The CEO of LoyaltyOne has spent the last 25 years in the industry, and never shys away from the next loyalty challenge. During his time as CEO of BrandLoyalty Hearts & Wallets caught up with him to find out more about the man behind loyalty.
Shoppers miss over 95% of POS items in-store. Therefore, to get a noticeable impact we must ‘punch them in the face’. We explore programme activation and how to design the best activation strategy for a loyalty programme.
The right activation drives participation
We are living in an age where power is in the hands of shoppers. They have more choice and more opportunities to voice their opinion. To connect a loyalty programme to shoppers, it is important to put the shopper central in the design of an activation strategy. Programme activation is rapidly becoming one of the most important factors to drive participation in loyalty programmes and thereby steer turnover growth. It should, therefore, be at the top of retailers’ agendas when planning their next loyalty programme.
Timing is everything
Just like a good punchline, timing is everything when it comes to reaching your shoppers and activating them to take part in a loyalty programme. There are five phases of the programme journey which should be considered: before the programme (grab their attention), at the start (drive shopper awareness), in the middle (remind your shoppers to keep them engaged), towards the end (countdown to trigger activity) and after (show appreciation).
By successfully activating the shopper at these key phases, the programme can increase the number of shoppers entering the store, increasing engagement and ultimately participation.
Location, location, location
In addition to the five phases, there are also four locations for retailers to connect with their shoppers; pre-store, to-store, in-store, and post-store (shopper journey). Combining the knowledge of the timings with the locations helps you understand which - and how - shoppers need to be successfully activated to take part in your loyalty programme
The big 5: define your impact
Programme activation activity should take place during the early planning stages. By taking into account key themes, employing the locations and phases shown here, and utilising visual brainstorming methods, you will help yourself ensure that nothing is left unplanned. At BrandLoyalty we use strong metaphors of the Big 5 animals to help shape the programme.
Let them roar
Motivate, inform and stimulate the store staff to get the most out of your loyalty programmes as they are your number one ambassadors and your greatest connection to your shoppers.
In action: REWE Germany – Creating Store Staff Ambassadors with Mission Loyalty
Finding a new way to engage with its staff, REWE in Germany has implemented a web-based environment – Mission Loyalty – to educate its employees on the latest loyalty programme running in 489 of its stores. Staff become secret loyalty agents and must learn about the upcoming loyalty programme by completing ‘missions’ and answering questions. By doing so, they have the chance to win a great prize. A fun way to get a retailer’s number one ambassadors onside.
Create stopping power
Make sure you also ‘punch your shoppers in the face’ to get noticed by using disruptive and repetitive POS materials & displays.
In action: Konzum, Croatia – Making the Glass Shine In-Store
Utilising every inch of space was key when promoting the Vivo | Villeroy & Boch Group glasses campaign in Konzum, Croatia. To make sure their message wasn’t part of the 95% of POS material not seen in-store, the retailer made use of key stopping areas. This included the checkout belt, end-of aisle displays, shelf wobblers and window displays.
Add some strength
During the programme journey there is a great opportunity to create further awareness with mass communication tools such as TV commercials, posters, YouTube videos and leaflets.
In action: Pick n Pay, South Africa – Stikeez Say Thank You!
Following the success of its first instant loyalty promotion in 2015, Pick n Pay in South Africa wanted to send a big ‘thank you’ to its shoppers for taking part. A farewell TV campaign not only was a great way to finish the programme, but also created more ambassadors for the retailer.
Break up the herd
Not all shoppers are the same. Effective targeted communication makes you connect to more shoppers on a personal level, e.g. by using vloggers and hashtags, increasing the awareness and success of the loyalty programme.
In action: Jiajaiyue, China – 1-to-1 Communications to Millions
Digital collecting revolutionised shopper communications at Jiajaiyue Supermarkets in China recently. By utilising Bright Stamps, the programme operator got instant data feedback that was used to improve the shopper’s experience. Meaningful insights were created, allowing the retailer to generate 1-to-1 contact moments tailored to each individual customer. Shoppers received weekly personalised push-messages, with information about their progress on the programme triggering more store visits and increased basket spend.
Be smart
It is very attractive to create relevant win-win situations for all involved, thereby improving your connection with your shoppers and making the rewards more achievable with bank and supplier partnerships.
In action: SPAR, Hungary – Partnering up to Create Power
In order to create a buzz around its collaboration with suppliers, SPAR in Hungary held a strategic partner day to talk about opportunities for suppliers during the loyalty programme. FMCG companies were invited to bid in a 30-minute live auction for numerous investment packages. 97 contracts were signed for collaborative activities such as weekly flyer appearances, POS support, bonus stamps, TV tag-on opportunities and nationwide billboard campaigns.
Read more articles from Hearts & Wallets
Read more in depth articles about the food and loyalty industries from previous editions of Hearts & Wallets magazine.
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