An opportunity for exploration
Membership-based loyalty programmes (LPs) or card-based programmes are everywhere in the world of grocery retail, and they exist under many names. Bonus card, Clubcard, Extra, Nectar and AirMiles are just a few of these. According to a 2017 survey from Colloquy, there are over 3.8 billion LP memberships in the US alone, an increase of 46% from 2012. However, the costs of implementing and maintaining a membership-based loyalty programme are high.
ln addition, there are also many different schemes which all have different mechanics. Some of these reward you at the checkout immediately, whereas others offer a points-based collecting system. So, l wanted to find out if there was a certain mechanic that was best, or whether there were more factors at play as to what creates a successful LP.
I wanted to widen the scope of my research, so l collected data from more than 50 European retail banners across 27 different countries. The aim was not just to find out the effectiveness of members vs. non-members in any given programme, but to compare like-for-like across all of these 50 retailers.