases, do not switch given an opportunity, like cheaper prices or more convenient access, only make up 37% of the population (Facebook 2017).
- NikePlus Unlocks: In February 2018, Nike introduced NikePlus Unlocks to its members’ club fitness app NikePlus. Besides product recommendations based on workouts, consumers can unlock exclusive discounts and content by being active. Rewards range from Apple Music playlists and discount coupons to meditation exercises. See Retail’s Spirit of Adventure.
- Sainsbury’s Nectar Card: British supermarket chain Sainsbury’s updated its loyalty scheme in April 2018. Trialling in the Isle of Wight, southern England, the app-based scheme rewards consumers for the frequency of their shopping trips as well as the length of time they have been customers. This runs counter to the industry’s typical focus on customer acquisition. Discounts are based on frequent purchases and become more generous the more customers shop with Sainsbury’s, incentivising repeat purchases.
- Tmall: Alibaba-owned Chinese shopping platform Tmall’s cross-platform loyalty system encourages brands seeking to consolidate their individual rewards programmes into one easy-accessible touchpoint. In 2018, Japanese skincare brand SK-II and Chinese grocer 7Fresh signed up to allow consumers to earn and redeem points via multiple locations. They include Tmall and WeChat as well as the brands’ own stores and e-commerce sites.
See also Rebooting Loyalty Programmes.